0001193125-13-156918.txt : 20130416 0001193125-13-156918.hdr.sgml : 20130416 20130416164032 ACCESSION NUMBER: 0001193125-13-156918 CONFORMED SUBMISSION TYPE: 485BPOS PUBLIC DOCUMENT COUNT: 3 FILED AS OF DATE: 20130416 DATE AS OF CHANGE: 20130416 EFFECTIVENESS DATE: 20130429 FILER: COMPANY DATA: COMPANY CONFORMED NAME: METROPOLITAN LIFE SEPARATE ACCOUNT E CENTRAL INDEX KEY: 0000744043 IRS NUMBER: 135581829 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 485BPOS SEC ACT: 1933 Act SEC FILE NUMBER: 333-52366 FILM NUMBER: 13764380 BUSINESS ADDRESS: STREET 1: 200 PARK AVENUE STREET 2: C/O METROPOLITAN LIFE INSURANCE CO CITY: NEW YORK STATE: NY ZIP: 10166 BUSINESS PHONE: 2125785364 MAIL ADDRESS: STREET 1: 200 PARK AVENUE STREET 2: C/O METROPOLITAN LIFE INSURANCE CO CITY: NEW YORK STATE: NY ZIP: 10166 FILER: COMPANY DATA: COMPANY CONFORMED NAME: METROPOLITAN LIFE SEPARATE ACCOUNT E CENTRAL INDEX KEY: 0000744043 IRS NUMBER: 135581829 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 485BPOS SEC ACT: 1940 Act SEC FILE NUMBER: 811-04001 FILM NUMBER: 13764381 BUSINESS ADDRESS: STREET 1: 200 PARK AVENUE STREET 2: C/O METROPOLITAN LIFE INSURANCE CO CITY: NEW YORK STATE: NY ZIP: 10166 BUSINESS PHONE: 2125785364 MAIL ADDRESS: STREET 1: 200 PARK AVENUE STREET 2: C/O METROPOLITAN LIFE INSURANCE CO CITY: NEW YORK STATE: NY ZIP: 10166 0000744043 S000001300 METROPOLITAN LIFE SEPARATE ACCOUNT E C000003506 Preference Plus Select 485BPOS 1 d442753d485bpos.txt METROPOLITAN LIFE SEPARATE ACCOUNT E - PREFERENCE PLUS SELECT REGISTRATION NOS. 333-52366/811-04001 ================================================================================ SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ----------------- FORM N-4 REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 [X] PRE-EFFECTIVE AMENDMENT POST-EFFECTIVE AMENDMENT NO. 25 [X] AND/OR REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940 AMENDMENT NO. 194 [X] ----------------- METROPOLITAN LIFE SEPARATE ACCOUNT E (EXACT NAME OF REGISTRANT) METROPOLITAN LIFE INSURANCE COMPANY (EXACT NAME OF DEPOSITOR) 200 PARK AVENUE, NEW YORK, NEW YORK 10166 (ADDRESS OF DEPOSITOR'S PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE) (212) 578-3067 (DEPOSITOR'S TELEPHONE NUMBER, INCLUDING AREA CODE) ----------------- RICARDO A. ANZALDUA EXECUTIVE VICE-PRESIDENT AND GENERAL COUNSEL METROPOLITAN LIFE INSURANCE COMPANY 200 PARK AVENUE NEW YORK, NEW YORK 10166 (NAME AND ADDRESS OF AGENT FOR SERVICE) ----------------- IT IS PROPOSED THAT THE FILING WILL BECOME EFFECTIVE (CHECK APPROPRIATE BOX) [_] immediately upon filing pursuant to paragraph (b) of Rule 485 [X] on April 29, 2013 pursuant to paragraph (b) of Rule 485 [_] 60 days after filing pursuant to paragraph (a)(1) of Rule 485 [_] on [date] pursuant to paragraph (a)(1) of Rule 485 ================================================================================ APRIL 29, 2013 PREFERENCE PLUS SELECT(R) VARIABLE ANNUITY CONTRACTS ISSUED BY METROPOLITAN LIFE INSURANCE COMPANY This Prospectus describes individual Preference Plus Select Contracts for deferred variable annuities ("Deferred Annuities"). -------------------------------------------------------------------------------- You decide how to allocate your money among the various available investment choices. The investment choices available to You are listed in the Contract for your Deferred Annuity. Your choices may include the Fixed Account (not offered or described in this Prospectus) and Investment Divisions available through Metropolitan Life Separate Account E which, in turn, invest in the following corresponding portfolios of the Metropolitan Series Fund ("Metropolitan Fund"), portfolios of the Met Investors Series Trust ("Met Investors Fund") and funds of the American Funds Insurance Series(R) ("American Funds(R)"). For convenience, the portfolios and the funds are referred to as "Portfolios" in this Prospectus. AMERICAN FUNDS(R) ----------------- AMERICAN FUNDS BOND FUND AMERICAN FUNDS GROWTH FUND AMERICAN FUNDS GLOBAL SMALL CAPITALIZATION AMERICAN FUNDS GROWTH-INCOME FUND FUND MET INVESTORS FUND ------------------ ALLIANCEBERNSTEIN GLOBAL DYNAMIC ALLOCATION LORD ABBETT MID CAP VALUE AMERICAN FUNDS(R) BALANCED ALLOCATION MET/FRANKLIN LOW DURATION TOTAL RETURN AMERICAN FUNDS(R) GROWTH ALLOCATION METLIFE AGGRESSIVE STRATEGY AMERICAN FUNDS(R) MODERATE ALLOCATION METLIFE BALANCED PLUS AQR GLOBAL RISK BALANCED METLIFE GROWTH STRATEGY BLACKROCK GLOBAL TACTICAL STRATEGIES METLIFE MULTI-INDEX TARGETED RISK BLACKROCK LARGE CAP CORE MFS(R) RESEARCH INTERNATIONAL CLARION GLOBAL REAL ESTATE MORGAN STANLEY MID CAP GROWTH CLEARBRIDGE AGGRESSIVE GROWTH OPPENHEIMER GLOBAL EQUITY PORTFOLIO -- CLASS B HARRIS OAKMARK INTERNATIONAL PIMCO INFLATION PROTECTED BOND INVESCO BALANCED-RISK ALLOCATION PIMCO TOTAL RETURN INVESCO SMALL CAP GROWTH PYRAMIS(R) GOVERNMENT INCOME JANUS FORTY PYRAMIS(R) MANAGED RISK JPMORGAN GLOBAL ACTIVE ALLOCATION SCHRODERS GLOBAL MULTI-ASSET LOOMIS SAYLES GLOBAL MARKETS SSGA GROWTH AND INCOME ETF LORD ABBETT BOND DEBENTURE SSGA GROWTH ETF T. ROWE PRICE MID CAP GROWTH METROPOLITAN FUND ----------------- BAILLIE GIFFORD INTERNATIONAL STOCK METLIFE CONSERVATIVE TO MODERATE ALLOCATION BARCLAYS AGGREGATE BOND INDEX METLIFE MID CAP STOCK INDEX BLACKROCK BOND INCOME METLIFE MODERATE ALLOCATION BLACKROCK CAPITAL APPRECIATION METLIFE MODERATE TO AGGRESSIVE ALLOCATION BLACKROCK DIVERSIFIED METLIFE STOCK INDEX BLACKROCK LARGE CAP VALUE MFS(R) TOTAL RETURN BLACKROCK MONEY MARKET MFS(R) VALUE DAVIS VENTURE VALUE MSCI EAFE(R) INDEX FRONTIER MID CAP GROWTH NEUBERGER BERMAN GENESIS JENNISON GROWTH RUSSELL 2000(R) INDEX LOOMIS SAYLES SMALL CAP CORE T. ROWE PRICE LARGE CAP GROWTH LOOMIS SAYLES SMALL CAP GROWTH T. ROWE PRICE SMALL CAP GROWTH MET/ARTISAN MID CAP VALUE WESTERN ASSET MANAGEMENT STRATEGIC BOND OPPORTUNITIES METLIFE CONSERVATIVE ALLOCATION WESTERN ASSET MANAGEMENT U.S. GOVERNMENT
Certain Portfolios have been subject to a change. Please see "Appendix D -- Additional Information Regarding the Portfolios". HOW TO LEARN MORE: Before investing, read this Prospectus. The Prospectus contains information about the Deferred Annuities and Metropolitan Life Separate Account E which You should know before investing. Keep this Prospectus for future reference. For more information, request a copy of the Statement of Additional Information ("SAI"), dated April 29, 2013. The SAI is considered part of this Prospectus as though it were included in the Prospectus. The Table of Contents of the SAI appears on page 152 of this Prospectus. To view and download the SAI, please visit our website www.metlife.com. To request a free copy of the SAI or to ask questions, write or call: Metropolitan Life Insurance Company Attn: Fulfillment Unit - PPS P.O. Box 10342 Des Moines, IA 50306-0342 (800) 638-7732 DEFERRED ANNUITIES AVAILABLE: . Non-Qualified . Traditional IRA . Roth IRA . Simplified Employee Pensions (SEPs) . SIMPLE Individual Retirement Annuities CLASSES AVAILABLE FOR EACH DEFERRED ANNUITY . B . Bonus . C . L A WORD ABOUT INVESTMENT RISK: An investment in any of these variable annuities involves investment risk. You could lose money You invest. Money invested is NOT: . a bank deposit or obligation; . federally insured or guaranteed; or . endorsed by any bank or other financial institution. Each class of the Deferred Annuities has its own Separate Account charge and Withdrawal Charge schedule. Each provides the opportunity to invest for retirement. The expenses for the Bonus Class of the Deferred Annuity may be higher than similar Contracts without a bonus. The purchase payment credits ("Bonus") may be more than offset by the higher expenses for the Bonus Class. The Securities and Exchange Commission has a Web site (http://www.sec.gov) which You may visit to view this Prospectus, SAI and other information. The Securities and Exchange Commission has not approved or disapproved these securities or determined if this Prospectus is truthful or complete. Any representation otherwise is a criminal offense. 2 TABLE OF CONTENTS Important Terms You Should Know.................................................. 5 Table of Expenses................................................................ 8 Accumulation Unit Values For Each Investment Division............................ 19 MetLife.......................................................................... 20 Metropolitan Life Separate Account E............................................. 20 Variable Annuities............................................................... 20 Replacement of Annuity Contracts............................................. 21 The Deferred Annuity......................................................... 21 Classes of the Deferred Annuity.................................................. 23 Your Investment Choices.......................................................... 26 Deferred Annuities............................................................... 35 The Deferred Annuity and Your Retirement Plan................................ 36 Optional Automated Investment Strategies and Optional Enhanced Dollar Cost Averaging Program.......................................................... 36 Purchase Payments............................................................ 39 Allocation of Purchase Payments.......................................... 41 Debit Authorizations..................................................... 42 The Value of Your Investment................................................. 42 Transfer Privilege........................................................... 43 Restrictions on Transfers................................................ 44 Access to Your Money......................................................... 46 Systematic Withdrawal Program............................................ 46 Charges...................................................................... 47 Separate Account Charge.................................................. 47 Investment-Related Charge................................................ 48 Annual Contract Fee...................................................... 48 Optional Enhanced Death Benefit.......................................... 49 Optional Guaranteed Minimum Income Benefits.............................. 49 Optional Guaranteed Withdrawal Benefits.................................. 50 Optional Guaranteed Minimum Accumulation Benefit......................... 52 Premium and Other Taxes...................................................... 52 Withdrawal Charges........................................................... 53 When No Withdrawal Charge Applies........................................ 54 Free Look.................................................................... 55 Death Benefit--Generally..................................................... 55 Basic Death Benefit...................................................... 58 Optional Death Benefits...................................................... 60 Annual Step-Up Death Benefit............................................. 60 Greater of Annual Step-Up or 5% Annual Increase Death Benefit............ 61 The EDB I................................................................ 64 Earnings Preservation Benefit............................................ 71 Living Benefits.............................................................. 73 Overview of Living Benefits.............................................. 73 Guaranteed Income Benefits............................................ 73
3 Guaranteed Withdrawal Benefits....................................... 93 GMAB.................................................................... 120 Pay-Out Options (or Income Options)......................................... 125 Income Payment Types.................................................... 126 Allocation.............................................................. 127 Minimum Size of Your Income Payment..................................... 127 The Value of Your Income Payments....................................... 127 Reallocation Privilege.................................................. 128 Charges................................................................. 129 General Information............................................................. 130 Administration.............................................................. 130 Purchase Payments....................................................... 130 Confirming Transactions................................................. 130 Processing Transactions................................................. 130 By Telephone or Internet............................................. 131 After Your Death..................................................... 131 Misstatement......................................................... 132 Third Party Requests................................................. 132 Valuation--Suspension of Payments.................................... 132 Advertising Performance..................................................... 133 Changes to Your Deferred Annuity............................................ 134 Voting Rights............................................................... 135 Who Sells the Deferred Annuities............................................ 135 Financial Statements........................................................ 138 Your Spouse's Rights........................................................ 138 When We Can Cancel Your Deferred Annuity.................................... 138 Income Taxes.................................................................... 139 Legal Proceedings............................................................... 151 Table of Contents for the Statement of Additional Information................... 152 Appendix A--Premium Tax Table................................................... 153 Appendix B--Accumulation Unit Values For Each Investment Division............... 154 Appendix C--Portfolio Legal Names and Marketing Names........................... 182 Appendix D--Additional Information Regarding the Portfolios..................... 183
The Deferred Annuities are not intended to be offered anywhere that they may not be lawfully offered and sold. MetLife has not authorized any information or representations about the Deferred Annuities other than the information in this Prospectus, supplements to the prospectus or any supplemental sales material we authorize. 4 IMPORTANT TERMS YOU SHOULD KNOW ACCOUNT BALANCE When You purchase a Deferred Annuity, an account is set up for You. Your Account Balance is the total amount of money credited to You under your Deferred Annuity including money in the Investment Divisions of the Separate Account, the Fixed Account and the Enhanced Dollar Cost Averaging Program. ACCUMULATION UNIT VALUE With a Deferred Annuity, money paid-in or transferred into an Investment Division of the Separate Account is credited to You in the form of accumulation units. Accumulation units are established for each Investment Division. We determine the value of these accumulation units as of the close of the Exchange (see definition below) each day the Exchange is open for regular trading. The Exchange usually closes at 4 p.m. Eastern Time but may close earlier or later. The values increase or decrease based on the investment performance of the corresponding underlying Portfolios. ADMINISTRATIVE OFFICE Your Administrative Office is the MetLife office that will generally handle the administration of all your requests concerning your Deferred Annuity. Your Contract will indicate the address of your Administrative Office. We will notify You if there is a change in the address of your Administrative Office. The telephone number to initiate a request is 800-638-7732. ANNUITANT The natural person whose life is the measure for determining the duration and the dollar amount of income payments. ANNUITY UNIT VALUE With a variable pay-out option, the money paid-in or reallocated into an Investment Division of the Separate Account is held in the form of annuity units. Annuity units are established for each Investment Division. We determine the value of these annuity units as of the close of the Exchange each day the Exchange is open for regular trading. The Exchange usually closes at 4 p.m. Eastern Time but may close earlier or later. The values increase or decrease based on the investment performance of the corresponding underlying Portfolios. ASSUMED INVESTMENT RETURN (AIR) Under a variable pay-out option, the AIR is the assumed percentage rate of return used to determine the amount of the first variable income payment. The AIR is also the benchmark that is used to calculate the investment performance of a given Investment Division to determine all subsequent payments to You. 5 BENEFICIARY The person or persons who receives a benefit, including continuing payments or a lump sum payment, if the Contract Owner dies. CONTRACT A Contract is the legal agreement between You and MetLife. This document contains relevant provisions of your Deferred Annuity. MetLife issues Contracts for each of the annuities described in this Prospectus. CONTRACT ANNIVERSARY An anniversary of the date we issue the Deferred Annuity. CONTRACT OWNER The person or entity which has all rights including the right to direct who receives income payments. CONTRACT YEAR The Contract Year for a Deferred Annuity is the one year period starting on the date we issue the Contract and each Contract Anniversary thereafter. EXCHANGE In this Prospectus, the New York Stock Exchange is referred to as the "Exchange." GOOD ORDER A request or transaction generally is considered in "Good Order" if it complies with our administrative procedures and the required information is complete and correct. A request or transaction may be rejected or delayed if not in Good Order. If You have any questions, You should contact us or your sales representative before submitting the form or request. INVESTMENT DIVISION Investment divisions are subdivisions of the Separate Account. When You allocate a purchase payment, transfer money or make reallocations of your income payment to an Investment Division, the Investment Division purchases shares of a Portfolio (with the same name) within the Metropolitan Fund, the Met Investors Fund or the American Funds(R). METLIFE MetLife is Metropolitan Life Insurance Company which is the company that issues the Deferred Annuities. Throughout this Prospectus, MetLife is also referred to as "we," "us" or "our." SEPARATE ACCOUNT A separate account is an investment account. All assets contributed to Investment Divisions under the Deferred Annuities are pooled in the Separate Account and maintained for the benefit of investors in Deferred Annuities. VARIABLE ANNUITY An annuity in which returns/income payments are based upon the performance of investments such as stocks and bonds held by one or more underlying Portfolios. You assume the investment risk for any amounts allocated to the Investment Divisions in a variable annuity. 6 WITHDRAWAL CHARGE The Withdrawal Charge is the amount we deduct from your Account Balance, if You withdraw money prematurely from a Deferred Annuity. This charge is often referred to as a deferred sales load or back-end sales load. YOU In this Prospectus "You" is the Contract Owner of the Deferred Annuity and can be a natural person, a trust established for the exclusive benefit of a natural person, a charitable remainder trust or other trust arrangement (if approved by MetLife). "You" can also be a Beneficiary of a deceased person's Individual Retirement Account Contract or non-qualified Deferred Annuity who purchases the Deferred Annuity in his or her capacity as Beneficiary. A Contract generally may have two owners (both of whom must be individuals). The Contract is not available to corporations or other business organizations, except to the extent an employer is the purchaser of a SEP or SIMPLE IRA Contract. 7 TABLE OF EXPENSES--PREFERENCE PLUS SELECT DEFERRED ANNUITIES The following tables describe the expenses You will pay when You buy, hold or withdraw amounts from your Deferred Annuity. The first table describes charges You will pay at the time You purchase the Deferred Annuity, make withdrawals from your Deferred Annuity or make transfers between the Investment Divisions. The tables do not show premium taxes (ranging from 0.5% to 3.5%, which are applicable only in certain jurisdictions -- see "Appendix A") and other taxes which may apply. There are no fees for the Fixed Account and the Enhanced Dollar Cost Averaging program. Table 1--Contract Owner Transaction Expenses Sales Charge Imposed on Purchase Payments........................ None -------------------------------------------------------------------------------------- Withdrawal Charge (as a percentage of each purchase payment) (1). Up to 9% -------------------------------------------------------------------------------------- Transfer Fee (2)................................................. Current Charge: None -------------------------------------------------------------------------------------- Maximum Guaranteed Charge: $25 --------------------------------------------------------------------------------------
The second set of tables describes the fees and expenses that You will bear periodically during the time You hold the Deferred Annuity, but does not include fees and expenses for the Portfolios. Table 2(a)--Fees Deducted on Each Contract Anniversary Annual Contract Fee (3). $30 ----------------------------
Table 2(b)--Separate Account Charge The charges below are assessed as a percentage of your Account Balance. You will pay a Separate Account charge, which includes the Standard Death Benefit. An Optional Annual Step-Up Death Benefit and an Optional Greater of Annual Step-Up or 5% Annual Increase Death Benefit are available for an additional charge. You may also elect the Optional Earnings Preservation Benefit for an additional charge with or without the Optional Annual Step-Up Death Benefit or the Optional Greater of Annual Step-Up or 5% Annual Increase Death Benefit (4). Annual Separate Account Charge and Optional Death Benefit Charges (as a percentage of your average Account Balance) for American Funds Bond, American Funds Growth-Income, American Funds Growth and American Funds Global Small Capitalization Divisions (5) B CLASS BONUS CLASS (6) C CLASS L CLASS ------- --------------- ------- ------- Separate Account Charge with Basic Death Benefit................................. 1.50% 1.95% 1.90% 1.75% ------------------------------------------------------------------------------------------------------------------------- Optional Annual Step-Up Death Benefit.......................................... .20% .20% .20% .20% ------------------------------------------------------------------------------------------------------------------------- Optional Greater of Annual Step-Up or 5% Annual Increase Amount Death Benefit...................................................................... .35% .35% .35% .35% ------------------------------------------------------------------------------------------------------------------------- Optional Earnings Preservation Benefit......................................... .25% .25% .25% .25% ------------------------------------------------------------------------------------------------------------------------- Total Separate Account Annual Charge including the Optional Annual Step-Up Death Benefit and the Optional Earnings Preservation Benefit (7)..................... 1.95% 2.40% 2.35% 2.20% ------------------------------------------------------------------------------------------------------------------------- Total Separate Account Annual Charge including the Optional Greater of Annual Step-Up or 5% Annual Increase Death Benefit and the Optional Earnings Preservation Benefit (7)....................................................... 2.10% 2.55% 2.50% 2.35% -------------------------------------------------------------------------------------------------------------------------
8 Annual Separate Account Charge and Optional Death Benefit Charges (as a percentage of your average Account Balance) for all Investment Divisions except the American Funds Bond, American Funds Growth-Income, American Funds Growth and American Funds Global Small Capitalization Divisions (5) B CLASS BONUS CLASS (6) C CLASS L CLASS Death Benefit ------- --------------- ------- ------- Separate Account Charge with Basic Death Benefit................................. 1.25% 1.70% 1.65% 1.50% ------------------------------------------------------------------------------------------------------------------------- Optional Annual Step-Up Death Benefit.......................................... .20% .20% .20% .20% ------------------------------------------------------------------------------------------------------------------------- Optional Greater of Annual Step-Up or 5% Annual Increase Amount Death Benefit...................................................................... .35% .35% .35% .35% ------------------------------------------------------------------------------------------------------------------------- Optional Earnings Preservation Benefit......................................... .25% .25% .25% .25% ------------------------------------------------------------------------------------------------------------------------- Total Separate Account Annual Charge including the Optional Annual Step-Up Death Benefit and the Optional Earnings Preservation Benefit (7)..................... 1.70% 2.15% 2.10% 1.95% ------------------------------------------------------------------------------------------------------------------------- Total Separate Account Annual Charge including the Optional Greater of Annual Step-Up or 5% Annual Increase Death Benefit and the Optional Earnings Preservation Benefit (7)....................................................... 1.85% 2.30% 2.25% 2.10% -------------------------------------------------------------------------------------------------------------------------
Table 2(c)--Additional Optional Death Benefits There is an additional Enhanced Death Benefit that You may elect for an additional charge. The charge for this death benefit, in Table 2(c) below, is assessed as a percentage of the Death Benefit Base and deducted annually from your Account Balance. (8) Enhanced Death Benefit I -- maximum charge 1.50% ---------------------------------------------------------------------------- Enhanced Death Benefit I (issue age 69 or younger) -- current charge 0.75% ---------------------------------------------------------------------------- Enhanced Death Benefit I (issue age 70-75) -- current charge 0.95% ----------------------------------------------------------------------------
Table 2(d)--Optional Guaranteed Income Benefits (9) (as a percentage of the Income Base) (10) Guaranteed Minimum Income Benefit Plus II -- maximum charge 1.50% ------------------------------------------------------------------- Guaranteed Minimum Income Benefit Plus II -- current charge 1.00% -------------------------------------------------------------------
Guaranteed Minimum Income Benefit Plus I -- maximum charge 1.50% ------------------------------------------------------------------ Guaranteed Minimum Income Benefit Plus I -- current charge 0.80% ------------------------------------------------------------------
Guaranteed Minimum Income Benefit II -- current charge 0.50% --------------------------------------------------------------
Guaranteed Minimum Income Benefit I -- current charge 0.50% -------------------------------------------------------------
Table 2(e)--Optional Guaranteed Withdrawal Benefits LIFETIME WITHDRAWAL BENEFITS (AS A PERCENTAGE OF THE TOTAL GUARANTEED WITHDRAWAL AMOUNT) (11) ----------------------------------------------------------------------------------------------------- Lifetime Withdrawal Guarantee Benefit II (Single Life Version)--maximum charge 1.60% ----------------------------------------------------------------------------------------------------- Lifetime Withdrawal Guarantee Benefit II (Single Life Version)--current charge 1.25% ----------------------------------------------------------------------------------------------------- Lifetime Withdrawal Guarantee Benefit II (Joint Life Version)--maximum charge 1.80% ----------------------------------------------------------------------------------------------------- Lifetime Withdrawal Guarantee Benefit II (Joint Life Version)--current charge 1.50% ----------------------------------------------------------------------------------------------------- Lifetime Withdrawal Guarantee Benefit I (Single Life Version)--maximum charge 0.95% ----------------------------------------------------------------------------------------------------- Lifetime Withdrawal Guarantee Benefit I (Single Life Version)--current charge 0.50% ----------------------------------------------------------------------------------------------------- Lifetime Withdrawal Guarantee Benefit I (Joint Life Version)--maximum charge 1.40% ----------------------------------------------------------------------------------------------------- Lifetime Withdrawal Guarantee Benefit I (Joint Life Version)--current charge 0.70% ----------------------------------------------------------------------------------------------------- GUARANTEED WITHDRAWAL BENEFITS (AS A PERCENTAGE OF THE GUARANTEED WITHDRAWAL AMOUNT) (11) ----------------------------------------------------------------------------------------------------- Enhanced Guaranteed Withdrawal Benefit--maximum charge 1.00% ----------------------------------------------------------------------------------------------------- Enhanced Guaranteed Withdrawal Benefit--current charge 0.55% ----------------------------------------------------------------------------------------------------- Guaranteed Withdrawal Benefit I--maximum charge 0.95% ----------------------------------------------------------------------------------------------------- Guaranteed Withdrawal Benefit I--current charge 0.50% -----------------------------------------------------------------------------------------------------
9 Table 2(f)--Optional Guaranteed Asset Accumulation Benefit (as a percentage of the Guaranteed Accumulation Amount) (12) ----------------------------------------------- Guaranteed Minimum Accumulation Benefit 0.75% -----------------------------------------------
The third and fourth tables show the minimum and maximum total operating expenses charged by the Portfolios, as well as the operating expenses for each Portfolio, that You may bear periodically while You hold the Deferred Annuity. All of the Portfolios listed below are Class B except for the Portfolios of the American Funds(R), which are Class 2 and the American Funds(R) Balanced Allocation, American Funds(R) Growth Allocation and American Funds(R) Moderate Allocation Portfolios of the Met Investors Fund, which are Class C. Certain Portfolios may impose a redemption fee in the future. More details concerning the Metropolitan Fund, the Met Investors Fund and the American Funds(R) fees and expenses are contained in their respective prospectuses. Current prospectuses for the Portfolios can be obtained by calling 800-638-7732. Table 3--Portfolio Operating Expenses
Minimum* Maximum** -------------------------------- --------- (Does not take into consideration any American Funds(R) Portfolio, for which an additional separate account charge applies.) ---------------------------------------------------------------------------------------------------- Total Annual Operating Expenses (expenses that are deducted from Portfolio assets include management fees, distribution fees (12b-1 fees) and other expenses). 0.53% 9.71% ----------------------------------------------------------------------------------------------------
* The minimum Total Annual Portfolio Expenses shown in this table are the expenses of the MetLife Stock Index Portfolio for the year ended December 31, 2012, before any fee waiver or expense reimbursement arrangement. The Net Total Annual Portfolio Expenses of the MetLife Stock Index Portfolio are 0.52%. **The maximum Total Annual Portfolio Expenses shown in this table are the expenses of the MetLife Multi-Index Targeted Risk Portfolio for the year ended December 31, 2012, before any fee waiver or expense reimbursement arrangement. The Net Total Annual Portfolio Expenses of the MetLife Multi-Index Targeted Risk Portfolio are 0.86%. Notes /1/ If an amount is determined to include the withdrawal of prior purchase payments, a Withdrawal Charge may apply. The charges on purchase payments for each class is calculated according to the following schedule:
NUMBER OF COMPLETE YEARS FROM RECEIPT OF PURCHASE PAYMENT B CLASS BONUS CLASS C CLASS L CLASS --------------------------------------------------------- ------- ----------- ------- ------- 0..................................... 7% 9% None 7% ---------------------------------------------------------------------------------------------- 1..................................... 6% 8% 6% ---------------------------------------------------------------------------------------------- 2..................................... 6% 8% 5% ---------------------------------------------------------------------------------------------- 3..................................... 5% 7% 0% ---------------------------------------------------------------------------------------------- 4..................................... 4% 6% 0% ---------------------------------------------------------------------------------------------- 5..................................... 3% 4% 0% ---------------------------------------------------------------------------------------------- 6..................................... 2% 3% 0% ---------------------------------------------------------------------------------------------- 7 and thereafter...................... 0% 0% 0% ----------------------------------------------------------------------------------------------
There are times when the Withdrawal Charge does not apply. For example, You may always withdraw earnings without a Withdrawal Charge. After the first Contract Year, You may also withdraw up to 10% of your total purchase payments without a Withdrawal Charge. /2/ We reserve the right to limit transfers as described later in this Prospectus. We reserve the right to impose a transfer fee. The amount of this fee will be no greater than $25 per transfer. 10 /3/ This fee is waived if the Account Balance is $50,000 or more. Regardless of the amount of your Account Balance, the entire fee will be deducted if You take a total withdrawal of your Account Balance. During the pay-out phase, we reserve the right to deduct this fee. /4/ You may not elect the Optional Step-Up Death Benefit or the Optional Greater of Annual Step-up or 5% Annual Increase Death Benefit and/or the Optional Earnings Preservation Benefit with the Enhanced Death Benefit I. /5/ You pay the Separate Account charge with the Basic Death Benefit for your class of the Deferred Annuity during the pay-out phase of your Contract. Charges for optional benefits are those for Deferred Annuities purchased after April 30, 2005. Different charges may have been in effect for prior time periods. We reserve the right to impose an additional Separate Account charge on Investment Divisions that we add to the Contract in the future. The additional amount will not exceed the annual rate of 0.25% of the average Account Balance in any such Investment Divisions as shown in the table labeled "Current Separate Account Charge for the American Funds(R) Investment Divisions". Different Separate Account charges for the American Funds Growth-Income, American Funds Growth and American Funds Global Small Capitalization Divisions were in effect prior to May 1, 2004. We are waiving 0.08% of the Separate Account charge for the Investment Division investing in the BlackRock Large-Cap Core Portfolio of the Met Investors Fund. We are waiving an amount equal to the Portfolio expenses that are in excess 0.87% for the Investment Division investing in the Oppenheimer Global Equity Portfolio of the Met Investors Fund. /6/ The Separate Account charge for the Bonus Class will be reduced by 0.45% to 1.25% for the Basic Death Benefit (1.50% for amounts held in the American Funds(R) Investment Divisions) after You have held the Contract for seven years. Similarly, the Separate Account charge will be reduced by 0.45% to 1.45% for the Annual Step-Up Death Benefit and 1.60% for the Greater of Annual Step-Up or 5% Annual Increase Death Benefit (1.70% and 1.85%, respectively, for amounts held in the American Funds(R) Investment Divisions) after You have held the Contract for seven years. /7/ This charge is determined by adding the Separate Account charge, the Optional Step-Up Death Benefit charge or the Optional Greater of Annual Step-up or 5% Annual Increase Death Benefit charge, as applicable, and the Optional Earnings Preservation Benefit charge. /8/ The Enhanced Death Benefit I may not be elected with the Optional Annual Step-Up Death Benefit, the Optional Greater of Annual Step-Up or 5% Annual Increase Amount Death Benefit or the Optional Earnings Preservation Benefit. The charge for the Enhanced Death Benefit I is a percentage of your Death Benefit Base, as defined later in this Prospectus. You do not pay this charge once You are in the pay-out phase of your Contract or after your optional benefit terminates. The Enhanced Death Benefit I charge may increase upon an Optional Step-Up, but they will not exceed the maximum charges listed in this table. If, at the time your Contract was issued, the current charge for the optional benefit was equal to the maximum charge, then the charge for the optional benefit will not increase upon an Optional Step-Up. (See "Optional Death Benefits" for more information.) /9/ You may only elect one Guaranteed Minimum Income Benefit at a time. You may not have a Guaranteed Withdrawal Benefit, a Guaranteed Minimum Income Benefit or the Guaranteed Minimum Accumulation Benefit in effect at the same time. /10/The charge for the Guaranteed Minimum Income Benefit is a percentage of your guaranteed minimum income base, as defined later in this Prospectus. You do not pay this charge once You are in the pay-out phase of your Contract or after your optional benefit terminates. Charges may increase upon an Optional Step-Up/Optional Reset, but they will not exceed the maximum charges listed in this table. If, at the time your Contract was issued, the current charge for the benefit was equal to the maximum charge, then the charge for the benefit will not increase upon an Optional Step-Up/Optional Reset. (See "Guaranteed Income Benefits" for more information.) /11/The charge for the Guaranteed Withdrawal Benefit I and the Enhanced Guaranteed Withdrawal Benefit is a percentage of your Guaranteed Withdrawal Amount, as defined later in this Prospectus. The charge for the Lifetime Withdrawal Guarantee Benefit I and Lifetime Withdrawal Guarantee Benefit II is a percentage of your Total Guaranteed Withdrawal Amount, as defined later in this Prospectus. You do not pay this charge once You are in the pay-out phase of your Deferred Annuity, or after your optional benefit terminates. Charges may increase upon an Optional Step-Up or Optional Reset, but they will not exceed the maximum charges listed in this table. If, at the time your Contract was issued, the current charge for the optional benefit was equal to the maximum charge, then the charge for the optional benefit will not increase upon an Optional Step-Up or Optional Reset. Certain guaranteed withdrawal benefit optional benefits are no longer available for sale. (See "Guaranteed Withdrawal Benefits" for more information.) /12/The charge for the Guaranteed Minimum Accumulation Benefit is a percentage of your Guaranteed Accumulation Amount, as defined later in this Prospectus. You do not pay for this charge once You are in the pay-out phase of your Contract or after your optional benefits terminates. (See "Guaranteed Minimum Accumulation Benefit" for more information.) 11 Table 4-- Portfolio Fees and Expenses as of December 31, 2012 (unless otherwise noted) (as a percentage of average daily net assets)
AMERICAN FUNDS(R)--CLASS 2 DISTRIBUTION ACQUIRED TOTAL CONTRACTUAL FEE NET TOTAL AND/OR FUND FEES ANNUAL WAIVER AND/OR ANNUAL MANAGEMENT SERVICE OTHER AND OPERATING EXPENSE OPERATING FEE (12B-1) FEES EXPENSES EXPENSES EXPENSES REIMBURSEMENT EXPENSES ------------------------------------------------------------------------------------------------------------------------------- American Funds Bond Fund........................ 0.37% 0.25% 0.02% -- 0.64% -- 0.64% American Funds Global Small Capitalization Fund. 0.71% 0.25% 0.04% -- 1.00% -- 1.00% American Funds Growth Fund...................... 0.33% 0.25% 0.02% -- 0.60% -- 0.60% American Funds Growth-Income Fund............... 0.27% 0.25% 0.02% -- 0.54% -- 0.54% -------------------------
MET INVESTORS FUND DISTRIBUTION ACQUIRED TOTAL AND/OR FUND FEES ANNUAL MANAGEMENT SERVICE OTHER AND OPERATING FEE (12B-1) FEES EXPENSES EXPENSES EXPENSES ----------------------------------------------------------------------------------------------------------------------- AllianceBernstein Global Dynamic Allocation Portfolio -- Class B. 0.62% 0.25% 0.04% 0.01% 0.92% American Funds(R) Balanced Allocation Portfolio -- Class C....... 0.06% 0.55% 0.01% 0.38% 1.00% American Funds(R) Growth Allocation Portfolio -- Class C......... 0.07% 0.55% 0.01% 0.38% 1.01% American Funds(R) Moderate Allocation Portfolio -- Class C....... 0.06% 0.55% 0.01% 0.37% 0.99% AQR Global Risk Balanced Portfolio -- Class B.................... 0.61% 0.25% 0.12% 0.06% 1.04% BlackRock Global Tactical Strategies Portfolio -- Class B........ 0.66% 0.25% 0.02% 0.21% 1.14% BlackRock Large Cap Core Portfolio -- Class B.................... 0.59% 0.25% 0.05% -- 0.89% Clarion Global Real Estate Portfolio -- Class B.................. 0.60% 0.25% 0.06% -- 0.91% ClearBridge Aggressive Growth Portfolio -- Class B............... 0.61% 0.25% 0.03% -- 0.89% Harris Oakmark International Portfolio -- Class B................ 0.77% 0.25% 0.06% -- 1.08% Invesco Balanced-Risk Allocation Portfolio -- Class B............ 0.66% 0.25% 0.12% 0.06% 1.09% Invesco Small Cap Growth Portfolio -- Class B.................... 0.85% 0.25% 0.02% -- 1.12% Janus Forty Portfolio -- Class B................................. 0.63% 0.25% 0.03% -- 0.91% JPMorgan Global Active Allocation Portfolio -- Class B........... 0.79% 0.25% 0.28% -- 1.32% Loomis Sayles Global Markets Portfolio -- Class B................ 0.70% 0.25% 0.09% -- 1.04% Lord Abbett Bond Debenture Portfolio -- Class B.................. 0.51% 0.25% 0.03% -- 0.79% Lord Abbett Mid Cap Value Portfolio -- Class B................... 0.65% 0.25% 0.04% 0.06% 1.00% Met/Franklin Low Duration Total Return Portfolio -- Class B...... 0.50% 0.25% 0.07% -- 0.82% MetLife Aggressive Strategy Portfolio -- Class B................. 0.09% 0.25% 0.01% 0.72% 1.07% MetLife Balanced Plus Portfolio -- Class B....................... 0.25% 0.25% 0.01% 0.43% 0.94% MetLife Growth Strategy Portfolio -- Class B..................... 0.06% 0.25% -- 0.69% 1.00% MetLife Multi-Index Targeted Risk Portfolio -- Class B........... 0.18% 0.25% 9.02% 0.26% 9.71% MFS(R) Research International Portfolio -- Class B............... 0.68% 0.25% 0.07% -- 1.00% Morgan Stanley Mid Cap Growth Portfolio -- Class B............... 0.65% 0.25% 0.07% -- 0.97% Oppenheimer Global Equity Portfolio -- Class B................... 0.67% 0.25% 0.09% -- 1.01%
MET INVESTORS FUND CONTRACTUAL FEE NET TOTAL WAIVER AND/OR ANNUAL EXPENSE OPERATING REIMBURSEMENT EXPENSES ------------------------------------------------------------------------------------------- AllianceBernstein Global Dynamic Allocation Portfolio -- Class B. 0.01% 0.91% American Funds(R) Balanced Allocation Portfolio -- Class C....... -- 1.00% American Funds(R) Growth Allocation Portfolio -- Class C......... -- 1.01% American Funds(R) Moderate Allocation Portfolio -- Class C....... -- 0.99% AQR Global Risk Balanced Portfolio -- Class B.................... 0.01% 1.03% BlackRock Global Tactical Strategies Portfolio -- Class B........ 0.02% 1.12% BlackRock Large Cap Core Portfolio -- Class B.................... 0.01% 0.88% Clarion Global Real Estate Portfolio -- Class B.................. -- 0.91% ClearBridge Aggressive Growth Portfolio -- Class B............... -- 0.89% Harris Oakmark International Portfolio -- Class B................ 0.02% 1.06% Invesco Balanced-Risk Allocation Portfolio -- Class B............ -- 1.09% Invesco Small Cap Growth Portfolio -- Class B.................... 0.01% 1.11% Janus Forty Portfolio -- Class B................................. 0.01% 0.90% JPMorgan Global Active Allocation Portfolio -- Class B........... 0.07% 1.25% Loomis Sayles Global Markets Portfolio -- Class B................ -- 1.04% Lord Abbett Bond Debenture Portfolio -- Class B.................. -- 0.79% Lord Abbett Mid Cap Value Portfolio -- Class B................... 0.00% 1.00% Met/Franklin Low Duration Total Return Portfolio -- Class B...... 0.02% 0.80% MetLife Aggressive Strategy Portfolio -- Class B................. -- 1.07% MetLife Balanced Plus Portfolio -- Class B....................... 0.01% 0.93% MetLife Growth Strategy Portfolio -- Class B..................... -- 1.00% MetLife Multi-Index Targeted Risk Portfolio -- Class B........... 8.85% 0.86% MFS(R) Research International Portfolio -- Class B............... 0.05% 0.95% Morgan Stanley Mid Cap Growth Portfolio -- Class B............... 0.01% 0.96% Oppenheimer Global Equity Portfolio -- Class B................... 0.02% 0.99% -------------------------
12
MET INVESTORS FUND DISTRIBUTION ACQUIRED TOTAL CONTRACTUAL FEE AND/OR FUND FEES ANNUAL WAIVER AND/OR MANAGEMENT SERVICE OTHER AND OPERATING EXPENSE FEE (12B-1) FEES EXPENSES EXPENSES EXPENSES REIMBURSEMENT -------------------------------------------------------------------------------------------------------------------------- PIMCO Inflation Protected Bond Portfolio -- Class B. 0.47% 0.25% 0.11% -- 0.83% -- PIMCO Total Return Portfolio -- Class B............. 0.48% 0.25% 0.03% -- 0.76% -- Pyramis(R) Government Income Portfolio -- Class B... 0.42% 0.25% 0.03% -- 0.70% -- Pyramis(R) Managed Risk Portfolio -- Class B........ 0.45% 0.25% 0.27% 0.48% 1.45% 0.17% Schroders Global Multi-Asset Portfolio -- Class B... 0.67% 0.25% 0.32% 0.14% 1.38% 0.14% SSgA Growth and Income ETF Portfolio -- Class B..... 0.31% 0.25% 0.01% 0.24% 0.81% -- SSgA Growth ETF Portfolio -- Class B................ 0.32% 0.25% 0.03% 0.25% 0.85% -- T. Rowe Price Mid Cap Growth Portfolio -- Class B... 0.75% 0.25% 0.03% -- 1.03% -- ----------------
MET INVESTORS FUND NET TOTAL ANNUAL OPERATING EXPENSES -------------------------------------------------------------- PIMCO Inflation Protected Bond Portfolio -- Class B. 0.83% PIMCO Total Return Portfolio -- Class B............. 0.76% Pyramis(R) Government Income Portfolio -- Class B... 0.70% Pyramis(R) Managed Risk Portfolio -- Class B........ 1.28% Schroders Global Multi-Asset Portfolio -- Class B... 1.24% SSgA Growth and Income ETF Portfolio -- Class B..... 0.81% SSgA Growth ETF Portfolio -- Class B................ 0.85% T. Rowe Price Mid Cap Growth Portfolio -- Class B... 1.03% ---------
METROPOLITAN FUND--CLASS B DISTRIBUTION ACQUIRED TOTAL CONTRACTUAL FEE AND/OR FUND FEES ANNUAL WAIVER AND/OR MANAGEMENT SERVICE OTHER AND OPERATING EXPENSE FEE (12B-1) FEES EXPENSES EXPENSES EXPENSES REIMBURSEMENT ---------------------------------------------------------------------------------------------------------------------------- Baillie Gifford International Stock Portfolio......... 0.81% 0.25% 0.10% -- 1.16% 0.10% Barclays Aggregate Bond Index Portfolio............... 0.25% 0.25% 0.04% -- 0.54% 0.01% BlackRock Bond Income Portfolio....................... 0.32% 0.25% 0.04% -- 0.61% 0.00% BlackRock Capital Appreciation Portfolio.............. 0.70% 0.25% 0.03% -- 0.98% 0.01% BlackRock Diversified Portfolio....................... 0.46% 0.25% 0.07% -- 0.78% -- BlackRock Large Cap Value Portfolio................... 0.63% 0.25% 0.03% -- 0.91% 0.03% BlackRock Money Market Portfolio...................... 0.33% 0.25% 0.02% -- 0.60% 0.01% Davis Venture Value Portfolio......................... 0.70% 0.25% 0.03% -- 0.98% 0.05% Frontier Mid Cap Growth Portfolio..................... 0.73% 0.25% 0.05% -- 1.03% 0.02% Jennison Growth Portfolio............................. 0.61% 0.25% 0.03% -- 0.89% 0.07% Loomis Sayles Small Cap Core Portfolio................ 0.90% 0.25% 0.07% 0.10% 1.32% 0.08% Loomis Sayles Small Cap Growth Portfolio.............. 0.90% 0.25% 0.06% -- 1.21% 0.09% Met/Artisan Mid Cap Value Portfolio................... 0.81% 0.25% 0.04% -- 1.10% -- MetLife Conservative Allocation Portfolio............. 0.09% 0.25% 0.02% 0.54% 0.90% 0.01% MetLife Conservative to Moderate Allocation Portfolio. 0.07% 0.25% 0.01% 0.58% 0.91% 0.00% MetLife Mid Cap Stock Index Portfolio................. 0.25% 0.25% 0.07% 0.02% 0.59% 0.00% MetLife Moderate Allocation Portfolio................. 0.06% 0.25% -- 0.63% 0.94% 0.00% MetLife Moderate to Aggressive Allocation Portfolio... 0.06% 0.25% 0.01% 0.67% 0.99% 0.00% MetLife Stock Index Portfolio......................... 0.25% 0.25% 0.03% -- 0.53% 0.01% MFS(R) Total Return Portfolio......................... 0.55% 0.25% 0.05% -- 0.85% -- MFS(R) Value Portfolio................................ 0.70% 0.25% 0.03% -- 0.98% 0.13% MSCI EAFE(R) Index Portfolio.......................... 0.30% 0.25% 0.11% 0.01% 0.67% 0.00% ----------------
METROPOLITAN FUND--CLASS B NET TOTAL ANNUAL OPERATING EXPENSES ---------------------------------------------------------------- Baillie Gifford International Stock Portfolio......... 1.06% Barclays Aggregate Bond Index Portfolio............... 0.53% BlackRock Bond Income Portfolio....................... 0.61% BlackRock Capital Appreciation Portfolio.............. 0.97% BlackRock Diversified Portfolio....................... 0.78% BlackRock Large Cap Value Portfolio................... 0.88% BlackRock Money Market Portfolio...................... 0.59% Davis Venture Value Portfolio......................... 0.93% Frontier Mid Cap Growth Portfolio..................... 1.01% Jennison Growth Portfolio............................. 0.82% Loomis Sayles Small Cap Core Portfolio................ 1.24% Loomis Sayles Small Cap Growth Portfolio.............. 1.12% Met/Artisan Mid Cap Value Portfolio................... 1.10% MetLife Conservative Allocation Portfolio............. 0.89% MetLife Conservative to Moderate Allocation Portfolio. 0.91% MetLife Mid Cap Stock Index Portfolio................. 0.59% MetLife Moderate Allocation Portfolio................. 0.94% MetLife Moderate to Aggressive Allocation Portfolio... 0.99% MetLife Stock Index Portfolio......................... 0.52% MFS(R) Total Return Portfolio......................... 0.85% MFS(R) Value Portfolio................................ 0.85% MSCI EAFE(R) Index Portfolio.......................... 0.67% ---------
13
METROPOLITAN FUND--CLASS B DISTRIBUTION ACQUIRED TOTAL CONTRACTUAL FEE NET TOTAL AND/OR FUND FEES ANNUAL WAIVER AND/OR ANNUAL MANAGEMENT SERVICE OTHER AND OPERATING EXPENSE OPERATING FEE (12B-1) FEES EXPENSES EXPENSES EXPENSES REIMBURSEMENT EXPENSES ------------------------------------------------------------------------------------------------------------------------ Neuberger Berman Genesis Portfolio....... 0.82% 0.25% 0.04% -- 1.11% 0.01% 1.10% Russell 2000(R) Index Portfolio.......... 0.25% 0.25% 0.08% 0.09% 0.67% 0.00% 0.67% T. Rowe Price Large Cap Growth Portfolio. 0.60% 0.25% 0.09% -- 0.89% 0.01% 0.88% T. Rowe Price Small Cap Growth Portfolio. 0.49% 0.25% 0.06% -- 0.80% -- 0.80% Western Asset Management Strategic Bond Opportunities Portfolio................ 0.60% 0.25% 0.05% -- 0.90% 0.04% 0.86% Western Asset Management U.S. Government Portfolio.............................. 0.47% 0.25% 0.03% -- 0.75% 0.02% 0.73% -------------------------
The information shown in the table above was provided by the Portfolios and we have not independently verified that information. Net Total Annual Operating Expenses shown in the table reflect any current fee waiver or expense reimbursement arrangement that will remain in effect for a period of at least one year from the date of the Portfolio's 2013 prospectus. "0.00%" in the Fee Waiver and/or Expense Reimbursement column indicates that there is such an arrangement in effect for the Portfolio, but that the expenses of the Portfolio are below the level that would trigger the waiver or reimbursement. Fee waiver and expense reimbursement arrangements with a duration of less than one year, or arrangements that may be terminated without the consent of the Portfolio's board of directors or trustees, are not shown. Certain Portfolios that have "Acquired Fund Fees and Expenses" are "funds of funds." A fund of funds invests substantially all of its assets in other underlying funds. Because the Portfolio invests in other funds, it will bear its pro rata portion of the operating expenses of those underlying funds, including the management fee. EXAMPLES These Examples are intended to help You compare the cost of investing in the Contract with the cost of investing in other variable annuity Contracts. These costs include Contract owner transaction expenses, annual Contract fees, if any, separate account charges, and underlying Portfolio fees and expenses. Examples 1 through 4 assume You purchased the Contract with optional benefits that result in the highest possible combination of charges. Example 1 relates to the purchase of the Deferred Annuity with the B Class; Example 2 relates to the purchase of the Deferred Annuity with the Bonus Class; Example 3 relates to the purchase of the Deferred Annuity with the C Class; and Example 4 relates to the purchase of the Deferred Annuity with the L Class. Examples 5 through 8 assume You purchased the Contract with no optional benefits that result in the least expensive combination of charges. Example 5 relates to the purchase of the Deferred Annuity with the B Class; Example 6 relates to the purchase of the Deferred Annuity with the Bonus Class; Example 7 relates to the purchase of the Deferred Annuity with the C Class; and Example 8 relates to the purchase of the Deferred Annuity with the L Class. 14 Example 1. This example shows the dollar amount of expenses that You would bear directly or indirectly on a $10,000 investment for the time periods indicated. Your actual costs may be higher or lower. Assumptions: . YOU SELECT THE B CLASS; . reimbursement and/or waiver of expenses was not in effect; . there was no allocation to the Fixed Account or Enhanced Dollar Cost Averaging Program; . You bear the minimum or maximum fees and expenses of any of the Portfolios (see "Table 3--Portfolio Operating Expenses"); . You paid the Annual Contract Fee; . the underlying Portfolio earns a 5% annual return; . You select the Enhanced Death Benefit I and You are age 70 and assume that You elect the Optional Step-Up feature and as a result the charge increases to 1.50%, which is the maximum charge permitted; . You select the Guaranteed Minimum Income Benefit Plus II ("GMIB Plus II") and assume that You elect the Optional Step-Up feature and as a result the charge increases to 1.50%, which is the maximum charge permitted; and . You select the Earnings Preservation Benefit You fully surrender your Contract, with applicable Withdrawal Charges deducted.
1 3 5 10 YEAR YEARS YEARS YEARS ------------------------------------------------- Maximum............. $2,138 $4,597 $6,728 $11,017 Minimum............. $1,222 $2,154 $3,131 $ 5,977
You do not surrender your Contract or You elect to annuitize (elect a pay-out option with an income payment type under which You receive income payments over your lifetime) (no Withdrawal Charges would be deducted).
1 3 5 10 YEAR YEARS YEARS YEARS ------------------------------------------------- Maximum............. $1,438 $4,057 $6,368 $11,017 Minimum............. $ 522 $1,614 $2,771 $ 5,977
Example 2. This example shows the dollar amount of expenses that You would bear directly or indirectly on a $10,000 investment for the periods indicated. Your actual costs may be higher or lower. Assumptions: . YOU SELECT THE BONUS CLASS; . reimbursement and/or waiver of expenses was not in effect; . there was no allocation to the Fixed Account; . You bear the minimum or maximum fees and expenses of any of the Portfolios (see "Table 3--Portfolio Operating Expenses"); . You paid the Annual Contract Fee; . the underlying Portfolio earns a 5% annual return; . You select the Enhanced Death Benefit I and You are age 70 and assume that You elect the Optional Step-Up feature and as a result the charge increases to 1.50%, which is the maximum charge permitted; . You select the Guaranteed Minimum Income Benefit Plus II ("GMIB Plus II") and assume that You elect the Optional Step-Up feature and as a result the charge increases to 1.50%, which is the maximum charge permitted; and . You select the Earnings Preservation Benefit You fully surrender your Contract, with applicable Withdrawal Charges deducted.
1 3 5 10 YEAR YEARS YEARS YEARS ------------------------------------------------------------------------------- Maximum........................................... $2,453 $5,029 $7,256 $11,478 Minimum........................................... $1,511 $2,536 $3,624 $ 6,546
15 You do not surrender your Contract or You elect to annuitize (elect a pay-out option with an income payment type under which You receive income payments over your lifetime) (no Withdrawal Charges would be deducted).
1 3 5 10 YEAR YEARS YEARS YEARS ------------------------------------------------------------------------------- Maximum........................................... $1,526 $4,288 $6,700 $11,478 Minimum........................................... $ 584 $1,795 $3,068 $ 6,546
Example 3. This example shows the dollar amount of expenses that You would bear directly or indirectly on a $10,000 investment for the time periods indicated. Your actual costs may be higher or lower. Assumptions: . YOU SELECT THE C CLASS; . reimbursement and/or waiver of expenses was not in effect; . You bear the minimum or maximum fees and expenses of any of the Portfolios (see "Table 3--Portfolio Operating Expenses"); . You pay the Annual Contract Fee; . the underlying Portfolio earns a 5% annual return; . You select the Enhanced Death Benefit I and You are age 70 and assume that You elect the Optional Step-Up feature and as a result the charge increases to 1.50%, which is the maximum charge permitted; . You select the Guaranteed Minimum Income Benefit Plus II ("GMIB Plus II") and assume that You elect the Optional Step-Up feature and as a result the charge increases to 1.50%, which is the maximum charge permitted; and . You select the Earnings Preservation Benefit You surrender your Contract, You do not surrender your Contract or You elect to annuitize (elect a pay-out option with an income type under which You receive income payments over your life time) (no Withdrawal Charges apply to the C Class).
1 3 5 10 YEAR YEARS YEARS YEARS ------------------------------------------------------------------------------- Maximum........................................... $1,478 $4,153 $6,492 $11,133 Minimum........................................... $ 562 $1,731 $2,960 $ 6,321
Example 4. This example shows the dollar amount of expenses that You would bear directly or indirectly on a $10,000 investment for the time periods indicated. Your actual costs may be higher or lower. Assumptions: . YOU SELECT THE L CLASS; . reimbursement and/or waiver of expenses was not in effect; . there was no allocation to the Fixed Account or the Enhanced Dollar Cost Averaging Program; . You bear the minimum or maximum fees and expenses of any of the Portfolios (see "Table 3--Portfolio Operating Expenses"); . You paid the Annual Contract Fee; . the underlying Portfolio earns a 5% annual return; . You select the Enhanced Death Benefit I and You are age 70 and assume that You elect the Optional Step-Up feature and as a result the charge increases to 1.50%, which is the maximum charge permitted; . You select the Guaranteed Minimum Income Benefit Plus II ("GMIB Plus II") and assume that You elect the Optional Step-Up feature and as a result the charge increases to 1.50%, which is the maximum charge permitted; and . You select the Earnings Preservation Benefit You fully surrender your Contract with applicable Withdrawal Charges deducted.
1 3 5 10 YEAR YEARS YEARS YEARS ------------------------------------------------------------------------------- Maximum........................................... $2,163 $4,567 $6,446 $11,091 Minimum........................................... $1,247 $2,137 $2,889 $ 6,193
16 You do not surrender your Contract or You elect to annuitize (elect a pay-out option with an income type under which You receive income payments over your life time) (no Withdrawal Charges would be deducted).
1 3 5 10 YEAR YEARS YEARS YEARS ------------------------------------------------------------------------------- Maximum........................................... $1,463 $4,117 $6,446 $11,091 Minimum........................................... $ 547 $1,687 $2,889 $ 6,193
Example 5. This example shows the dollar amount of expenses that You would bear directly or indirectly on a $10,000 investment for the time periods indicated. Your actual costs may be higher or lower: Assumptions: . YOU SELECT THE B CLASS; . reimbursement and/or waiver of expenses was not in effect; . there was no allocation to the Fixed Account or Enhanced Dollar Cost Averaging Program; . You bear the minimum or maximum fees and expenses of any of the Portfolios (see "Table 3--Portfolio Operating Expenses"); . You pay the Annual Contract Fee; and . the underlying Portfolio earns a 5% annual return You fully surrender your Contract, with applicable Withdrawal Charges deducted.
1 3 5 10 YEAR YEARS YEARS YEARS ------------------------------------------------------------------------------ Maximum........................................... $1,823 $3,707 $5,330 $8,591 Minimum........................................... $ 907 $1,178 $1,451 $2,329
You do not surrender your Contract or You elect to annuitize (elect a pay-out option with an income payment type under which You receive income payments over your lifetime) (no Withdrawal Charges would be deducted).
1 3 5 10 YEAR YEARS YEARS YEARS ------------------------------------------------------------------------------ Maximum........................................... $1,123 $3,167 $4,970 $8,591 Minimum........................................... $ 207 $ 638 $1,091 $2,329
Example 6. This example shows the dollar amount of expenses that You would bear directly or indirectly on a $10,000 investment for the periods indicated. Your actual costs may be higher or lower. Assumptions: . YOU SELECT THE BONUS CLASS; . reimbursement and/or waiver of expenses was not in effect; . there was no allocation to the Fixed Account; . You bear the minimum or maximum fees and expenses of any of the Portfolios (see "Table 3--Portfolio Operating Expenses"); . You pay the Annual Contract Fee; and . the underlying Portfolio earns a 5% annual return You fully surrender your Contract, with applicable Withdrawal Charges deducted.
1 3 5 10 YEAR YEARS YEARS YEARS ------------------------------------------------------------------------------ Maximum........................................... $2,129 $4,117 $5,829 $9,026 Minimum........................................... $1,186 $1,536 $1,910 $2,866
17 You do not surrender your Contract or elect to annuitize (elect a pay-out option with an income payment type under which You receive income payments over your lifetime) (no Withdrawal Charges would be deducted).
1 3 5 10 YEAR YEARS YEARS YEARS ------------------------------------------------------------------------------ Maximum........................................... $1,202 $3,375 $5,273 $9,026 Minimum........................................... $ 259 $ 794 $1,354 $2,866
Example 7. This example shows the dollar amount of expenses that You would bear directly or indirectly on a $10,000 investment for the time periods indicated. Your actual costs may be higher or lower. Assumptions: . YOU SELECT THE C CLASS; . reimbursement and/or waiver of expenses was not in effect; . there was no allocation to the Fixed Account; . You bear the minimum or maximum fees and expenses of any of the Portfolios (see "Table 3--Portfolio Operating Expenses"); . You pay the Annual Contract Fee; and . the underlying Portfolio earns a 5% annual return You surrender your Contract, You do not surrender your Contract or elect to annuitize (elect a pay-out option with an income payment type under which You receive income payments over your lifetime) (no Withdrawal Charges apply to the C Class).
1 3 5 10 YEAR YEARS YEARS YEARS ------------------------------------------------------------------------------ Maximum........................................... $1,163 $3,267 $5,106 $8,748 Minimum........................................... $ 247 $ 759 $1,293 $2,740
Example 8. This example shows the dollar amount of expenses that You would bear directly or indirectly on a $10,000 investment for the time periods indicated. Your actual costs may be higher or lower. Assumptions: . YOU SELECT THE L CLASS; . reimbursement and/or waiver of expenses was not in effect; . there was no allocation to the Fixed Account or the Enhanced Dollar Cost Averaging Program; . You bear the minimum or maximum fees and expenses of any of the Portfolios (see "Table 3--Portfolio Operating Expenses"); . You pay the Annual Contract Fee; and . the underlying Portfolio earns a 5% annual return You fully surrender your Contract with applicable Withdrawal Charges deducted.
1 3 5 10 YEAR YEARS YEARS YEARS ------------------------------------------------------------------------------ Maximum........................................... $1,848 $3,679 $5,055 $8,690 Minimum........................................... $ 932 $1,164 $1,218 $2,587
You do not surrender your Contract or You elect to annuitize (elect a pay-out option with an income type under which You receive income payments over your life time) (no Withdrawal Charges would be deducted).
1 3 5 10 YEAR YEARS YEARS YEARS ------------------------------------------------------------------------------ Maximum........................................... $1,148 $3,229 $5,055 $8,690 Minimum........................................... $ 232 $ 714 $1,218 $2,587
18 ACCUMULATION UNIT VALUES FOR EACH INVESTMENT DIVISION See Appendix B. 19 METLIFE Metropolitan Life Insurance Company ("MLIC" or the "Company") is a leading provider of insurance, annuities, and employee benefits programs with operations throughout the United States. The Company offers life insurance and annuities to individuals, as well as group insurance and retirement & savings products and many other services to corporations and other institutions. The Company was formed under the laws of New York in 1868. The Company's home office is located at 200 Park Avenue, New York, New York 10166-0188. The Company is a wholly-owned subsidiary of MetLife, Inc. MetLife, Inc. is a leading global provider of insurance, annuities and employee benefit programs, serving 90 million customers. Through its subsidiaries and affiliates, MetLife, Inc. holds leading market positions in the United States, Japan, Latin America, Asia, Europe and the Middle East. METROPOLITAN LIFE SEPARATE ACCOUNT E We established Metropolitan Life Separate Account E on September 27, 1983. The purpose of the Separate Account is to hold the variable assets that underlie the Preference Plus Select Variable Annuity Contracts and some other variable annuity Contracts we issue. We have registered the Separate Account with the Securities and Exchange Commission as a unit investment trust under the Investment Company Act of 1940, as amended ("1940 Act"). The Separate Account's assets are solely for the benefit of those who invest in the Separate Account and no one else, including our creditors. The assets of the Separate Account are held in our name on behalf of the Separate Account and legally belong to us. All the income, gains and losses (realized or unrealized) resulting from these assets are credited to or charged against the Contracts issued from this Separate Account without regard to our other business. We are obligated to pay all money we owe under the Contracts -- such as death benefits and income payments -- even if that amount exceeds the assets in the Separate Account. Any such amount that exceeds the assets in the Separate Account is paid from our general account. Any amount under any optional death benefit, optional Guaranteed Minimum Income Benefit, optional Guaranteed Withdrawal Benefit or optional Guaranteed Minimum Accumulation Benefit that exceeds the assets in the Separate Account are also paid from our general account. Benefit amounts paid from the general account are subject to the financial strength and claims paying ability of the Company and our long term ability to make such payments, and are not guaranteed by any other party. We issue other annuity Contracts and life insurance policies where we pay all money we owe under those Contracts and policies from our general account. MetLife is regulated as an insurance company under state law, which includes, generally, limits on the amount and type of investments in its general account. However, there is no guarantee that we will be able to meet our claims paying obligations; there are risks to purchasing any insurance product. The investment manager to certain of the Portfolios offered with the Contracts or with other Variable Annuity contracts issued through the Separate Account may be regulated as Commodity Pool Operators. While if does not concede that the Separate Account is a commodity pool, the Company has claimed an exclusion from the definition of the term "commodity pool operator" under the Commodities Exchange Act ("CEA"), and is not subject to registration or regulation as a pool operator under the CEA. VARIABLE ANNUITIES This Prospectus describes a type of variable annuity, a Deferred Annuity. These annuities are "variable" because the value of your account or income payment varies based on the investment performance of the Investment Divisions You choose. In short, the value of your Deferred Annuity and your income payments under a variable pay-out option of your Deferred Annuity may go up or down. Since the investment performance is not guaranteed, your money is at risk. 20 The degree of risk will depend on the Investment Divisions You select. The Accumulation Unit Value or Annuity Unit Value for each Investment Division rises or falls based on the investment performance (or "experience") of the Portfolio with the same name. MetLife and its affiliates also offer other annuities not described in this Prospectus. The Deferred Annuities have a fixed interest rate option called the "Fixed Account." The Fixed Account is not available to all Contract Owners. The Fixed Account offers an interest rate that is guaranteed by us. The minimum interest rate depends on the date your Contract is issued but will not be less than 1%. The variable pay-out options under the Deferred Annuities have a fixed payment option called the "Fixed Income Option." Under the Fixed Income Option, we guarantee the amount of your fixed income payments. These fixed options are not described in this Prospectus although we occasionally refer to them. REPLACEMENT OF ANNUITY CONTRACTS EXCHANGE PROGRAMS: From time to time we may offer programs under which certain fixed or variable annuity Contracts previously issued by us may be exchanged for the Deferred Annuity offered by this Prospectus. Currently, with respect to exchanges from certain of our variable annuity Contracts to this Deferred Annuity, an existing Contract is eligible for exchange if a withdrawal from, or surrender of, the Contract would not trigger a Withdrawal Charge. The Account Balance of this Deferred Annuity attributable to the exchanged assets will not be subject to any Withdrawal Charge or be eligible for the Enhanced Dollar Cost Averaging Program. Any additional purchase payments contributed to the new Deferred Annuity will be subject to all fees and charges, including the Withdrawal Charge described in this Prospectus. You should carefully consider whether an exchange is appropriate for You by comparing the death benefits, living benefits, and other guarantees provided by the Contract You currently own to the benefits and guarantees that would be provided by the new Contract offered in this Prospectus. Then You should compare the fees and charges (E.G., the death benefit charges, the living benefit charges, and the separate account charge) of your current Contract to the fees and charges of the new Contract, which may be higher than your current Contract. These programs will be made available on terms and conditions determined by us, and any such programs will comply with applicable law. We believe the exchanges will be tax free for Federal income tax purposes; however, You should consult your tax adviser before making any such exchange. OTHER EXCHANGES: Generally, You can exchange one variable annuity Contract for another in a tax-free exchange under Section 1035 of the Internal Revenue Code. Before making an exchange You should compare both annuities carefully. If You exchange another annuity for the one described in this Prospectus, unless the exchange occurs under one of our exchange programs described above, You might have to pay a surrender charge on your old annuity, and there will be a new surrender charge period for this Deferred Annuity. Other charges may be higher (or lower) and the benefits may be different. Also, because we will not issue the Deferred Annuity until we have received the initial purchase payment from your existing insurance company, the issuance of the Contract may be delayed. Generally, it is not advisable to purchase a Deferred Annuity as a replacement for an existing variable annuity Contract. Before You exchange another annuity for our Deferred Annuity, ask your registered representative whether the exchange would be advantageous, given the Contract features, benefits and charges. THE DEFERRED ANNUITY You accumulate money in your account during the pay-in phase by making one or more purchase payments. MetLife will hold your money and credit investment returns as long as the money remains in your account. All IRAs receive tax deferral under the Internal Revenue Code. There are no additional tax benefits from funding an IRA with a Deferred Annuity. Therefore, there should be reasons other than tax deferral for acquiring the Deferred Annuity, such as the availability of a guaranteed income for life, the death benefits or the other optional benefits available under this Deferred Annuity. Under the Internal Revenue Code ("Code"), spousal continuation and certain distribution options are available only to a person who is defined as a "spouse" under the Federal Defense of Marriage Act or other applicable Federal law. All 21 Contract provisions will be interpreted and administered in accordance with the requirements of the Code. Therefore, under current Federal law, a purchaser who has or is contemplating a civil union or same-sex marriage should note that the favorable tax treatment afforded under Federal law would not be available to such same-sex partner or same-sex spouse. Same-sex partners or spouses who own or are considering the purchase of annuity products that provide benefits based upon status as a spouse should consult a tax adviser. Accordingly, a purchaser who has or is contemplating a civil union or same-sex marriage should note that such same-sex partner or same-sex spouse would not be able to receive continued payments after the death of the Contract Owner under the Joint Life version of the Lifetime Withdrawal Guarantee (see "Living Benefits -- Guaranteed Withdrawal Benefits"). NON-NATURAL PERSONS AS OWNERS OR BENEFICIARIES. If a non-natural person, such as a trust, is the Owner of a non-qualified Deferred Annuity, the distribution on death rules under the Internal Revenue Code may require payment to begin earlier than expected and may impact the usefulness of the living and/or death benefits. Naming a non-natural person, such as a trust or estate, as a Beneficiary under the Deferred Annuity will generally, eliminate the Beneficiary's ability to "stretch" or a spousal Beneficiary's ability to continue the Deferred Annuity and the living and/or death benefits. A Deferred Annuity consists of two phases: the accumulation or "pay-in" phase and the income or "pay-out" phase. The pay-out phase begins when You elect to have us pay You "income" payments using the money in your account. The number and the amount of the income payments You receive will depend on such things as the type of pay-out option You choose, your investment choices, and the amount used to provide your income payments. Because Deferred Annuities offer the insurance benefit of income payment options, including our guarantee of income for your lifetime, they are "annuities." The Deferred Annuity is offered in several variations, which we call "classes." Each class offers You the ability to choose certain features. Each has its own Separate Account charge and applicable Withdrawal Charge (except C Class which has no Withdrawal Charges). The Deferred Annuity also offers You the opportunity to choose optional benefits, each for a charge in addition to the Separate Account charge with the Basic Death Benefit for that class. If You purchase any of the optional death benefits, You receive the optional benefit in place of the Basic Death Benefit. In deciding what class of the Deferred Annuity to purchase, You should consider the amount of Separate Account and Withdrawal Charges You are willing to bear relative to your needs. In deciding whether to purchase any of the optional benefits, You should consider the desirability of the benefit relative to its additional cost and to your needs. Unless You tell us otherwise, we will assume that You are purchasing the B Class Deferred Annuity with the Basic Death Benefit and no optional benefits. These optional benefits are: .. an Annual Step-Up Death Benefit; .. a Greater of Annual Step-Up or 5% Annual Increase Death Benefit; .. an Enhanced Death Benefit (the "EDB I"); .. an Earnings Preservation Benefit; .. Guaranteed Minimum Income Benefits (the Guaranteed Minimum Income Benefit Plus II (the "GMIB Plus II"), the Guaranteed Minimum Income Plus I (the "GMIB Plus I"), the Guaranteed Minimum Income Benefit II (the "GMIB II") and the Guaranteed Minimum Income Benefit I (the "GMIB I") are collectively, the "GMIBs"); .. Guaranteed Withdrawal Benefits (the Lifetime Withdrawal Guarantee II (the "LWG II"), the Lifetime Withdrawal Guarantee I (the "LWG I"), the Enhanced Guaranteed Withdrawal Benefit (the "Enhanced GWB") and the Guaranteed Withdrawal Benefit I (the "GWB I") are collectively, the "GWBs"); and .. a Guaranteed Minimum Accumulation Benefit (the "GMAB"). You may not have a GMIB, a GWB or the GMAB in effect at the same time. You may not have the EDB I in effect with any living benefit except the GMIB Plus II. None of these optional benefits are currently available for sale. 22 Each of these optional benefits is described in more detail later in this Prospectus. The availability of optional benefits and features of optional benefits may vary by state. We may restrict the investment choices available to You if You select certain optional benefits. These restrictions are intended to reduce the risk of investment losses which could require the Company to use its general account assets to pay amounts due under the selected optional benefit. Certain withdrawals, depending on the amount and timing, may negatively impact the benefits and guarantees provided by your Contract. You should carefully consider whether a withdrawal under a particular circumstance will have any negative impact to your benefits or guarantees. The impact of withdrawals generally on your benefits and guarantees is discussed in the corresponding sections of the Prospectus describing such benefits and guarantees. CLASSES OF THE DEFERRED ANNUITY B CLASS The B Class has a 1.25% annual Separate Account charge (1.50% in the case of each American Funds(R) Investment Division) and a declining seven year Withdrawal Charge on each purchase payment. If You choose the Annual Step-Up Death Benefit or the greater of Annual Step-Up or 5% Annual Increase Death Benefit, the Separate Account charge would range from 1.45% to 1.60% or, in the case of each American Funds(R) Investment Division, 1.70% to 1.85%. If You choose the optional Earnings Preservation Benefit and either of these optional death benefits, the Separate Account charge would range from 1.70% to 1.85% or, in the case of each American Funds(R) Investment Division, 1.95% to 2.10%. THE BONUS CLASS (MAY ALSO BE KNOWN AS THE "B PLUS CLASS" IN OUR SALES LITERATURE AND ADVERTISING) You may purchase a Contract in the Bonus Class before your 81st birthday. If there are joint Contract Owners, the age of the oldest joint Contract Owner will be used to determine eligibility. Under the Bonus Class Deferred Annuity, we currently credit 3% to each of your purchase payments made during the first Contract Year. The Bonus will be applied on a pro-rata basis to the Fixed Account, if available, and the Investment Divisions of the Separate Account based upon your allocation for your purchase payments. The Bonus Class has a 1.70% annual Separate Account charge (1.95% in the case of each American Funds(R) Investment Division) and a declining seven year Withdrawal Charge on each purchase payment. If You choose the Annual Step-Up Death Benefit or the Greater of Annual Step-Up or 5% Annual Increase Death Benefit, the Separate Account charge would range from 1.90% to 2.05% or, in the case of each American Funds(R) Investment Division, 2.15% to 2.30%. If You choose the optional Earnings Preservation Benefit and either of these optional death benefits, the Separate Account charge would range from 2.15% to 2.30% or, in the case of each American Funds(R) Investment Division, 2.40% to 2.55%. After You have held the Contract for seven years, the Separate Account charge declines 0.45% to 1.25% with the Basic Death Benefit (1.50% in the case of each American Funds(R) Investment Division). After You have held the Contract for seven years, the Separate Account charge declines to 1.45% and 1.60%, respectively, for the Annual Step-Up Death Benefit and for the Greater of Annual Step-Up or 5% Annual Increase Death Benefit, or, in the case of each American Funds(R) Investment Division, 1.70% to 1.85%. Investment returns for the Bonus Class Deferred Annuity may be lower than those for the B Class Deferred Annuity if Separate Account investment performance is not sufficiently high to offset increased Separate Account charges for the Bonus Class Deferred Annuity. (If the Fixed Account is available, Fixed Account rates for the Bonus Class may be lower than those declared for the other classes.) The Bonus Class Deferred Annuity may not be appropriate with certain qualified plans where there may be minimal initial purchase payments submitted in the first year. 23 Therefore, the choice between the Bonus Class and the B Class Deferred Annuity is a judgment as to whether a higher Separate Account charge with a 3% credit is more advantageous than a lower Separate Account charge without the 3% credit. There is no guarantee that the Bonus Class Deferred Annuity will have higher returns than the B Class Deferred Annuity, the other classes of the Deferred Annuity, similar Contracts without a bonus or any other investment. The Bonus will be credited only to purchase payments made during the first Contract Year, while the additional Separate Account charge of 0.45% for the Bonus will be assessed on all amounts in the Separate Account for the first seven years. The following table demonstrates hypothetical investment returns for a Deferred Annuity with the 3% credit compared to a Contract without the Bonus. Both Deferred Annuities are assumed to have no optional benefits. The figures are based on: a) a $50,000 initial purchase payment with no other purchase payments; b) deduction of the Separate Account charge at a rate of 1.70% (1.25% in years 8-10) (Bonus Class Deferred Annuity) and 1.25% (B Class Deferred Annuity); and c) an assumed investment return for the investment choices before Separate Account charges of 8.05% for each of 10 years.
-------------------------------------------------------------------------------- Bonus Class B Class (1.70% Separate Account (1.25% Separate Account Contract Year charge for first 7 years) charge all years) -------------------------------------------------------------------------------- 1 $54,770 $53,400 -------------------------------------------------------------------------------- 2 $58,248 $57,031 -------------------------------------------------------------------------------- 3 $61,947 $60,909 -------------------------------------------------------------------------------- 4 $65,881 $65,051 -------------------------------------------------------------------------------- 5 $70,064 $69,475 -------------------------------------------------------------------------------- 6 $74,513 $74,199 -------------------------------------------------------------------------------- 7 $79,245 $79,244 -------------------------------------------------------------------------------- 8 $84,633 $84,633 -------------------------------------------------------------------------------- 9 $90,388 $90,388 -------------------------------------------------------------------------------- 10 $96,535 $96,534 --------------------------------------------------------------------------------
Generally, the higher the rate of return, the more advantageous the Bonus Class is. The table above assumes no additional purchase payments are made after the first Contract Anniversary. If additional purchase payments were made to the Deferred Annuity, the rate of return would have to be higher in order to "break-even" by the end of the seventh year or the break-even point would otherwise occur sooner. The break-even point is when the Account Balance of a Bonus Class Contract will equal the Account Balance of a B Class Contract, assuming equal initial purchase payments and a level rate of return, and thereafter, the Account Balance would be higher in a B Class Contract. The decision to elect the Bonus Class is irrevocable. We may make a profit from the additional Separate Account charge. The Enhanced Dollar Cost Averaging Program is not available with the Bonus Class. The guaranteed annuity rates for the Bonus Class are the same as those for the other classes of the Deferred Annuity. Current rates for the Bonus Class may be lower than those for the other classes of the Deferred Annuity. Any 3% credit does not become yours until after the "free look" period; we retrieve it if You exercise the "free look". Your exercise of the "free look" is the only circumstance under which the 3% credit will be retrieved (commonly called "recapture"). We then will refund either your purchase payments or Account Balance, depending upon your state law. In the case of a refund of Account Balance, the refunded amount will include any investment performance on amounts attributable to the 3% credit. If there have been any losses from the investment performance on the amounts attributable to the 3% credit, we will bear that loss. 24 If we agree to permit your Beneficiary to hold the Traditional IRA Deferred Annuity in your name after your death for his/her benefit, a new Contract will be issued in order to facilitate the distribution of payments. The new Contract will be issued in the same Contract class, except, if You had a Bonus Class Deferred Annuity, the Contract will be issued as a B Class Deferred Annuity. C CLASS The C Class has a 1.65% annual Separate Account charge (1.90% in the case of each American Funds(R) Investment Division) and no Withdrawal Charge. If You choose the Annual Step-Up Death Benefit or the Greater of Annual Step-Up or 5% Annual Increase Death Benefit, the Separate Account charge would range from 1.85% to 2.00% or, in the case of each American Funds(R) Investment Division, 2.10% to 2.25%. If You choose the optional Earnings Preservation Benefit and either of these optional death benefits, the Separate Account charge would range from 2.10% to 2.25% or, in the case of each American Funds(R) Investment Division, 2.35% to 2.50%. The Fixed Account, the Enhanced Dollar Cost Averaging Program, Equity Generator(R) and the Allocator/SM/ are not available in the C Class Deferred Annuity purchased after April 30, 2003. A money market Investment Division is available in the C Class Deferred Annuity purchased after April 30, 2003. L CLASS The L Class has a 1.50% annual Separate Account charge (1.75% in the case of each American Funds(R) Investment Division) and a declining three year Withdrawal Charge on each purchase payment. If You choose the Annual Step-Up Death Benefit or the Greater of Annual Step-Up or 5% Annual Increase Death Benefit, the Separate Account charge would range from 1.70% to 1.85% or, in the case of each American Funds(R) Investment Division, 1.95% to 2.10%. If You choose the optional Earnings Preservation Benefit and either of these optional death benefits, the Separate Account charge would range from 1.95% to 2.10% or, in the case of each American Funds(R) Investment Division, 2.20% to 2.35%. If the Fixed Account is available, Fixed Account rates for the L Class may be lower than those declared for the other classes. 25 YOUR INVESTMENT CHOICES The Metropolitan Fund, the Met Investors Fund and the American Funds(R) and each of their Portfolios are more fully described in their respective prospectuses and SAIs. The SAIs are available upon your request. You should read these prospectuses carefully before making purchase payments to the Investment Divisions. The classes of shares available to the Deferred Annuities, Class B of the Metropolitan Fund, Class B of the Met Investors Fund (except for the American Funds(R) Balanced Allocation, American Funds(R) Growth Allocation and American Funds(R) Moderate Allocation Portfolios which are Class C), and Class 2 of the American Funds(R), each impose a 12b-1 Plan fee. The investment choices are listed in alphabetical order below (based upon the Portfolio's legal names). (See "Appendix C -- Portfolio Legal and Marketing Names".) The Investment Divisions generally offer the opportunity for greater returns over the long term than our Fixed Account. You should understand that each Portfolio incurs its own risk which will be dependent upon the investment decisions made by the respective Portfolio's investment manager. Furthermore, the name of a Portfolio may not be indicative of all the investments held by the Portfolio. The degree of investment risk You assume will depend on the Investment Divisions You choose. While the Investment Divisions and their comparably named Portfolios may have names, investment objectives and management which are identical or similar to publicly available mutual funds, these Investment Divisions and Portfolios are not those mutual funds. The Portfolios most likely will not have the same performance experience as any publicly available mutual fund. Since your Account Balance or income payments are subject to the risks associated with investing in stocks and bonds, your Account Balance or variable income payments based on amounts allocated to the Investment Divisions may go down as well as up. Each Portfolio has different investment objectives and risks. The Portfolio prospectuses contain more detailed information on each Portfolio's investment strategy, investment managers and its fees. You may obtain a Portfolio prospectus by calling 800-638-7732 or through your registered representative. We do not guarantee the investment results of the Portfolios. The current Portfolios are listed below, along with their investment manager and any sub-investment manager.
PORTFOLIO INVESTMENT OBJECTIVE INVESTMENT MANAGER/SUB-INVESTMENT MANAGER --------- -------------------- ----------------------------------------- AMERICAN FUNDS(R) ----------------- AMERICAN FUNDS BOND FUND SEEKS AS HIGH A LEVEL OF CURRENT INCOME AS IS CAPITAL RESEARCH AND MANAGEMENT COMPANY CONSISTENT WITH THE PRESERVATION OF CAPITAL. AMERICAN FUNDS GLOBAL SMALL SEEKS LONG-TERM GROWTH OF CAPITAL. CAPITAL RESEARCH AND MANAGEMENT COMPANY CAPITALIZATION FUND AMERICAN FUNDS GROWTH FUND SEEKS GROWTH OF CAPITAL. CAPITAL RESEARCH AND MANAGEMENT COMPANY AMERICAN FUNDS GROWTH-INCOME SEEKS LONG-TERM GROWTH OF CAPITAL AND INCOME. CAPITAL RESEARCH AND MANAGEMENT COMPANY FUND MET INVESTORS FUND ------------------ ALLIANCEBERNSTEIN GLOBAL SEEKS CAPITAL APPRECIATION AND CURRENT INCOME. METLIFE ADVISERS, LLC DYNAMIC ALLOCATION PORTFOLIO SUB-INVESTMENT MANAGER: ALLIANCEBERNSTEIN L.P. AMERICAN FUNDS(R) BALANCED SEEKS A BALANCE BETWEEN A HIGH LEVEL OF METLIFE ADVISERS, LLC ALLOCATION PORTFOLIO CURRENT INCOME AND GROWTH OF CAPITAL, WITH A GREATER EMPHASIS ON GROWTH OF CAPITAL. AMERICAN FUNDS(R) GROWTH SEEKS GROWTH OF CAPITAL. METLIFE ADVISERS, LLC ALLOCATION PORTFOLIO AMERICAN FUNDS(R) MODERATE SEEKS A HIGH TOTAL RETURN IN THE FORM OF INCOME METLIFE ADVISERS, LLC ALLOCATION PORTFOLIO AND GROWTH OF CAPITAL, WITH A GREATER EMPHASIS ON INCOME. AQR GLOBAL RISK BALANCED SEEKS TOTAL RETURN. METLIFE ADVISERS, LLC PORTFOLIO SUB-INVESTMENT MANAGER: AQR CAPITAL MANAGEMENT, LLC BLACKROCK GLOBAL TACTICAL SEEKS CAPITAL APPRECIATION AND CURRENT INCOME. METLIFE ADVISERS, LLC STRATEGIES PORTFOLIO SUB-INVESTMENT MANAGER: BLACKROCK FINANCIAL MANAGEMENT, INC.
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INVESTMENT MANAGER/ PORTFOLIO INVESTMENT OBJECTIVE SUB-INVESTMENT MANAGER --------- -------------------- ---------------------- BLACKROCK LARGE CAP CORE SEEKS LONG-TERM CAPITAL GROWTH. METLIFE ADVISERS, LLC PORTFOLIO SUB-INVESTMENT MANAGER: BLACKROCK ADVISORS, LLC CLARION GLOBAL REAL ESTATE SEEKS TOTAL RETURN THROUGH INVESTMENT IN REAL METLIFE ADVISERS, LLC PORTFOLIO ESTATE SECURITIES, EMPHASIZING BOTH CAPITAL SUB-INVESTMENT MANAGER: CBRE CLARION APPRECIATION AND CURRENT INCOME. SECURITIES LLC CLEARBRIDGE AGGRESSIVE GROWTH SEEKS CAPITAL APPRECIATION. METLIFE ADVISERS, LLC PORTFOLIO SUB-INVESTMENT MANAGER: CLEARBRIDGE INVESTMENTS, LLC HARRIS OAKMARK INTERNATIONAL SEEKS LONG-TERM CAPITAL APPRECIATION. METLIFE ADVISERS, LLC PORTFOLIO SUB-INVESTMENT MANAGER: HARRIS ASSOCIATES L.P. INVESCO BALANCED-RISK SEEKS TOTAL RETURN. METLIFE ADVISERS, LLC ALLOCATION PORTFOLIO SUB-INVESTMENT MANAGER: INVESCO ADVISERS, INC. INVESCO SMALL CAP GROWTH SEEKS LONG-TERM GROWTH OF CAPITAL. METLIFE ADVISERS, LLC PORTFOLIO SUB-INVESTMENT MANAGER: INVESCO ADVISERS, INC. JANUS FORTY PORTFOLIO SEEKS CAPITAL APPRECIATION. METLIFE ADVISERS, LLC SUB-INVESTMENT MANAGER: JANUS CAPITAL MANAGEMENT LLC JPMORGAN GLOBAL ACTIVE SEEKS CAPITAL APPRECIATION AND CURRENT INCOME. METLIFE ADVISERS, LLC ALLOCATION PORTFOLIO SUB-INVESTMENT MANAGER: J.P. MORGAN INVESTMENT MANAGEMENT INC. LOOMIS SAYLES GLOBAL MARKETS SEEKS HIGH TOTAL INVESTMENT RETURN THROUGH A METLIFE ADVISERS, LLC PORTFOLIO COMBINATION OF CAPITAL APPRECIATION AND SUB-INVESTMENT MANAGER: LOOMIS, SAYLES & INCOME. COMPANY, L.P. LORD ABBETT BOND DEBENTURE SEEKS HIGH CURRENT INCOME AND THE OPPORTUNITY METLIFE ADVISERS, LLC PORTFOLIO FOR CAPITAL APPRECIATION TO PRODUCE A HIGH TOTAL SUB-INVESTMENT MANAGER: LORD, ABBETT & CO. RETURN. LLC LORD ABBETT MID CAP VALUE SEEKS CAPITAL APPRECIATION THROUGH METLIFE ADVISERS, LLC PORTFOLIO INVESTMENTS, PRIMARILY IN EQUITY SECURITIES, SUB-INVESTMENT MANAGER: LORD, ABBETT & CO. WHICH ARE BELIEVED TO BE UNDERVALUED IN THE LLC MARKETPLACE. MET/FRANKLIN LOW DURATION SEEKS A HIGH LEVEL OF CURRENT INCOME, WHILE METLIFE ADVISERS, LLC TOTAL RETURN PORTFOLIO SEEKING PRESERVATION OF SHAREHOLDERS' CAPITAL. SUB-INVESTMENT MANAGER: FRANKLIN ADVISERS, INC. METLIFE AGGRESSIVE STRATEGY SEEKS GROWTH OF CAPITAL. METLIFE ADVISERS, LLC PORTFOLIO METLIFE BALANCED PLUS SEEKS A BALANCE BETWEEN A HIGH LEVEL OF METLIFE ADVISERS, LLC PORTFOLIO CURRENT INCOME AND GROWTH OF CAPITAL, WITH A SUB-INVESTMENT MANAGER: PACIFIC INVESTMENT GREATER EMPHASIS ON GROWTH OF CAPITAL. MANAGEMENT COMPANY LLC METLIFE GROWTH STRATEGY SEEKS TO PROVIDE GROWTH OF CAPITAL. METLIFE ADVISERS, LLC PORTFOLIO METLIFE MULTI-INDEX TARGETED SEEKS A BALANCE BETWEEN GROWTH OF CAPITAL METLIFE ADVISERS, LLC RISK PORTFOLIO AND CURRENT INCOME, WITH A GREATER EMPHASIS SUB-INVESTMENT MANAGER: METLIFE INVESTMENT ON GROWTH OF CAPITAL. MANAGEMENT, LLC MFS(R) RESEARCH INTERNATIONAL SEEKS CAPITAL APPRECIATION. METLIFE ADVISERS, LLC PORTFOLIO SUB-INVESTMENT MANAGER: MASSACHUSETTS FINANCIAL SERVICES COMPANY MORGAN STANLEY MID CAP GROWTH SEEKS CAPITAL APPRECIATION. METLIFE ADVISERS, LLC PORTFOLIO SUB-INVESTMENT MANAGER: MORGAN STANLEY INVESTMENT MANAGEMENT INC. OPPENHEIMER GLOBAL EQUITY SEEKS CAPITAL APPRECIATION. METLIFE ADVISERS, LLC PORTFOLIO -- CLASS B SUB-INVESTMENT MANAGER: OPPENHEIMER FUNDS, INC. PIMCO INFLATION PROTECTED SEEKS MAXIMUM REAL RETURN, CONSISTENT WITH METLIFE ADVISERS, LLC BOND PORTFOLIO PRESERVATION OF CAPITAL AND PRUDENT SUB-INVESTMENT MANAGER: PACIFIC INVESTMENT INVESTMENT MANAGEMENT. MANAGEMENT COMPANY LLC
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INVESTMENT MANAGER/ PORTFOLIO INVESTMENT OBJECTIVE SUB-INVESTMENT MANAGER --------- -------------------- ---------------------- PIMCO TOTAL RETURN PORTFOLIO SEEKS MAXIMUM TOTAL RETURN, CONSISTENT WITH METLIFE ADVISERS, LLC THE PRESERVATION OF CAPITAL AND PRUDENT SUB-INVESTMENT MANAGER: PACIFIC INVESTMENT INVESTMENT MANAGEMENT. MANAGEMENT COMPANY LLC PYRAMIS(R) GOVERNMENT INCOME SEEKS A HIGH LEVEL OF CURRENT INCOME, METLIFE ADVISERS, LLC PORTFOLIO CONSISTENT WITH PRESERVATION OF PRINCIPAL. SUB-INVESTMENT MANAGER: PYRAMIS GLOBAL ADVISORS, LLC PYRAMIS(R) MANAGED RISK SEEKS TOTAL RETURN. METLIFE ADVISERS, LLC PORTFOLIO SUB-INVESTMENT MANAGER: PYRAMIS GLOBAL ADVISORS, LLC SCHRODERS GLOBAL MULTI-ASSET SEEKS CAPITAL APPRECIATION AND CURRENT INCOME. METLIFE ADVISERS, LLC PORTFOLIO SUB-INVESTMENT MANAGER: SCHRODER INVESTMENT MANAGEMENT NORTH AMERICA INC. SSGA GROWTH AND INCOME ETF SEEKS GROWTH OF CAPITAL AND INCOME. METLIFE ADVISERS, LLC PORTFOLIO SUB-INVESTMENT MANAGER: SSGA FUNDS MANAGEMENT, INC. SSGA GROWTH ETF PORTFOLIO SEEKS GROWTH OF CAPITAL. METLIFE ADVISERS, LLC SUB-INVESTMENT MANAGER: SSGA FUNDS MANAGEMENT, INC. T. ROWE PRICE MID CAP GROWTH SEEKS LONG-TERM GROWTH OF CAPITAL. METLIFE ADVISERS, LLC PORTFOLIO SUB-INVESTMENT MANAGER: T. ROWE PRICE ASSOCIATES, INC. METROPOLITAN FUND ----------------- BAILLIE GIFFORD INTERNATIONAL SEEKS LONG-TERM GROWTH OF CAPITAL. METLIFE ADVISERS, LLC STOCK PORTFOLIO SUB-INVESTMENT MANAGER: BAILLIE GIFFORD OVERSEAS LIMITED BARCLAYS AGGREGATE BOND INDEX SEEKS TO TRACK THE PERFORMANCE OF THE METLIFE ADVISERS, LLC PORTFOLIO BARCLAYS U.S. AGGREGATE BOND INDEX. SUB-INVESTMENT MANAGER: METLIFE INVESTMENT MANAGEMENT, LLC BLACKROCK BOND INCOME SEEKS A COMPETITIVE TOTAL RETURN PRIMARILY METLIFE ADVISERS, LLC PORTFOLIO FROM INVESTING IN FIXED-INCOME SECURITIES. SUB-INVESTMENT MANAGER: BLACKROCK ADVISORS, LLC BLACKROCK CAPITAL SEEKS LONG-TERM GROWTH OF CAPITAL. METLIFE ADVISERS, LLC APPRECIATION PORTFOLIO SUB-INVESTMENT MANAGER: BLACKROCK ADVISORS, LLC BLACKROCK DIVERSIFIED SEEKS HIGH TOTAL RETURN WHILE ATTEMPTING TO METLIFE ADVISERS, LLC PORTFOLIO LIMIT INVESTMENT RISK AND PRESERVE CAPITAL. SUB-INVESTMENT MANAGER: BLACKROCK ADVISORS, LLC BLACKROCK LARGE CAP VALUE SEEKS LONG-TERM GROWTH OF CAPITAL. METLIFE ADVISERS, LLC PORTFOLIO SUB-INVESTMENT MANAGER: BLACKROCK ADVISORS, LLC BLACKROCK MONEY MARKET SEEKS A HIGH LEVEL OF CURRENT INCOME METLIFE ADVISERS, LLC PORTFOLIO CONSISTENT WITH PRESERVATION OF CAPITAL. SUB-INVESTMENT MANAGER: BLACKROCK ADVISORS, LLC DAVIS VENTURE VALUE PORTFOLIO SEEKS GROWTH OF CAPITAL. METLIFE ADVISERS, LLC SUB-INVESTMENT MANAGER: DAVIS SELECTED ADVISERS, L.P. FRONTIER MID CAP GROWTH SEEKS MAXIMUM CAPITAL APPRECIATION. METLIFE ADVISERS, LLC PORTFOLIO SUB-INVESTMENT MANAGER: FRONTIER CAPITAL MANAGEMENT COMPANY, LLC JENNISON GROWTH PORTFOLIO SEEKS LONG-TERM GROWTH OF CAPITAL. METLIFE ADVISERS, LLC SUB-INVESTMENT MANAGER: JENNISON ASSOCIATES LLC LOOMIS SAYLES SMALL CAP CORE SEEKS LONG-TERM CAPITAL GROWTH FROM METLIFE ADVISERS, LLC PORTFOLIO INVESTMENTS IN COMMON STOCKS OR OTHER EQUITY SUB-INVESTMENT MANAGER: LOOMIS, SAYLES & SECURITIES. COMPANY, L.P.
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INVESTMENT MANAGER/ PORTFOLIO INVESTMENT OBJECTIVE SUB-INVESTMENT MANAGER --------- -------------------- ---------------------- LOOMIS SAYLES SMALL CAP SEEKS LONG-TERM CAPITAL GROWTH. METLIFE ADVISERS, LLC GROWTH PORTFOLIO SUB-INVESTMENT MANAGER: LOOMIS, SAYLES & COMPANY, L.P. MET/ARTISAN MID CAP VALUE SEEKS LONG-TERM CAPITAL GROWTH. METLIFE ADVISERS, LLC PORTFOLIO SUB-INVESTMENT MANAGER: ARTISAN PARTNERS LIMITED PARTNERSHIP METLIFE CONSERVATIVE SEEKS A HIGH LEVEL OF CURRENT INCOME, WITH METLIFE ADVISERS, LLC ALLOCATION PORTFOLIO GROWTH OF CAPITAL AS A SECONDARY OBJECTIVE. METLIFE CONSERVATIVE TO SEEKS HIGH TOTAL RETURN IN THE FORM OF INCOME METLIFE ADVISERS, LLC MODERATE ALLOCATION PORTFOLIO AND GROWTH OF CAPITAL, WITH A GREATER EMPHASIS ON INCOME. METLIFE MID CAP STOCK INDEX SEEKS TO TRACK THE PERFORMANCE OF THE METLIFE ADVISERS, LLC PORTFOLIO STANDARD & POOR'S MIDCAP 400(R) COMPOSITE SUB-INVESTMENT MANAGER: METLIFE INVESTMENT STOCK PRICE INDEX. MANAGEMENT, LLC METLIFE MODERATE ALLOCATION SEEKS A BALANCE BETWEEN A HIGH LEVEL OF METLIFE ADVISERS, LLC PORTFOLIO CURRENT INCOME AND GROWTH OF CAPITAL, WITH A GREATER EMPHASIS ON GROWTH OF CAPITAL. METLIFE MODERATE TO SEEKS GROWTH OF CAPITAL. METLIFE ADVISERS, LLC AGGRESSIVE ALLOCATION PORTFOLIO METLIFE STOCK INDEX PORTFOLIO SEEKS TO TRACK THE PERFORMANCE OF THE METLIFE ADVISERS, LLC STANDARD & POOR'S 500(R) COMPOSITE STOCK SUB-INVESTMENT MANAGER: METLIFE INVESTMENT PRICE INDEX. MANAGEMENT, LLC MFS(R) TOTAL RETURN PORTFOLIO SEEKS A FAVORABLE TOTAL RETURN THROUGH METLIFE ADVISERS, LLC INVESTMENT IN A DIVERSIFIED PORTFOLIO. SUB-INVESTMENT MANAGER: MASSACHUSETTS FINANCIAL SERVICES COMPANY MFS(R) VALUE PORTFOLIO SEEKS CAPITAL APPRECIATION. METLIFE ADVISERS, LLC SUB-INVESTMENT MANAGER: MASSACHUSETTS FINANCIAL SERVICES COMPANY MSCI EAFE(R) INDEX PORTFOLIO SEEKS TO TRACK THE PERFORMANCE OF THE MSCI METLIFE ADVISERS, LLC EAFE(R) INDEX. SUB-INVESTMENT MANAGER: METLIFE INVESTMENT MANAGEMENT, LLC NEUBERGER BERMAN GENESIS SEEKS HIGH TOTAL RETURN, CONSISTING PRINCIPALLY METLIFE ADVISERS, LLC PORTFOLIO OF CAPITAL APPRECIATION. SUB-INVESTMENT MANAGER: NEUBERGER BERMAN MANAGEMENT LLC RUSSELL 2000(R) INDEX SEEKS TO TRACK THE PERFORMANCE OF THE RUSSELL METLIFE ADVISERS, LLC PORTFOLIO 2000(R) INDEX. SUB-INVESTMENT MANAGER: METLIFE INVESTMENT MANAGEMENT, LLC T. ROWE PRICE LARGE CAP SEEKS LONG-TERM GROWTH OF CAPITAL AND, METLIFE ADVISERS, LLC GROWTH PORTFOLIO SECONDARILY, DIVIDEND INCOME. SUB-INVESTMENT MANAGER: T. ROWE PRICE ASSOCIATES, INC. T. ROWE PRICE SMALL CAP SEEKS LONG-TERM CAPITAL GROWTH. METLIFE ADVISERS, LLC GROWTH PORTFOLIO SUB-INVESTMENT MANAGER: T. ROWE PRICE ASSOCIATES, INC. WESTERN ASSET MANAGEMENT SEEKS TO MAXIMIZE TOTAL RETURN CONSISTENT METLIFE ADVISERS, LLC STRATEGIC BOND OPPORTUNITIES WITH PRESERVATION OF CAPITAL. SUB-INVESTMENT MANAGER: WESTERN ASSET PORTFOLIO MANAGEMENT COMPANY WESTERN ASSET MANAGEMENT U.S. SEEKS TO MAXIMIZE TOTAL RETURN CONSISTENT METLIFE ADVISERS, LLC GOVERNMENT PORTFOLIO WITH PRESERVATION OF CAPITAL AND MAINTENANCE SUB-INVESTMENT MANAGER: WESTERN ASSET OF LIQUIDITY. MANAGEMENT COMPANY
Some of the investment choices may not be available under the terms of your Deferred Annuity. Your Contract or other correspondence we provide You will indicate the Investment Divisions that are available to You. The BlackRock Money Market Division is only available in the C Class Deferred Annuity purchased after April 30, 2003, and Deferred Annuities issued in New York State and Washington State with the GMIB I, the GMIB II, the GMIB Plus I, the GMIB Plus II, the GWB I, the Enhanced GWB, the LWG I, the LWG II or the EDB I. Your investment choices may be limited because: .. We have restricted the available Investment Divisions. .. Some of the Investment Divisions are not approved in your state. 29 .. Your employer, association or other group Contract Owner limits the available Investment Divisions. INVESTMENT CHOICES WHICH ARE FUND OF FUNDS The following portfolios available within the Metropolitan Series Fund and Met Investors Series Trust, are "fund of funds": MetLife Conservative Allocation Portfolio MetLife Conservative to Moderate Allocation Portfolio MetLife Moderate Allocation Portfolio MetLife Moderate to Aggressive Allocation Portfolio American Funds(R) Balanced Allocation Portfolio American Funds(R) Growth Allocation Portfolio American Funds(R) Moderate Allocation Portfolio MetLife Aggressive Strategy Portfolio MetLife Growth Strategy SSgA Growth ETF Portfolio SSgA Growth and Income ETF Portfolio MetLife Balanced Plus Portfolio BlackRock Global Tactical Strategies Portfolio MetLife Multi-Index Targeted Risk Portfolio Pyramis(R) Managed Risk Portfolio "Fund of funds" Portfolios invest substantially all of their assets in other portfolios or, with respect to the SSgA Growth ETF Portfolio and the SSgA Growth and Income ETF Portfolio, other exchange-traded funds ("Underlying ETFs"). Therefore, each of these Portfolios will bear its pro rata share of the fees and expenses incurred by the underlying portfolios or Underlying ETFs in which it invests in addition to its own management fees and expenses. This will reduce the investment return of each of the fund of funds Portfolios. The expense levels will vary over time, depending on the mix of underlying portfolios or Underlying ETFs in which the fund of funds Portfolio invests. You may be able to realize lower aggregate expenses by investing directly in the underlying portfolios and Underlying ETFs instead of investing in the fund of funds Portfolios, if such underlying portfolios or Underlying ETFs are available under the Contract. However, no Underlying ETFs and only some of the underlying portfolios are available under the Contract. INVESTMENT ALLOCATION RESTRICTIONS FOR CERTAIN OPTIONAL BENEFITS If You elect the LWG II, the GMIB Plus II or the EDB I, You must comply with certain investment allocation restrictions. Specifically, You must allocate according to either Option (A) or Option (B) (the "Option (B) Investment Allocation Restrictions") below. The Enhanced Dollar Cost Averaging Program is available in either Option (A) or Option (B). Only certain of the automated investment strategies are available under Option (A) and Option (B). (See "Optional Automated Investment Strategies and Optional Enhanced Dollar Cost Averaging Program" in this section and the chart titled "Enhanced Dollar Cost Averaging ("EDCA") Program and Automated Investment Strategies"). (A)You must allocate: . 100% of your purchase payments or Account Value among the AllianceBernstein Global Dynamic Allocation Investment Division, American Funds(R) Balanced Allocation Investment Division, American Funds(R) Moderate Allocation Investment Division, AQR Global Risk Balanced Investment Division, BlackRock Global Tactical Strategies Investment Division, Invesco Balanced-Risk Allocation Investment Division, JPMorgan Global Active Allocation Investment Division, MetLife Balanced Plus Investment Division, MetLife Conservative Allocation Investment Division, MetLife Conservative to Moderate Allocation Investment Division, MetLife Moderate Allocation Investment Division, MetLife Multi-Index Targeted Risk Investment Division, Pyramis(R) Managed Risk 30 Investment Division, Schroders Global Multi-Asset Investment Division, SSgA Growth and Income ETF Investment Division, and/or the Fixed Account and the BlackRock Money Market Investment Division (where available) (you may also allocate purchase payments to the EDCA program, provided that your destination portfolios are one or more of the above listed Investment Divisions; you may not allocate purchase payments to an automated investment strategy). OR (B)You must allocate: . AT LEAST 30% of purchase payments or Account Balance to Platform 1 investment choices and/or to the Fixed Account and the BlackRock Money Market Investment Division (where available); . UP TO 70% of purchase payments or Account Balance to Platform 2 investment choices; . UP TO 15% of purchase payments or Account Balance to Platform 3 investment choices; and . UP TO 15% of purchase payments or Account Balance to Platform 4 investment choices. SUBSEQUENT PURCHASE PAYMENTS Subsequent purchase payments must be allocated in accordance with the above limitations. When allocating according to Option (B) above, it is important to remember that the entire Account Balance will be immediately reallocated according to any new allocation instructions that accompany a subsequent purchase payment if the new allocation instructions differ from those previously received on the Contract. Allocating according to Option (B) does not permit You to specify different allocations for individual purchase payments. Due to the rebalancing and reallocation requirements of Option B, the entire Account Balance will be immediately allocated according to the most recently provided allocation instructions. EXAMPLE: Your Account Balance is $100,000 and You have allocated 70% to the American Funds Growth Investment Division and 30% to the PIMCO Total Return Investment Division using Option (B). You make a subsequent purchase payment of $5,000 and provide instructions to allocate that payment 100% to the BlackRock Bond Income Investment Division. As a result, your entire Account Balance of $105,000 will then be reallocated to the BlackRock Bond Income Investment Division. The investment choices in each platform are as follows: PLATFORM 1 ---------- AMERICAN FUNDS BOND BARCLAYS AGGREGATE BOND INDEX BLACKROCK BOND INCOME MET/FRANKLIN LOW DURATION TOTAL RETURN PIMCO INFLATION PROTECTION BOND PIMCO TOTAL RETURN PYRAMIS(R) GOVERNMENT INCOME WESTERN ASSET MANAGEMENT U.S. GOVERNMENT PLATFORM 2 ---------- ALLIANCEBERNSTEIN GLOBAL DYNAMIC ALLOCATION LOOMIS SAYLES GLOBAL MARKETS AMERICAN FUNDS GROWTH LORD ABBETT BOND DEBENTURE AMERICAN FUNDS GROWTH-INCOME METLIFE AGGRESSIVE STRATEGY AQR GLOBAL RISK BALANCED METLIFE BALANCED PLUS BAILLIE GIFFORD INTERNATIONAL STOCK METLIFE MULTI-INDEX TARGETED RISK
31 PLATFORM 2 ---------- BLACKROCK CAPITAL APPRECIATION METLIFE STOCK INDEX BLACKROCK DIVERSIFIED MFS(R) RESEARCH INTERNATIONAL BLACKROCK GLOBAL TACTICAL STRATEGIES MFS(R) TOTAL RETURN BLACKROCK LARGE CAP CORE MFS(R) VALUE BLACKROCK LARGE CAP VALUE MSCI EAFE(R) INDEX CLEARBRIDGE AGGRESSIVE GROWTH OPPENHEIMER GLOBAL EQUITY DAVIS VENTURE VALUE PYRAMIS(R) MANAGED RISK HARRIS OAKMARK INTERNATIONAL SCHRODERS GLOBAL MULTI-ASSET INVESCO BALANCED-RISK ALLOCATION T. ROWE PRICE LARGE CAP GROWTH JANUS FORTY WESTERN ASSET MANAGEMENT STRATEGIC BOND JENNISON GROWTH OPPORTUNITIES JPMORGAN GLOBAL ACTIVE ALLOCATION PLATFORM 3 ---------- FRONTIER MID CAP GROWTH LORD ABBETT MID CAP VALUE MET/ARTISAN MID CAP VALUE METLIFE MID CAP STOCK INDEX MORGAN STANLEY MID CAP GROWTH T. ROWE PRICE MID CAP GROWTH PLATFORM 4 ---------- AMERICAN FUNDS GLOBAL SMALL CAPITALIZATION CLARION GLOBAL REAL ESTATE INVESCO SMALL CAP GROWTH LOOMIS SAYLES SMALL CAP CORE LOOMIS SAYLES SMALL CAP GROWTH NEUBERGER BERMAN GENESIS RUSSELL 2000(R) INDEX T. ROWE PRICE SMALL CAP GROWTH
For Contracts for which applications and necessary information are received at your Administrative Office prior to May 4, 2009, the following Investment Divisions are also available under Option (A): American Funds Growth Allocation Investment Division, MetLife Growth Strategy Investment Division, MetLife Moderate to Aggressive Allocation Investment Division and the SSgA Growth ETF Investment Division. In addition, the following investment allocation restrictions apply under Option (B): You must allocate at least 15% of purchase payments or Account Balance to Platform 1 investment choices and/or the Fixed Account and the BlackRock Money Market Investment Division (where available) and You may allocate up to 85% of purchase payments or Account Balance to Platform 2 investment choices (the percentages for Platforms 3 and 4 are the same as those listed above). RESTRICTIONS ON SUBSEQUENT PURCHASE PAYMENTS -- GMIB I, GMIB PLUS I, GMIB PLUS II, GWB I, ENHANCED GWB, LWG I, LWG II, GMAB AND EDB I CURRENT RESTRICTIONS ON SUBSEQUENT PURCHASE PAYMENTS. If applicable in your state and except as noted below, until further notice we will not accept subsequent purchase payments from You after the close of the New York Stock Exchange on August 17, 2012 if your Contract was issued with one or more of the following optional benefits: GMIB I, GMIB Plus I, GMIB Plus II, GWB I, Enhanced GWB, LWG I, LWG II, GMAB and EDB I. You still will be permitted to transfer your Account Balance among the Portfolios available with your Contract and optional benefit. If subsequent purchase payments will be permitted in the future, we will notify You in writing, in advance of the date the restriction will end. 32 We will permit You to make a subsequent purchase payment when either of the following conditions apply to your Contract: (a) your Account Balance is below the minimum described in the "When We Can Cancel Your Deferred Annuity" section of the prospectus; or (b) the optional benefit charge is greater than your Account Balance. In addition, for Traditional IRA, Roth IRA, SEP and SIMPLE Contracts (including annuity contracts held under custodial IRAs), we will permit subsequent purchase payments up to your applicable annual IRS limits, provided the subsequent purchase payment is not in the form of a transfer or rollover from another tax-qualified plan or tax-qualified investment. If your Contract was issued in one of the following states, this restriction does NOT apply and You may continue to make subsequent purchase payments at this time: Connecticut, Florida, Massachusetts, Maryland, Minnesota, New Jersey, New York, Oregon, Pennsylvania, Texas, Utah, or Washington. OPTIONAL ENHANCED DOLLAR COST AVERAGING PROGRAM AND AUTOMATED INVESTMENT STRATEGIES. The Enhanced Dollar Cost Averaging Program is available in either Option (A) or Option (B). If You choose to allocate according to Option (B) above, and You choose to allocate a purchase payment to the Enhanced Dollar Cost Averaging Program, You must allocate the entire purchase payment to that program. Any transfer from an Enhanced Dollar Cost Averaging Program balance must be allocated in accordance with the limitations described above. In addition, if You made previous purchase payments before allocating a purchase payment to the Enhanced Dollar Cost Averaging Program, all transfers from the Enhanced Dollar Cost Averaging Program balance must be allocated to the same Investment Divisions as your most recent allocations for purchase payments. The Rebalancer is available in Option (A). Only the Conservative and Conservative to Moderate Models of Index Selector are available in Option (A). Index Selector is not available if You choose Option (B). YOUR PURCHASE PAYMENTS AND TRANSFER REQUESTS MUST BE ALLOCATED IN ACCORDANCE WITH THE ABOVE LIMITATIONS. WE WILL REJECT ANY PURCHASE PAYMENTS OR TRANSFER REQUESTS THAT DO NOT COMPLY WITH THE ABOVE LIMITATIONS. We determine whether an investment choice is classified as Platform 1, Platform 2, Platform 3 or Platform 4. We may determine or change the classification of an investment choice in the event that an investment choice is added, deleted, substituted, merged or otherwise reorganized. You will not be required to reallocate purchase payments or Account Balance that You allocated to an investment choice before we changed its classification, unless You make a new purchase payment or request a transfer among investment choices (other than pursuant to rebalancing and an Enhanced Dollar Cost Averaging Program in existence at the time the classification of the investment choice changed). If You make a new purchase payment or request a transfer among investment choices, You will be required to take the new classification into account in the allocation of your entire Account Balance. We will provide You with prior written notice of any changes in classification of investment choices. REBALANCING. If You choose to allocate according to Option (B) above, we will rebalance your Account Balance on a quarterly basis based on your most recent allocation of purchase payments that complies with the allocation limitations described above. We will also rebalance your Account Balance when we receive a subsequent purchase payment that is accompanied by new allocation instructions (in addition to the quarterly rebalancing). We will first rebalance your Account Balance on the date that is three months from the optional benefit issue date; provided however, if a quarterly rebalancing date occurs on the 29th, 30th or 31st of a month, we will instead rebalance on the first day of the following month. We will subsequently rebalance your Account Balance on each quarter thereafter on the same day. In addition, if a quarterly rebalancing date is not a business day, the reallocation will occur on the next business day. Withdrawals from the Contract will not result in rebalancing on the date of withdrawal. The rebalancing requirement described above does not apply if You choose to allocate according to Option (A) above. CHANGING ALLOCATION INSTRUCTIONS. You may change your purchase payment allocation instructions under Option (B) at anytime by providing notice to us at your Administrative Office, or any other method acceptable to us, provided that such instructions comply with the allocation limits described above. If You provide new allocation instructions for purchase payments and if these instructions conform to the allocation limits described under Option (B) above, then we will 33 rebalance in accordance with the revised allocation instructions. Any future purchase payment, Enhanced Dollar Cost Averaging Program balance transfer and quarterly rebalancing allocations will be automatically updated in accordance with these new instructions. TRANSFERS. Please note that any transfer request must result in an Account Balance that meets the allocation limits described above. Any transfer request will not cause your allocation instructions to change unless You provide us with separate instructions at the time of transfer. ADDITIONAL INFORMATION. The Investment Divisions buy and sell shares of corresponding mutual fund portfolios. These Portfolios, which are part of either the Metropolitan Fund, the Met Investors Fund or the American Funds(R), invest in stocks, bonds and other investments. All dividends declared by the Portfolios are earned by the Separate Account and are reinvested. Therefore, no dividends are distributed to You under the Deferred Annuities. You pay no transaction expenses (I.E., front-end or back-end sales load charges) as a result of the Separate Account's purchase or sale of these mutual fund shares. The Portfolios of the Metropolitan Fund and the Met Investors Fund are available by purchasing annuities and life insurance policies from MetLife or certain of its affiliated insurance companies and are never sold directly to the public. The American Funds(R) Portfolios are made available by the American Funds(R) only through various insurance company annuities and life insurance policies. The Metropolitan Fund, the Met Investors Fund and the American Funds(R) are each "series" type funds registered with the Securities and Exchange Commission as an "open-end management investment company" under the 1940 Act. A "series" fund means that each Portfolio is one of several available through the fund. The Portfolios of the Metropolitan Fund and the Met Investors Fund pay MetLife Advisers, LLC ("MetLife Advisers"), a MetLife affiliate, a monthly fee for its services as their investment manager. The Portfolios of the American Funds(R) pay Capital Research and Management Company a monthly fee for its services as their investment manager. These fees, as well as the operating expenses paid by each Portfolio, are described in the applicable prospectus and SAI for the Metropolitan Fund, the Met Investors Fund and the American Funds(R). In addition, the Metropolitan Fund and the Met Investors Fund prospectuses each discuss other separate accounts of MetLife and its affiliated insurance companies and certain qualified retirement plans that invest in the Metropolitan Fund or the Met Investors Fund. The risks of these arrangements are discussed in each Fund's prospectus. CERTAIN PAYMENTS WE RECEIVE WITH REGARD TO THE PORTFOLIOS. An investment manager (other than our affiliate MetLife Advisers, LLC) or sub-investment manager of a Portfolio, or its affiliates, may make payments to us and/or certain of our affiliates. These payments may be used for a variety of purposes, including payment of expenses for certain administrative, marketing, and support services with respect to the Deferred Annuities and, in the Company's role as an intermediary, with respect to the Portfolios. The Company and its affiliates may profit from these payments. These payments may be derived, in whole or in part, from the advisory fee deducted from Portfolio assets. Contract Owners, through their indirect investment in the Portfolios, bear the costs of these advisory fees (see the Portfolios' prospectuses for more information). The amount of the payments we receive is based on a percentage of assets of the Portfolios attributable to the Deferred Annuities and certain other variable insurance products that we and our affiliates issue. These percentages differ and some investment managers or sub-investment managers (or other affiliates) may pay us more than others. These percentages currently range up to 0.50%. Additionally, an investment manager (other than our affiliate MetLife Advisers, LLC) or sub-investment manager of a Portfolio or its affiliates may provide us with wholesaling services that assist in the distribution of the Contracts and may pay us and/or certain of our affiliates amounts to participate in sales meetings. These amounts may be significant and may provide the investment managers or sub-investment manager (or its affiliate) with increased access to persons involved in the distribution of the Contracts. 34 We and/or certain of our affiliated insurance companies have a joint ownership interest in our affiliated investment manager MetLife Advisers, LLC which is formed as a "limited liability company". Our ownership interests in MetLife Advisers, LLC entitle us to profit distributions if the adviser makes a profit with respect to the advisory fees it receives from the Portfolios. We will benefit accordingly from assets allocated to the Portfolios to the extent they result in profits to the adviser. (See the "Table of Expenses" for information on the investment management fees paid by the Portfolios and the Statement of Additional Information for the Portfolios for information on the investment management Fees paid by the investment managers to the sub-investment managers.) Certain Portfolios have adopted a Distribution Plan under Rule 12b-1 of the 1940 Act. A Portfolio's 12b-1 Plan, if any, is described in more detail in the prospectuses for the Portfolios. See the "Table of Expenses" and "Who Sells the Deferred Annuities". Any payments we receive pursuant to those 12b-1 Plans are paid to us or our distributor. Payments under a Portfolio's 12b-1 Plan decrease the Portfolios' investment returns. PORTFOLIO SELECTION. We select the Portfolios offered through this Contract based on a number of criteria, including asset class coverage, the strength of the investment manager's or sub-investment manager's reputation and tenure, brand recognition, performance, and the capability and qualification of each investment firm. Another factor we consider during the selection process is whether the Portfolios' investment manager or sub-investment manager is one of our affiliates or whether the Portfolio, its investment manager, its sub-investment manager(s), or an affiliate will make payments to us or our affiliates. In this regard, the profit distributions we receive from our affiliated investment advisers are a component of the total revenue that we consider in configuring the features and investment choices available in the variable insurance products that we and our affiliated insurance companies issue. Since we and our affiliated insurance companies may benefit more from the allocation of assets to portfolios advised by our affiliates than those that are not, we may be more inclined to offer portfolios advised by our affiliates in the variable insurance products we issue. We review the Portfolios periodically and may remove a Portfolio or limit its availability to new purchase payments and/or transfers of Account Balance if we determine that the Portfolio no longer meets one or more of the selection criteria, and/or if the Portfolio has not attracted significant allocations from Contract Owners. In some cases, we have included Portfolios based on recommendations made by selling firms. These selling firms may receive payments from the Portfolios they recommend and may benefit accordingly from the allocation of Account Balance to such Portfolios. WE DO NOT PROVIDE ANY INVESTMENT ADVICE AND DO NOT RECOMMEND OR ENDORSE ANY PARTICULAR PORTFOLIO. YOU BEAR THE RISK OF ANY DECLINE IN THE ACCOUNT BALANCE OF YOUR DEFERRED ANNUITY RESULTING FROM THE PERFORMANCE OF THE PORTFOLIO YOU HAVE CHOSEN. We make certain payments to American Funds Distributors, Inc., principal underwriter for the American Funds Insurance Series(R). (See "Who Sells the Deferred Annuities".) DEFERRED ANNUITIES This Prospectus describes the following Deferred Annuities under which You can accumulate money: . Non-Qualified . Traditional IRAs (Individual Retirement Annuities) . Roth IRAs (Roth Individual Retirement Annuities) . SEPs (Simplified Employee Pensions)* . SIMPLE IRAs (Savings Incentive Match Plan for Employees Individual Retirement Annuities)* * Only available in certain states and for new participants where the employer has previously purchased this Deferred Annuity. We will continue to accept additional purchase payments from participants who presently have this Contract. 35 THE DEFERRED ANNUITY AND YOUR RETIREMENT PLAN If You participate through a retirement plan or other group arrangement, the Deferred Annuity may provide that all or some of your rights or choices as described in this Prospectus are subject to the plan's terms. For example, limitations on your rights may apply to investment choices, purchase payments, withdrawals, transfers, the death benefit and pay-out options. We may rely on your employer's or plan administrator's statements to us as to the terms of the plan or your entitlement to any amounts. We are not a party to your employer's retirement plan. We will not be responsible for determining what your plan says. You should consult your Deferred Annuity Contract and plan document to see how You may be affected. OPTIONAL AUTOMATED INVESTMENT STRATEGIES AND OPTIONAL ENHANCED DOLLAR COST AVERAGING PROGRAM There are four optional automated investment strategies and an optional Enhanced Dollar Cost Averaging Program available to You. We created these investment strategies and program to help You manage your money. You decide if one is appropriate for You, based upon your risk tolerance and savings goals. Also, the strategies and program were designed to help You take advantage of the tax-deferred status of a Non-Qualified annuity. The Enhanced Dollar Cost Averaging Program is not available to the Bonus and the C Class Deferred Annuities or to purchase payments which consist of money exchanged from other MetLife or its affiliates' annuities. The Index Selector(R) is not available if You purchase the GMIB Plus I, the LWG I, the GMAB or choose Option (B) of the Investment Allocation Restrictions for the EDB I, GMIB Plus II or the LWG II. The Moderate to Aggressive and Aggressive Models are not available with the EDB I, the GMIB Plus II or the LWG II. The Equity Generator(R) and the Allocator/SM/ are not available in the C Class Deferred Annuity purchased after April 30, 2003, the Deferred Annuity issued in New York State and Washington State with the GMIB I, GMIB II, the GWB I, the Enhanced GWB or the LWG I or if You purchase the GMIB Plus I, the GMAB, the GMIB Plus II, LWG II, or the EDB I. The Rebalancer(R) is not available with the GMAB or if You have chosen Option (B) of the Investment Allocation Restrictions for the EDB I, the GMIB Plus II or the LWG II. The automated investment strategies and the Enhanced Dollar Cost Averaging Program are available to You without any additional charges. As with any investment program, none of them can guarantee a gain -- You can lose money. We may modify or terminate any of the strategies at any time. You may have only one strategy in effect at a time. You may have the Enhanced Dollar Cost Averaging Program and either the Index Selector(R) or the Rebalancer(R) in effect at the same time, but You may not have the Enhanced Dollar Cost Averaging Program in effect at the same time as the Equity Generator(R) or the Allocator./SM/ If you make a subsequent purchase payment while The Equity Generator(R), The Allocator/SM/ or the Enhanced Dollar Cost Averaging program is in effect, we will not allocate the subsequent purchase payment to The Equity Generator(R), The Allocator/SM/ or the Enhanced Dollar Cost Averaging program unless you tell us to do so. Instead, unless you previously provided different allocation instructions for future purchase payments or provide new allocation instructions with the payment, we will allocate the subsequent purchase payment directly to the same destination Investment Divisions you selected under The Equity Generator(R), The Allocator/SM/ or the Enhanced Dollar Cost Averaging program. Any purchase payments received after The Equity Generator(R), The Allocator/SM/ or Enhanced Dollar Cost Averaging program has ended will be allocated as described in "Purchase Payments--Allocation of Purchase Payments". ENHANCED DOLLAR COST AVERAGING PROGRAM: Each month, for a specified period, for example three, six or twelve months, a portion of a specified dollar amount of a purchase payment that You have agreed to allocate to the Enhanced Dollar Cost Averaging Program will be transferred from the program to any of the Investment Divisions You choose, unless your destination Investment Division is restricted because You have elected certain optional benefits or the Index Selector(R). While amounts are in the program, we may credit them with a higher rate than that declared for the Fixed Account in general. (Amounts in the Enhanced Dollar Cost Averaging Program are in our Fixed Account. For convenience, we may refer to it as "the program" or the "Enhanced Dollar Cost Averaging Program balance" to avoid confusion with the Fixed Account in general.) The transferred amount will be equal to the amount allocated to the program divided by the number 36 of months in the program. The interest attributable to your Enhanced Dollar Cost Averaging Program is transferred separately in the month after the last scheduled payment. Transfers from the Enhanced Dollar Cost Averaging Program to the Separate Account begin on any day we receive your payment and the Exchange is open, other than the 29th, 30th or 31st of the month. If purchase payments are received on those days, transfers begin on the first day of the next month. Subsequent transfers will be made on the same day in succeeding months. If the scheduled transfer date occurs on a date the Exchange is not open, the transfer will be deducted from the Enhanced Dollar Cost Averaging Program on the selected day but will be applied to the Investment Divisions on the next day the Exchange is open. Enhanced Dollar Cost Averaging Program interest will not be credited on the transferred amount between the selected day and the next day the Exchange is open. Transfers are made on a first-in-first-out basis. If a subsequent purchase payment is allocated to the program, that subsequent payment will receive the enhanced program interest rate in effect on that date. The allocation of a subsequent purchase payment to the program increases the dollar amount transferred each month. We determine the increase in your monthly dollar amount by dividing your new allocation by the number of months in the program You chose. Your existing monthly transfer amount is then increased by this additional amount to determine the total new dollar amount to be transferred each month. Then, the time period for the transfer of a specific purchase payment and interest attributable to that purchase payment will be accelerated. Your Enhanced Dollar Cost Averaging Program will terminate on the date of the last transfer. If You cancel your participation in the Enhanced Dollar Cost Averaging Program, or upon notice of your death, your participation in the Enhanced Dollar Cost Averaging Program will be terminated and any remaining dollar amounts will be transferred to the default funding options in accordance with the percentages you have chosen for the Enhanced Dollar Cost Averaging program unless You have instructed Us otherwise. For Contracts issued prior to November 1, 2005, any remaining dollar amounts will be transferred to the Fixed Account. We may impose minimum purchase payments and other restrictions to utilize this program. The Enhanced Dollar Cost Averaging Program is not available in Oregon. Upon notice of death, your participation in the Equity Generator or the Allocator is terminated. EXAMPLE:
------------------------------------------------------------------------------------------------------------------ Amount Transferred from EDCA Fixed Account to EDCA 6-Month Selected Program Investment Date Amount Interest Rate Division(s) ---- --------- ------------- ---------------- A Enhanced Dollar Cost Averaging Program ("EDCA") 6-Month Program Initial Purchase Payment 5/1 $12,000* 3.00% $2,000* ------------------------------------------------------------------------------------------------------------------ B 6/1 $2,000 ------------------------------------------------------------------------------------------------------------------ C 7/1 $2,000 ------------------------------------------------------------------------------------------------------------------ D EDCA 6-Month Program Subsequent Purchase Payment 8/1 $18,000** 3.00% $5,000** ------------------------------------------------------------------------------------------------------------------ E 9/1 $5,000 ------------------------------------------------------------------------------------------------------------------ F 10/1 $5,000 ------------------------------------------------------------------------------------------------------------------ G 11/1 $5,000 ------------------------------------------------------------------------------------------------------------------ H 12/1 $4,173.97 ------------------------------------------------------------------------------------------------------------------
* $2,000/month to be transferred from first purchase payment of $12,000 divided by 6 months. ** Additional $3,000/month to be transferred from subsequent purchase payment of $18,000 divided by 6 months. Amounts transferred are from the oldest purchase payment and its interest, and so forth, until the EDCA balance is exhausted. 37 The example is hypothetical and is not based upon actual previous or current rates. OPTIONAL AUTOMATED INVESTMENT STRATEGIES THE EQUITY GENERATOR(R): An amount equal to the interest earned in the Fixed Account is transferred on the day of the month that is the same as the Contract Anniversary date (e.g., the 10th, 11th, etc.), to any one Investment Division, based on your selection. If the Contract Anniversary day is the 29th, 30th or 31st of the month, transfers are made on the first day of the next month. If the scheduled transfer date occurs on a date the Exchange is closed, the transfer will be made on the next date the Exchange is open. If your Fixed Account balance at the time of a scheduled transfer is zero, this strategy is automatically discontinued. THE REBALANCER(R): You select a specific asset allocation for your entire Account Balance from among the Investment Divisions and the Fixed Account, if available. Every three months, on the day of the month that is the same as the Contract Anniversary date (e.g., the 10th, 11th, etc.), we transfer amounts among these options to bring the percentage of your Account Balance in each option back to your original allocation. If the Contract Anniversary day is the 29th, 30th or 31st of the month, transfers are made on the first day of the next month. If the scheduled transfer date occurs on a date the Exchange is closed, the transfer will be made on the next date the Exchange is open. You may utilize the Rebalancer with the Enhanced Dollar Cost Averaging Program, provided that 100% of your Account Balance (other than amounts in the Enhanced Dollar Cost Averaging Program) is allocated to this strategy. THE INDEX SELECTOR(R): You may select one of five asset allocation models (the Conservative Model, the Conservative to Moderate Model, the Moderate Model, the Moderate to Aggressive Model and the Aggressive Model) which are designed to correlate to various risk tolerance levels. Based on the model You choose, your entire Account Balance is divided among the Barclays Aggregate Bond Index, MetLife Stock Index, MSCI EAFE(R) Index, Russell 2000(R) Index and MetLife Mid Cap Stock Index Investment Divisions and the Fixed Account (or the BlackRock Money Market Investment Division in lieu of the Fixed Account for the C Class Deferred Annuities, a Deferred Annuity issued in New York State and Washington State with GMIB I, GMIB II, GWB I, Enhanced GWB or the LWG I). Every three months, on the day of the month that is the same as the Contract Anniversary date (e.g., the 10th, 11th, etc.), the percentage in each of these Investment Divisions and the Fixed Account (or the BlackRock Money Market Investment Division) is brought back to the selected model percentage by transferring amounts among the Investment Divisions and the Fixed Account. If the Contract Anniversary day is the 29th, 30th or 31st of the month, transfers are made on the first day of the next month. If the scheduled transfer date occurs on a date the Exchange is closed, the transfer will be made on the next date the Exchange is open. You may participate in the Enhanced Dollar Cost Averaging Program if You choose the Index Selector, as long as your destination Investment Divisions are those in the Index Selector model You have selected. If You utilize the Index Selector strategy, 100% of your initial and future purchase payments (other than amounts in the Enhanced Dollar Cost Averaging Program) must be allocated to the asset allocation model You choose. Any allocation to an Investment Division not utilized in the asset allocation model You choose (other than amounts in the Enhanced Dollar Cost Averaging Program) will immediately terminate the Index Selector strategy. We will continue to implement the Index Selector strategy using the percentage allocations of the model that were in effect when You elected the Index Selector strategy. You should consider whether it is appropriate for You to continue this strategy over time if your risk tolerance, time horizon or financial situation changes. This strategy may experience more volatility than our other strategies. We provide the elements to formulate the models. We may rely on a third party for its expertise in creating appropriate allocations. The asset allocation models used in the Index Selector strategy may change from time to time. If You are interested in an updated model, please contact your sales representative. 38 You may choose another Index Selector strategy or terminate your Index Selector strategy at any time. If You choose another Index Selector strategy, You must select from the asset allocation models available at that time. After termination, if You then wish to again select the Index Selector strategy, You must select from the asset allocation models available at that time. THE ALLOCATOR/SM/: Each month a dollar amount You choose is transferred from the Fixed Account to any of the Investment Divisions You choose. You select the day of the month (other than the 29th, 30th or 31st of the month) and the number of months over which the transfers will occur. If the scheduled transfer date occurs on a date the Exchange is closed, the transfer will be made on the next date the Exchange is open. A minimum periodic transfer of $50 is required. Once your Fixed Account balance is exhausted, this strategy is automatically discontinued. The Allocator, Equity Generator and the Enhanced Dollar Cost Averaging Program are dollar cost averaging strategies. Dollar cost averaging involves investing at regular intervals of time. Since this involves continuously investing regardless of fluctuating prices, You should consider whether You can continue the strategy through periods of fluctuating prices. We will terminate all transactions under any automated investment strategy upon notification of your death. The chart below summarizes the availability of the Enhanced Dollar Cost Averaging Program and the automated investment strategies: Enhanced Dollar Cost Averaging Program ("EDCA") and Automated Investment Strategies
-------------------------------------------------------------------------------------------------------------------------- B Class Bonus Class C Class L Class ----------- ----------- ------- ----------- a. Enhanced Dollar Cost Averaging Program ("EDCA") Yes No No Yes -------------------------------------------------------------------------------------------------------------------------- May not be used with purchase payments which consist of money from other MetLife or its affiliates' variable annuities. Restrictions apply to destination Investment Divisions with any living benefit (except for the GMIB I, GMIB II, GWB and Enhanced GWB), the EDB I and the Index Selector. -------------------------------------------------------------------------------------------------------------------------- b. Choice of one Automated Investment Strategy -------------------------------------------------------------------------------------------------------------------------- 1. Equity Generator Yes Yes No Yes (but not (but not with EDCA) with EDCA) -------------------------------------------------------------------------------------------------------------------------- Not available in Contracts issued in New York State and Washington State with any living benefit or EDB I. -------------------------------------------------------------------------------------------------------------------------- 2. Rebalancer Yes Yes Yes Yes -------------------------------------------------------------------------------------------------------------------------- Not available with GMAB or the Option (B) Investment Allocation Restrictions. -------------------------------------------------------------------------------------------------------------------------- 3. Index Selector Yes Yes Yes Yes -------------------------------------------------------------------------------------------------------------------------- Not available with GMIB Plus I, the LWG I, the GMAB or the Option (B) Investment Allocation Restrictions; Moderate to Aggressive and Aggressive Models not available with the EDB I, the GMIB Plus II or the LWG II -------------------------------------------------------------------------------------------------------------------------- 4. Allocator Yes Yes No Yes (but not (but not with EDCA) with EDCA) -------------------------------------------------------------------------------------------------------------------------- Not available in Contracts issued in New York State and Washington State with any living benefit or EDB I. --------------------------------------------------------------------------------------------------------------------------
PURCHASE PAYMENTS We reserve the right to reject any Purchase Payment. A purchase payment is the money You give us to invest in the Deferred Annuity. The initial purchase payment is due on the date the Deferred Annuity is issued. You may also be permitted to make subsequent purchase payments. Initial and subsequent purchase payments are subject to certain requirements. These requirements are explained below. We may restrict your ability to make subsequent purchase payments. The manner in which subsequent purchase payments may be restricted is discussed below. 39 GENERAL REQUIREMENTS FOR PURCHASE PAYMENTS. The following requirements apply to initial and subsequent purchase payments. .. The B Class minimum initial purchase payment is $5,000 for the Non-Qualified Deferred Annuity and $2,000 for the Traditional IRA, Roth IRA, SEP and SIMPLE IRA Deferred Annuities. .. The minimum initial purchase payment through debit authorization for the B Class Non-Qualified Deferred Annuity is $500. .. The minimum initial purchase payment through debit authorization for the B Class Traditional IRA, Roth IRA, SEP and SIMPLE IRA Deferred Annuities is $100. .. The Bonus Class Deferred Annuity minimum initial purchase payment $10,000. .. The C Class and L Class minimum initial purchase payment is $25,000. .. We reserve the right to accept amounts transferred from other annuity Contracts that meet the initial minimum purchase payment requirement at the time of the transfer request, but, at the time of receipt in Good Order, do not meet such requirement because of loss in market value. .. If you are purchasing the Deferred Annuity as the Beneficiary of a deceased person's IRA, purchase payments must consist of monies which are direct transfers (as defined under the tax law) from other IRA contracts in the name of the same decedent. .. You may continue to make purchase payments while You receive Systematic Withdrawal Program payments (described later in this Prospectus) unless your purchase payments are made through debit authorization. .. The minimum subsequent purchase payment for all Deferred Annuities is $500, except for debit authorizations, where the minimum subsequent purchase payment is $100, or any amount we are required to accept under applicable tax law. .. We will also accept at least once every 24 months any otherwise allowable contribution to your Traditional IRA or Roth IRA provided it is at least $50. .. SEP and SIMPLE IRA Deferred Annuities are issued on an individual basis, however, purchase payments are generally forwarded to us on a collective ("group") basis by the employer, either directly or automatically. If purchase payments are made on this type of "group" basis by the employer for SEP and SIMPLE IRA Deferred Annuities, the "group" needs only to satisfy the minimum subsequent purchase payment amounts based upon the number of persons in the "group". .. We will issue the B, C or L Class Deferred Annuity to You before your 86th birthday. We will issue the Bonus Class Deferred Annuity to You before your 81st birthday. We will accept your purchase payments up to your 91st birthday (89 in Massachusetts for the B and Bonus Class.) 40 The chart below summarizes the minimum initial and subsequent purchase payments for each Contract class:
--------------------------------------------------------------------------- Bonus Class B Class ----------- C Class L Class ---------------- -------- -------- Initial Purchase Payment $5,000 $10,000 $25,000 $25,000 ($2,000: Traditional IRA and Roth IRA, SEP and SIMPLE IRA) --------------------------------------------------------------------------- Subsequent Purchase Payment $500 $500 $500 $500 --------------------------------------------------------------------------- (or any amount we are required to accept under applicable tax law) --------------------------------------------------------------------------- Debit Authorizations --------------------------------------------------------------------------- Initial $500 $10,000 $25,000 $25,000 ($100: Traditional IRA and Roth IRA, SEP and SIMPLE IRA) --------------------------------------------------------------------------- Subsequent $100 $100 $100 $100 --------------------------------------------------------------------------- (or any amount we are required to accept under applicable tax law) ---------------------------------------------------------------------------
RESTRICTIONS ON SUBSEQUENT PURCHASE PAYMENTS. We may restrict your ability to make subsequent purchase payments. We will notify you in advance if we impose restrictions on subsequent purchase payments. You and your financial representative should carefully consider whether our ability to restrict subsequent purchase payments is consistent with your investment objectives. .. Purchase payments may be limited by Federal tax laws or regulatory requirements. .. Purchase payments may be limited by our right to limit the total of your purchase payments to $1,000,000. .. We reserve the right to restrict purchase payments to the Fixed Account, if available, and the Enhanced Dollar Cost Averaging Program if (1) the interest rate we credit in the Fixed Account is equal to the guaranteed minimum rate as stated in your Deferred Annuity; or (2) your Fixed Account Balance and Enhanced Dollar Cost Averaging Program balance is equal to or exceeds our maximum for Fixed Account allocations (e.g., $1,000,000). .. We reserve the right to reject any purchase payment and to limit future purchase payments. This means that we may restrict your ability to make subsequent purchase payments for any reason, subject to applicable requirements in your state. We may make certain exceptions to restrictions on subsequent purchase payments in accordance with our established administrative procedures. .. Certain optional benefits have current restrictions on subsequent purchase payments that are described in more detail. For more information, see "Restrictions on Subsequent Purchase Payments -- GMIB I, GMIB Plus I, GMIB Plus II, GWB I, Enhanced GWB. LWG I, LWG II, GMAB and EDB I. ALLOCATION OF PURCHASE PAYMENTS You decide how your money is allocated among the Fixed Account, if available, the Enhanced Dollar Cost Averaging Program, if available, The Equity Generator(R) and The Allocator/SM/, if available, and the Investment Divisions. If you make a subsequent purchase while The Equity Generator(R), The Allocator/SM/ or the Enhanced Dollar Cost Averaging program is in effect, we will not allocate the subsequent purchase payment to The Equity Generator(R), The Allocator/SM/ or the Enhanced 41 Dollar Cost Averaging program unless you tell us to do so. Instead unless You give Us other instructions, We will allocate the additional purchase payment directly to the same destination Investment Divisions You selected under the Enhanced Dollar Cost Averaging Program, The Equity Generator(R) or The Allocator/SM/, (see "Deferred Annuities -- Optional Automated Investment Strategies and Optional Enhanced Dollar Cost Averaging Program.") You may not choose more than 18 funding choices at the time your initial purchase payment is allocated among the funding choices. You can change your allocations for future purchase payments. We will make allocation changes when we receive your request for a change. Unless we have a record of your request to allocate future purchase payments to more than 18 funding choices, You may not choose more than 18 funding choices at the time your subsequent purchase payment is allocated among the funding choices. You may also specify an effective date for the change as long as it is within 30 days after we receive the request. See " Your Investment Choices -- Investment Allocation Restrictions for Certain Optional Benefits", "The EDB I", "Guaranteed Income Benefits" and "Guaranteed Withdrawal Benefits" for allocation restrictions if You elect certain optional benefits. DEBIT AUTHORIZATIONS You may elect to have purchase payments made automatically. With this payment method, your bank deducts money from your bank account and makes the purchase payment for You. THE VALUE OF YOUR INVESTMENT Accumulation Units are credited to You when You make purchase payments or transfers into an Investment Division. When You withdraw or transfer money from an Investment Division (as well as when we apply the Annual Contract Fee and, if selected, the charges for the EDB I or any of the optional Living Benefits), accumulation units are liquidated. We determine the number of accumulation units by dividing the amount of your purchase payment, transfer or withdrawal by the Accumulation Unit Value on the date of the transaction. This is how we calculate the Accumulation Unit Value for each Investment Division: .. First, we determine the change in investment performance (including any investment-related charge) for the underlying Portfolio from the previous trading day to the current trading day; .. Next, we subtract the daily equivalent of the Separate Account charge (for the class of the Deferred Annuity You have chosen, including any optional benefits where the charge is assessed on the Separate Account) for each day since the last Accumulation Unit Value was calculated; and .. Finally, we multiply the previous Accumulation Unit Value by this result. 42 Examples Calculating the Number of Accumulation Units Assume You make a purchase payment of $500 into one Investment Division and that Investment Division's Accumulation Unit Value is currently $10.00. You would be credited with 50 accumulation units. $500 = 50 accumulation units ---- $10
Calculating the Accumulation Unit Value Assume yesterday's Accumulation Unit Value was $10.00 and the number we calculate for today's investment experience (minus charges) for an underlying Portfolio is 1.05. Today's Accumulation Unit Value is $10.50. The value of your $500 investment is then $525 (50 x $10.50 = $525). $10.00 x 1.05 = $10.50 is the new Accumulation Unit Value However, assume that today's investment experience (minus charges) is .95 instead of 1.05. Today's Accumulation Unit Value is $9.50. The value of your $500 investment is then $475 (50 x $.950 = $475). $10.00 x .95 = $9.50 is the new Accumulation Unit Value TRANSFER PRIVILEGE You may make tax-free transfers among Investment Divisions or between the Investment Divisions and the Fixed Account, if available. Each transfer must be at least $500 or, if less, your entire balance in an Investment Division (unless the transfer is in connection with an automated investment strategy or the Enhanced Dollar Cost Averaging Program). You may not make a transfer to more than 18 funding options at any one time if this request is made through our telephone voice response system or by Internet. A request to transfer to more than 18 funding options may be made by calling your Administrative Office. For us to process a transfer, You must tell us: .. The percentage or dollar amount of the transfer; .. The Investment Divisions (or Fixed Account) from which You want the money to be transferred; .. The Investment Divisions (or Fixed Account) to which You want the money to be transferred; and .. Whether You intend to start, stop, modify or continue unchanged an automated investment strategy by making the transfer. We reserve the right to restrict transfers to the Fixed Account (which is not available in the C Class Deferred Annuity purchased after April 20, 2003 and the Deferred Annuity with any optional Living Benefit issued in New York State and Washington State) if (1) the interest rate we credit in the Fixed Account is equal to the guaranteed minimum rate as stated in your Deferred Annuity; or (2) your Fixed Account Balance is equal to or exceeds our maximum for Fixed Account allocations (I.E., $1,000,000). Please see "Your Investment Choices -- Investment Allocation Restrictions For Certain Optional Benefits" for transfer restrictions in effect if You have the EDB I, the GMIB Plus II or the LWG II. Your transfer request must be in Good Order and completed prior to the close of the Exchange on a business day, if You want the transaction to take place on that day. All other transfer requests in Good Order will be processed on our next business day. We may require You to use our original forms. 43 RESTRICTIONS ON TRANSFERS RESTRICTIONS ON FREQUENT TRANSFERS/REALLOCATIONS. Frequent requests from Contract owners to make transfers/reallocations may dilute the value of a Portfolio's shares if the frequent transfers/reallocations involve an attempt to take advantage of pricing inefficiencies created by a lag between a change in the value of the securities held by the Portfolio and the reflection of that change in the Portfolio's share price ("arbitrage trading"). Frequent transfers/reallocations involving arbitrage trading may adversely affect the long-term performance of the Portfolios, which may in turn adversely affect Contract owners and other persons who may have an interest in the Contracts (e.g., Annuitants and Beneficiaries). We have policies and procedures that attempt to detect and deter frequent transfers/reallocations in situations where we determine there is a potential for arbitrage trading. Currently, we believe that such situations may be present in the international, small-cap, and high-yield portfolios (I.E., American Funds Global Small Capitalization, Baillie Gifford International Stock, Clarion Global Real Estate, Harris Oakmark International, Invesco Small Cap Growth, Loomis Sayles Small Cap Core Portfolio, Loomis Sayles Global Markets, Loomis Sayles Small Cap Growth Portfolio, Lord Abbett Bond Debenture, MFS(R) Research International, MSCI EAFE(R) Index, Neuberger Berman Genesis, Oppenheimer Global Equity, Russell 2000(R) Index, T. Rowe Price Small Cap Growth and Western Asset Management Strategic Bond Opportunities the "Monitored Portfolios") and we monitor transfer/reallocation activity in those Monitored Portfolios. In addition, as described below, we intend to treat all American Funds Insurance Series(R) Portfolios ("American Funds portfolios") as Monitored Portfolios. We employ various means to monitor transfer/reallocation activity, such as examining the frequency and size of transfers/reallocations into and out of the Monitored Portfolios within given periods of time. For example, we currently monitor transfer activity to determine if, for each category of international, small-cap, and high-yield portfolios, in a 12-month period there were, (1) six or more transfers/reallocations involving the given category; (2) cumulative gross transfers/reallocations involving the given category that exceed the current Account Balance; and (3) two or more "round-trips" involving any Monitored Portfolio in the given category. A round-trip generally is defined as a transfer/reallocation in followed by a transfer/reallocation out within the next seven calendar days or a transfer/reallocation out followed by a transfer/reallocation in within the next seven calendar days, in either case subject to certain other criteria. WE DO NOT BELIEVE THAT OTHER PORTFOLIOS PRESENT A SIGNIFICANT OPPORTUNITY TO ENGAGE IN ARBITRAGE TRADING AND THEREFORE DO NOT MONITOR TRANSFER/REALLOCATION ACTIVITY IN THOSE PORTFOLIOS. We may change the Monitored Portfolios at any time without notice in our sole discretion. As a condition to making their portfolios available in our products, American Funds(R) requires us to treat all American Funds portfolios as Monitored Portfolios under our current frequent transfer/reallocation policies and procedures. Further, American Funds(R) requires us to impose additional specified monitoring criteria for all American Funds portfolios available under the Contract, regardless of the potential for arbitrage trading. We are required to monitor transfer/reallocation activity in American Funds portfolios to determine if there were two or more transfers/reallocations in followed by transfers/reallocations out, in each case of a certain dollar amount or greater, in any 30-day period. A first violation of the American Funds(R) monitoring policy will result in a written notice of violation; each additional violation will result in the imposition of a six-month restriction, during which period we will require all reallocation/transfer requests to or from an American Funds portfolio to be submitted with an original signature. Further, as Monitored Portfolios, all American Funds portfolios also will be subject to our current frequent transfer/reallocation policies, procedures and restrictions (described below) and reallocation/transfer restrictions may be imposed upon a violation of either monitoring policy. Our policies and procedures may result in transfer/reallocation restrictions being applied to deter frequent transfers/reallocations. Currently, when we detect transfer/reallocation activity in the Monitored Portfolios that exceeds our current transfer/ reallocation limits, we require future requests to or from any Monitored Portfolios under that Contract to be submitted with an original signature. A first occurrence will result in the imposition of this restriction for a six-month period; a second occurrence will result in the permanent imposition of the restriction. Transfers made under a dollar cost 44 averaging program, a rebalancing program or, if applicable, any asset allocation program described in this prospectus are not treated as transfers when we monitor the frequency of transfers/reallocations. The detection and deterrence of harmful transfer/reallocation activity involves judgments that are inherently subjective, such as the decision to monitor only those Portfolios we believe are susceptible to arbitrage trading or the determination of the transfer/reallocation limits. Our ability to detect and/or restrict such transfer/reallocation activity may be limited by operational and technological systems, as well as our ability to predict strategies employed by Contract Owners to avoid such detection. Our ability to restrict such transfer/reallocation activity also may be limited by provisions of the Contract. Accordingly, there is no assurance that we will prevent all transfer/reallocation activity that may adversely affect Contract Owners and other persons with interests in the Contracts. We do not accommodate frequent transfers/reallocations in any Portfolio and there are no arrangements in place to permit any Contract Owner to engage in frequent transfers/reallocations; we apply our policies and procedures without exception, waiver, or special arrangement. The Portfolios may have adopted their own policies and procedures with respect to frequent transfers/reallocations transactions in their respective shares, and we reserve the right to enforce these policies and procedures. For example, Portfolios may assess a redemption fee (which we reserve the right to collect) on shares held for a relatively short period. The prospectuses for the Portfolios describe any such policies and procedures, which may be more or less restrictive than the policies and procedures we have adopted. Although we may not have the contractual authority or the operational capacity to apply the frequent transfer/reallocation policies and procedures of the Portfolios, we have entered into a written agreement as required by SEC regulation with each Portfolio or its principal underwriter that obligates us to provide to the Portfolio promptly upon request certain information about the trading activity of individual Contract Owners, and to execute instructions from the Portfolio to restrict or prohibit further purchases or transfers/reallocations by specific Contract Owners who violate the frequent transfer/reallocation policies established by the Portfolio. In addition, Contract Owners and other persons with interests in the Contracts should be aware that the purchase and redemption orders received by the Portfolios generally are "omnibus" orders from intermediaries, such as retirement plans or separate accounts funding variable insurance Contracts. The omnibus orders reflect the aggregation and netting of multiple orders from individual Contract Owners of variable insurance Contracts and/or individual retirement plan participants. The omnibus nature of these orders may limit the Portfolios in their ability to apply their frequent transfer/reallocation policies and procedures. In addition, the other insurance companies and/or retirement plans may have different policies and procedures or may not have any such policies and procedures because of contractual limitations. For these reasons, we cannot guarantee that the Portfolios (and thus Contract Owners) will not be harmed by transfer/reallocation activity relating to other insurance companies and/or retirement plans that may invest in the Portfolios. If a Portfolio believes that an omnibus order reflects one or more reallocation/transfer requests from Contract Owners engaged in frequent transfers/reallocations, the Portfolio may reject the entire omnibus order. In accordance with applicable law, we reserve the right to modify or terminate the transfer/reallocation privilege at any time. We also reserve the right to defer or restrict the transfer/reallocation privilege at any time that we are unable to purchase or redeem shares of any of the Portfolios, including any refusal or restriction on purchases or redemptions of their shares as a result of their own policies and procedures on frequent transfers/reallocations (even if an entire omnibus order is rejected due to the frequent transfers/reallocations of a single Contract Owner). You should read the Portfolio prospectuses for more details. RESTRICTIONS ON LARGE TRANSFERS/REALLOCATIONS. Large transfers/reallocations may increase brokerage and administrative costs of the underlying Portfolios and may disrupt portfolio management strategy, requiring a Portfolio to maintain a high cash position and possibly resulting in lost investment opportunities and forced liquidations. We do not monitor for large transfers/reallocations to or from Portfolios except where the portfolio manager of a particular underlying Portfolio has brought large transfer/reallocations activity to our attention for investigation on a case-by-case 45 basis. For example, some portfolio managers have asked us to monitor for "block transfers" where transfer/reallocation requests have been submitted on behalf of multiple Contract Owners by a third party such as an investment adviser. When we detect such large trades, we may impose restrictions similar to those described above where future transfer/reallocation requests from that third party must be submitted with an original signature. A first occurrence will result in the imposition of this restriction for a six-month period; a second occurrence will result in the permanent imposition of the restriction. ACCESS TO YOUR MONEY You may withdraw either all or part of your Account Balance from the Deferred Annuity. Other than those made through the Systematic Withdrawal Program, withdrawals must be at least $500 or the Account Balance, if less. If any withdrawal would decrease your Account Balance below $2,000, we will consider this a request for a full withdrawal. To process your request, we need the following information: .. The percentage or dollar amount of the withdrawal; and .. The Investment Divisions (or Fixed Account and Enhanced Dollar Cost Averaging Program) from which You want the money to be withdrawn. Your withdrawal may be subject to Withdrawal Charges. Generally, if You request, we will make payments directly to other investments on a tax-free basis. You may only do so if all applicable tax and state regulatory requirements are met and we receive all information necessary for us to make the payment. We may require You to use our original forms. We may withhold payment of withdrawal if any portion of those proceeds would be derived from a Contract Owner's check that has not yet cleared (I.E., that could still be dishonored by your banking institution). We may use telephone, fax, Internet or other means of communication to verify that payment from the Contract has been or will be collected. We will not delay payment longer than necessary for us to verify that payment has been or will be collected. Contract Owners may avoid the possibility of delay in the disbursement of proceeds coming from a check that has not yet cleared by providing us with a certified check. SYSTEMATIC WITHDRAWAL PROGRAM Under this program and subject to approval in your state, You may choose to automatically withdraw a certain amount each Contract Year. This amount is then paid throughout the Contract Year according to the time frame You select, e.g., monthly, quarterly, semi-annually or annually. For all Contract classes, except for the C Class, payments may be made monthly or quarterly during the first Contract Year. Unless we agree otherwise, this program will not begin within the first 60 days after the date we have issued You the Contract. Once the Systematic Withdrawal Program is initiated, the payments will automatically renew each Contract Year. Income taxes, tax penalties and Withdrawal Charges may apply to your withdrawals. Program payment amounts are subject to our required minimums and administrative restrictions. Your Account Balance will be reduced by the amount of your Systematic Withdrawal Program payments and applicable Withdrawal Charges. Payments under this program are not the same as income payments You would receive from a Deferred Annuity pay-out option. If You do not provide us with your desired allocation, or there are insufficient amounts in the Investment Divisions, Enhanced Dollar Cost Averaging Program or the Fixed Account that You selected, the payments will be taken out pro-rata from the Fixed Account, Enhanced Dollar Cost Averaging Program and any Investment Divisions in which You then have money. 46 Selecting a Payment Date: Your payment date is the date we make the withdrawal. You may choose any calendar day for the payment date, other than the 29th, 30th or 31st of the month. When You select or change a payment date, we must receive your request at least 10 days prior to the selected payment date. (If You would like to receive your Systematic Withdrawal Program payment on or about the first of the month, You should make your request by the 20th day of the month.) If we do not receive your request in time, we will make the payment the following month after the date You selected. If You do not select a payment date, we will automatically begin systematic withdrawals within 30 days after we receive your request (other than the 29th, 30th or 31st of the month). You may request to stop your Systematic Withdrawal Program at any time. We must receive any request in Good Order at least 30 days in advance. Although we need your written authorization to begin this program, You may cancel this program at any time by telephone or by writing to us (or over the Internet, if we agree) at our Administrative Office. We will also terminate your participation in the program upon notification of your death. Systematic Withdrawal Program payments may be subject to a Withdrawal Charge unless an exception to this charge applies. We will determine separately the Withdrawal Charge and any relevant factors (such as applicable exceptions) for each Systematic Withdrawal Program payment as of the date it is withdrawn from your Deferred Annuity. MINIMUM DISTRIBUTIONS In order to comply with certain tax law provisions, You may be required to take money out of the Contract. We have a required minimum distribution service that can help You fulfill minimum distribution requirements. We will terminate your participation in the program upon notification of your death. CHARGES There are two types of charges You pay while You have money in an Investment Division: .. Separate Account charge, and .. Investment-related charge. We describe these charges below. The amount of the charge may not necessarily correspond to costs associated with providing the services or benefits indicated by the designation of the charge or associated with the Deferred Annuity. For example, the Withdrawal Charge may not fully cover all of the sales and distribution expenses actually incurred by us, and proceeds from other charges, including the Separate Account charge, may be used in part to cover such expenses. We can profit from certain Deferred Annuity charges. The Separate Account charges You pay will not reduce the number of accumulation units credited to You. Instead, we deduct the charges as part of the calculation of the Accumulation Unit Value. We guarantee that the Separate Account insurance-related charge will not increase while You have the Deferred Annuity. SEPARATE ACCOUNT CHARGE Each class of the Deferred Annuity has a different annual Separate Account charge that is expressed as a percentage of the average Account Balance. A portion of this annual Separate Account charge is paid to us daily based upon the value of the amount You have in the Separate Account on the day the charge is assessed. This charge includes insurance-related charges that pay us for the risk that You may live longer than we estimated. Then, we could be obligated to pay You more in payments from a pay-out option than we anticipated. Also, we bear the risk that the guaranteed death benefit we would pay should You die during your pay-in phase is larger than your Account Balance. This charge also includes the risk that our expenses in administering the Deferred Annuities may be greater than we estimated. The Separate Account charge also pays us for our distribution costs to both our licensed salespersons and other broker-dealers. 47 The chart below summarizes the Separate Account charge for each class of the Deferred Annuity along with each death benefit that has an additional asset-based Separate Account charge prior to entering the pay-out phase of the Contract. SEPARATE ACCOUNT CHARGES/1/
B CLASS BONUS CLASS/2/ C CLASS L CLASS - ------- ------------- ------- ------- Separate Account Charge with Basic Death Benefit/3/. 1.25% 1.70% 1.65% 1.50% Optional Annual Step-Up Death Benefit............... 1.45% 1.90% 1.85% 1.70% Optional Greater of Annual Step-Up or 5%............ 1.60% 2.05% 2.00% 1.85% Annual Increase Death Benefit Optional Earnings Preservation Benefit/4/........... .25% .25% .25% .25%
/1/ We currently charge an additional Separate Account charge of 0.25% of average daily net assets in the American Funds Bond, American Funds Growth-Income, American Funds Growth and American Funds Global Small Capitalization Investment Divisions. We reserve the right to impose an additional Separate Account charge on Investment Divisions that we add to the Contract in the future. The additional amount will not exceed the annual rate of 0.25% of average daily net assets in any such Investment Divisions. /2/ The Separate Account charge for the Bonus Class will be reduced by 0.45% after You have held the Contract for seven years. /3/ The Separate Account charge includes the Basic Death Benefit. /4/ The Optional Earnings Preservation Benefit may be elected with or without the Optional Annual Step-Up Death Benefit or the optional Greater of Annual Step-Up or 5% Annual Increase Death Benefit. INVESTMENT-RELATED CHARGE This charge has two components. The first pays the investment managers for managing money in the Portfolios. The second consists of Portfolio operating expenses and 12b-1 Plan fees. The percentage You pay for the investment-related charge depends on which Investment Divisions You select. Each class of shares available to the Deferred Annuities has a 12b-1 Plan fee, which pays for distribution expenses. The class of shares available in the Metropolitan Fund and the Met Investors Fund is Class B, which has a 0.25% 12b-1 Plan fee (except for the American Funds(R) Balanced Allocation, American Funds(R) Growth Allocation and American Funds(R) Moderate Allocation Portfolios of the Met Investors Fund which are Class C and have a 0.55% 12b-1 Plan fee). Class 2 shares of the available American Funds(R) have a 0.25% 12b-1 Plan fee. Amounts for each Investment Division for the previous year are listed in the "Table of Expenses". ANNUAL CONTRACT FEE There is a $30 Annual Contract Fee. This fee is waived if your Account Balance is at least $50,000. It is deducted on a pro-rata basis from the Investment Divisions on the Contract Anniversary. No portion of the fee is deducted from the Fixed Account. Regardless of the amount of your Account Balance, the entire fee will be deducted at the time of a total withdrawal of your Account Balance. This charge pays us for our miscellaneous administrative costs. These costs which we incur include financial, actuarial, accounting and legal expenses. We reserve the right to deduct this fee during the pay-out phase. TRANSFER FEE We reserve the right to limit the number of transfers per Contract Year to a maximum of twelve (excluding transfers resulting from automated investment strategies). Currently we do not limit the number of transfers You may make in a Contract Year. We are not currently charging a transfer fee, but we reserve the right to charge such a fee in the future. If such a fee were to be imposed, it would be $25.00 for each transfer over twelve in a Contract Year. The transfer fee will be deducted from the Investment Division or the Fixed Account from which the transfer is made. However, if the entire interest in the Separate Account or Fixed Account is being transferred, the transfer fee will be deducted from the amount that is transferred. 48 OPTIONAL ENHANCED DEATH BENEFIT The EDB I is available for an additional charge of 0.75% for issue ages 69 or younger and 0.95% for issue ages 70-75 of the Death Benefit Base (as defined later in this Prospectus), deducted for the prior Contract Year on the Contract Anniversary prior to taking into account any Optional Step-Up by withdrawing amounts on a pro rata basis from your Fixed Account balance, Enhanced Dollar Cost Averaging Program balance and Separate Account balance. We take amounts from the Separate Account by canceling accumulation units from your Separate Account balance. If You elect an Optional Step-Up of the EDB I, we may increase the charge beginning after the Contract Anniversary on which the Optional Step-Up occurs to a rate that does not exceed the lower of (a) the maximum Optional Step-Up charge (1.50%) or (b) the current rate we charge for the same optional benefit available for new Contract purchases at the time of the Optional Step-Up. For Contracts for which an application and any necessary information were received in Good Order at your Administrative Office from February 24, 2009 through May 1, 2009, the charge for the EDB I is 0.65% of the Death Benefit Base for issue ages 0-69 and 0.90% of the Death Benefit Base for issue ages 70-75. For Contracts issued on or before February 23, 2009, the charge is 0.65% of the Death Benefit Base for issue ages 0-69 and 0.85% of the Death Benefit Base for issue ages 70-75. For Contracts for which an application and any necessary information were received in Good Order on or before May 1, 2009, if You elected both the GMIB Plus II and the EDB I, the percentage charge for the EDB I is reduced by 0.05%. If You make a total withdrawal of your Account Balance, elect to receive income payments under your Contract, change the Contract Owner or joint Contract Owner (or Annuitant if the Contract Owner is a non-natural person) or assign your Contract, a pro rata portion of the EDB I charge will be assessed based on the number of months from the last Contract Anniversary to the date of the withdrawal, the beginning of income payments, the change of Contract Owner/Annuitant or the assignment. If an EDB I is terminated because the Contract is terminated, the death benefit amount is determined or your Account Balance is not sufficient to pay the optional benefit charge, no EDB I charge will be assessed based on the number of months from the last Contract Anniversary to the date the termination takes effect. OPTIONAL GUARANTEED MINIMUM INCOME BENEFITS The GMIB Plus II, the GMIB Plus I, the GMIB II and the GMIB I are each available for an additional charge equal to a percentage of the guaranteed minimum income base (as defined later in this Prospectus), deducted for the prior Contract Year on the Contract Anniversary prior to taking into account any Optional Step-Up (GMIB Plus II) or Optional Reset (GMIB Plus I) by withdrawing amounts on a pro rata basis from your Fixed Account Balance, Enhanced Dollar Cost Averaging Program balance and Separate Account value. We take amounts from the Separate Account by canceling accumulation units from your Separate Account value. If You make a total withdrawal of your Account Balance, elect to receive income payments under your Contract, change the Contract Owner or joint Contract Owner (or Annuitant if the Contract Owner is a non-natural person) or assign your Contract, a pro rata portion of the GMIB optional benefit charge will be assessed based on the number of months from the last Contract Anniversary to the date of the withdrawal, the beginning of income payments, the change of Contract Owner/Annuitant or the assignment. If a GMIB optional benefit is terminated for the following reasons, no GMIB optional benefit charge will be assessed based on the number of months from the last Contract Anniversary to the date the termination takes effect: . the death of the Contract Owner or Joint Contract Owner (or the Annuitant, if a non-natural person owns the Contract); . because it is the 30th day following the Contract Anniversary prior to the Contract Owner's 86th birthday (for GMIB I, GMIB II or GMIB Plus I) or 91st birthday (for GMIB Plus II); or . the Guaranteed Principal Option is exercised (only applicable to GMIB Plus I and GMIB Plus II). 49 For versions of the GMIB optional benefit with an optional Step-Up (GMIB Plus II), or Optional Reset (GMIB Plus I), if You elect an Optional Step-Up/Optional Reset, we may increase the charge applicable beginning after the Contract Anniversary on which the Optional Step-Up/Optional Reset occurs to a rate that does not exceed the lower of (a) the maximum Optional Step-Up/Optional Reset charge (1.50%) or (b) the current rate we would charge for the same optional benefit available for new Contract purchases at the time of the Optional Step-Up/Optional Reset. (See below for certain versions of the GMIB Plus II, GMIB Plus I and GMIB Plus (For New York State only) optional benefits for which We are currently increasing the rider charge upon an Optional Step-Up/Optional Reset on a Contract Anniversary occurring on July 1, 2012 or later.) If You selected the GMIB Plus II with a Contract issued on or before February 23, 2009, the optional benefit charge is 0.80% of the guaranteed minimum income base. If You selected the GMIB Plus II with a Contract issued on or after February 24, 2009, the optional benefit charge is 1.00% of the guaranteed minimum income base. For Contracts issued with the version of the GMIB Plus II optional benefit with an annual increase rate of 6%, if your Income Base is increased due to an Optional Step-Up on a Contract Anniversary occurring on July 1, 2012 or later, We currently will increase the optional benefit charge to 1.20% of the guaranteed minimum income base. (For New York State only: For Contracts issued on or before February 23, 2009, the GMIB Plus optional benefit charge is 0.75% of the guaranteed minimum income base, and for Contracts issued on or after February 24, 2009, the GMIB Plus optional benefit charge is 0.95% of the guaranteed minimum income base. For Contracts issued with the version of the GMIB Plus optional benefit with an annual increase rate of 6%, if your Income Base is increased due to an Optional Step-Up on a Contract Anniversary occurring on July 1, 2012 or later, We currently will increase the optional benefit charge to 1.15% of the guaranteed minimum income base.) If You selected the GMIB Plus I with a Contract issued on or before February 23, 2007, the optional benefit charge is 0.75% of the guaranteed minimum income base. If your Income Base is increased due to an Optional Reset on a Contract Anniversary occurring on July 1, 2012 or later, We currently will increase the optional benefit charge to 1.00% of the guaranteed minimum income base, applicable after the Contract Anniversary on which the Optional Reset occurs. If You selected the GMIB Plus I with a Contract issued on and after February 26, 2007, the optional benefit charge is 0.80% of the guaranteed minimum income base. If your Income Base is increased due to an Optional Reset on a Contract Anniversary occurring on July 1, 2012 or later, We currently will increase the optional benefit charge to 1.20% of the guaranteed minimum income base, applicable after the Contract Anniversary on which the Optional Reset occurs. If You selected the GMIB II or the GMIB I the optional benefit charge is 0.50% of the guaranteed minimum income base. For the GMIB I and GMIB II available in Contracts issued from May 1, 2003 and on or before April 29, 2005, the optional benefit charge is reduced to 0.45% of the guaranteed minimum income base if You choose either the Annual Step-Up Death Benefit or the Greater of Annual Step-Up or 5% Annual Increase Death Benefit. For Contracts issued on and after May 2, 2005, the optional benefit charge is not reduced if you elected either the optional Annual Step-Up Death Benefit or the Greater of Annual Step-Up or 5% Annual Increase Death Benefit. For Contracts for which a completed application and any other required paperwork were received in Good Order at your Administrative Office by February 14, 2003, and for which an initial purchase payment was received within 60 days, the charge for the GMIB I is 0.15% lower (0.35% rather than 0.50%). OPTIONAL GUARANTEED WITHDRAWAL BENEFITS There are two versions of the LWG optional benefit (the LWG II and the LWG I) that are available for an additional charge of a percentage of the Total Guaranteed Withdrawal Amount (as defined later in this Prospectus). The percentage is deducted for the prior Contract Year on the Contract Anniversary after applying any Compounding Income Amount, and 50 prior to taking into account any Automatic Annual Step-Up occurring on the Contract Anniversary, by withdrawing amounts on a pro rata basis from your Fixed Account balance, Enhanced Dollar Cost Averaging Program balance and Separate Account balance. We take amounts from the Separate Account by canceling accumulation units from your Separate Account balance. There are two versions of the GWB optional benefit (the Enhanced GWB and the GWB I) that are available for an additional charge of a percentage of the Guaranteed Withdrawal Amount (as defined later in this Prospectus), deducted for the prior Contract Year on the Contract Anniversary prior to taking into account any Optional Reset by withdrawing amounts on a pro rata basis from your Fixed Account balance, Enhanced Dollar Cost Averaging Program balance and Separate Account balance. We take amounts from the Separate Account by canceling accumulation units from your Separate Account balance. If you: make a full withdrawal (surrender) of your Account Balance; You apply all of your Account Balance to an Annuity Option; there is a change in Contract Owners, Joint Contract Owners or Annuitants (if the Contract Owner is a non-natural person); the Contract terminates (except for a termination due to death); or (under the LWG II) You assign your Contract, a pro rata portion of the optional benefit charge will be assessed based on the number of full months from the last Contract Anniversary to the date of the change. If an LWG optional benefit or GWB optional benefit is terminated because of the death of the Contract Owner, Joint Contract Owner or Annuitants (if the Contract Owner is a non-natural person), or if an LWG or the Enhanced GWB is cancelled pursuant to the cancellation provisions of each optional benefit, no optional benefit charge will be assessed based on the period from the most recent Contract Anniversary to the date the termination takes effect. LIFETIME WITHDRAWAL GUARANTEE -- AUTOMATIC ANNUAL STEP-UP. We reserve the right to increase the LWG optional benefit charge upon an Automatic Annual Step-Up. The increased LWG optional benefit charge will apply after the Contract Anniversary on which the Automatic Annual Step-Up occurs. If an Automatic Annual Step-Up occurs, the LWG optional benefit charge may be reset to a rate that does not exceed the lower of: (a) the maximum Automatic Annual Step-Up charge or (b) the current rate that We charge for the same optional benefit available for new Contract purchases at the time of the Automatic Annual Step-Up. . For Contracts issued with the LWG II on or after February 24, 2009, the maximum Automatic Annual Step-Up charge is 1.60% for the Single Life Version and 1.80% for the Joint Life Version. . For Contracts issued with the LWG II on or before February 23, 2009, the maximum Automatic Annual Step-Up charge is 1.25% for the Single Life Version and 1.50% for the Joint Life Version. . For Contracts issued with the LWG I, the maximum Automatic Annual Step-Up charge is 0.95% for the Single Life Version and 1.40% for the Joint Life Version. (See below for certain versions of the LWG optional benefits for which we are currently increasing the optional benefit charge upon an Automatic Annual Step-Up on a Contract Anniversary occurring on July 1, 2012 or later.) LIFETIME WITHDRAWAL GUARANTEE -- OPTIONAL BENEFIT CHARGE. For contracts issued with the LWG II optional benefit on or after February 24, 2009, the charge is 1.25% (Single Life version) or 1.50% (Joint Life version) of the Total Guaranteed Withdrawal Amount. For Contracts issued with the LWG II optional benefit on or before February 23, 2009, the charge is 0.65% for the Single Life Version and 0.85% for the Joint Life Version. If Your Total Guaranteed Withdrawal Amount is increased due to an Automatic Annual Step-Up on a Contract Anniversary occurring on July 1, 2012 or later, We currently will increase the 51 LWG II optional benefit charge for the Single Life Version to 0.95% of the Total Guaranteed Withdrawal Amount, and We will increase the optional benefit charge for Joint Life Version to 1.20% of the Total Guaranteed Withdrawal Amount, applicable after the Contract Anniversary on which the Automatic Annual Step-Up occurs. The optional benefit charge for the LWG I is 0.50% for the Single Life Version and 0.70% for the Joint Life Version. If Your Total Guaranteed Withdrawal Amount is increased due to an Automatic Annual Step-Up on a Contract Anniversary occurring on July 1, 2012 or later, We currently will increase the LWG I optional benefit charge for the Single Life Version to 0.80% of the Total Guarantee Withdrawal Amount, and We will increase the optional benefit charge for Joint Life Version to 1.05% of the Total Guaranteed Withdrawal Amount, applicable after the Contract Anniversary on which the Automatic Annual Step-Up occurs. If an LWG is in effect, the optional benefit charge will continue even if your Remaining Guaranteed Withdrawal Amount equals zero. The charge for the Enhanced GWB is 0.55% and the charge for the GWB I is 0.50%. If You elect an Optional Reset, we may increase the Enhanced GWB and the GWB I charge to the charge applicable to current Contract purchases of the same optional benefit at the time of the reset, but to no more than a maximum of 1.00% for the Enhanced GWB and 0.95% for the GWB I. (For Contracts issued on or before July 13, 2007, the charge for the Enhanced GWB prior to any Optional Reset is 0.50% of the Guaranteed Withdrawal Amount and the maximum charge upon an Optional Reset is 0.95%.) If the Enhanced GWB or the GWB I is in effect, the charge will not continue if your Benefit Base equals zero. OPTIONAL GUARANTEED MINIMUM ACCUMULATION BENEFIT The GMAB charge is of 0.75% of the Guaranteed Accumulation Amount (as defined in this Prospectus), deducted at the end of each Contract Year by withdrawing amounts on a prorata basis from your Enhanced Dollar Cost Averaging Program and Separate Account balance. We take amounts from the Separate Account by canceling accumulation units from your Separate Account balance. The GMAB is no longer available for sale, effective for Contracts for which applications and necessary information are received at your Administrative Office on or after May 4, 2009. PREMIUM AND OTHER TAXES Some jurisdictions tax what are called "annuity considerations." These may apply to purchase payments, Account Balances and death benefits. In most jurisdictions, we currently do not deduct any money from purchase payments, Account Balances or death benefits to pay these taxes. Generally, our practice is to deduct money to pay premium taxes (also known as "annuity" taxes) only when You exercise a pay-out option. In certain jurisdictions, we may deduct money to pay premium taxes on lump sum withdrawals or when You exercise a pay-out option. We may deduct an amount to pay premium taxes some time in the future since the laws and the interpretation of the laws relating to annuities are subject to change. Premium taxes, if applicable, depend on the Deferred Annuity You purchase and your home state or jurisdiction. The chart in Appendix A shows the jurisdictions where premium taxes are charged and the amount of these taxes. We also reserve the right to deduct from purchase payments, Account Balances, withdrawals or income payments, any taxes (including, but not limited to, premium taxes) paid by us to any government entity relating to the Contracts. Examples of these taxes include, but are not limited to, generation skipping transfer tax or a similar excise tax under Federal or state tax law which is imposed on payments we make to certain persons and income tax withholdings on withdrawals and income payments to the extent required by law. We will, at our sole discretion, determine when taxes relate to the Contracts. We may, at our sole discretion, pay taxes when due and deduct that amount from the Account Balance at a later date. Payment at an earlier date does not waive any right we may have to deduct amounts at a later date. 52 WITHDRAWAL CHARGES A Withdrawal Charge may apply if You withdraw purchase payments that were credited to your Deferred Annuity. There are no Withdrawal Charges for the C Class Deferred Annuity or in certain situations or upon the occurrence of certain events (see "When No Withdrawal Charge Applies"). To determine the Withdrawal Charge for the Deferred Annuities, we treat your Fixed Account, Enhanced Dollar Cost Averaging Program and Separate Account as if they were a single account and ignore both your actual allocations and the Fixed Account, Enhanced Dollar Cost Averaging Program or Investment Division from which the withdrawal is actually coming. To determine what portion (if any) of a withdrawal is subject to a Withdrawal Charge, amounts are withdrawn from your Contract in the following order: (1) Earnings in your contract (earnings are equal to your Account Value, less Purchase Payments not previously withdrawn); (2) The free withdrawal amount described below (deducted from purchase payments not previously withdrawn, in the order such purchase payments were made, with the oldest purchase payment first, as described below); and (3) Purchase payments not previously withdrawn, in the order such purchase payments were made: the oldest purchase payment first, the next purchase payment second, etc. until all purchase payments have been withdrawn. Once we have determined the amount of the Withdrawal Charge, we will then withdraw it from the Fixed Account, Enhanced Dollar Cost Averaging Program and the Investment Divisions in the same proportion as the withdrawal is being made. For a full withdrawal, we multiply the amount to which the Withdrawal Charge applies by the percentage shown, keep the result as a Withdrawal Charge and pay You the rest. For partial withdrawals, we multiply the amount to which the Withdrawal Charge applies by the percentage shown, keep the result as a Withdrawal Charge and pay You the rest. We will treat your request as a request for a full withdrawal if your Account Balance is not sufficient to pay both the requested withdrawal and the Withdrawal Charge, or if the withdrawal leaves an Account Balance that is less than the minimum required. The Withdrawal Charge on purchase payments withdrawn for each class is as follows:
NUMBER OF COMPLETE YEARS FROM RECEIPT OF PURCHASE PAYMENT B CLASS BONUS CLASS C CLASS L CLASS --------------------------------------------------------- ------- ----------- ------- ------- 0......................................................... 7% 9% None 7% 1......................................................... 6% 8% 6% 2......................................................... 6% 8% 5% 3......................................................... 5% 7% 0% 4......................................................... 4% 6% 0% 5......................................................... 3% 4% 0% 6......................................................... 2% 3% 0% 7 and thereafter.......................................... 0% 0% 0%
The Withdrawal Charge reimburses us for our costs in selling the Deferred Annuities. We may use our profits (if any) from the Separate Account charge to pay for our costs to sell the Deferred Annuities which exceed the amount of Withdrawal Charges we collect. FREE WITHDRAWAL AMOUNT. The free withdrawal amount for each Contract Year after the first (there is no free withdrawal amount in the first Contract Year) is equal to 10% of your total Purchase Payments, less the total free withdrawal amount previously withdrawn in the same Contract Year. Also, we currently will not assess the withdrawal charge on amounts withdrawn during the first Contract Year under the Systematic Withdrawal Program. Any unused free withdrawal amount in one Contract Year does not carry over to the next Contract Year. DIVORCE. A withdrawal made pursuant to a divorce or separation agreement is subject to the same Withdrawal Charge provisions described in this section, if permissible under tax law. In addition, the withdrawal will reduce the Account 53 Balance, the death benefit, and the amount of any optional benefit (including the benefit base that we use to determine the guaranteed amount of the benefit). The amount withdrawn could exceed the maximum amount that can be withdrawn without causing a proportionate reduction in the benefit base used to calculate the guaranteed amount provided by an optional benefit, as described in "Death Benefit -- Generally" and "Living Benefits". The withdrawal could have a significant negative impact on the death benefit and on any optional benefit. WHEN NO WITHDRAWAL CHARGE APPLIES In some cases, we will not charge You the Withdrawal Charge when You make a withdrawal. We may, however, ask You to prove that You meet any of the conditions listed below. You do not pay a Withdrawal Charge: .. If You have a C Class Deferred Annuity. .. On transfers You make within your Deferred Annuity among the Investment Divisions and transfers to or from the Fixed Account. .. On withdrawals of purchase payments You made over seven Contract Years ago for the B Class, seven Contract Years ago for the Bonus Class and three Contract Years ago for the L Class. .. If You choose payments over one or more lifetimes except, in certain cases, under the GMIB. .. If You die during the pay-in phase. Your Beneficiary will receive the full death benefit without deduction. .. If your Contract permits and your spouse is substituted as the Contract Owner of the Deferred Annuity and continues the Contract, that portion of the Account Balance that is equal to the "step-up" portion of the death benefit. .. If You withdraw only your earnings from the Investment Divisions. .. During the first Contract Year, if You are in the Systematic Withdrawal Program, and You withdraw up to 10% of your total purchase payments at the rate of 1/12 of such 10% each month on a non-cumulative basis, if withdrawals are on a monthly basis, or 1/4 of such 10% each quarter on a non-cumulative basis, if withdrawals are on a quarterly basis. .. After the first Contract Year, if You withdraw up to 10% of your total purchase payments, per Contract Year. This 10% total withdrawal may be taken in an unlimited number of partial withdrawals during that Contract Year. .. If the withdrawal is to avoid required Federal income tax penalties (not including Section 72(t) or (q) under the Internal Revenue Code) or to satisfy Federal income tax rules concerning minimum distribution requirements that apply to your Deferred Annuity. For purposes of this exception, we assume that the Deferred Annuity is the only Contract or funding vehicle from which distributions are required to be taken and we will ignore all other account balances. This exception does not apply if You have a Non-Qualified or Roth IRA Deferred Annuity. .. If You accept an amendment converting your Traditional IRA Deferred Annuity to a Roth IRA Deferred Annuity. .. If You properly "recharacterize" as permitted under Federal tax law your Traditional IRA Deferred Annuity or a Roth IRA Deferred Annuity using the same Deferred Annuity. .. This Contract feature is only available if You are less than 81 years old on the Contract issue date. After the first Contract Year, if approved in your state, and your Contract provides for this, to withdrawals to which a Withdrawal Charge would otherwise apply, if You have been either the Contract Owner continuously since the issue of the Contract or the spouse who continues the Contract: . Has been a resident of certain nursing home facilities or a hospital for a minimum of 90 consecutive days or for a minimum total of 90 days where there is no more than a 6 month break in that residency and the residencies are for related causes, where You have exercised this right no later than 90 days of exiting the nursing home facility or hospital. This Contract feature is not available in Massachusetts; or 54 . Is diagnosed with a terminal illness and not expected to live more than 12 months (24 months in the state of Massachusetts). .. This Contract feature is only available if You are less than 65 years old on the date You became disabled and if the disability commences subsequent to the first Contract Anniversary. After the first Contract Year, if approved in your state, and your Contract provides for this, if You are disabled as defined in the Federal Social Security Act (or as defined by the Internal Revenue Code for Oregon Contracts) and if You have been the Contract Owner continuously since the issue of the Contract or the spouse who continues the Contract. This Contract feature is not available in Massachusetts or Connecticut. .. If You have transferred money which is not subject to a Withdrawal Charge (because You have satisfied contractual provisions for a withdrawal without the imposition of a Contract Withdrawal Charge) from certain eligible MetLife Contracts or certain eligible Contracts of MetLife affiliates into the Deferred Annuity, and the withdrawal is of these transferred amounts and we agree. Any purchase payments made after the transfer are subject to the usual Withdrawal Charge schedule. .. Subject to availability in your state, if the early Withdrawal Charge that would apply if not for this provision (1) would constitute less than 0.50% of your Account Balance and (2) You transfer your total Account Balance to certain eligible Contracts issued by MetLife or one of its affiliated companies and we agree. GENERAL. We may elect to reduce or eliminate the amount of the Withdrawal Charge when the Contract is sold under circumstances which reduce our sales expenses. Some examples are: if there is a large group of individuals that will be purchasing the Contract, or if a prospective purchaser already had a relationship with us. FREE LOOK You may cancel your Deferred Annuity within a certain time period. This is known as a "free look." Not all Contracts issued are subject to free look provisions under state law. We must receive your request to cancel in writing by the appropriate day in your state, which varies from state to state. The time period may also vary depending on your age and whether You purchased your Deferred Annuity from us directly, through the mail or with money from another annuity or life insurance policy. Depending on state law, we may refund all of your purchase payments or your Account Balance as of the date your refund request is received at your Administrative Office in Good Order. Any Bonus does not become yours until after the "free look" period; we retrieve it if You exercise the "free look". Your exercise of any "free look" is the only circumstance under which the 3% credit will be retrieved (commonly called "recapture"). If your state requires us to refund your Account Balance, the refunded amount will include any investment performance attributable to the 3% credit. If there are any losses from investment performance attributable to the 3% credit, we will bear that loss. DEATH BENEFIT--GENERALLY One of the insurance guarantees we provide You under your Deferred Annuity is that your Beneficiaries will be protected during the "pay-in" phase against market downturns. You name your Beneficiary(ies). If You intend to purchase the Deferred Annuity for use with a Traditional IRA, Roth IRA, SEP or SIMPLE IRA, see "Income Taxes" for a discussion concerning IRAs. The basic death benefit is described below. The additional optional death benefits (the Annual Step-Up Death Benefit, the Greater of Annual Step-Up or 5% Annual Increase Death Benefit, the EDB I, and the Earnings Preservation Benefit) are described in the "Optional Death Benefits" section. Check your Contract and riders for the specific provisions applicable to You. One or more optional death benefits may not be available in your state (check with your registered representative 55 regarding availability). You may elect the Earnings Preservation Benefit with or without the Annual Step-Up Death Benefit or the Greater of Annual Step-Up or 5% Annual Increase Death Benefit. You may not elect the Annual Step-Up Death Benefit or the Greater of Annual Step-Up or 5% Annual Increase Death Benefit and/or the Earnings Preservation Benefit with the EDB I. The death benefits are described below. There may be versions of each optional death benefit that vary by issue date and state availability. In addition, a version of an optional death benefit may become available (or unavailable) in different states at different times. Please check with your registered representative regarding which version(s) are available in your state. If You have already been issued a Contract, please check your Contract and optional death benefits for the specific provisions applicable to You. The death benefit is determined as of the end of the business day on which we receive both due proof of death and an election for the payment method. If we are presented with notification of your death before any requested transaction is completed (including transactions under automated investment strategies, the Enhanced Dollar Cost Averaging Program, the automated required minimum distribution service and the Systematic Withdrawal Program), we will cancel the request. As described above, the death benefit will be determined when we receive due proof of death and an election for the payment method. Where there are multiple Beneficiaries, the death benefit will only be determined as of the time the first Beneficiary submits the necessary documentation in Good Order. If the death benefit payable is an amount that exceeds the Account Balance on the day it is determined, we will apply to the Contract an amount equal to the difference between the death benefit payable and the Account Balance, in accordance with the current allocation of the Account Balance. This death benefit amount remains in the Investment Divisions until each of the other Beneficiaries submits the necessary documentation in Good Order to claim his/her death benefit. Any death benefit amounts held in the Investment Divisions on behalf of the remaining Beneficiaries are subject to investment risk. There is no additional death benefit guarantee. Your Beneficiary has the option to apply the death benefit less any applicable premium taxes to a pay-out option offered under your Deferred Annuity. Your Beneficiary may, however, decide to take payment in one sum, including either by check, by placing the amount in an account that earns interest, or by any other method of payment that provides the Beneficiary with immediate and full access to the proceeds, or under other settlement options that we may make available. If You purchased the Contract as a deceased person's Beneficiary under an IRA, your Beneficiary may be limited by tax law as to the method of distribution of any death benefit. See "Income Taxes" for more information. If You are a non-natural person, then the life of the Annuitant is the basis for determining the death benefit. If there are joint Contract owners, the oldest of the two will be used as a basis for determining the death benefit. If You are a natural person and You change ownership of the Deferred Annuity to someone other than your spouse, the death benefit is calculated as described in the following pages except all values used to calculate the death benefit, which may include, Highest Anniversary Value as of each fifth Contract Anniversary, Highest Anniversary Value as of each Contract Anniversary and Annual Increase Amount (depending on whether You choose an optional benefit), are reset to the Account Balance on the date of the change in Contract Owner. SPOUSAL CONTINUATION. If the Beneficiary is your spouse, the Beneficiary may be substituted as the Contract Owner of the Deferred Annuity and continue the Contract under the terms and conditions of the Contract that applied prior to the owner's death, with certain exceptions described in the Contract. In that case, the Account Balance will be adjusted to equal the death benefit. (Any additional amounts added to the Account Balance will be allocated in the same proportions to each balance in an Investment Division, Enhanced Dollar Cost Averaging Program and the Fixed Account as each bears to the total Account Balance.) There would be a second death benefit payable upon the death of the spouse. The spouse is 56 permitted to make additional purchase payments. The spouse would not be permitted to choose any optional benefit available under the Contract, unless the deceased spouse had previously purchased the benefit at issue of the Contract. Any amounts in the Deferred Annuity would be subject to applicable Withdrawal Charges except for that portion of the Account Balance that is equal to the "step-up" portion of the death benefit. If the spouse continues the Deferred Annuity, the second death benefit is calculated as described in the following pages except all values used to calculate the death benefit, which may include the Highest Anniversary Value as of each fifth Contract Anniversary or the Highest Anniversary Value as of each Contract Anniversary, are reset to the Account Balance which has been adjusted to include the death benefit on the date the spouse continues the Deferred Annuity. If the Contract includes the GMIB Plus II or both the GMIB Plus II and the EDB I , the Annual Increase Amount for the GMIB Plus II or both the GMIB Plus II and the EDB I are also reset to the Account Balance which has been adjusted to include the death benefit on the date the spouse continues the Contract. Spousal continuation will not satisfy required minimum distribution rules for tax qualified Contracts other than IRAs. "STRETCH IRA" CONTRACTS. We permit your Beneficiary to hold the Traditional IRA Deferred Annuity in your name after your death for his/her benefit. We issue a new Deferred Annuity to your Beneficiary to facilitate the distribution of payments. The new Contract is issued in the same Contract class as your Contract, except, if You had a Bonus Class Deferred Annuity, the Contract is issued as a B Class Deferred Annuity. In that case the Account Balance would be reset to equal the death benefit on the date the Beneficiary submits the necessary documentation in Good Order. (Any additional amounts added to the Account Balance would be allocated in the same proportions to each balance in an Investment Division and the Fixed Account as each bears to the total Account Balance.) There would be a second death benefit payable upon the death of the Beneficiary. Your Beneficiary is permitted to make additional purchase payments consisting generally of monies which are direct transfers (as defined under the tax law) from other IRA Contracts in the name of the same decedent. Any additional purchase payments would be subject to applicable Withdrawal Charges. The Beneficiary may be permitted to choose some optional benefits available under the Contract, but certain Contract provisions or programs may not be available. If your Beneficiary holds the Traditional IRA Deferred Annuity in your name after your death for his/her benefit, the death benefit would be calculated as described in the following pages except all values used to calculate the death benefit, which may include, Highest Anniversary Value as of each fifth Contract Anniversary or Highest Anniversary Value as of each Contract Anniversary would be reset to the Account Balance which has been adjusted to include the death benefit on the date the Beneficiary then holds the Contract. If the Contract has the optional GMIB, the Annual Increase Amount is reset to the Account Balance which has been adjusted to include the death benefit on the date the Beneficiary then holds the Deferred Annuity. At the death of the Beneficiary, the Beneficiary's Beneficiary may be limited by tax law as to the method of distribution of any death benefit. "STRETCH NON-QUALIFIED" CONTRACTS. If available in your state, we permit your Beneficiary to hold the Non-Qualified Deferred Annuity in your name after your death for his/her benefit. We issue a new Deferred Annuity to your Beneficiary to facilitate the distribution of payments. The designated Beneficiary's interest in the Contract must be distributed in accordance with minimum required distribution rules for deferred annuities under the income tax regulations over a period no longer than the designated Beneficiary's single life expectancy with the distributions beginning within 12 months after the date of your death. The new Contract is issued in the same Contract class as your Contract, except, if You had a Bonus Class Deferred Annuity, the Contract is issued as a B Class Deferred Annuity. In that case the Account Balance would be reset to equal the death benefit on the date the Beneficiary submits the necessary documentation in Good Order. (Any additional amounts added to the Account Balance would be allocated in the same proportions to each balance in an Investment Division and the Fixed Account as each bears to the total Account Balance.) There would be a second death benefit payable upon the death of the Beneficiary. Your Beneficiary is permitted to make additional 57 purchase payments consisting generally of monies which are direct transfers (as defined under the tax law) from other non-qualified Contracts in the name of the same decedent. Any additional purchase payments would be subject to applicable Withdrawal Charges. The Beneficiary may be permitted to choose some of the optional benefits available under the Contract, but no optional living benefit options are available and certain Contract provisions or programs may not be available. If your Beneficiary holds the Non-Qualified Deferred Annuity in your name after your death for his/her benefit, the death benefit would be calculated as described in the following pages except all values used to calculate the death benefit, which may include, Highest Anniversary Value as of each fifth Contract Anniversary or Highest Anniversary Value as of each Contract Anniversary, would be reset to the Account Balance which has been adjusted to include the death benefit on the date the Beneficiary then holds the Contract. If the Contract has an optional GMIB, the Annual Increase Amount is reset to the Account Balance which has been adjusted to include the death benefit on the date the Beneficiary then holds the Deferred Annuity. At the death of the Beneficiary, the Beneficiary's Beneficiary may be limited by tax law and our administrative procedures as to the available methods and period of distribution of any death benefit. TOTAL CONTROL ACCOUNT. The Beneficiary may elect to have the Contract's death proceeds paid through a settlement option called the Total Control Account. The Total Control Account is an interest-bearing account through which the Beneficiary has immediate and full access to the proceeds, with unlimited draft writing privileges. We credit interest to the account at a rate that will not be less than a guaranteed minimum annual effective rate. You may also elect to have any Contract surrender proceeds paid into a Total Control Account established for You. Assets backing the Total Control Accounts are maintained in our general account and are subject to the claims of our creditors. We will bear the investment experience of such assets; however, regardless of the investment experience of such assets, the interest credited to the Total Control Account will never fall below the applicable guaranteed minimum annual effective rate. Because we bear the investment experience of the assets backing the Total Control Accounts, we may receive a profit from these assets. The Total Control Account is not insured by the FDIC or any other governmental agency. EDB I AND DECEDENT CONTRACTS. If You are purchasing this Contract with a non-taxable transfer of death proceeds of any annuity Contract or IRA (or any other tax-qualified arrangement) of which You were the Beneficiary and You are "stretching" the distributions under the Internal Revenue Code required distribution rules, You may not purchase the EDB I. BASIC DEATH BENEFIT The Basic Death Benefit is designed to provide protection against adverse investment experience. In general, it guarantees that the death benefit will not be less than the greatest of (1) your Account Balance; (2) total purchase payment less partial withdrawals; or (3) your "Highest Anniversary Value" (as described below) as of each fifth Contract Anniversary. If You die during the pay-in phase and You have not chosen one of the optional death benefits, the death benefit the Beneficiary receives will be equal to the greatest of: 1. Your Account Balance; or 2. Total purchase payments reduced proportionately by the percentage reduction in Account Balance attributable to each partial withdrawal (including any applicable Withdrawal Charge); or 3. "Highest Anniversary Value" as of each fifth Contract Anniversary, determined as follows: . At issue, the Highest Anniversary Value is your initial purchase payment; . Increase the Highest Anniversary Value by each subsequent purchase payment; 58 . Reduce the Highest Anniversary Value proportionately by the percentage reduction in Account Balance attributable to each subsequent partial withdrawal (including any applicable Withdrawal Charge); . On each fifth Contract Anniversary before your 81st birthday, compare the (1) then-Highest Anniversary Value to the (2) current Account Balance and (3) total purchase payments reduced proportionately by the percentage reduction in Account Balance attributable to each partial withdrawal (including any applicable Withdrawal Charge) and set the Highest Anniversary Value equal to the greatest of the three. . After the Contract Anniversary immediately preceding your 81st birthday, adjust the Highest Anniversary Value only to: . Increase the Highest Anniversary Value by each subsequent purchase payment or . Reduce the Highest Anniversary Value proportionately by the percentage reduction in Account Balance attributable to each subsequent partial withdrawal (including any applicable Withdrawal Charge). For purposes of determining the Highest Anniversary Value as of the applicable Contract Anniversary, purchase payments increase the Highest Anniversary Value on a dollar for dollar basis. Partial withdrawals however, reduce the Highest Anniversary Value proportionately, that is the percentage reduction is equal to the dollar amount of the withdrawal (plus applicable Withdrawal Charges) divided by the Account Balance before the withdrawal. EXAMPLE:
------------------------------------------------------------------------------------------------------ Date Amount ------------------------------ ------------------------ A Initial Purchase Payment 10/1/2013 $100,000 ------------------------------------------------------------------------------------------------------ B Account Balance 10/1/2014 $104,000 (First Contract Anniversary) ------------------------------------------------------------------------------------------------------ C Death Benefit As of 10/1/2014 $104,000 (= greater of A and B) ------------------------------------------------------------------------------------------------------ D Account Balance 10/1/2015 $90,000 (Second Contract Anniversary) ------------------------------------------------------------------------------------------------------ E Death Benefit 10/1/2015 $100,000 (= greater of A and D) ------------------------------------------------------------------------------------------------------ F Withdrawal 10/2/2015 $9,000 ------------------------------------------------------------------------------------------------------ G Percentage Reduction in Account Balance 10/2/2015 10% (= F/D) ------------------------------------------------------------------------------------------------------ H Account Balance after Withdrawal 10/2/2015 $81,000 (= D-F) ------------------------------------------------------------------------------------------------------ I Purchase Payments reduced for Withdrawal As of 10/2/2015 $90,000 (= A-(A X G)) ------------------------------------------------------------------------------------------------------ J Death Benefit 10/2/2015 $90,000 (= greater of H and I) ------------------------------------------------------------------------------------------------------ K Account Balance 10/1/2018 $125,000 ------------------------------------------------------------------------------------------------------ L Death Benefit (Highest Anniversary Value) As of 10/1/2018 $125,000 (Fifth Contract Anniversary) (= greater of I and K) ------------------------------------------------------------------------------------------------------ M Account Balance 10/2/2018 $110,000 ------------------------------------------------------------------------------------------------------ N Death Benefit As of 10/2/2018 $125,000 (= greatest of I, L, M) ------------------------------------------------------------------------------------------------------
59 Notes to Example Purchaser is age 60 at issue. Any Withdrawal Charge withdrawn from the Account Balance is included when determining the percentage of Account Balance withdrawn. Account Balances on 10/1/15 and 10/2/15 are assumed to be equal prior to the withdrawal. OPTIONAL DEATH BENEFITS ANNUAL STEP-UP DEATH BENEFIT The Annual Step-Up Death Benefit is designed to provide protection against adverse investment experience. In general, it guarantees that the death benefit will not be less than the greater of (1) your Account Balance; or (2) your "Highest Anniversary Value" (as described below) as of each Contract Anniversary. You may purchase at application a death benefit that provides that the death benefit amount is equal to the greater of: 1. The Account Balance; or 2. "Highest Anniversary Value" as of each Contract Anniversary, determined as follows: . At issue, the Highest Anniversary Value is your initial purchase payment; . Increase the Highest Anniversary Value by each subsequent purchase payment; . Reduce the Highest Anniversary Value proportionately by the percentage reduction in Account Balance attributable to each subsequent partial withdrawal (including any applicable Withdrawal Charge); . On each Contract Anniversary before your 81st birthday, compare the (1) then-Highest Anniversary Value to the (2) current Account Balance and set the Highest Anniversary Value equal to the greater of the two. . After the Contract Anniversary immediately preceding your 81st birthday, adjust the Highest Anniversary Value only to: . Increase the Highest Anniversary Value by each subsequent purchase payment or . Reduce the Highest Anniversary Value proportionately by the percentage reduction in Account Balance attributable to each subsequent partial withdrawal (including any applicable Withdrawal Charge). For purposes of determining the Highest Anniversary Value as of the applicable Contract Anniversary, purchase payments increase the Highest Anniversary Value on a dollar for dollar basis. Partial withdrawals, however, reduce the Highest Anniversary Value proportionately, that is, the percentage reduction is equal to the dollar amount of the withdrawal (plus applicable Withdrawal Charges) divided by the Account Balance immediately before the withdrawal. You may not purchase this benefit if You are 80 years of age or older. 60 The Annual Step-Up Death Benefit is available in Deferred Annuities purchased after April 30, 2003, for an additional charge, of 0.20% annually of the average daily value of the amount You have in the Separate Account. EXAMPLE:
------------------------------------------------------------------------------------------------------------- Date Amount ------------------------------ ----------------------- A Initial Purchase Payment 10/1/2013 $100,000 ------------------------------------------------------------------------------------------------------------- B Account Balance 10/1/2014 $104,000 (First Contract Anniversary) ------------------------------------------------------------------------------------------------------------- C Death Benefit (Highest Anniversary Value) As of 10/1/2014 $104,000 (= greater of A and B) ------------------------------------------------------------------------------------------------------------- D Account Balance 10/1/2015 $90,000 (Second Contract Anniversary) ------------------------------------------------------------------------------------------------------------- E Death Benefit (Highest Contract Year Anniversary) 10/1/2015 $104,000 (= greater of B and D) ------------------------------------------------------------------------------------------------------------- F Withdrawal 10/2/2015 $9,000 ------------------------------------------------------------------------------------------------------------- G Percentage Reduction in Account Balance 10/2/2015 10% (= F/D) ------------------------------------------------------------------------------------------------------------- H Account Balance after Withdrawal 10/2/2015 $81,000 (= D-F) ------------------------------------------------------------------------------------------------------------- I Highest Anniversary Value reduced for Withdrawal As of 10/2/2015 $93,600 (= E-(E X G)) ------------------------------------------------------------------------------------------------------------- J Death Benefit 10/2/2015 $93,600 (= greater of H and I) -------------------------------------------------------------------------------------------------------------
Notes to Example Purchaser is age 60 at issue. Any Withdrawal Charge withdrawn from the Account Balance is included when determining the percentage of Account Balance withdrawn. The Account Balances on 10/1/15 and 10/2/15 are assumed to be equal prior to the withdrawal. GREATER OF ANNUAL STEP-UP OR 5% ANNUAL INCREASE DEATH BENEFIT In states where approved, only one of either the Greater of Annual Step-Up or 5% Annual Increase Death Benefit or the EDB I will be available. The Greater of Annual Step-Up or 5% Annual Increase Amount Death Benefit is designed to protect against adverse investment experience. In general, it provides that the death benefit will be not less than the greatest of (1) your Account Balance, (2) the "Annual Increase Amount" which is the total of your purchase payments (adjusted for withdrawals) accumulated at 5% per year or (3) your "Highest Anniversary Value", as described below. You may purchase at application a death benefit that provides that the death benefit amount is equal to the greatest of: 1. Your Account Balance; 2. The Annual Increase Amount which is equal to the sum total of each purchase payment accumulated at a rate of 5% a year, through the Contract Anniversary date immediately preceding your 81st birthday, reduced by the sum total of each withdrawal adjustment accumulated at the rate of 5% a year from the date of the withdrawal (the withdrawal 61 adjustment is the Annual Increase Amount immediately prior to the withdrawal multiplied by the percentage reduction in Account Balance attributable to the withdrawal) (including any applicable withdrawal charge); or 3. "Highest Anniversary Value" as of each Contract Anniversary, determined as follows: . At issue, the Highest Anniversary Value is your initial purchase payment; . Increase the Highest Anniversary Value by each subsequent purchase payment; . Reduce the Highest Anniversary Value proportionately by the percentage reduction in Account Balance attributable to each subsequent partial withdrawal (including any applicable Withdrawal Charge); . On each Contract Anniversary before your 81st birthday, compare the (1) then-Highest Anniversary Value to the (2) current Account Balance and set the Highest Anniversary Value equal to the greater of the two. . After the Contract Anniversary immediately preceding your 81st birthday, adjust the Highest Anniversary Value only to: . Increase the Highest Anniversary Value by each subsequent purchase payment or . Reduce the Highest Anniversary Value proportionately by the percentage reduction in Account Balance attributable to each subsequent partial withdrawal (including any applicable Withdrawal Charge). For purposes of determining the Highest Anniversary Value as of the applicable Contract Anniversary, purchase payments increase the Highest Anniversary Value on a dollar for dollar basis. Partial withdrawals, however, reduce the Highest Anniversary Value proportionately, that is the percentage reduction is equal to the dollar amount of the withdrawal (plus applicable Withdrawal Charges), divided by the Account Balance immediately before the withdrawal. You may not purchase this benefit if You are 80 years of age or older. 62 The Greater of Annual Step-Up or 5% Annual Increase Death Benefit is available in Deferred Annuities purchased after April 30, 2003, for an additional charge, of 0.35% annually of the average daily value of the amount You have in the Separate Account. EXAMPLE:
------------------------------------------------------------------------------------------------------------- Date Amount ------------------------------ ----------------------------- A Initial Purchase Payment 10/1/2013 $100,000 ------------------------------------------------------------------------------------------------------------- B Account Balance 10/1/2014 $104,000 (First Contract Anniversary) ------------------------------------------------------------------------------------------------------------- C1 Account Balance (Highest Anniversary Value) 10/1/2014 $104,000 (= greater of A and B) ------------------------------------------------------------------------------------------------------------- C2 5% Annual Increase Amount 10/1/2014 $105,000 (= A X 1.05) ------------------------------------------------------------------------------------------------------------- C3 Death Benefit As of 10/1/2014 $105,000 (= greater of C1 and C2) ------------------------------------------------------------------------------------------------------------- D Account Balance 10/1/2015 $90,000 (Second Contract Anniversary) ------------------------------------------------------------------------------------------------------------- E1 Highest Anniversary Value 10/1/2015 $104,000 (= greater of C1 and D) ------------------------------------------------------------------------------------------------------------- E2 5% Annual Increase Amount As of 10/1/2015 $110,250 (= A X 1.05 X 1.05) ------------------------------------------------------------------------------------------------------------- E3 Death Benefit 10/1/2015 $110,250 (= greater of E1 and E2) ------------------------------------------------------------------------------------------------------------- F Withdrawal 10/2/2015 $9,000 ------------------------------------------------------------------------------------------------------------- G Percentage Reduction in Account Balance 10/2/2015 10% (= F/D) ------------------------------------------------------------------------------------------------------------- H Account Balance after Withdrawal 10/2/2015 $81,000 (= D-F) ------------------------------------------------------------------------------------------------------------- I1 Highest Anniversary Value reduced for As of 10/2/2015 $93,600 Withdrawal (= E1-(E1 X G)) ------------------------------------------------------------------------------------------------------------- I2 5% Annual Increase Amount reduced for As of 10/2/2015 $99,238 Withdrawal (= E2-(E2 X G). Note: E2 includes additional day of interest at 5%) ------------------------------------------------------------------------------------------------------------- I3 Death Benefit 10/2/2015 $99,238 (= greatest of H, I1 and I2) -------------------------------------------------------------------------------------------------------------
Notes to Example Purchaser is age 60 at issue. Any Withdrawal Charge withdrawn from the Account Balance is included when determining the percentage of Account Balance withdrawn. The Account Balances on 10/1/15 and 10/02/15 are assumed to be equal prior to the withdrawal. All amounts are rounded to the nearest dollar. 63 THE EDB I The EDB I is no longer available for purchase. The EDB I was available (subject to investment allocation restrictions) if You were age 75 or younger at the effective date of your Contract and You had not elected any optional living benefit (other than the GMIB Plus II, which is also known as the "Predictor Plus II" in our sales literature and advertising ). The EDB I is not available in the State of Oregon or with a B Plus Class or C Class Contract in Washington or New York State. DESCRIPTION OF THE EDB I. If you select the EDB I, the amount of the death benefit will be the greater of: (1)The Account Balance; or (2)The Death Benefit Base. The Death Benefit Base provides protection against adverse investment experience. It guarantees that the death benefit will not be less than the greater of: (1) the highest Account Balance on any Contract Anniversary (adjusted for withdrawals), or (2) the amount of your initial investment (adjusted for withdrawals), accumulated at 5%. The Death Benefit Base is the greater of (a) or (b) below: (a)Highest Anniversary Value: On the date we issue your contract, the Highest Anniversary Value is equal to your initial purchase payment. Thereafter, the Highest Anniversary Value will be increased by subsequent purchase payments and reduced proportionately by the percentage reduction in Account Balance attributable to each partial withdrawal (including any applicable Withdrawal Charge). The percentage reduction in Account Balance is the dollar amount of the withdrawal (including any applicable Withdrawal Charge) divided by the Account Balance immediately preceding such withdrawal. On each Contract Anniversary prior to your 81st birthday, the Highest Anniversary Value will be recalculated to equal the greater of the Highest Anniversary Value before the recalculation or the Account Balance on the date of the recalculation. (b)Annual Increase Amount: On the date we issue your contract, the Annual Increase Amount is equal to your initial purchase payment. All purchase payments received within 120 days of the date we issue your contract will be treated as part of the initial purchase payment for this purpose. Thereafter, the Annual Increase Amount is equal to (i) less (ii), where: (i)is purchase payments accumulated at the Annual Increase Rate (as defined below) from the date the purchase payment is made; and (ii)is withdrawal adjustments (as defined below) accumulated at the Annual Increase Rate. The Highest Anniversary Value and Annual Increase Amount are calculated independently of each other. When the Highest Anniversary Value is recalculated and set equal to the Account Balance, the Annual Increase Amount is not set equal to the Account Balance. See "Optional Step-Up" below for a feature that can be used to reset the Annual Increase Amount to the Account Balance. ANNUAL INCREASE RATE. As noted above, we calculate a Death Benefit Base under the EDB I that helps determine the amount of the death benefit. One of the factors used in calculating the Death Benefit Base is called the "annual increase rate". Through the Contract Anniversary immediately prior to your 91st birthday, the Annual Increase Rate is 5%. On the first Contract Anniversary, "at the beginning of the Contract Year" means on the issue date, on a later Contract Anniversary, "at the beginning of the Contract Year" means on the prior Contract Anniversary. 64 After the Contract Anniversary immediately prior to the owner's 91st birthday, the Annual Increase Rate is 0%. WITHDRAWAL ADJUSTMENTS. Withdrawal adjustments in a Contract Year are determined according to (a) or (b): (a)The withdrawal adjustment for each withdrawal in a Contract Year is the value of the Annual Increase Amount immediately prior to the withdrawal multiplied by the percentage reduction in Account Balance attributable to that partial withdrawal (including any applicable withdrawal charge); or (b)(1) if total withdrawals in a Contract Year are not greater than the Annual Increase Rate multiplied by the Annual Increase Amount at the beginning of the Contract Year; (2) if the withdrawals occur before the Contract Anniversary immediately prior to your 91st birthday; and (3) if these withdrawals are payable to the Contract Owner (or the Annuitant, if the Contract Owner is a non-natural person) or to another payee we agree to, the total withdrawal adjustments for that Contract Year will be set equal to the dollar amount of total withdrawals (including any applicable withdrawal charge) in that Contract Year. These withdrawal adjustments will replace the withdrawal adjustments defined in (a), immediately above, and will be treated as though the corresponding withdrawals occurred at the end of that Contract Year. As described in (a), immediately above, if in any Contract Year you take cumulative withdrawals that exceed the Annual Increase Rate multiplied by the Annual Increase Amount at the beginning of the Contract Year, the Annual Increase Amount will be reduced in the same proportion that the entire withdrawal (including any applicable withdrawal charge) reduced the Account Balance. This reduction may be significant, particularly when the Account Balance is lower than the Annual Increase Amount, and could have the effect of reducing or eliminating the value of the death benefit under the EDB I. Complying with the three conditions described in (b) immediately above (including limiting your cumulative withdrawals during a Contract Year to not more than the Annual Increase Rate multiplied by the Annual Increase Amount at the beginning of the Contract Year) will result in dollar-for-dollar treatment of the withdrawals. The Highest Anniversary Value does not change after the Contract Anniversary immediately preceding your 81st birthday, except that it is increased for each subsequent purchase payment and reduced proportionately by the percentage reduction in Account Balance attributable to each subsequent withdrawal (including any applicable withdrawal charge). The Annual Increase Amount does not change after the Contract Anniversary immediately preceding your 91st birthday, except that it is increased for each subsequent purchase payment and reduced by the withdrawal adjustments described above. For Contracts for which applications and necessary information were received at your Administrative Office on or before May 1, 2009, we offered a version of the EDB I that is no longer available. The prior version is the same as the current version except that the annual increase rate for the Annual Increase Amount and for withdrawal adjustments is 6%, with respect to section 2(a) above, different investment allocation restrictions apply and different charges apply. TAXES. Withdrawals of taxable amounts will be subject to ordinary income tax and, if made prior to age 591/2, a 10% Federal income tax penalty may apply. OPTIONAL STEP-UP On each Contract Anniversary as permitted, You may elect to reset the Annual Increase Amount to the Account Balance. An Optional Step-Up may be beneficial if your Account Balance has grown at a rate above the Annual Increase Rate or the Annual Increase Amount (5%). As described below, an Optional Step-Up resets the Annual Increase Amount to the Account Balance. After an Optional Step-Up, the Annual Increase Rate will be applied to the new, higher Annual Increase Amount and therefore the amount that may be withdrawn without reducing the Annual Increase Amount on a proportionate basis will increase. HOWEVER, IF YOU ELECT TO RESET THE ANNUAL INCREASE AMOUNT, WE MAY RESET THE EDB I CHARGE TO A RATE THAT DOES NOT EXCEED THE LOWER OF: (A) THE MAXIMUM OPTIONAL STEP-UP CHARGE (1.50%) OR (B) THE 65 CURRENT RATE THAT WE WOULD CHARGE FOR THE SAME OPTIONAL BENEFIT AVAILABLE FOR NEW CONTRACT PURCHASES AT THE TIME OF THE OPTIONAL STEP-UP. An Optional Step-Up is permitted only if: (1) the Account Balance exceeds the Annual Increase Amount immediately before the step-up; and (2) the Contract Owner (or oldest joint Contract Owner or Annuitant if the Deferred Annuity is owned by a non-natural person) is not older than age 80 on the date of the Optional Step-Up. If your Deferred Annuity has both the GMIB Plus II optional benefit and the EDB I optional benefit, and You would like to elect an Optional Step-Up, You must elect an Optional Step-Up for both optional benefits. You may not elect an Optional Step-Up for only one of the two optional benefits. Upon the Optional Step-Up, we may reset the optional benefit charge, as described above, on one or both optional benefits. You may elect either: (1) a one-time Optional Step-Up at any Contract Anniversary provided the above requirements are met, or (2) Optional Step-Ups to occur under the Automatic Annual Step-Up. If You elect Automatic Annual Step-Ups, on any Contract Anniversary while this election is in effect, the Annual Increase Amount will reset to the Account Balance automatically, provided the above requirements are met. The same conditions described above will apply to each Automatic Step-Up. You may discontinue this election at any time by notifying us in writing, at your Administrative Office (or by any other method acceptable to us), at least 30 days prior to the Contract Anniversary on which an Optional Step-Up may otherwise occur. Otherwise, it will remain in effect through the seventh Contract Anniversary following the date You make this election, at which point You must make a new election if You want Automatic Annual Step-Ups to continue. If You discontinue or do not re-elect the Automatic Annual Step-Ups, no Optional Step-Up will occur automatically on any subsequent Contract Anniversary unless You make a new election under the terms described above. (If You discontinue Automatic Annual Step-Ups, the optional benefit (and the charge) will continue, and You may choose to elect a one time Optional Step-Up or reinstate Automatic Annual Step-Ups as described above.) We must receive your request to exercise the Optional Step-Up in writing or any other method acceptable to us. We must receive your request prior to the Contract Anniversary for an Optional Step-Up to occur on that Contract Anniversary. The Optional Step-Up: a) resets the Annual Increase Amount to the Account Balance on the Contract Anniversary following the receipt of an Optional Step-Up election; and b) may reset the EDB I charge to a rate that does not exceed the lower of: (a) the maximum Optional Step-Up charge (1.50%) or (b) the current rate that we would charge for the same optional benefit available for new Contract purchases at the time of the Optional Step-Up. In the event that the charge applicable to Deferred Annuity purchases at the time of the step-up is higher than your current charge, You will be notified in writing a minimum of 30 days in advance of the applicable Contract Anniversary and be informed that You may choose to decline the Automatic Annual Step-Up. If You choose to decline the Automatic Annual Step-Up, You must notify us in writing at your Administrative Office no less than seven calendar days prior to the applicable Contract Anniversary. Once You notify us of your decision to decline the Automatic Annual Step-Up, You will no longer be eligible for future Automatic Annual Step-Ups until You notify us in writing at your Administrative Office that You wish to reinstate the step-ups. This reinstatement will take effect at the next Contract Anniversary after we receive your request for reinstatement. On the date of the optional step-up, the Account Balance on that day will be treated as a single purchase payment received on the date of the step-up for purposes of determining the Annual Increase Amount after the step-up. All purchase payments and withdrawal adjustments previously used to calculate the annual increase amount will be set equal to zero on the date of the step-up. 66 INVESTMENT ALLOCATION RESTRICTIONS. If You elect the EDB I, there are certain investment allocation restrictions. Please see "Investment Allocation Restrictions For Certain Optional Benefits." If You elect the EDB I, You may not participate in the Equity Generator or the Allocator. However You may elect to participate in the Enhanced Dollar Cost Averaging ("EDCA") program, provided that your destination investment choices are selected in accordance with the investment allocation restrictions. RESTRICTIONS ON SUBSEQUENT PURCHASE PAYMENTS. Subsequent purchase payment restrictions under EDB I are restricted as described in "Your Investment Choices -- Restrictions on Subsequent Purchase Payments -- GMIB I, GMIB Plus I, GMIB Plus II, GWB I, Enhanced GWB, LWG I, LWG II, GMAB and EDB I." TERMINATION OF THE EDB I. The EDB I will terminate upon the earliest of: (a)The date You make a total withdrawal of your Account Balance (pro rata portion of the annual optional benefit charge will be assessed); (b)The date there are insufficient funds to deduct the annual optional benefit charge from your Account Balance; (c)The date You elect to receive income payments under your Contract (a pro rata portion of the annual optional benefit charge will be assessed); (d)A change of the Contract Owner or joint Contract Owner (or Annuitant if the Contract Owner is a non-natural person), subject to our administrative procedures (a pro rata portion of the annual optional benefit charge will be assessed); (e)The date You assign your Contract, subject to our administrative procedures (a pro rata portion of the annual optional benefit charge will be assessed); (f)The date the death benefit amount is determined (excluding the determination of the death benefit amount under the spousal continuation option); or (g)Termination of the Deferred Annuity to which the benefit is attached. Under our current administrative procedures, we will waive the termination of the EDB I if You assign a portion of the Contract under the following limited circumstances. If the assignment is solely for your benefit on account of your direct transfer of the Account Balance under Section 1035 of the Code to fund premiums for a long term care insurance policy or purchase payments for an annuity Contract issued by an insurance company which is not our affiliate and which is licensed to conduct business in any state. All such direct transfers are subject to any applicable Withdrawal Charges. THE EDB I AND ANNUITIZATION. Since the annuity date at the time You purchase the Deferred Annuity is the later of age 90 of the Annuitant or 10 years after issue of your Deferred Annuity, You must make an election if You would like to extend your annuity date to the latest date permitted (subject to restrictions that may apply in your state, restrictions imposed by your selling firm, and our current established administrative procedures). If You elect to extend your annuity date to the latest date permitted, and that date is reached, your Deferred Annuity must be annuitized (See "Pay-Out Options (or Income Options)"), or You must make a complete withdrawal of your Account Balance. Generally, once your Deferred Annuity is annuitized, You are ineligible to receive the death benefit selected. However, for Deferred Annuities purchased with an EDB I, if You annuitize at the latest date permitted, You must elect one of the following options: (1)Annuitize the Account Balance under the Deferred Annuity's pay-out option provisions; or (2)Elect to receive income payments determined by applying the Death Benefit Base to the greater of the guaranteed annuity rates for this Deferred Annuity at the time of purchase or the current annuity rates applicable to this class of Deferred Annuity. If you die before the complete return of the Death Benefit Base, your Beneficiary will receive a lump sum equal to the death benefit determined at annuitization less income payments already paid to the Contract Owner. 67 If you fail to select one of the above options, we will annuitize your Deferred Annuity under the Lifetime Income Annuity with a 10 Year Guarantee Period income payment type, unless the payment under option (2) above is greater, in which case we will apply option (2) to your Deferred Annuity. EDB I -- EXAMPLES The purpose of these examples is to illustrate the operation of the Death Benefit Base under the EDB I. (1)WITHDRAWAL ADJUSTMENTS TO ANNUAL INCREASE AMOUNT Dollar-for-dollar adjustment when withdrawal is less than or equal to 5% of the Annual Increase Amount from the prior Contract Anniversary Assume the initial purchase payment is $100,000 and the EDB I is selected. Assume that during the first Contract Year, $5,000 is withdrawn. Because the withdrawal is less than or equal to 5% of the Annual Increase Amount from the prior Contract Anniversary, the Annual Increase Amount is reduced by the withdrawal on a dollar-for-dollar basis to $100,000 ($100,000 increased by 5% per year, compounded annually, less $5,000 = $100,000). Assuming no other purchase payments or withdrawals are made before the second Contract Anniversary, the Annual Increase Amount at the second Contract Anniversary will be $105,000 ($100,000 increased by 5% per year, compounded annually). Proportionate adjustment when withdrawal is greater than 5% of the Annual Increase Amount from the prior Contract Anniversary Assume the initial purchase payment is $100,000 and the EDB I is selected. Assume the Account Balance at the first Contract Anniversary is $100,000. The Annual Increase Amount at the first Contract Anniversary will be $105,000 ($100,000 increased by 5% per year, compounded annually). Assume that on the first Contract Anniversary, $10,000 is withdrawn (leaving an account balance of $90,000). Because the withdrawal is greater than 5% of the Annual Increase Amount from the prior Contract Anniversary, the Annual Increase Amount is reduced by the value of the Annual Increase Amount immediately prior to the withdrawal ($105,000) multiplied by the percentage reduction in the Account Balance attributed to that withdrawal (10%). Therefore, the new Annual Increase Amount is $94,500 ($105,000 x 10% = $10,500; $105,000 - $10,500 = $94,500). Assuming no other purchase payments or withdrawals are made before the second Contract Anniversary, the Annual Increase Amount at the second Contract Anniversary will be $99,225 ($94,500 increased by 5% per year, compounded annually). (2)THE ANNUAL INCREASE AMOUNT Example Assume the Contract Owner is a male, age 55 at issue, and he elects the EDB I. He makes an initial purchase payment of $100,000, and makes no additional purchase payments or partial withdrawals. On the Contract issue date, the Annual Increase Amount is equal to $100,000 (the initial purchase payment). The Annual Increase Amount is calculated at each Contract Anniversary (through the Contract Anniversary on or following the Contract Owner's 90th birthday). At the tenth Contract Anniversary, when the Contract Owner is age 65, the Annual Increase Amount is $162,889 ($100,000 increased by 5% per year, compounded annually). See section (3) below for an example of the calculation of the Highest Anniversary Value. Determining a death benefit based on the Annual Increase Amount Assume that You make an initial purchase payment of $100,000. Prior to annuitization, your Account Balance fluctuates above and below your initial purchase payment depending on the investment performance of the subaccounts You selected. The Annual Increase Amount, however, accumulates an amount equal to your purchase payments at the Annual Increase Rate of 5% per year, until the Contract Anniversary on or following the Contract Owner's 90th birthday. The Annual Increase Amount is also adjusted for any withdrawals (including any applicable 68 Withdrawal Charge) made during this period. The Annual Increase Amount is the value upon which a future death benefit amount can be based (if it is greater than the Highest Anniversary Value and Account Balance on the date the death benefit amount is determined). (3)THE HIGHEST ANNIVERSARY VALUE Example Assume, as in the example in section (2) above, the Contract Owner is a male, age 55 at issue, and he elects the EDB I. He makes an initial purchase payment of $100,000, and makes no additional purchase payments or partial withdrawals. On the Contract issue date, the Highest Anniversary Value is equal to $100,000 (the initial purchase payment). Assume the Account Balance on the first Contract Anniversary is $108,000 due to good market performance. Because the Account Balance is greater than the Highest Anniversary Value ($100,000), the Highest Anniversary Value is set equal to the Account Balance ($108,000). Assume the Account Balance on the second Contract Anniversary is $102,000 due to poor market performance. Because the Account Balance is less than the Highest Anniversary Value ($108,000), the Highest Anniversary Value remains $108,000. Assume this process is repeated on each Contract Anniversary until the tenth Contract Anniversary, when the Account Balance is $155,000 and the Highest Anniversary Value is $150,000. The Highest Anniversary Value is set equal to the Account Balance ($155,000). Determining a death benefit based on the Highest Anniversary Value Prior to annuitization, the Highest Anniversary Value begins to lock in growth. The Highest Anniversary Value is adjusted upward each Contract Anniversary if the Account Balance at that time is greater than the amount of the current Highest Anniversary Value. Upward adjustments will continue until the Contract Anniversary immediately prior to the Contract Owner's 81st birthday. The Highest Anniversary Value also is adjusted for any withdrawals taken (including any applicable Withdrawal Charge) or any additional payments made. The Highest Anniversary Value is the value upon which a future death benefit amount can be based (if it is greater than the Annual Increase Amount and Account Balance on the date the death benefit amount is determined). (4)PUTTING IT ALL TOGETHER Example Continuing the examples in sections (2) and (3) above, assume the Contract Owner dies after the tenth Contract Anniversary but prior to the eleventh Contract Anniversary, and on the date the death benefit amount is determined, the Account Balance is $150,000 due to poor market performance. Because the 5% Annual Increase Amount ($162,889) is greater than the Highest Anniversary Value ($155,000), the 5% Annual Increase Amount ($162,889) is used as the Death Benefit Base. Because the Death Benefit Base ($162,889) is greater than the Account Balance ($150,000), the Death Benefit Base will be the death benefit amount. The above example does not take into account the impact of premium and other taxes. THE DEATH BENEFIT BASE IS NOT AVAILABLE FOR CASH WITHDRAWALS AND IS ONLY USED FOR PURPOSES OF CALCULATING THE DEATH BENEFIT AMOUNT AND THE CHARGE FOR THE BENEFIT. (5)THE OPTIONAL STEP-UP Assume your initial purchase payment is $100,000 and no withdrawals are taken. The Annual Increase Amount increases to $105,000 on the first anniversary ($100,000 increased by 5% per year, compounded annually). Assume your Account Balance at the first Contract Anniversary is $110,000 due to good market performance, and You elect an Optional Step-Up. 69 The effect of the Optional Step-Up election is: (1)The Annual Increase Amount resets from $105,000 to $110,000; and (2)The EDB I charge is reset to the fee we charge new Contract Owners for the EDB I at that time. The Annual Increase Amount increases to $115,500 on the second anniversary ($110,000 increased by 5% per year, compounded annually). Assume your Account Balance at the second Contract Anniversary is $112,000 due to poor market performance. You may NOT elect an Optional Step-Up at this time, because the Account Balance is less than the Annual Increase Amount. (6)THE OPTIONAL STEP-UP: AUTOMATIC ANNUAL STEP-UP Assume your initial purchase payment is $100,000 and no withdrawals are taken. The Annual Increase Amount increases to $105,000 on the first anniversary ($100,000 increased by 5% per year, compounded annually). Assume your Account Balance at the first Contract Anniversary is $110,000 due to good market performance, and You elected Optional Step-Ups to occur under the Automatic Annual Step-Up feature prior to the first Contract Anniversary. Because your Account Balance is higher than your Annual Increase Amount, an Optional Step-Up will automatically occur. The effect of the Optional Step-Up is: (1)The Annual Increase Amount automatically resets from $105,000 to $110,000; and (2)The EDB I charge is reset to the fee we charge new Contract Owners for the EDB I at that time. The Annual Increase Amount increases to $115,500 on the second anniversary ($110,000 increased by 5% per year, compounded annually). Assume your Account Balance at the second Contract Anniversary is $120,000 due to good market performance, and You have not discontinued the Automatic Annual Step-Up feature. Because your Account Balance is higher than your Annual Increase Amount, an Optional Step-Up will automatically occur. The effect of the Optional Step-Up is: (1)The Annual Increase Amount automatically resets from $115,500 to $120,000; and (2)The EDB I charge is reset to the fee we charge new Contract Owners for the EDB I at that time. Assume your Account Balance increases by $10,000 at each Contract Anniversary in years three through seven. At each Contract Anniversary, your Account Balance would exceed the Annual Increase Amount and an Optional Step-Up would automatically occur (provided You had not discontinued the Automatic Annual Step-Up feature, and other requirements were met). The effect of the Optional Step-Up is: (1)The Annual Increase Amount automatically resets to the higher Account Balance; and (2)The EDB I charge is reset to the fee we charge new Contract Owners for the EDB I at that time. After the seventh Contract Anniversary, the initial Automatic Annual Step-Up election expires. Assume You do not make a new election of the Automatic Annual Step-Up. The Annual Increase Amount increases to $178,500 on the eighth anniversary ($170,000 increased by 5% per year, compounded annually). Assume your Account Balance at the eighth Contract Anniversary is $160,000 due to poor market performance. An Optional Step-Up is NOT permitted because your Account Balance is lower than your Annual Increase Amount. However, because the Optional Step-Up has locked-in previous gains, the Annual Increase Amount remains at $178,500 despite poor market performance, 70 and, provided the optional benefit continues in effect, will continue to grow at 5% annually (subject to adjustments for additional purchase payments and/or withdrawals) through the Contract Anniversary on or after your 90th birthday. Also, note the EDB I charge remains at its current level. EARNINGS PRESERVATION BENEFIT You may purchase this benefit at application. The Earnings Preservation Benefit is intended to provide additional amounts at death to pay expenses that may be due upon your death. We do not guarantee that the amounts provided by the Earnings Preservation Benefit will be sufficient to cover any such expenses that your heirs may have to pay. This benefit provides that an additional death benefit is payable equal to: The difference between 1. Your death benefit (either the basic death benefit or an optional death benefit for which You pay an additional charge); and 2. Total purchase payments not withdrawn. In this case, partial withdrawals are first applied against earnings and then purchase payments, or On or after the Contract Anniversary immediately preceding your 81st birthday, the additional death benefit that is payable is equal to: 1. The difference between a. Your death benefit amount on the Contract Anniversary immediately preceding your 81st birthday, plus subsequent purchase payments made after each Contract Anniversary, reduced proportionately by the percentage reduction in Account Balance attributable to each subsequent partial withdrawal (including any applicable Withdrawal Charge); and b. Total purchase payments not withdrawn. In this case, partial withdrawals are first applied against earnings and then purchase payments. 2. In each case, multiplied by the following percentage, depending upon your age when You purchased the Contract:
Purchase Age Percentage Ages 69 or younger 40% Ages 70-79 25% Ages 80 and above 0%
You may not purchase this benefit if You are 80 years of age or older. For purposes of the above calculation, purchase payments increase the Account Balance on a dollar for dollar basis. Partial withdrawals, however, reduce Account Balance proportionately, that is, the percentage reduction is equal to the dollar amount of the withdrawal plus applicable Withdrawal Charges divided by the Account Balance immediately before the withdrawal. If the spouse continues the Contract, the spouse can choose one of the following two options: . Continue the Earnings Preservation Benefit. Then the additional death benefit is calculated in the same manner as above except the calculation takes into account the surviving spouse's age for purposes of determining what is the Contract Anniversary prior to the 81st birthday. In this case, the benefit is paid as of the death of the surviving spouse, rather than the first spouse. 71 . Stop the Earnings Preservation Benefit. Then, the Account Balance is reset to equal the death benefit plus the additional death benefit on the date the spouse continues the Contract. The Earnings Preservation Benefit will cease and the Separate Account charge will be reduced by 0.25%. If we do not receive notification from the surviving spouse either to elect to continue or to discontinue the Earnings Preservation Benefit within 90 days of notice to us of the death of a spouse, we will treat the absence of a notification as if the Earnings Preservation Benefit had been discontinued and the amount of the benefits will be added to the Account Balance. If You are a natural person and You change ownership of the Deferred Annuity to someone other than your spouse, this benefit is calculated in the same manner except (1) purchase payments (for the purpose of calculating the Earnings Preservation Benefit) are set equal to the Account Balance on the date of the change in Contract Owners (gain is effectively reset to zero) and (2) the percentage from the table above is based on the age of the new Contract Owner as of the date of the change in Contract Owner. If You are a non-natural person, the life of the Annuitant is the basis for determining the additional death benefit. If there are joint Contract Owners, the oldest of the two will be used as a basis for determining the additional death benefit. The Earnings Preservation Benefit is available for an additional charge of 0.25% annually of the average daily value of the amount You have in the Separate Account. EXAMPLE:
--------------------------------------------------------------------- Date Amount ---------- -------------------- A Purchase Payments Not Withdrawn 10/1/2013 $100,000 --------------------------------------------------------------------- B Death Benefit 10/1/2014 $105,000 --------------------------------------------------------------------- C Additional Death Benefit 10/1/2014 $2,000 (= 40% X (B - A)) --------------------------------------------------------------------- D Account Balance 10/1/2015 $90,000 --------------------------------------------------------------------- E Withdrawal 10/2/2015 $9,000 --------------------------------------------------------------------- F Account Balance after Withdrawal 10/2/2015 $81,000 (= D - E) --------------------------------------------------------------------- G Purchase Payments Not Withdrawn 10/2/2015 $91,000 --------------------------------------------------------------------- (= A - E, because there is no gain at time of withdrawal) --------------------------------------------------------------------- H Death Benefit 10/2/2015 $99,238 --------------------------------------------------------------------- I Additional Death Benefit $3,295 (= 40% X (H - G)) ---------------------------------------------------------------------
Notes to Example Purchaser is age 60 at issue. Any Withdrawal Charge from the Account Balance is included when determining the percentage of Account Balance withdrawn. All amounts are rounded to the nearest dollar. 72 LIVING BENEFITS OVERVIEW OF LIVING BENEFITS We offer a suite of optional living benefits that, for an additional charge, offer protection against market risk (the risk that your investments may decline in value or underperform your expectations). Only one version of these optional benefits may be elected, and the optional benefit must be elected at Contract issue. These optional benefits are described briefly below. Please see the more detailed description that follows for important information on the costs, restrictions and availability of each optional benefit.
Guaranteed Income Guaranteed Withdrawal Benefits Benefits -------------------------------------------- ------------------------------------------- Guaranteed Minimum Income Benefit Lifetime Withdrawal Guarantee (LWG I and Plus (GMIB Plus I and GMIB Plus II or, the LWG II) Predictor Plus, or Predictor Plus I and Enhanced Guaranteed Withdrawal Benefit Predictor Plus II) (Enhanced GWB) Guaranteed Minimum Income Benefit Guaranteed Withdrawal Benefit (GWB I) (GMIB I and GMIB II or the Predictor) Our guaranteed income benefits are These optional benefits are designed to designed to allow You to invest your guarantee that at least the entire amount Account Balance in the market while of purchase payments You make will be at the same time assuring a specified returned to You through a series of guaranteed, level of minimum fixed withdrawals (without annuitizing), income payments if You elect to regardless of investment performance, as annuitize. The fixed annuity payment long as withdrawals in any Contract Year amount is guaranteed regardless of do not exceed the maximum amount investment performance or the actual allowed. With the LWG, You get the same Account Balance at the time You elect benefits, but in addition, if You make pay-outs. Prior to exercising this your first withdrawal on or after the date benefit and annuitizing your Contract, You reach age 59 1/2, You are You may make withdrawals up to a guaranteed income for your life (and, for maximum level specified in the rider states other than New York, the life of and still maintain the benefit amount. your spouse, if the Joint Life version was (GMIB I and GMIB II were formerly elected and the spouse elects to continue known as "Versions I and Versions II the Contract is at least age 59 1/2 at of the Guaranteed Minimum Income spousal continuation), even after the Benefit"; and GMIB Plus I was entire amount of purchase payments has formerly known as "Version III of the been returned. (GWBI was formerly Guaranteed Minimum Income known as "Version I of the Guaranteed Benefit".) Withdrawal Benefit"; Enhanced GWB was formerly known as "Version II of the Guaranteed Withdrawal Benefit"; and LWG I was formerly known as "Version III - the Lifetime Withdrawal Guarantee Benefit".)
Guaranteed Income Guaranteed Asset Accumulation Benefits Benefit -------------------------------------------- ----------------------------------------- Guaranteed Minimum Income Benefit Guaranteed Minimum Accumulation Benefit Plus (GMIB Plus I and GMIB Plus II or, the (GMAB) Predictor Plus, or Predictor Plus I and Predictor Plus II) Guaranteed Minimum Income Benefit (GMIB I and GMIB II or the Predictor) Our guaranteed income benefits are GMAB is designed to guarantee that designed to allow You to invest your your Account Balance will not be less Account Balance in the market while than a minimum amount at the end of at the same time assuring a specified the 10-year waiting period. guaranteed, level of minimum fixed The amount of the guarantee depends income payments if You elect to on which of three permitted Investment annuitize. The fixed annuity payment Divisions You select. amount is guaranteed regardless of investment performance or the actual Account Balance at the time You elect pay-outs. Prior to exercising this benefit and annuitizing your Contract, You may make withdrawals up to a maximum level specified in the rider and still maintain the benefit amount. (GMIB I and GMIB II were formerly known as "Versions I and Versions II of the Guaranteed Minimum Income Benefit"; and GMIB Plus I was formerly known as "Version III of the Guaranteed Minimum Income Benefit".)
GUARANTEED INCOME BENEFITS At the time You buy the Contract, You may elect a guaranteed income benefit ("GMIB") for an additional charge. Each version of this optional benefit is designed to guarantee a predictable, minimum level of fixed income payments, regardless of investment performance of your Account Balance during the pay-in phase. HOWEVER, IF APPLYING YOUR ACTUAL ACCOUNT BALANCE AT THE TIME YOU ANNUITIZE THE CONTRACT TO THEN CURRENT ANNUITY PURCHASE RATES (OUTSIDE OF THE OPTIONAL BENEFIT) PRODUCES HIGHER INCOME PAYMENTS, YOU WILL RECEIVE THE HIGHER PAYMENTS, AND THUS YOU WILL HAVE PAID FOR THE OPTIONAL BENEFIT EVEN THOUGH IT WAS NOT USED. Also, prior to exercising the optional benefit, You may make 73 specified withdrawals that reduce your income base (as explained below) during the pay-in phase and still leave the optional benefit guarantees intact, provided the conditions of the optional benefit are met. Your registered representative can provide You an illustration of the amounts You would receive, with or without withdrawals, if You exercised the optional benefit. There are four versions of the GMIB that have been available with this Contract, GMIB Plus II, GMIB Plus I, GMIB II and GMIB I. None of the GMIBs are available for sale. There may be versions of each optional guaranteed income benefit that vary by issue date and state availability. In addition, a version may become available (or unavailable) in different states at different times. Please check with your registered representative regarding which version(s) are available in your state. If You have already been issued a Contract, please check your Contract and optional benefits for the specific provisions applicable to You. You may not have this optional benefit and another optional living benefit (LWG, GWB or GMAB) in effect at the same time. Once elected, the optional benefit cannot be terminated except as discussed below. FACTS ABOUT GUARANTEED INCOME BENEFITS INCOME BASE AND GMIB INCOME PAYMENTS. Under all versions of the GMIB, we calculate an "income base" (as described below) that determines, in part, the minimum amount You receive as an income payment upon exercising the GMIB and annuitizing the Contract. IT IS IMPORTANT TO RECOGNIZE THAT THIS INCOME BASE IS NOT AVAILABLE FOR CASH WITHDRAWALS AND DOES NOT ESTABLISH OR GUARANTEE YOUR ACCOUNT BALANCE OR A MINIMUM RETURN FOR ANY INVESTMENT DIVISION. After a minimum 10-year waiting period, and then only within 30 days following a Contract Anniversary, You may exercise the benefit. We then will apply the income base calculated at the time of exercise to the GMIB Annuity Table (as described below) specified in the optional benefit in order to determine your minimum guaranteed lifetime fixed monthly income payments (your actual payment may be higher than this minimum if, as discussed above, the base Contract under its terms would provide a higher payment). THE GMIB ANNUITY TABLE. The GMIB Annuity Table is specified in the rider. For GMIB Plus II, this table is calculated based on the Annuity 2000 Mortality Table with a 10-year age set back with interest of 1.5% per year. This table is calculated based on the Annuity 2000 Mortality Table with a 7-year age set back with interest of 2.5% per year for GMIB I, GMIB II and GMIB Plus I. As with other pay-out types, the amount You receive as an income payment also depends on your age, your sex, (where permitted by state law), and the income type You select. For GMIB Plus II, the annuity rates for attained ages 86 to 90 are the same as those for attained age 85. THE ANNUITY RATES IN THE GMIB ANNUITY TABLE ARE CONSERVATIVE AND A WITHDRAWAL CHARGE MAY BE APPLICABLE, SO THE AMOUNT OF GUARANTEED MINIMUM LIFETIME INCOME THAT THE GMIB PRODUCES MAY BE LESS THAN THE AMOUNT OF ANNUITY INCOME THAT WOULD BE PROVIDED BY APPLYING YOUR ACCOUNT BALANCE ON YOUR ANNUITY DATE TO THEN-CURRENT ANNUITY PURCHASE RATES. If You exercise a GMIB, your income payments will be the greater of: . the income payment determined by applying the amount of the income base to the GMIB Annuity Table, or . the income payment determined for the same income type in accordance with the base Contract. (See "Pay-Out Options (or Income Options)".) If You choose not to receive income payments as guaranteed under the GMIB, You may elect any of the income options available under the Contract. OWNERSHIP. If the owner is a natural person, the owner must be the Annuitant. If a non-natural person owns the Contract, then the Annuitant will be considered the owner in determining the income base and GMIB income payments. 74 If joint owners are named, the age of the older will be used to determine the income base and GMIB income payments. For purposes of the Guaranteed Income Benefits section of the prospectus, "You" always means the owner, oldest joint owner or the Annuitant, of the owner is a non-natural person. TAXES. Withdrawals of taxable amounts will be subject to ordinary income tax and, if made prior to age 591/2, a 10% Federal income tax penalty may apply. GMIB AND DECEDENT CONTRACTS. If You are purchasing this Contract with a nontaxable transfer of the death proceeds of any annuity Contract or IRA (or any other tax-qualified arrangement) of which You were the Beneficiary and You are "stretching" the distributions under the Internal Revenue Service required distribution rules, You may not purchase the GMIB. GMIB AND QUALIFIED CONTRACTS. THE GMIB MAY HAVE LIMITED USEFULNESS IN CONNECTION WITH A QUALIFIED CONTRACT, SUCH AS IRA (SEE "INCOME TAXES"), IN CIRCUMSTANCES WHERE, DUE TO THE TEN YEAR WAITING PERIOD AFTER PURCHASE (AND, FOR THE GMIB PLUS II AND GMIB PLUS I, AFTER AN OPTIONAL STEP-UP), THE OWNER IS UNABLE TO EXERCISE THE BENEFIT UNTIL AFTER THE REQUIRED BEGINNING DATE OF REQUIRED MINIMUM DISTRIBUTIONS UNDER THE CONTRACT. In such event, required minimum distributions received from the Contract during the ten year waiting period will have the effect of reducing the income base either on a proportionate or dollar for dollar basis, as the case may be. This may have the effect of reducing or eliminating the value of income payments under the GMIB. You should consult your tax adviser prior to electing the GMIB. DESCRIPTION OF GMIB PLUS II The GMIB Plus II is no longer available for purchase. In states where approved, the GMIB Plus II is available only for owners up through age 78 and You can only elect the GMIB Plus II at the time You purchase the Contract. The GMIB Plus II is not available in the State of Oregon. THE GMIB PLUS II MAY BE EXERCISED AFTER A 10-YEAR WAITING PERIOD AND THEN ONLY WITHIN 30 DAYS FOLLOWING A CONTRACT ANNIVERSARY, PROVIDED THAT THE EXERCISE MUST OCCUR NO LATER THAN THE 30-DAY PERIOD FOLLOWING THE CONTRACT ANNIVERSARY ON OR FOLLOWING THE OWNER'S 90TH BIRTHDAY. INCOME BASE The income base is equal to the greater of (a) or (b) below: (a)Highest Anniversary Value: On the issue date, the "Highest Anniversary Value" is equal to your initial purchase payment. Thereafter, the Highest Anniversary Value will be increased by subsequent purchase payments and reduced proportionately by the percentage reduction in Account Balance attributable to each subsequent withdrawal (including any applicable withdrawal charge). On each Contract Anniversary prior to the your 81st birthday, the Highest Anniversary Value will be recalculated and set equal to the greater of the Highest Anniversary Value before the recalculation or the Account Balance on the date of the recalculation. The Highest Anniversary Value does not change after the Contract Anniversary immediately preceding the your 81st birthday, except that it is increased for each subsequent purchase payment and reduced proportionally by the percentage reduction in Account Balance attributable to each subsequent withdrawal (including any applicable withdrawal charge). (b)Annual Increase Amount: On the date we issue your contract, the "Annual Increase Amount" is equal to your initial purchase payment. All purchase payments received within 120 days of the date we issue your contract will be treated as part of the initial purchase payment for this purpose. Thereafter, the Annual Increase Amount is equal to (i) less (ii), where: (i)is purchase payments accumulated at the Annual Increase Rate (as defined below) from the date the purchase payment is made; and (ii)is withdrawal adjustments (as defined below) accumulated at the Annual Increase Rate. 75 The Highest Anniversary Value and Annual Increase Amount are calculated independently of each other. When the Highest Anniversary Value is recalculated and set equal to the Account Balance, the Annual Increase Amount is not set equal to the Account Balance. See "Optional Step-Up" below for a feature that can be used to reset the Annual Increase Amount to the Account Balance. FOR DEFERRED ANNUITIES ISSUED IN NEW YORK STATE, THE ANNUAL INCREASE AMOUNT SHALL NOT EXCEED 270% OF TOTAL PURCHASE PAYMENTS OR, IF GREATER, 270% OF THE ANNUAL INCREASE AMOUNT AS OF THE MOST RECENT OPTIONAL STEP-UP FOR GMIB PLUS II (SEE "OPTIONAL STEP-UP" BELOW). Each time the Annual Increase Amount is increased by an Optional Step-Up, the limit on the Annual Increase Amount is raised to 270% of the new, higher Annual Increase Amount, if it is greater than 270% of your Purchase Payments. ANNUAL INCREASE RATE. As noted above, we calculate an income base under the GMIB that helps determine the minimum amount You receive as an income payment upon exercising the optional benefit. One of the factors used in calculating the income base is called the "annual increase rate." Through the Contract Anniversary immediately prior to the your 91st birthday, the Annual Increase Rate is 5%. On the first Contract Anniversary, "at the beginning of the Contract Year" means on the issue date; on a later Contract Anniversary, "at the beginning of the Contract Year" means on the prior Contract Anniversary. During the 30 day period following the Contract Anniversary immediately prior to the your 91st birthday, the annual increase rate is 0%. WITHDRAWAL ADJUSTMENTS. Withdrawal adjustments in a Contract Year are determined according to (a) or (b): (a)The withdrawal adjustment for each withdrawal in a Contract Year is the value of the Annual Increase Amount immediately prior to the withdrawal multiplied by the percentage reduction in Account Balance attributable to the withdrawal (including any applicable withdrawal charge); or (b)If total withdrawals in a Contract Year are not greater than the Annual Increase Rate multiplied by the Annual Increase Amount at the beginning of the Contract Year, and if these withdrawals are paid to you (or to the annuitant, if the Deferred Annuity is owned by a non-natural person) or to another payee we agree to, the total withdrawal adjustments for that Contract Year will be set equal to the dollar amount of total withdrawals (including any applicable withdrawal charge) in that Contract Year. These withdrawal adjustments will replace the withdrawal adjustments defined in (a) immediately above and be treated as though the corresponding withdrawals occurred at the end of that Contract Year. As described in (a) above, if in any Contract Year you take cumulative withdrawals that exceed the Annual Increase Rate multiplied by the Annual Increase Amount at the beginning of the Contract Year, the Annual Increase Amount will be reduced in the same proportion that the entire withdrawal (including any applicable withdrawal charge) reduced the Account Balance. This reduction may be significant, particularly when the Account Balance is lower than the Annual Increase Amount, and could have the effect of reducing or eliminating the value of income payments under the GMIB optional benefit. Limiting your cumulative withdrawals during a Contract Year to not more than the Annual Increase Rate multiplied by the Annual Increase Amount at the beginning of the Contract Year, will result in dollar-for-dollar treatment of the withdrawals as described in (b) immediately above. Partial annuitizations are not permitted. 76 In determining the GMIB Plus II income payments, an amount equal to the withdrawal charge that would apply upon a complete withdrawal and the amount of any premium and other taxes that may apply will be deducted from the income base. For purposes of calculating the income base, purchase payment credits (I.E., bonus payments) are not included. OPTIONAL STEP-UP. On each Contract Anniversary as permitted, you may elect to reset the Annual Increase Amount to the Account Balance. An Optional Step-Up may be beneficial if your Account Balance has grown at a rate above the Annual Increase Rate on the Annual Increase Amount (5%). As described below, an Optional Step-Up resets the Annual Increase Amount to the Account Balance. After an Optional Step-Up, the Annual Increase Rate will be applied to the new, higher Annual Increase Amount and therefore the amount that may be withdrawn without reducing the Annual Increase Amount on a proportionate basis will increase. HOWEVER, IF YOU ELECT TO RESET THE ANNUAL INCREASE AMOUNT, WE WILL ALSO RESTART THE 10-YEAR WAITING PERIOD. IN ADDITION, WE MAY RESET THE RIDER CHARGE TO A RATE THAT DOES NOT EXCEED THE LOWER OF: (A) THE MAXIMUM OPTIONAL STEP-UP CHARGE (1.50%) OR (B) THE CURRENT RATE THAT WE WOULD CHARGE FOR THE SAME OPTIONAL BENEFIT AVAILABLE FOR NEW CONTRACT PURCHASES AT THE TIME OF THE OPTIONAL STEP-UP. An Optional Step-Up is permitted only if: (1) the Account Balance exceeds the Annual Increase Amount immediately before the reset; and (2) the Contract Owner (or oldest joint Contract Owner or Annuitant if the Contract is owned by a non-natural person) is not older than age 80 on the date of the Optional Step-Up. If your Deferred Annuity has both the GMIB Plus II and the EDB I, and You would like to elect an Optional Step-Up, You must elect an Optional Step-Up for both optional benefits. You may not elect an Optional Step-Up for only one of the two optional benefits. Upon the Optional Step-Up, we may reset the optional benefit charge, as described above, on one or both optional benefits. You may elect either: (1) a one-time Optional Step-Up at any Contract Anniversary provided the above requirements are met, or (2) Optional Step-Ups to occur under the Automatic Annual Step-Up. If You elect Automatic Annual Step-Ups, on any Contract Anniversary while this election is in effect, the Annual Increase Amount will reset to the Account Balance automatically, provided the above requirements are met. The same conditions described above will apply to each Automatic Step-Up. You may discontinue this election at any time by notifying us in writing, at your Administrative Office (or by any other method acceptable to us), at least 30 days prior to the Contract Anniversary on which a step-up may otherwise occur. Otherwise, it will remain in effect through the seventh Contract Anniversary following the date You make this election, at which point You must make a new election if you want Automatic Annual Step-Ups to continue. If You discontinue or do not re-elect the Automatic Annual Step Ups, no Optional Step-Up will occur automatically on any subsequent Contract Anniversary unless You make a new election under the terms described above. (If You discontinue Automatic Annual Step-Ups, the optional benefit (and charge) will continue, and You may choose to elect a one time Optional Step-Up or reinstate Automatic Annual Step-Ups as described above.) We must receive your request to exercise the Optional Step-Up in writing at your Administrative Office, or by any other method acceptable to us. We must receive your request prior to the Contract Anniversary for an Optional Step-Up to occur on that Contract Anniversary. The Optional Step-Up: (1)resets the Annual Increase Amount to the Account Balance on the Contract Anniversary following the receipt of an Optional Step-Up election; (2)resets the waiting period to exercise the GMIB Plus II to the 10th Contract Anniversary following the date the Optional Step-Up took effect; (3)For Contracts issued in New York State only, may reset the maximum Annual Increase Amount to a percentage (270%) multiplied by the Annual Increase Amount calculated in (1) above, if greater than the maximum Annual Increase Amount immediately before the Optional Step-Up; and 77 (4)may reset the charge to a rate that does not exceed the lower of: (a) the maximum Optional Step-Up charge (1.50%) or (b) the current rate that we would charge for the same optional benefit available for new Contract purchases at the time of the Optional Step-Up. In the event that the charge applicable to Deferred Annuity purchases at the time of the step-up is higher than your current charge, we will notify you in writing a minimum of 30 days in advance of the applicable Contract Anniversary and inform you that you may choose to decline the Automatic Annual Step-Up. If you decline the Automatic Annual Step-Up, you must notify us in accordance with our administrative procedures (currently we require you to submit your request in writing to your Administrative Office no less than seven calendar days prior to the applicable Contract Anniversary). Once you notify us of your decision to decline the Automatic Annual Step-Up, you will no longer be eligible for future Automatic Annual Step-Ups until you notify us in writing to our Administrative Office that you wish to reinstate the Automatic Annual Step-Ups. This reinstatement will take effect at the next Contract Anniversary after we receive your request for reinstatement. On the date of the step-up, the Account Balance on that day will be treated as a single purchase payment received on the date of the step-up for purposes of determining the Annual Increase Amount after the step-up. All purchase payments and withdrawal adjustments previously used to calculate the annual increase amount will be set equal to zero on the date of the step-up. INVESTMENT ALLOCATION RESTRICTIONS. If You elect the GMIB Plus II, there are certain investment allocation restrictions. Please see "Investment Choices -- Investment Allocation Restrictions For Certain Optional Benefits". If You elect the GMIB Plus II, You may not participate in the Equity Generator and the Allocator. However, You may elect to participate in the Enhanced Dollar Cost Averaging Program, provided that your destination Investment Divisions are selected in accordance with the investment allocation restrictions. RESTRICTIONS ON SUBSEQUENT PURCHASE PAYMENTS. Subsequent purchase payment restrictions under the GMIB Plus II are restricted as described in "Your Investment Choices -- Restrictions on Subsequent Purchase Payments -- GMIB I, GMIB Plus I, GMIB Plus II, GWB I, Enhanced GWB, LWG I, LWG II, GMAB and EDB I." GUARANTEED PRINCIPAL OPTION. On each Contract Anniversary, starting with the tenth Contract Anniversary and through the Contract Anniversary prior to the owner's 91st birthday, You may exercise the Guaranteed Principal Option. If the owner is a non-natural person, the Annuitant's age is the basis for determining the birthday. If there are joint owners, the age of the older owner is used for determining the birthday. We must receive your request to exercise the Guaranteed Principal Option in writing, or any other method that we agree to, within 30 days following the eligible Contract Anniversary. The Guaranteed Principal Option will take effect at the end of this 30-day period following the eligible Contract Anniversary. By exercising the Guaranteed Principal Option, You elect to receive an additional amount to be added to your Account Balance intended to restore your initial investment in the Contract, in lieu of receiving GMIB payments. The additional amount is called the Guaranteed Principal Adjustment and is equal to (a) minus (b) where: (a)is purchase payments credited within 120 days of the date we issued the Contract (reduced proportionately by the percentage reduction in Account Balance attributable to each partial withdrawal (including applicable Withdrawal Charges) prior to the exercise of the Guaranteed Principal Option) and (b)the Account Balance on the Contract Anniversary immediately preceding exercise of the Guaranteed Principal Option. For purposes of calculating the Guaranteed Principal Adjustment, purchase payment credits are not included. The Guaranteed Principal Option can only be exercised if (a) exceeds (b), as defined above. The Guaranteed Principal 78 Adjustment will be added to each applicable Investment Division in the ratio the portion of the Account Balance in such Investment Division bears to the total Account Balance in all Investment Divisions. IT IS IMPORTANT TO NOTE THAT ONLY PURCHASE PAYMENTS MADE DURING THE FIRST 120 DAYS THAT YOU HOLD THE CONTRACT ARE TAKEN INTO CONSIDERATION IN DETERMINING THE GUARANTEED PRINCIPAL ADJUSTMENT. IF YOU ANTICIPATE MAKING PURCHASE PAYMENTS AFTER 120 DAYS, YOU SHOULD UNDERSTAND THAT SUCH PAYMENTS WILL NOT INCREASE THE GUARANTEED PRINCIPAL ADJUSTMENT. However, because purchase payments made after 120 days will increase your Account Balance, such payments may have a significant impact on whether or not a Guaranteed Principal Adjustment is due. Therefore, GMIB Plus II may not be appropriate for You if You intend to make additional purchase payments after the 120-day period and are purchasing the GMIB Plus II for this feature. The Guaranteed Principal Adjustment will never be less than zero. IF THE GUARANTEED PRINCIPAL OPTION IS EXERCISED, THE GMIB PLUS II WILL TERMINATE AS OF THE DATE THE OPTION TAKES EFFECT AND NO ADDITIONAL GMIB CHARGES WILL APPLY THEREAFTER. The Contract, however, will continue, and the GMIB Plus II allocation restrictions, described above, will no longer apply. If You elected both the GMIB Plus II and the EDB I, the EDB I investment allocation restrictions described in "Investment Allocation Restrictions For Certain Optional Benefits" will continue to apply as long as the EDB I optional benefit has not terminated. The Guaranteed Principal Option is not available in the state of Washington. EXERCISING THE GMIB PLUS II. If You exercise the GMIB Plus II, You must select to receive income payments under one of the following income types: (1)Lifetime Income Annuity with a 5-Year Guarantee Period . (2)Lifetime Income Annuity for Two with a 5-Year Guarantee Period . Based on Federal tax rules, this option is not available for qualified Contracts where the difference in ages of the joint Annuitants, who are non-spouses, is greater than 10 years. See "Pay-Out Options (or Income Options.)" (For Contracts issued in New York State, this income type is only available if the youngest Annuitant's attained age is 35 or older). These options are described in the Contract and the GMIB Plus II. The GMIB Annuity Table is specified in the rider. This table is calculated based on the Annuity 2000 Mortality Table with 10 years of mortality improvement based on projection Scale AA and a 10 year age set back with interest of 1.0% per year. As with other pay-out types, the amount You receive as an income payment also depends on the income payment type You select, your age, and your sex (where permitted under state law). The annuity rates for attained ages 86 or 90 are the same as those for attained age 85. THE ANNUITY RATES IN THE GMIB ANNUITY TABLE ARE CONSERVATIVE AND A WITHDRAWAL CHARGE MAY BE APPLICABLE, SO THE AMOUNT OF GUARANTEED MINIMUM LIFETIME INCOME THAT THE GMIB PRODUCES MAY BE LESS THAN THE AMOUNT OF ANNUITY INCOME THAT WOULD BE PROVIDED BY APPLYING YOUR ACCOUNT BALANCE ON YOUR ANNUITY DATE TO THEN CURRENT ANNUITY PURCHASE RATES. If You exercise the GMIB Plus II, your income payments will be the greater of: the income payment determined by applying the amount of the income base to the GMIB Annuity Table, or the income payment determined for the same income payment type in accordance with the base Contract. (See "Pay-out Options (or Income Options).") IF THE AMOUNT OF THE GUARANTEED MINIMUM LIFETIME INCOME THAT THE GMIB PLUS II PRODUCES IS LESS THAN THE AMOUNT OF ANNUITY INCOME THAT WOULD BE PROVIDED BY APPLYING ACCOUNT BALANCE ON THE ANNUITY DATE TO THE THEN CURRENT ANNUITY PURCHASE RATES, THEN YOU WOULD HAVE PAID FOR A BENEFIT THAT YOU DID NOT USE. 79 If You take a full withdrawal of your Account Balance, your Contract is terminated by us due to its small Account Balance and inactivity (see "When We Can Cancel Your Deferred Annuity"), or your Contract lapses and there remains any income base, we will commence making income payments within 30 days of the date of the full withdrawal, termination or lapse. In such cases, your income payments under this benefit, if any, will be determined using the income base after any applicable withdrawal adjustment that was taken on account of the withdrawal, termination or lapse. ENHANCED PAYOUT RATES (DOES NOT APPLY TO CONTRACTS ISSUED IN NEW YORK STATE). The GMIB payout rates are enhanced under either of the following circumstances, if: (a)You take no withdrawals prior to age 62; (b)your Account Balance is fully withdrawn or decreases to zero on or after age 62 and there is an income base remaining; and (c)the income type You select is the Lifetime Income Annuity with a 5-Year Guarantee Period; Then the annual income payments under the GMIB Plus II will equal or exceed 5.5% of the income base (calculated on the date the payments are determined). For example, if an Owner dies and the Owner's spouse (age 89 or younger) is the Beneficiary of the Contract, the spouse may elect to continue the Contract and the GMIB Plus II. If the spouse elects to continue the Contract and the Owner had begun to take withdrawals prior to his or her death, and the Owner was older than the spouse, the spouse's eligibility for the enhanced payout rates described above is based on the Owner's age when the withdrawals began. For example, if an Owner had begun to take withdrawals at age 62 and subsequently died, if that Owner's spouse continued the Contract and the GMIB Plus II, the spouse would be eligible for the 5.5% enhanced payout rate described above, even if the spouse were younger than age 62 at the time the Contract was continued. If the spouse elects to continue the Contract and the Owner had not taken any withdrawals prior to his or her death, the spouse's eligibility for the enhanced payout rates described above is based on the spouse's age when the spouse begins to take withdrawals. Similarly if; (a)You take no withdrawals prior to age 60; (b)your Account Balance is fully withdrawn or decreases to zero on or after age 60 and there is an income base remaining; and (c)the income type You select is the Lifetime Income Annuity with a 5-Year Guarantee Period. Then the annual income payments under the GMIB Plus II will equal or exceed 5% of the income base (calculated on the date the payments are determined). If You choose not to receive income payments as guaranteed under the GMIB Plus II, You may elect any of the pay-out options under the Contract. If the income base being annuitized is less than $5,000, we reserve the right to make one lump sum payment to You instead of income payments. If the amount of the initial income payment would be less than $100, we may reduce the frequency of payments so that the payment is a minimum of $100, but not less frequently then annually. 80 TERMINATING THE GMIB PLUS II. Except as otherwise provided, the GMIB Plus II will terminate upon the earliest of: (a)The 30th day following the Contract Anniversary on or following your 90th birthday; (b)The date You make a complete withdrawal of your Account Balance (if there is an income base remaining You will receive payments based on the remaining income base) (a pro rata portion of the annual optional benefit charge will be assessed). (c)The date You elect to receive income payments under the Contract and You do not elect to receive payments under the GMIB Plus II (a pro rata portion of the annual optional benefit charge will be assessed); (d)Death of the Contract Owner or joint Contract Owner (unless the spouse (aged 89 or younger) is the Beneficiary and elects to continue the Contract), or death of the Annuitant if a non-natural person owns the Contract; (e)A change for any reason of the Contract Owner or joint Contract Owner (or Annuitant, if the Contract Owner is a non-natural person), subject to our administrative procedures; (a pro rata portion of the annual optional benefit charge will be assessed); (f)The effective date of the Guaranteed Principal Option; or (g)The date You assign your Contract, subject to our administrative procedures (a pro rata portion of the annual optional benefit charge will be assessed). Under our current administrative procedures, we will waive the termination of the GMIB Plus II if You assign a portion of the Contract under the following limited circumstances. If the assignment is solely for your benefit on account of your direct transfer of the Account Balance under Section 1035 of the Code to fund premiums for a long term care insurance policy or purchase payments for an annuity Contract issued by an insurance company which is not our affiliate and which is licensed to conduct business in any state. All such direct transfers are subject to any applicable Withdrawal Charges. When the GMIB Plus II terminates, the corresponding GMIB Plus II charge terminates and GMIB Plus II investment restrictions no longer apply. For Contracts issued in all states except New York from February 24, 2009 through May 1, 2009, the following differences apply: (1)The GMIB Annuity Table is calculated based on the Annuity 2000 Mortality Table with a 7-year age set back with interest of 1.5% per year; (2)The GMIB payout rates are enhanced to be at least (a) 6% of the income base (calculated on the date the payments are determined) in the event: (i) You take no withdrawals prior to age 62; (ii) your Account Balance is fully withdrawn or decreases to zero on or after age 62 and there is an income base remaining; and (iii) the annuity option You select is the Lifetime Income Annuity with a 10-Year Guarantee Period, or (b) 5% of the income base (calculated on the date the payments are determined) if: (i) You take no withdrawals prior to age 60; (ii) your Account Balance is fully withdrawn or decreases to zero on or after age 60 and there is an income base remaining; and (iii) You select the Lifetime Income Annuity with a 10-Year Guarantee Period; (3)Different investment allocation restrictions apply; (4)The annual increase rate is 6% through the Contract Anniversary immediately prior to your 91st birthday, and 0% per year thereafter; (5)If total withdrawals in a Contract Year are 6% or less of the Annual Increase Amount on the issue date or on the prior Contract Anniversary after the first Contract Year, and if these withdrawals are paid to You (or the Annuitant if the Contract is owned by a non-natural person) or to another payee we agree to, the total withdrawal adjustments for that 81 Contract Year will be set equal to the dollar amount of total withdrawals (including any applicable Withdrawal Charge) in that Contract Year; and (6)The fixed annuity options are the Lifetime Income Annuity with a 10 year Guaranteed Period (if You choose to start the annuity option after age 79, the year of the guarantee period component of the annuity option is reduced to: 9 years at age 80, 8 years at age 81, 7 years at age 82, 6 years at age 83, or 5 years at ages 84 through 90) or the Lifetime Income Annuity for Two with a 10 Year Guarantee Period. (Based upon Federal tax rules, this option is not available for qualified Contracts where the difference in ages of the joint Annuitants, who are non-spouses, is greater than 10 years). (7)If your Income Base is increased due to an Optional Step-Up on a Contract Anniversary occurring on July 1, 2012 or later, we currently will increase the rider charge to 1.20% of the Income Base, applicable after the Contract Anniversary on which the Optional Step-Up occurs. For Contracts issued in New York State on or before May 1, 2009, the following differences apply: (1) The annual increase rate is 6% through the Contract Anniversary immediately prior to your 91st birthday, and 0% per year thereafter; (2) The GMIB annuity rates for attained ages 85-90 are the same as those for attained age 84; (3) Different investment allocation restrictions apply; (4) The Lifetime Income Annuity for Two income option type is only available if the oldest Annuitant's attained age is 55 or older; (5) The Annual Increase Amount shall not exceed 190% of total purchase payments or, if greater, 190% of the Annual Increase Amount as of the most recent Optional Step-Up; (6) If total withdrawals in a Contract Year are 6% or less of the Annual Increase Amount on the issue date or on the prior Contract Anniversary after the first Contract Year, and if these withdrawals are paid to You (or the Annuitant if the Contract is owned by a non-natural person) or to another payee we agree to, the total withdrawal adjustments for that Contract Year will be set equal to the dollar amount of total withdrawals (including any applicable Withdrawal Charge) in that Contract Year; and (7) The GMIB Annuity Table is calculated based upon the Annuity Mortality Table with a 7-year age set back with interest of 1.5% per year. (8) If your Income Base is increased due to an Optional Step-Up on a Contract Anniversary occurring on July 1, 2012 or later, we currently will increase the rider charge to 1.15% of the Income Base, applicable after the Contract Anniversary on which the Optional Step-Up occurs. For Contracts issued in all states except New York on or before February 23, 2009, the GMIB Annuity Table is calculated based on the Annuity 2000 Mortality Table with a 7-year age set back with interest of 2.5% per year; the GMIB payout rates are enhanced to be at least 6% of the Annual Increase Amount (calculated on the date the payments are determined) in the event: (i) You take no withdrawals prior to age 60; (ii) your Account Balance is fully withdrawn or decreases to zero on or after age 60 and there is an income base remaining; and (iii) the annuity option You select is the Lifetime Income Annuity with a 10-Year Guarantee Period and differences (3) through (7) in the non-New York version apply. 82 Notes on Graphs and Examples: The purpose of these examples is to illustrate the operation of the GMIB Plus II. The investment results shown are hypothetical and are not representative of past or future performance. Actual investment results may be more or less than those shown and will depend upon a number of factors, including investment allocations and the investment experience of the Investment Divisions chosen. THE EXAMPLES DO NOT REFLECT THE DEDUCTION OF FEES AND CHARGES, WITHDRAWAL CHARGES OR INCOME TAXES AND TAX PENALTIES. (1)WITHDRAWAL ADJUSTMENTS TO ANNUAL INCREASE AMOUNT Dollar-for-dollar adjustment when withdrawal is less than or equal to 5% of the Annual Increase Amount from the prior Contract Anniversary Assume the initial purchase payment is $100,000 and the GMIB Plus II is selected. Assume that during the first Contract Year, $5,000 is withdrawn. Because the withdrawal is less than or equal to 5% of the Annual Increase Amount from the prior Contract Anniversary, the Annual Increase Amount is reduced by the withdrawal on a dollar-for-dollar basis to $100,000 ($100,000 increased by 5% per year, compounded annually, less $5,000 = $100,000). Assuming no other purchase payments or withdrawals are made before the second Contract Anniversary, the Annual Increase Amount at the second Contract Anniversary will be $105,000 ($100,000 increased by 5% per year, compounded annually). Proportionate adjustment when withdrawal is greater than 5% of the Annual Increase Amount from the prior Contract Anniversary Assume the initial purchase payment is $100,000 and the GMIB Plus II is selected. Assume the Account Balance at the first Contract Anniversary is $100,000. The Annual Increase Amount at the first Contract Anniversary will be $105,000 ($100,000 increased by 5% per year, compounded annually). Assume that on the first Contract Anniversary, $10,000 is withdrawn (leaving an Account Balance of $90,000). Because the withdrawal is greater than 5% of the Annual Increase Amount from the prior Contract Anniversary, the Annual Increase Amount is reduced by the value of the Annual Increase Amount immediately prior to the withdrawal ($105,000) multiplied by the percentage reduction in the Account Balance attributed to that entire withdrawal: 10% (the $10,000 withdrawal reduced the $100,000 Account Balance by 10%). Therefore, the new Annual Increase Amount is $94,500 ($105,000 x 10% = $10,500; $105,000 - $10,500 = $94,500). (If multiple withdrawals are made during a Contract Year -- for example, two $5,000 withdrawals instead of one $10,000 withdrawal -- and those withdrawals total more than 5% of the Annual Increase Amount from the prior Contract Anniversary, the Annual Increase Amount is reduced proportionately by each of the withdrawals made during that Contract Year and there will be no dollar-for-dollar withdrawal adjustment for the Contract Year.) Assuming no other purchase payments or withdrawals are made before the second Contract Anniversary, the Annual Increase Amount at the second Contract Anniversary will be $99,225 ($94,500 increased by 5% per year, compounded annually). (2)THE ANNUAL INCREASE AMOUNT Example Assume the owner of the Contract is a male, age 55 at issue, and he elects the GMIB Plus II. He makes an initial purchase payment of $100,000, and makes no additional purchase payments or partial withdrawals. On the Contract issue date, the Annual Increase Amount is equal to $100,000 (the initial purchase payment). The Annual Increase Amount is calculated at each Contract Anniversary (through the Contract Anniversary prior to the owner's 91st birthday). At the tenth Contract Anniversary, when the owner is age 65, the Annual Increase Amount is $162,889 ($100,000 increased by 5% per year, compounded annually). See section (3) below for an example of the calculation of the Highest Anniversary Value. 83 Determining a value upon which future income payments will be based Assume that You make an initial purchase payment of $100,000. Prior to annuitization, your Account Balance fluctuates above and below your initial purchase payment depending on the investment performance of the Investment Divisions You selected. Your purchase payments accumulate at the annual increase rate of 5%, until the Contract Anniversary on or immediately after the Contract Owner's 90th birthday (for Contracts issued in New York State, the Annual Increase Amount is subject to a 270% maximum increase limitation). Your purchase payments are also adjusted for any withdrawals (including any applicable Withdrawal Charge) made during this period. The line (your purchase payments accumulated at 5% a year adjusted for withdrawals and charges "the Annual Increase Amount") is the value upon which future income payments can be based. [GRAPHIC] Determining your guaranteed lifetime income stream Assume that You decide to annuitize your Contract and begin taking income payments after 20 years. In this example, your Annual Increase Amount is higher than the Highest Anniversary Value and will produce a higher income benefit. Accordingly, the Annual Increase Amount will be applied to the annuity pay-out rates in the GMIB Annuity Table to determine your lifetime income payments. THE INCOME BASE IS NOT AVAILABLE FOR CASH WITHDRAWALS AND IS ONLY USED FOR PURPOSES OF CALCULATING THE GMIB PAYMENT AND THE CHARGE FOR THE BENEFIT. [GRAPHIC] (3)THE "HIGHEST ANNIVERSARY VALUE" ("HAV") Example Assume, as in the example in section (2) above, the owner of the Contract is a male, age 55 at issue, and he elects GMIB Plus II. He makes an initial purchase payment of $100,000, and makes no additional purchase payments or partial withdrawals. On the Contract issue date, the Highest Anniversary Value is equal to $100,000 (the initial purchase payment). Assume the Account Balance on the first Contract Anniversary is $108,000 due to good market performance. Because the Account Balance is greater than the Highest Anniversary Value ($100,000), the Highest Anniversary Value is set equal to the Account Balance ($108,000). Assume the Account Balance on the second Contract Anniversary is $102,000 due to poor market performance. Because the Account Balance is less than the Highest Anniversary Value ($108,000), the Highest Anniversary Value remains $108,000. Assume this process is repeated on each Contract Anniversary until the tenth Contract Anniversary, when the Account Balance is $155,000 and the Highest Anniversary Value is $150,000. The Highest Anniversary Value is set equal to the Account Balance ($155,000). See section (4) below for an example of the exercise of GMIB Plus II. 84 Determining a value upon which future income payments will be based Prior to annuitization, the Highest Anniversary Value begins to lock in growth. The Highest Anniversary Value is adjusted upward each Contract Anniversary if the Account Balance at that time is greater than the amount of the current Highest Anniversary Value. Upward adjustments will continue until the Contract Anniversary immediately prior to the Contract Owner's 81st birthday. The Highest Anniversary Value also is adjusted for any withdrawals taken (including any applicable Withdrawal Charge) or any additional payments made. The Highest Anniversary Value line is the value upon which future income payments can be based. [CHART] Determining your guaranteed lifetime income stream Assume that You decide to annuitize your Contract and begin taking annuity payments after 20 years. In this example, the Highest Anniversary Value is higher than the Account Balance. Accordingly, the Highest Anniversary Value will be applied to the annuity payout rates in the GMIB Annuity Table to determine your lifetime income payments. THE INCOME BASE IS NOT AVAILABLE FOR CASH WITHDRAWALS AND IS ONLY USED FOR PURPOSES OF CALCULATING THE GMIB PAYMENT AND THE CHARGE FOR THE BENEFIT. [GRAPHIC] (4)PUTTING IT ALL TOGETHER Example Continuing the examples in sections (2) and (3) above, assume the Contract Owner chooses to exercise the GMIB Plus II at the tenth Contract Anniversary and elects a Lifetime Income Annuity with a 5-Year Guarantee Period. Because the 5% Annual Increase Amount ($162,889) is greater than the Highest Anniversary Value ($155,000), the 5% Annual Increase Amount ($162,889) is used as the income base. The income base of $162,889 is applied to the GMIB Annuity Table. This yields income payments of $591 per month for life, with a minimum of 5 years guaranteed. (If the same owner were instead age 70, the income base of $162,889 would yield monthly payments of $673; if the Contract Owner were age 75, the income base of $162,889 would yield monthly payments of $785.) 85 Assume the Contract Owner, a New York resident, chooses to exercise the GMIB Plus II optional benefit at the 21st Contract Anniversary and elects a Lifetime Income Annuity with a 5-Year Guarantee Period. Assume the Account Balance has declined due to poor market performance. The 5% Annual Increase Amount would be limited to the maximum of 270% of the total purchase payments, which equals $270,000. Because the 5% Annual Increase Amount ($270,000) is greater than the Highest Anniversary Value ($150,000), the 5% Annual Increase Amount ($270,000) is used as the income base. The income base of $270,000 is applied to the GMIB Annuity Table. This yields income payments of $1,345 per month for life, with a minimum of 5 years guaranteed. (If the same Contract Owner were instead age 81, the income base of $270,000 would yield monthly payments of $1,607; if the Contract Owner were age 86, the income base of $270,000 would yield monthly payments of $1,877.) The above example does not take into account the impact of premium and other taxes. As with other pay out types, the amount You receive as an income payment depends on the income type You select, your age, and (where permitted by state law) your sex. THE INCOME BASE IS NOT AVAILABLE FOR CASH WITHDRAWALS AND IS ONLY USED FOR PURPOSES OF CALCULATING THE GMIB PAYMENT AND THE CHARGE FOR THE BENEFIT. Prior to annuitization, the two calculations (the 5% Annual Increase Amount and the Highest Anniversary Value) work together to protect your future income. Upon annuitization of the Contract, You will receive income payments for life and the Annual Increase Amount, Highest Anniversary Value and the Account Balance will cease to exist. Also, the GMIB Plus II may only be exercised no later than the Contract Anniversary on or following the Contract Owner's 90th birthday, after a 10 year waiting period, and then only within a 30 day period following the Contract Anniversary. [CHART] With the GMIB, the income base is applied to special, conservative GMIB annuity purchase factors, which are guaranteed at the time the Contract is issued. HOWEVER, IF THEN-CURRENT ANNUITY PURCHASE FACTORS APPLIED TO THE ACCOUNT BALANCE WOULD PRODUCE A GREATER AMOUNT OF INCOME, THEN YOU WILL RECEIVE THE GREATER AMOUNT. IN OTHER WORDS, WHEN YOU ANNUITIZE YOUR CONTRACT YOU WILL RECEIVE WHATEVER AMOUNT PRODUCES THE GREATEST INCOME PAYMENT. THEREFORE, IF YOUR ACCOUNT BALANCE WOULD PROVIDE GREATER INCOME THAN WOULD THE AMOUNT PROVIDED UNDER THE GMIB, YOU WILL HAVE PAID FOR THE GMIB ALTHOUGH IT WAS NEVER USED. [CHART] (5)THE GUARANTEED PRINCIPAL OPTION -- GRAPH AND EXAMPLE Initial investment is $100,000. Assume that no withdrawals are taken. Assume that Account Balance at the 10th Contract Anniversary is $50,000 due to poor market performance, and the Guaranteed Principal Option is exercised at this time. 86 The effect of exercising the Guaranteed Principal Option: (1)A Guaranteed Principal Adjustment of $100,000 - $50,000 = $50,000 is added to the Account Balance 30 days after the 10th Contract Anniversary bringing it back up to $100,000. (2)The GMIB Plus II benefit and the benefit charge terminate as of the date that the adjustment is made to the Account Balance; the Contract continues. (3)The GMIB Plus II allocation and transfer restrictions terminate as of the date that the adjustment is made to the Account Balance (except if the GMIB Plus II was elected with the EDB I, the investment allocation restrictions described above will continue to apply as long as the EDB I has not terminated). [CHART] * Withdrawals reduce the original purchase payment (I.E., those payments credited within 120 days of the Contract's issue date) proportionately and, therefore, may have a significant impact on the amount of the Guaranteed Principal Adjustment. (6)THE OPTIONAL STEP-UP: OPTIONAL AUTOMATIC ANNUAL STEP-UP Assume your initial investment is $100,000 and no withdrawals are taken. The Annual Increase Amount of the GMIB Plus II Income Base increases to $105,000 on the first anniversary ($100,000 increased by 5% per year, compounded annually). Assume your Account Balance at the first Contract Anniversary is $110,000 due to good market performance, and You elected Optional Step-Ups to occur under the Optional Automatic Annual Step-Up feature prior to the first Contract Anniversary. Because your Account Balance is higher than your Annual Increase Amount of the Income Base, an Optional Step-Up will automatically occur. The effect of the Optional Step-Up is: (1)The Annual Increase Amount of the Income Base automatically resets from $105,000 to $110,000; (2)The 10-year waiting period to annuitize the Contract is reset to 10 years from the first Contract Anniversary; (3)The charge is reset to the fee we charge new Contract Owners for the same optional benefit at that time; and (4)The Guaranteed Principal Option can still be elected on the 10th Contract Anniversary. The Annual Increase Amount of the Income Base increases to $115,500 on the second anniversary ($110,000 increased by 5% per year, compounded annually). Assume your Account Balance at the second Contract Anniversary is $120,000 due to good market performance, and You have not discontinued the Automatic Annual Step-Up feature. Because your Account Balance is higher than your Annual Increase Amount of the Income Base, an Optional Step-Up will automatically occur. The effect of the Optional Step-Up is: (1)The Annual Increase Amount of the Income Base automatically resets from $115,500 to $120,000; 87 (2)The 10-year waiting period to annuitize the Contract is reset to 10 years from the second Contract Anniversary; (3)The charge is reset to the fee we charge new Contract Owners for the same optional benefit at that time; and (4)The Guaranteed Principal Option can still be elected on the 10th Contract Anniversary. Assume your Account Balance increases by $10,000 at each Contract Anniversary in years three through seven. At each Contract Anniversary, your Account Balance would exceed the Annual Increase Amount of the Income Base and an Optional Step-Up would automatically occur (provided You had not discontinued the Automatic Annual Step-Up feature, and other requirements were met). The effect of each Optional Step-Up is: (1)The Annual Increase Amount of the Income Base automatically resets to the higher Account Balance; (2)The 10-year waiting period to annuitize the Contract is reset to 10 years from the date of the Optional Step-Up; (3)The charge is reset to the fee we charge new Contract Owners for the same optional benefit at the time; and (4)The Guaranteed Principal Option can still be elected on the 10th Contract Anniversary. After the seventh Contract Anniversary, the initial Optional Automatic Annual Step-Up election expires. Assume You do not make a new election of the Optional Automatic Annual Step-Up. The Annual Increase Amount of the Income Base increases to $178,500 on the eighth anniversary ($170,000 increased by 5% per year, compounded annually). Assume your Account Balance at the eighth Contract Anniversary is $160,000 due to poor market performance. An Optional Step-Up is NOT permitted because your Account Balance is lower than your Annual Increase Amount of the Income Base. However, because the Optional Step-Up has locked-in previous gains, the Annual Increase Amount of the Income Base remains at $178,500 despite poor market performance, and, provided the benefit continues in effect, will continue to grow at 5% annually (subject to adjustments for additional purchase payments and/or withdrawals) through the Contract Anniversary on or after your 90th birthday (for Contracts issued in New York State, the Annual Increase Amount is subject to a 270% maximum increase limitation). Also, please note: (1)The 10-year waiting period to annuitize the Contract remains at the 17th Contract Anniversary (10 years from the date of the last Optional Step-Up); (2)The charge remains at its current level; and (3)The Guaranteed Principal Option can still be elected on the 10th Contract Anniversary. [CHART] 88 DESCRIPTION OF GMIB PLUS I The GMIB Plus I is no longer available for purchase. The GMIB Plus I was available only for Contract Owners up through age 75, and You could only have elected GMIB Plus I at the time You purchased the Contract. GMIB Plus I may be exercised after a 10-year waiting period and then only within 30 days following a Contract Anniversary, provided that the exercise must occur no later than the 30-day period following the Contract Anniversary on or following the owner's 85th birthday. GMIB Plus I is otherwise identical to GMIB Plus II, with the following exceptions: (1)The GMIB Plus I Income Base is calculated as described above, except that the annual increase rate is 6% per year through the Contract Anniversary on or following the owner's 85th birthday and 0% thereafter. (2)An "Optional Step-Up" under the GMIB Plus II is referred to as an "Optional Reset" under the GMIB Plus I. An Optional Reset is permitted only if: (1) the Account Balance exceeds the Annual Increase Amount immediately before the reset; and (2) the Contract Owner (or oldest joint Contract Owner or Annuitant if the Contract is owned by a non-natural person) is not older than age 75 on the date of the Optional Reset. (3)If your income base is increased due to an Optional Reset on a Contract Anniversary occurring on July 1, 2012 or later, we currently will increase the rider charge to 1.20% of the Income Base, applicable after the Contract Anniversary on which the Optional Reset occurs. (4)Termination provision g) above does not apply and the following replaces termination provision a), above: The 30th day following the Contract Anniversary on or following your 85th birthday. and the following replaces provision d) above: Death of the Contract Owner or joint Contract Owner (unless the spouse (age 84 or younger) is the Beneficiary and elects to continue the Contract), or the death of the Annuitant if a non-natural person owns the Contract. (5)If You elect the GMIB Plus I, You are limited to allocating your purchase payments and Account Balance among the following funding options: (a)MetLife Conservative Allocation Investment Division, (b)MetLife Conservative to Moderate Allocation Investment Division, (c)MetLife Moderate Allocation Investment Division, (d)MetLife Moderate to Aggressive Allocation Investment Division, (e)American Funds(R) Moderation Allocation Investment Division, (f)American Funds(R) Balanced Allocation Investment Division, (g)American Funds(R) Growth Allocation Investment Division, (h)MetLife Growth Strategy Investment Division, (i)Fixed Account, (j)SSgA Growth ETF Investment Division, (k)SSgA Growth and Income ETF Investment Division, (l)BlackRock Money Market Investment Division (where available), (m)AllianceBernstein Global Dynamic Allocation Investment Division, 89 (n)AQR Global Risk Balanced Investment Division, (o)BlackRock Global Tactical Strategies Investment Division, (p)Invesco Balanced-Risk Allocation Investment Division, (q)JPMorgan Global Active Allocation Investment Division, (r)MetLife Balanced Plus Investment Division, (s)Schroders Global Multi-Asset Investment Division, (t)Pyramis(R) Government Income Investment Division, (u)Barclays Aggregate Bond Index Investment Division, (v)Pyramis(R) Managed Risk Investment Division, and (w)MetLife Multi-Index Targeted Risk Investment Division. (6)The Guaranteed Principal Option may be exercised starting with the tenth Contract Anniversary prior to the Contract Owner's 86th birthday. (7)We reserve the right to prohibit an Optional Reset if we no longer offer this benefit for a class of the Contract. We are waiving this right with respect to purchasers of the Contract offered by this prospectus who elect or have elected the GMIB Plus I benefit and will allow Optional Resets by those purchasers even if this benefit is no longer offered for a class of the Contract. (8)If You exercise the GMIB Plus I benefit under the life annuity with 10 years of annuity payments guaranteed option, the Guaranteed Period is 5 years for ages 84-85. (9)If You exercise the GMIB Plus I benefit under the life annuity, 10 years of annuity payments are guaranteed. (10)If approved in your state, the GMIB payout rates are enhanced to be at least 6% of the income base (calculated on the date the payments are determined) in the event; (i) You take no withdrawals prior to age 60; (ii) your Account Balance is fully withdrawn or decreases to zero on or after age 60 and there is no income base remaining; and (iii) the annuity option You select is the Lifetime Income Annuity with a 10-Year Guarantee Period. (11)The GMIB Annuity Table is calculated based on the Annuity 2000 Mortality Table with a 7-year age set back with interest of 2.5% per year. You may elect to participate in the Enhanced Dollar Cost Averaging program, provided that your destination Investment Divisions are one or more of the above-listed investment choices. RESTRICTIONS ON SUBSEQUENT PURCHASE PAYMENTS. Subsequent purchase payment restrictions under the GMIB Plus I are restricted as described in "Your Investment Choices -- Restrictions on Subsequent Purchase Payments -- GMIB I, GMIB Plus I, GMIB Plus II, GWB I, Enhanced GWB, LWG I, LWG II, GMAB and EDB I." For Contracts issued prior to JULY 16, 2007, the GMIB Plus II payout rates described in (10) above will not be applied. For Contracts issued prior to FEBRUARY 26, 2007, we offered a version of the GMIB Plus I that is no longer available. This prior version of the GMIB Plus I differs from the current version with respect to the calculation of the Annual Increase Amount and the applicable benefit charge. Specifically: (1) for purposes of calculating the Annual Increase Amount, (a) the annual increase rate is 5% per year through the Contract Anniversary on or following the Owner's 85th birthday, and (b) the amount of total withdrawal adjustments for a Contract Year as calculated in paragraph "a" of the "Income Base'' section above will be set equal to the dollar amount of total withdrawals in such Contract Year provided that such 90 total withdrawals do not exceed 5% of the Annual Increase Amount on the issue date or on the prior Contract Anniversary after the first Contract Year; and (2) the additional charge for the GMIB Plus I is 0.75% of the Income Base (with a maximum Optional Reset charge of 1.50% of the Income Base applicable upon the exercise of the Optional Reset feature). If your Income Base is increased due to an Optional Reset on a Contract Anniversary occurring on July 1, 2012 or later, we currently will increase the rider charge to 1.00% of the Income Base, applicable after the Contract Anniversary on which the Optional Reset occurs. EXAMPLE THE OPTIONAL STEP-UP Assume your initial purchase payment is $100,000 and no withdrawals are taken. The 5% Annual Increase Amount of the Income Base increases to $105,000 on the first Contract Anniversary ($100,000 increased by 5% per year, compounded annually). Assume your Account Balance at the first Contract Anniversary is $110,000 due to good market performance, and You elect an Optional Step-Up. The effect of the Optional Step-Up election is: (1)The 5% Annual Increase Amount of the Income Base resets from $105,000 to $110,000; (2)The 10-year waiting period to annuitize the Contract under the GMIB Plus I is reset to 10 years from the first Contract Anniversary; (3)The charge is reset to the fee we charge new Contract owners at that time; (4)The Guaranteed Principal Option can still be elected on the 10th Contract Anniversary; and The 5% Annual Increase Amount of the Income Base increases to $115,500 on the second anniversary ($110,000 increased by 5% per year, compounded annually). Assume your Account Balance at the second Contract Anniversary is $112,000 due to poor market performance. You may NOT elect an Optional Step-Up at this time, because the Account Balance is less than the 5% Annual Increase Amount of the Income Base. For Contracts issued prior to FEBRUARY 27, 2006, You may elect an Optional Step-Up as described above, except that: 1) You may elect an Optional Reset on any Contract Anniversary only on or after the third Contract Anniversary, and You may then elect an Optional Reset at any subsequent Contract Anniversary only if it has been at least three years since the last Optional Reset; and 2) You are required to affirmatively elect an Optional Reset in accordance with the procedures described above, the Automatic Annual Step-Up feature is not available. Subject to state approval, we will enhance your Contract to change the frequency of the resets from every third Contract Anniversary to each Contract Anniversary and You will also be able to elect Optional Automatic Resets under the Automatic Annual Step-Ups, following the same procedure, as described above. The optional benefit charge for this prior version of the GMIB Plus I is 0.75% of the guaranteed minimum Income Base. If your Income Base is increased due to an Optional Reset on a Contract Anniversary occurring on July 1, 2012 or later, We currently will increase the optional benefit charge to 1.00% of the Income Base, applicable after the Contract Anniversary on which the Optional Reset occurs. DESCRIPTION OF GMIB II The GMIB II is no longer available for purchase. The GMIB II was available only for Contract Owners up through age 75, and You could have only elected the GMIB II at the time You purchased the Contract. The GMIB II may be exercised after a 10-year waiting period and then only within 30 days following a Contract Anniversary, provided that the exercise must occur no later than the 30-day period following the Contract Anniversary on or following the owner's 85th birthday. 91 The GMIB II is otherwise identical to the GMIB Plus II, with the following exceptions: (1)The additional charge for GMIB II is 0.50% (2)The GMIB II Income Base is calculated as described above, except that, for purposes of calculating the Annual Increase Amount: a. the annual increase rate is 5% per year through the Contract Anniversary on or following the owner's 85th birthday and 0% thereafter, and b. the amount of total withdrawal adjustments for a Contract Year as calculated in paragraph "a" of the "Income Base" section of "Description of GMIB Plus II" above will be set equal to the dollar amount of total withdrawals (including any applicable Withdrawal Charge) in such Contract Year provided that such total withdrawals do not exceed 5% of the Annual Increase Amount on the issue date or on the prior Contract Anniversary after the first Contract Year. (3)There is no Guaranteed Principal Option. (4)There is no Optional Step-Up feature. (5)There are no limitations to how You may allocate your purchase payments and Account Balance among the investment choices. (6)The following replaces termination provision a), above: The 30th day following the Contract Anniversary on or following your 85th birthday. (7)The following replaces termination provision e), above: A change for any reason of the owner or joint owner or the Annuitant if a non-natural person owns the Contract. (8)Termination provisions, f) and g) above, do not apply. (9)The fixed annuity options are the Lifetime Income Annuity with a 10-year Guarantee Period (if You choose to annuitize after age 79, the Guarantee Period is reduced to: 9 years at age 80, 8 years at age 81, 7 years at age 82, 6 years at age 83, or 5 years at age 84 and 85) or the Lifetime Income Annuity for Two with a 10-year Guarantee Period. (not available for qualified Contracts where the difference in ages of the joint Annuitants, who are non-spouses, is greater than 10 years) (10)The following replaces termination provision d) above: Death of the owner or joint owner unless the spouse (age 84 or younger) is the Beneficiary and elects to continue the Contract, or death of the Annuitant if a non-natural person owns the Contract. (11)There are no enhanced payout rates. (12)The GMIB Annuity Table is calculated based on the Annuity 2000 Mortality Table with a 7-year age set back with interest of 2.5% per year. (13)Subsequent purchase payments are not currently restricted under the GMIB II. DESCRIPTION OF GMIB I The GMIB I is no longer available for purchase. In states where GMIB I was approved and GMIB II had not been approved You could have only elected the GMIB I at the time You purchased the Contract and if You were age 75 or less. Once elected, this optional benefit cannot be terminated except as described below. The GMIB I may be exercised after a 10-year waiting period, up through age 85, within 30 days following a Contract Anniversary. 92 The GMIB I is identical to the GMIB II, with the following exceptions: (1)The GMIB I Income Base is calculated as described above in "Description of GMIB Plus II -- Income Base", except that: a) Withdrawals may be payable as You direct without affecting the withdrawal adjustments; b) The annual increase rate is 6% per year through the Contract Anniversary immediately prior to the owner's 81st birthday and 0% thereafter; and (c)If total withdrawals in a Contract Year are 6% or less of the Annual Increase Amount on the issue date or previous Contract Anniversary, if later, the total withdrawal adjustments for the Contract Year will be set equal to the dollar amount of total withdrawals in that Contract Year. (2)The following replaces termination provision d), above: Death of the owner or death of the Annuitant if a non-natural person owns the Contract. (3)If You take a full withdrawal of your Account Balance, your Contract is terminated by us due to its small Account Balance and inactivity or your Contract lapses, the GMIB I terminates (even if there remains any income base) and no payments will be made under the benefit. For more information on when we may or may not terminate Your Deferred Annuity see "When We Can Cancel Your Deferred Annuity." (4)Subsequent purchase payments under the GMIB I are restricted as described in "Your Investment Choices -- Restrictions on Subsequent Purchase Payments -- GMIB I, GMIB Plus I, GMIB Plus II, GWB I, Enhanced GWB, LWG I, LWG II, GMAB and EDB I." We currently waive the contractual requirement that terminates the GMIB I in the event of the death of the owner in circumstances where the spouse of the owner elects to continue the Contract. See "Death Benefit -- Generally." In such event, the GMIB I will automatically continue unless the spouse elects to terminate the rider. We are permanently waiving this requirement with respect to purchasers of the Contract offered by this Prospectus who have elected GMIB I. GUARANTEED WITHDRAWAL BENEFITS We offer optional guaranteed withdrawal benefits for an additional charge. There are four Guaranteed Withdrawal Benefits, two versions of the GWB and two versions of the LWG under this Contract: . Lifetime Withdrawal Guarantee II ("LWG II") . Lifetime Withdrawal Guarantee I ("LWG I") . Enhanced Guaranteed Withdrawal Benefit ("Enhanced GWB") . Guaranteed Withdrawal Benefit I ("GWB I") None of the LWGs or the GWBs are available for sale. Each of the guaranteed withdrawal benefits guarantees that the entire amount of purchase payments You make will be returned to You through a series of withdrawals that You may begin taking immediately or at a later time, provided withdrawals in any Contract Year do not exceed the maximum amount allowed. This means that, regardless of negative investment performance, You can take specified annual withdrawals until the entire amount of the purchase payments You made during the time period specified in your benefit has been returned to You. Moreover, if You make your first withdrawal on or after the date You reach age 59 1/2, the LWGs riders guarantee income, without annuitizing the Contract, for your life (and, for Contracts not issued in New York State, the life of your spouse, if the Joint Life version of this optional benefit was elected, and your spouse elects to continue the Contract and is at least age 59 1/2 at continuation), even after the entire amount of purchase payments has been returned. (See "Description of the LWG II" below.) 93 There may be versions of each optional guaranteed withdrawal benefit that vary by issue date and state availability. In addition, a version may become available (or unavailable) in different states at different times. Please check with your registered representative regarding which version(s) are available in your state. If You have already been issued a Contract, please check your Contract and riders for the specific provisions applicable to You. If You purchase a guaranteed withdrawal benefit, You must elect one version at the time You purchase the Contract, prior to age 86. A maximum of two versions of the GWBs are offered in any particular state. Please check with your registered representative regarding which version(s) are available in your state. You may not have this benefit and another living benefit (GMIB or GMAB) or the EDB I in effect at the same time. Once elected, the optional benefit may not be terminated except as stated below. FACTS ABOUT GUARANTEED WITHDRAWAL BENEFITS MANAGING YOUR WITHDRAWALS. The GWB guarantee may be reduced if your annual withdrawals or any amount applied to a pay-out option are greater than the maximum amount allowed, called the Annual Benefit Payment, which is described in more detail below. The GWB does not establish or guarantee an Account Balance or minimum return for any Investment Division. THE BENEFIT BASE (AS DESCRIBED BELOW) UNDER THE GWB I AND ENHANCED GWB AND THE REMAINING GUARANTEED WITHDRAWAL AMOUNT (AS DESCRIBED BELOW) UNDER THE LIFETIME WITHDRAWAL GUARANTEES CANNOT BE TAKEN AS A LUMP SUM. (However, if You cancel a Lifetime Withdrawal Guarantee Benefit after a waiting period of at least fifteen years, the Guaranteed Principal Adjustment will increase your Account Balance to the purchase payments credited within the first 120 days of the date that we issue the Contract, reduced proportionately for any withdrawals. See "Description of the LWG II -- Cancellation and Guaranteed Principal Adjustment" below.) INCOME TAXES AND PENALTIES MAY APPLY TO YOUR WITHDRAWALS, AND WITHDRAWAL CHARGES MAY APPLY TO WITHDRAWALS DURING THE FIRST CONTRACT YEAR UNLESS YOU TAKE THE NECESSARY STEPS TO ELECT TO TAKE SUCH WITHDRAWALS UNDER A SYSTEMATIC WITHDRAWAL PROGRAM. WITHDRAWAL CHARGES WILL ALSO APPLY TO WITHDRAWALS OF PURCHASE PAYMENTS THAT EXCEED THE FREE WITHDRAWAL AMOUNT. IF IN ANY CONTRACT YEAR YOU TAKE CUMULATIVE WITHDRAWALS THAT EXCEED THE ANNUAL BENEFIT PAYMENT, THE TOTAL PAYMENTS THAT THE GWB GUARANTEES THAT YOU OR YOUR BENEFICIARY WILL RECEIVE FROM THE CONTRACT OVER TIME MAY BE LESS THAN THE INITIAL GUARANTEED WITHDRAWAL AMOUNT (TOTAL GUARANTEED WITHDRAWAL AMOUNT FOR THE LIFETIME WITHDRAWAL GUARANTEES). THIS REDUCTION MAY BE SIGNIFICANT AND MEANS THAT RETURN OF YOUR PURCHASE PAYMENTS MAY BE LOST. THE GWB CHARGE WILL CONTINUE TO BE DEDUCTED AND CALCULATED BASED ON THE GUARANTEED WITHDRAWAL AMOUNT (TOTAL GUARANTEED WITHDRAWAL AMOUNT FOR THE LIFETIME WITHDRAWAL GUARANTEES) UNTIL TERMINATION OF THE OPTIONAL BENEFIT. For purposes of calculating the Guaranteed Withdrawal Amount or the Total Guaranteed Withdrawal Amount (for the LWGs), purchase payment credits (I.E., bonus payments) are not included. In any event, withdrawals under the GWB will reduce your Account Balance and death benefits. CHARGES. If the LWG is in effect, we will continue to assess the GWB benefit charge even in the case where your Remaining Guaranteed Withdrawal Amount, as described below, equals zero. However, if the GWB I or Enhanced GWB is in effect, we will not continue to assess the GWB charge if your Benefit Base, as described below, equals zero. TAXES. Withdrawals of taxable amounts will be subject to ordinary income tax and, if made prior to age 591/2, a 10% Federal income tax penalty may apply. TAX TREATMENT. THE TAX TREATMENT OF WITHDRAWALS UNDER THE GWB AND LWG IS UNCERTAIN. IT IS CONCEIVABLE THAT THE AMOUNT OF POTENTIAL GAIN COULD BE DETERMINED BASED ON THE BENEFIT BASE (REMAINING GUARANTEED WITHDRAWAL AMOUNT UNDER THE LIFETIME WITHDRAWAL GUARANTEES) AT THE TIME OF THE WITHDRAWAL, IF THE BENEFIT BASE (OR REMAINING GUARANTEED WITHDRAWAL AMOUNT) IS GREATER THAN THE ACCOUNT BALANCE (PRIOR TO WITHDRAWAL CHARGES, IF 94 APPLICABLE). THIS COULD RESULT IN A GREATER AMOUNT OF TAXABLE INCOME REPORTED UNDER A WITHDRAWAL AND CONCEIVABLY A LIMITED ABILITY TO RECOVER ANY REMAINING BASIS IF THERE IS A LOSS ON SURRENDER OF THE CONTRACT. CONSULT YOUR TAX ADVISER PRIOR TO PURCHASE. GWB, LWG AND DECEDENT CONTRACTS. If You are purchasing this Contract with a non-taxable transfer of the death benefit proceeds of any annuity Contract or IRA (or any other tax-qualified arrangement) of which You were the Beneficiary and You are "stretching" the distributions under the Internal Revenue Service required distribution rules, You may not purchase the LWG. If You purchasing this Contract with a nontaxable transfer of the death proceeds of any Non-Qualified annuity Contract of which You were the Beneficiary and You are "stretching" the distributions under the Internal Revenue Service distribution rules, You may not purchase the Enhanced GWB or GWB. CIVIL UNIONS. A purchaser who has or is contemplating a civil union or same sex marriage should note that such partner/spouse would not be able to receive continued payments upon the death of the owner under the Joint Life version of the LWG. DESCRIPTION OF THE LWG II TOTAL GUARANTEED WITHDRAWAL AMOUNT. While the LWG II is in effect, we guarantee that You will receive a minimum amount over time. We refer to this minimum amount as the Total Guaranteed Withdrawal Amount. The initial Total Guaranteed Withdrawal Amount is equal to your initial purchase payment. We increase the Total Guaranteed Withdrawal Amount (up to a maximum of $10,000,000) by each additional purchase payment. If You take a withdrawal that does NOT exceed the Annual Benefit Payment (see "Annual Benefit Payment" below), then we will not reduce the Total Guaranteed Withdrawal Amount. We refer to this type of withdrawal as a Non-Excess Withdrawal. If, however, You take a withdrawal that results in cumulative withdrawals for the current Contract Year that exceeds the Annual Benefit Payment, then we will reduce the Total Guaranteed Withdrawal Amount in the same proportion that the withdrawal (including any applicable Withdrawal Charge) reduces the Account Balance. We refer to this type of withdrawal as an Excess Withdrawal. THIS REDUCTION MAY BE SIGNIFICANT, PARTICULARLY WHEN THE ACCOUNT BALANCE IS LOWER THAN THE TOTAL GUARANTEED WITHDRAWAL AMOUNT (SEE "MANAGING YOUR WITHDRAWALS" BELOW). Limiting your cumulative withdrawals during a Contract Year to not more than the Annual Benefit Payment will result in dollar-for-dollar treatment of the withdrawals. REMAINING GUARANTEED WITHDRAWAL AMOUNT. The REMAINING GUARANTEED WITHDRAWAL AMOUNT is the remaining amount You are guaranteed to receive over time. The initial Remaining Guaranteed Withdrawal Amount is equal to the initial Total Guaranteed Withdrawal Amount. We increase the Remaining Guaranteed Withdrawal Amount (up to a maximum of $10,000,000) by additional purchase payments, and we decrease the Remaining Guaranteed Withdrawal Amount by withdrawals. If You take a Non-Excess Withdrawal, we will decrease the Remaining Guaranteed Withdrawal Amount dollar-for-dollar by the amount of the Non-Excess Withdrawal (including any applicable Withdrawal Charge). If, however, You take an Excess Withdrawal, then we will reduce the Remaining Total Guaranteed Withdrawal Amount in the same proportion that the withdrawal (including any applicable Withdrawal Charge) reduces the Account Balance. THIS REDUCTION MAY BE SIGNIFICANT, PARTICULARLY WHEN THE ACCOUNT BALANCE IS LOWER THAN THE REMAINING GUARANTEED WITHDRAWAL AMOUNT (SEE "MANAGING YOUR WITHDRAWALS" BELOW). Limiting your cumulative withdrawals during a Contract Year to not more than the Annual Benefit Payment will result in dollar-for-dollar treatment of the withdrawals. As described below under "Annual Benefit Payment," the Remaining Guaranteed Withdrawal Amount is the total amount you are guaranteed to receive over time if you take your first withdrawal before the Contract Owner or oldest Joint Owner (or the Annuitant if the Contract Owner is non-natural person) is age 59 1/2. The Remaining Guaranteed Withdrawal Amount is also used to calculate an alternate death benefit available under the LWG (see "Additional Information" below). 95 7.25% COMPOUNDING INCOME AMOUNT. For all Contracts except Contracts issued in New York, on each Contract Anniversary until the earlier of: (a) the date of the second withdrawal from the Contract or (b) the tenth Contract Anniversary, we increase the Total Guaranteed Withdrawal Amount and the Remaining Guaranteed Withdrawal Amount by an amount equal to 7.25% multiplied by the Total Guaranteed Withdrawal Amount and Remaining Guaranteed Withdrawal Amount before such increase (up to a maximum of $10,000,000). We take the Total Guaranteed Withdrawal Amount and the remaining Guaranteed Withdrawal Amount as of the last day of the Contract Year to determine the amount subject to the increase. We may also increase the Total Guaranteed Withdrawal Amount and Remaining Guaranteed Withdrawal Amount by the Automatic Annual Step-Up (discussed below), if that would result in a higher Total Guaranteed Withdrawal Amount and Remaining Guaranteed Withdrawal Amount. 6% COMPOUNDING INCOME AMOUNT (NEW YORK STATE ONLY). For Contracts issued in New York State, if You elect the Single Life Version of LWG II, on each Contract Anniversary beginning with the Contract Anniversary following the date You reach age 63, until the earlier of: (a) five years or (b) the date of the first withdrawal from the Contract, we increase the Total Guaranteed Withdrawal Amount and the Remaining Withdrawal Amount by an amount equal to 6% multiplied by the Total Guaranteed Withdrawal Amount and the Remaining Guaranteed Withdrawal Amount before such increase (up to a maximum of $10,000,000). We take the Total Guaranteed Withdrawal Amount and the remaining Guaranteed Withdrawal Amount as of the last day of the Contract Year to determine the amount subject to the increase. If the first withdrawal is taken before the Contract Anniversary following the date You reach age 63, the Total Guaranteed Withdrawal Amount and Remaining Guaranteed Withdrawal Amount will never be increased by the 6% Compounding Income Amount. If You elect the Joint Life Version of LWG II, on each Contract Anniversary beginning with the Contract Anniversary following the date the younger spouse reaches age 66, until the earlier of: (a) five years or (b) the date of the first withdrawal from the Contract, we increase the Total Guaranteed Withdrawal Amount and the Remaining Withdrawal Amount by an amount equal to 6% multiplied by the Total Guaranteed Withdrawal Amount and the Remaining Guaranteed Withdrawal Amount before such increase (up to a maximum of $10,000,000). We take the Total Guaranteed Withdrawal Amount and the remaining Guaranteed Withdrawal Amount as of the last day of the Contract Year to determine the amount subject to the increase. We may increase the Total Guaranteed Withdrawal Amount and the Remaining Guaranteed Withdrawal Amount by the Automatic Annual Step-up (discussed below), if that would result in a higher Total Guaranteed Withdrawal Amount and Remaining Guaranteed Withdrawal Amount. If the first withdrawal is taken before the Contract Anniversary following the date the youngest spouse reaches age 66, the Total Guaranteed Withdrawal Amount and Remaining Guaranteed Withdrawal Amount will never be increased by the 6% Compounding Income Amount. AUTOMATIC ANNUAL STEP-UP. On each Contract Anniversary prior to the Contract owner's 91st birthday (or in New York State, the youngest spouse's 91st birthday, if the Joint Life Version is elected), an Automatic Annual Step-Up will occur, provided that the Account Balance exceeds the Total Guaranteed Withdrawal Amount (after compounding) immediately before the step-up (and provided that You have not chosen to decline the step-up as described below). The Automatic Annual Step-Up will: . resets the Total Guaranteed Withdrawal Amount and the Remaining Guaranteed Withdrawal Amount to the Account Balance on the date of the step-up, up to a maximum of $10,000,000 regardless of whether or not You have taken any withdrawals; . resets the Annual Benefit Payment equal to 5% of the Total Guaranteed Withdrawal Amount after the Step-Up (or 6% if You make your first withdrawal on or after the date You reach age 76) or, for Contracts issued in New York State, if the Joint Life version of LWG II was elected, reset the Annual Benefit Payment equal to 4.5% of the Total Guaranteed Withdrawal Amount after the step-up (or 5% if You make your first withdrawal on or after the Contract Anniversary following the date You and your spouse are at least age 63); and 96 . may reset the LWG II charge to a rate that does not exceed the lower of: (a) the maximum of 1.60% (Single Life version) or 1.80% (Joint Life version) or (b) the current rate that we would charge for the same rider available for new Contract purchases at the time of the Automatic Annual Step-Up. For Contracts issued on or before February 23, 2009, the maximum charge upon an Automatic Annual Step-Up is 1.25% (Single Life version) or 1.50% (Joint Life version). In the event that the charge applicable to Contract purchases at the time of the step-up is higher than your current LWG II charge, we will notify You in writing a minimum of 30 days in advance of the applicable Contract Anniversary and inform You that You may choose to decline the Automatic Annual Step-Up. If You choose to decline the Automatic Annual Step-Up, You must notify us in writing at our Administrative Office no less than seven calendar days prior to the Contract Anniversary. Once You notify us of your decision to decline the Automatic Annual Step-Up, You will no longer be eligible for future Automatic Annual Step-Ups until You notify us in writing at our Administrative Office that You wish to reinstate the Automatic Annual Step-Ups. This reinstatement will take effect at the next Contract Anniversary after we receive your request for reinstatement. Please note that the Automatic Annual Step-Up may be of limited benefit if You intend to make purchase payments that would cause your Account Balance to approach $10,000,000, because the Total Guaranteed Withdrawal Amount and Remaining Guaranteed Withdrawal Amount cannot exceed $10,000,000. For Contracts issued on or before February 23, 2009, if your Total Guaranteed Withdrawal Amount is increased due to an Automatic Annual Step-Up on a Contract Anniversary occurring on July 1, 2012 or later, We currently will increase the optional benefit charge for the Single Life version to 0.95% of the of the Total Guaranteed Withdrawal Amount, and We will increase the optional benefit charge for the Joint Life version to 1.20% of the of the Total Guaranteed Withdrawal Amount, applicable after the Contract Anniversary on which the Automatic Annual Step-Up occurs. ANNUAL BENEFIT PAYMENT. For all Contracts except Contracts issued in New York, the initial Annual Benefit Payment is equal to the initial Total Guaranteed Withdrawal Amount multiplied by the 5% withdrawal rate (6% withdrawal rate if You make the first withdrawal on or after the date You reach age 76). If the Total Guaranteed Withdrawal Amount is later recalculated (for example, because of additional purchase payments, the 7.25% Compounding Income Amount, the Automatic Annual Step-Up, or Excess Withdrawals), the Annual Benefit Payment is reset equal to the new Total Guaranteed Withdrawal Amount multiplied by the 5% withdrawal rate (6% withdrawal rate if You make your first withdrawal on or after the date You reach age 76). ANNUAL BENEFIT PAYMENT (NEW YORK STATE ONLY). For Contracts issued in New York State, if You elect the Single Life Version of LWG II, the Annual Benefit Payment is equal to the initial Total Guaranteed Withdrawal Amount multiplied by the 5% withdrawal rate (6% if You make the first withdrawal on or after the Contract Anniversary following the date You reach age 76). If You elect the Joint Life Version of LWG II, the initial Annual Benefit Payment is equal to the Total Guaranteed Withdrawal Amount multiplied by the 4.5% withdrawal rate (5% withdrawal rate if You make the first withdrawal on or after the Contract Anniversary following the date You and your spouse are at least age 63). If the Total Guaranteed Withdrawal Amount is later recalculated (for example, because of additional purchase payments, the 6% Compounding Income Amount, the Automatic Step-Up, or Excess Withdrawals), the Annual Benefit Payment is reset to equal the new Total Guaranteed Withdrawal Amount multiplied by the 4.5% withdrawal rate (5% withdrawal rate if You make your first withdrawal on or after the Contract Anniversary following the date You and your spouse reach age 63). 97 IT IS IMPORTANT TO NOTE: . If You take your first withdrawal before the date You reach age 59 1/2 (or, for Contracts issued in New York State with the Joint Life Version, if You take your first withdrawal before the date when both You and your spouse are at least 59 1/2), we will continue to pay the Annual Benefit Payment each year until the Remaining Guaranteed Withdrawal Amount is depleted, even if your Account Balance declines to zero. This means if your Account Balance is depleted due to a Non-Excess Withdrawal or the deduction of the benefit charge and your Remaining Guaranteed Withdrawal Amount is greater than zero, we will pay You the remaining Annual Benefit Payment, if any, not yet withdrawn during the Contract Year that the Account Balance was depleted, and beginning in the following Contract Year, we will continue paying the Annual Benefit Payment to You each year until your Remaining Guaranteed Withdrawal Amount is depleted. This guarantees that You will receive your purchase payments even it your Account Balance declines to zero due to market performance so long as You do not take Excess Withdrawals, however, You will not be guaranteed income for the rest of your life. . If You take your first withdrawal on or after the date your reach age 59 1/2, we will continue to pay the Annual Benefit Payment each year for the rest of your life (and the life of your spouse, if the Joint Life Version is elected and your spouse elects to continue the Contract and is at least age 59 1/2 at continuance, and, for Contracts issued in New York State, if You take your first withdrawal when both You and your spouse are at least age 591/2), even if your Remaining Guaranteed Withdrawal Amount or your Account Value declines to zero. This means if your Remaining Guaranteed Withdrawal Amount and/or your Account Balance is depleted due to a Non-Excess Withdrawal or the deduction of the benefit charge we will pay to You the remaining Annual Benefit Payment, if any, not yet withdrawn during that Contract Year that the Account Balance was depleted, and beginning in the following Contract Year, we will continue paying the Annual Benefit Payment to You each year for the rest of your life (and your spouse's life, if applicable). Therefore, You will be guaranteed income for life. . If You take your first withdrawal on or after the date You reach age 76, your Annual Benefit Payment will be set equal to a 6% withdrawal rate multiplied by the Total Guaranteed Withdrawal Amount. For Contracts issued in New York State, if You elect the Joint Life Version, if You take your first withdrawal on or after the Contract Anniversary following the date You and your spouse are at least age 63, your Annual Benefit Payment will be set equal to 5% withdrawal rate multiplied by the Total Guaranteed Withdrawal Amount. . IF YOU HAVE ELECTED THE LWG II, YOU SHOULD CAREFULLY CONSIDER WHEN TO BEGIN TAKING WITHDRAWALS. IF YOU BEGIN TAKING WITHDRAWALS TOO SOON, YOU MAY LIMIT THE VALUE OF THE LWG II. FOR EXAMPLE, WE NO LONGER INCREASE YOUR TOTAL GUARANTEED WITHDRAWAL AMOUNT BY THE 7.25% COMPOUNDING INCOME AMOUNT (6% COMPOUNDING INCOME AMOUNT FOR CONTRACTS ISSUED IN NEW YORK STATE) ONCE YOU MAKE YOUR SECOND WITHDRAWAL (FIRST WITHDRAWAL FOR CONTRACTS ISSUED IN NEW YORK STATE). HOWEVER, IF YOU DELAY TAKING WITHDRAWALS FOR TOO LONG, YOU MAY LIMIT THE NUMBER OF YEARS AVAILABLE FOR YOU TO TAKE WITHDRAWALS IN THE FUTURE (DUE TO LIFE EXPECTANCY) AND YOU MAY BE PAYING FOR A BENEFIT YOU ARE NOT USING. . At any time during the pay-in phase, You can elect to annuitize under current annuity rates in lieu of continuing the LWG II. . Annuitization may provide higher income amounts if the current income payment type rates applied to the adjusted Account Balance exceed the payments under the LWG II optional benefit. Also, income payments provided by annuitizing under current annuity rates may be higher due to different tax treatment of this income compared to the tax treatment of the payments received under the LWG II optional benefit. . You have the option of receiving withdrawals under the LWG II or receiving payments under a pay-out option. You should consult with your registered representative when deciding how to receive income under this Contract. In making this decision, You should consider many factors, including the relative amount of current income provided by the two options, the potential ability to receive higher future payments through potential increases to 98 the value of the LWG II, your potential need to make additional withdrawals in the future, and the relative values to You of the death benefits available prior to and after annuitization (See "Lifetime Withdrawal Guarantee and Annuitization."). MANAGING YOUR WITHDRAWALS. It is important that You carefully manage your annual withdrawals. To retain the full guarantees of this benefit, your annual withdrawals cannot exceed the Annual Benefit Payment each Contract Year. In other words, You should not take Excess Withdrawals. We do not include Withdrawal Charges for the purpose of calculating whether You have made an Excess Withdrawal. IF YOU DO TAKE AN EXCESS WITHDRAWAL, WE WILL RECALCULATE THE TOTAL GUARANTEED WITHDRAWAL AMOUNT AND REDUCE THE ANNUAL BENEFIT PAYMENT TO THE NEW TOTAL GUARANTEED WITHDRAWAL AMOUNT MULTIPLIED BY THE 5% WITHDRAWAL RATE (6% WITHDRAWAL RATE IF YOU MAKE YOUR FIRST WITHDRAWAL ON OR AFTER THE DATE YOU REACH AGE 76). IN ADDITION, AS NOTED ABOVE, IF YOU TAKE AN EXCESS WITHDRAWAL, WE WILL REDUCE THE REMAINING TOTAL GUARANTEED WITHDRAWAL AMOUNT IN THE SAME PROPORTION THAT THE WITHDRAWAL REDUCES THE ACCOUNT BALANCE. THESE REDUCTIONS IN THE TOTAL GUARANTEED WITHDRAWAL AMOUNT, ANNUAL BENEFIT PAYMENT, AND REMAINING GUARANTEED WITHDRAWAL AMOUNT MAY BE SIGNIFICANT. You are still eligible to receive either lifetime payments or the remainder of the Remaining Guaranteed Withdrawal Amount so long as the withdrawal that exceeded the Annual Benefit Payment did not cause your Account Balance to decline to zero. AN EXCESS WITHDRAWAL THAT REDUCES THE ACCOUNT BALANCE VALUE TO ZERO WILL TERMINATE THE CONTRACT. You can always take Non-Excess Withdrawals. However, if You choose to receive only a part of your Annual Benefit Payment in any given Contract Year, your Annual Benefit Payment is not cumulative and your Remaining Guaranteed Withdrawal Amount and Annual Benefit Payment will not increase. For example, if your Annual Benefit Payment is 5% of your Total Guaranteed Withdrawal Amount and Remaining Guaranteed Withdrawal Amount, You cannot withdraw 3% in one year and then withdraw 7% the next year without making an Excess Withdrawal in the second year. REQUIRED MINIMUM DISTRIBUTIONS. For IRAs and other Contracts subject to Section 401(a)(9) of the Internal Revenue Code, You may be required to take withdrawals to fulfill minimum distribution requirements generally beginning at age 70 1/2. These required distributions may be larger than your Annual Benefit Payment. If You enroll in the automated required minimum distribution service, AFTER THE FIRST CONTRACT YEAR, we will increase your Annual Benefit Payment to equal your most recently calculated required minimum distribution amount, if such amount is greater than your Annual Benefit Payment. YOU MUST BE ENROLLED ONLY IN THE AUTOMATED REQUIRED MINIMUM DISTRIBUTION SERVICE TO QUALIFY FOR THIS INCREASE IN THE ANNUAL BENEFIT PAYMENT. YOU MAY NOT BE ENROLLED IN ANY OTHER SYSTEMATIC WITHDRAWAL PROGRAM. THE FREQUENCY OF YOUR WITHDRAWALS MUST BE ANNUAL. THE AUTOMATED REQUIRED MINIMUM DISTRIBUTION SERVICE IS BASED ON INFORMATION RELATING TO THIS CONTRACT ONLY. To enroll in the automated required minimum distribution service, please contact your Administrative Office. INVESTMENT ALLOCATION RESTRICTIONS. If You elect the LWG II, there are certain investment allocation restrictions. Please see "Your Investment Choices -- Investment Allocation Restrictions For Certain Optional Benefits" above. RESTRICTIONS ON SUBSEQUENT PURCHASE PAYMENTS. Subsequent purchase payment restrictions under the LWG II are restricted as described in "Your Investment Choices -- Restrictions on Subsequent Purchase Payments -- GMIB I, GMIB Plus I, GMIB Plus II, GWB I, Enhanced GWB, LWG I, LWG II, GMAB and EDB I." JOINT LIFE VERSION. Like the Single Life version of the LWG II, the Joint Life version must be elected at the time You purchase the Contract, and the Contract Owner (or oldest joint owner) must be age 85 or younger. Under the Joint Life version, when the owner of the Contract dies (or when the first joint owner dies), the LWG II will automatically remain in effect only if the spouse is the primary Beneficiary and elects to continue the Contract under the spousal continuation provisions. This means that if You purchase the Joint Life version and subsequently get divorced, or your spouse is no longer the primary Beneficiary at the time of your death, he or she will not be eligible to receive payments under the LWG 99 II. If the spouse is younger than age 59 1/2 when he or she elects to continue the Contract, the spouse will receive the Annual Benefit Payment each year until the Remaining Guaranteed Withdrawal Amount is depleted. If the spouse is age 59 1/2 or older when he or she elects to continue the Contract, the spouse will receive the Annual Benefit Payment each year for the remainder of his or her life. If the first withdrawal was taken before the Contract Owner died (or before the first joint owner died), the withdrawal rate upon continuation of the Contract and the LWG II rider by the spouse will be based on the age of the Contract Owner, oldest joint owner or youngest spouse (if the Joint Life version is elected in New York) at the time the first withdrawal was taken. In situations in which a trust is both the owner and Beneficiary of the Contract, the Joint Life version of the benefit would not apply. For Contracts issued in New York State, in order for You and your spouse to receive lifetime income, both You and your spouse must be at least age 59 1/2 at the time of the first withdrawal. Please note that a change of the primary Beneficiary will terminate the LWG II rider in New York State. The age at which the 6% Compounding Income Amount may begin to be applied to the Total Guaranteed Withdrawal Amount and Remaining Guaranteed Withdrawal Amount is different for the Single Life and Joint Life versions of LWG II for Contracts issued in New York State (see "6% Compounding Income Amount" above.) In addition, the withdrawal rate for the Joint Life Version of LWG II may differ from the withdrawal rate for the Single Life Version for Contracts issued in New York State -- (see "Annual Benefit Payment" above). CANCELLATION AND GUARANTEED PRINCIPAL ADJUSTMENT. You may elect to cancel the LWG Benefit II on the Contract Anniversary every five Contract Years for the first 15 Contract Years and annually thereafter. We must receive your cancellation request within 30 days following the eligible Contract Anniversary in writing at our Administrative Office. The cancellation will take effect on receipt of your request. If cancelled, the LWG II will terminate, we will no longer deduct the LWG II charge and, the investment allocation restrictions described in "Investment Choices -- Investment Allocation Restrictions for Certain Optional Benefits" will no longer apply. The Contract, however, will continue. If You cancel the LWG II on the fifteenth Contract Anniversary or any eligible Contract Anniversary thereafter, we will add a Guaranteed Principal Adjustment to your Account Balance (does not apply to Contracts issued in Washington State). The Guaranteed Principal Adjustment is intended to restore your initial investment in the Contract in the case of poor investment performance. The Guaranteed Principal Adjustment is equal to (a) - (b) where: (a)is purchase payments credited within 120 days of the date that we issued the Contract, reduced proportionately by the percentage reduction in Account Balance attributable to any partial withdrawals taken (including any applicable Withdrawal Charges) and (b)is the Account Balance on the date of cancellation. The Guaranteed Principal Adjustment will be added to each applicable Investment Division in the ratio the portion of the Account Balance in such Investment Division bears to the total Account Balance in all Investment Divisions. The Guaranteed Principal Adjustment will never be less than zero. Only purchase payments made during the first 120 days that You hold the Contract are taken into consideration in determining the Guaranteed Principal Adjustment. Contract Owners who anticipate making purchase payments after 120 days should understand that such payments will not increase the Guaranteed Principal Adjustment. Purchase payments made after 120 days are added to your Account Balance and impact whether or not a benefit is due. Therefore, the LWG II may not be appropriate for You if You intend to make additional purchase payments after the 120 day period and are purchasing the LWG II for its Guaranteed Principal Adjustment feature. TERMINATION OF THE LWG II. The LWG II will terminate upon the earliest of: (1)The date of a full withdrawal of the Account Balance (a pro rata portion of the charge will be assessed; You are still eligible to receive either the Remaining Guaranteed Withdrawal Amount or lifetime payments, provided the 100 withdrawal did not exceed the Annual Benefit Payment and the provisions and conditions of this optional benefit have been met); (2)The date the Account Balance is applied to a pay-out option (a pro rata portion of the charge for this benefit will be assessed); (3)The date there are insufficient amounts to deduct the LWG charge and your Contract is thereby terminated (whatever Account Balance is available will be applied to pay the charge and You are still eligible to receive either the Remaining Guaranteed Withdrawal Amount or lifetime payments, provided the provisions and conditions of this optional benefit have been met, however You will have no other benefits under the Contract); (4)Death of the Contract Owner or joint Contract Owner (or the Annuitant if the owner is a non-natural person), except where the Contract is issued under the Joint Life version of the LWG II, the primary Beneficiary is the spouse, and the spouse elects to continue the Contract under the spousal continuation provisions of the Contract; (5)Change in Contract Owners or joint Contract Owners or Annuitants (if the Contract Owner is a non-natural person), subject to our administrative procedures (a pro rata portion of the charge for this benefit will be assessed, except for termination due to death; (6)The Deferred Annuity is terminated (a pro-rata portion of the charge will be assessed, except for termination due to death.) (7)Effective date of the cancellation of this benefit by the Contract Owner; (8)The date You assign your Contract (a pro-rata portion of the rider charge will be assessed), subject to our administrative procedures; or (9)For Contracts issued in New York State with the Joint Life Version, the effective date of a change of the primary Beneficiary (a pro-rata portion of the rider charge will be assessed), subject to our administrative procedures. Under our current administrative procedures, we will waive the termination of the LWG II if You assign a portion of the Contract under the following limited circumstances. If the assignment is solely for your benefit on account of your direct transfer of the Account Balance under Section 1035 of the Code to fund premiums for a long term care insurance policy or purchase payments for an annuity Contract issued by an insurance company which is not our affiliate and which is licensed to conduct business in any state. All such direct transfers are subject to any applicable Withdrawal Charges. Once the optional benefit is terminated, the LWG II charge will no longer be deducted and the LWG II investment allocation restrictions will no longer apply. ADDITIONAL INFORMATION. The LWG II may affect the death benefit available under your Contract. If the owner or joint owner should die while the LWG II is in effect, an alternative death benefit amount will be calculated under the LWG II that can be taken in a lump sum. The LWG II death benefit amount that may be taken as a lump sum will be equal to total purchase payments less any partial withdrawals (deducted on a dollar-for-dollar basis). If this death benefit amount is greater than the death benefit provided by your Contract, and if You made no Excess Withdrawals, then this death benefit amount will be paid instead of the death benefit provided by the Contract. All other provisions of your Contract's death benefit will apply. Alternatively, the Beneficiary may elect to receive the Remaining Guaranteed Withdrawal Amount as a death benefit, in which case we will pay the Remaining Guaranteed Withdrawal Amount on a monthly basis (or any mutually agreed upon frequency, but no less frequently than annually) until the Remaining Guaranteed Withdrawal Amount is exhausted. The surviving spouse's withdrawal rights then come to an end. Currently, there is no minimum dollar amount for the payments; however, we reserve the right to accelerate any payment, in a lump sum, that is less than $500 (see below). This death benefit will be paid instead of the applicable contractual death benefit or the alternative death benefit amount calculated 101 under the LWG II as described above. Otherwise, the provisions of those contractual death benefits will determine the amount of the death benefit. Except as may be required by the Internal Revenue Code, an annual payment will not exceed the Annual Benefit Payment. If your Beneficiary dies while such payments are made, we will continue making the payments to the Beneficiary's estate unless we have agreed to another payee in writing. If the Contract is a Non-Qualified Contract, any death benefit must be paid out over a time period and in a manner that satisfies Section 72(s) of the Internal Revenue Code. If the Contract Owner (or the Annuitant, if the Contract Owner is not a natural person) dies prior to the "annuity starting date" (as defined under the Internal Revenue Code and regulations thereunder), the period over which the Remaining Guaranteed Withdrawal Amount is paid as a death benefit cannot exceed the remaining life expectancy of the payee under the appropriate IRS tables. For purposes of the preceding sentence, if the payee is a non-natural person, the Remaining Guaranteed Withdrawal Amount must be paid out within 5 years from the date of death. Payments under this death benefit must begin within 12 months following the date of death. We reserve the right to accelerate any payment in a lump sum that is less than $500 or to comply with requirements under the Internal Revenue Code (including minimum distribution requirements for IRAs and other Contracts subject to Section 401(a)(9) of the Internal Revenue Code and Non-Qualified Contracts subject to Section 72(s) of the Internal Revenue Code). If You terminate the LWG II because (1) You make a total withdrawal of your Account Balance; (2) your Account Balance is insufficient to pay the LWG II charge; or (3) the Contract Owner dies, except where the Beneficiary or joint owner is the spouse of the Contract Owner and the spouse elects to continue the Contract and the spouse is less than 85 years old, You may not make additional purchase payments under the Contract. CHARGES. For the LWG II the current charges are 1.25% of the Total Guaranteed Withdrawal Amount for the Single Life version and 1.50% for the Joint Life version. If an Automatic Annual Step-Up occurs we may increase the LWG II charge to the then current charge for the same optional benefit, but no more than a maximum of 1.60% for the Single Life version or 1.80% for the Joint Life version. The charge is deducted for the prior Contract Year on the Contract Anniversary after applying any 7.25% Compounding Income Amount (6% Compounding Income Amount for Contracts issued in New York State) and prior to taking into account any Automatic Annual Step-Up occurring by withdrawing amounts on a pro rata basis from your Fixed Account balance, Enhanced Dollar Cost Averaging Program balance and Separate Account balance. We take amounts from the Separate Account by canceling accumulation units from your Separate Account balance. The Fixed Account is not available with the C Class Deferred Annuity or in the State of New York if this optional benefit is selected. LIFETIME WITHDRAWAL GUARANTEE AND ANNUITIZATION. Since the annuity date at the time You purchase the Deferred Annuity is the later of age 90 of the Annuitant or 10 years after issue of your Deferred Annuity, You must make an election if You would like to extend your annuity date to the latest date permitted (subject to restrictions that may apply in your state and our current established administrative procedures). If You elect to extend your annuity date to the latest date permitted, and that date is reached, your Deferred Annuity must be annuitized (See "Pay-Out Options (or Income Options)"), or You must make a complete withdrawal of your Account Balance. Annuitization may provide higher income amounts than the payments under the LWG II, depending on the applicable annuity rates and your Account Balance on the annuity date. If You annuitize at the latest date permitted, You must elect one of the following options: (1)Annuitize the Account Balance under the Deferred Annuity's pay-out option provisions; or (2)If You took withdrawals before age 591/2, and therefore You are not eligible for lifetime withdrawals under the LWG II, elect to receive the Annual Benefit Payment paid each year until the Remaining Guaranteed Withdrawal 102 Amount is depleted. These payments will be equal in amount, except for the last payment that will be in an amount necessary to reduce the Remaining Guaranteed Withdrawal Amount to zero. (3)If you are eligible for lifetime withdrawals under the LWG II, elect to receive the Annual Benefit Payment paid each year until your death (or the later of You and your spousal Beneficiary's death for the Joint Life version). If You (or You and your spousal Beneficiary for the Joint Life version) die before the Remaining Guaranteed Withdrawal Amount is depleted, your Beneficiaries will continue to receive payments equal to the Annual Benefit Payment each year until the Remaining Guaranteed Withdrawal Amount is depleted. These payments will be equal in amount, except for the last payment that will be in an amount necessary to reduce the Remaining Guaranteed Withdrawal Amount to zero. If You do not select an a pay-out option or elect to receive payments under the LWG II, we will annuitize your Deferred Annuity under the Lifetime Annuity with a 10 Year Guarantee Period income payment type. However, if we do, we will adjust your income payment or the pay-out option, if necessary, so your aggregate income payments will not be less than what You would have received under the LWG II. DESCRIPTION OF LWG I In states where the LWG II is not yet approved, we offer (in states where approved) the LWG I. The LWG I is identical to LWG II, with except as described below. TOTAL GUARANTEED WITHDRAWAL AMOUNT. The maximum Total Guaranteed Withdrawal Amount under the LWG I is $5,000,000. If You elect the LWG I and take an Excess Withdrawal, we will reduce the Total Guaranteed Withdrawal Amount by an amount equal to the difference between the Total Guaranteed Withdrawal Amount after the withdrawal and the Account Balance after the withdrawal (if lower). On the other hand, if You elect the LWG II and take an Excess Withdrawal, we will reduce the Total Guaranteed Withdrawal Amount in the same proportion that the withdrawal reduces the Account Balance. REMAINING GUARANTEED WITHDRAWAL AMOUNT. The maximum Remaining Total Guaranteed Withdrawal Amount under the LWG I is $5,000,000. If You elect the LWG I and take a withdrawal, we will reduce the Remaining Guaranteed Withdrawal Amount by the amount of each withdrawal regardless of whether it is an Excess or Non-Excess withdrawal. However, if the withdrawal is an Excess Withdrawal, then we will additionally reduce the Remaining Guaranteed Withdrawal Amount to equal the difference between the Remaining Guaranteed Withdrawal Amount after the withdrawal and the Account Balance after the withdrawal (if lower). On the other hand, if You elect the LWG II and take a withdrawal, we will reduce the Remaining Guaranteed Withdrawal Amount by the amount of each withdrawal for withdrawals that are Non-Excess Withdrawals and for Excess Withdrawals, we will reduce the Remaining Guaranteed Withdrawal Amount in the same proportion that the withdrawal reduces the Account Balance. COMPOUNDING INCOME AMOUNT. If You elect the LWG I on each Contract Anniversary until the earlier of: (a) the date of the first withdrawal from the Contract or (b) the tenth Contract Anniversary, we increase the Total Guaranteed Withdrawal Amount and the Remaining Guaranteed Withdrawal Amount by an amount equal to 5% multiplied by the Total Guaranteed Withdrawal Amount and Remaining Guaranteed Withdrawal Amount before such increase. We take the Total Guaranteed Withdrawal Amount and the remaining Guaranteed Withdrawal Amount as of the last day of the Contract Year to determine the amount subject to the increase. On the other hand, if You elect the LWG II, on each Contract Anniversary until the earlier of: (a) the date of the second withdrawal from the Contract or (b) the tenth Contract Anniversary, we increase the Total Guaranteed Withdrawal Amount and the Remaining Guaranteed Withdrawal Amount by an amount equal to 7.25% multiplied by the Total Guaranteed Withdrawal Amount and Remaining Guaranteed Withdrawal Amount before such increase. We take the Total Guaranteed Withdrawal Amount and the remaining Guaranteed Withdrawal Amount as of the last day of the Contract Year to determine the amount subject to the increase. 103 AUTOMATIC ANNUAL STEP-UP. If an Automatic Annual Step-Up occurs under the LWG I, we may increase the LWG I charge to the charge applicable to current Contract purchases of the same optional benefit at the time of the step-up, but to no more than a maximum of 0.95% (Single Life version) or 1.40% (Joint Life version) of the Total Guaranteed Withdrawal Amount. If your Total Guaranteed Withdrawal Amount is increased due to an Automatic Annual Step-Up on a Contract Anniversary occurring on July 1, 2012 or later, We currently will increase the optional benefit charge for the Single Life version to 0.80% of the Total Guaranteed Withdrawal Amount, and We will increase the optional benefit charge for the Joint Life version to 1.05% of the Total Guaranteed Withdrawal Amount, applicable after the Contract Anniversary on which the Automatic Annual Step-Up occurs. Automatic Annual Step-Ups may occur on each Contract Anniversary prior to the owner's 86th birthday. ANNUAL BENEFIT PAYMENT. Under the LWG I, the Annual Benefit Payment is set equal to the Total Guaranteed Withdrawal Amount multiplied by the 5% withdrawal rate (there is no 6% withdrawal rate for taking later withdrawals). ISSUE AGES. For Contracts issued in New York State, the following issue age requirements apply: (1) the Contract Owner or oldest joint Contract Owner (or Annuitant if the owner is a non-natural person) is at least 60 years old for the Single Life Version and (2) the Joint Life Version must be owned by joint Contract Owners who are spouses and both joint Contract Owners must be at least 63 years old. (Because of the requirement that the Contract be owned by joint Contract Owners, the Joint Life Version is only available for Non-Qualified Contracts). TERMINATION. Termination provision (8) under "Termination of the LWG II." does not apply to the LWG I optional benefit. INVESTMENT ALLOCATION RESTRICTIONS. If You elect the LWG I, You are limited to allocating your purchase payments and Account Balance among the Fixed Account and the following Investment Divisions: (a)MetLife Conservative Allocation Investment Division, (b)MetLife Moderate to Conservative Allocation Investment Division, (c)MetLife Moderate Allocation Investment Division, (d)MetLife Moderate to Aggressive Allocation Investment Division, (e)BlackRock Money Market Investment Division (Available with C Class Deferred Annuities issued after April 30, 2003, and in New York State and Washington State only.), (f)the American Funds(R) Moderate Allocation Investment Division, (g)the American Funds(R) Balanced Allocation Investment Division, (h)the American Funds(R) Growth Allocation Investment Division, (i)the MetLife Growth Strategy Investment Division, (j)the SSgA Growth ETF Investment Division, (k)the SSgA Growth and Income ETF Investment Division, (l)AllianceBernstein Global Dynamic Allocation Investment Division, (m)AQR Global Risk Balanced Investment Division, (n)BlackRock Global Tactical Strategies Investment Division, (o)Invesco Balanced-Risk Allocation Investment Division, (p)JPMorgan Global Active Allocation Investment Division, 104 (q)MetLife Balanced Plus Investment Division, (r)Schroders Global Multi-Asset Investment Division, (s)Pyramis(R) Government Income Investment Division, (t)Barclays Aggregate Bond Index Investment Division, (u)Pyramis(R) Managed Risk Investment Division, and (v)MetLife Multi-Index Targeted Risk Investment Division. The Fixed Account is not available in New York State and Washington State with this optional benefit. You may elect to participate in the Enhanced Dollar Cost Averaging Program provided that your destination Investment Divisions are one or more of the above listed investment choices. RESTRICTIONS ON SUBSEQUENT PURCHASE PAYMENTS. Subsequent purchase payment restrictions under the LWG I are restricted as described in "Your Investment Choices -- Restrictions on Subsequent Purchase Payments -- GMIB I, GMIB Plus I, GMIB Plus II, GWB I, Enhanced GWB, LWG I, LWG II, GMAB and EDB I." CHARGES. The LWG I is available for an additional charge of 0.50% for the Single Life version and 0.70% for the Joint Life version of the Total Guaranteed Withdrawal Amount each Contract Anniversary, prior to taking into account any Automatic Annual Step-Up. As described above, this charge may change as a result of an Automatic Annual Step-Up. This charge is made by withdrawing amounts on a pro-rata basis from your Fixed Account balance, Enhanced Dollar Cost Averaging Program balance and Separate Account balance. We take amounts from the Separate Account by canceling accumulation units from your Separate Account balance. (The Fixed Account is not available in the C Class Deferred Annuity purchased after April 30, 2003 or when available, a Deferred Annuity issued in New York State and Washington State with this optional benefit.) EXAMPLES OF LWG I AND II The purpose of these examples is to illustrate the operation of the Guaranteed Withdrawal Benefit. The investment results shown are hypothetical and are not representative of past or future performance. Actual investment results may be more or less than those shown and will depend upon a number of factors, including investment allocations and the investment experience of the Investment Divisions chosen. The examples do not reflect the deduction of fees and charges, Withdrawal Charges and applicable income taxes and penalties. The LWGs do not guarantee an Account Balance or minimum investment return for any Investment Division. The Remaining Guaranteed Withdrawal Amount cannot be taken as a lump sum. A. LWG 1. When Withdrawals Do Not Exceed the Annual Benefit Payment Assume that a Contract had an initial purchase payment of $100,000. The initial Account Balance would be $100,000, the Total Guaranteed Withdrawal Amount would be $100,000, the initial Remaining Guaranteed Withdrawal Amount would be $100,000 and the initial Annual Benefit Payment would be $5,000 ($100,000 X 5%). Assume that $5,000 is withdrawn each year, beginning before the Contract Owner attains age 59 1/2. The Remaining Guaranteed Withdrawal Amount is reduced by $5,000 each year as withdrawals are taken (the Guaranteed Total Withdrawal Amount is not reduced by these withdrawals). The Annual Benefit Payment of $5,000 is guaranteed to be received until the Remaining Guaranteed Withdrawal Amount is depleted, even if the Account Balance is reduced to zero. If the first withdrawal is taken after age 59 1/2, then the Annual Benefit Payment of $5,000 is guaranteed to be received for the Contract Owner's lifetime, even if the Remaining Guaranteed Withdrawal Amount and the Account Balance are 105 reduced to zero. (Under the LWG II, if the Contract Owner makes the first withdrawal at on after age 76, the Withdrawal Rate is 6% instead of 5% and the Annual Benefit Payment is $6,000.) [CHART] Annual Benefit Cumulative Account Payment Withdrawals Balance -------------- ----------- ----------- 1 $5,000 $ 5,000 $100,000.00 2 5,000 10,000 90,250.00 3 5,000 15,000 80,987.50 4 5,000 20,000 72,188.13 5 5,000 25,000 63,828.72 6 5,000 30,000 55,887.28 7 5,000 35,000 48,342.92 8 5,000 40,000 41,175.77 9 5,000 45,000 34,366.98 10 5,000 50,000 27,898.63 11 5,000 55,000 21,753.70 12 5,000 60,000 15,916.02 13 5,000 65,000 10,370.22 14 5,000 70,000 5,101.71 15 5,000 75,000 96.62 16 5,000 80,000 0 17 5,000 85,000 0 18 5,000 90,000 -13,466.53 19 5,000 95,000 0 20 5,000 100,000 0 2. When Withdrawals Do Exceed the Annual Benefit Payment a. LWG II -- Proportionate Reduction Assume that a Contract had an initial purchase payment of $100,000. The initial Account Balance would be $100,000, the Total Guaranteed Withdrawal Amount would be $100,000, the initial Remaining Guaranteed Withdrawal Amount would be $100,000 and the initial Annual Benefit Payment would be $5,000 ($100,000 X 5%). (If the Contract Owner makes the first withdrawal on or after the date he or she reaches age 76, the Withdrawal rate is 6% instead of 5% and the initial Annual Benefit Payment would be $6,000. For purposes of the example, assume the Contract Owner makes the first withdrawal before he or she reaches age 76 and the Withdrawal Rate is therefore 5%.) Assume that the Remaining Guaranteed Withdrawal Amount is reduced to $95,000 due to a withdrawal of $5,000 in the first year. Assume the Account Balance was further reduced to $80,000 at year two due to poor market performance. If You withdrew $10,000 at this time, your Account Balance would be reduced to $80,000 - $10,000 = $70,000. Since the withdrawal of $10,000 exceeded the Annual Benefit Payment of $5,000, there would be a proportional reduction to the Remaining Guaranteed Withdrawal Amount and the Total Guaranteed Withdrawal Amount. The proportional reduction is equal to the entire withdrawal ($10,000) divided by the Account Balance before the withdrawal ($80,000), or 12.5%. The Remaining Guaranteed Withdrawal Amount after the withdrawal would be $83,125 ($95,000 reduced by 12.5%). This new Remaining Guaranteed Withdrawal Amount of $83,125 would now be the amount guaranteed to be available to be withdrawn over time. The Total Guaranteed Withdrawal Amount would be reduced to $87,500 ($100,000 reduced by 12.5%). The Annual Benefit Payment would be set equal to 5% X $87,500 = $4,375. (Assume instead that You withdrew $10,000 during year two in two separate withdrawals of $4,000 and $6,000, Since the first withdrawal of $4,000 did not exceed the Annual Benefit Payment of $5,000, there would be no proportional reduction to the Remaining Guaranteed Withdrawal Amount and the Total Guaranteed Withdrawal Amount at the time of that withdrawal. The second withdrawal ($6,000), however, results in cumulative withdrawals of $10,000 during year two and 106 causes a proportional reduction to the Remaining Guaranteed Withdrawal Amount and the Total Guaranteed Withdrawal Amount. The proportional reduction would be equal to the entire amount of the second withdrawal ($6,000) divided by the account value before that withdrawal.) b. LWG I -- Reduction to Account Balance Assume that a Contract with the LWG I had an initial purchase payment of $100,000. The initial Account Balance would be $100,000, the Total Guaranteed Withdrawal Amount would be $100,000, the initial Remaining Guaranteed Withdrawal Amount would be $100,000 and the initial Annual Benefit Payment would be $5,000 ($100,000 X 5%). Assume that the Remaining Guaranteed Withdrawal Amount is reduced to $95,000 due to a withdrawal of $5,000 in the first year. Assume the Account Balance was further reduced to $75,000 at year two due to poor market performance. If You withdrew $10,000 at this time, your Account Balance would be reduced to $75,000 - $10,000 = $65,000. Your Remaining Guaranteed Withdrawal Amount would be reduced to $95,000 - $10,000 = $85,000. Since the withdrawal of $ 10,000 exceeded the Annual Benefit Payment of $5,000 and the resulting Remaining Guaranteed Withdrawal Amount would be greater than the resulting Account Balance, there would be an additional reduction to the Remaining Guaranteed Withdrawal Amount. The Remaining Guaranteed Withdrawal Amount after the withdrawal would be set equal to the Account Balance after the withdrawal ($65,000). This new Remaining Guaranteed Withdrawal Amount of $65,000 would now be the amount guaranteed to be available to be withdrawn over time. The Total Guaranteed Withdrawal Amount would also be reduced to $65,000. The Annual Benefit Payment would be set equal to 5% X $65,000 = $3,250. B. LWG -- Compounding Income Amount (for all states except New York) Assume that a Contract with LWG II had an initial purchase payment of $100,000. The initial Remaining Guaranteed Withdrawal Amount would be $100,000, the Total Guaranteed Withdrawal Amount would be $100,000, and the Annual Benefit Payment would be $5,000 ($100,000 X 5%). (If the Contract Owner makes the first withdrawal on or after the date he or she reaches age 76, the Withdrawal rate is 6% instead of 5% and the initial Annual Benefit Payment would be $6,000. For purposes of the example, assume the Contract Owner makes the first withdrawal before he or she reaches age 76 and the Withdrawal Rate is therefore 5%.) The Total Guaranteed Withdrawal Amount will increase by 7.25% of the Total Guaranteed Withdrawal Amount on each Contract Anniversary until the earlier of the second withdrawal or the 10th Contract Anniversary. The Annual Benefit Payment will be recalculated as 5% of the new Total Guaranteed Withdrawal Amount. If the second withdrawal is taken in the first Contract Year then there would be no increase: the Total Guaranteed Withdrawal Amount would remain at $100,000 and the Annual Benefit Payment will remain at $5,000 ($100,000 X 5%). If the second withdrawal is taken in the second Contract Year then the Total Guaranteed Withdrawal Amount would increase to $107,250 ($100,000 X 107.25%), and the Annual Benefit Payment would increase to $5,362 ($107,250 X 5%). If the second withdrawal is taken in the third Contract Year then the Total Guaranteed Withdrawal Amount would increase to $115,025 ($105,000 X 107.25%), and the Annual Benefit Payment would increase to $5,751 ($115,025 X 5%). If the second withdrawal is taken after the 10th Contract Year then the Total Guaranteed Withdrawal Amount would increase to $201,360 (the initial $100,000, increased by 7.25% per year, compounded annually for 10 years), and the Annual Benefit Payment would increase to $10,068 ($201,360 X 5%). (In contrast to the LWG II, the LWG I has a 5% Compounding Income Amount and the Total Guaranteed Withdrawal Amount is increased by 5% on each Contract Anniversary until the earlier of the date of the first withdrawal or the tenth Contract Anniversary.) 107 Delay taking withdrawals and receive higher guaranteed payments [CHART] Year of Second Withdrawal Annual Benefit Payment ------------------------- ---------------------- 1 $ 5,000 2 5,363 3 5,751 4 6,168 5 6,615 6 7,095 7 7,609 8 8,161 9 8,753 10 9,387 11 10,068 C. LWG -- Automatic Annual Step-Ups and 7.25% Compounding Amount (No Withdrawals) Assume that a Contract with LWG II had an initial purchase payment of $100,000. Assume that no withdrawals are taken. At the first Contract Anniversary, provided that no withdrawals are taken, the Total Guaranteed Withdrawal Amount is increased to $107,250 ($100,000 increased by 7.25%, compounded annually). Assume the Account Balance has increased to $110,000 at the first Contract Anniversary due to good market performance. The Automatic Annual Step-Up will increase the Total Guaranteed Withdrawal Amount from $107,250 to $110,000 and reset the Annual Benefit Payment to $5,500 ($110,000 X 5%). At the second Contract Anniversary, provided that no withdrawals are taken, the Total Guaranteed Withdrawal Amount is increased to $117,975 ($110,000 increased by 7.25%, compounded annually). Assume the Account Balance has increased to $120,000 at the second Contract Anniversary due to good market performance. The Automatic Annual Step-Up will increase the Total Guaranteed Withdrawal Amount from $117,975 to $120,000 and reset the Annual Benefit Payment to $6,000 ($120,000 X 5%). Provided that no withdrawals are taken, each year the Total Guaranteed Withdrawal Amount would increase by 7.25%, compounded annually, from the second Contract Anniversary through the ninth Contract Anniversary, and at that point would be equal to $195,867. Assume that during these Contract years the Account Balance does not exceed the Total Guaranteed Withdrawal Amount due to poor market performance. Assume the Account Balance at the ninth Contract Anniversary has increased to $200,000 due to good market performance. The Automatic Annual Step-Up will increase the Total Guaranteed Withdrawal Amount from $195,867 to $200,000 and reset the Annual Benefit Payment to $10,000 ($200,000 X 5%). At the 10th Contract Anniversary, provided that no withdrawals are taken, the Total Guaranteed Withdrawal Amount is increased to $214,500 ($200,000 increased by 7.25%, compounded annually). Assume the Account Balance is less than $214,500. There is no Automatic Annual Step-Up since the Account Balance is below the Total Guaranteed Withdrawal 108 Amount; however, due to the 7.25% increase in the Total Guaranteed Withdrawal Amount, the Annual Benefit Payment is increased to $10,725 ($214,500 X 5%). [CHART] D. FOR CONTRACTS ISSUED IN NEW YORK STATE: LWG -- Compounding Income Amount Assume that a Contract owner, age 63 at issue, elected the Single Life version of the LWG II and made an initial purchase payment of $100,000. The initial Remaining Guaranteed Withdrawal Amount would be $100,000, the Total Guaranteed Withdrawal Amount would be $100,000, and the Annual Benefit Payment would be $5,000 ($100,000 X 5%). (If the Contract owner makes the first withdrawal on or after the Contract Anniversary following the date he or she reaches age 76, the Withdrawal rate is 6% instead of 5% and the initial Annual Benefit Payment would be $6,000. For purposes of the example, assume the Contract owner makes the first withdrawal before the Contract Anniversary following the date he or she reaches age 76 and the Withdrawal Rate is therefore 5%.) The Total Guaranteed Withdrawal Amount will increase by 6% of the previous year's Total Guaranteed Withdrawal Amount in each Contract Anniversary until the earlier of the first withdrawal or the 5th Contract Anniversary. The Annual Benefit Payment will be recalculated as 5% of the new Total Guaranteed Withdrawal Amount. If the first withdrawal is taken in the first Contract Year then there would be no increase: the Total Guaranteed Withdrawal Amount would remain at $100,000 and the Annual Benefit Payment will remain at $5,000 ($100,000 X 5%). If the first withdrawal is taken in the second Contract Year then the Total Guaranteed Withdrawal Amount would increase to $106,000 ($100,000 X 106%), and the Annual Benefit Payment would increase to $5,300 ($106,000 X 5%). If the first withdrawal is taken in the third Contract Year then the Total Guaranteed Withdrawal Amount would increase to $112,360 ($106,000 X 106%), and the Annual Benefit Payment would increase to $5,618 ($112,360 X 5%). If the first withdrawal is taken after the 5th Contract Year then the Total Guaranteed Withdrawal Amount would increase to $133,822 (the initial $100,000, increased by 6% per year, compounded annually for 5 years), and the Annual Benefit Payment would increase to $6,691 ($133,822 X 5%). 109 Delay taking withdrawals and receive higher guaranteed payments [GRAPHIC APPEARS HERE] Annual Benefit Payment 1 2 3 4 5 6 ------ ------ ------ ------ ------ ------ $5,000 $5,300 $5,618 $5,955 $6,312 $6,691 E. FOR CONTRACTS ISSUED IN NEW YORK STATE: LWG -- Automatic Annual Step-Ups and 6% Compounding Income Amount (No Withdrawals) Assume that a Contract owner, age 63 at issue, elected the Single Life version of LWG II and made an initial purchase payment of $100,000. Assume that no withdrawals are taken. At the first Contract Anniversary, provided that no withdrawals are taken, the Total Guaranteed Withdrawal Amount is increased to $106,000 ($100,000 increased by 6%, compounded annually). Assume the Account Value has increased to $110,000 at the first Contract Anniversary due to good market performance. The Automatic Annual Step-Up will increase the Total Guaranteed Withdrawal Amount from $106,000 to $110,000 and reset the Annual Benefit Payment to $5,500 ($110,000 X 5%). At the second Contract Anniversary, provided that no withdrawals are taken, the Total Guaranteed Withdrawal Amount is increased to $116,600 ($110,000 increased by 6%, compounded annually). Assume the Account Value has increased to $120,000 at the second Contract Anniversary due to good market performance. The Automatic Annual Step-Up will increase the Total Guaranteed Withdrawal Amount from $116,600 to $120,000 and reset the Annual Benefit Payment to $6,000 ($120,000 X 5%). Provided that no withdrawals are taken, each year the Total Guaranteed Withdrawal Amount would increase by 6%, compounded annually, from the second Contract Anniversary through the fourth Contract Anniversary, and at that point would be equal to $134,832. Assume that during these Contract years the Account Value does not exceed the Total Guaranteed Withdrawal Amount due to poor market performance. Assume the Account Value at the fourth Contract Anniversary has increased to $150,000 due to good market performance. The Automatic Annual Step-Up will increase the Total Guaranteed Withdrawal Amount from $134,832 to $150,000 and reset the Annual Benefit Payment to $7,500 ($150,000 X 5%). At the 5th Contract Anniversary, provided that no withdrawals are taken, the Total Guaranteed Withdrawal Amount is increased to $159,000 ($150,000 increased by 6%, compounded annually). Assume the Account Value is less than $159,000. There is no Automatic Annual Step-Up since the Account Value is below the Total Guaranteed Withdrawal Amount; 110 however, due to the 6% increase in the Total Guaranteed Withdrawal Amount, the Annual Benefit Payment is increased to $7,950 ($159,000 X 5%). DESCRIPTION OF ENHANCED GWB BENEFIT BASE. The Guaranteed Withdrawal Amount is the maximum TOTAL amount of money that You are guaranteed to receive over time under the Enhanced GWB. At issue, the Guaranteed Withdrawal Amount and the BENEFIT BASE are both equal to your initial purchase payment plus the GWB Bonus. At any subsequent point in time, the Benefit Base is the remaining amount of money that You are guaranteed to receive through withdrawals under the Enhanced GWB. Your Benefit Base will change with each purchase payment, or as the result of an Optional Reset. Also, each withdrawal will reduce your Benefit Base. If negative investment performance reduces your Account Balance below the Benefit Base, You are still guaranteed to be able to withdraw the entire amount of your Benefit Base. The Benefit Base is equal to: . Your initial purchase payment, increased by the 5% GWB Bonus; . Increased by each subsequent purchase payment, and by the 5% GWB Bonus; . Reduced dollar for dollar by withdrawals, which are withdrawals (including any applicable Withdrawal Charge) and amounts applied to an income option (currently, You may not apply amounts less than your entire Account Balance to an annuity option); and . If any withdrawal from your Contract is not payable to the Contract Owner or the Contract Owner's bank account (or to the Annuitant or the Annuitant's bank account, if the owner is a non-natural person), or results in cumulative withdrawals for the current Contract Year exceeding the Annual Benefit Payment, and the resulting Benefit Base exceeds the Account Balance, an additional reduction in the Benefit Base will be made. This additional reduction will be equal to the difference between the Benefit Base and your Account Balance, after the decrease for withdrawals. The Benefit Base will also be reset as a result of an Optional Reset as described below. ANNUAL BENEFIT PAYMENT. The Annual Benefit Payment is the maximum amount of your Benefit Base You may withdraw each Contract Year without adversely impacting the amount guaranteed to be available to You through withdrawals over time. The initial Annual Benefit Payment is equal to the initial Benefit Base multiplied by the GWB withdrawal rate (7%). The Annual Benefit Payment is reset after each subsequent purchase payment to the greater of: (1) the Annual Benefit Payment before the subsequent purchase payment, and (2) the GWB withdrawal rate multiplied by the Benefit Base after the subsequent purchase payment. The Annual Benefit Payment will also be reset as a result of an Optional Reset as described below. You can continue to receive annual withdrawals in an amount equal to or less than your Annual Benefit Payment until your Benefit Base is depleted. MANAGING YOUR WITHDRAWALS. It is important that You carefully manage your annual withdrawals. To retain the guarantees of this benefit, your annual withdrawals cannot exceed the Annual Benefit Payment each Contract Year. We refer to withdrawals during a Contract Year that exceed the Annual Benefit Payment as Excess Withdrawals. We do not include Withdrawal Charges for the purpose of calculating whether You have taken an Excess Withdrawal. YOU SHOULD NOT TAKE EXCESS WITHDRAWALS. IF YOU DO TAKE AN EXCESS WITHDRAWAL, OR IF A WITHDRAWAL IS NOT PAYABLE TO THE CONTRACT OWNER OR THE CONTRACT OWNER'S BANK ACCOUNT (OR TO THE ANNUITANT OR THE ANNUITANT'S BANK ACCOUNT, IF THE OWNER IS A NON-NATURAL PERSON), THE ANNUAL BENEFIT PAYMENT WILL BE RECALCULATED AND MAY BE REDUCED. THIS REDUCTION MAY BE SIGNIFICANT. The new Annual Benefit Payment will equal the lower of (1) the Annual Benefit Payment before the withdrawal and (2) your Account Balance after the reduction for the withdrawal (including any applicable Withdrawal Charge) multiplied by the GWB withdrawal rate. Because the GWB charge is assessed as a percentage of the Guaranteed Withdrawal Amount, any decrease of the Annual Benefit Payment caused by an Excess Withdrawal results in an increase in the cost of the benefit relative to the benefits You will receive. 111 You can always take annual withdrawals less than the Annual Benefit Payment. However, if You choose to receive only a part of, or none of, your Annual Benefit Payment in any given Contract Year, your Annual Benefit Payment is not cumulative and your Benefit Base and Annual Benefit Payment will not increase. For example, if your Annual Benefit Payment is 7% of your Benefit Base and You withdraw only 4% one year, You cannot then withdraw 10% the next year without exceeding your Annual Benefit Payment. ALL WITHDRAWALS ARE SUBJECT TO APPLICABLE EARLY WITHDRAWAL CHARGES AND TAXES. REQUIRED MINIMUM DISTRIBUTIONS. For IRAs and other Contracts subject to Section 401(a)(9) of the Internal Revenue Code, You may be required to take withdrawals to fulfill minimum distribution requirements generally beginning at age 70 1/2. These required distributions may be larger than your Annual Benefit Payment. If You enroll in the automated required minimum distribution service, AFTER THE FIRST CONTRACT YEAR, we will increase your Annual Benefit Payment to equal your most recently calculated required minimum distribution amount, if such amount is greater than your Annual Benefit Payment. YOU MUST BE ENROLLED IN THE AUTOMATED REQUIRED MINIMUM DISTRIBUTION SERVICE TO QUALIFY FOR THIS INCREASE IN THE ANNUAL BENEFIT PAYMENT. THE FREQUENCY OF YOUR WITHDRAWALS MUST BE ANNUAL. THE AUTOMATED REQUIRED MINIMUM DISTRIBUTION SERVICE IS BASED ON INFORMATION RELATING TO THIS CONTRACT ONLY. To enroll in the automated required minimum distribution service, please contact your Administrative Office. GUARANTEED WITHDRAWAL AMOUNT. We assess the GWB charge as a percentage of the Guaranteed Withdrawal Amount, which is initially set at an amount equal to your initial purchase payment plus the GWB Bonus. The Guaranteed Withdrawal Amount may increase with subsequent purchase payments. In this case, the Guaranteed Withdrawal Amount will be reset equal to the greater of: (1) the Guaranteed Withdrawal Amount before the purchase payment and (2) the Benefit Base after the purchase payment. Withdrawals do not decrease the Guaranteed Withdrawal Amount. The Guaranteed Withdrawal Amount will also be reset as a result of an Optional Reset as described below. If your Guaranteed Withdrawal Amount increases, the amount of the Enhanced GWB charge we deduct will increase because the charge is a percentage of your Guaranteed Withdrawal Amount. OPTIONAL RESET. At any Contract Anniversary prior to the 86th birthday of the owner (or oldest joint owner or Annuitant if the Contract is owned by a non-natural person) You may elect an Optional Reset. The purpose of an Optional Reset is to "lock-in" a higher Benefit Base, which may increase the amount of the Annual Benefit Payment and lengthen the period of time over which these withdrawals can be taken. We reserve the right to prohibit an Optional Reset election if we no longer offer this benefit. An Optional Reset will: .. Reset your Guaranteed Withdrawal Amount and Benefit Base equal to the Account Balance on the date of the reset; .. Reset your Annual Benefit Payment equal to the Account Balance on the date of the reset multiplied by the GWB withdrawal rate (7%); and .. Reset the Enhanced GWB charge equal to the then current level we charge for the same benefit at the time of the reset, up to the maximum charge of 1.00%. You may elect either a one-time Optional Reset or Automatic Annual Resets. A one-time Optional Reset is permitted only if: (1) your Account Value is larger than the Benefit Base immediately before the reset, and (2) the reset occurs prior to the 86th birthday of the owner (or oldest joint owner or Annuitant if the Contract is owned by a non-natural person). We must receive your request for a one-time Optional Reset in accordance with our administrative procedures (currently we require You to submit your request in writing) before the applicable Contract Anniversary. The Optional Reset will take effect on the next Contract Anniversary following our receipt of your written request. 112 If You elect Automatic Annual Resets, a reset will occur automatically on any Contract Anniversary if: (1) your Account Balance is larger than the Guaranteed Withdrawal Amount immediately before the reset, and (2) the Contract Anniversary is prior to the 86th birthday of the owner (or oldest joint owner or Annuitant if the Contract is owned by a non-natural person). The same conditions will apply to each Automatic Annual Reset. In the event that the charge applicable to Contract purchases at the time of the Automatic Annual Reset is higher than your current Enhanced GWB rider charge, we will notify You in writing a minimum of 30 days in advance of the applicable Contract Anniversary and inform You that You may choose to decline the Automatic Annual Reset. You may discontinue Automatic Annual Resets by notifying us in writing (or by any other method acceptable to us), prior to the Contract Anniversary on which a reset may otherwise occur. If You discontinue the Automatic Annual Resets, no reset will occur automatically on any subsequent Contract Anniversary unless You make a new election under the terms described above. (If You discontinue Automatic Annual Resets, the Enhanced GWB rider (and the rider charge) will continue, and You may choose to elect a one-time Optional Reset or reinstate Automatic Annual Resets.) It is possible to elect a one-time Optional Reset when the Account Balance is larger than the Benefit Base but smaller than the Guaranteed Withdrawal Amount. (By contrast, an Automatic Annual Reset will never occur if the Account Balance is smaller than the Guaranteed Withdrawal Amount.) If You elect a one-time Optional Reset when the Account Balance before the reset was less than the Guaranteed Withdrawal Amount, You would lock in a higher Benefit Base which would increase the total amount You are guaranteed to receive through withdrawals under the Enhanced GWB rider, and extend the period of time over which You could make those withdrawals. However, You would also decrease the Annual Benefit Payment and the Guaranteed Withdrawal Amount. You should consider electing a one-time Optional Reset when your Account Balance is smaller than the Guaranteed Withdrawal Amount only if You are willing to accept the decrease in the Annual Benefit Payment and Guaranteed Withdrawal Amount in return for locking in the higher Benefit Base. Otherwise, You should only elect a one-time Optional Reset when your Account Balance is larger than the Guaranteed Withdrawal Amount. Any benefit of a one-time Optional Reset or Automatic Annual Reset also depends on the current Enhanced GWB rider charge. If the current charge in effect at the time of the reset is higher than the charge You are paying, it may not be beneficial to elect a reset because we will begin applying the higher current charge at the time of the reset (even if a one-time Optional Reset results in a decrease of your Annual Benefit Payment and/or your Guaranteed Withdrawal Amount). For Contracts issued prior to JULY 16, 2007, You may elect an Optional Reset beginning with the third Contract Anniversary (as long as it is prior to the owner's 86th birthday) and at any subsequent Contract Anniversary prior to the owner's 86th birthday as long as it has been at least three years since the last Optional Reset. Automatic Annual Resets are not available. WITHDRAWAL CHARGE. We will apply a Withdrawal Charge to withdrawals from purchase payments of up to 7% of purchase payments taken in the first seven years following receipt of the applicable purchase payment. TAXES. Withdrawals of taxable amounts will be subject to ordinary income tax and, if made prior to age 59 1/2, a 10% Federal tax penalty may apply. CANCELLATION OF THE ENHANCED GWB. You may elect to cancel the Enhanced GWB in accordance with our administrative procedures (currently we require You to submit your cancellation request in writing to our Administrative Office) during the 90-day period following your fifth Contract Anniversary. Such cancellation will take effect upon our receipt of your request. If You cancel the Enhanced GWB, You may not re-elect it. Upon cancellation, the Enhanced GWB charge will no longer apply. The Contract, however, will continue. 113 TERMINATION OF THE ENHANCED GWB. The Enhanced GWB will terminate upon the earliest of: (1)the date You make a full withdrawal of your Account Balance (a pro rata portion of the charge will apply); (You are still eligible to receive annual payments until the Benefit Base declines to zero, provided the withdrawal did not exceed the Annual Benefit Payment and the provisions and conditions of the optional benefit have been met.) (2)the date You apply all of your Account Balance to a pay-out option (a pro rata portion of the charge will apply); (3)the date there are insufficient amounts to deduct the Enhanced GWB charge from your Account Balance (whatever Account Balance is available will be applied to pay the annual Enhanced GWB benefit charge); (You are still eligible to receive annual payments until the Benefit Base declines to zero, provided your withdrawals did not exceed the Annual Benefit Payment and the provisions and conditions of the rider have been met.) (4)the date we receive due proof of the owner's death and a Beneficiary claim form, except where the Beneficiary or joint owner is the spouse of the owner and the spouse elects to continue the Contract and the spouse is less than 85 years old, or the Annuitant dies if the owner is a non-natural person; note: (a) if the spouse elects to continue the Contract (so long as the spouse is less than 85 years old and the Enhanced GWB is in effect at the time of continuation), all terms and conditions of the Enhanced GWB will apply to the surviving spouse; and (b) we will not terminate the benefit until we receive both due proof of the owner's death and a Beneficiary claim form (from certain Beneficiaries, such as a trust, we may require additional information, such as the trust document), which means we will continue to deduct the Enhanced GWB charge until we receive this information; (5)the effective date of cancellation of the rider; (6)a change of the Contract Owner or joint Contract Owner (or the Annuitant if the Contract Owner is a non-natural person) for any reason (currently we follow our administrative procedures regarding termination for a change of Contract Owner or Joint Contract Owner or Annuitant, if a non-natural person owns the Contract) (a pro rata portion of the charge will apply); or (7)the termination of the Deferred Annuity (a pro rata portion of the charge will apply). ADDITIONAL INFORMATION. If You take a full withdrawal of your Account Balance and the withdrawal does not exceed the Annual Benefit Payment, or your Account Balance is reduced to zero because You do not have a sufficient Account Balance to pay the Enhanced GWB charge and your Benefit Base after the withdrawal is greater than zero, we will commence making payments to the owner or joint owner (or to the Annuitant if the owner is a non-natural person) on a monthly basis (or any mutually agreed upon frequency, but not less frequently than annually) until the Benefit Base is exhausted. Your withdrawal rights then come to an end. Currently, there is no minimum dollar amount for the payments; however, we reserve the right to accelerate any payment, in a lump sum, that is less than $500 (see below). The total annual payments cannot exceed the Annual Benefit Payment, except to the extent required under the Internal Revenue Code. If You or the joint owner (or the Annuitant if the owner is a non-natural person) should die while these payments are being made, your Beneficiary will receive these payments. No other death benefit will be paid. If the owner or joint owner (or the Annuitant if the owner is a non-natural person) should die while the Enhanced GWB is in effect, your Beneficiary may elect to receive the Benefit Base as a death benefit in lieu of any other contractual death benefits. Otherwise, the provisions of those death benefits will determine the amount of the death benefit and no benefit will be payable under the Enhanced GWB. If the Beneficiary elects the Benefit Base as a death benefit, we will pay the remaining Benefit Base on a monthly basis (or any mutually agreed-upon frequency, but no less frequently than annually) until the Benefit Base is exhausted. Except as may be required by the Internal Revenue Code, an annual payment will not exceed the Annual Benefit Payment. If your Beneficiary dies while such payments are made, we will continue making the payments to the Beneficiary's estate unless we have agreed to another payee in writing. If the Contract is a Non-Qualified Contract, any death benefit must be paid out 114 over a time period and in a manner that satisfies Section 72(s) of the Internal Revenue Code. If the owner (or the Annuitant, if the owner is not a natural person) dies prior to the "annuity starting date" (as defined under the Internal Revenue Code and regulations thereunder), the period over which the Benefit Base is paid as a death benefit cannot exceed the remaining life expectancy of the payee under the appropriate IRS tables. For purposes of the preceding sentence, if the payee is a non-natural person, the Benefit Base must be paid out within 5 years from the date of death. Payments under this death benefit must begin within 12 months following the date of death. We reserve the right to accelerate any payment, in a lump sum, that is less than $500 or to comply with requirements under the Internal Revenue Code (including minimum distribution requirements for IRAs and other Contracts subject to Section 401(a)(9) of the Internal Revenue Code and Non-Qualified Contracts subject to Section 72(s) of the Internal Revenue Code). If You terminate the Enhanced GWB because (1) You make a total withdrawal of your Account Balance; (2) your Account Balance is insufficient to pay the Enhanced GWB charge; or (3) the Contract Owner or joint owner (or the Annuitant, if the owner is a non-natural person) dies, except where the Beneficiary or joint owner is the spouse of the owner and the spouse elects to continue the Contract and the spouse is less than 85 years old, You may not make additional purchase payments under the Contract. RESTRICTIONS ON SUBSEQUENT PURCHASE PAYMENTS. Subsequent purchase payment restrictions under the Enhanced GWB are restricted as described in "Your Investment Choices -- Restrictions on Subsequent Purchase Payments -- GMIB I, GMIB Plus I, GMIB Plus II, GWB I, Enhanced GWB, LWG I, LWG II, GMAB and EDB I." THE ENHANCED GWB AND ANNUITIZATION. Since the annuity date at the time You purchase the Deferred Annuity is the later of age 90 of the Annuitant or 10 years after issue of your Deferred Annuity, You must make an election if You would like to extend your annuity date to the latest date permitted (subject to restrictions that may apply in your state and our current established administrative procedures). If You elect to extend your annuity date to the latest date permitted, and that date is reached, your Deferred Annuity must be annuitized (See "Pay-Out Options (or Income Options)"), or You must make a complete withdrawal of your Account Balance. If You annuitize at the latest date permitted, You must elect one of the following options: (1)Annuitize the Account Balance under the Deferred Annuity's pay-out option provisions; or (2)Elect to receive the Annual Benefit Payment under the Enhanced GWB paid each year until the Benefit Base is depleted. These payments will be equal in amount, except for the last payment that will be in an amount necessary to reduce the Benefit Base to zero. If You do not select an a pay-out option or elect to receive payments under the Enhanced GWB, we will annuitize your Deferred Annuity under the Lifetime Annuity with a 10 Year Guarantee Period income payment type. However, if we do, we will adjust your income payment or the pay-out option, if necessary, so your aggregate income payments will not be less than what You would have received under the Enhanced GWB. CHARGES. The Enhanced GWB is available for an additional charge of 0.55% of the Guaranteed Withdrawal Amount each Contract Anniversary, prior to taking into account any Optional Reset. As described above, this charge may change as a result of an Optional Reset. We will not continue to assess the charge if your Benefit Base equals zero. The charge is made by withdrawing amounts on a pro-rata basis from your Fixed Account balance, Enhanced Dollar Cost Averaging Program balance and Separate Account balance. We take amounts from the Separate Account by canceling accumulation units from your Separate Account balance. (The Fixed Account is not available in the C Class Deferred Annuity purchased after April 30, 2003 or a Deferred Annuity issued in New York State and Washington State with this optional benefit. The Enhanced Dollar Cost Averaging Program is not available in the C and Bonus Class Deferred Annuity.) 115 EXAMPLES The purpose of these examples is to illustrate the operation of the Guaranteed Withdrawal Benefit. The investment results shown are hypothetical and are not representative of past or future performance. Actual investment results may be more or less than those shown and will depend upon a number of factors, including investment allocations and the investment experience of the Investment Divisions chosen. The examples do not reflect the deduction of fees and charges, Withdrawal Charges and applicable income taxes and penalties. A. How Withdrawals Affect the Benefit Base 1. An initial purchase payment is made of $100,000. The initial Benefit Base would be $105,000. ($100,000 X 5%). Assume that the Account Balance grew to $110,000 because of market performance. If a subsequent withdrawal of $10,000 were made, the Benefit Base would be reduced to $105,000 - $10,000 = $95,000. Assume the withdrawal of $10,000 exceeded the Annual Benefit Payment. Since the Account Balance of $100,000 exceeds the Benefit Base of $95,000, no further reduction to the Benefit Base is made. 2. An initial purchase payment is made of $100,000. The initial Benefit Base would be $105,000. Assume that the Account Balance shrank to $90,000 because of market performance. If a subsequent withdrawal of $10,000 were made, the Benefit Base would be reduced to $95,000 and the Account Balance would be reduced to $80,000. Assume the withdrawal of $10,000 exceeded the Annual Benefit Payment. Since the Account Balance of $80,000 is less than the Benefit Base of $95,000, a further reduction of the $15,000 difference is made, bringing the Benefit Base to $80,000. B. How Withdrawals and Subsequent Purchase Payments Affect the Annual Benefit Payment An initial purchase payment is made of $100,000. The initial Benefit Base would be $105,000 and the initial Annual Benefit Payment would be $7,350. If $7,000 withdrawals were then made for each of the next five years, the Benefit Base would be decreased to $70,000. If a subsequent purchase payment of $10,000 were made the next day, the Benefit Base would be increased to $70,000 + $10,000 + (5% X $10,000) = $80,500. The Annual Benefit Payment would be reset to the greater of a) $7,350 (the Annual Benefit Payment before the second purchase payment) and b) $5,635 (7% multiplied by the Benefit Base after the second purchase payment). In this case, the Annual Benefit Payment would remain at $7,350. C. How Withdrawals Affect the Annual Benefit Payment 1. An initial purchase payment is made of $100,000. The initial Benefit Base would be $105,000 and the initial Annual Benefit Payment would be $7,350. If a withdrawal of $9,000 was made the next day, and negative market performance reduced the Account Balance by an additional $1,000, the Account Balance would be reduced to $100,000 - $9,000 - $1,000 = $90,000. Since the withdrawal of $9,000 exceeded the Annual Benefit Payment of $7,350, the Annual Benefit Payment would be reset to the lower of a) $7,350 (the Annual Benefit Payment before the withdrawal) and b) $6,300 (7% multiplied by the Account Balance after the withdrawal). In this case the Annual Benefit Payment would be reset to $6,300. 2. An initial purchase payment is made of $100,000. The initial Benefit Base would be $105,000 and the initial Annual Benefit Payment would be $7,350. If a withdrawal of $10,000 was made two years later after the Account Balance had increased to $150,000, the Account Balance would be reduced to $140,000. Since the withdrawal of $10,000 exceeded the Annual Benefit Payment of $7,350, the Annual Benefit Payment would be reset to the lower of a) $7,350 (the Annual Benefit Payment before the withdrawal) and b) $9,800 (7% multiplied by the Account Balance after the withdrawal). In this case the Annual Benefit Payment would remain at $7,350. D. How Withdrawals and Subsequent Purchase Payments Affect the Guaranteed Withdrawal Amount An initial purchase payment is made of $100,000 and the initial Guaranteed Withdrawal Amount and initial Benefit Base would both be $105,000. Assume that over the next five years, withdrawals reduced the Benefit Base to $70,000. If a 116 subsequent purchase payment of $10,000 was made, the Benefit Base would be increased to $70,000 + $10,000 + (5% X $10,000) = $80,500. The Guaranteed Withdrawal Amount would be reset to the greater of a) $105,000 (the Guaranteed Withdrawal Amount before the second purchase payment) and b) $80,500 (the Benefit Base after the second purchase payment). In this case, the Guaranteed Withdrawal Amount would remain at $105,000. E. Putting It All Together 1. When Withdrawals Do Not Exceed the Annual Benefit Payment An initial purchase payment is made of $100,000. The initial Benefit Base would be $105,000, the Guaranteed Withdrawal Amount would be $105,000, and the Annual Benefit Payment would be $7,350. Assume that the Benefit Base was reduced to $82,950 due to 3 years of withdrawing $7,350 each year and assume that the Account Balance was further reduced to $50,000 at year four due to poor market performance. If You withdrew $7,350 at this time, your Account Balance would be reduced to $50,000 - $7,350 = $42,650. Your Benefit Base would be reduced to $82,950 - $7,350 = $75,600. Since the withdrawal of $7,350 did not exceed the Annual Benefit Payment, there would be no additional reduction to the Benefit Base. The Guaranteed Withdrawal Amount would remain at $105,000 and the Annual Benefit Payment would remain at $7,350. [CHART] Annual Benefit Cumulative Account Benefit Payment Withdrawals Balance Base ------- ----------- ------- ------- 0 0 0 100,000 105,000 1 7,350 7,350 85,000 97,650 2 7,350 7,350 68,000 90,300 3 7,350 7,350 50,000 82,950 4 7,350 7,350 42,650 75,600 5 7,350 7,350 35,300 68,250 6 7,350 7,350 27,950 60,900 7 7,350 7,350 20,600 53,550 8 7,350 7,350 13,250 46,200 9 7,350 7,350 5,900 38,850 10 7,350 7,350 0 31,500 11 7,350 7,350 0 24,150 12 7,350 7,350 0 16,800 13 7,350 7,350 0 9,450 14 7,350 7,350 0 2,100 15 2,100 2,100 0 0 16 17 18 2. When Withdrawals Do Exceed the Annual Benefit Payment An initial purchase payment is made of $100,000. The initial Benefit Base would be $105,000, the Guaranteed Withdrawal Amount would be $105,000, and the Annual Benefit Payment would be $7,350. Assume that the Benefit Base was reduced to $82,950 due to 3 years of withdrawing $7,350 each year. Assume the Account Balance was further reduced to $50,000 at year four due to poor market performance. If You withdrew $10,000 at this time, your Account Balance would be reduced to $50,000 - $10,000 = $40,000. Your Benefit Base would be reduced to $82,950 - $10,000 = $72,950. Since the withdrawal of $10,000 exceeded the Annual Benefit Payment of $7,350 and the resulting Benefit Base would be greater than the resulting Account Balance, there would be an additional reduction to the Benefit Base. The Benefit Base after the withdrawal would be set equal to the Account Balance after the withdrawal = $40,000. The Annual Benefit Payment would be set equal to the lesser of $7,350 and 7% X $40,000 = $2,800. The Guaranteed Withdrawal Amount would remain at $105,000, but this amount now no longer would be guaranteed to be received over time. The new Benefit Base of $40,000 would be now the amount guaranteed to be available to be withdrawn over time. 117 [CHART] Annual Benefit Cumulative Account Benefit Payment Withdrawals Balance Base ------- ----------- ------- ------- 0 $0 $0 $100,000 $105,000 1 7,350 7,350 85,000 97,650 2 7,350 7,350 68,000 90,300 3 7,350 7,350 50,000 82,950 4 7,350 10,000 40,000 40,000 5 2,800 2,800 37,200 37,200 6 2,800 2,800 34,400 34,400 7 2,800 2,800 31,600 31,600 8 2,800 2,800 28,800 28,800 9 2,800 2,800 26,000 26,000 10 2,800 2,800 23,200 23,200 11 2,800 2,800 20,400 20,400 12 2,800 2,800 17,600 17,600 13 2,800 2,800 14,800 14,800 14 2,800 2,800 12,000 12,000 15 2,800 2,800 9,200 9,200 16 2,800 2,800 6,400 6,400 17 2,800 2,800 3,600 3,600 18 2,800 2,800 800 800 F. Annual Benefit Payment Continuing When Account Balance Reaches Zero An initial purchase payment is made of $100,000. The initial Account Balance would be $100,000, the initial Benefit Base would be $105,000 and the Annual Benefit Payment would be $7,350 ($105,000 X 7%). Assume that the Benefit Base was reduced to $31,500 due to 10 years of withdrawing $7,350 each year. Assume that the Account Balance was further reduced to $0 at year 11 due to poor market performance. We would commence making payments to You (equal on an annual basis, to the Annual Benefit Payment) until the Benefit Base is exhausted. In this situation (assuming there are monthly payments), there would be 51 payments of $612.50 and a final payment of $262.50, which, in sum, would deplete the $31,500 Benefit Base. The total amount withdrawn over the life of the Contract would then be $105,000. [CHART] Annual Benefit Payment Benefit Base Account Balance ---------------------- ------------ --------------- 1 $7,350 $105,000 $100,000 2 7,350 97,650 73,000 3 7,350 90,300 52,750 4 7,350 82,950 37,562.50 5 7,350 75,600 26,171.88 6 7,350 68,250 17,628.91 7 7,350 60,900 11,221.68 8 7,350 53,550 6,416.26 9 7,350 46,200 2,812.20 10 7,350 38,850 109.14 11 7,350 31,500 0 12 7,350 24,150 0 13 7,350 16,800 0 14 7,350 9,450 0 15 2,100 2,100 0 16 0 0 0 118 G. How the Optional Reset Works if Elected on the 3rd Contract Anniversary (may be elected prior to age 86) Assume that a Contract had an initial purchase payment of $100,000 and the fee is .55%. The initial Account Balance would be $100,000, the initial Benefit Base would be $105,000, the Guaranteed Withdrawal Amount would be $105,000 and the Annual Benefit Payment would be $7,350. The Account Balance on the third Contract Anniversary grew due to market performance to $148,350. Assume the fee remains at .55%. If an Optional Reset is elected or Automatic Annual Resets are in effect, the charge would remain at ..55%, the Guaranteed Withdrawal Amount and the Benefit Base would be reset to $148,350, and the Annual Benefit Payment would become 7% X $148,350 = $10,385. The Account Balance on the sixth Contract Anniversary grew due to market performance to $179,859. Assume the fee has been increased to .60%. If an Optional Reset is elected or Automatic Annual Resets are in effect, the charge would increase to .60%, the Guaranteed Withdrawal Amount and the Benefit Base would both be reset to $179,859, and the Annual Benefit Payment would become 7% X $179,859 = $12,590. The Account Balance on the ninth Contract Anniversary grew due to market performance to $282,582. Assume the fee is still .60%. If an Optional Reset is elected or Automatic Annual Resets are in effect, the charge would remain at ..60%, the Guaranteed Withdrawal Amount and the Benefit Base would both be reset to $282,582, and the Annual Benefit Payment would become 7% X $282,582= $19,781. The period of time over which the Annual Benefit Payment may be taken would be lengthened. [CHART] Annual Benefit Cumulative Payment Withdrawals Account Balance -------------- ----------- --------------- 1 $ 7,350 $ 7,350 $105,000 2 7,350 14,700 125,000 3 7,350 22,050 130,000 4 10,385 32,435 148,350 5 10,385 42,819 185,000 6 10,385 53,204 195,000 7 12,590 65,794 179,859 8 12,590 78,384 210,000 9 12,590 90,974 223,000 10 19,781 110,755 282,582 11 19,781 130,535 270,000 12 19,781 150,316 278,000 119 H. How an Optional Reset May Increase the Benefit Base While Decreasing the Guaranteed Withdrawal Amount and Annual Benefit Payment Assume that a Contract had an initial purchase payment of $100,000. The initial Account Balance would be $100,000, the initial Benefit Base would be $105,000, the Guaranteed Withdrawal Amount would be $105,000 and the Annual Benefit Payment would be $7,350. Assume that the Benefit Base is reduced to $70,000 due to 5 years of withdrawing $7,000 each year, but also assume that, due to positive market performance, the Account Balance at the end of 5 years is $80,000. If a one-time Optional Reset is elected, the Benefit Base would be reset from $70,000 to $80,000, the Guaranteed Withdrawal Amount would be reduced from $105,000 to $80,000, and the Annual Benefit Payment would be reduced from $7,350 to $5,600 ($80,000 X 7%). (If You elect Automatic Annual Resets, a rest will not occur if the Account Balance is lower than the Guaranteed Withdrawal Amount.) Under these circumstances, the Optional Reset increases the Benefit Base (the remaining amount of money You are guaranteed to receive) by $10,000, but also reduces the Annual Benefit Payment, thereby lengthening the period of time over which You will receive the money. This Optional Reset also reduces the Guaranteed Withdrawal Amount, against which the benefit charge is calculated. If the benefit charge rate does not increase in connection with the Optional Reset, the reduced Guaranteed Withdrawal Amount will result in a reduction in the amount of the annual benefit charge. DESCRIPTION OF THE GWB I The GWB I is no longer available for sale. The GWB I is the same as the Enhanced GWB described above with the following differences: (1) there is no favorable treatment of required minimum distributions; (2) the GWB charge continues even if your Benefit Base equals zero; (3) You may only elect the Optional Reset once every five Contract years instead of every Contract Year; (4) the GWB I charge is 0.50% and the maximum GWB I charge upon an Optional Reset is 0.95%; (5) You do not have the ability to cancel the benefit following your fifth Contract Anniversary; and (6) we include Withdrawal Charges for the purposes of determining whether your annual withdrawals exceeded your Annual Benefit Payment. By endorsement, the GWB I has been enhanced so that items (1) and (2) above no longer apply and the interval between Optional Resets in item (3) has been decreased to every three Contract Years. You may now elect an Optional Reset under the GWB I starting with the third Contract Anniversary (as long as it is prior to the owner's 86th birthday), and You may elect an Optional Reset at any subsequent Contract Anniversary prior to the owner's 86th birthday, as long as it has been at least three years since the last Optional Reset. Automatic annual resets are not available. RESTRICTIONS ON SUBSEQUENT PURCHASE PAYMENTS. Subsequent purchase payment restrictions under the GWB I are restricted as described in "Your Investment Choices -- Restrictions on Subsequent Purchase Payments -- GMIB I, GMIB Plus I, GMIB Plus II, GWB I, Enhanced GWB, LWG I, LWG II, GMAB and EDB I." GMAB The GMAB guarantees that your Account Balance will not be less than a minimum amount at the end of a specified number of years (the "Maturity Date"). If your Account Balance is less than the minimum guaranteed amount at the Maturity Date, we will apply an additional amount to increase your Account Balance so that it is equal to the guaranteed amount. This benefit is intended to protect You against poor investment performance during the accumulation or "pay-in" phase of your Deferred Annuity. The GMAB is no longer available for sale. If You have elected the GMAB, we require You to allocate your purchase payments and all of your Account Balance to one of the asset allocation Investment Divisions available in your Deferred Annuity (the MetLife Moderate to Aggressive and 120 the MetLife Aggressive Allocation Investment Divisions are not available for this purpose). You may also allocate purchase payments to the Enhanced Dollar Cost Averaging Program, if available, provided that any amounts transferred from the program to an Investment Division must be transferred to the one Investment Division You have chosen. The Fixed Account is not available. No transfers are permitted while this optional benefit is in effect. The asset allocation Investment Division You choose will determine the percentage of purchase payments that equal the guaranteed amount. The asset allocation Investment Divisions available, if You choose the GMAB, and the percentage of purchase payments that determine the guaranteed amount and the number of years to the Maturity Date for each, are:
GUARANTEED AMOUNT INVESTMENT DIVISION* (% OF PURCHASE PAYMENTS) YEARS TO MATURITY DATE -------------------- ------------------------ ---------------------- MetLife Conservative Allocation Investment Division............. 130% 10 years MetLife Conservative to Moderate Allocation Investment Division. 120% 10 years MetLife Moderate Allocation Investment Division................. 110% 10 years
----------- * You can learn more about these Investment Divisions in the Prospectus under the section "Your Investment Choices" and the attached prospectus for these portfolios. You may elect the GMAB when You purchase the Deferred Annuity through age 80. You may not have this benefit and another living benefit or the EDB I in effect at the same time. BENEFIT DESCRIPTION. The GMAB guarantees that at the Maturity Date, your Account Balance will at least be equal to a percentage of the purchase payments You made during the first 120 days that You held the Deferred Annuity (the "Eligibility Period"), less reductions for any withdrawals (and related Withdrawal Charges) that You made at any time before the Maturity Date. The percentage of purchase payments made that determines the guaranteed amount range from 110% to 130%, depending on the asset allocation Investment Division You selected. This guaranteed amount is the "Guaranteed Accumulation Amount." The Guaranteed Accumulation Amount is used only to determine the amount of any benefit payable under the GMAB and the amount of the annual charge for the GMAB. There is a maximum Guaranteed Accumulation Amount (currently $5 million). Purchase payments made after this maximum Guaranteed Accumulation Amount is reached will not increase the Guaranteed Accumulation Amount above the maximum. However, if You make a withdrawal during the GMAB Eligibility Period that reduces the Guaranteed Accumulation Amount below the maximum, then purchase payments made after the withdrawal and during the Eligibility Period will increase the Guaranteed Accumulation Amount until it reaches the maximum. Only purchase payments made during the first 120 days that You hold the Deferred Annuity are taken into consideration in determining the Guaranteed Accumulation Amount. Contract owners who anticipate making purchase payments after 120 days should understand that such payments will not increase the Guaranteed Accumulation Amount. Purchase payments made after 120 days are added to your Account Balance and impact whether or not a benefit is due under the GMAB at the Maturity Date. At issue, the Guaranteed Accumulation Amount is equal to a percentage of your initial purchase payment. Subsequent purchase payments made during the Eligibility Period increase the Guaranteed Accumulation Amount by the target percentage of the asset allocation Investment Division You have selected. When You make a withdrawal, the Guaranteed Accumulation Amount is reduced in the same proportion that the amount of the withdrawal (including any related Withdrawal Charge) bears to the Account Balance. Purchase payment credits (I.E., bonus payments) are not considered to be purchase payments in the calculation of the Guaranteed Accumulation Amount. The Guaranteed Accumulation Amount does not represent an amount of money available for withdrawal and is used to calculate any benefits under the Contract prior to the Maturity Date. EXAMPLE: Assume your Account Balance is $100,000 and your Guaranteed Accumulation Amount is $120,000, prior to making a $10,000 withdrawal from the Deferred Annuity. The withdrawal amount is 10% of the Account Balance. Therefore, after 121 the withdrawal, your Account Balance would be $90,000 and your Guaranteed Accumulation Amount would be $108,000 (90% of $120,000). At the Maturity Date, after deduction of the annual charge for the GMAB, we will compare your Account Balance to the Guaranteed Accumulation Amount. If the Account Balance is less than the Guaranteed Accumulation Amount, we will contribute to your Account Balance the amount needed to make it equal the Guaranteed Accumulation Amount. (This added amount is the "Guaranteed Accumulation Payment.") The Guaranteed Accumulation Payment is allocated entirely to the Investment Division You have selected. (No portion of the Guaranteed Accumulation Payment is allocated to the Enhanced Dollar Cost Averaging Program.) If your Account Balance is greater than or equal to the Guaranteed Accumulation Amount at the Maturity Date, then no Guaranteed Accumulation Payment will be paid into your Account Balance. The GMAB terminates at the Maturity Date. We no longer assess the charge after that date, and the related investment requirements and restrictions will no longer apply. If your Account Balance is reduced to zero for any reason other than a full withdrawal of the Account Balance or application of your Account Balance to a pay-out option prior to the Maturity Date, but your Deferred Annuity has a positive Guaranteed Accumulation Amount remaining, the Deferred Annuity and the GMAB will remain in force. No charge for the GMAB will be deducted or accrue while there is an insufficient Account Balance to cover the deductions for the charge. At the Maturity Date, the Guaranteed Accumulation Payment will be paid into the Account Balance. Purchase payments made after the 120 day Eligibility Period may have a significant impact on whether or not a Guaranteed Accumulation Payment is due at the Maturity Date. Even if the purchase payments You made during the 120 day Eligibility Period lose significant value, if the Account Balance, which includes all purchase payments, is equal to or greater than the target percentage amount of your purchase payments made during the first 120 day period (depending on which asset allocation investment You have selected), then no Guaranteed Accumulation Payment is made. Therefore, the GMAB may not be appropriate for You, if You intend to make additional purchase payments after the end of the Eligibility Period. EXAMPLE Assume that You make one $10,000 purchase payment during the 120 Eligibility Period and You select the MetLife Moderate Allocation Investment Division. Therefore, the Guaranteed Accumulation Amount is $11,000 (110% of your purchase payment). At the Maturity Date, your Account Balance is $0. The Guaranteed Accumulation Amount payable is $11,000 ($11,000-$0 = $11,000). In contrast, assume that You make one $10,000 purchase payment during the 120 day Eligibility Period and You select the MetLife Moderate Allocation Investment Division. Therefore, the Guaranteed Accumulation Amount is $11,000. Also assume that on the day before the Maturity Date your Account Balance is $0. Assume that You decide to make one purchase payment on the day before the Maturity Date of $11,000. At the Maturity Date, assume that there has not been any positive or negative investment experience for the one day between your purchase payment and the Maturity Date. Consequently, your Account Balance is $11,000. We would not pay a Guaranteed Accumulation Payment, because the Account Balance of $11,000 would equal the Guaranteed Accumulation Amount of $11,000 ($11,000-$11,000 = $0.) RESTRICTIONS ON SUBSEQUENT PURCHASE PAYMENTS. Subsequent purchase payment restrictions under the GMAB are restricted as described in "Your Investment Choices -- Restrictions on Subsequent Purchase Payments -- GMIB I, GMIB Plus I, GMIB Plus II, GWB I, Enhanced GWB, LWG I, LWG II, GMAB and EDB I." TERMINATION. The GMAB will terminate at the earliest of: (1) the Maturity Date; (2) the date You take a total withdrawal of your Account Balance (A pro-rata portion of the charge will be applied); (3) the date You cancel this 122 benefit, as described below; (4) the date You apply all of your Account Balance to a pay-out option (A pro-rata portion of the charge will be applied); and (5) the date of death of the owner or joint owner (or Annuitant if the owner is a non-natural person) unless the Beneficiary is the spouse of the owner and elects to continue the Deferred Annuity under the spousal continuation provisions of the Deferred Annuity. Once the GMAB is terminated, the GMAB charge will no longer be deducted and the related investment requirements and limitations will no longer apply. If the GMAB is terminated before the Maturity Date, the Guaranteed Accumulation Payment will not be paid. CANCELLATION. You have a one-time right to cancel this optional benefit in accordance with our administrative procedures (currently we require You to submit your request to cancel in writing at our Administrative Office) during the 90 day period after your fifth Contract Anniversary. Such cancellation will take effect upon our receipt of your request. Once You have cancelled the benefit, You will no longer be eligible to receive the Guaranteed Accumulation Payment or be bound by the investment requirements and restrictions and we will no longer deduct the charge for this benefit. CHARGE. The GMAB is available for an additional charge of 0.75% of the Guaranteed Accumulation Amount determined at the end the prior Contract Year and deducted each Contract Anniversary, by withdrawing amounts on a pro-rata basis from your Enhanced Dollar Cost Averaging Program and Separate Account balance. (We take the amount from the Separate Account by canceling accumulation units from your Separate Account balance.) GMAB AND DECEDENT CONTRACTS. If You are purchasing this Contract with a nontaxable transfer of the death benefit proceeds of any annuity Contract or IRA (or any other tax-qualified arrangement) of which You are the Beneficiary and You are "stretching" the distribution under Internal Revenue Service required distribution rules, You may not purchase the GMAB. 123 SUMMARY OF LIVING BENEFITS The chart below highlights certain differences among the living benefits. Please refer to the detailed descriptions above for specific information about the features, costs and restrictions associated with the riders.*
--------------------------------------------------------------------------------------------------------------------- Income Guarantees Withdrawal Guarantees --------------------------------------------------------------------------------- GMIB Plus II LWG II Enhanced GWB --------------------------------------------------------------------------------------------------------------------- LifetimeIncome Yes Yes No (after waiting period) (if first withdrawal on or after age 59 1/2) --------------------------------------------------------------------------------------------------------------------- BenefitInvolves Annuitization Yes No No --------------------------------------------------------------------------------------------------------------------- WithdrawalsPermitted (1) Prior to annuitization Yes Yes --------------------------------------------------------------------------------------------------------------------- WaitingPeriod Must wait 10 years to None None annuitize under rider: (age 59 1/2 for lifetime Optional Step-Up (2) withdrawals) restarrs waiting period; withdrawals available immediately --------------------------------------------------------------------------------------------------------------------- Reset/Step-Up Yes Yes Yes --------------------------------------------------------------------------------------------------------------------- May Invest in Investment Choices Prior to annuitization Yes Yes --------------------------------------------------------------------------------------------------------------------- Investment Allocation Requirements Yes Yes No --------------------------------------------------------------------------------------------------------------------- Abilityto Cancel Rider Yes, after 10 years, can Yes, at 5th, 10th & 15th Yes, within 90 days after take lump-sum option Contract Anniversary, 5th Contract Anniversary under the GPO provisions annually thereafter; or, lump-sum option under the GPA provisions after 15 years --------------------------------------------------------------------------------------------------------------------- DeathBenefit Prior to annuitization, Contract death benefit or Ability to receive Benefit Contract death benefit alternate rider death Base in series of available (3) benefit available; ability payments instead of to receive Remaining Contract death benefit Guaranteed Withdrawal Amount in series of payments instead of Contract death benefit --------------------------------------------------------------------------------------------------------------------- CurrentCharges (4) GMIB Plus II LWG II: 1.25% (Single Enhanced GWB: 0.55% 1.00% Life version) or 1.50% (Joint Life version) ---------------------------------------------------------------------------------------------------------------------
----------- * For a description of the following riders (GMIB Plus I, GMIB II, GMIB I, LWG I, GWB, GMAB) that are not longer available, please see "Living Benefits" above. /1/ Withdrawals will reduce the living and death benefits and Account Balance. /2/ For GMIB Plus I, the Optional Step-Up is called the "Optional Reset." /3/ If the Contract is annuitized, income payments may be guaranteed for a certain period of time (depending on the income payment type selected) and therefore payable upon death of the Annuitant. See "Pay-Out Options (or Income Options)" and the rider descriptions for more information. /4/ Certain charges may increase upon a Reset or Step-Up. Generally, charges are assessed as a percentage of the guaranteed benefit rather than Account Balance. For example, the charge for GMIB II is 0.50% of the Income Base. See the "Charges" section and the individual rider descriptions for more information. /5/ For Contracts issued in New York State, the charge for GMIB Plus II is 0.95% of the Income Base. 124 PAY-OUT OPTIONS (OR INCOME OPTIONS) You may convert your Deferred Annuity into a regular stream of income after your "pay-in" or "accumulation" phase. The pay-out phase is often referred to as either "annuitizing" your Contract or taking an income annuity. When You select your pay-out option, You will be able to choose from the range of options we then have available. You have the flexibility to select a stream of income to meet your needs. If You decide You want a pay-out option, we withdraw some or all of your Account Balance (less any premium taxes and applicable Contract fees), then we apply the net amount to the option. See "Income Taxes" for a discussion of partial annuitization. You are required to hold your Deferred Annuity for at least 30 days from the date we issue the Contract before You annuitize. When You purchase the Deferred Annuity, the annuity date will be the later of the first day of the calendar month after the Annuitant's 95th birthday (90th birthday in New York State) or 10 years from the date your Deferred Annuity was issued. You can change or extend the annuity date at any time before the annuity date with 30 days prior notice to us (subject to restrictions that may apply in your state and our current established administrative procedures). Although guaranteed annuity rates for the Bonus Class are the same as those for the other classes of the Deferred Annuity, current rates for the Bonus Class may be lower than the other classes of the Deferred Annuity. You must convert at least $5,000 of your Account Balance to receive income payments. PLEASE BE AWARE THAT ONCE YOUR CONTRACT IS ANNUITIZED, YOU ARE INELIGIBLE TO RECEIVE THE DEATH BENEFIT YOU HAVE SELECTED. ADDITIONALLY, IF YOU HAVE SELECTED A LIVING BENEFIT SUCH AS A GMIB, A GWB, OR THE GMAB, ANNUITIZING YOUR CONTRACT TERMINATES THE OPTIONAL BENEFIT, INCLUDING ANY DEATH BENEFIT PROVIDED BY THE RIDER AND ANY GUARANTEED PRINCIPAL OPTION OR GUARANTEED PRINCIPAL ADJUSTMENT (FOR GMIB PLUS I AND GMIB PLUS II OR LWGS, RESPECTIVELY) OR GUARANTEED ACCUMULATION PAYMENT (FOR THE GMAB) THAT MAY ALSO BE PROVIDED BY THE OPTIONAL BENEFIT. When considering a pay-out option, You should think about whether You want: .. Payments guaranteed by us for the rest of your life (or for the rest of two lives) or the rest of your life (or for the rest of two lives) with a guaranteed period; and .. A fixed dollar payment or a variable payment. Your income option provides You with a regular stream of payments for either your lifetime or your lifetime with a guaranteed period. You may choose the frequency of your income payments (choosing less frequent payments will result in each income payment being larger). For example, You may receive your payments on a monthly, quarterly, semiannual or annual basis. Your income payment amount will depend upon your choices. For lifetime options, the age and sex (where permitted), of the measuring lives (Annuitants) will also be considered. For example, if You select a pay-out option guaranteeing payments for your lifetime and your spouse's lifetime, your payments will typically be lower than if You select a pay-out option with payments over only your lifetime. Income payment types that guarantee that payments will be made for a certain number of years regardless of whether the Annuitant or joint Annuitant is alive (such as Lifetime Income Annuity with a Guarantee Period and Lifetime Income Annuity for Two with a Guarantee Period, as defined below) result in income payments that are smaller than with income payment types without such a guarantee (such as Lifetime Income Annuity and Lifetime Income Annuity for Two, as defined below). In addition, to the extent the income payment type has a guarantee period, choosing a shorter guarantee period will result in each income payment being larger. If You do not tell us otherwise, your Fixed Account balance and Enhanced Dollar Cost Averaging Program balance will be used to provide a Fixed Income Option and your Separate Account balance will be used to provide a variable pay-out option. 125 We do not guarantee that your variable payments will be a specific amount of money. You may choose to have a portion of the payment fixed and guaranteed under the Fixed Income Option. Should our current annuity rates for a fixed pay-out option for your class of the Deferred Annuity provide for greater payments than those guaranteed in your Contract, the greater payment will be made. INCOME PAYMENT TYPES Currently, we provide You with a wide variety of income payment types to suit a range of personal preferences. You decide the income pay-out type when You decide to take a pay-out option. Your decision is irrevocable. There are three people who are involved in payments under your pay-out option: .. Contract owner: the person or entity which has all rights including the right to direct who receives payment. .. Annuitant: the natural person whose life is the measure for determining the duration and the dollar amount of payments. .. Beneficiary: the person who receives continuing payments or a lump sum payment, if any, if the Contract Owner dies. Many times, the Contract Owner and the Annuitant are the same person. When deciding how to receive income, consider: .. The amount of income You need; .. The amount You expect to receive from other sources; .. The growth potential of other investments; and .. How long You would like your income to be guaranteed. The following income payment types are currently available. We may make available other income payment types if You so request and we agree. Where required by state law or under a qualified retirement plan, the Annuitant's sex will be not taken into account in calculating income payments. Annuity rates will not be less than the rates guaranteed in the Contract at the time of purchase for the AIR and income payment type elected. Due to underwriting, administrative or Internal Revenue Code considerations, the choice of the percentage reduction and/or the duration of the guarantee period may be limited. Tax rules with respect to decedent Contracts may prohibit election of Lifetime Income Annuity for Two income types and/or may also prohibit payments for as long as the owner's life in certain circumstances. LIFETIME INCOME ANNUITY: A variable income that is paid as long as the Annuitant is living. LIFETIME INCOME ANNUITY WITH A GUARANTEE PERIOD: A variable income that continues as long as the Annuitant is living but is guaranteed to be paid for a number of years. If the Annuitant dies before all of the guaranteed payments have been made, payments are made to the Contract Owner of the annuity (or the Beneficiary, if the Contract Owner dies during the guarantee period) until the end of the guarantee period. No payments are made once the guarantee period has expired and the Annuitant is no longer living. LIFETIME INCOME ANNUITY FOR TWO: A variable income that is paid as long as either of the two Annuitants is living. After one Annuitant dies, payments continue to be made as long as the other Annuitant is living. In that event, payments may be the same as those made while both Annuitants were living or may be a smaller percentage that is selected when the annuity is first converted to an income stream. No payments are made once both Annuitants are no longer living. LIFETIME INCOME ANNUITY FOR TWO WITH A GUARANTEE PERIOD: A variable income that continues as long as either of the two Annuitants is living but is guaranteed to be paid (unreduced by any percentage selected) for a number of 126 years. If both Annuitants die before all of the guaranteed payments have been made, payments are made to the Contract Owner of the annuity (or the Beneficiary, if the Contract Owner dies during the guarantee period) until the end of the guaranteed period. If one Annuitant dies after the guarantee period has expired, payments continue to be made as long as the other Annuitant is living. In that event, payments may be the same as those made while both Annuitants were living or may be a smaller percentage that is selected when the annuity is first converted to an income stream. No payments are made once the guarantee period has expired and both Annuitants are no longer living. ALLOCATION You decide how your money is allocated among the Fixed Income Option and the Investment Divisions. MINIMUM SIZE OF YOUR INCOME PAYMENT Your initial income payment must be at least $100. This means that the amount used from a Deferred Annuity to provide a pay-out option must be large enough to produce this minimum initial income payment. We may reduce the frequency of your income payments to produce a payment of at least $100, in which case your payment will be made at least annually. THE VALUE OF YOUR INCOME PAYMENTS AMOUNT OF INCOME PAYMENTS Variable Income Payments from an Investment Division will depend upon the number of annuity units held in that Investment Division (described below) and the Annuity Unit Value (described later) as of the 10th day prior to a payment date. The initial variable income payment is computed based on the amount of the purchase payment applied to the specific Investment Division (net any applicable premium tax owed or Contract charge), the AIR, the age of the measuring lives and the income payment type selected. The initial payment amount is then divided by the Annuity Unit Value for the Investment Division to determine the number of annuity units held in that Investment Division. The number of annuity units held remains the same for duration of the Contract if no reallocations are made. The dollar amount of subsequent variable income payments will vary with the amount by which investment performance less the Separate Account Charge is greater or less than the AIR. Each Deferred Annuity provides that, when a pay-out option is chosen, the payment will not be less than the payment produced by the then current Fixed Income Option purchase rates for that Contract class. The purpose of this provision is to assure the owner that, at retirement, if the Fixed Income Option purchase rates for new Contracts are significantly more favorable than the rates guaranteed by a Deferred Annuity of the same class, the owner will be given the benefit of the higher rates. ANNUITY UNITS Annuity units are credited to You when You first convert your Deferred Annuity into an income stream or make a reallocation of your income payment into an Investment Division during the pay-out phase. Before we determine the number of annuity units to credit to You, we reduce your Account Balance by any premium taxes and the Annual Contract Fee, if applicable. (The premium taxes and the Annual Contract Fee are not applied against reallocations.) We then compute an initial income payment amount using the AIR, your income payment type and the age and sex (where permitted) of the measuring lives. We then divide the initial income payment (allocated to an Investment Division) by the Annuity Unit Value on the date of the transaction. The result is the number of annuity units credited for that Investment 127 Division. The initial variable income payment is a hypothetical payment which is calculated based on the AIR. This initial variable income payment is used to establish the number of annuity units. It is not the amount of your actual first variable income payment unless your first income payment happens to be within 10 days after the date You convert your Deferred Annuity into an income stream. When You reallocate an income payment from an Investment Division, annuity units supporting that portion of your income payment in that Investment Division are liquidated. AIR Your income payments are determined by using the AIR to benchmark the investment experience of the Investment Divisions You select. We currently offer an AIR of 3% and 4%. The higher your AIR, the higher your initial variable income payment will be. Your next payment will increase approximately in proportion to the amount by which the investment experience (for the time period between the payments) for the underlying Portfolio minus the Basic Death Benefit Separate Account charge (the resulting number is the net investment return) exceeds the AIR (for the time period between the payments). Likewise, your next payment will decrease to the approximate extent the investment experience (for the time period between the payments) for the underlying Portfolio minus the Basic Death Benefit Separate Account (the net investment return) charge is less than the AIR (for the time period between the payments). A lower AIR will result in a lower initial variable income payment, but subsequent variable income payments will increase more rapidly or decline more slowly than if You had elected a higher AIR as changes occur in the investment experience of the Investment Divisions. The amount of each variable income payment is determined 10 days prior to your income payment date. If your first income payment is scheduled to be paid less than 10 days after You convert your Deferred Annuity to an income stream, then the amount of that payment will be determined on the date You convert your Deferred Annuity to a pay-out option. VALUATION This is how we calculate the Annuity Unit Value for each Investment Division: .. First, we determine the change in investment experience (which reflects the deduction for any investment-related charge) for the underlying Portfolio from the previous trading day to the current trading day; .. Next, we subtract the daily equivalent of the Basic Death Benefit Separate Account charge for each day since the last day the Annuity Unit Value was calculated; the resulting number is the net investment return. .. Then, we multiply by an adjustment based on your AIR for each day since the last Annuity Unit Value was calculated; and .. Finally, we multiply the previous Annuity Unit Value by this result. REALLOCATION PRIVILEGE During the pay-out phase of the Deferred Annuity, You may make reallocations among Investment Divisions or from the Investment Divisions to the Fixed Income Option. Each reallocation must be at least $500 or, if less, your entire income payment allocated to the Investment Division. Once You reallocate your income payment into the Fixed Income Option, You may not later reallocate it into an Investment Division. There is no Withdrawal Charge to make a reallocation. For us to process a reallocation, You must tell us: .. The percentage of the income payment to be reallocated; .. The Investment Divisions (or Fixed Income Option) to which You want to reallocate your income payment; and .. The Investment Divisions from which You want to reallocate your income payment. We may require that You use our original forms to make reallocations. 128 Reallocations will be made at the end of the business day, at the close of the Exchange, if received in Good Order prior to the close of the Exchange, on that business day. All other reallocation requests will be processed on the next business day. When You request a reallocation from an Investment Division to the Fixed Income Option, the payment amount will be adjusted at the time of reallocation. Your payment may either increase or decrease due to this adjustment. The adjusted payment will be calculated in the following manner. .. First, we update the income payment amount to be reallocated from the Investment Division based upon the applicable Annuity Unit Value at the time of the reallocation; .. Second, we use the AIR to calculate an updated annuity purchase rate based upon your age, if applicable, and expected future income payments at the time of the reallocation; .. Third, we calculate another updated annuity purchase rate using our current annuity purchase rates for the Fixed Income Option on the date of your reallocation; .. Finally, we determine the adjusted payment amount by multiplying the updated income amount determined in the first step by the ratio of the annuity purchase rate determined in the second step divided by the annuity purchase rate determined in the third step. When You request a reallocation from one Investment Division to another, annuity units in one Investment Division are liquidated and annuity units in the other Investment Division are credited to You. There is no adjustment to the income payment amount. Future income payment amounts will be determined based on the Annuity Unit Value for the Investment Division to which You have reallocated. You generally may make a reallocation on any day the Exchange is open. At a future date we may limit the number of reallocations You may make, but never to fewer than one a month. If we do so, we will give You advance written notice. We may limit a Beneficiary's ability to make a reallocation. Here are examples of the effect of a reallocation on the income payment: .. Suppose You choose to reallocate 40% of your income payment supported by Investment Division A to the Fixed Income Option and the recalculated income payment supported by Investment Division A is $100. Assume that the updated annuity purchase rate based on the AIR is $125, while the updated annuity purchase rate based on fixed income annuity pricing is $100. In that case, your income payment from the Fixed Income Option will be increased by $40 x ($125/$100) or $50, and your income payment supported by Investment Division A will be decreased by $40. (The number of annuity units in Investment Division A will be decreased as well.) .. Suppose You choose to reallocate 40% of your income payment supported by Investment Division A to Investment Division B and the recalculated income payment supported by Investment Division A is $100. Then, your income payment supported by Investment Division B will be increased by $40 and your income payment supported by Investment Division A will be decreased by $40. (Changes will also be made to the number of annuity units in both Investment Divisions as well.) Please see the "Transfer Privilege" section regarding our transfer restriction policies and procedures. CHARGES You pay the Basic Death Benefit Separate Account charge for your Contract class during the pay-out phase of the Deferred Annuity. In addition, You pay the applicable investment-related charge during the pay-out phase of your Deferred Annuity. During the pay-out phase, we reserve the right to deduct the $30 Annual Contract Fee. If we do so, it will be deducted pro-rata from each income payment. The Separate Account charge You pay will not reduce the number of annuity units credited to You. Instead, we deduct the charges as part of the calculation of the Annuity Unit Value. 129 GENERAL INFORMATION ADMINISTRATION All transactions will be processed in the manner described below. PURCHASE PAYMENTS Send your purchase payments, by check, cashier's check or certified check, made payable to "MetLife," to MetLife Preference Plus Select, P.O. Box 371537, Pittsburgh, PA 15250-7537. (We reserve the right to receive purchase payments by other means acceptable to us.) We do not accept cash, money orders or traveler's checks. We will provide You with all necessary forms. We must have all documents in Good Order to credit your purchase payments. If You send your purchase payments or transaction requests to an address other than the one we have designated for receipt of such purchase payments or requests, we may return the purchase payment to You, or there may be delay in applying the purchase payment or transaction to your Contract. We reserve the right to refuse purchase payments made via a personal check in excess of $100,000. Purchase payments over $100,000 may be accepted in other forms, including but not limited to, EFT/wire transfers, certified checks, corporate checks, and checks written on financial institutions. The form in which we receive a purchase payment may determine how soon subsequent disbursement requests may be fulfilled. Purchase payments (including any portion of your Account Balance under a Deferred Annuity which You apply to a pay-out option) are effective and valued as of the close of the Exchange on the day we receive them in Good Order at your Administrative Office, except when they are received: .. On a day when the Accumulation Unit Value/Annuity Unit Value is not calculated, or .. After the close of the Exchange. In those cases, the purchase payments will be effective the next day the Accumulation Unit Value or Annuity Unit Value, as applicable, is calculated. We reserve the right to credit your initial purchase payment to You within two days after its receipt at your Administrative Office or MetLife sales office, if applicable. However, if You fill out our forms incorrectly or incompletely or other documentation is not completed properly or otherwise not in Good Order, we have up to five business days to credit the payment. If the problem cannot be resolved by the fifth business day, we will notify You and give You the reasons for the delay. At that time, You will be asked whether You agree to let us keep your money until the problem is resolved. If You do not agree or we cannot reach You by the fifth business day, your money will be returned. CONFIRMING TRANSACTIONS You will receive a written statement confirming that a transaction was recently completed. Certain transactions made on a periodic basis, such as check-o-matic, Systematic Withdrawal Program payments, and automated investment strategy transfers, may be confirmed quarterly. Unless You inform us of any errors within 60 days of receipt, we will consider these communications to be accurate and complete. PROCESSING TRANSACTIONS We permit You to request transactions by mail and telephone. We make Internet access available to You. We may suspend or eliminate telephone or Internet privileges at any time, without prior notice. We reserve the right not to accept requests for transactions by facsimile. 130 If mandated by applicable law, including, but not limited to, Federal anti-money laundering laws, we may be required to reject a purchase payment. We may also be required to block a Contract owner's account and, consequently, refuse to implement requests for transfers, withdrawals, surrenders or death benefits, until instructions are received from the appropriate governmental authority. BY TELEPHONE OR INTERNET You may obtain information and initiate a variety of transactions by telephone or the Internet virtually 24 hours a day, 7 days a week, unless prohibited by state law. Some of the information and transactions accessible to You include: .. Account Balance .. Unit Values .. Current rates for the Fixed Account .. Transfers .. Changes to investment strategies .. Changes in the allocation of future purchase payments. Your transaction must be in Good Order and completed prior to the close of the Exchange on one of our business days if You want the transaction to be valued and effective on that day. Transactions will not be valued and effective on a day when the Accumulation or Annuity Unit Value is not calculated or after the close of the Exchange. We will value and make effective these transactions on our next business day. We have put into place reasonable security procedures to insure that instructions communicated by telephone or Internet are genuine. For example, all telephone calls are recorded. Also, You will be asked to provide some personal data prior to giving your instructions over the telephone or through the Internet. When someone contacts us by telephone or Internet and follows our security procedures, we will assume that You are authorizing us to act upon those instructions. Neither the Separate Account nor MetLife will be liable for any loss, expense or cost arising out of any requests that we or the Separate Account reasonably believe to be authentic. In the unlikely event that You have trouble reaching us, requests should be made in writing to your Administrative Office. Response times for the telephone or Internet may vary due to a variety of factors, including volumes, market conditions and performance of the systems. We are not responsible or liable for: .. any inaccuracy, error, or delay in or omission of any information You transmit or deliver to us; or .. any loss or damage You may incur because of such inaccuracy, error, delay or omission; non-performance; or any interruption of information beyond our control. AFTER YOUR DEATH If we are presented with notification of your death before any requested transaction is completed (including transactions under automated investment strategies, the Enhanced Dollar Cost Averaging Program, the minimum distribution program and the Systematic Withdrawal Program), we will cancel the request. As described above, the death benefit will be determined when we receive due proof of death and an election for the payment method. If the Beneficiary is your spouse, the spouse may be substituted as the Contract Owner of the Deferred Annuity and continue the Contract. We permit the Beneficiary of a Traditional IRA Deferred Annuity to hold the Deferred Annuity in your name for his/her benefit. If You are receiving income payments, we will cancel the request and continue making payments to your Beneficiary if your income type so provides. Or, depending on the income type, we may continue making payments to a joint Annuitant. 131 ABANDONED PROPERTY REQUIREMENTS Every state has unclaimed property laws which generally declare non-ERISA ("Employees Retirement Income Security Act of 1974") annuity contracts to be abandoned after a period of inactivity of three to five years from the contract's maturity date or the date the death benefit is due and payable. For example, if the payment of a death benefit has been triggered, but, if after a thorough search, we are still unable to locate the beneficiary of the death benefit, or the beneficiary does not come forward to claim the death benefit in a timely manner, the death benefit will be paid to the abandoned property division or unclaimed property office of the state in which the beneficiary or You last resided, as shown on our books and records, or to our state of domicile. (Escheatment is the formal, legal name for this process.) However, the state is obligated to pay the death benefit (without interest) if your beneficiary steps forward to claim it with the proper documentation. To prevent your Contract's proceeds from being paid to the state abandoned or unclaimed property office, it is important that you update your Beneficiary designations, including addresses, if and as they change. Please call 1-800-638-7732 to make such changes. MISSTATEMENT We may require proof of age or sex (where permitted) of the Owner, Annuitant or Beneficiary before making any payments under this Contract that are measured by the Owner's, Annuitant's or Beneficiary's life. If the age or sex (where permitted) of the measuring life has been misstated, the amount payable will be the amount that would have been provided at the correct age and sex (where permitted). Once income payments have begun, any overpayments or underpayments will be made up in one sum with the next income payment in a manner agreed to by us. Any overpayments will be deducted first from future income payments. In certain states we may be required to pay interest on any underpayment. THIRD PARTY REQUESTS Generally, we only accept requests for transactions or information from You. In addition, we reserve the right not to accept or to process transactions requested on your behalf by third parties. This includes processing transactions by an agent You designate, through a power of attorney or other authorization, who has the ability to control the amount and timing of transfers/reallocations for a number of other Contract owners and who simultaneously makes the same request or series of requests on behalf of other Contract owners. VALUATION -- SUSPENSION OF PAYMENTS We separately determine the Accumulation Unit Value and Annuity Unit Value, as applicable, for each Investment Division once each day when the Exchange is open for trading. If permitted by law, we may change the period between calculations but we will give You 30 days notice. When You request a transaction, we will process the transaction on the basis of the Accumulation Unit Value or Annuity Unit Value next determined after receipt of the request. Subject to our procedure, we will make withdrawals and transfers/reallocations at a later date, if You request. If your withdrawal request is to elect a variable pay-out option under your Deferred Annuity, we base the number of annuity units You receive on the next available Annuity Unit Value. We reserve the right to suspend or postpone payment for a withdrawal or transfer/reallocation when: .. rules of the Securities and Exchange Commission so permit (trading on the Exchange is restricted, the Exchange is closed other than for customary weekend or holiday closings or an emergency exists which makes pricing or sale of securities not practicable); or .. during any other period when the Securities and Exchange Commission by order so permits. 132 ADVERTISING PERFORMANCE We periodically advertise the performance of the Investment Divisions. You may get performance information from a variety of sources including your quarterly statements, your MetLife representative, the Internet, annual reports and semiannual reports. All performance numbers are based upon historical earnings. These numbers are not intended to indicate future results. We may state performance in terms of "yield," "change in Accumulation Unit Value/Annuity Unit Value," "average annual total return" or some combination of these terms. YIELD is the net income generated by an investment in a particular Investment Division for 30 days or a month. These figures are expressed as percentages. This percentage yield is compounded semiannually; for the money market Investment Division, we state yield for a seven day period. CHANGE IN ACCUMULATION/ANNUITY UNIT VALUE ("Non-Standard Performance") is calculated by determining the percentage change in the value of an accumulation (or annuity) unit for a certain period. These numbers may also be annualized. Change in Accumulation/Annuity Unit Value may be used to demonstrate performance for a hypothetical investment (such as $10,000) over a specified period. These performance numbers reflect the deduction of the Separate Account charges (with the Basic Death Benefit), the additional Separate Account charge for the American Funds Bond, American Funds Growth, American Funds Growth-Income and American Funds Global Small Capitalization Investment Divisions and the Annual Contract Fee; however, yield and change in Accumulation/Annuity Unit Value performance do not reflect the possible imposition of Withdrawal Charges and the charge for the EDB I, the Earnings Preservation Benefit, GMIBs, the GWBs or GMAB. Withdrawal charges would reduce performance experience. AVERAGE ANNUAL TOTAL RETURN ("Standard Performance") calculations reflect the Separate Account charge, the additional Separate Account charge for the American Funds Growth, American Funds Growth-Income, American Funds Bond, and American Funds Global Small Capitalization Investment Divisions and the Annual Contract Fee and applicable Withdrawal Charges since the Investment Division inception date, which is the date the corresponding Portfolio or predecessor Portfolio was first offered under the Separate Account that funds the Deferred Annuity. These figures also assume a steady annual rate of return. They assume that combination of optional benefits (including the greater of Annual Step-Up or 5% Annual Increase Death Benefit) that would produce the greatest total Separate Account charge. Performance figures will vary among the various classes of the Deferred Annuities and the Investment Divisions as a result of different Separate Account charges and Withdrawal Charges. We may calculate performance for certain investment strategies including Equity Generator and each asset allocation model of the Index Selector. We calculate the performance as a percentage by presuming a certain dollar value at the beginning of a period and comparing this dollar value with the dollar value based on historical performance at the end of that period. We assume the Separate Account charge reflects the Basic Death Benefit. The information does not assume the charges for the EDB I, the Earnings Preservation Benefit, GMIBs, GMAB or the GWBs. This percentage return assumes that there have been no withdrawals or other unrelated transactions. For purposes of presentation of Non-Standard Performance, we may assume the Deferred Annuities were in existence prior to the inception date of the Investment Divisions in the Separate Account that funds the Deferred Annuity. In these cases, we calculate performance based on the historical performance of the underlying Metropolitan Fund, Met Investors Fund and American Funds(R) Portfolios since the Portfolio inception date. We use the actual accumulation unit or annuity unit data after the inception date. Any performance data that includes all or a portion of the time between the Portfolio inception date and the Investment Division inception date is hypothetical. Hypothetical returns indicate what the performance data would have been if the Deferred Annuity had been introduced as of the Portfolio inception date. 133 We may also present average annual total return calculations which reflect all Separate Account charges and applicable Withdrawal Charges since the Portfolio inception date. We use the actual accumulation unit or annuity unit data after the inception date. Any performance data that includes all or a portion of the time between the Portfolio inception date and the Investment Division inception date is hypothetical. Hypothetical returns indicate what the performance data would have been if the Deferred Annuities had been introduced as of the Portfolio inception date. Past performance is no guarantee of future results. We may demonstrate hypothetical future values of Account Balances over a specified period based on assumed rates of return (which will not exceed 12% and which will include an assumption of 0% as well) for the Portfolios. These presentations reflect the deduction of the Separate Account charge, the Annual Contract Fee, if any, and the weighted average of investment-related charges for all Portfolios to depict investment-related charges. We may demonstrate hypothetical future values of Account Balances for a specific Portfolio based upon the assumed rates of return previously described, the deduction of the Separate Account charge and the Annual Contract Fee, if any, and the investment-related charges for the specific Portfolio to depict investment-related charges. We may demonstrate the hypothetical historical value of each optional benefit for a specified period based on historical net asset values of the Portfolios and the annuity purchase rate, if applicable, either for an individual for whom the illustration is to be produced or based upon certain assumed factors (e.g., male, age 65). These presentations reflect the deduction of the Separate Account charge and the Annual Contract Fee, if any, the investment-related charge and the charge for the optional benefit being illustrated. We may demonstrate hypothetical future values of each optional benefit over a specified period based on assumed rates of return (which will not exceed 12% and which will include an assumption of 0% as well) for the Portfolios, the annuity purchase rate, if applicable, either for an individual for whom the illustration is to be produced or based upon certain assumed factors (e.g., male, age 65). These presentations reflect the deduction of the Separate Account charge and the Annual Contract Fee, if any, the weighted average of investment-related charges for all Portfolios to depict investment-related charges and the charge for the optional benefit being illustrated. We may demonstrate hypothetical values of income payments over a specified period based on historical net asset values of the Portfolios and the applicable annuity purchase rate, either for an individual for whom the illustration is to be produced or based upon certain assumed factors (e.g., male, age 65). These presentations reflect the deduction of the Separate Account charge, the investment-related charge and the Annual Contract Fee, if any. We may demonstrate hypothetical future values of income payments over a specified period based on assumed rates of return (which will not exceed 12% and which will include an assumption of 0% as well) for the Portfolios, the applicable annuity purchase rate, either for an individual for whom the illustration is to be produced or based upon certain assumed factors (e.g., male, age 65). These presentations reflect the deduction of the Separate Account charge, the Annual Contract Fee, if any, and the weighted average of investment-related charges for all Portfolios to depict investment-related charges. Any illustration should not be relied on as a guarantee of future results. CHANGES TO YOUR DEFERRED ANNUITY We have the right to make certain changes to your Deferred Annuity, but only as permitted by law. We make changes when we think they would best serve the interest of annuity Contract owners or would be appropriate in carrying out the purposes of the Deferred Annuity. If the law requires, we will also get your approval and the approval of any appropriate regulatory authorities. Examples of the changes we may make include: .. To operate the Separate Account in any form permitted by law. 134 .. To take any action necessary to comply with or obtain and continue any exemptions under the law (including favorable treatment under the Federal income tax laws) including limiting the number, frequency or types of transfers/reallocations permitted. .. To transfer any assets in an Investment Division to another Investment Division, or to one or more separate accounts, or to our general account, or to add, combine or remove Investment Divisions in the Separate Account. .. To substitute for the Portfolio shares in any Investment Division, the shares of another class of the Metropolitan Fund, the Met Investors Fund or the shares of another investment company or any other investment permitted by law. .. To make any necessary technical changes in the Deferred Annuities in order to conform with any of the above-described actions. If any changes result in a material change in the underlying investments of an Investment Division in which You have a balance or an allocation, we will notify You of the change. You may then make a new choice of Investment Divisions. For Deferred Annuities issued in Pennsylvania, we will ask your approval before making any technical changes. VOTING RIGHTS Based on our current view of applicable law, You have voting interests under your Deferred Annuity concerning Metropolitan Fund, Met Investors Fund or American Funds(R) proposals that are subject to a shareholder vote. Therefore, You are entitled to give us instructions for the number of shares which are deemed attributable to your Deferred Annuity. We will vote the shares of each of the underlying Portfolios held by the Separate Account based on instructions we receive from those having a voting interest in the corresponding Investment Divisions. However, if the law or the interpretation of the law changes, we may decide to exercise the right to vote the Portfolio's shares based on our own judgment. You are entitled to give instructions regarding the votes attributable to your Deferred Annuity in your sole discretion. There are certain circumstances under which we may disregard voting instructions. However, in this event, a summary of our action and the reasons for such action will appear in the next semiannual report. If we do not receive your voting instructions, we will vote your interest in the same proportion as represented by the votes we receive from other investors. The effect of this proportional voting is that a small number of Contract Owners may control the outcome of a vote. Shares of the Metropolitan Fund, the Met Investors Fund or the American Funds(R) that are owned by our general account or by any of our unregistered separate accounts will be voted in the same proportion as the aggregate of: .. The shares for which voting instructions are received, and .. The shares that are voted in proportion to such voting instructions. However, if the law or the interpretation of the law changes, we may decide to exercise the right to vote the Portfolio's shares based on our judgment. WHO SELLS THE DEFERRED ANNUITIES MetLife Investors Distribution Company (''MLIDC'') is the principal underwriter and distributor of the securities offered through this Prospectus. MLIDC, which is our affiliate, also acts as the principal underwriter and distributor of some of the other variable annuity Contracts and variable life insurance policies we and our affiliated companies issue. We reimburse MLIDC for expenses MLIDC incurs in distributing the Deferred Annuities (e.g., commissions payable to the retail broker-dealers who sell the Deferred Annuities, including our affiliated broker-dealers). MLIDC does not retain any fees under the Deferred Annuities. 135 MLIDC's principal executive offices are located at 5 Park Plaza, Suite 1900, Irvine, CA 92614. MLIDC is registered as a broker-dealer with the Securities and Exchange Commission (''SEC'') under the Securities Exchange Act of 1934, as well as the securities commissions in the states in which it operates, and is a member of the Financial Industry Regulatory Authority ("FINRA"). FINRA provides background information about broker-dealers and their registered representatives through FINRA BrokerCheck. You may contact the FINRA BrokerCheck Hotline at 1-800-289-9999, or log on to www.finra.org. An investor brochure that includes information describing FINRA BrokerCheck is available through the Hotline or on-line. Deferred Annuities are sold through MetLife licensed sales representatives who are associated with MetLife Securities, Inc. (''MSI''), our affiliate and a broker-dealer, which is paid compensation for the promotion and sale of the Deferred Annuities. The Deferred Annuities are also sold through the registered representatives of our other affiliated broker-dealers. MSI and our affiliated broker-dealers are registered with the SEC as broker-dealers under the Securities Exchange Act of 1934 and are also members of FINRA. The Deferred Annuities may also be sold through other registered broker-dealers. Deferred Annuities also may be sold through the mail or over the Internet. There is no front-end sales load deducted from purchase payments to pay sales commissions. Distribution costs are recovered through the Separate Account charge. MetLife sales representatives who are not in our MetLife Resources division ("non-MetLife Resources MetLife sales representatives") must meet a minimum level of sales of proprietary products in order to maintain employment with us. Sales representatives in our MetLife Resources division must meet a minimum level of sales production in order to maintain employment with us. Non-MetLife Resources MetLife sales representatives and MetLife Resources sales representatives receive cash payments for the products they sell and service based upon a 'gross dealer concession' model. With respect to the Deferred Annuity, the gross dealer concession ranges from 1.0% to 7.15% of each purchase payment (depending on the class purchased) and, starting as early as the second Contract Year, ranges from 0.00% to 1.00% (depending on the class purchased) of the Account Balance each year the Contract is in force for servicing the Deferred Annuity. Gross dealer concession may also be paid when the Contract is annuitized. The amount of this gross dealer concession payable upon annuitization depends on several factors, including the number of years the Contract has been in force. Compensation to the sales representative is all or part of the gross dealer concession. Compensation to sales representatives in the MetLife Resources division is based upon premiums and purchase payments applied to all products sold and serviced by the representative. Compensation to non-MetLife Resources MetLife sales representatives is determined based upon a formula that recognizes premiums and purchase payments applied to proprietary products sold and serviced by the representative as well as certain premiums and purchase payments applied to non-proprietary products sold by the representative. Proprietary products are those issued by us or our affiliates. Because one of the factors determining the percentage of gross dealer concession that applies to non-MetLife Resources MetLife sales representative's compensation is sales of proprietary products, these sales representatives have an incentive to favor the sale of proprietary products. Because non-MetLife Resources MetLife sales managers' compensation is based on the sales made by the representatives they supervise, these sales managers also have an incentive to favor the sales of proprietary products. Non-MetLife Resources MetLife sales representatives and MetLife Resources sales representatives and their managers and the sales representatives and managers of our affiliates may be eligible for additional cash compensation, such as bonuses, equity awards (such as stock options), training allowances, supplemental salary, financial arrangements, marketing support, medical and other insurance benefits, and retirement benefits and other benefits based primarily on the amount of proprietary products sold. Because additional cash compensation paid to non-MetLife Resources MetLife sales representatives and MetLife Resources sales representatives and their managers and the sales representatives and their managers of our affiliates is based primarily on the sales of proprietary products, non-MetLife Resources MetLife sales representatives and MetLife Resources sales representatives and their managers and the sales representatives and their managers of our affiliates have an incentive to favor the sale of proprietary products. 136 Sales representatives who meet certain productivity, persistency, and length of service standards and/or their managers may be eligible for additional cash compensation. Moreover, managers may be eligible for additional cash compensation based on the sales production of the sales representatives that the manager supervises. Our sales representatives and their managers may be eligible for non-cash compensation incentives, such as conferences, trips, prizes and awards. Other non-cash compensation payments may be made for other services that are not directly related to the sale of products. These payments may include support services in the form of recruitment and training of personnel, production of promotional services and other support services. Other incentives and additional cash compensation provide sales representatives and their managers with an incentive to favor the sale of proprietary products. The business unit responsible for the operation of our distribution system is also paid. MLIDC also pays compensation for the sale of the Deferred Annuities by affiliated broker-dealers. The compensation paid to affiliated broker-dealers for sales of the Deferred Annuities is generally not expected to exceed, on a present value basis, the aggregate amount of total compensation that is paid with respect to sales made through MetLife representatives. (The total compensation includes payments that we make to our business unit that is responsible for the operation of the distribution systems through which the Deferred Annuities are sold.) These firms pay their sales representatives all or a portion of the commissions received for their sales of Deferred Annuities; some firms may retain a portion of commissions. The amount that selling firms pass on to their sales representatives is determined in accordance with their internal compensation programs. Those programs may also include other types of cash and non-cash compensation and other benefits. Sales representatives of affiliated broker-dealers and their managers may be eligible for various cash benefits and non-cash compensation (as described above) that we may provide jointly with affiliated broker-dealers. Because of the receipt of this cash and non-cash compensation, sales representatives and their managers of our affiliated broker-dealers have an incentive to favor the sale of proprietary products. MLIDC may also enter into preferred distribution arrangements with certain affiliated selling firms such as New England Securities Corporation, Walnut Street Securities, Inc. and Tower Square Securities, Inc. These arrangements are sometimes called "shelf space" arrangements. Under these arrangements, MLIDC may pay separate, additional compensation to the broker-dealer firm for services the selling firm provides in connection with the distribution of the Contracts. These services may include providing us with access to the distribution network of the selling firm, the hiring and training of the selling firm's sales personnel, the sponsoring of conferences and seminars by the selling firm, or general marketing services performed by the selling firm. The selling firm may also provide other services or incur other costs in connection with distributing the Contracts. MLIDC also pays compensation for the sale of Contracts by unaffiliated broker-dealers. The compensation paid to unaffiliated broker-dealers for sales of the Deferred Annuities is generally not expected to exceed, on a present value basis, the aggregate amount of total compensation that is paid with respect to sales made through MetLife representatives. (The total compensation includes payments that we make to our business unit that is responsible for the operation of the distribution systems through which the Deferred annuities are sold.) Broker-dealers pay their sales representatives all or a portion of the commissions received for their sales of the Contracts. Some firms may retain a portion of commissions. The amount that the broker-dealer passes on to its sales representatives is determined in accordance with its internal compensation programs. Those programs may also include other types of cash and non-cash compensation and other benefits. We and our affiliates may also provide sales support in the form of training, sponsoring conferences, defraying expenses at vendor meetings, providing promotional literature and similar services. An unaffiliated broker-dealer or sales representative of an unaffiliated broker-dealer may receive different compensation for selling one product over another and/or may be inclined to favor one product provider over another product provider due to differing 137 compensation rates. Ask your sales representative further information about what your sales representative and the broker-dealer for which he or she works may receive in connection with your purchase of a Contract. We pay American Funds Distributors, Inc., principal underwriter for the American Funds Insurance Series, a percentage of Purchase Payments allocated to the following portfolios for the services it provides in marketing the portfolios' shares in connection with the contract: the American Funds Global Small Capitalization Portfolio, the American Funds Growth-Income Portfolio, the American Funds(R) Bond Portfolio, the American Funds(R) Growth Portfolio, the American Funds(R) Moderate Allocation Portfolio, the American Funds(R) Balanced Allocation Portfolio, and the American Funds(R) Growth Allocation Portfolio. FINANCIAL STATEMENTS Our financial statements and the financial statements of the Separate Account have been included in the SAI. YOUR SPOUSE'S RIGHTS If You received your Contract through a qualified retirement plan and your plan is subject to ERISA (the Employee Retirement Income Security Act of 1974) and You are married, the income payments, withdrawal and loan provisions, and methods of payment of the death benefit under your Deferred Annuity may be subject to your spouse's rights. If your benefit is worth $5,000 or less, your plan may provide for distribution of your entire interest in a lump sum without your spouse's consent. For details or advice on how the law applies to your circumstances, consult your tax adviser or attorney. WHEN WE CAN CANCEL YOUR DEFERRED ANNUITY We may cancel your Deferred Annuity only if we do not receive any purchase payments from You for 24 consecutive months (36 consecutive months in New York State) and your Account Balance is less than $2,000. Accordingly, no Deferred Annuity will be terminated due solely to negative investment performance. We will only do so to the extent allowed by law. If we do so, we will return the full Account Balance. Federal tax law may impose additional restrictions on our right to cancel your Traditional IRA, Roth IRA SEP and SIMPLE IRA Deferred Annuity. We will not terminate the Deferred Annuity if it includes an LWG or a GMAB. In addition, we will not terminate any Deferred Annuity that includes a GWB or a GMIB or a guaranteed death benefit if at the time the termination would otherwise occur the Income Base/Benefit Base of the optional benefit, or the guaranteed amount under any death benefit, is greater than the Account Balance. For all other Deferred Annuities, we reserve the right to exercise this termination provision, subject to obtaining any required regulatory approvals. We will not exercise this provision, under Deferred Annuities issued in New York. However, if your plan determines to terminate the Deferred Annuity at a time when You have an Income Base/Benefit Base of the optional benefit or a guaranteed amount under any death benefit that is greater than the Account Balance, You forfeit any Income Base/Benefit Base of the optional benefit or any guaranteed amount under any death benefit You have accrued upon termination of the Deferred Annuity. 138 INCOME TAXES The following information on taxes is a general discussion of the subject. It is not intended as tax advice. The Internal Revenue Code ("Code") is complex and subject to change regularly. Failure to comply with the tax law may result in significant adverse tax consequences and IRS penalties. Consult your own tax adviser about your circumstances, any recent tax developments, and the impact of state income taxation. For purposes of this section, we address Deferred Annuities and income payments under the Deferred Annuities together. You are responsible for determining whether your purchase of a Deferred Annuity, withdrawals, income payments and any other transactions under your Deferred Annuity satisfy applicable tax law. We are not responsible for determining if your employer's plan or arrangement satisfies the requirements of the Code and/or the Employee Retirement Income Security Act of 1974 (ERISA). Where otherwise permitted under the Deferred Annuity, the transfer of ownership of a Deferred Annuity, the designation or change in designation of an Annuitant, payee or other Beneficiary who is not also a Contract Owner, the selection of certain maturity dates, the exchange of a Deferred Annuity, or the receipt of a Deferred Annuity in an exchange, may result in income tax and other tax consequences, including additional withholding, estate tax, gift tax and generation skipping transfer tax, that are not discussed in this Prospectus. The SAI may contain additional information. Please consult your tax adviser. PUERTO RICO TAX CONSIDERATIONS The Puerto Rico Internal Revenue Code of 2011 (the "2011 PR Code") taxes distributions from non-qualified annuity Contracts differently than in the U.S. Distributions that are not in the form of an annuity (including partial surrenders and period certain payments) are treated under the 2011 PR Code first as a return of investment. Therefore, a substantial portion of the amounts distributed generally will be excluded from gross income for Puerto Rico tax purposes until the cumulative amount paid exceeds your tax basis. The amount of income on annuity distributions (payable over your lifetime) is also calculated differently under the 2011 PR Code. Since U.S. source income generated by a Puerto Rico bona fide resident is subject to U.S. income tax and the Internal Revenue Service issued guidance in 2004 which indicated that the income from an annuity Contract issued by a U.S. life insurer would be considered U.S. source income, the timing of recognition of income from an annuity Contract could vary between the two jurisdictions. Although the 2011 PR Code provides a credit against the Puerto Rico income tax for U.S. income taxes paid, an individual may not get full credit because of the timing differences. You should consult with a personal tax adviser regarding the tax consequences of purchasing an annuity Contract and/or any proposed distribution, particularly a partial distribution or election to annuitize. ANNUITY PURCHASES BY NONRESIDENT ALIENS AND FOREIGN CORPORATIONS Purchasers that are not U.S. citizens or residents will generally be subject to U.S. Federal withholding tax on taxable distributions from annuity Contracts at a 30% rate, unless a lower treaty rate applies. In addition, purchasers may be subject to state and/or municipal taxes and taxes that may be imposed by the purchaser's country of citizenship or residence. Prospective purchasers are advised to consult with a qualified tax adviser regarding U.S. state and foreign taxation with respect to purchasing an annuity Contract. MetLife does not expect to incur Federal, state or local income taxes on the earnings or realized capital gains attributable to the Separate Account. However, if we do incur such taxes in the future, we reserve the right to charge amounts allocated to the Separate Account for these taxes. To the extent permitted under Federal tax law, we may claim the benefit of the corporate dividends received deduction and of certain foreign tax credits attributable to taxes paid by certain of the Portfolios to foreign jurisdictions. 139 GENERAL Deferred annuities are a means of setting aside money for future needs- usually retirement. Congress recognizes how important saving for retirement is and has provided special rule in the Code. All IRAs receive tax deferral under the Code. Although there are no additional tax benefits by funding your IRA with an annuity, it does offer You additional insurance benefits such as availability of a guaranteed income for life. Under current Federal income tax law, the taxable portion of distributions and withdrawals from variable annuity Contracts are subject to ordinary income tax and are not eligible for the lower tax rates that apply to long term capital gains and qualifying dividends. WITHDRAWALS When money is withdrawn from your Contract (whether by You or your Beneficiary), the amount treated as taxable income and taxed as ordinary income differs depending on the type of: annuity You purchase (e.g., Non-Qualified or IRA); and payment method or income payment type You elect. If You meet certain requirements, your Roth IRA earnings are free from Federal income taxes. We will withhold a portion of the amount of your withdrawal for income taxes, unless You elect otherwise. The amount we withhold is determined by the Code. WITHDRAWALS BEFORE AGE 59 1/2 Because these products are intended for retirement, if You make a taxable withdrawal before age 59 1/2 You may incur a 10% Federal income tax penalty, in addition to ordinary income taxes. Also, please see the section below titled "Separate Account Charges" for further information regarding withdrawals. As indicated in the chart below, some taxable distributions prior to age 59 1/2 are exempt from the penalty. Some of these exceptions include amounts received:
Type of Contract -------------------- Non Trad. Roth SIMPLE Qualified IRA IRA IRA/1/ SEP --------- ----- ---- ------ --- In a series of substantially equal periodic payments ("SEPP") made annually (or more frequently) for life or life expectancy/2/ x x x x x After You die x x x x x After You become totally disabled (as defined in the Code) x x x x x To pay deductible medical expenses x x x x To pay medical insurance premiums if You are unemployed x x x x For qualified higher education expenses, or x x x x For qualified first time home purchases up to $10,000 x x x x After December 31, 1999 for IRS levies x x x x Certain immediate income annuities providing a series of SEPP made annually (or more frequently) over the specified payment period/2/ x
1 For SIMPLE IRAs the tax penalty for early withdrawals is generally increased to 25% for withdrawals within the first two years of your participation in the SIMPLE IRA. 2 If you own a variable annuity contract with a GMIB and elect to receive distributions in accordance with the SEPP exception, the commencement of income payments under the GMIB if your Contract lapses and there remains any income base may be considered an impermissible modification of the payment stream under certain circumstances. 140 SYSTEMATIC WITHDRAWAL PROGRAM FOR SUBSTANTIALLY EQUAL PERIODIC PAYMENTS (SEPP) AND INCOME OPTIONS If You are considering using the Systematic Withdrawal Program or selecting an income option for the purpose of meeting the SEPP exception to the 10% tax penalty, consult with your tax adviser. It is not clear whether certain withdrawals or income payments under a variable annuity will satisfy the SEPP exception. If You receive systematic payments that You intend to qualify for the SEPP exception, any modifications (except due to death or disability) to your payment before age 59 1/2 or within five years after beginning SEPP payments, whichever is later, will result in the retroactive imposition of the 10% penalty with interest. Such modifications may include additional purchase payments or withdrawals (including tax-free transfers or rollovers of income payments) from the Deferred Annuity. SEPARATE ACCOUNT CHARGES It is conceivable that the charges for certain benefits such as any of the guaranteed death benefits (including but not limited to the Earnings Preservation Benefit) and certain living benefits (e.g. GWB and the GMIB) could be considered to be taxable each year as deemed distributions from the Contract to pay for non-annuity benefits. We currently treat these charges as an intrinsic part of the annuity Contract and do not report these as taxable income. However, it is possible that this may change in the future if we determine that this is required by the IRS. If so, the charge could also be subject to a 10% Federal income tax penalty if the taxpayer is under age 59 1/2. NON-QUALIFIED ANNUITIES .. Purchase payments to Non-Qualified Contracts are on an "after-tax" basis, so You only pay income taxes on your earnings. Generally, these earnings are taxed when received from the Contract. .. Under the Code, withdrawals need not be made by a particular age. However, it is possible that the Internal Revenue Service may determine that the Deferred Annuity must be surrendered or income payments must commence by a certain age (e.g., 85 or older) or your Contract may require that You commence payments by a certain age. .. Your Non-Qualified Contract may be exchanged for another Non-Qualified annuity or a qualified long term care Contract under Section 1035 without paying income taxes if certain Code requirements are met. Once income payments have commenced, You may not be able to transfer withdrawals to another non-qualified annuity Contract or a qualified long term care Contract in a tax-free Section 1035 exchange. .. Pursuant to IRS guidance, a direct transfer of less than the entire account value from one non-qualified annuity to another non-qualified annuity (a "partial exchange") may be recharacterized by the IRS if there is a withdrawal or surrender within the 180-day period following the partial exchange. Certain exceptions may apply. It is not clear whether this guidance applies to a partial exchange involving qualified long-term care contracts. Consult your own independent tax advisor prior to a partial exchange. .. Consult your tax adviser prior to changing the Annuitant or prior to changing the date You determine to commence income payments if permitted under the terms of your Contract. It is conceivable that the IRS could consider such actions to be a taxable exchange of annuity Contracts. .. Where otherwise permitted under the Deferred Annuity, pledges, assignments and other types of transfers of all or a portion of your Account Balance generally result in the immediate taxation of the gain in your Deferred Annuity. This rule may not apply to certain transfers between spouses. .. Deferred annuities issued after October 21, 1988 by the same insurance company or affiliates to an owner in the same year are combined for tax purposes. As a result, a greater portion of your withdrawals may be considered taxable income than You would otherwise expect. 141 .. When a non-natural person owns a Non-Qualified Contract, the annuity will generally not be treated as an annuity for tax purposes and thus loses the benefit of tax deferral. Corporations and certain other entities are generally considered non-natural persons. However, an annuity owned by a non-natural person as agent for an individual will be treated as an annuity for tax purposes. .. In those limited situations where the annuity is beneficially owned by a non-natural person and the annuity qualifies as such for Federal income tax purposes, the entity may have a limited ability to deduct interest expenses. Certain income annuities under Section 72(u)(4) of the Code purchased with a single payment consisting of substantially equal periodic payments with an annuity starting date within 12 months of purchase may also be considered annuities for Federal income tax purposes where owned by a non- natural person. PURCHASE PAYMENTS Although the Code does not limit the amount of your purchase payments, your Contract may limit them. PARTIAL AND FULL WITHDRAWALS Generally, when You (or your Beneficiary in the case of a death benefit) make a partial withdrawal from your Non-Qualified annuity, the Code treats such a partial withdrawal as: first coming from earnings (and thus subject to income tax); and then from your purchase payments (which are not subject to income tax). This rule does not apply to payments made pursuant to an income pay-out option under your Contract. In the case of a full withdrawal, the withdrawn amounts are treated as first coming from your non-taxable return of purchase payment and then from a taxable payment of earnings. INCOME PAYMENTS Income payments are subject to an "exclusion ratio" or "excludable amount" which determines how much of each payment is treated as: a non-taxable return of your purchase payments and a taxable payment of earnings. Income payments and amounts received on the exercise of a withdrawal or partial withdrawal option under your Non-Qualified Annuity may not be transferred in a tax-free exchange into another annuity Contract or qualified long term care Contract. In accordance with our procedures, such amounts will instead be taxable under the rules for income payment or withdrawals, whichever is applicable. Generally, once the total amount treated as a return of your purchase payment equals the amount of such purchase payment (reduced by any refund or guarantee feature as required by Federal tax law), all remaining income payments are fully taxable. If You die before the purchase payment is returned, the unreturned amount may be deductible on your final income tax return or deductible by your Beneficiary if income payments continue after your death. We will tell You what your purchase payment was and to what extent an income payment includes a non-taxable return of your purchase payment. Starting in 2011, if your Contract allows and You elect to apply less than the entire Account Value of your Contract to a pay-out option provided under the Contract ("partial annuitization"), an exclusion ratio will apply to the annuity payments You receive, provided the payout period is for 10 years or more, or for the life of one or more individuals. Your after-tax purchase payments in the Contract will be allocated pro rata between the annunitized portion of the Contract and the portion that remains deferred. Consult your tax adviser before You partially annuitize your Contract. The IRS has not specifically approved the use of a method to calculate an excludable amount with respect to a variable income annuity where transfers/ reallocations are permitted between Investment Divisions or from an Investment Division into a fixed option. 142 We generally will tell You how much of each income payment is a return of non-taxable purchase payments. We will determine such excludable amount for each income payment under the Contract as a whole by using the rules applicable to variable income payments in general (I.E., by dividing your after-tax purchase price, as adjusted for any refund or guarantee feature by the number of expected income payments from the appropriate IRS table). However, it is possible that the IRS could conclude that the taxable portion of income payments under a Non-Qualified Deferred Annuity is an amount greater (or lesser) than the taxable amount determined by us and reported by us to You and the IRS. Generally, once the total amount treated as a non-taxable return of your purchase payment equals your purchase payment, then all remaining payments are fully taxable. We will withhold a portion of the taxable amount of your income payment for income taxes, unless You elect otherwise. The amount we withhold is determined by the Code. If the amount of income payments received in any calendar year is less than the excludable amount applicable to the year, the excess is not allowable as a deduction. However, You may generally elect the year in which to begin to apply this excess ratably to increase the excludable amount attributable to future years. Consult your tax adviser as to the details and consequences of making such election. Also, consult your tax adviser as to the tax treatment of any unrecovered after-tax cost in the year that the Contract terminates. DEATH BENEFITS The death benefit under an annuity is generally taxable to the recipient in the same manner as if paid to the Contract Owner (under the rules for withdrawals or income payments, whichever is applicable). If You die before the annuity starting date, as defined under Treasury Regulations, payments must begin for a period and in a manner allowed by the Code (and any regulations thereunder) to your Beneficiary within one year of the date of your death or, if not, payment of your entire interest in the Contract must be made within five years of the date of your death. If your spouse is your Beneficiary, he or she may elect to continue as owner of the Contract. Under federal tax rules a same-sex spouse is treated as a non-spouse Beneficiary. If You die on or after the annuity starting date, as defined under Treasury Regulations, payments must continue to be made at least as rapidly as before your death in accordance with the income type selected. If You die before all purchase payments are returned, the unreturned amount may be deductible on your final income tax return or excluded from income by your Beneficiary if income payments continue after your death. In the case of joint Contract owners, the above rules will be applied on the death of any Contract Owner. Where the Contract Owner is not a natural person, these rules will be applied on the death of any Annuitant (or on the change in Annuitant, if permitted under the Contract). Naming a non-natural person, such as a trust or estate, as a Beneficiary under the Contract will generally eliminate the Beneficiary's ability to stretch or a spousal Beneficiary's ability to continue the Contract and the living and/or death benefits. If death benefit payments are being made to your designated Beneficiary and he/she dies prior to receiving the entire remaining interest in the Contract, such remaining interest will be paid out at least as rapidly as under the distribution method being used at the time of your designated Beneficiary's death. After your death, if your designated Beneficiary dies prior to electing a method for the payment of the death benefit, the remaining interest in the Contract will be paid out in a lump sum. In all cases, such payments will be made within five years of the date of your death. 143 NEW MEDICARE TAX Beginning January 1, 2013, a new 3.8% Medicare contribution tax will be imposed on the "net investment income" of certain individuals whose income exceeds certain threshold amounts (Health Care and Education Reconciliation Act of 2010). For purposes of this tax, net investment income will include income from non-qualified annuity contracts (as well as interest, dividends and certain other items). The new 3.8% Medicare tax is imposed on the lesser of: 1. the taxpayer's "net investment income," (from non-qualified annuities, interest, dividends, etc., offset by specified allowable deductions), or 2. the taxpayer's modified adjusted gross income in excess of a specified income threshold ($250,000 for married couples filing jointly, $125,000 for married couples filing separately, and $200,000 otherwise). "Net investment income" in Item 1 does not include distributions from tax-qualified plans (i.e., IRAs, Roth IRAs and qualified arrangements described in Code Sections 401(a), 403(a), 403(b), or 457(b)), but such income will increase modified adjusted gross income in Item 2. The IRS has issued proposed guidance regarding this income surtax. You should consult your tax adviser regarding the applicability of this tax to income You would receive under this annuity Contract. GUARANTEED WITHDRAWAL BENEFITS If You have purchased the GWB I, Enhanced GWB or LWG, where otherwise made available, note the following: The tax treatment of withdrawals under such a benefit is uncertain. It is conceivable that the amount of potential gain could be determined based on the remaining amounts guaranteed to be available for withdrawal at the time of the withdrawal if greater than the Account Balance (prior to Withdrawal Charges). This could result in a greater amount of taxable income in certain cases. In general, at the present time, MetLife intends to report such withdrawals using the Account Balance rather than the remaining benefit to determine gain. However, in cases where the maximum permitted withdrawal in any year under any version of the Guaranteed Withdrawal Benefit exceeds the Account Balance, the portion of the withdrawal treated as taxable gain (not to exceed the amount of the withdrawal) should be measured as the difference between the maximum permitted withdrawal amount under the benefit and the remaining after-tax basis immediately preceding the withdrawal. In the event that the Account Balance goes to zero, and either the Remaining Guaranteed Withdrawal Amount is paid out in fixed installments or the Annual Benefit Payment is paid for life, we will treat such payments as income annuity payments under the tax law and allow recovery of any remaining basis ratably over the expected number of payments. MetLife reserves the right to change its tax reporting practices where we determine that it is not in accordance with IRS guidance (whether formal or informal). DIVERSIFICATION In order for your Non-Qualified Deferred Annuity to be considered an annuity Contract for Federal income tax purposes, we must comply with certain diversification standards with respect to the investments underlying the Contract. We believe that we satisfy and will continue to satisfy these diversification standards. Inadvertent failure to meet these standards may be correctable. Failure to meet these standards would result in immediate taxation to Contract owners of gains under their Contract. INVESTOR CONTROL In certain circumstances, owners of variable annuity Contracts have been considered to be the owners of the assets of the underlying Separate Account for Federal Income tax purposes due to their ability to exercise investment control over 144 those assets. When this is the case, the Contract owners have been currently taxed on income and gains attributable to the variable account assets. There is little guidance in this area, and some features of the Contract, such as the number of funds available and the flexibility of the Contract Owner to allocate premium payments and transfer amounts among the funding options have not been addressed in public rulings. While we believe that the Contract does not give the Contract owner investment control over Separate Account assets, we reserve the right to modify the Contract as necessary to prevent a Contract Owner from being treated as the owner of the Separate Account assets supporting the Contract. CHANGES TO TAX RULES AND INTERPRETATIONS Changes in applicable tax rules and interpretations can adversely affect the tax treatment of your Contract. These changes may take effect retroactively. Examples of changes that could create adverse tax consequences include: .. Possible taxation of transfers/reallocations between Investment Divisions or transfers/reallocations from an Investment Division to the Fixed Account or Fixed Income Option. .. Possible taxation as if You were the Contract Owner of your portion of the Separate Account's assets. .. Possible limits on the number of funding options available or the frequency of transfers/reallocations among them. We reserve the right to amend your Deferred Annuity where necessary to maintain its status as a variable annuity Contract under Federal tax law and to protect You and other Contract owners in the Investment Divisions from adverse tax consequences. INDIVIDUAL RETIREMENT ANNUITIES (TRADITIONAL IRA, ROTH IRA, SIMPLE IRA AND SEPS) The sale of a Contract for use with an IRA may be subject to special disclosure requirements of the IRS. Purchasers of a Contract for use with IRAs will be provided with supplemental information required by the IRS or other appropriate agency. A Contract issued in connection with an IRA may be amended as necessary to conform to the requirements of the Code. IRA Contracts may not invest in life insurance. The Deferred Annuity offers death benefits and optional benefits that in some cases may exceed the greater of the purchase payments or the Account Balance which could conceivably be characterized as life insurance. The IRS has approved the form of the Traditional and SIMPLE IRA endorsement for use with the Contract and certain riders, including riders providing for death benefits in excess of premiums paid. Please be aware that the IRA Contract issued to You may differ from the form of the Traditional IRA approved by the IRS because of several factors such as different riders and state insurance department requirements. The Roth IRA tax endorsement is based on the IRS model form 5305-RB (rev 0302). Consult your tax adviser prior to the purchase of the Contract as a Traditional IRA, Roth IRA, SIMPLE IRA or SEP. Generally, except for Roth IRAs, IRAs can accept deductible (or pre-tax) purchase payments. Deductible or pre-tax purchase payments will be taxed when distributed from the Contract. You must be both the Contract Owner and the Annuitant under the Contract. Your IRA annuity is not forfeitable and You may not transfer, assign or pledge it to someone else. You are not permitted to borrow from the Contract. You can transfer your IRA proceeds to a similar IRA, certain eligible retirement plans of an employer (or a SIMPLE IRA to a Traditional IRA or eligible retirement plan after two years of participation in your employer's SIMPLE IRA plan) without incurring Federal income taxes if certain conditions are satisfied. 145 TRADITIONAL IRA ANNUITIES PURCHASE PAYMENTS Purchase payments (except for permissible rollovers and direct transfers) are generally not permitted after the calendar year in which You attain age 69 1/2. Except for permissible rollovers and direct transfers, purchase payments to Traditional and Roth IRAs for individuals under age 50 are limited in the aggregate to the lesser of 100% of compensation or the deductible amount established each year under the Code. A purchase payment up to the deductible amount can also be made for a non-working spouse provided the couple's compensation is at least equal to their aggregate contributions. See the SAI for additional information. Also, see IRS Publication 590 available at www.irs.gov. .. Individuals age 50 or older can make an additional "catch-up" purchase payment (assuming the individual has sufficient compensation). .. If You or your spouse are an active participant in a retirement plan of an employer, your deductible contributions may be limited. .. Purchase payments in excess of these amounts may be subject to a penalty tax. .. If contributions are being made under a SEP or a SAR-SEP plan of your employer, additional amounts may be contributed as permitted by the Code and the terms of the employer's plan. .. These age and dollar limits do not apply to tax-free rollovers or transfers from other IRAs or other eligible retirement plans. .. If certain conditions are met, You can change your Traditional IRA purchase payment to a Roth IRA before You file your income tax return (including filing extensions). WITHDRAWALS AND INCOME PAYMENTS Withdrawals (other than tax free transfers or rollovers to other individual retirement arrangements or eligible retirement plans) and income payments are included in income except for the portion that represents a return of non- deductible purchase payments. This portion is generally determined based on a ratio of all non-deductible purchase payments to the total values of all your Traditional IRAs. We will withhold a portion of the taxable amount of your withdrawal for income taxes, unless You elect otherwise. The amount we withhold is determined by the Code. Also see general section titled "Withdrawals" above. MINIMUM DISTRIBUTION REQUIREMENTS FOR IRAS Generally, for IRAs (see "Roth IRA Annuities"), You must begin receiving withdrawals by April 1 of the calendar year following the year in which You reach age 70 1/2. Complex rules apply to the calculation of these withdrawals. A tax penalty of 50% applies to withdrawals which should have been taken but were not. It is not clear whether income payments under a variable annuity will satisfy these rules. Consult your tax adviser prior to choosing a pay-out option. For after-death required minimum distributions ("RMD"), the five year rule is applied without regard to calendar year 2009 due to the 2009 RMD waiver. For instance, for a Contract owner who died in 2007, the five year period would end in 2013 instead of 2012. The RMD rules are complex, so consult with your tax adviser because the application of these rules to your particular circumstances may have been impacted by the 2009 RMD waiver. In general the amount of required minimum distribution (including death benefit distributions discussed below) must be calculated separately with respect to each IRA, but then the aggregate amount of the required distribution may be generally taken under the tax law for the IRAs from any one or more of the taxpayer's IRAs. 146 In general, Income Tax regulations permit income payments to increase based not only with respect to the investment experience of the underlying funds but also with respect to actuarial gains. Additionally, these regulations permit payments under income annuities to increase due to a full withdrawal or to a partial withdrawal under certain circumstances. The regulations also require that the value of all benefits under a deferred annuity including death benefits in excess of cash value must be added to the account value in computing the amount required to be distributed over the applicable period. The new rules are not entirely clear and You should consult your own tax advisers as to how these rules affect your own Contract. We will provide You with additional information regarding the amount that is subject to minimum distribution under this new rule. If You intend to receive your minimum distributions which are payable over the joint lives of You and a Beneficiary who is not your spouse (or over a period not exceeding the joint life expectancy of You and your non-spousal Beneficiary), be advised that Federal tax rules may require that payments be made over a shorter period or may require that payments to the Beneficiary be reduced after your death to meet the minimum distribution incidental benefit rules and avoid the 50% excise tax. Under Federal tax rules, a same-sex spouse is treated as a non-spouse Beneficiary. Consult your tax adviser. DEATH BENEFITS The death benefit is taxable to the recipient in the same manner as if paid to the Contract Owner (under the rules for withdrawals or income payments, whichever is applicable). Generally, if You die before RMD withdrawals have begun, we must make payment of your entire interest by December 31st of the year that is the fifth anniversary of your death or begin making payments over a period and in a manner allowed by the Code to your Beneficiary by December 31st of the year after your death. Consult your tax adviser because the application of these rules to your particular circumstances may have been impacted by the 2009 RMD waiver (see "Minimum Distribution Requirements for IRAs" section for additional information). If your spouse is your Beneficiary, and your Contract permits, your spouse may delay the start of these payments until December 31 of the year in which You would have reached age 70 1/2. Alternatively, if your spouse is your Beneficiary, he or she may elect to continue as "Contract Owner" of the Contract. Naming a non-natural person, such as a trust or estate, as a Beneficiary under the Contract will generally eliminate the Beneficiary's ability to stretch or a spousal Beneficiary's ability to continue the Contract and the living and/or death benefits. Under federal tax rules, a same-sex spouse is treated as a non-spouse beneficiary. If You die after required distributions begin, payments of your entire remaining interest must be made in a manner and over a period as provided under the Code (and any applicable regulations). If the Contract is issued in your name after your death for the benefit of your designated Beneficiary with a purchase payment which is directly transferred to the Contract from another IRA account or IRA annuity You owned, the death benefit must continue to be distributed to your Beneficiary's Beneficiary in a manner at least as rapidly as the method of distribution in effect at the time of your Beneficiary's death. SIMPLE IRAS AND SEPS ANNUITIES The Code provides for certain contribution limitations and eligibility requirements under SIMPLE IRAs and SEP arrangements. The minimum distribution requirements are generally the same as Traditional IRAs. There are some 147 differences in the contribution limits and the tax treatment of certain premature distribution rules, transfers and rollovers. Some of these differences are explained below. Please see the SAI for additional information on contribution limits. ROLLOVERS INTO YOUR SIMPLE IRA. You may make rollovers and direct transfers into your SIMPLE IRA annuity Contract from another SIMPLE IRA annuity Contract or account. No other contributions, rollovers or transfers can be made to your SIMPLE IRA. You may not make Traditional IRA contributions or Roth IRA contributions to your SIMPLE IRA. You may not make eligible rollover contributions from other types of qualified retirement plans to your SIMPLE IRA. ROLLOVERS FROM YOUR SIMPLE IRA. Tax-free 60-day rollovers and direct transfers from a SIMPLE IRA can only be made to another SIMPLE IRA annuity or account during the first two years that You participate in the SIMPLE IRA plan. After this two year period, tax-free 60-day rollovers and transfers may be made from your SIMPLE IRA into a Traditional IRA annuity or account, as well as into another SIMPLE IRA. ROTH IRA ANNUITIES GENERAL Roth IRAs are different from other IRAs because You have the opportunity to enjoy tax-free earnings. However, You can only make after-tax purchase payments to a Roth IRA. PURCHASE PAYMENTS Roth IRA purchase payments for individuals under age 50 are non-deductible and are limited, in a manner similar to IRAs, to the lesser of 100% of compensation or the annual deductible IRA amount. This limit includes contributions to all your Traditional and Roth IRAs for the year. Individuals age 50 or older can make an additional "catch- up" purchase payment each year (assuming the individual has sufficient compensation). You may contribute up to the annual purchase payment limit if your modified adjusted gross income does not exceed certain limits. Purchase payments are phased out depending on your modified adjusted gross income and your filing status. See the SAI for additional information. Also, see IRS Publication 590 available at www. irs.gov. Further, with respect to Traditional IRA amounts which were converted to a Roth IRA, such conversion must have occurred at least five years prior to purchase of this Contract. Consult your independent tax adviser. Annual purchase payments limits do not apply to a rollover from a Roth IRA to another Roth IRA or a conversion from a Traditional IRA to a Roth IRA. You can contribute to a Roth IRA after age 70 1/2. If certain conditions are met, You can change your Roth IRA contribution to a Traditional IRA before You file your income return (including filing extensions). Beginning in 2008, Roth IRAs may also accept a rollover from other types of eligible retirement plans (e.g., 403(b), 401(a) and 457(b) plans of a state or local government employer) if Code requirements are met. The taxable portion of the proceeds are subject to income tax in the year of the rollover distribution occurs, unless it is from a designated Roth account. If You exceed the purchase payment limits You may be subject to a tax penalty. 148 WITHDRAWALS Generally, withdrawals of earnings from Roth IRAs are free from Federal Income tax if they meet the following two requirements: .. The withdrawal is made at least five taxable years after your first purchase payment to a Roth IRA; and .. The withdrawal is made: on or after the date You reach age 59 1/2; upon your death or disability; or for a qualified first-time home purchase (up to $10,000). Withdrawals of earnings which do not meet these requirements are taxable and a 10% Federal Income tax penalty may apply if made before age 59 1/2. See the withdrawals chart above in the section titled "Withdrawals Before Age 59 1/2". Consult your tax adviser to determine if an exception applies. Withdrawals from a Roth IRA are made first from purchase payments and then from earnings. Generally, You do not pay income tax on withdrawals of purchase payments. However, withdrawals of the taxable amounts converted from a non-Roth IRA or eligible retirement plan prior to age 59 1/2 will be subject to the 10% Federal Income tax penalty (unless You meet an exception) if made within 5 taxable years of such conversion. See the withdrawals chart above in the section titled "Withdrawals Before Age 59 1/2". The order in which money is withdrawn from a Roth IRA is as follows (all Roth IRAs owned by a taxpayer are combined for withdrawal purposes): .. The first money withdrawn is any annual (non-conversion/rollover) contributions to the Roth IRA and rollovers of after-tax amounts from other Roth plans. These are received tax and penalty free. .. The next money withdrawn is from conversion/rollover contributions from a non-Roth IRA or an eligible retirement plan (other than a designated Roth account), on a first-in, first-out basis. For these purposes, distributions are treated as coming first from the portion of the conversion/rollover contribution that was subject to income tax as a result of the conversion. As previously discussed, depending upon when it occurs, withdrawals of the taxable amounts converted may be subject to a penalty tax, or result in the acceleration of inclusion of income. .. The next money withdrawn is from earnings in the Roth IRA. This is received tax-free if it meets the requirements previously discussed; otherwise it is subject to Federal income tax and an additional 10% Federal Income tax penalty may apply if You are under age 59 1/2. .. We may be required to withhold a portion of your withdrawal for income taxes, unless You elect otherwise. The amount will be determined by the Code. CONVERSION You may convert/rollover a Traditional IRA or an eligible retirement plan (other than a designated Roth account) to a Roth IRA. Except to the extent You have non-deductible contributions, the amount converted from an existing IRA or eligible retirement plan (other than a designated Roth account) into a Roth IRA is taxable. Generally, the 10% withdrawal penalty does not apply to conversions/rollovers. (See exception discussed previously.) For conversions occurring in 2010, the taxable amount distributed (or treated as distributed) in 2010 and then converted into a Roth IRA may be included in your taxable income ratably over 2011 and 2012 and does not have to be included in your taxable income in 2010. 149 Caution: The IRS issued guidance in 2005 requiring that the taxable amount converted be based on the fair market value of the entire annuity Contract being converted or redesignated into a Roth IRA. Such fair market value, in general, is to be determined by taking into account the value of all benefits (both living benefits and death benefits) in addition to the account balance; as well as adding back certain loads and charges incurred during the prior 12 month period. Your Contract may include such benefits, and applicable charges. Accordingly, taxpayers considering redesignating a Traditional IRA annuity into a Roth IRA annuity should consult their own tax adviser prior to converting. The taxable amount may exceed the account value at date of conversion. Amounts converted from a Traditional IRA or an eligible retirement plan (other than a designated Roth account) to a Roth IRA generally will be subject to income tax withholding. The amount withheld is determined by the Code. If You mistakenly convert or otherwise wish to change your Roth IRA contribution to a Traditional IRA contribution, the tax law allows You to reverse your conversion provided You do so before You file your tax return for the year of the contribution and if certain conditions are met. REQUIRED DISTRIBUTIONS RMD rules that apply to other types of IRAs while You are alive do not apply to Roth IRAs. However, in general, the same rules with respect to minimum distributions required to be made to a Beneficiary after your death under Traditional IRAs do apply to Roth IRAs. Consult your tax adviser because the application of these rules to your particular circumstances may have been impacted by the 2009 RMD waiver. Note that where payments under a Roth Income Annuity have begun prior to your death the remaining interest in the Contract must be paid to your designated Beneficiary by the end of the fifth year following your death or over a period no longer than the Beneficiary's remaining life expectancy at the time You die. DEATH BENEFITS Generally, when You die we must make payment of your entire interest by the December 31st of the year that is the fifth anniversary of your death or begin making payments over a period and in a manner allowed by the Code to your Beneficiary by December 31st of the year after your death. If your spouse is your Beneficiary, your spouse may delay the start of required payments until December 31st of the year in which You would have reached age 70 1/2. If your spouse is your Beneficiary, he or she may elect to continue as "Contract Owner" of the Contract. Naming a non-natural person, such as a trust or estate, as a Beneficiary under the Contract will generally eliminate the Beneficiary's ability to stretch or a spousal Beneficiary's ability to continue the Contract and the living and/or death benefits. 150 LEGAL PROCEEDINGS In the ordinary course of business, MetLife, similar to other life insurance companies, is involved in lawsuits (including class action lawsuits), arbitrations and other legal proceedings. Also, from time to time, state and Federal regulators or other officials conduct formal and informal examinations or undertake other actions dealing with various aspects of the financial services and insurance industries. In some legal proceedings involving insurers, substantial damages have been sought and/or material settlement payments have been made. It is not possible to predict with certainty the ultimate outcome of any pending legal proceeding or regulatory action. However, MetLife does not believe any such action or proceeding will have a material adverse effect upon the Separate Account or upon the ability of MLIDC to perform its Contract with the Separate Account or of MetLife to meet its obligations under the Contracts. 151 TABLE OF CONTENTS FOR THE STATEMENT OF ADDITIONAL INFORMATION
PAGE INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM.................... 2 PRINCIPAL UNDERWRITER............................................ 2 DISTRIBUTION AND PRINCIPAL UNDERWRITER AGREEMENT................. 2 EXPERIENCE FACTOR................................................ 2 VARIABLE INCOME PAYMENTS......................................... 3 CALCULATING THE ANNUITY UNIT VALUE............................... 5 ADVERTISEMENT OF THE SEPARATE ACCOUNT............................ 6 VOTING RIGHTS.................................................... 9 ERISA............................................................ 10 TAXES--SIMPLE IRAS ELIGIBILITY AND CONTRIBUTIONS................. 11 WITHDRAWALS...................................................... 11 ACCUMULATION UNIT VALUES TABLES.................................. 12 FINANCIAL STATEMENTS OF THE SEPARATE ACCOUNT..................... 1 FINANCIAL STATEMENTS OF METLIFE.................................. F-1
152 APPENDIX A PREMIUM TAX TABLE If You are a resident of one of the following jurisdictions, the percentage amount listed by that jurisdiction is the premium tax rate applicable to your annuity.
Non-Qualified IRA and SEP Annuities Annuities(1) ------------- ------------ California........ 2.35% 0.5% Florida (2)....... 1.0% 1.0% Maine............. 2.0% -- Nevada............ 3.5% -- Puerto Rico (3)... 1.0% 1.0% South Dakota (4).. 1.25% -- West Virginia..... 1.0% 1.0% Wyoming........... 1.0% --
--- /1/Premium tax rates applicable to IRA and SEP annuities purchased for use in connection with individual retirement trust or custodial accounts meeting the requirements of Section 408(a) of the Code are included under the column heading "IRA and SEP Annuities." /2/Annuity premiums are exempt from taxation provided the tax savings are passed back to the Contract holders. Otherwise, they are taxable at 1%. /3/We will not deduct premium taxes paid by us to Puerto Rico from purchase payments, account balances, withdrawals, death benefits or income payments. /4/Special rate applies for large case annuity policies. Rate is 8/100 of 1% for that portion of the annuity considerations received on a Contract exceeding $500,000 annually. Special rate on large case policies is not subject to retaliation. 153 APPENDIX B ACCUMULATION UNIT VALUES FOR EACH INVESTMENT DIVISION These tables show fluctuations in the Accumulation Unit Values for two of the possible mixes offered within the Deferred Annuity for each Investment Division from year end to year end. A different share class of the Metropolitan Fund and Met Investors Fund Portfolios was available prior to May 1, 2004. Lower Separate Account charges for the American Funds(R) Investment Divisions were in effect prior to May 1, 2004. The accumulation unit values prior to May 1, 2004 reflect the lower 12b-1 Plan fees for the Metropolitan Fund and the Met Investors Fund Portfolios and lower Separate Account charges for the American Funds(R) Investment Divisions then in effect. Values after April 30, 2004 reflect the higher 12b-1 Plan fees and Separate Account charges currently in place. In addition, different charges for certain optional benefits were in effect prior to May 1, 2003. Therefore, the accumulation unit values prior to May 1, 2003, for Deferred Annuities with these optional benefits reflect the lower charges then in effect. Values after April 30, 2003, reflect the higher charges currently in place. A lower charge for the GMIB when it was purchased with either of the optional death benefits was in effect from May 1, 2004 through April 30, 2005. A lower charge for the GMIB Plus I was in effect prior to February 26, 2007. Lower charges for the GMIB Plus II, EDB I and LWG II were in effect prior to February 24, 2009 and/or May 4, 2009. These lower charges are not reflected in the tables below. The information in these tables has been derived from the Separate Account's full financial statements or other reports (such as the annual report). The first table shows the Deferred Annuity mix that bears the total highest charge, and the second table shows the Deferred Annuity mix that bears the total lowest charge. The mix with the total highest charge has these features: Bonus Class, the Greater of Annual Step-Up or 5% Annual Increase Death Benefit, Earnings Preservation Benefit. Charges for the EDB I, the optional GMIBs, the optional GWBs, and the optional GMAB are made by canceling accumulation units and, therefore, these charges are not reflected in the Accumulation Unit Value. However, purchasing the EDB I in lieu of the optional Greater of Annual Step-Up or 5% Annual Increase Death Benefit and the optional GMIB Plus II with the Earnings Preservation Benefit will result in a higher overall charge. The mix with the total lowest charge has these features: B Class and no optional benefit. All other possible mixes for each Investment Division within the Deferred Annuity appear in the SAI, which is available upon request without charge by calling 1-800-638-7732. PREFERENCE PLUS SELECT DEFERRED ANNUITIES HIGHEST POSSIBLE MIX 2.30 SEPARATE ACCOUNT CHARGE
Beginning of Number of Year End of Year Accumulation Accumulation Accumulation Units End of Investment Division Year Unit Value Unit Value Year ------------------- ---- ------------ ------------ ------------ AllianceBernstein Global Dynamic Allocation Investment Division (Class B) (4/30/2012)............................................ 2012 $10.12 $10.40 0.00 American Funds(R) Balanced Allocation Investment Division (Class C) (4/28/2008)................................................... 2008 10.00 6.96 412.25 2009 6.96 8.80 11,907.08 2010 8.80 9.65 6,042.41 2011 9.65 9.23 11,987.26 2012 9.23 10.24 11,987.26 American Funds Bond Investment Division+ (Class 2) (5/1/2006)...... 2006 13.48 14.05 2,260.99 2007 14.05 14.17 9,257.00 2008 14.17 12.53 7,101.80 2009 12.53 13.77 7,029.29 2010 13.77 14.30 4.73 2011 14.30 14.81 0.00 2012 14.81 15.23 0.00
154
Beginning of Number of Year End of Year Accumulation Accumulation Accumulation Units End of Investment Division Year Unit Value Unit Value Year ------------------- ---- ------------ ------------ ------------ American Funds Global Small Capitalization Investment Division+ (Class 2)........................................................ 2003 $ 10.29 $ 15.42 0.00 2004 15.42 18.19 13,630.80 2005 18.19 22.25 19,596.91 2006 22.25 26.94 24,763.77 2007 26.94 31.92 28,149.24 2008 31.92 14.47 23,694.86 2009 14.47 22.78 22,122.14 2010 22.78 27.21 6,180.50 2011 27.21 21.47 0.00 2012 21.47 24.76 0.00 American Funds(R) Growth Allocation Investment Division (Class C) (4/28/2008)...................................................... 2008 9.99 6.32 111,993.18 2009 6.32 8.27 114,287.06 2010 8.27 9.18 96,059.48 2011 9.18 8.54 74,611.13 2012 8.54 9.70 3,236.88 American Funds Growth Investment Division+ (Class 2)............... 2003 70.14 93.63 0.00 2004 93.63 102.78 11,491.63 2005 102.78 116.54 11,889.33 2006 116.54 125.35 12,469.33 2007 125.35 137.40 11,555.27 2008 137.40 75.11 10,853.89 2009 75.11 102.18 8,780.01 2010 102.18 118.33 1,750.10 2011 118.33 110.54 0.00 2012 110.54 127.14 0.00 American Funds Growth-Income Investment Division+ (Class 2)........ 2003 56.39 72.87 0.00 2004 72.87 78.48 11,225.16 2005 78.48 81.05 10,819.00 2006 81.05 91.12 13,217.06 2007 91.12 93.39 13,454.75 2008 93.39 56.63 10,951.54 2009 56.63 72.52 10,577.71 2010 72.52 78.85 2,314.64 2011 78.85 75.54 0.00 2012 75.54 86.59 0.00 American Funds(R) Moderate Allocation Investment Division (Class C) (4/28/2008)................................................... 2008 10.01 7.63 11,468.33 2009 7.63 9.21 32,417.74 2010 9.21 9.89 24,077.26 2011 9.89 9.68 2,044.05 2012 9.68 10.49 58,864.32 AQR Global Risk Balanced Investment Division (Class B) (4/30/2012). 2012 11.05 11.38 0.00 Baillie Gifford International Stock Investment Division (formerly Artio International Stock Investment Division) (Class E)......... 2003 8.38 10.47 0.00
155
Beginning of Number of Year End of Year Accumulation Accumulation Accumulation Units End of Investment Division Year Unit Value Unit Value Year ------------------- ---- ------------ ------------ ------------ Baillie Gifford International Stock Investment Division (formerly Artio International Stock Investment Division) (Class B)......... 2004 $10.51 $11.93 206.73 2005 11.93 13.71 6,088.01 2006 13.71 15.58 11,733.97 2007 15.58 16.76 7,917.55 2008 16.76 9.13 5,767.09 2009 9.13 10.87 4,565.85 2010 10.87 11.36 4,828.95 2011 11.36 8.86 1,587.82 2012 8.86 10.34 570.89 Barclays Capital Aggregate Bond Index Investment Division (Class E) 2003 11.92 12.05 0.00 Barclays Capital Aggregate Bond Index Investment Division (Class B) 2004 11.81 12.08 68,675.99 2005 12.08 12.03 104,347.97 2006 12.03 12.20 175,669.65 2007 12.20 12.72 164,982.41 2008 12.72 13.13 106,196.81 2009 13.13 13.47 96,300.15 2010 13.47 13.91 89,993.46 2011 13.91 14.59 48,329.35 2012 14.59 14.77 41,735.30 BlackRock Aggressive Growth Investment Division (Class E).......... 2003 21.56 29.63 0.00 BlackRock Aggressive Growth Investment Division (Class B).......... 2004 29.05 32.02 470.09 2005 32.02 34.56 351.47 2006 34.56 35.96 342.15 2007 35.96 42.25 1,604.22 2008 42.25 22.36 5,150.56 2009 22.36 32.57 4,551.30 2010 32.57 36.61 4,237.52 2011 36.61 34.61 653.21 2012 34.61 37.44 192.85 BlackRock Bond Income Investment Division (Class E)................ 2003 37.72 38.96 0.00 BlackRock Bond Income Investment Division (Class B)................ 2004 35.93 37.01 4,465.70 2005 37.01 36.95 7,893.69 2006 36.95 37.60 8,645.26 2007 37.60 38.96 12,697.65 2008 38.96 36.67 9,177.68 2009 36.67 39.13 8,186.58 2010 39.13 41.33 8,240.76 2011 41.33 42.94 3,474.55 2012 42.94 45.01 2,281.43 BlackRock Diversified Investment Division (Class E)................ 2003 26.49 31.17 0.00 BlackRock Diversified Investment Division (Class B)................ 2004 30.09 32.27 6,385.61 2005 32.27 32.43 15,553.06 2006 32.43 34.94 17,189.51 2007 34.94 36.06 6,540.78 2008 36.06 26.44 4,369.81 2009 26.44 30.23 3,973.04 2010 30.23 32.30 3,538.65 2011 32.30 32.70 1,896.79 2012 32.70 35.82 674.46
156
Beginning of Number of Year End of Year Accumulation Accumulation Accumulation Units End of Investment Division Year Unit Value Unit Value Year ------------------- ---- ------------ ------------ ------------ BlackRock Global Tactical Strategies Investment Division (Class B) (4/30/2012)...................................................... 2012 $ 9.88 $10.14 0.00 BlackRock Large Cap Core Investment Division* (Class B)............ 2007 63.00 63.16 368.02 2008 63.16 38.69 807.79 2009 38.69 45.07 693.76 2010 45.07 49.53 796.37 2011 49.53 48.53 199.13 2012 48.53 53.78 0.00 BlackRock Large Cap Investment Division (Class E).................. 2003 40.18 51.07 0.00 BlackRock Large Cap Investment Division (Class B).................. 2004 49.31 54.09 253.57 2005 54.09 54.62 367.03 2006 54.62 60.76 366.86 2007 60.76 63.54 0.00 BlackRock Large Cap Value Investment Division (Class E)............ 2003 7.87 10.42 0.00 BlackRock Large Cap Value Investment Division (Class B)............ 2004 10.49 11.51 18,591.97 2005 11.51 11.87 20,493.04 2006 11.87 13.83 18,855.81 2007 13.83 13.93 27,445.10 2008 13.93 8.83 22,432.06 2009 8.83 9.59 13,124.41 2010 9.59 10.20 12,861.88 2011 10.20 10.18 2,392.56 2012 10.18 11.33 332.33 BlackRock Legacy Large Cap Growth Investment Division (Class B) (5/1/2004)....................................................... 2004 21.29 23.19 1,500.34 2005 23.19 24.19 2,741.85 2006 24.19 24.56 6,579.00 2007 24.56 28.42 8,317.88 2008 28.42 17.58 14,557.19 2009 17.58 23.46 10,163.65 2010 23.46 27.39 9,946.90 2011 27.39 24.31 7,167.21 2012 24.31 27.10 4,717.63 BlackRock Legacy Large Cap Growth Investment Division (Class B) (formerly FI Large Cap Investment Division (Class B) (5/1/2006).. 2006 15.66 15.75 0.00 2007 15.75 15.96 0.00 2008 15.96 8.58 0.00 2009 8.58 8.92 0.00 BlackRock Money Market Investment Division (Class E) (5/1/2003).... 2003 18.93 18.72 82.45 BlackRock Money Market Investment Division (Class B)............... 2004 18.23 18.06 0.00 2005 18.06 18.11 0.00 2006 18.11 18.51 0.00 2007 18.51 18.96 0.00 2008 18.96 19.01 6,331.55 2009 19.01 18.62 5,711.69 2010 18.62 18.20 5,714.17 2011 18.20 17.78 5,711.71 2012 17.78 17.38 0.00 BlackRock Strategic Value Investment Division (Class E)............ 2003 10.58 15.50 0.00
157
Beginning of Number of Year End of Year Accumulation Accumulation Accumulation Units End of Investment Division Year Unit Value Unit Value Year ------------------- ---- ------------ ------------ ------------ Clarion Global Real Estate Investment Division (Class B) (5/1/2004) 2004 $ 9.99 $12.75 17,259.85 2005 12.75 14.12 62,406.06 2006 14.12 18.99 103,829.51 2007 18.99 15.77 80,509.83 2008 15.77 8.98 43,231.44 2009 8.98 11.83 40,055.85 2010 11.83 13.43 24,505.95 2011 13.43 12.39 14,183.25 2012 12.39 15.25 1,028.99 Davis Venture Value Investment Division (Class E).................. 2003 20.22 25.83 0.00 Davis Venture Value Investment Division (Class B).................. 2004 26.22 28.05 4,134.00 2005 28.05 30.16 14,938.08 2006 30.16 33.70 22,597.68 2007 33.70 34.36 22,729.70 2008 34.36 20.30 13,575.92 2009 20.30 26.12 11,771.85 2010 26.12 28.52 9,907.88 2011 28.52 26.68 6,085.03 2012 26.68 29.36 2,283.99 FI Mid Cap Opportunities Investment Division (Class E)............. 2003 10.39 13.66 0.00 FI Value Leaders Investment Division (Class E)..................... 2003 17.15 21.24 0.00 FI Value Leaders Investment Division (Class B)..................... 2004 20.84 23.36 1,782.38 2005 23.36 25.22 5,676.29 2006 25.22 27.52 10,229.10 2007 27.52 27.95 5,072.74 2008 27.95 16.63 4,622.22 2009 16.63 19.74 3,951.38 2010 19.74 22.05 3,895.47 2011 22.05 20.17 2,813.46 2012 20.17 22.76 429.42 Harris Oakmark International Investment Division (Class E)......... 2003 8.74 11.54 0.00 Harris Oakmark International Investment Division (Class B)......... 2004 11.75 13.56 6,279.34 2005 13.56 15.14 13,426.94 2006 15.14 19.07 21,768.49 2007 19.07 18.43 37,386.16 2008 18.43 10.64 17,901.75 2009 10.64 16.13 14,682.63 2010 16.13 18.35 16,577.67 2011 18.35 15.38 9,337.47 2012 15.38 19.42 1,730.62 Invesco Balanced-Risk Allocation Investment Division (Class B) (4/30/2012)...................................................... 2012 1.01 1.04 0.00 Invesco Small Cap Growth Investment Division (Class E)............. 2003 8.39 11.41 0.00
158
Beginning of Number of Year End of Year Accumulation Accumulation Accumulation Units End of Investment Division Year Unit Value Unit Value Year ------------------- ---- ------------ ------------ ------------ Invesco Small Cap Growth Investment Division (Class B)............. 2004 $ 11.10 $ 11.82 1,582.34 2005 11.82 12.51 7,237.93 2006 12.51 13.96 9,838.79 2007 13.96 15.15 5,026.02 2008 15.15 9.07 1,675.61 2009 9.07 11.86 1,727.70 2010 11.86 14.63 3,246.29 2011 14.63 14.14 212.11 2012 14.14 16.34 208.00 Janus Forty Investment Division (Class B) (4/30/2007).............. 2007 116.32 141.83 1,112.92 2008 141.83 80.39 6,337.55 2009 80.39 112.23 5,447.79 2010 112.23 119.98 4,669.92 2011 119.98 108.41 1,571.12 2012 108.41 129.79 529.50 Jennison Growth Investment Division (Class B)...................... 2005 3.88 4.64 3,987.32 2006 4.64 4.65 9,269.22 2007 4.65 5.06 11,750.99 2008 5.06 3.14 18,853.62 2009 3.14 4.28 15,098.89 2010 4.28 4.65 16,993.57 2011 4.65 4.56 1,981.35 2012 4.56 5.15 672.28 Jennison Growth Investment Division (formerly Met/Putnam Voyager Investment Division) (Class E)................................... 2003 3.36 4.13 0.00 Jennison Growth Investment Division (formerly Oppenheimer Capital Appreciation Investment Division) (Class B) (5/1/2005)........... 2005 7.65 8.25 0.00 2006 8.25 8.68 0.00 2007 8.68 9.70 2,709.85 2008 9.70 5.12 4,618.19 2009 5.12 7.19 3,783.20 2010 7.19 7.69 1,895.10 2011 7.69 7.41 158.67 2012 7.41 8.31 0.00 Jennison Growth Investment Division (formerly Met/Putnam Voyager Investment Division) (Class B)................................... 2004 4.07 4.22 3,585.58 2005 4.22 3.84 4,660.68 Legg Mason Partners Aggressive Growth Investment Division (formerly Janus Growth Investment Division) (Class E)............ 2003 5.21 6.62 0.00 Legg Mason ClearBridge Aggressive Growth Investment Division (Class B)........................................................ 2003 5.46 6.62 0.00 Legg Mason ClearBridge Aggressive Growth Investment Division (formerly Legg Mason Value Equity Investment Division) (Class B). 2004 6.41 6.93 2,180.74 2005 6.93 7.69 9,274.78 2006 7.69 7.38 14,905.88 2007 7.38 7.38 9,416.59 2008 7.38 4.39 9,644.05 2009 4.39 5.71 4,797.99 2010 5.71 6.91 3,802.41 2011 6.91 6.97 2,883.18 2012 6.97 8.07 335.51
159
Beginning of Number of Year End of Year Accumulation Accumulation Accumulation Units End of Investment Division Year Unit Value Unit Value Year ------------------- ---- ------------ ------------ ------------ Legg Mason Value Equity Investment Division (formerly MFS(R) Investors Trust Investment Division) (Class E)................... 2006 $ 8.78 $ 9.35 496.66 2007 9.35 8.60 454.92 2008 8.60 3.81 454.01 2009 3.81 5.14 453.99 2010 5.14 5.39 465.61 2011 5.39 5.72 0.00 Legg Mason Value Equity Investment Division (formerly MFS(R) Investors Trust Investment Division) (Class B)................... 2003 6.31 7.49 0.00 Loomis Sayles Small Cap Core Investment Division (Class E)......... 2004 7.35 8.10 813.14 2005 8.10 8.46 0.00 2006 8.46 8.81 0.00 Loomis Sayles Small Cap Core Investment Division (Class B)......... 2003 16.05 21.38 0.00 Loomis Sayles Small Cap Growth Investment Division (Class E)....... 2004 21.40 24.10 117.66 2005 24.10 25.13 2,403.10 2006 25.13 28.58 7,496.79 2007 28.58 31.18 8,345.65 2008 31.18 19.48 7,015.22 2009 19.48 24.73 6,016.67 2010 24.73 30.75 4,921.81 2011 30.75 30.15 3,835.33 2012 30.15 33.67 429.08 Loomis Sayles Small Cap Growth Investment Division (Class B)....... 2003 6.16 8.71 0.00 Lord Abbett Bond Debenture Investment Division (formerly Loomis Sayles High Yield Bond Investment Division) (Class E)............ 2004 8.57 9.43 2,857.38 2005 9.43 9.62 1,790.05 2006 9.62 10.32 5,012.27 2007 10.32 10.52 3,786.65 2008 10.52 6.03 3,041.61 2009 6.03 7.64 1,815.08 2010 7.64 9.81 2,282.53 2011 9.81 9.85 225.77 2012 9.85 10.68 0.00 Lord Abbett Bond Debenture Investment Division (Class E)........... 2003 14.43 16.83 0.00 Lord Abbett Bond Debenture Investment Division (Class B)........... 2003 9.94 11.59 0.00 2004 11.59 12.26 6,995.83 Lord Abbett Mid Cap Value Investment Division (Class E)............ 2004 14.84 15.72 5,296.69 2005 15.72 15.59 9,814.85 2006 15.59 16.63 11,157.25 2007 16.63 17.31 19,214.94 2008 17.31 13.77 18,982.21 2009 13.77 18.41 17,167.88 2010 18.41 20.32 10,542.47 2011 20.32 20.75 6,844.46 2012 20.75 22.90 663.91 Lord Abbett Mid Cap Value Investment Division (Class B)............ 2012 22.79 23.30 0.00 Lord Abbett Mid Cap Value Investment Division (Class E) (formerly Neuberger Berman Mid Cap Value Investment Division) (Class E).... 2012 22.43 22.92 2,854.89
160
Beginning of Number of Year End of Year Accumulation Accumulation Accumulation Units End of Investment Division Year Unit Value Unit Value Year ------------------- ---- ------------ ------------ ------------ Lord Abbett Mid Cap Value Investment Division (Class B) (formerly Neuberger Berman Mid Cap Value Investment Division) (Class B).... 2003 $12.92 $17.22 0.00 Invesco Cap Growth Investment Division (Class E)................... 2004 17.66 20.48 9,930.93 2005 20.48 22.40 23,315.35 2006 22.40 24.35 33,167.26 2007 24.35 24.55 34,211.63 2008 24.55 12.60 24,143.27 2009 12.60 18.19 19,651.37 2010 18.19 22.41 17,533.27 2011 22.41 20.44 8,148.49 2012 20.44 22.54 0.00 Met/Artisan Mid Cap Value Investment Division (Class E)............ 2003 21.61 27.98 0.00 Met/Artisan Mid Cap Value Investment Division (Class B)............ 2004 27.27 29.42 5,359.15 2005 29.42 31.55 13,128.60 2006 31.55 34.58 13,048.19 2007 34.58 31.40 10,632.92 2008 31.40 16.53 9,683.33 2009 16.53 22.81 9,928.94 2010 22.81 25.58 7,417.85 2011 25.58 26.62 7,451.42 2012 26.62 29.03 968.59 Met/Franklin Income Investment Division (Class B) (4/28/2008)...... 2008 9.99 7.93 218.39 2009 7.93 9.91 5,230.87 2010 9.91 10.83 10,361.15 2011 10.83 10.81 0.00 2012 10.81 11.88 85.12 Met/Franklin Low Duration Total Return Investment Division (Class B) (5/2/2011).................................................... 2011 9.98 9.70 0.00 2012 9.70 9.90 0.00 Met/Franklin Mutual Shares Investment Division (Class B) (4/28/2008)...................................................... 2008 9.99 6.55 0.00 2009 6.55 8.00 1,120.63 2010 8.00 8.68 2,803.17 2011 8.68 8.44 209.41 2012 8.44 9.39 0.00 Met/Franklin Templeton Founding Strategy Investment Division (Class B) (4/28/2008)............................................ 2008 9.99 6.99 0.00 2009 6.99 8.78 1,691.37 2010 8.78 9.44 7.31 2011 9.44 9.06 0.00 2012 9.06 10.28 0.00 Met/Templeton Growth Investment Division (Class B) (4/28/2008)..... 2008 9.99 6.52 0.00 2009 6.52 8.46 0.00 2010 8.46 8.90 0.00 2011 8.90 8.10 0.00 2012 8.10 9.67 109.09 MetLife Aggressive Strategy Investment Division (Class B).......... 2011 11.52 9.80 13,700.12 2012 9.80 11.18 12,052.85
161
Beginning of Number of Year End of Year Accumulation Accumulation Accumulation Units End of Investment Division Year Unit Value Unit Value Year ------------------- ---- ------------ ------------ ------------ MetLife Aggressive Strategy Investment Division (formerly MetLife Aggressive Allocation Investment Division) (Class B) (5/1/2005).. 2005 $ 9.99 $11.08 66.32 2006 11.08 12.52 22,474.20 2007 12.52 12.64 24,687.28 2008 12.64 7.35 21,574.44 2009 7.35 9.45 36,464.21 2010 9.45 10.68 34,750.74 2011 10.68 11.55 0.00 MetLife Balanced Plus Investment Division (Class B) (4/30/2012).... 2012 9.91 10.30 0.00 MetLife Conservative Allocation Investment Division (Class B) (5/1/2005)....................................................... 2005 9.99 10.23 2,651.88 2006 10.23 10.69 2,557.48 2007 10.69 11.03 2,357.64 2008 11.03 9.23 3,329.81 2009 9.23 10.87 12,640.10 2010 10.87 11.69 12,602.11 2011 11.69 11.79 2,131.99 2012 11.79 12.58 0.00 MetLife Conservative to Moderate Allocation Investment Division (Class B) (5/1/2005)............................................. 2005 9.99 10.45 42,338.63 2006 10.45 11.17 186,748.34 2007 11.17 11.45 213,396.47 2008 11.45 8.77 140,729.65 2009 8.77 10.60 129,842.31 2010 10.60 11.55 102,168.09 2011 11.55 11.41 20,295.40 2012 11.41 12.42 25,152.38 MetLife Mid Cap Stock Index Investment Division (Class E).......... 2003 8.45 11.14 0.00 MetLife Mid Cap Stock Index Investment Division (Class B).......... 2004 11.25 12.53 29,621.98 2005 12.53 13.72 34,678.10 2006 13.72 14.72 40,318.22 2007 14.72 15.47 34,384.52 2008 15.47 9.62 32,274.06 2009 9.62 12.85 27,712.70 2010 12.85 15.83 22,143.89 2011 15.83 15.13 11,560.20 2012 15.13 17.35 3,700.78 MetLife Moderate Allocation Investment Division (Class B) (5/1/2005)....................................................... 2005 9.99 10.68 26,758.05 2006 10.68 11.67 135,735.37 2007 11.67 11.90 384,431.59 2008 11.90 8.30 210,997.07 2009 8.30 10.26 201,032.98 2010 10.26 11.35 179,503.37 2011 11.35 10.94 128,655.59 2012 10.94 12.11 118,762.91 MetLife Moderate to Aggressive Allocation Investment Division (Class B) (5/1/2005)............................................. 2005 9.99 10.90 3,633.02 2006 10.90 12.17 295,572.42 2007 12.17 12.35 397,849.27 2008 12.35 7.83 104,859.66 2009 7.83 9.88 126,014.39 2010 9.88 11.07 85,467.68 2011 11.07 10.41 53,725.29 2012 10.41 11.74 22,790.02
162
Beginning of Number of Year End of Year Accumulation Accumulation Accumulation Units End of Investment Division Year Unit Value Unit Value Year ------------------- ---- ------------ ------------ ------------ MetLife Stock Index Investment Division (Class E).................. 2003 $24.56 $30.72 0.00 MetLife Stock Index Investment Division (Class B).................. 2004 29.89 32.20 64,157.86 2005 32.20 32.84 82,221.18 2006 32.84 36.97 92,276.05 2007 36.97 37.93 85,289.32 2008 37.93 23.25 84,347.16 2009 23.25 28.61 71,716.73 2010 28.61 32.01 63,378.77 2011 32.01 31.80 31,444.34 2012 31.80 35.87 14,187.01 MFS(R) Research International Investment Division (Class E)........ 2003 7.18 9.27 0.00 MFS(R) Research International Investment Division (Class B)........ 2004 9.46 10.80 4,438.20 2005 10.80 12.29 5,803.58 2006 12.29 15.20 8,237.59 2007 15.20 16.83 20,401.23 2008 16.83 9.48 16,044.22 2009 9.48 12.19 13,178.08 2010 12.19 13.27 14,416.07 2011 13.27 11.58 2,698.77 2012 11.58 13.20 515.21 MFS(R) Total Return Investment Division (Class B) (5/1/2004)....... 2004 31.54 34.09 166.11 2005 34.09 34.27 847.21 2006 34.27 37.49 504.29 2007 37.49 38.14 8,629.69 2008 38.14 28.94 6,112.80 2009 28.94 33.46 6,808.48 2010 33.46 35.90 2,357.63 2011 35.90 35.84 132.21 2012 35.84 38.99 0.00 MFS(R) Value Investment Division (Class E)......................... 2003 9.35 11.46 0.00 MFS(R) Value Investment Division (Class B)......................... 2004 11.54 12.38 11,105.37 2005 12.38 11.90 18,025.09 2006 11.90 13.71 15,566.56 2007 13.71 12.86 24,430.23 2008 12.86 8.33 12,126.59 2009 8.33 9.81 10,686.78 2010 9.81 10.66 10,556.28 2011 10.66 10.49 18,744.75 2012 10.49 11.92 315.62 MLA Mid Cap Investment Division (formerly Lazard Mid Cap Investment Division) (Class E)................................... 2003 9.57 11.82 0.00 MLA Mid Cap Investment Division (formerly Lazard Mid Cap Investment Division) (Class B)................................... 2004 12.27 13.17 492.49 2005 13.17 13.91 521.73 2006 13.91 15.59 805.23 2007 15.59 14.82 3,369.92 2008 14.82 8.93 3,398.11 2009 8.93 11.94 2,095.94 2010 11.94 14.34 2,077.73 2011 14.34 13.28 270.47 2012 13.28 13.66 270.47
163
Beginning of Number of Year End of Year Accumulation Accumulation Accumulation Units End of Investment Division Year Unit Value Unit Value Year ------------------- ---- ------------ ------------ ------------ MSCI EAFE(R) Index Investment Division (formerly Morgan Stanley EAFE(R) Index Investment Division) (Class E)..................... 2003 $ 6.81 $ 9.14 0.00 MSCI EAFE(R) Index Investment Division (formerly Morgan Stanley EAFE(R) Index Investment Division) (Class B)..................... 2004 9.10 10.52 54,022.71 2005 10.52 11.61 60,495.83 2006 11.61 14.23 64,630.68 2007 14.23 15.37 70,746.36 2008 15.37 8.68 60,820.49 2009 8.68 10.88 53,870.09 2010 10.88 11.48 47,299.74 2011 11.48 9.80 23,190.21 2012 9.80 11.30 14,725.72 Morgan Stanley Mid Cap Growth Investment Division (Class B)........ 2010 11.43 13.20 3,708.10 2011 13.20 12.00 1,301.57 2012 12.00 12.82 480.01 Morgan Stanley Mid Cap Growth Investment Division (formerly FI Mid Cap Opportunities Investment Division (Class B))................. 2004 13.73 15.37 893.10 2005 15.37 16.02 3,485.86 2006 16.02 17.47 8,070.45 2007 17.47 18.45 8,128.61 2008 18.45 8.03 7,520.42 2009 8.03 10.49 4,004.17 2010 10.49 11.31 0.00 Morgan Stanley Mid Cap Growth Investment Division (formerly FI Mid Cap Opportunities Investment Division (Class E))................. 2003 10.39 13.66 0.00 2004 13.66 15.62 15,648.31 2005 15.62 16.29 15,342.07 2006 16.29 17.78 11,503.36 2007 17.78 18.80 8,808.99 2008 18.80 8.19 9,063.38 2009 8.19 10.71 6,659.68 2010 10.71 11.55 0.00 Neuberger Berman Genesis Investment Division (Class B)............. 2004 15.56 17.40 22,097.11 2005 17.40 17.67 44,679.62 2006 17.67 20.11 47,952.92 2007 20.11 18.93 45,574.31 2008 18.93 11.36 31,573.50 2009 11.36 12.53 26,631.27 2010 12.53 14.86 25,275.69 2011 14.86 15.32 11,940.15 2012 15.32 16.43 1,961.11 Oppenheimer Global Equity Investment Division (Class E)............ 2003 9.57 12.19 0.00 Oppenheimer Global Equity Investment Division (Class B)............ 2004 11.95 13.70 2,158.26 2005 13.70 15.53 2,542.63 2006 15.53 17.67 9,884.47 2007 17.67 18.34 8,128.40 2008 18.34 10.65 9,320.55 2009 10.65 14.55 9,028.03 2010 14.55 16.49 8,516.20 2011 16.49 14.76 5,883.98 2012 14.76 17.48 87.51
164
Beginning of Number of Year End of Year Accumulation Accumulation Accumulation Units End of Investment Division Year Unit Value Unit Value Year ------------------- ---- ------------ ------------ ------------ PIMCO Inflation Protected Bond Investment Division (Class B) (5/1/2006)....................................................... 2006 $10.70 $10.74 11,668.63 2007 10.74 11.63 5,173.12 2008 11.63 10.58 52,328.27 2009 10.58 12.20 59,007.34 2010 12.20 12.85 42,735.27 2011 12.85 13.96 26,096.84 2012 13.96 14.89 13,879.69 PIMCO Total Return Investment Division (Class E)................... 2003 11.07 11.30 0.00 PIMCO Total Return Investment Division (Class B)................... 2004 11.33 11.67 15,237.83 2005 11.67 11.66 36,721.36 2006 11.66 11.91 38,133.46 2007 11.91 12.52 34,418.86 2008 12.52 12.29 35,120.75 2009 12.29 14.17 31,646.98 2010 14.17 14.98 42,914.23 2011 14.98 15.11 23,741.63 2012 15.11 16.13 14,419.09 Pyramis(R) Government Income Investment Division (Class B) (4/30/2012)...................................................... 2012 10.67 10.77 0.00 RCM Technology Investment Division (Class E)....................... 2003 2.92 4.49 0.00 RCM Technology Investment Division (Class B)....................... 2004 4.04 4.19 476.42 2005 4.19 4.54 2,929.51 2006 4.54 4.68 8,407.27 2007 4.68 6.01 42,291.29 2008 6.01 3.26 43,620.83 2009 3.26 5.07 40,382.60 2010 5.07 6.33 36,613.79 2011 6.33 5.57 7,905.03 2012 5.57 6.10 641.52 Russell 2000(R) Index Investment Division (Class E)................ 2003 9.03 12.88 0.00 Russell 2000(R) Index Investment Division (Class B)................ 2004 12.82 14.59 34,337.97 2005 14.59 14.87 37,915.77 2006 14.87 17.09 33,144.79 2007 17.09 16.41 33,390.67 2008 16.41 10.64 24,804.11 2009 10.64 13.06 20,687.61 2010 13.06 16.16 18,681.62 2011 16.16 15.12 5,528.29 2012 15.12 17.14 2,158.83 Schroders Global Multi-Asset Investment Division (Class B) (4/30/2012)...................................................... 2012 1.01 1.06 0.00 SSgA Growth ETF Investment Division (Class B) (5/1/2006)........... 2006 10.64 11.28 0.00 2007 11.28 11.65 12,944.63 2008 11.65 7.63 614.50 2009 7.63 9.62 505.52 2010 9.62 10.74 650.95 2011 10.74 10.27 642.79 2012 10.27 11.54 637.66
165
Beginning of Number of Year End of Year Accumulation Accumulation Accumulation Units End of Investment Division Year Unit Value Unit Value Year ------------------- ---- ------------ ------------ ------------ SSgA Growth and Income ETF Investment Division (Class B) (5/1/2006) 2006 $10.45 $11.03 0.00 2007 11.03 11.36 245.33 2008 11.36 8.32 1,439.57 2009 8.32 10.15 1,728.44 2010 10.15 11.14 5,809.92 2011 11.14 11.00 1,947.00 2012 11.00 12.13 1,976.56 T. Rowe Price Large Cap Growth Investment Division (Class E)....... 2003 8.39 10.71 0.00 T. Rowe Price Large Cap Growth Investment Division (Class B)....... 2004 10.62 11.44 2,945.42 2005 11.44 11.89 7,481.91 2006 11.89 13.12 6,550.37 2007 13.12 13.99 10,385.59 2008 13.99 7.93 12,169.18 2009 7.93 11.09 10,461.41 2010 11.09 12.65 6,889.79 2011 12.65 12.20 12,528.63 2012 12.20 14.14 1,888.93 T. Rowe Price Mid Cap Growth Investment Division (Class E)......... 2003 4.47 5.98 0.00 T. Rowe Price Mid Cap Growth Investment Division (Class B)......... 2004 6.09 6.87 22,926.76 2005 6.87 7.69 42,374.54 2006 7.69 7.98 56,689.17 2007 7.98 9.18 41,537.89 2008 9.18 5.40 48,436.73 2009 5.40 7.68 45,199.89 2010 7.68 9.58 42,154.34 2011 9.58 9.21 22,667.44 2012 9.21 10.23 250.88 T. Rowe Price Small Cap Growth Investment Division (Class E)....... 2003 8.27 11.37 0.00 T. Rowe Price Small Cap Growth Investment Division (Class B)....... 2004 11.60 12.30 1,150.84 2005 12.30 13.31 1,258.39 2006 13.31 13.48 6,599.94 2007 13.48 14.42 3,920.01 2008 14.42 8.97 4,219.15 2009 8.97 12.16 6,530.70 2010 12.16 16.00 8,053.92 2011 16.00 15.87 4,312.19 2012 15.87 17.97 2,203.92 Western Asset Management Strategic Bond Opportunities Investment Division (Class E)............................................... 2003 15.91 17.50 0.00 Western Asset Management Strategic Bond Opportunities Investment Division (Class B)............................................... 2004 17.12 18.04 11,888.85 2005 18.04 18.09 30,125.39 2006 18.09 18.53 34,601.97 2007 18.53 18.78 31,440.86 2008 18.78 15.55 23,086.19 2009 15.55 20.05 18,905.10 2010 20.05 22.04 25,124.00 2011 22.04 22.79 18,850.56 2012 22.79 24.79 7,419.46 Western Asset Management U.S. Government Investment Division (Class E)........................................................ 2003 14.56 14.45 0.00
166
Beginning of Number of Year End of Year Accumulation Accumulation Accumulation Units End of Investment Division Year Unit Value Unit Value Year ------------------- ---- ------------ ------------ ------------ Western Asset Management U.S. Government Investment Division (Class B)........................................................ 2004 $ 14.15 $ 14.40 9,018.77 2005 14.40 14.27 21,812.04 2006 14.27 14.49 16,953.71 2007 14.49 14.73 18,818.23 2008 14.73 14.32 21,805.55 2009 14.32 14.57 18,691.73 2010 14.57 15.02 17,270.73 2011 15.02 15.45 7,246.18 2012 15.45 15.56 547.23 At 2.55 Separate Account Charge: American Funds Bond Investment Division (Class 2)(k)............... 2006 13.36 13.92 5,946.69 2007 13.92 14.02 7,845.31 2008 14.02 12.39 4,754.23 2009 12.39 13.60 3,374.12 2010 13.60 14.11 3,029.74 2011 14.11 14.59 2,685.16 2012 14.59 14.99 1,451.34 American Funds Global Small Capitalization Investment Division (Class 2)........................................................ 2004 15.33 18.07 15,247.27 2005 18.07 22.08 29,683.18 2006 22.08 26.71 44,812.05 2007 26.71 31.61 52,489.35 2008 31.61 14.32 47,184.56 2009 14.32 22.52 42,773.75 2010 22.52 26.87 38,481.76 2011 26.87 21.18 16,878.39 2012 21.18 24.40 6,976.44 American Funds Growth Investment Division (Class 2)................ 2004 91.79 100.65 7,212.98 2005 100.65 114.01 12,716.12 2006 114.01 122.51 16,853.27 2007 122.51 134.15 16,934.86 2008 134.15 73.26 14,663.23 2009 73.26 99.56 13,515.46 2010 99.56 115.19 12,913.96 2011 115.19 107.49 6,492.23 2012 107.49 123.52 3,444.63 American Funds Growth-Income Investment Division (Class 2)......... 2004 71.43 76.85 7,041.60 2005 76.85 79.29 13,993.24 2006 79.29 89.06 19,606.13 2007 89.06 91.18 23,431.93 2008 91.18 55.23 16,761.80 2009 55.23 70.67 15,064.49 2010 70.67 76.76 12,576.45 2011 76.76 73.46 5,286.13 2012 73.46 84.12 1,344.56
167 PREFERENCE PLUS SELECT DEFERRED ANNUITIES LOWEST POSSIBLE MIX 1.25 SEPARATE ACCOUNT CHARGE
Beginning of Number of Year End of Year Accumulation Accumulation Accumulation Units End of Investment Division Year Unit Value Unit Value Year ------------------- ---- ------------ ------------ ------------- AllianceBernstein Global Dynamic Allocation Investment Division (Class B) (4/30/2012)............................................ 2012 $ 10.23 $ 10.59 60,586,664.86 American Funds(R) Balanced Allocation Investment Division (Class C) (4/28/2008)................................................... 2008 10.00 7.01 5,363,317.01 2009 7.01 8.96 18,010,048.59 2010 8.96 9.92 29,542,398.60 2011 9.92 9.59 34,428,136.42 2012 9.59 10.76 34,368,920.55 American Funds Bond Investment Division+ (Class 2) (5/1/2006)...... 2006 14.82 15.56 365,887.51 2007 15.56 15.85 768,194.65 2008 15.85 14.17 554,431.26 2009 14.17 15.73 461,528.53 2010 15.73 16.51 417,970.90 2011 16.51 17.28 297,207.79 2012 17.28 17.95 249,373.50 American Funds Global Small Capitalization Investment Division+ (Class 2)........................................................ 2003 10.81 16.37 793,521.46 2004 16.37 19.51 1,684,630.59 2005 19.51 24.12 1,942,621.89 2006 24.12 29.51 2,014,130.80 2007 29.51 35.33 2,066,061.06 2008 35.33 16.19 1,676,113.20 2009 16.19 25.75 1,627,893.35 2010 25.75 31.09 1,542,372.20 2011 31.09 24.79 1,329,857.31 2012 24.79 28.89 1,090,983.82 American Funds(R) Growth Allocation Investment Division (Class C) (4/28/2008)...................................................... 2008 9.99 6.36 11,381,509.85 2009 6.36 8.42 21,656,706.19 2010 8.42 9.44 22,320,507.44 2011 9.44 8.88 21,607,932.95 2012 8.88 10.19 20,505,386.56 American Funds Growth Investment Division+ (Class 2)............... 2003 85.50 115.34 484,308.87 2004 115.34 127.95 832,307.70 2005 127.95 146.61 850,455.08 2006 146.61 159.35 855,979.03 2007 159.35 176.52 789,249.89 2008 176.52 97.52 685,332.95 2009 97.52 134.07 644,152.88 2010 134.07 156.90 606,411.59 2011 156.90 148.11 516,594.10 2012 148.11 172.17 436,720.84
168
Beginning of Number of Year End of Year Accumulation Accumulation Accumulation Units End of Investment Division Year Unit Value Unit Value Year ------------------- ---- ------------ ------------ ------------- American Funds Growth-Income Investment Division+ (Class 2)........ 2003 $ 68.74 $ 89.76 634,858.72 2004 89.76 97.69 1,040,319.53 2005 97.69 101.96 992,089.03 2006 101.96 115.83 915,468.87 2007 115.83 119.97 847,614.09 2008 119.97 73.52 701,937.54 2009 73.52 95.15 648,730.37 2010 95.15 104.55 616,925.22 2011 104.55 101.21 542,332.49 2012 101.21 117.25 459,521.06 American Funds(R) Moderate Allocation Investment Division (Class C) (4/28/2008)................................................... 2008 10.01 7.69 11,825,226.62 2009 7.69 9.37 31,832,639.17 2010 9.37 10.17 47,689,050.02 2011 10.17 10.06 52,439,006.83 2012 10.06 11.02 50,094,945.18 AQR Global Risk Balanced Investment Division (Class B) (4/30/2012). 2012 11.17 11.59 81,387,523.32 Baillie Gifford International Stock Investment Division (formerly Artio International Stock Investment Division) (Class E)......... 2003 9.47 11.96 635,794.86 Baillie Gifford International Stock Investment Division (formerly Artio International Stock Investment Division) (Class B)......... 2004 12.05 13.78 230,542.93 2005 13.78 16.00 882,635.15 2006 16.00 18.37 1,788,847.70 2007 18.37 19.96 2,326,601.22 2008 19.96 10.99 3,102,643.46 2009 10.99 13.23 3,503,823.36 2010 13.23 13.96 3,594,551.26 2011 13.96 11.01 3,776,314.57 2012 11.01 12.98 3,507,363.06 Barclays Capital Aggregate Bond Index Investment Division (Class E) 2003 12.45 12.72 5,134,183.52 Barclays Capital Aggregate Bond Index Investment Division (Class B) 2004 12.51 12.89 3,850,658.98 2005 12.89 12.96 11,887,466.57 2006 12.96 13.29 16,455,776.79 2007 13.29 14.00 20,099,380.29 2008 14.00 14.61 17,439,769.63 2009 14.61 15.14 22,571,032.66 2010 15.14 15.81 27,080,597.56 2011 15.81 16.75 28,884,760.83 2012 16.75 17.14 29,905,111.71 BlackRock Aggressive Growth Investment Division (Class E).......... 2003 25.16 34.93 154,691.04 BlackRock Aggressive Growth Investment Division (Class B).......... 2004 34.38 38.15 48,586.98 2005 38.15 41.61 126,036.87 2006 41.61 43.76 228,956.11 2007 43.76 51.95 383,639.24 2008 51.95 27.79 600,156.98 2009 27.79 40.90 831,307.99 2010 40.90 46.45 916,289.80 2011 46.45 44.39 925,176.40 2012 44.39 48.52 892,201.48 BlackRock Bond Income Investment Division (Class E)................ 2003 46.31 48.33 536,896.98
169
Beginning of Number of Year End of Year Accumulation Accumulation Accumulation Units End of Investment Division Year Unit Value Unit Value Year ------------------- ---- ------------ ------------ ------------- BlackRock Bond Income Investment Division (Class B)................ 2004 $44.66 $46.31 301,057.28 2005 46.31 46.72 1,046,108.64 2006 46.72 48.05 1,637,036.48 2007 48.05 50.31 1,973,936.78 2008 50.31 47.86 1,847,352.77 2009 47.86 51.61 2,153,908.25 2010 51.61 55.08 2,703,572.45 2011 55.08 57.83 2,858,684.31 2012 57.83 61.27 2,913,383.40 BlackRock Diversified Investment Division (Class E)................ 2003 31.50 37.46 752,001.31 BlackRock Diversified Investment Division (Class B)................ 2004 36.28 39.19 277,202.91 2005 39.19 39.79 535,541.81 2006 39.79 43.33 698,275.54 2007 43.33 45.19 830,380.34 2008 45.19 33.48 880,343.66 2009 33.48 38.69 925,517.53 2010 38.69 41.77 895,833.32 2011 41.77 42.73 867,922.79 2012 42.73 47.31 849,024.44 BlackRock Global Tactical Strategies Investment Division (Class B) (4/30/2012)...................................................... 2012 9.98 10.32 85,443,566.94 BlackRock Large Cap Core Investment Division* (Class B)............ 2007 80.94 81.72 197,425.91 2008 81.72 50.59 268,816.94 2009 50.59 59.56 357,508.56 2010 59.56 66.14 351,775.03 2011 66.14 65.49 389,135.33 2012 65.49 73.35 352,713.46 BlackRock Large Cap Investment Division (Class E).................. 2003 49.33 63.36 303,829.18 BlackRock Large Cap Investment Division (Class B).................. 2004 61.39 67.81 63,985.52 2005 67.81 69.20 115,756.61 2006 69.20 77.79 153,608.48 2007 77.79 81.62 0.00 BlackRock Large Cap Value Investment Division (Class E)............ 2003 7.93 10.60 462,050.50 BlackRock Large Cap Value Investment Division (Class B)............ 2004 10.72 11.84 507,414.37 2005 11.84 12.34 1,191,101.20 2006 12.34 14.52 4,017,678.88 2007 14.52 14.79 6,203,097.15 2008 14.79 9.47 6,677,973.23 2009 9.47 10.39 8,380,701.11 2010 10.39 11.18 9,038,984.13 2011 11.18 11.27 9,709,297.06 2012 11.27 12.68 9,104,671.74 BlackRock Legacy Large Cap Growth Investment Division (Class B) (5/1/2004)....................................................... 2004 23.52 25.80 71,095.54 2005 25.80 27.20 179,456.51 2006 27.20 27.91 329,519.56 2007 27.91 32.64 677,955.31 2008 32.64 20.41 1,381,085.09 2009 20.41 27.51 1,948,378.56 2010 27.51 32.46 2,151,515.42 2011 32.46 29.12 2,541,342.82 2012 29.12 32.81 2,406,118.40
170
Beginning of Number of Year End of Year Accumulation Accumulation Accumulation Units End of Investment Division Year Unit Value Unit Value Year ------------------- ---- ------------ ------------ ------------ BlackRock Legacy Large Cap Growth Investment Division (Class B) (formerly FI Large Cap Investment Division (Class B) (5/1/2006).. 2006 $17.34 $17.56 64,686.86 2007 17.56 17.98 159,771.44 2008 17.98 9.77 298,616.98 2009 9.77 10.19 0.00 BlackRock Money Market Investment Division (Class E) (5/1/2003).... 2003 23.28 23.18 24,871.02 BlackRock Money Market Investment Division (Class B)............... 2004 22.66 22.60 51,565.74 2005 22.60 22.91 104,247.78 2006 22.91 23.65 220,864.59 2007 23.65 24.48 423,149.02 2008 24.48 24.81 1,019,197.09 2009 24.81 24.56 1,111,335.11 2010 24.56 24.26 1,344,514.09 2011 24.26 23.96 1,804,163.17 2012 23.96 23.66 2,197,866.28 BlackRock Strategic Value Investment Division (Class E)............ 2003 10.86 16.08 2,552,703.05 Clarion Global Real Estate Investment Division (Class B) (5/1/2004) 2004 9.99 12.84 1,489,317.40 2005 12.84 14.37 4,338,464.48 2006 14.37 19.52 7,835,572.48 2007 19.52 16.39 8,113,130.91 2008 16.39 9.44 7,850,669.54 2009 9.44 12.56 8,085,427.70 2010 12.56 14.40 7,970,798.69 2011 14.40 13.43 8,200,052.38 2012 13.43 16.71 7,497,653.11 Davis Venture Value Investment Division (Class E).................. 2003 22.03 28.44 448,782.09 Davis Venture Value Investment Division (Class B).................. 2004 28.98 31.22 499,387.83 2005 31.22 33.91 2,131,611.21 2006 33.91 38.29 3,988,041.56 2007 38.29 39.45 5,074,167.58 2008 39.45 23.56 5,669,478.45 2009 23.56 30.64 6,659,881.00 2010 30.64 33.80 7,609,124.88 2011 33.80 31.96 7,861,376.38 2012 31.96 35.54 7,323,440.01 FI Mid Cap Opportunities Investment Division (Class E)............. 2003 11.04 14.68 490,905.38 FI Value Leaders Investment Division (Class E)..................... 2003 18.98 23.76 129,119.95 FI Value Leaders Investment Division (Class B)..................... 2004 23.39 26.41 85,618.72 2005 26.41 28.81 420,979.54 2006 28.81 31.77 1,116,072.48 2007 31.77 32.61 1,237,524.46 2008 32.61 19.61 1,167,465.68 2009 19.61 23.52 1,179,028.29 2010 23.52 26.55 1,100,221.92 2011 26.55 24.55 1,076,680.63 2012 24.55 27.99 978,906.09 Harris Oakmark International Investment Division (Class E)......... 2003 8.85 11.81 324,128.40
171
Beginning of Number of Year End of Year Accumulation Accumulation Accumulation Units End of Investment Division Year Unit Value Unit Value Year ------------------- ---- ------------ ------------ -------------- Harris Oakmark International Investment Division (Class B)......... 2004 $ 12.08 $ 14.03 517,942.94 2005 14.03 15.83 2,479,089.48 2006 15.83 20.15 5,230,310.81 2007 20.15 19.67 6,878,657.12 2008 19.67 11.48 5,848,438.73 2009 11.48 17.59 7,094,853.93 2010 17.59 20.22 9,180,544.61 2011 20.22 17.12 10,899,004.55 2012 17.12 21.86 10,001,942.39 Invesco Balanced-Risk Allocation Investment Division (Class B) (4/30/2012)...................................................... 2012 1.01 1.04 145,166,223.98 Invesco Small Cap Growth Investment Division (Class E)............. 2003 8.50 11.68 213,981.76 Invesco Small Cap Growth Investment Division (Class B)............. 2004 11.40 12.23 88,967.34 2005 12.23 13.08 249,141.21 2006 13.08 14.75 379,516.68 2007 14.75 16.18 570,283.63 2008 16.18 9.79 657,668.14 2009 9.79 12.94 943,098.40 2010 12.94 16.12 847,369.93 2011 16.12 15.75 883,526.54 2012 15.75 18.39 836,820.13 Janus Forty Investment Division (Class B) (4/30/2007).............. 2007 151.43 185.95 110,979.76 2008 185.95 106.51 712,494.40 2009 106.51 150.27 1,163,014.01 2010 150.27 162.35 1,298,644.78 2011 162.35 148.24 1,179,824.64 2012 148.24 179.35 1,110,485.64 Jennison Growth Investment Division (Class B)...................... 2005 4.09 4.92 412,176.02 2006 4.92 4.99 1,003,446.89 2007 4.99 5.49 1,164,068.68 2008 5.49 3.44 1,376,073.02 2009 3.44 4.74 3,200,189.21 2010 4.74 5.21 4,846,933.72 2011 5.21 5.15 7,348,067.70 2012 5.15 5.88 12,237,786.15 Jennison Growth Investment Division (formerly Met/Putnam Voyager Investment Division) (Class E)................................... 2003 3.46 4.29 639,387.86 Jennison Growth Investment Division (formerly Oppenheimer Capital Appreciation Investment Division) (Class B) (5/1/2005)........... 2005 7.99 8.69 173,317.48 2006 8.69 9.23 620,638.28 2007 9.23 10.42 1,169,995.30 2008 10.42 5.56 1,627,935.42 2009 5.56 7.90 2,343,856.14 2010 7.90 8.53 2,771,815.26 2011 8.53 8.31 2,875,553.19 2012 8.31 9.35 0.00 Jennison Growth Investment Division (formerly Met/Putnam Voyager Investment Division) (Class B)................................... 2004 4.25 4.44 114,586.68 2005 4.44 4.05 152,249.83
172
Beginning of Number of Year End of Year Accumulation Accumulation Accumulation Units End of Investment Division Year Unit Value Unit Value Year ------------------- ---- ------------ ------------ ------------ Legg Mason Partners Aggressive Growth Investment Division (formerly Janus Growth Investment Division) (Class E)............ 2003 $ 5.30 $ 6.80 0.00 Legg Mason ClearBridge Aggressive Growth Investment Division (Class B)........................................................ 2003 5.57 6.80 310,403.07 Legg Mason ClearBridge Aggressive Growth Investment Division (formerly Legg Mason Value Equity Investment Division) (Class B). 2004 6.63 7.22 157,905.31 2005 7.22 8.09 441,946.14 2006 8.09 7.86 854,039.26 2007 7.86 7.93 829,924.69 2008 7.93 4.77 784,974.04 2009 4.77 6.27 889,731.52 2010 6.27 7.66 1,184,792.59 2011 7.66 7.82 4,333,191.00 2012 7.82 9.15 4,198,132.99 Legg Mason Value Equity Investment Division (formerly MFS(R) Investors Trust Investment Division) (Class E)................... 2006 9.45 10.14 752,191.91 2007 10.14 9.42 819,936.03 2008 9.42 4.22 972,413.11 2009 4.22 5.75 1,433,098.82 2010 5.75 6.10 2,182,977.19 2011 6.10 6.49 0.00 Legg Mason Value Equity Investment Division (formerly MFS(R) Investors Trust Investment Division) (Class B)................... 2003 6.56 7.87 308,442.38 Loomis Sayles Small Cap Core Investment Division (Class E)......... 2004 7.74 8.59 58,522.26 2005 8.59 9.07 300,403.79 2006 9.07 9.49 378,586.99 Loomis Sayles Small Cap Core Investment Division (Class B)......... 2003 17.58 23.67 113,829.25 Loomis Sayles Small Cap Growth Investment Division (Class E)....... 2004 23.77 26.96 62,988.78 2005 26.96 28.40 282,001.02 2006 28.40 32.65 807,342.10 2007 32.65 35.99 1,230,226.05 2008 35.99 22.73 1,465,820.56 2009 22.73 29.16 1,718,288.85 2010 29.16 36.64 1,647,067.79 2011 36.64 36.31 1,663,955.46 2012 36.31 40.97 1,536,877.57 Loomis Sayles Small Cap Growth Investment Division (Class B)....... 2003 6.27 8.96 528,179.62 Lord Abbett Bond Debenture Investment Division (formerly Loomis Sayles High Yield Bond Investment Division) (Class E)............ 2004 8.85 9.80 157,161.05 2005 9.80 10.11 469,945.62 2006 10.11 10.95 779,710.51 2007 10.95 11.28 982,451.23 2008 11.28 6.54 1,137,061.65 2009 6.54 8.37 1,330,724.17 2010 8.37 10.86 1,216,411.01 2011 10.86 11.02 1,198,514.84 2012 11.02 12.07 1,029,058.32 Lord Abbett Bond Debenture Investment Division (Class E)........... 2003 10.57 12.45 0.00 Lord Abbett Bond Debenture Investment Division (Class B)........... 2003 10.57 12.45 906,935.62 2004 12.45 13.31 1,418,152.43
173
Beginning of Number of Year End of Year Accumulation Accumulation Accumulation Units End of Investment Division Year Unit Value Unit Value Year ------------------- ---- ------------ ------------ ------------ Lord Abbett Mid Cap Value Investment Division (Class E)............ 2004 $16.14 $17.21 433,517.32 2005 17.21 17.26 1,644,680.08 2006 17.26 18.60 3,053,153.34 2007 18.60 19.57 4,120,667.18 2008 19.57 15.73 3,918,705.43 2009 15.73 21.25 4,795,673.99 2010 21.25 23.71 5,207,933.54 2011 23.71 24.46 5,522,429.14 2012 24.46 27.28 5,370,333.81 Lord Abbett Mid Cap Value Investment Division (Class B)............ 2012 26.26 27.03 977,900.79 Lord Abbett Mid Cap Value Investment Division (Class E) (formerly Neuberger Berman Mid Cap Value Investment Division) (Class E).... 2012 25.84 26.59 6,561,328.53 Lord Abbett Mid Cap Value Investment Division (Class B) (formerly Neuberger Berman Mid Cap Value Investment Division) (Class B).... 2003 13.49 18.18 832,486.66 Invesco Cap Growth Investment Division (Class E)................... 2004 18.71 21.85 745,718.74 2005 21.85 24.15 2,759,258.03 2006 24.15 26.52 4,556,951.22 2007 26.52 27.03 5,637,167.55 2008 27.03 14.02 5,869,624.31 2009 14.02 20.45 6,093,473.84 2010 20.45 25.46 6,870,168.76 2011 25.46 23.47 7,124,065.55 2012 23.47 25.96 0.00 Met/Artisan Mid Cap Value Investment Division (Class E)............ 2003 23.93 31.30 1,040,971.04 Met/Artisan Mid Cap Value Investment Division (Class B)............ 2004 30.62 33.26 377,040.95 2005 33.26 36.04 1,158,798.80 2006 36.04 39.92 1,544,583.01 2007 39.92 36.63 1,646,083.75 2008 36.63 19.49 1,530,577.09 2009 19.49 27.17 1,570,093.26 2010 27.17 30.80 1,517,144.93 2011 30.80 32.39 1,530,638.68 2012 32.39 35.69 1,486,443.05 Met/Franklin Income Investment Division (Class B) (4/28/2008)...... 2008 9.99 7.99 717,060.40 2009 7.99 10.09 1,736,399.97 2010 10.09 11.14 3,115,137.26 2011 11.14 11.24 4,545,106.28 2012 11.24 12.48 4,504,444.08 Met/Franklin Low Duration Total Return Investment Division (Class B) (5/2/2011).................................................... 2011 9.98 9.77 371,470.99 2012 9.77 10.07 757,543.49 Met/Franklin Mutual Shares Investment Division (Class B) (4/28/2008)...................................................... 2008 9.99 6.60 472,356.75 2009 6.60 8.14 1,350,684.01 2010 8.14 8.93 2,282,456.12 2011 8.93 8.77 2,997,757.80 2012 8.77 9.87 2,797,219.63 Met/Franklin Templeton Founding Strategy Investment Division (Class B) (4/28/2008)............................................ 2008 9.99 7.04 2,102,778.94 2009 7.04 8.93 4,026,633.31 2010 8.93 9.71 4,308,306.30 2011 9.71 9.42 4,215,602.89 2012 9.42 10.80 4,034,161.72
174
Beginning of Number of Year End of Year Accumulation Accumulation Accumulation Units End of Investment Division Year Unit Value Unit Value Year ------------------- ---- ------------ ------------ -------------- Met/Templeton Growth Investment Division (Class B) (4/28/2008)..... 2008 $ 9.99 $ 6.57 235,437.29 2009 6.57 8.61 687,554.56 2010 8.61 9.15 1,068,648.57 2011 9.15 8.42 1,415,850.80 2012 8.42 10.16 1,346,063.32 MetLife Aggressive Strategy Investment Division (Class B).......... 2011 12.27 10.51 3,213,867.32 2012 10.51 12.12 3,174,538.90 MetLife Aggressive Strategy Investment Division (formerly MetLife Aggressive Allocation Investment Division) (Class B) (5/1/2005).. 2005 9.99 11.16 306,141.65 2006 11.16 12.74 1,484,809.90 2007 12.74 13.00 2,807,072.03 2008 13.00 7.64 3,137,332.27 2009 7.64 9.92 3,269,816.84 2010 9.92 11.34 3,262,852.24 2011 11.34 12.30 0.00 MetLife Balanced Plus Investment Division (Class B) (4/30/2012).... 2012 10.01 10.49 85,936,719.25 MetLife Conservative Allocation Investment Division (Class B) (5/1/2005)....................................................... 2005 9.99 10.31 578,943.02 2006 10.31 10.88 1,938,160.76 2007 10.88 11.34 5,674,741.59 2008 11.34 9.59 10,836,517.50 2009 9.59 11.41 17,602,835.04 2010 11.41 12.41 23,163,874.60 2011 12.41 12.65 26,465,409.52 2012 12.65 13.64 27,845,228.02 MetLife Conservative to Moderate Allocation Investment Division (Class B) (5/1/2005)............................................. 2005 9.99 10.52 2,293,499.61 2006 10.52 11.37 10,459,920.40 2007 11.37 11.77 24,715,462.78 2008 11.77 9.11 36,347,326.24 2009 9.11 11.13 49,865,699.83 2010 11.13 12.26 62,047,149.36 2011 12.26 12.24 69,578,602.61 2012 12.24 13.47 68,625,951.23 MetLife Mid Cap Stock Index Investment Division (Class E).......... 2003 8.68 11.55 2,466,067.51 MetLife Mid Cap Stock Index Investment Division (Class B).......... 2004 11.72 13.13 728,656.68 2005 13.13 14.53 2,195,285.87 2006 14.53 15.76 3,611,990.93 2007 15.76 16.74 4,712,683.58 2008 16.74 10.51 5,825,162.10 2009 10.51 14.20 6,981,447.54 2010 14.20 17.67 7,442,901.10 2011 17.67 17.07 8,144,543.01 2012 17.07 19.78 7,896,397.33 MetLife Moderate Allocation Investment Division (Class B) (5/1/2005)....................................................... 2005 9.99 10.75 3,641,353.32 2006 10.75 11.88 22,508,484.97 2007 11.88 12.24 62,197,203.38 2008 12.24 8.63 94,830,810.05 2009 8.63 10.78 131,317,908.56 2010 10.78 12.05 168,769,081.52 2011 12.05 11.74 186,589,260.69 2012 11.74 13.12 179,133,091.06
175
Beginning of Number of Year End of Year Accumulation Accumulation Accumulation Units End of Investment Division Year Unit Value Unit Value Year ------------------- ---- ------------ ------------ ------------- MetLife Moderate to Aggressive Allocation Investment Division (Class B) (5/1/2005)............................................. 2005 $ 9.99 $10.98 2,829,696.46 2006 10.98 12.39 17,897,969.38 2007 12.39 12.70 54,331,986.81 2008 12.70 8.14 81,663,563.59 2009 8.14 10.38 94,187,888.95 2010 10.38 11.75 89,964,106.50 2011 11.75 11.17 86,864,544.96 2012 11.17 12.73 80,829,336.58 MetLife Stock Index Investment Division (Class E).................. 2003 28.06 35.46 2,189,805.85 MetLife Stock Index Investment Division (Class B).................. 2004 34.63 37.56 1,750,875.84 2005 37.56 38.72 5,047,439.87 2006 38.72 44.05 7,044,246.68 2007 44.05 45.66 8,542,859.25 2008 45.66 28.29 10,548,323.10 2009 28.29 35.18 12,672,183.55 2010 35.18 39.78 13,968,745.16 2011 39.78 39.93 14,624,119.22 2012 39.93 45.51 13,800,270.63 MFS(R) Research International Investment Division (Class E)........ 2003 7.31 9.54 378,131.36 MFS(R) Research International Investment Division (Class B)........ 2004 9.79 11.25 141,755.48 2005 11.25 12.94 604,819.44 2006 12.94 16.17 2,068,708.66 2007 16.17 18.09 3,262,143.43 2008 18.09 10.30 5,451,172.86 2009 10.30 13.38 6,574,559.75 2010 13.38 14.72 6,633,116.35 2011 14.72 12.98 6,669,158.46 2012 12.98 14.96 6,199,776.38 MFS(R) Total Return Investment Division (Class B) (5/1/2004)....... 2004 37.71 41.05 119,277.39 2005 41.05 41.69 328,191.42 2006 41.69 46.09 465,431.08 2007 46.09 47.39 692,542.07 2008 47.39 36.34 626,555.67 2009 36.34 42.46 734,187.61 2010 42.46 46.04 800,296.85 2011 46.04 46.45 826,082.65 2012 46.45 51.06 805,689.47 MFS(R) Value Investment Division (Class E)......................... 2003 9.77 12.09 2,688,090.95 MFS(R) Value Investment Division (Class B)......................... 2004 12.23 13.21 1,304,722.64 2005 13.21 12.83 3,878,821.73 2006 12.83 14.93 5,009,373.07 2007 14.93 14.15 5,535,834.88 2008 14.15 9.26 5,163,417.72 2009 9.26 11.03 5,869,418.70 2010 11.03 12.12 7,052,289.57 2011 12.12 12.04 7,522,386.23 2012 12.04 13.83 7,315,037.13 MLA Mid Cap Investment Division (formerly Lazard Mid Cap Investment Division) (Class E)................................... 2003 9.69 12.09 396,340.58
176
Beginning of Number of Year End of Year Accumulation Accumulation Accumulation Units End of Investment Division Year Unit Value Unit Value Year ------------------- ---- ------------ ------------ ------------- MLA Mid Cap Investment Division (formerly Lazard Mid Cap Investment Division) (Class B)................................... 2004 $12.61 $13.63 145,014.30 2005 13.63 14.54 369,364.09 2006 14.54 16.47 693,216.68 2007 16.47 15.83 1,336,971.62 2008 15.83 9.64 1,227,543.36 2009 9.64 13.02 1,384,640.85 2010 13.02 15.80 1,392,901.19 2011 15.80 14.78 1,486,644.47 2012 14.78 15.37 1,344,367.91 MSCI EAFE(R) Index Investment Division (formerly Morgan Stanley EAFE(R) Index Investment Division) (Class E)..................... 2003 7.12 9.65 3,114,501.40 MSCI EAFE(R) Index Investment Division (formerly Morgan Stanley EAFE(R) Index Investment Division) (Class B)..................... 2004 9.64 11.22 1,310,419.46 2005 11.22 12.51 3,920,106.79 2006 12.51 15.51 5,695,313.60 2007 15.51 16.92 7,382,320.70 2008 16.92 9.66 9,419,926.46 2009 9.66 12.24 11,163,950.75 2010 12.24 13.04 12,685,686.41 2011 13.04 11.25 14,595,718.30 2012 11.25 13.11 14,435,971.24 Morgan Stanley Mid Cap Growth Investment Division (Class B)........ 2010 13.13 15.26 2,487,134.48 2011 15.26 14.03 2,843,297.98 2012 14.03 15.14 2,692,713.11 Morgan Stanley Mid Cap Growth Investment Division (formerly FI Mid Cap Opportunities Investment Division (Class B))................. 2004 14.81 16.69 195,292.90 2005 16.69 17.58 550,747.76 2006 17.58 19.37 1,043,827.16 2007 19.37 20.68 1,436,202.13 2008 20.68 9.10 1,753,470.54 2009 9.10 12.00 2,335,775.65 2010 12.00 12.99 0.00 Morgan Stanley Mid Cap Growth Investment Division (formerly FI Mid Cap Opportunities Investment Division (Class E))................. 2003 11.04 14.68 490,905.38 2004 14.68 16.96 1,349,674.49 2005 16.96 17.87 1,259,761.54 2006 17.87 19.71 1,190,252.12 2007 19.71 21.06 1,052,899.12 2008 21.06 9.27 980,681.78 2009 9.27 12.25 929,395.27 2010 12.25 13.27 0.00 Neuberger Berman Genesis Investment Division (Class B)............. 2004 16.20 18.24 1,029,329.75 2005 18.24 18.72 2,350,319.89 2006 18.72 21.53 3,429,455.89 2007 21.53 20.48 3,851,949.52 2008 20.48 12.42 3,625,580.48 2009 12.42 13.84 3,679,793.07 2010 13.84 16.59 3,382,746.43 2011 16.59 17.29 3,242,629.17 2012 17.29 18.74 3,027,293.41
177
Beginning of Number of Year End of Year Accumulation Accumulation Accumulation Units End of Investment Division Year Unit Value Unit Value Year ------------------- ---- ------------ ------------ ------------- Oppenheimer Global Equity Investment Division (Class E)............ 2003 $10.17 $13.10 406,709.15 Oppenheimer Global Equity Investment Division (Class B)............ 2004 12.89 14.88 105,601.25 2005 14.88 17.04 579,290.68 2006 17.04 19.59 1,334,400.29 2007 19.59 20.55 1,761,289.24 2008 20.55 12.06 1,967,019.42 2009 12.06 16.66 2,530,763.05 2010 16.66 19.07 3,078,106.91 2011 19.07 17.25 3,539,470.40 2012 17.25 20.64 3,291,982.18 PIMCO Inflation Protected Bond Investment Division (Class B) (5/1/2006)....................................................... 2006 11.04 11.16 595,123.74 2007 11.16 12.21 1,865,528.17 2008 12.21 11.23 8,801,830.82 2009 11.23 13.09 14,097,736.84 2010 13.09 13.93 18,853,712.18 2011 13.93 15.29 22,060,834.54 2012 15.29 16.48 23,103,607.27 PIMCO Total Return Investment Division (Class E)................... 2003 11.29 11.65 4,544,053.32 PIMCO Total Return Investment Division (Class B)................... 2004 11.72 12.16 1,912,529.08 2005 12.16 12.28 6,758,354.02 2006 12.28 12.67 9,627,248.36 2007 12.67 13.46 11,407,084.04 2008 13.46 13.35 13,686,460.81 2009 13.35 15.56 21,012,926.60 2010 15.56 16.62 29,547,685.64 2011 16.62 16.94 32,720,206.08 2012 16.94 18.28 33,459,538.47 Pyramis(R) Government Income Investment Division (Class B) (4/30/2012)...................................................... 2012 10.78 10.96 32,068,305.21 RCM Technology Investment Division (Class E)....................... 2003 2.97 4.62 1,637,949.51 RCM Technology Investment Division (Class B)....................... 2004 4.18 4.36 327,216.18 2005 4.36 4.78 700,834.84 2006 4.78 4.98 1,303,161.54 2007 4.98 6.46 3,643,893.87 2008 6.46 3.54 3,951,772.02 2009 3.54 5.57 6,605,032.05 2010 5.57 7.02 7,452,605.10 2011 7.02 6.25 8,293,969.11 2012 6.25 6.92 7,942,344.23 Russell 2000(R) Index Investment Division (Class E)................ 2003 9.43 13.60 1,535,666.47 Russell 2000(R) Index Investment Division (Class B)................ 2004 13.58 15.56 523,546.85 2005 15.56 16.03 1,502,294.21 2006 16.03 18.61 2,585,775.71 2007 18.61 18.07 3,079,763.14 2008 18.07 11.83 3,245,644.32 2009 11.83 14.69 3,896,039.18 2010 14.69 18.36 4,040,992.74 2011 18.36 17.36 4,329,427.86 2012 17.36 19.89 4,195,443.26 Schroders Global Multi-Asset Investment Division (Class B) (4/30/2012)...................................................... 2012 1.01 1.06 67,974,801.15
178
Beginning of Number of Year End of Year Accumulation Accumulation Accumulation Units End of Investment Division Year Unit Value Unit Value Year ------------------- ---- ------------ ------------ ------------- SSgA Growth ETF Investment Division (Class B) (5/1/2006)........... 2006 $10.71 $11.43 139,058.25 2007 11.43 11.92 536,203.16 2008 11.92 7.89 377,748.91 2009 7.89 10.06 3,058,162.85 2010 10.06 11.35 4,291,610.98 2011 11.35 10.97 4,758,320.83 2012 10.97 12.46 5,212,125.54 SSgA Growth and Income ETF Investment Division (Class B) (5/1/2006) 2006 10.52 11.18 94,584.11 2007 11.18 11.63 196,239.06 2008 11.63 8.61 564,644.37 2009 8.61 10.62 9,979,215.54 2010 10.62 11.77 27,821,570.04 2011 11.77 11.75 39,524,198.83 2012 11.75 13.09 40,225,522.76 T. Rowe Price Large Cap Growth Investment Division (Class E)....... 2003 8.76 11.30 794,026.43 T. Rowe Price Large Cap Growth Investment Division (Class B)....... 2004 11.25 12.21 551,747.60 2005 12.21 12.82 1,706,948.80 2006 12.82 14.29 2,574,599.46 2007 14.29 15.41 3,515,295.61 2008 15.41 8.82 3,604,235.54 2009 8.82 12.46 3,970,534.93 2010 12.46 14.37 3,678,828.63 2011 14.37 14.00 3,523,915.22 2012 14.00 16.41 3,395,403.28 T. Rowe Price Mid Cap Growth Investment Division (Class E)......... 2003 4.56 6.17 921,458.24 T. Rowe Price Mid Cap Growth Investment Division (Class B)......... 2004 6.30 7.15 529,644.79 2005 7.15 8.10 1,695,381.23 2006 8.10 8.49 3,268,219.53 2007 8.49 9.86 5,090,130.40 2008 9.86 5.87 6,860,173.97 2009 5.87 8.43 8,896,812.31 2010 8.43 10.63 10,543,521.65 2011 10.63 10.33 11,726,128.73 2012 10.33 11.60 11,397,693.54 T. Rowe Price Small Cap Growth Investment Division (Class E)....... 2003 8.80 12.22 500,675.63 T. Rowe Price Small Cap Growth Investment Division (Class B)....... 2004 12.51 13.35 169,438.00 2005 13.35 14.60 639,929.00 2006 14.60 14.94 1,140,830.69 2007 14.94 16.16 1,319,130.58 2008 16.16 10.16 1,553,144.93 2009 10.16 13.92 1,973,633.33 2010 13.92 18.51 2,914,342.13 2011 18.51 18.54 3,448,513.28 2012 18.54 21.23 3,334,995.65 Western Asset Management Strategic Bond Opportunities Investment Division (Class E)............................................... 2003 17.34 19.26 1,097,298.95
179
Beginning of Number of Year End of Year Accumulation Accumulation Accumulation Units End of Investment Division Year Unit Value Unit Value Year ------------------- ---- ------------ ------------ ------------ Western Asset Management Strategic Bond Opportunities Investment Division (Class B)............................................... 2004 $ 18.92 $ 20.08 516,840.38 2005 20.08 20.34 2,362,619.16 2006 20.34 21.06 4,193,499.21 2007 21.06 21.56 5,163,420.43 2008 21.56 18.05 4,354,047.28 2009 18.05 23.51 4,288,945.49 2010 23.51 26.12 4,249,228.87 2011 26.12 27.30 3,809,961.74 2012 27.30 30.00 3,545,424.51 Western Asset Management U.S. Government Investment Division (Class E)........................................................ 2003 15.87 15.91 1,650,276.43 Western Asset Management U.S. Government Investment Division (Class B)........................................................ 2004 15.64 16.03 792,980.55 2005 16.03 16.05 2,828,550.05 2006 16.05 16.47 4,232,158.83 2007 16.47 16.92 5,021,955.31 2008 16.92 16.62 4,769,314.77 2009 16.62 17.08 5,880,515.48 2010 17.08 17.80 6,431,005.46 2011 17.80 18.50 6,310,303.78 2012 18.50 18.83 6,276,242.56 At 1.50 Separate Account Charge: American Funds Bond Investment Division (Class 2)(k)............... 2006 14.69 15.41 1,384,257.31 2007 15.41 15.68 4,872,016.01 2008 15.68 14.00 4,398,070.70 2009 14.00 15.53 4,993,122.00 2010 15.53 16.29 4,748,102.21 2011 16.29 17.03 4,256,384.37 2012 17.03 17.67 3,985,089.74 American Funds Global Small Capitalization Investment Division (Class 2)........................................................ 2004 16.28 19.38 559,036.42 2005 19.38 23.94 1,993,369.67 2006 23.94 29.25 3,865,644.25 2007 29.25 34.99 5,518,755.68 2008 34.99 16.02 6,340,014.81 2009 16.02 25.46 7,376,589.98 2010 25.46 30.70 7,743,762.55 2011 30.70 24.45 8,041,761.60 2012 24.45 28.46 7,363,012.38 American Funds Growth Investment Division (Class 2)................ 2004 113.13 125.36 321,875.82 2005 125.36 143.50 1,076,810.53 2006 143.50 155.82 1,897,452.19 2007 155.82 172.44 2,357,806.14 2008 172.44 95.17 2,786,511.47 2009 95.17 130.70 2,969,105.42 2010 130.70 152.81 2,777,826.76 2011 152.81 144.10 2,598,642.84 2012 144.10 167.34 2,346,742.21
180
Beginning of Number of Year End of Year Accumulation Accumulation Accumulation Units End of Investment Division Year Unit Value Unit Value Year ------------------- ---- ------------ ------------ ------------ American Funds Growth-Income Investment Division (Class 2)......... 2004 $ 88.04 $ 95.72 337,328.74 2005 95.72 99.80 1,024,224.45 2006 99.80 113.26 1,585,446.89 2007 113.26 117.20 1,989,561.74 2008 117.20 71.75 2,053,174.67 2009 71.75 92.76 2,337,384.35 2010 92.76 101.82 2,535,035.68 2011 101.82 98.48 2,636,733.23 2012 98.48 113.96 2,481,403.31
----------- The assets of the Oppenheimer Capital Appreciation Investment Division of the Met Investors Fund were merged into the Jennison Growth Investment Division of the Metropolitan Fund on April 30, 2012. Accumulation Unit Values prior to April 30, 2012 are those of the Oppenheimer Capital Appreciation Investment Division. The assets of the Lord Abbett Mid Cap Value Investment Division (formerly the Neuberger Berman Mid Cap Value Division) of the Metropolitan Fund were merged into the Lord Abbett Mid Cap Value Investment Division of the Met Investors Fund on April 30, 2012. Accumulation Unit Values prior to April 30, 2012 are those of the Lord Abbett Mid Cap Value Investment Division of the Metropolitan Fund. The assets of Legg Mason Value Equity Investment Division of the Met Investors Fund were merged into the Legg Mason ClearBridge Aggressive Growth Investment Division of the Met Investors Fund on May 2, 2011. Accumulation Unit Values prior to May 2, 2011 are those of the Legg Mason Value Equity Investment Division. The assets of MetLife Aggressive Allocation Investment Division of the Metropolitan Fund were merged into the MetLife Aggressive Strategy Investment Division of the Met Investors Fund on May 2, 2011. Accumulation Unit Values prior to May 2, 2011 are those of the MetLife Aggressive Allocation Investment Division. The assets of FI Mid Cap Opportunities Investment Division of the Metropolitan Fund were merged into the Morgan Stanley Mid Cap Growth Investment Division of the Met Investors Fund on May 3, 2010. Accumulation Unit Values prior to May 3, 2010 are those of FI Mid Cap Opportunities Investment Division. The assets of FI Large Cap Investment Division of the Metropolitan Fund were merged into the BlackRock Legacy Large Cap Growth Investment Division of the Metropolitan Fund on May 1, 2009. Accumulation Unit Values prior to May 1, 2009 are those of the FI Large Cap Investment Division. The assets of BlackRock Large Cap Investment Division (formerly BlackRock Investment Trust Investment Division) of the Metropolitan Fund were merged into the BlackRock Large Cap Core Investment Division of the Met Investors Fund on April 30, 2007. Accumulation Unit Values prior to April 30, 2007 are those of the BlackRock Large Cap Investment Division. The assets of the MFS(R) Investors Trust Investment Division of the Metropolitan Fund were merged into the Legg Mason Value Equity Investment Division of the Met Investors Fund prior to the opening of business on May 1, 2006. Accumulation Unit Values prior to May 1, 2006 are those of MFS(R) Investors Trust Investment Division. The assets in Met/Putnam Voyager Investment Division of the Metropolitan Fund were merged into Jennison Growth Investment Division of the Metropolitan Fund prior to the opening of business on May 2, 2005. The Met/Putnam Voyager Investment Division is no longer available. The Investment Division of the Metropolitan Fund with the name FI Mid Cap Opportunities was merged into the Janus Mid Cap Investment Division of the Metropolitan Fund prior to the opening of business on May 3, 2004 and was renamed FI Mid Cap Opportunities. The Investment Division with the name FI Mid Cap Opportunities on April 30, 2004 ceased to exist. The Accumulation Unit Values history prior to May 1, 2004 is that of the Janus Mid Cap Investment Division. The assets of the Janus Growth Investment Division of the Metropolitan Fund were merged into the Janus Aggressive Growth Investment Division of the Met Investors Fund on April 28, 2003. Accumulation Unit Values prior to April 28, 2003 are those of Janus Growth Investment Division. * We are waiving a portion of the Separate Account charge for the Investment Division investing in the BlackRock Large Cap Core Portfolio. + The Accumulation Unit Values for this American Funds(R) Investment Division are calculated with an additional .15% Separate Account charge which was in effect prior to May 1, 2004 Please see the Table of Expenses for more information. 181 APPENDIX C PORTFOLIO LEGAL NAMES AND MARKETING NAMES
SERIES FUND/TRUST LEGAL NAME OF PORTFOLIO SERIES MARKETING NAME American Funds Insurance Series(R) Bond Fund American Funds Bond Fund American Funds Insurance Series(R) Global Small Capitalization Fund American Funds Global Small Capitalization Fund American Funds Insurance Series(R) Growth - Income Fund American Funds Growth-Income Fund American Funds Insurance Series(R) Growth Fund American Funds Growth Fund
182 APPENDIX D ADDITIONAL INFORMATION REGARDING THE PORTFOLIOS The Portfolios below were subject to a merger or name change. The chart identifies the former name and new name of each of these Portfolios. PORTFOLIO MERGERS
FORMER PORTFOLIO NEW PORTFOLIO ---------------- ------------- MET INVESTORS FUND MET INVESTORS FUND Met/Franklin Loomis Sayles Income Portfolio Global Markets Portfolio Met/Franklin MetLife Growth Templeton Strategy Portfolio Founding Strategy Portfolio Met/Templeton Oppenheimer Growth Portfolio Global Equity Portfolio METROPOLITAN FUND METROPOLITAN FUND FI Value MFS(R) Value Leaders Portfolio Portfolio MET INVESTORS FUND METROPOLITAN FUND Met/Franklin MFS(R) Value Mutual Shares Portfolio Portfolio MLA Mid Cap Neuberger Portfolio Berman Genesis Portfolio RCM Technology T. Rowe Price Portfolio Large Cap Growth Portfolio METROPOLITAN FUND MET INVESTORS FUND Oppenheimer Oppenheimer Global Equity Global Equity Portfolio Portfolio
PORTFOLIO NAME CHANGES
FORMER PORTFOLIO NEW PORTFOLIO ---------------- ------------- MET INVESTORS FUND MET INVESTORS FUND Lazard Mid Cap MLA Mid Cap Portfolio Portfolio Legg Mason ClearBridge Aggressive Growth Portfolio ClearBridge Aggressive Growth Portfolio METROPOLITAN FUND METROPOLITAN FUND Barclays Barclays Aggregate Bond Index Portfolio Capital Aggregate Bond Index Portfolio BlackRock Frontier Mid Cap Growth Portfolio Aggressive Growth Portfolio BlackRock BlackRock Capital Appreciation Portfolio Legacy Large Cap Growth Portfolio
183 Request For a Statement of Additional Information/Change of Address If You would like any of the following Statements of Additional Information, or have changed your address, please check the appropriate box below and return to the address below. [_] Metropolitan Life Separate Account E [_] Metropolitan Series Fund [_] Met Investors Series Trust [_] American Funds Insurance Series(R) [_] I have changed my address. My current address is: _________________ Name _______________________________________________________ (Contract Number) Address ____________________________________________________ _________________ _____________________________________________________ (Signature) zip Metropolitan Life Insurance Company Attn: Fulfillment Unit - PPS P.O. Box 10342 Des Moines, IA 50306-0342 184 METROPOLITAN LIFE INSURANCE COMPANY METROPOLITAN LIFE SEPARATE ACCOUNT E PREFERENCE PLUS SELECT(R) VARIABLE ANNUITY CONTRACTS STATEMENT OF ADDITIONAL INFORMATION FORM N-4 PART B April 29, 2013 This Statement of Additional Information is not a prospectus but contains information in addition to and more detailed than that set forth in the Prospectus for Preference Plus Select Deferred Variable Annuities dated April 29, 2013 and should be read in conjunction with the Prospectus. Copies of the Prospectus may be obtained from Metropolitan Life insurance Company, Attn: Fulfillment Unit-PPS, P.O. Box 10342, Des Moines, IA 50306-0342. A Statement of Additional Information for the Metropolitan Series Fund ("Metropolitan Fund"), the Met Investors Series Trust ("Met Investors Fund") and the American Funds Insurance Series(R) ("American Funds(R)") are attached at the end of this Statement of Additional Information. Unless otherwise indicated, the Statement of Additional Information continues the use of certain terms as set forth in the section entitled "Important Terms You Should Know" of the Prospectus for Preference Plus Select Contracts dated April 29, 2013. TABLE OF CONTENTS
PAGE ---- Independent Registered Public Accounting Firm..... 2 Principal Underwriter............................. 2 Distribution and Principal Underwriting Agreement. 2 Experience Factor................................. 2 Variable Income Payments.......................... 3 Calculating the Annuity Unit Value................ 5 Advertisement of the Separate Account............. 6 Voting Rights..................................... 9 ERISA............................................. 10 Taxes--SIMPLE IRAs Eligibility and Contributions.. 11 Withdrawals....................................... 11 Accumulation Unit Values Tables................... 12 Financial Statements of Separate Account.......... 1 Financial Statements of MetLife................... F-1
1 INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM The financial statements and financial highlights comprising each of the Investment Divisions of Metropolitan Life Separate Account E included in this Statement of Additional Information, have been audited by Deloitte & Touche LLP, an independent registered public accounting firm, as stated in their report appearing herein. Such financial statements and financial highlights are included in reliance upon the report of such firm given upon their authority as experts in accounting and auditing. The consolidated financial statements of Metropolitan Life Insurance Company and subsidiaries (the "Company"), included in this Statement of Additional Information, have been audited by Deloitte & Touche LLP, independent auditors, as stated in their report appearing herein (which report expresses an unmodified opinion and includes an emphasis-of-matter paragraph referring to changes in the Company's method of accounting for deferred policy acquisition costs as required by accounting guidance adopted on January 1, 2012 and the Company's reorganization of its segments in 2012). Such financial statements are included in reliance upon the report of such firm given upon their authority as experts in accounting and auditing. The principal business address of Deloitte & Touche LLP is Two World Financial Center, New York, New York 10281-1414. 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 "Who Sells the Deferred Annuities"). 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 ---- ----------------------------- --------------------------- 2012...... $201,775,422 $0 2011...... $222,177,300 $0 2010...... $173,815,499 $0
EXPERIENCE FACTOR We use the term "experience factor" to describe the investment performance for an Investment Division. We calculate Accumulation Unit Values once a day on every day the New York Stock Exchange is open for trading. We call the time between two consecutive Accumulation Unit Value calculations the "Valuation Period". We 2 have the right to change the basis for the Valuation Period, on 30 days' notice, as long as it is consistent with law. All purchase payments and transfers are valued as of the end of the Valuation Period during which the transaction occurred. The experience factor changes from Valuation Period to Valuation Period to reflect the upward or downward performance of the assets in the underlying Portfolios. The experience factor is calculated as of the end of each Valuation Period using the net asset value per share of the underlying Portfolio. The net asset value includes the per share amount of any dividend or capital gain distribution paid by the Portfolio during the current Valuation Period, and subtracts any per share charges for taxes and reserve for taxes. We then divide that amount by the net asset value per share as of the end of the last Valuation Period to obtain a factor that reflects investment performance. We then subtract a charge for each day in the Valuation Period which is the daily equivalent of the Separate Account charge. This charge varies, depending on the class of the Deferred Annuity. Below is a chart of the daily factors for each class of the Deferred Annuity and the various death benefits and Earnings Preservation Benefit: Separate Account charges for all Investment Divisions except American Funds Growth-Income, American Funds Growth and American Funds Global Small Capitalization (Daily Factor)
BONUS CLASS B CLASS (YEARS 1-7)* C CLASS L CLASS ----------- ------------ ----------- ----------- Basic Death Benefit............................. 0.000034247 0.000046575 0.000045205 0.000041096 Annual Step-Up Death Benefit.................... 0.000039726 0.000052055 0.000050685 0.000046575 Greater of Annual Step-Up or 5% Annual Increase Death Benefit................................. 0.000043836 0.000056164 0.000054795 0.000050685 Additional Charge for Earnings Preservation Benefit....................................... 0.000006849 0.000006849 0.000006849 0.000006849
-------- * Applies only for the first seven years; Separate Account charges are reduced after seven years to those of B Class. Separate Account charges for the American Funds Growth-Income, American Funds Growth and American Funds Global Small Capitalization Investment Divisions (Daily Factor)
BONUS CLASS B CLASS (YEARS 1-7)* C CLASS L CLASS ----------- ------------ ----------- ----------- Basic Death Benefit............................. 0.000041096 0.000053425 0.000052055 0.000047945 Annual Step-Up Death Benefit.................... 0.000046575 0.000058904 0.000057534 0.000053425 Greater of Annual Step-Up or 5% Annual Increase Death Benefit................................. 0.000050685 0.000063014 0.000061644 0.000057534 Additional Charge for Earnings Preservation Benefit....................................... 0.000006849 0.000006849 0.000006849 0.000006849
-------- * Applies only for the first seven years; Separate Account charges are reduced after seven years to those of B Class. VARIABLE INCOME PAYMENTS ASSUMED INVESTMENT RETURN (AIR) The following discussion concerning the amount of variable income payments is based on an Assumed Investment Return of 4% per year. It should not be inferred that such rates will bear any relationship to the actual net investment experience of the Separate Account. AMOUNT OF INCOME PAYMENTS The cash You receive periodically from an Investment Division (after Your first payment if paid within 10 days of the issue date) will depend upon the number of annuity units held in that Investment Division (described below) and the Annuity Unit Value (described later) as of the 10th day prior to a payment date. 3 The Deferred Annuity specifies the dollar amount of the initial variable income payment for each Investment Division (this equals the first payment amount if paid within 10 days of the issue date). This initial variable income payment is computed based on the amount of the purchase payment applied to the specific Investment Division (net any applicable premium tax owed or Contract charge), the AIR, the age and/or sex of the measuring lives and the income payment type selected. The initial payment amount is then divided by the Annuity Unit Value for the Investment Division to determine the number of annuity units held in that Investment Division. The number of annuity units held remains fixed for the duration of the Contract if no reallocating are made. The dollar amount of subsequent variable income payments will vary with the amount by which investment performance is greater or lesser than the AIR and Separate Account charges. Each Deferred Annuity provides that, when a pay-out option is chosen, the payment will not be less than the payment produced by the then current Fixed Income Option purchase rates for that Contract class. The purpose of this provision is to assure the owner that, at retirement, if the Fixed Income Option purchase rates for new contracts are significantly more favorable than the rates guaranteed by a Deferred Annuity of the same class, the owner will be given the benefit of the higher rates. Although guaranteed annuity rates for the Bonus Class are the same as for the other classes of the Deferred Annuity, current rates for the Bonus Class may be lower than the other classes of the Deferred Annuity and may be less than the currently issued Contract rates. ANNUITY UNIT VALUE The Annuity Unit Value is calculated at the same time that the Accumulation Unit Value for Deferred Annuities is calculated and is based on the same change in investment performance in the Separate Account. (See "The Value of Your Income Payments" in the Prospectus.) REALLOCATION PRIVILEGE The annuity purchase rate is the dollar amount You would need when You annuitize Your Deferred Annuity to receive $1 per payment period. For example, if it would cost $50 to buy an annuity that pays You $1 a month for the rest of Your life, then the annuity purchase rate for that life income annuity is $50. The annuity purchase rate is based on the annuity income payment type You choose, an interest rate, and Your age, sex (where permitted) and number of payments remaining. The annuity purchase rate is reset each valuation date to reflect any changes in these components. The reset annuity purchase rate represents the cost You would incur if You were choosing the same income option You have in light of this updated information. When You request a reallocation from an Investment Division to the Fixed Income Option, the payment amount will be adjusted at the time of reallocation. Your payment may either increase or decrease due to this adjustment. The adjusted payment will be calculated in the following manner. . First, We update the income payment amount to be reallocated from the Investment Division based upon the applicable Annuity Unit Value at the time of the reallocation; . Second, We use the AIR to calculate an updated annuity purchase rate based upon Your age, if applicable, and expected future income payments at the time of the reallocation; . Third, We calculate another updated annuity purchase rate using Our current annuity purchase rates for the Fixed Income Option on the date of Your reallocation; . Finally, We determine the adjusted payment amount by multiplying the updated income amount determined in the first step by the ratio of the annuity purchase rate determined in the second step divided by the annuity purchase rate determined in the third step. 4 When You request a reallocation from one Investment Division to another, annuity units in one Investment Division are liquidated and annuity units in the other Investment Division are credited to You. There is no adjustment to the income payment amount. Future income payment amounts will be determined based on the Annuity Unit Value for the Investment Division to which You have reallocated. You generally may make a reallocation on any day the Exchange is open. At a future date We may limit the number of reallocations You may make, but never to fewer than one a month. If We do so, We will give You advance written notice. We may limit a Beneficiary's ability to make a reallocation. Here are examples of the effect of a reallocation on the income payment: . Suppose You choose to reallocate 40% of Your income payment supported by Investment Division A to the Fixed Income Option and the recalculated income payment supported by Investment Division A is $100. Assume that the updated annuity purchase rate based on the AIR is $125, while the updated annuity purchase rate based on fixed income annuity pricing is $100. In that case, Your income payment from the Fixed Income Option will be increased by $40 x ($125/$100) or $50, and Your income payment supported by Investment Division A will be decreased by $40. (The number of annuity units in Investment Division A will be decreased as well.) . Suppose You choose to reallocate 40% of Your income payment supported by Investment Division A to Investment Division B and the recalculated income payment supported by Investment Division A is $100. Then, Your income payment supported by Investment Division B will be increased by $40 and Your income payment supported by Investment Division A will be decreased by $40. (Changes will also be made to the number of annuity units in both Investment Divisions as well.) CALCULATING THE ANNUITY UNIT VALUE We calculate Annuity Unit Values once a day on every day the New York Stock Exchange is open for trading. We call the time between two consecutive Annuity Unit Value calculations the "Valuation Period." We have the right to change the basis for the Valuation Period, on 30 days' notice, as long as it is consistent with the law. All purchase payments and reallocations are valued as of the end of the Valuation Period during which the transaction occurred. The Annuity Unit Values can increase or decrease, based on the investment performance of the corresponding underlying Portfolios. If the investment performance is positive, after payment of Separate Account expenses and the deduction for the AIR, Annuity Unit Values will go up. Conversely, if the investment performance is negative, after payment of Separate Account expenses and the deduction for the AIR, Annuity Unit Values will go down. To calculate an Annuity Unit Value, We first multiply the experience factor for the period by a factor based on the AIR and the number of days in the Valuation Period. For an AIR of 4% and a one day Valuation Period, the factor is .99989255, which is the daily discount factor for an effective annual rate of 4%. (The AIR may be in the range of 3% to 6%, as defined in Your Deferred Annuity and the laws in Your state.) The resulting number is then multiplied by the last previously calculated Annuity Unit Value to produce the new Annuity Unit Value. The following illustrations show, by use of hypothetical examples, the method of determining the Annuity Unit Value and the amount of variable income payments upon annuitization. ILLUSTRATION OF CALCULATION OF ANNUITY UNIT VALUE 1. Annuity Unit Value, beginning of period........... $ 10.20000 2. "Experience factor" for period.................... 1.023558 3. Daily adjustment for 4% Assumed Investment Return. .99989255 4. (2) X (3)......................................... 1.023448 5. Annuity Unit Value, end of period (1) X (4)....... $ 10.43917
5 ILLUSTRATION OF ANNUITY PAYMENTS (ASSUMES THE FIRST MONTHLY PAYMENT IS MADE WITHIN 10 DAYS OF THE ISSUE DATE OF THE INCOME ANNUITY) ANNUITANT AGE 65, LIFE ANNUITY WITH 120 PAYMENTS GUARANTEED 1. Number of Accumulation Units as of Annuity Date.................................... 1,500.00 2. Accumulation Unit Value............................................................ $ 11.80000 3. Accumulation Unit Value of the Deferred Annuity (1) X (2).......................... $17,700.00 4. First monthly income payment per $1,000 of Accumulation Value...................... $ 5.63 5. First monthly income payment (3) X (4) / 1,000..................................... $ 99.65 6. Assume Annuity Unit Value as of Annuity Date equal to.............................. $ 10.80000 7. Number of Annuity Units (5) / (6).................................................. 9.2269 8. Assume Annuity Unit Value for the second month equal to (10 days prior to payment). $ 10.97000 9. Second monthly Annuity Payment (7) X (8)........................................... $ 101.22 10. Assume Annuity Unit Value for third month equal to................................ $ 10.52684 11. Next monthly Annuity Payment (7) X (10)........................................... $ 97.13
DETERMINING THE VARIABLE INCOME PAYMENT Variable income payments can go up or down based upon the investment performance of the Investment Divisions in the Separate Account. AIR is the rate used to determine the first variable income payment and serves as a benchmark against which the investment performance of the Investment Divisions is compared. The higher the AIR, the higher the first variable income payment will be. Subsequent variable income payments increase only to the extent that the investment performance of the Investment Divisions exceeds the AIR (and Separate Account charges). Variable income payments will decline if the investment performance of the Separate Account does not exceed the AIR (and Separate Account charges). A lower AIR will result in a lower first variable income payment, but variable income payments will increase more rapidly or decline more slowly due to investment performance of the Investment Divisions. ADVERTISEMENT OF THE SEPARATE ACCOUNT From time to time We advertise the performance of various Separate Account Investment Divisions. For the Investment Divisions, this performance will be stated in terms of either "yield", "change in Accumulation Unit Value," "change in Annuity Unit Value" or "average annual total return" or some combination of the foregoing. Yield, change in Accumulation Unit Value, change in Annuity Unit Value and average annual total return figures are based on historical earnings and are not intended to indicate future performance. Yield figures quoted in advertisements state the net income generated by an investment in a particular Investment Division for a thirty-day period or month, which is specified in the advertisement, and then expressed as a percentage yield of that investment. Yield is calculated by dividing the net investment income per share earned during the period by the maximum offering price per share on the last day of the period, according to this formula 2[(a-b/cd+1)/6/-1], where "a" represents dividends and interest earned during the period; "b" represents expenses accrued for the period (net of reimbursements); "c" represents the average daily number of shares outstanding during the period that were entitled to receive dividends; and "d" represents the maximum offering price per share on the last day of the period. This percentage yield is then compounded semiannually. For the money market Investment Division, We state yield for a seven day period. Change in Accumulation Unit Value or Annuity Unit Value ("Non-Standard Performance") refers to the comparison between values of accumulation units or annuity units over specified periods in which an Investment Division has been in operation, expressed as a percentages and may also be expressed as an annualized figure. In addition, change in Accumulation Unit Value or Annuity Unit Value may be used to illustrate performance for a hypothetical investment (such as $10,000) over the time period specified. Change in Accumulation Unit Value is expressed by this formula [UV\1\/UV\0\ (annualization factor)]-1, where UV\1\ represents the current unit value and UV\0\ represents the prior unit value. The annualization factor can be 6 either (1/number of years) or (365/number of days). Yield and change in Accumulation Unit Value figures do not reflect the possible imposition of a withdrawal charge for the Deferred Annuities, of up to 9% of the amount withdrawn attributable to a purchase payment, which may result in a lower figure being experienced by the investor. Average annual total return ("Standard Performance") differs from the change in Accumulation Unit Value and Annuity Unit Value because it assumes a steady rate of return and reflects all expenses and applicable withdrawal charges. Average annual total return is calculated by finding the average annual compounded rates of return over the 1-, 5-, and 10-year periods that would equate the initial amount invested to the ending redeemable value, according to this formula P(1+T)/n/=ERV, where "P" represents a hypothetical initial payment of $1,000; "T" represents average annual total return; "n" represents number of years; and "ERV" represents ending redeemable value of a hypothetical $1,000 payment made at the beginning of 1-, 5-, or 10-year periods at the end of the 1-, 5-, or 10- year period (or fractional portion). Performance figures will vary among the various classes of the Deferred Annuities and the Investment Divisions as a result of different Separate Account charges and withdrawal charges since the Investment Division inception date, which is the date the corresponding Portfolio or predecessor Portfolio was first offered under the Separate Account that funds the Deferred Annuity. Performance may be calculated based upon historical performance of the underlying Portfolios of the Metropolitan Fund, Met Investors Fund, and American Funds and may assume that the Deferred Annuities were in existence prior to their inception date. After the inception date, actual accumulation unit or annuity unit data is used. Historical performance information should not be relied on as a guarantee of future performance results. Advertisements regarding the Separate Account may contain comparisons of hypothetical after-tax returns of currently taxable investments versus returns of tax deferred investments. From time to time, the Separate Account may compare the performance of its Investment Divisions with the performance of common stocks, long-term government bonds, long-term corporate bonds, intermediate-term government bonds, Treasury Bills, certificates of deposit and savings accounts. The Separate Account may use the Consumer Price Index in its advertisements as a measure of inflation for comparison purposes. From time to time, the Separate Account may advertise its performance ranking among similar investments or compare its performance to averages as compiled by independent organizations, such as Lipper Analytical Services, Inc., Morningstar, Inc., VARDS(R) and The Wall Street Journal. The Separate Account may also advertise its performance in comparison to appropriate indices, such as the Standard & Poor's 500 Composite Stock Price Index, the Standard & Poor's Mid Cap 400 Index, the Standard & Poor's North American Technology Sector Index, the Standard & Poor's North American Natural Resources Sector Index, the S&P/LSTA Leveraged Loan Index, the Russell 3000 Growth Index, the Russell 3000 Value Index, the Russell 2000(R) Index, the Russell MidCap Index, the Russell MidCap Growth Index, the Russell MidCap Value Index, the Russell 2000(R) Growth Index, the Russell 2000(R) Value Index, the Russell 1000 Index, the Russell 1000 Growth Index, the Russell 1000 Value Index, the NASDAQ Composite Index, the MSCI World Index, the MSCI All Country World Index, the MSCI All Country World ex-U.S. Index, the MSCI World ex-U.S. Small Cap Index, the MSCI All Country World Small Cap Index, the MSCI U.S. Small Cap Growth Index, the MSCI Emerging Markets Index, the MSCI EAFE(R) Index, the Lipper Intermediate Investment Grade Debt Funds Average, the Lipper Global Small-Cap Funds Average, the Lipper Capital Appreciation Funds Index, the Lipper Growth Funds Index, the Lipper Growth & Income Funds Index, the Dow Jones Moderate Index, the Dow Jones Moderately Aggressive Index, the Dow Jones Moderately Conservative Index, the Dow Jones Aggressive Index, the Dow Jones Conservative Index, the Dow Jones U.S. Small-Cap Total Stock Market Index, the Citigroup World Government Bond Index, the Citigroup World Government Bond Index (WGBI) ex-U.S., the Barclays U.S. Aggregate Bond Index, the Barclays U.S. Credit Index, the Barclays U.S. Government/Credit 1-3 Year Index, the Barclays U.S. TIPS Index, the Barclays U.S. Universal Index, the Barclays U.S. Government Bond Index, the Barclays U.S. Intermediate Government Bond Index, the Bank of America Merrill Lynch High Yield Master II Constrained Index and Hybrid Index and the Bank of America Merrill Lynch 3-Month U.S. Treasury Bill Index. Performance may be shown for certain investment strategies that are made available under the Deferred Annuities. The first is the "Equity Generator(R)." 7 Under the "Equity Generator(R)," an amount equal to the interest earned during a specified interval (i.e., monthly, quarterly) in the Fixed Account is transferred to an Investment Division. The second strategy is the "Index Selector(R)". Under this strategy, once during a specified period (i.e., quarterly, annually) transfers are made among the Lehman Brothers(R) Aggregate Bond Index, MetLife Stock Index, MSCI EAFE(R) Index, Russell 2000(R) Index and MetLife Mid Cap Stock Index Divisions and the Fixed Account (or the BlackRock Money Market Investment Division for the C Class Deferred Annuity or a Deferred Annuity, when available, with an optional GMIB issued in New York State) in order to bring the percentage of the total Account Balance in each of these Investment Divisions and Fixed Account (or Money Market Investment Division) back to the current allocation of Your choice of one of several asset allocation models. The elements which form the basis of the models are provided by MetLife which may rely on a third party for its expertise in creating appropriate allocations. The models are designed to correlate to various risk tolerance levels associated with investing and are subject to change from time to time. An "Equity Generator Return" or "Index Selector Return" for a model will be calculated by presuming a certain dollar value at the beginning of a period and comparing this dollar value with the dollar value, based on historical performance, at the end of the period, expressed as a percentage. The "Return" in each case will assume that no withdrawals have occurred other or unrelated transactions. We assume the Separate Account charge reflects the Basic Death Benefit. The information does not assume the charges for the Earnings Preservation Benefit or GMIB. We may also show Index Selector investment strategies using other Investment Divisions for which these strategies are made available in the future. If We do so, performance will be calculated in the same manner as described above, using the appropriate account and/or Investment Divisions. For purposes of presentation of Non-Standard Performance, We may assume the Deferred Annuities were in existence prior to the inception date of the Investment Divisions in the Separate Account that funds the Deferred Annuity. In these cases, We calculate performance based on the historical performance of the underlying Metropolitan Fund, Met Investors Fund and American Funds Portfolios since the Portfolio inception date. We use the actual accumulation unit or annuity unit data after the inception date. Any performance data that includes all or a portion of the time between the Portfolio inception date and the Investment Division inception date is hypothetical. Hypothetical returns indicate what the performance data would have been if the Deferred Annuity had been introduced as of the Portfolio inception date. We may also present average annual total return calculations which reflect all Separate Account charges and applicable withdrawal charges since the Portfolio inception date. We use the actual accumulation unit or annuity unit data after the inception date. Any performance data that includes all or a portion of the time between the Portfolio inception date and the Investment Division inception date is hypothetical. Hypothetical returns indicate what the performance data would have been if the Deferred Annuities had been introduced as of the Portfolio inception date. Past performance is no guarantee of future results. We may demonstrate hypothetical future values of Account Balances over a specified period based on assumed rates of return (which will not exceed 12% and which will include an assumption of 0% as well) for the Portfolios. These presentations reflect the deduction of the Separate Account charge, the Annual Contract Fee, if any, and the weighted average of investment-related charges for all Portfolios to depict investment-related charges. We may demonstrate hypothetical future values of Account Balances for a specific Portfolio based upon the assumed rates of return previously described, the deduction of the Separate Account charge and the Annual Contract Fee, if any, and the investment-related charges for the specific Portfolio to depict investment-related charges. We may demonstrate the hypothetical historical value of each optional benefit for a specified period based on historical net asset values of the Portfolios and the annuity purchase rate, if applicable, either for an individual for whom the illustration is to be produced or based upon certain assumed factors (e.g., male, age 65). These presentations reflect the deduction of the Separate Account charge and the Annual Contract Fee, if any, the investment-related charge and the charge for the optional benefit being illustrated. 8 We may demonstrate hypothetical future values of each optional benefit over a specified period based on assumed rates of return (which will not exceed 12% and which will include an assumption of 0% as well) for the Portfolios, the annuity purchase rate, if applicable, either for an individual for whom the illustration is to be produced or based upon certain assumed factors (e.g., male, age 65). These presentations reflect the deduction of the Separate Account charge and the Annual Contract Fee, if any, the weighted average of investment-related charges for all Portfolios to depict investment-related charges and the charge for the optional benefit being illustrated. We may demonstrate hypothetical values of income payments over a specified period based on historical net asset values of the Portfolios and the applicable annuity purchase rate, either for an individual for whom the illustration is to be produced or based upon certain assumed factors (e.g., male, age 65). These presentations reflect the deduction of the Separate Account charge, the investment-related charge and the Annual Contract Fee, if any. We may demonstrate hypothetical future values of income payments over a specified period based on assumed rates of return (which will not exceed 12% and which will include an assumption of 0% as well) for the Portfolios, the applicable annuity purchase rate, either for an individual for whom the illustration is to be produced or based upon certain assumed factors (e.g., male, age 65). These presentations reflect the deduction of the Separate Account charge, the Annual Contract Fee, if any, and the weighted average of investment-related charges for all Portfolios to depict investment-related charges. Any illustration should not be relied on as a guarantee of future results. VOTING RIGHTS In accordance with Our view of the present applicable law, We will vote the shares of each of the Portfolios held by the Separate Account (which are deemed attributable to all the Deferred Annuities described in the Prospectus) at regular and special meetings of the shareholders of the Portfolio based on instructions received from those having voting interests in corresponding Investment Divisions of the Separate Account. However, if the 1940 Act or any rules thereunder should be amended or if the present interpretation thereof should change, and, as a result, We determine that We are permitted to vote the shares of the Portfolios in Our own right, We may elect to do so. Accordingly, You have voting interests under all the Deferred Annuities described in the Prospectus. The number of shares held in each Separate Account Investment Division deemed attributable to You is determined by dividing the value of accumulation or annuity units attributable to You in that Investment Division, if any, by the net asset value of one share in the Portfolio in which the assets in that Separate Account Investment Division are invested. Fractional votes will be counted. The number of shares for which You have the right to give instructions will be determined as of the record date for the meeting. Portfolio shares held in each registered separate account of MetLife or any affiliate that are or are not attributable to life insurance policies or annuities (including all the Deferred Annuities described in the Prospectus) and for which no timely instructions are received will be voted in the same proportion as the shares for which voting instruction are received by that separate account. Portfolio shares held in the general accounts or unregistered separate accounts of MetLife or its affiliates will be voted in the same proportion as the aggregate of (i) the shares for which voting instructions are received and (ii) the shares that are voted in proportion to such voting instructions. However, if We or an affiliate determine that We are permitted to vote any such shares, in Our own right, We may elect to do so subject to the then current interpretation of the 1940 Act or any rules thereunder. Qualified retirement plans which invest directly in the Portfolios do not have voting interests through life insurance or annuity contracts and do not vote these interests based upon the number of shares held in the Separate Account Investment Division deemed attributable to those qualified retirement plans. Shares are held by the plans themselves and are voted directly; the instruction process does not apply. 9 You will be entitled to give instructions regarding the votes attributable to Your Deferred Annuity, in Your sole discretion. You may give instructions regarding, among other things, the election of the board of directors, ratification of the election of an independent registered public accounting firm, and the approval of investment and sub-investment managers. DISREGARDING VOTING INSTRUCTIONS MetLife may disregard voting instructions under the following circumstances (1) to make or refrain from making any change in the investments or investment policies for any Portfolio if required by any insurance regulatory authority; (2) to refrain from making any change in the investment policies for any investment manager or principal underwriter or any Portfolio which may be initiated by those having voting interests or the Metropolitan Fund's or Met Investors Fund's or American Funds(R)' boards of directors, provided MetLife's disapproval of the change is reasonable and, in the case of a change in investment policies or investment manager, based on a good faith determination that such change would be contrary to state law or otherwise inappropriate in light of the Portfolio's objective and purposes; or (3) to enter into or refrain from entering into any advisory agreement or underwriting contract, if required by any insurance regulatory authority. In the event that MetLife does disregard voting instructions, a summary of the action and the reasons for such action will be included in the next semiannual report. ERISA If Your plan is subject to ERISA (the Employee Retirement Income Security Act of 1974) and You are married, the income payments, withdrawal provisions and methods of payment of the death benefit under Your Deferred Annuity or Income Annuity may be subject to Your spouse's rights as described below. Generally, the spouse must give qualified consent whenever You elect to: a. choose income payments other than on a qualified joint and survivor annuity basis ("QJSA") (one under which We make payments to You during Your lifetime and them make payments reduced by no more than 50% to Your spouse for his or her remaining life, if any); or choose to waive the qualified pre-retirement survivor annuity benefit ("QPSA") (the benefit payable to the surviving spouse of a participant who dies with a vested interest in an accrued retirement benefit under the plan before payment of the benefit has begun); b. make certain withdrawals under plans for which a qualified consent is required; c. name someone other than the spouse as Your Beneficiary; d. use Your accrued benefit as security for a loan exceeding $5,000. Generally, there is no limit to the number of Your elections as long as a qualified consent is given each time. The consent to waive the QJSA must meet certain requirements, including that it be in writing, that it acknowledges the identity of the designated Beneficiary and the form of benefit selected, dated, signed by Your spouse, witnessed by a notary public or plan representative, and that it be in a form satisfactory to Us. The waiver of a QJSA generally must be executed during the 180-day period (90-day period for certain loans) ending on the date on which income payments are to commence, or the withdrawal or the loan is to be made, as the case may be. If You die before benefits commence, Your surviving spouse will be Your Beneficiary unless he or she has given a qualified consent otherwise. The qualified consent to waive the QPSA benefit and the Beneficiary designation must be made in writing that acknowledges the designated Beneficiary, dated, signed by Your spouse, witnessed by a notary public or plan representative and in a form satisfactory to Us. Generally, there is 10 no limit to the number of Beneficiary designations as long as a qualified consent accompanies each designation. The waiver of and the qualified consent for the QPSA benefit generally may not be given until the plan year in which You attain age 35. The waiver period for the QPSA ends on the date of Your death. If the present value of Your benefit is worth $5,000 or less, Your plan generally may provide for distribution of Your entire interest in a lump sum without spousal consent. TAXES-SIMPLE IRAS ELIGIBILITY AND CONTRIBUTIONS To be eligible to establish a SIMPLE IRA plan, Your employer must have no more than 100 employees and the SIMPLE IRA must be the only tax qualified retirement plan maintained by Your employer. Many of the same tax rules that apply to Traditional IRAs also apply to SIMPLE IRAs. However, the contribution limits, premature distribution rules, and rules applicable to eligible rollovers and transfers differ as explained below. If You are participating in a SIMPLE IRA plan You may generally make contributions which are excluded from Your gross income under a qualified salary reduction arrangement on a pre-tax basis of up to the limits in the table shown below.
FOR TAX YEARS CONTRIBUTION LIMIT FOR CATCH-UP FOR TAXPAYERS BEGINNING IN TAXPAYERS UNDER AGE 50 AGE 50 AND OLDER ------------- ---------------------- ---------------------- 2013 $12,000 $2,500
Note: the Contribution limit above will be adjusted for inflation. These contributions, not including the age 50+catch-up, (as well as any other salary reduction contributions to qualified plans of an employer), are also subject to the aggregate annual limitation under section 402 (g) of the Internal Revenue Code as shown below.
FOR TAXABLE YEARS BEGINNING IN CALENDAR YEAR APPLICABLE DOLLAR LIMIT -------------------------- ----------------------- 2013 $17,500
You may also make rollovers and direct transfers into Your SIMPLE IRA annuity contract from another SIMPLE IRA annuity contract or account. No other contributions, rollovers or transfers can be made to Your SIMPLE IRA. You may not make Traditional IRA contributions or Roth IRA contributions to Your SIMPLE IRA. You may not make eligible rollover contributions from other types of qualified retirement plans. WITHDRAWALS We will normally pay withdrawal proceeds within seven days after receipt of a request for a withdrawal at Your Administrative Office, but We may delay payment as permitted by law, under certain circumstances. (See " Valuation -- Suspension of Payments" in the Prospectus). We reserve the right to defer payment for a partial withdrawal, withdrawal or transfer from the Fixed Account for the period permitted by law, but for not more than six months. 11 ACCUMULATION UNIT VALUES TABLES These tables show fluctuations in the Accumulation Unit Values for the possible mixes offered in the Deferred Annuity for each Investment Division from year-end to year-end (except the highest possible and lowest possible mix which are in the Prospectus). TABLES GROUP I METROPOLITAN FUND AND MET INVESTORS FUND SHARE CLASS E PORTFOLIOS AND AMERICAN FUNDS(R) CLASS 2 PORTFOLIOS Share Class E of the Metropolitan Fund and Met Investors Fund Portfolios was available prior to May 1, 2004. Lower Separate Account charges for the American Funds Divisions were in effect prior to May 1, 2004. The Accumulation Unit Values prior to May 1, 2004 reflect the lower Separate Account charges for the American Funds Investment Divisions then in effect. The Accumulation Unit Values for the Metropolitan Fund and Met Investors Fund Share Class E Portfolios reflect lower 12b-1 Plan fees which were available prior to May 1, 2004. In addition, different charges for certain optional benefits were in effect prior to May 1, 2003. Accumulation Unit Values prior to May 1, 2003, for Deferred Annuities with these optional benefits reflect the lower charges then in effect. Values after April 30, 2003, reflect the higher charges currently in place. The information in these tables has been derived from the Separate Account's full financial statements or other reports (such as the annual report). Charges for all versions of the Optional Guaranteed Income Benefits, Optional Guaranteed Withdrawal Benefits, and the Optional Guaranteed Minimum Accumulation Benefit are made by canceling accumulation units and, therefore, these charges are not reflected in the Accumulation Unit Value. However, purchasing these options with an optional death benefit and the Earnings Preservation Benefit will result in a higher overall charge. TABLES GROUP II METROPOLITAN FUND AND MET INVESTORS FUND SHARE CLASS B PORTFOLIOS AND AMERICAN FUNDS(R) CLASS 2 PORTFOLIOS Lower charges for the GMIB Plus II, Enhanced Death Benefit and LWG II were in effect prior to February 24, 2009 and/or May 4, 2009. Share Class B of the Metropolitan Fund and Met Investors Fund Portfolios was made available May 1, 2004. The accumulation unit values for the Deferred Annuity with the Metropolitan Fund and Met Investors Fund Share Class B Portfolios reflect 12b-1 Plan fees currently in place. The information in these tables has been derived from the Separate Account's full financial statements or other reports (such as the annual report). Charges for all versions of the Optional Guaranteed Income Benefits, Optional Guaranteed Withdrawal Benefits, and the Optional Guaranteed Minimum Accumulation Benefit are made by canceling accumulation units and, therefore, these charges are not reflected in the Accumulation Unit Value. However, purchasing these options with an optional death benefit and Earnings Preservation Benefit will result in a higher overall charge. 12 GROUP I--PREFERENCE PLUS SELECT E SHARE AND AMERICAN FUNDS(R) CLASS 2 1.25 SEPARATE ACCOUNT CHARGE
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ American Funds Bond Investment Division+ (Class 2) (5/1/2006)........................ 2006 $ 14.82 $ 15.56 365,887.51 2007 15.56 15.85 768,194.65 2008 15.85 14.17 554,431.26 2009 14.17 15.73 461,528.53 2010 15.73 16.51 417,970.90 2011 16.51 17.28 297,207.79 2012 17.28 17.95 249,373.50 American Funds Global Small Capitalization Investment Division+ (Class 2)............ 2003 10.81 16.37 793,521.46 2004 16.37 19.51 1,684,630.59 2005 19.51 24.12 1,942,621.89 2006 24.12 29.51 2,014,130.80 2007 29.51 35.33 2,066,061.06 2008 35.33 16.19 1,676,113.20 2009 16.19 25.75 1,627,893.35 2010 25.75 31.09 1,542,372.20 2011 31.09 24.79 1,329,857.31 2012 24.79 28.89 1,090,983.82 American Funds Growth Investment Division+ ( Class 2)................................ 2003 85.50 115.34 484,308.87 2004 115.34 127.95 832,307.70 2005 127.95 146.61 850,455.08 2006 146.61 159.35 855,979.03 2007 159.35 176.52 789,249.89 2008 176.52 97.52 685,332.95 2009 97.52 134.07 644,152.88 2010 134.07 156.90 606,411.59 2011 156.90 148.11 516,594.10 2012 148.11 172.17 436,720.84 American Funds Growth-Income Investment Division+ (Class 2).......................... 2003 68.74 89.76 634,858.72 2004 89.76 97.69 1,040,319.53 2005 97.69 101.96 992,089.03 2006 101.96 115.83 915,468.87 2007 115.83 119.97 847,614.09 2008 119.97 73.52 701,937.54 2009 73.52 95.15 648,730.37 2010 95.15 104.55 616,925.22 2011 104.55 101.21 542,332.49 2012 101.21 117.25 459,521.06
13
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Baillie Gifford International Stock Investment Division (formerly Artio International Stock Investment Division) (Class E)................................. 2003 $ 9.47 $11.96 635,794.86 2004 11.96 13.94 771,378.37 2005 13.94 16.22 827,888.50 2006 16.22 18.63 907,739.12 2007 18.63 20.27 880,696.65 2008 20.27 11.17 847,225.14 2009 11.17 13.45 752,316.11 2010 13.45 14.22 666,139.55 2011 14.22 11.24 585,142.31 2012 11.24 13.25 508,699.78 Barclays Capital Aggregate Bond Index Investment Division (Class E).................. 2003 12.45 12.72 5,134,183.52 2004 12.72 13.06 8,999,457.29 2005 13.06 13.16 8,533,403.02 2006 13.16 13.50 7,766,369.61 2007 13.50 14.23 7,336,307.44 2008 14.23 14.86 5,087,134.64 2009 14.86 15.43 4,915,624.93 2010 15.43 16.12 4,581,401.14 2011 16.12 17.10 3,706,072.30 2012 17.10 17.51 3,497,230.39 BlackRock Aggressive Growth Investment Division (Class E)............................ 2003 25.16 34.93 154,691.04 2004 34.93 38.91 216,073.56 2005 38.91 42.48 199,283.86 2006 42.48 44.70 181,091.10 2007 44.70 53.14 209,017.66 2008 53.14 28.45 229,470.97 2009 28.45 41.92 217,890.63 2010 41.92 47.69 189,927.99 2011 47.69 45.60 169,405.57 2012 45.60 49.90 142,893.87 BlackRock Bond Income Investment Division (Class E).................................. 2003 46.31 48.33 536,896.98 2004 48.33 49.77 757,818.00 2005 49.77 50.26 745,485.37 2006 50.26 51.76 667,510.62 2007 51.76 54.24 621,942.99 2008 54.24 51.66 497,045.94 2009 51.66 55.76 435,708.70 2010 55.76 59.57 405,795.97 2011 59.57 62.60 337,071.88 2012 62.60 66.39 296,935.29
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BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ BlackRock Diversified Investment Division (Class E).................................. 2003 $31.50 $37.46 752,001.31 2004 37.46 40.06 1,234,083.04 2005 40.06 40.73 1,155,328.40 2006 40.73 44.38 1,030,051.46 2007 44.38 46.32 922,793.71 2008 46.32 34.37 774,407.42 2009 34.37 39.76 699,129.64 2010 39.76 42.98 656,088.90 2011 42.98 44.00 575,295.96 2012 44.00 48.74 512,683.90 BlackRock Large Cap Core Investment Division* (Class E).............................. 2007 82.87 83.74 302,267.47 2008 83.74 51.89 270,904.98 2009 51.89 61.13 256,594.16 2010 61.13 68.02 257,683.76 2011 68.02 67.37 235,318.67 2012 67.37 75.58 205,789.39 BlackRock Large Cap Investment Division (Class E).................................... 2003 49.33 63.36 303,829.18 2004 63.36 69.27 418,586.06 2005 69.27 70.77 379,976.69 2006 70.77 79.62 328,519.67 2007 79.62 83.57 0.00 BlackRock Large Cap Value Investment Division (Class E).............................. 2003 7.93 10.60 462,050.50 2004 10.60 11.87 908,349.10 2005 11.87 12.39 886,967.70 2006 12.39 14.58 1,484,705.08 2007 14.58 14.87 1,474,670.98 2008 14.87 9.54 1,234,224.28 2009 9.54 10.47 1,133,767.10 2010 10.47 11.28 929,831.85 2011 11.28 11.37 807,151.50 2012 11.37 12.82 696,355.00 BlackRock Money Market Investment Division (Class E) (5/1/2003)...................... 2003 23.28 23.18 24,871.02 2004 23.18 23.09 191,283.32 2005 23.09 23.42 142,355.22 2006 23.42 24.21 128,028.43 2007 24.21 25.09 123,075.12 2008 25.09 25.44 114,354.28 2009 25.44 25.20 117,409.50 2010 25.20 24.89 132,366.88 2011 24.89 24.58 162,293.97 2012 24.58 24.27 231,136.28
15
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Davis Venture Value Investment Division (Class E).................................... 2003 $22.03 $28.44 448,782.09 2004 28.44 31.50 943,883.17 2005 31.50 34.26 1,082,320.11 2006 34.26 38.71 1,196,386.84 2007 38.71 39.92 1,116,886.34 2008 39.92 23.87 971,602.54 2009 23.87 31.07 878,683.91 2010 31.07 34.32 851,866.91 2011 34.32 32.47 714,663.59 2012 32.47 36.14 607,884.50 FI Value Leaders Investment Division (Class E)....................................... 2003 18.98 23.76 129,119.95 2004 23.76 26.65 223,572.04 2005 26.65 29.09 282,379.76 2006 29.09 32.11 341,023.72 2007 32.11 32.99 287,935.09 2008 32.99 19.86 229,972.81 2009 19.86 23.87 210,768.04 2010 23.87 26.96 202,718.99 2011 26.96 24.95 166,685.80 2012 24.95 28.48 140,107.59 Harris Oakmark International Investment Division (Class E)........................... 2003 8.85 11.81 324,128.40 2004 11.81 14.08 967,386.26 2005 14.08 15.89 1,339,210.21 2006 15.89 20.24 1,642,308.17 2007 20.24 19.79 1,481,049.15 2008 19.79 11.56 1,020,887.92 2009 11.56 17.73 1,105,351.34 2010 17.73 20.40 1,133,631.19 2011 20.40 17.31 1,017,541.20 2012 17.31 22.09 866,508.28 Invesco Small Cap Growth Investment Division (Class E)............................... 2003 8.50 11.68 213,981.76 2004 11.68 12.29 362,439.31 2005 12.29 13.16 348,954.53 2006 13.16 14.85 303,360.64 2007 14.85 16.31 329,554.00 2008 16.31 9.87 260,774.54 2009 9.87 13.06 248,020.52 2010 13.06 16.30 204,583.13 2011 16.30 15.93 194,071.83 2012 15.93 18.62 168,166.10
16
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Jennison Growth Investment Division (Class E)........................................ 2005 $ 4.10 $ 4.94 723,683.86 2006 4.94 5.00 782,230.91 2007 5.00 5.51 703,362.38 2008 5.51 3.45 571,518.60 2009 3.45 4.77 665,421.46 2010 4.77 5.25 709,982.11 2011 5.25 5.20 648,169.28 2012 5.20 5.93 751,819.62 Jennison Growth Investment Division (Class E) (formerly Met/Putnam Voyager Investment Division)............................................................... 2003 3.46 4.29 639,387.86 2004 4.29 4.44 731,995.26 2005 4.44 4.06 736,052.17 Legg Mason ClearBridge Aggressive Growth Investment Division (Class E)............... 2003 5.57 6.80 310,403.07 2004 6.80 7.30 392,106.14 2005 7.30 8.19 417,097.50 2006 8.19 7.96 425,337.52 2007 7.96 8.04 351,434.02 2008 8.04 4.84 316,321.07 2009 4.84 6.37 310,061.14 2010 6.37 7.79 299,287.50 2011 7.79 7.97 627,224.84 2012 7.97 9.33 578,817.09 Legg Mason ClearBridge Aggressive Growth Investment Division (Class E)............... 2006 9.53 10.23 539,621.68 2007 10.23 9.51 472,613.07 2008 9.51 4.26 420,513.03 2009 4.26 5.81 415,275.83 2010 5.81 6.16 425,887.76 2011 6.16 6.56 0.00 Legg Mason Partners Aggressive Growth Investment Division (formerly Janus Growth Investment Division) (Class E)..................................................... 2003 5.30 5.57 0.00 Legg Mason Value Equity Investment Division (Class E) (formerly MFS(R) Investors Trust Investment Division)......................................................... 2003 6.56 7.87 308,442.38 2004 7.87 8.65 519,685.45 2005 8.65 9.15 543,667.98 2006 9.15 9.57 546,915.66 Loomis Sayles Small Cap Core Investment Division (Class E)........................... 2003 17.58 23.67 113,829.25 2004 23.67 27.16 178,336.28 2005 27.16 28.64 236,648.77 2006 28.64 32.96 300,736.30 2007 32.96 36.36 334,916.98 2008 36.36 22.98 298,154.20 2009 22.98 29.52 296,251.97 2010 29.52 37.13 255,742.33 2011 37.13 36.83 206,050.30 2012 36.83 41.60 176,691.45
17
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Loomis Sayles Small Cap Growth Investment Division (Class E)......................... 2003 $ 6.27 $ 8.96 528,179.62 2004 8.96 9.84 750,510.25 2005 9.84 10.16 695,707.18 2006 10.16 11.02 655,570.12 2007 11.02 11.37 615,476.46 2008 11.37 6.58 506,871.53 2009 6.58 8.45 503,973.95 2010 8.45 10.97 492,535.61 2011 10.97 11.15 458,438.67 2012 11.15 12.22 379,173.49 Lord Abbett Bond Debenture Investment Division (Class E)............................. 2003 10.57 12.45 906,935.62 2004 12.45 13.31 1,418,152.43 2005 13.31 13.36 1,404,653.05 2006 13.36 14.41 1,362,497.98 2007 14.41 15.18 1,342,220.52 2008 15.18 12.22 1,101,945.72 2009 12.22 16.52 1,192,438.70 2010 16.52 18.44 1,067,948.01 2011 18.44 19.06 881,347.15 2012 19.06 21.27 765,558.82 Lord Abbett Mid Cap Value Investment Division (Class E).............................. 2012 26.26 27.03 977,900.79 Lord Abbett Mid Cap Value Investment Division (Class E) (formerly Neuberger Berman Mid Cap Value Investment Division (Class E))....................................... 2003 13.49 18.18 832,486.66 2004 18.18 22.04 1,810,459.47 2005 22.04 24.40 2,105,952.17 2006 24.40 26.81 1,858,433.89 2007 26.81 27.34 1,697,807.19 2008 27.34 14.20 1,410,908.34 2009 14.20 20.74 1,308,520.72 2010 20.74 25.83 1,298,857.26 2011 25.83 23.84 1,146,629.41 2012 23.84 26.39 0.00 Met/Artisan Mid Cap Value Investment Division (Class E).............................. 2003 23.93 31.30 1,040,971.04 2004 31.30 33.93 1,617,109.79 2005 33.93 36.80 1,628,972.80 2006 36.80 40.81 1,384,163.75 2007 40.81 37.48 1,176,615.51 2008 37.48 19.96 981,992.16 2009 19.96 27.86 887,769.83 2010 27.86 31.60 817,677.78 2011 31.60 33.27 720,275.11 2012 33.27 36.70 612,241.28
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BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ MetLife Mid Cap Stock Index Investment Division (Class E)............................ 2003 $ 8.68 $11.55 2,466,067.51 2004 11.55 13.22 2,674,970.32 2005 13.22 14.64 2,583,753.41 2006 14.64 15.89 2,589,233.99 2007 15.89 16.89 2,460,352.19 2008 16.89 10.62 2,153,959.35 2009 10.62 14.36 1,928,352.50 2010 14.36 17.89 1,789,146.56 2011 17.89 17.29 1,552,824.37 2012 17.29 20.06 1,348,936.20 MetLife Stock Index Investment Division (Class E).................................... 2003 28.06 35.46 2,189,805.85 2004 35.46 38.66 4,375,880.34 2005 38.66 39.89 4,174,789.79 2006 39.89 45.42 3,779,370.21 2007 45.42 47.12 3,532,996.55 2008 47.12 29.23 3,363,124.91 2009 29.23 36.40 3,214,351.33 2010 36.40 41.19 2,999,322.26 2011 41.19 41.38 2,563,168.87 2012 41.38 47.21 2,274,902.54 MFS(R) Research International Investment Division (Class E).......................... 2003 7.31 9.54 378,131.36 2004 9.54 11.28 529,237.61 2005 11.28 12.98 577,046.26 2006 12.98 16.25 865,604.95 2007 16.25 18.19 1,013,541.82 2008 18.19 10.36 1,042,044.09 2009 10.36 13.48 861,825.44 2010 13.48 14.85 798,397.96 2011 14.85 13.11 679,755.24 2012 13.11 15.12 563,754.77 MFS(R) Total Return Investment Division (Class E) (5/1/2004)......................... 2004 37.71 41.05 119,277.39 2005 41.05 41.69 328,191.42 2006 41.69 46.09 465,431.08 2007 46.09 47.39 692,542.07 2008 47.39 36.34 626,555.67 2009 36.34 42.46 734,187.61 2010 42.46 46.04 800,296.85 2011 46.04 46.45 826,082.65 2012 46.45 51.06 805,689.47
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BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ MFS(R) Value Investment Division (Class E)........................................... 2003 $ 9.77 $12.09 2,688,090.95 2004 12.09 13.29 4,009,979.73 2005 13.29 12.92 3,945,338.48 2006 12.92 15.05 3,372,387.00 2007 15.05 14.28 3,032,426.90 2008 14.28 9.36 2,697,027.11 2009 9.36 11.16 2,414,788.75 2010 11.16 12.26 2,268,806.25 2011 12.26 12.20 1,997,880.31 2012 12.20 14.03 1,706,215.37 MLA Mid Cap Investment Division (formerly Lazard Mid Cap Investment Division) (Class E).......................................................................... 2003 9.69 12.09 396,340.58 2004 12.09 13.67 619,345.68 2005 13.67 14.61 587,800.90 2006 14.61 16.56 568,404.89 2007 16.56 15.92 602,867.37 2008 15.92 9.71 487,589.04 2009 9.71 13.13 438,892.62 2010 13.13 15.96 409,786.71 2011 15.96 14.93 343,785.37 2012 14.93 15.54 279,366.88 MSCI EAFE(R) Index Investment Division (formerly Morgan Stanley EAFE(R) Index Investment Division) (Class E)..................................................... 2003 7.12 9.65 3,114,501.40 2004 9.65 11.39 3,602,166.40 2005 11.39 12.71 3,317,221.36 2006 12.71 15.77 3,031,757.31 2007 15.77 17.22 2,877,630.78 2008 17.22 9.83 2,796,815.99 2009 9.83 12.48 2,548,424.84 2010 12.48 13.31 2,428,332.98 2011 13.31 11.49 2,164,337.60 2012 11.49 13.41 1,950,514.12 Morgan Stanley Mid Cap Growth Investment Division (Class E).......................... 2010 13.41 15.60 897,116.60 2011 15.60 14.35 808,530.80 2012 14.35 15.51 731,297.08 Morgan Stanley Mid Cap Growth Investment Division (formerly FI Mid Cap Opportunities Investment Division (Class E))..................................................... 2003 11.04 14.68 490,905.38 2004 14.68 16.96 1,349,674.49 2005 16.96 17.87 1,259,761.54 2006 17.87 19.71 1,190,252.12 2007 19.71 21.06 1,052,899.12 2008 21.06 9.27 980,681.78 2009 9.27 12.25 929,395.27 2010 12.25 13.27 0.00
20
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Neuberger Berman Genesis Investment Division (Class E)............................... 2003 $10.86 $16.08 2,552,703.05 2004 16.08 18.29 4,104,591.02 2005 18.29 18.78 3,853,381.72 2006 18.78 21.63 3,399,477.64 2007 21.63 20.60 3,003,297.27 2008 20.60 12.51 2,468,118.32 2009 12.51 13.95 2,320,727.08 2010 13.95 16.73 2,136,441.91 2011 16.73 17.44 1,890,831.67 2012 17.44 18.93 1,617,301.01 Oppenheimer Global Equity Investment Division (Class E).............................. 2003 10.17 13.10 406,709.15 2004 13.10 15.03 550,723.24 2005 15.03 17.23 651,568.46 2006 17.23 19.83 666,634.22 2007 19.83 20.81 653,391.71 2008 20.81 12.23 490,373.02 2009 12.23 16.92 494,739.96 2010 16.92 19.40 488,519.80 2011 19.40 17.55 437,137.02 2012 17.55 21.03 369,967.89 PIMCO Total Return Investment Division (Class E)..................................... 2003 11.29 11.65 4,544,053.32 2004 11.65 12.08 5,804,502.80 2005 12.08 12.21 5,682,275.41 2006 12.21 12.63 4,865,688.64 2007 12.63 13.42 4,559,147.92 2008 13.42 13.31 3,873,609.12 2009 13.31 15.54 3,834,269.93 2010 15.54 16.62 3,824,498.04 2011 16.62 16.96 3,201,024.00 2012 16.96 18.30 2,763,402.91 RCM Tecnology Investment Division (Class E).......................................... 2003 2.97 4.62 1,637,949.51 2004 4.62 4.37 2,443,480.52 2005 4.37 4.80 2,087,513.19 2006 4.80 4.99 1,893,822.84 2007 4.99 6.50 2,352,962.18 2008 6.50 3.56 1,898,680.91 2009 3.56 5.61 2,150,461.87 2010 5.61 7.08 1,935,175.92 2011 7.08 6.30 1,724,396.10 2012 6.30 6.99 1,381,672.91
21
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Russell 2000(R) Index Investment Division (Class E).................................. 2003 $ 9.43 $13.60 1,535,666.47 2004 13.60 15.78 1,766,547.81 2005 15.78 16.27 1,664,179.07 2006 16.27 18.92 1,638,621.46 2007 18.92 18.37 1,484,310.60 2008 18.37 12.05 1,281,282.96 2009 12.05 14.98 1,272,032.31 2010 14.98 18.73 1,220,889.34 2011 18.73 17.73 1,048,535.01 2012 17.73 20.33 938,439.78 T. Rowe Price Large Cap Growth Investment Division (Class E)......................... 2003 8.76 11.30 794,026.43 2004 11.30 12.25 1,219,617.60 2005 12.25 12.88 1,225,277.14 2006 12.88 14.37 1,166,910.77 2007 14.37 15.51 1,195,546.39 2008 15.51 8.89 1,003,023.65 2009 8.89 12.57 988,715.18 2010 12.57 14.51 939,617.23 2011 14.51 14.15 769,194.39 2012 14.15 16.61 696,606.07 T. Rowe Price Mid Cap Growth Investment Division (Class E)........................... 2003 4.56 6.17 921,458.24 2004 6.17 7.19 1,640,762.91 2005 7.19 8.14 1,659,153.46 2006 8.14 8.55 1,649,785.51 2007 8.55 9.93 2,050,018.89 2008 9.93 5.92 1,658,057.16 2009 5.92 8.50 1,565,075.06 2010 8.50 10.75 1,516,446.19 2011 10.75 10.44 1,223,170.26 2012 10.44 11.74 1,034,742.08 T. Rowe Price Small Cap Growth Investment Division (Class E)......................... 2003 8.80 12.22 500,675.63 2004 12.22 13.40 771,778.83 2005 13.40 14.66 761,468.45 2006 14.66 15.01 704,955.38 2007 15.01 16.26 616,681.57 2008 16.26 10.24 608,516.37 2009 10.24 14.03 549,368.36 2010 14.03 18.66 600,453.62 2011 18.66 18.72 557,109.13 2012 18.72 21.45 496,534.37
22
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Western Asset Management Strategic Bond Opportunities Investment Division (Class E).. 2003 $17.34 $19.26 1,097,298.95 2004 19.26 20.26 1,832,959.07 2005 20.26 20.54 1,977,911.29 2006 20.54 21.27 1,760,927.58 2007 21.27 21.82 1,620,353.39 2008 21.82 18.29 1,202,776.44 2009 18.29 23.84 1,134,413.67 2010 23.84 26.52 1,095,111.42 2011 26.52 27.74 904,734.62 2012 27.74 30.49 795,004.40 Western Asset Management U.S Government Investment Division (Class E)................ 2003 15.87 15.91 1,650,276.43 2004 15.91 16.16 1,751,365.92 2005 16.16 16.21 1,688,272.27 2006 16.21 16.65 1,448,834.33 2007 16.65 17.12 1,288,550.95 2008 17.12 16.83 1,078,581.67 2009 16.83 17.32 982,343.16 2010 17.32 18.07 906,793.11 2011 18.07 18.79 714,175.41 2012 18.79 19.14 617,667.00
23 GROUP I--PREFERENCE PLUS SELECT E SHARE AND AMERICAN FUNDS(R) CLASS 2 1.35 SEPARATE ACCOUNT CHARGE
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ American Funds Bond Investment Division+ (Class 2) (5/1/2006).......................................... 2006 $ 14.69 $ 15.41 18,359.10 2007 15.41 15.68 128,590.78 2008 15.68 14.00 61,824.03 2009 14.00 15.53 46,093.67 2010 15.53 16.29 41,169.04 2011 16.29 17.03 27,150.49 2012 17.03 17.67 22,899.42 American Funds Global Small Capitalization Investment Division+ (Class 2)................................. 2003 10.76 16.28 112,324.42 2004 16.28 19.38 0.00 2005 19.38 23.94 176,130.69 2006 23.94 29.25 166,426.72 2007 29.25 34.99 172,388.70 2008 34.99 16.02 153,163.94 2009 16.02 25.45 160,067.87 2010 25.45 30.70 137,631.02 2011 30.70 24.45 110,201.31 2012 24.45 28.46 91,424.63 American Funds Growth Investment Division+ ( Class 2). 2003 83.90 113.07 76,886.54 2004 113.07 125.30 0.00 2005 125.30 143.43 81,958.32 2006 143.43 155.74 82,960.99 2007 155.74 172.35 77,590.70 2008 172.35 95.12 68,051.02 2009 95.12 130.64 68,654.45 2010 130.64 152.74 69,361.66 2011 152.74 144.03 57,155.17 2012 144.03 167.26 50,776.06 American Funds Growth-Income Investment Division+ (Class 2)........................................... 2003 67.45 87.99 98,731.01 2004 87.99 95.67 0.00 2005 95.67 99.75 100,353.40 2006 99.75 113.21 95,626.75 2007 113.21 117.14 84,725.44 2008 117.14 71.71 72,996.66 2009 71.71 92.72 73,629.35 2010 92.72 101.77 70,271.24 2011 101.77 98.43 58,293.68 2012 98.43 113.91 51,030.89
24
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Baillie Gifford International Stock Investment Division (formerly Artio International Stock Investment Division) (Class E)................................................ 2003 $ 9.36 $11.81 106,128.64 2004 11.81 13.75 105,876.06 2005 13.75 15.99 129,756.72 2006 15.99 18.34 102,227.92 2007 18.34 19.94 100,988.36 2008 19.94 10.97 97,167.07 2009 10.97 13.20 94,877.18 2010 13.20 13.94 82,353.11 2011 13.94 11.01 63,414.05 2012 11.01 12.97 58,133.54 Barclays Capital Aggregate Bond Index Investment Division (Class E)................................................ 2003 12.40 12.66 874,135.59 2004 12.66 12.98 1,032,562.73 2005 12.98 13.06 920,216.74 2006 13.06 13.39 848,528.30 2007 13.39 14.10 799,006.81 2008 14.10 14.71 593,066.93 2009 14.71 15.26 616,172.99 2010 15.26 15.93 546,751.17 2011 15.93 16.87 431,816.90 2012 16.87 17.26 373,251.57 BlackRock Aggressive Growth Investment Division (Class E)................................................ 2003 24.79 34.39 24,452.47 2004 34.39 38.26 22,934.30 2005 38.26 41.73 17,352.17 2006 41.73 43.87 16,678.26 2007 43.87 52.10 16,010.84 2008 52.10 27.87 13,734.18 2009 27.87 41.02 16,529.25 2010 41.02 46.62 15,486.04 2011 46.62 44.53 10,997.88 2012 44.53 48.68 10,169.36 BlackRock Bond Income Investment Division (Class E)........ 2003 45.41 47.35 80,135.60 2004 47.35 48.71 77,023.59 2005 48.71 49.14 71,138.99 2006 49.14 50.55 66,530.41 2007 50.55 52.93 59,097.00 2008 52.93 50.35 44,379.74 2009 50.35 54.30 56,093.21 2010 54.30 57.95 49,071.33 2011 57.95 60.84 38,035.46 2012 60.84 64.45 35,114.63
25
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ BlackRock Diversified Investment Division (Class E)..... 2003 $30.98 $36.81 126,613.75 2004 36.81 39.32 110,693.31 2005 39.32 39.94 102,872.09 2006 39.94 43.48 85,131.07 2007 43.48 45.34 76,257.70 2008 45.34 33.60 62,219.81 2009 33.60 38.83 59,318.76 2010 38.83 41.94 53,569.28 2011 41.94 42.89 46,708.58 2012 42.89 47.47 40,291.50 BlackRock Large Cap Core Investment Division* (Class E). 2007 80.92 81.71 26,345.77 2008 81.71 50.58 21,368.12 2009 50.58 59.53 21,677.47 2010 59.53 66.17 20,041.55 2011 66.17 65.48 15,147.62 2012 65.48 73.38 12,535.79 BlackRock Large Cap Investment Division (Class E)....... 2003 48.38 62.07 54,067.88 2004 62.07 67.79 44,561.24 2005 67.79 69.19 37,120.79 2006 69.19 77.77 29,819.58 2007 77.77 81.60 0.00 BlackRock Large Cap Value Investment Division (Class E). 2003 7.92 10.58 114,758.59 2004 10.58 11.83 124,616.77 2005 11.83 12.34 132,351.74 2006 12.34 14.51 144,939.13 2007 14.51 14.79 180,099.46 2008 14.79 9.48 166,205.79 2009 9.48 10.39 170,380.03 2010 10.39 11.18 140,269.58 2011 11.18 11.26 111,276.47 2012 11.26 12.68 101,893.69 BlackRock Money Market Investment Division (Class E) (5/1/2003)............................................ 2003 22.83 22.72 0.00 2004 22.72 22.60 24,745.68 2005 22.60 22.91 15,864.88 2006 22.91 23.65 12,085.62 2007 23.65 24.48 9,760.24 2008 24.48 24.80 12,590.37 2009 24.80 24.55 8,442.58 2010 24.55 24.22 8,073.82 2011 24.22 23.89 11,534.43 2012 23.89 23.57 7,106.96
26
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Davis Venture Value Investment Division (Class E)...... 2003 $21.85 $28.18 79,580.31 2004 28.18 31.18 86,014.48 2005 31.18 33.88 100,194.76 2006 33.88 38.24 113,046.24 2007 38.24 39.40 120,101.76 2008 39.40 23.53 107,824.93 2009 23.53 30.61 108,187.72 2010 30.61 33.77 114,348.85 2011 33.77 31.92 95,076.13 2012 31.92 35.49 86,464.99 FI Value Leaders Investment Division (Class E)......... 2003 18.80 23.51 19,216.51 2004 23.51 26.34 18,013.62 2005 26.34 28.73 25,281.89 2006 28.73 31.68 29,139.19 2007 31.68 32.51 16,035.93 2008 32.51 19.55 15,150.00 2009 19.55 23.47 16,288.50 2010 23.47 26.49 12,429.91 2011 26.49 24.49 11,080.57 2012 24.49 27.93 9,340.35 Harris Oakmark International Investment Division (Class E)............................................ 2003 8.84 11.79 23,574.96 2004 11.79 14.03 50,647.63 2005 14.03 15.82 63,311.72 2006 15.82 20.14 108,757.14 2007 20.14 19.67 94,536.00 2008 19.67 11.48 66,791.15 2009 11.48 17.59 79,107.89 2010 17.59 20.22 74,037.00 2011 20.22 17.13 63,926.28 2012 17.13 21.85 49,296.12 Invesco Small Cap Growth Investment Division (Class E). 2003 8.49 11.65 47,269.92 2004 11.65 12.25 55,942.48 2005 12.25 13.11 46,250.06 2006 13.11 14.78 36,783.40 2007 14.78 16.21 28,401.51 2008 16.21 9.80 24,227.64 2009 9.80 12.95 23,603.80 2010 12.95 16.15 22,679.56 2011 16.15 15.77 19,668.02 2012 15.77 18.41 18,431.89 Jennison Growth Investment Division (Class E).......... 2005 4.08 4.91 102,688.22 2006 4.91 4.97 99,855.74 2007 4.97 5.47 81,812.76 2008 5.47 3.42 72,686.78 2009 3.42 4.72 95,325.91 2010 4.72 5.19 87,924.66 2011 5.19 5.14 62,569.18 2012 5.14 5.86 73,911.01
27
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Jennison Growth Investment Division (Class E) (formerly Met/Putnam Voyager Investment Division)....... 2003 $ 3.45 $ 4.28 117,550.11 2004 4.28 4.42 106,948.60 2005 4.42 4.04 104,559.88 Legg Mason ClearBridge Aggressive Growth Investment Division (Class E)...................................... 2003 5.56 6.79 53,677.30 2004 6.79 7.27 49,505.32 2005 7.27 8.15 40,695.65 2006 8.15 7.92 43,978.73 2007 7.92 7.99 40,458.90 2008 7.99 4.80 37,312.34 2009 4.80 6.32 34,985.73 2010 6.32 7.72 27,960.33 2011 7.72 7.88 139,846.48 2012 7.88 9.22 125,731.40 Legg Mason ClearBridge Aggressive Growth Investment Division (Class E)...................................... 2006 9.46 10.15 75,180.02 2007 10.15 9.43 74,100.02 2008 9.43 4.22 76,677.91 2009 4.22 5.75 77,841.22 2010 5.75 6.09 166,424.04 2011 6.09 6.48 0.00 Legg Mason Partners Aggressive Growth Investment Division (formerly Janus Growth Investment Division) (Class E)... 2003 5.29 5.56 0.00 Legg Mason Value Equity Investment Division (Class E) (formerly MFS(R) Investors Trust Investment Division)... 2003 6.53 7.83 58,898.39 2004 7.83 8.60 71,228.93 2005 8.60 9.09 79,832.46 2006 9.09 9.50 76,700.37 Loomis Sayles Small Cap Core Investment Division (Class E)............................................... 2003 17.43 23.44 14,865.07 2004 23.44 26.87 15,772.24 2005 26.87 28.31 15,889.83 2006 28.31 32.54 19,152.06 2007 32.54 35.87 26,665.14 2008 35.87 22.65 26,970.19 2009 22.65 29.06 26,685.45 2010 29.06 36.51 23,639.02 2011 36.51 36.18 21,834.26 2012 36.18 40.83 20,644.54
28
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Loomis Sayles Small Cap Growth Investment Division (Class E)............................................. 2003 $ 6.26 $ 8.94 129,883.22 2004 8.94 9.81 110,100.66 2005 9.81 10.11 100,061.07 2006 10.11 10.96 87,697.00 2007 10.96 11.29 74,865.08 2008 11.29 6.53 58,518.43 2009 6.53 8.38 55,781.76 2010 8.38 10.86 54,042.20 2011 10.86 11.03 43,274.51 2012 11.03 12.08 37,478.17 Lord Abbett Bond Debenture Investment Division (Class E)............................................. 2003 10.50 12.37 135,998.74 2004 12.37 13.21 144,063.98 2005 13.21 13.24 145,272.09 2006 13.24 14.27 161,155.36 2007 14.27 15.02 160,667.78 2008 15.02 12.07 121,621.17 2009 12.07 16.31 118,111.75 2010 16.31 18.18 93,359.17 2011 18.18 18.78 77,135.20 2012 18.78 20.94 67,313.82 Lord Abbett Mid Cap Value Investment Division (Class E). 2012 25.91 26.65 125,008.99 Lord Abbett Mid Cap Value Investment Division (Class E) (formerly Neuberger Berman Mid Cap Value Investment Division (Class E))................................... 2003 13.44 18.08 153,070.93 2004 18.08 21.90 192,494.69 2005 21.90 24.22 185,948.75 2006 24.22 26.59 180,858.46 2007 26.59 27.09 161,904.13 2008 27.09 14.06 149,029.06 2009 14.06 20.51 155,727.90 2010 20.51 25.52 169,297.13 2011 25.52 23.53 141,671.75 2012 23.53 26.03 0.00 Met/Artisan Mid Cap Value Investment Division (Class E). 2003 23.69 30.96 197,310.42 2004 30.96 33.53 187,826.49 2005 33.53 36.33 173,904.88 2006 36.33 40.25 156,465.27 2007 40.25 36.94 135,918.88 2008 36.94 19.65 117,493.11 2009 19.65 27.40 107,747.93 2010 27.40 31.05 117,053.96 2011 31.05 32.66 97,334.73 2012 32.66 35.98 87,220.71
29
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ MetLife Mid Cap Stock Index Investment Division (Class E)....................................... 2003 $ 8.66 $11.51 419,021.80 2004 11.51 13.16 327,734.49 2005 13.16 14.56 295,468.66 2006 14.56 15.78 290,033.92 2007 15.78 16.76 247,215.23 2008 16.76 10.53 220,927.02 2009 10.53 14.23 202,584.39 2010 14.23 17.70 178,483.20 2011 17.70 17.09 137,102.72 2012 17.09 19.81 121,643.66 MetLife Stock Index Investment Division (Class E). 2003 27.70 34.98 344,851.84 2004 34.98 38.10 429,636.65 2005 38.10 39.27 376,059.33 2006 39.27 44.67 350,967.63 2007 44.67 46.30 349,602.19 2008 46.30 28.69 320,956.17 2009 28.69 35.69 319,506.79 2010 35.69 40.35 285,741.00 2011 40.35 40.49 219,638.21 2012 40.49 46.16 185,182.91 MFS(R) Research International Investment Division (Class E)....................................... 2003 7.30 9.51 106,300.23 2004 9.51 11.23 93,438.81 2005 11.23 12.91 118,584.13 2006 12.91 16.15 114,284.28 2007 16.15 18.07 101,274.88 2008 18.07 10.28 95,326.07 2009 10.28 13.36 96,825.76 2010 13.36 14.70 88,667.75 2011 14.70 12.97 73,941.46 2012 12.97 14.94 64,485.37 MFS(R) Total Return Investment Division (Class E) (5/1/2004)...................................... 2004 37.07 40.33 5,015.22 2005 40.33 40.92 12,188.95 2006 40.92 45.19 8,094.43 2007 45.19 46.42 9,651.68 2008 46.42 35.56 6,885.97 2009 35.56 41.51 7,610.74 2010 41.51 44.96 14,324.60 2011 44.96 45.32 19,864.37 2012 45.32 49.76 23,721.16
30
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ MFS(R) Value Investment Division (Class E)............... 2003 $ 9.73 $12.03 531,019.92 2004 12.03 13.21 500,901.37 2005 13.21 12.83 471,804.15 2006 12.83 14.93 394,769.18 2007 14.93 14.15 341,495.09 2008 14.15 9.27 295,292.49 2009 9.27 11.03 283,411.78 2010 11.03 12.11 289,533.62 2011 12.11 12.04 242,528.97 2012 12.04 13.83 222,056.24 MLA Mid Cap Investment Division (formerly Lazard Mid Cap Investment Division) (Class E).............................................. 2003 9.68 12.07 101,179.91 2004 12.07 13.63 103,651.12 2005 13.63 14.55 105,505.48 2006 14.55 16.47 102,185.95 2007 16.47 15.82 101,304.19 2008 15.82 9.64 84,884.81 2009 9.64 13.02 84,533.17 2010 13.02 15.81 79,809.73 2011 15.81 14.78 67,223.16 2012 14.78 15.37 63,219.07 MSCI EAFE(R) Index Investment Division (formerly Morgan Stanley EAFE(R) Index Investment Division) (Class E).................................... 2003 7.09 9.60 490,202.46 2004 9.60 11.32 400,427.76 2005 11.32 12.62 340,743.12 2006 12.62 15.64 316,971.29 2007 15.64 17.07 271,023.80 2008 17.07 9.74 263,092.91 2009 9.74 12.34 251,890.00 2010 12.34 13.15 232,457.65 2011 13.15 11.34 192,807.50 2012 11.34 13.22 165,952.91 Morgan Stanley Mid Cap Growth Investment Division (Class E).............................................. 2010 13.24 15.39 67,276.91 2011 15.39 14.14 51,242.15 2012 14.14 15.27 43,704.89 Morgan Stanley Mid Cap Growth Investment Division (formerly FI Mid Cap Opportunities Investment Division (Class E))............................................. 2003 10.98 14.58 79,667.48 2004 14.58 16.82 117,857.25 2005 16.82 17.72 99,136.78 2006 17.72 19.52 88,442.15 2007 19.52 20.83 81,596.15 2008 20.83 9.17 70,188.23 2009 9.17 12.10 72,550.40 2010 12.10 13.09 0.00
31
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Neuberger Berman Genesis Investment Division (Class E).. 2003 $10.83 $16.02 505,050.18 2004 16.02 18.21 506,824.52 2005 18.21 18.67 467,174.61 2006 18.67 21.49 402,430.01 2007 21.49 20.44 342,620.13 2008 20.44 12.40 289,251.46 2009 12.40 13.82 303,310.28 2010 13.82 16.56 268,256.95 2011 16.56 17.24 212,936.13 2012 17.24 18.69 195,697.43 Oppenheimer Global Equity Investment Division (Class E). 2003 10.11 13.01 87,598.04 2004 13.01 14.91 88,437.03 2005 14.91 17.08 104,706.65 2006 17.08 19.63 108,321.55 2007 19.63 20.59 110,568.99 2008 20.59 12.09 96,957.57 2009 12.09 16.70 88,015.88 2010 16.70 19.13 76,118.37 2011 19.13 17.29 68,551.25 2012 17.29 20.70 64,585.92 PIMCO Total Return Investment Division (Class E)........ 2003 11.27 11.61 785,206.99 2004 11.61 12.04 736,011.39 2005 12.04 12.15 770,230.72 2006 12.15 12.55 658,455.77 2007 12.55 13.33 632,285.69 2008 13.33 13.21 551,168.53 2009 13.21 15.41 539,423.74 2010 15.41 16.45 476,973.24 2011 16.45 16.78 365,137.99 2012 16.78 18.09 324,529.81 RCM Tecnology Investment Division (Class E)............. 2003 2.97 4.61 282,985.19 2004 4.61 4.35 254,320.32 2005 4.35 4.78 215,482.66 2006 4.78 4.96 212,426.40 2007 4.96 6.46 228,396.00 2008 6.46 3.53 163,805.22 2009 3.53 5.56 189,385.96 2010 5.56 7.01 157,794.46 2011 7.01 6.23 130,440.91 2012 6.23 6.91 115,998.03
32
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Russell 2000(R) Index Investment Division (Class E). 2003 $ 9.39 $13.53 283,477.35 2004 13.53 15.68 231,061.72 2005 15.68 16.16 188,559.84 2006 16.16 18.77 182,618.66 2007 18.77 18.21 157,487.90 2008 18.21 11.93 131,895.91 2009 11.93 14.81 131,889.16 2010 14.81 18.51 111,720.63 2011 18.51 17.50 89,027.03 2012 17.50 20.04 77,278.02 T. Rowe Price Large Cap Growth Investment Division (Class E)......................................... 2003 8.73 11.24 134,850.44 2004 11.24 12.18 140,086.68 2005 12.18 12.79 150,140.67 2006 12.79 14.26 135,896.81 2007 14.26 15.37 133,360.19 2008 15.37 8.80 127,217.51 2009 8.80 12.43 135,973.72 2010 12.43 14.34 115,196.38 2011 14.34 13.97 91,160.37 2012 13.97 16.37 77,481.33 T. Rowe Price Mid Cap Growth Investment Division (Class E)......................................... 2003 4.56 6.15 157,205.97 2004 6.15 7.16 167,613.18 2005 7.16 8.10 198,655.45 2006 8.10 8.50 152,035.22 2007 8.50 9.86 177,985.78 2008 9.86 5.87 141,257.92 2009 5.87 8.43 153,547.79 2010 8.43 10.64 147,269.01 2011 10.64 10.33 123,061.49 2012 10.33 11.60 108,864.47 T. Rowe Price Small Cap Growth Investment Division (Class E)......................................... 2003 8.74 12.13 69,711.26 2004 12.13 13.29 76,684.45 2005 13.29 14.53 89,028.74 2006 14.53 14.87 81,884.92 2007 14.87 16.09 71,559.81 2008 16.09 10.11 62,293.86 2009 10.11 13.85 61,037.74 2010 13.85 18.41 51,946.98 2011 18.41 18.44 42,573.15 2012 18.44 21.12 37,434.11
33
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Western Asset Management Strategic Bond Opportunities Investment Division (Class E)....................... 2003 $17.20 $19.09 196,359.24 2004 19.09 20.05 189,299.59 2005 20.05 20.31 196,410.28 2006 20.31 21.01 179,284.01 2007 21.01 21.54 158,276.17 2008 21.54 18.04 110,058.56 2009 18.04 23.49 107,449.76 2010 23.49 26.10 88,240.41 2011 26.10 27.27 74,270.53 2012 27.27 29.95 65,314.81 Western Asset Management U.S Government Investment Division (Class E).................................. 2003 15.74 15.77 313,395.25 2004 15.77 15.99 264,335.59 2005 15.99 16.03 242,161.56 2006 16.03 16.44 189,943.46 2007 16.44 16.89 166,280.80 2008 16.89 16.59 117,835.37 2009 16.59 17.06 107,529.64 2010 17.06 17.78 89,346.73 2011 17.78 18.47 68,683.61 2012 18.47 18.80 62,680.78
34 GROUP I--PREFERENCE PLUS SELECT E SHARE AND AMERICAN FUNDS(R) CLASS 2 1.45 SEPARATE ACCOUNT CHARGE
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ American Funds Bond Investment Division+ (Class 2) (5/1/2006).......................................... 2006 $ 14.56 $ 15.26 28,569.70 2007 15.26 15.52 149,814.19 2008 15.52 13.84 47,001.89 2009 13.84 15.34 44,475.29 2010 15.34 16.07 36,490.00 2011 16.07 16.78 22,553.70 2012 16.78 17.40 17,940.74 American Funds Global Small Capitalization Investment Division+ (Class 2)................................. 2003 10.71 16.18 107,784.55 2004 16.18 19.25 281,007.79 2005 19.25 23.75 313,233.26 2006 23.75 29.00 270,716.25 2007 29.00 34.66 293,038.02 2008 34.66 15.85 229,143.49 2009 15.85 25.16 215,741.06 2010 25.16 30.31 201,537.32 2011 30.31 24.12 184,596.10 2012 24.12 28.05 148,646.50 American Funds Growth Investment Division+ ( Class 2). 2003 82.36 110.90 46,696.36 2004 110.90 122.77 112,711.09 2005 122.77 140.39 113,022.31 2006 140.39 152.29 108,746.95 2007 152.29 168.36 99,935.58 2008 168.36 92.82 86,140.60 2009 92.82 127.36 76,883.79 2010 127.36 148.75 76,604.81 2011 148.75 140.13 68,947.90 2012 140.13 162.57 57,125.17 American Funds Growth-Income Investment Division+ (Class 2)........................................... 2003 66.22 86.30 59,813.89 2004 86.30 93.74 130,811.15 2005 93.74 97.64 124,289.21 2006 97.64 110.70 117,188.16 2007 110.70 114.43 111,462.86 2008 114.43 69.98 96,246.95 2009 69.98 90.39 83,532.89 2010 90.39 99.12 87,048.37 2011 99.12 95.76 75,148.47 2012 95.76 110.71 62,226.93
35
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Baillie Gifford International Stock Investment Division (formerly Artio International Stock Investment Division) (Class E)................................................ 2003 $ 9.25 $11.66 34,399.87 2004 11.66 13.57 71,716.66 2005 13.57 15.75 113,878.43 2006 15.75 18.05 90,369.13 2007 18.05 19.61 88,675.07 2008 19.61 10.78 105,754.35 2009 10.78 12.96 70,220.48 2010 12.96 13.67 60,031.52 2011 13.67 10.78 53,813.66 2012 10.78 12.69 43,343.72 Barclays Capital Aggregate Bond Index Investment Division (Class E)................................................ 2003 12.35 12.59 337,928.72 2004 12.59 12.90 909,684.24 2005 12.90 12.97 875,676.07 2006 12.97 13.28 858,763.61 2007 13.28 13.97 784,444.17 2008 13.97 14.56 611,234.70 2009 14.56 15.09 561,315.35 2010 15.09 15.74 557,184.80 2011 15.74 16.65 526,466.51 2012 16.65 17.02 495,850.80 BlackRock Aggressive Growth Investment Division (Class E)................................................ 2003 24.43 33.85 24,635.07 2004 33.85 37.63 47,882.75 2005 37.63 41.00 45,689.14 2006 41.00 43.06 41,297.69 2007 43.06 51.09 33,398.73 2008 51.09 27.30 30,633.92 2009 27.30 40.14 28,257.84 2010 40.14 45.57 29,826.93 2011 45.57 43.49 31,374.80 2012 43.49 47.49 26,978.74 BlackRock Bond Income Investment Division (Class E)........ 2003 44.53 46.39 35,414.49 2004 46.39 47.68 70,112.32 2005 47.68 48.05 74,904.06 2006 48.05 49.38 70,579.02 2007 49.38 51.65 61,959.21 2008 51.65 49.08 54,310.84 2009 49.08 52.87 50,740.38 2010 52.87 56.38 48,958.84 2011 56.38 59.13 43,628.61 2012 59.13 62.58 36,753.17
36
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ BlackRock Diversified Investment Division (Class E)..... 2003 $30.48 $36.17 63,226.55 2004 36.17 38.60 136,889.73 2005 38.60 39.17 133,601.49 2006 39.17 42.59 114,791.83 2007 42.59 44.37 101,862.26 2008 44.37 32.85 84,562.68 2009 32.85 37.93 75,807.44 2010 37.93 40.92 79,478.47 2011 40.92 41.81 72,159.84 2012 41.81 46.23 65,154.43 BlackRock Large Cap Core Investment Division* (Class E). 2007 79.01 79.73 31,043.42 2008 79.73 49.30 25,395.96 2009 49.30 57.97 21,433.11 2010 57.97 64.37 21,059.10 2011 64.37 63.63 22,793.06 2012 63.63 71.24 20,441.72 BlackRock Large Cap Investment Division (Class E)....... 2003 47.44 60.81 21,946.12 2004 60.81 66.35 43,113.60 2005 66.35 67.65 37,748.49 2006 67.65 75.96 33,784.59 2007 75.96 79.67 0.00 BlackRock Large Cap Value Investment Division (Class E). 2003 7.92 10.57 95,061.21 2004 10.57 11.80 180,805.09 2005 11.80 12.30 160,449.56 2006 12.30 14.45 248,401.80 2007 14.45 14.70 214,750.95 2008 14.70 9.41 176,299.11 2009 9.41 10.31 157,172.75 2010 10.31 11.08 154,701.67 2011 11.08 11.15 164,401.88 2012 11.15 12.55 136,108.94 BlackRock Money Market Investment Division (Class E) (5/1/2003)............................................ 2003 22.39 22.26 6,556.58 2004 22.26 22.12 28,818.00 2005 22.12 22.40 25,847.59 2006 22.40 23.11 27,458.21 2007 23.11 23.89 20,371.08 2008 23.89 24.18 21,668.65 2009 24.18 23.91 24,492.61 2010 23.91 23.56 25,839.23 2011 23.56 23.23 39,400.96 2012 23.23 22.89 53,419.72
37
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Davis Venture Value Investment Division (Class E)...... 2003 $21.67 $27.93 30,312.18 2004 27.93 30.86 103,247.87 2005 30.86 33.51 107,349.44 2006 33.51 37.78 124,574.98 2007 37.78 38.89 111,810.22 2008 38.89 23.20 102,623.60 2009 23.20 30.15 99,637.92 2010 30.15 33.22 106,090.66 2011 33.22 31.38 85,935.22 2012 31.38 34.85 69,523.35 FI Value Leaders Investment Division (Class E)......... 2003 18.62 23.26 7,003.77 2004 23.26 26.04 28,986.63 2005 26.04 28.37 40,391.30 2006 28.37 31.25 45,430.52 2007 31.25 32.04 38,146.64 2008 32.04 19.25 26,036.40 2009 19.25 23.08 25,886.75 2010 23.08 26.03 22,399.41 2011 26.03 24.04 17,640.68 2012 24.04 27.38 15,937.58 Harris Oakmark International Investment Division (Class E)............................................ 2003 8.83 11.76 23,418.79 2004 11.76 13.99 157,295.51 2005 13.99 15.76 151,139.31 2006 15.76 20.03 199,502.16 2007 20.03 19.55 166,704.72 2008 19.55 11.40 113,224.07 2009 11.40 17.44 120,742.26 2010 17.44 20.03 122,495.56 2011 20.03 16.96 115,617.83 2012 16.96 21.60 99,692.23 Invesco Small Cap Growth Investment Division (Class E). 2003 8.48 11.62 28,663.89 2004 11.62 12.21 62,374.40 2005 12.21 13.05 55,127.15 2006 13.05 14.70 57,454.91 2007 14.70 16.11 43,624.65 2008 16.11 9.73 38,730.93 2009 9.73 12.85 37,766.16 2010 12.85 16.00 34,734.59 2011 16.00 15.61 35,797.11 2012 15.61 18.21 20,941.80 Jennison Growth Investment Division (Class E).......... 2005 4.06 4.88 52,167.37 2006 4.88 4.93 44,932.37 2007 4.93 5.42 51,308.46 2008 5.42 3.39 38,907.86 2009 3.39 4.67 121,161.49 2010 4.67 5.13 183,683.71 2011 5.13 5.08 143,034.43 2012 5.08 5.78 170,483.54
38
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Jennison Growth Investment Division (Class E) (formerly Met/Putnam Voyager Investment Division)....... 2003 $ 3.44 $ 4.26 32,610.52 2004 4.26 4.40 57,580.19 2005 4.40 4.02 57,550.47 Legg Mason ClearBridge Aggressive Growth Investment Division (Class E)...................................... 2003 5.55 6.77 12,502.92 2004 6.77 7.24 26,758.73 2005 7.24 8.12 39,423.38 2006 8.12 7.87 31,402.39 2007 7.87 7.94 27,818.16 2008 7.94 4.77 29,274.29 2009 4.77 6.26 29,473.07 2010 6.26 7.64 33,435.09 2011 7.64 7.80 73,277.21 2012 7.80 9.11 62,411.36 Legg Mason ClearBridge Aggressive Growth Investment Division (Class E)...................................... 2006 9.39 10.07 82,047.02 2007 10.07 9.35 66,897.73 2008 9.35 4.18 60,822.85 2009 4.18 5.69 57,470.75 2010 5.69 6.02 57,199.36 2011 6.02 6.40 0.00 Legg Mason Partners Aggressive Growth Investment Division (formerly Janus Growth Investment Division) (Class E)... 2003 5.29 5.55 0.00 Legg Mason Value Equity Investment Division (Class E) (formerly MFS(R) Investors Trust Investment Division)... 2003 6.51 7.79 14,467.31 2004 7.79 8.55 47,907.97 2005 8.55 9.02 86,692.72 2006 9.02 9.43 81,123.38 Loomis Sayles Small Cap Core Investment Division (Class E)............................................... 2003 17.28 23.21 9,515.41 2004 23.21 26.59 23,017.07 2005 26.59 27.98 25,835.24 2006 27.98 32.13 38,371.35 2007 32.13 35.38 52,045.85 2008 35.38 22.32 38,880.19 2009 22.32 28.61 32,210.94 2010 28.61 35.91 31,834.00 2011 35.91 35.55 32,054.41 2012 35.55 40.07 23,462.87
39
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Loomis Sayles Small Cap Growth Investment Division (Class E)............................................. 2003 $ 6.25 $ 8.91 63,963.08 2004 8.91 9.77 106,338.31 2005 9.77 10.06 78,553.10 2006 10.06 10.90 80,982.19 2007 10.90 11.22 70,074.75 2008 11.22 6.48 62,494.20 2009 6.48 8.31 58,776.47 2010 8.31 10.76 53,322.41 2011 10.76 10.92 48,775.80 2012 10.92 11.94 40,780.40 Lord Abbett Bond Debenture Investment Division (Class E)............................................. 2003 10.44 12.29 109,251.70 2004 12.29 13.11 186,732.76 2005 13.11 13.13 175,765.80 2006 13.13 14.13 174,705.35 2007 14.13 14.86 161,552.42 2008 14.86 11.93 134,259.20 2009 11.93 16.10 163,917.40 2010 16.10 17.93 175,369.31 2011 17.93 18.51 135,149.44 2012 18.51 20.61 123,514.91 Lord Abbett Mid Cap Value Investment Division (Class E). 2012 25.56 26.28 124,227.02 Lord Abbett Mid Cap Value Investment Division (Class E) (formerly Neuberger Berman Mid Cap Value Investment Division (Class E))................................... 2003 13.38 17.99 76,319.02 2004 17.99 21.77 251,133.28 2005 21.77 24.05 281,027.93 2006 24.05 26.38 220,656.00 2007 26.38 26.85 202,718.14 2008 26.85 13.92 172,510.66 2009 13.92 20.28 151,503.58 2010 20.28 25.21 163,109.82 2011 25.21 23.22 150,580.47 2012 23.22 25.69 0.00 Met/Artisan Mid Cap Value Investment Division (Class E). 2003 23.47 30.64 95,044.25 2004 30.64 33.14 185,134.88 2005 33.14 35.88 173,787.79 2006 35.88 39.71 154,485.29 2007 39.71 36.40 130,818.69 2008 36.40 19.34 121,899.38 2009 19.34 26.94 110,240.29 2010 26.94 30.51 100,223.20 2011 30.51 32.05 98,243.83 2012 32.05 35.28 78,245.59
40
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ MetLife Mid Cap Stock Index Investment Division (Class E)....................................... 2003 $ 8.63 $11.47 178,510.90 2004 11.47 13.10 300,664.65 2005 13.10 14.48 294,439.06 2006 14.48 15.68 276,322.43 2007 15.68 16.64 270,365.66 2008 16.64 10.44 236,119.79 2009 10.44 14.09 208,005.06 2010 14.09 17.51 201,564.42 2011 17.51 16.90 179,219.32 2012 16.90 19.56 156,891.56 MetLife Stock Index Investment Division (Class E). 2003 27.35 34.51 162,077.32 2004 34.51 37.54 465,903.25 2005 37.54 38.66 440,477.42 2006 38.66 43.93 396,989.41 2007 43.93 45.49 370,813.44 2008 45.49 28.16 363,473.21 2009 28.16 34.99 327,666.89 2010 34.99 39.52 339,490.00 2011 39.52 39.62 315,180.82 2012 39.62 45.12 276,819.86 MFS(R) Research International Investment Division (Class E)....................................... 2003 7.30 9.50 25,599.56 2004 9.50 11.21 70,828.12 2005 11.21 12.87 94,222.73 2006 12.87 16.09 120,925.48 2007 16.09 17.98 119,243.99 2008 17.98 10.21 123,987.72 2009 10.21 13.26 88,263.14 2010 13.26 14.58 75,610.22 2011 14.58 12.85 79,543.76 2012 12.85 14.79 51,312.77 MFS(R) Total Return Investment Division (Class E) (5/1/2004)...................................... 2004 36.45 39.62 17,149.94 2005 39.62 40.16 50,509.77 2006 40.16 44.31 71,124.70 2007 44.31 45.47 114,974.67 2008 45.47 34.80 86,913.95 2009 34.80 40.57 110,222.67 2010 40.57 43.91 119,511.53 2011 43.91 44.21 126,149.10 2012 44.21 48.50 116,717.03
41
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ MFS(R) Value Investment Division (Class E)............... 2003 $ 9.69 $11.97 214,996.50 2004 11.97 13.13 448,372.16 2005 13.13 12.74 452,608.06 2006 12.74 14.81 372,921.00 2007 14.81 14.02 332,206.15 2008 14.02 9.17 335,654.65 2009 9.17 10.91 288,597.58 2010 10.91 11.96 249,220.98 2011 11.96 11.89 242,494.32 2012 11.89 13.64 204,551.67 MLA Mid Cap Investment Division (formerly Lazard Mid Cap Investment Division) (Class E).............................................. 2003 9.67 12.04 58,322.52 2004 12.04 13.58 98,196.55 2005 13.58 14.49 94,316.75 2006 14.49 16.39 96,748.96 2007 16.39 15.72 104,909.86 2008 15.72 9.57 93,543.74 2009 9.57 12.91 78,251.09 2010 12.91 15.66 66,775.02 2011 15.66 14.63 60,757.51 2012 14.63 15.20 56,619.15 MSCI EAFE(R) Index Investment Division (formerly Morgan Stanley EAFE(R) Index Investment Division) (Class E).................................... 2003 7.06 9.55 213,668.04 2004 9.55 11.25 429,594.36 2005 11.25 12.53 414,334.00 2006 12.53 15.52 363,187.49 2007 15.52 16.91 316,096.12 2008 16.91 9.64 321,287.17 2009 9.64 12.21 284,306.48 2010 12.21 12.99 293,691.09 2011 12.99 11.19 305,943.64 2012 11.19 13.03 261,681.60 Morgan Stanley Mid Cap Growth Investment Division (Class E).............................................. 2010 13.07 15.17 146,891.87 2011 15.17 13.93 121,850.86 2012 13.93 15.03 107,856.82 Morgan Stanley Mid Cap Growth Investment Division (formerly FI Mid Cap Opportunities Investment Division (Class E))............................................. 2003 10.91 14.48 27,218.83 2004 14.48 16.69 144,473.15 2005 16.69 17.56 136,671.29 2006 17.56 19.33 135,654.97 2007 19.33 20.61 120,949.07 2008 20.61 9.06 135,907.25 2009 9.06 11.94 138,421.91 2010 11.94 12.92 0.00
42
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Neuberger Berman Genesis Investment Division (Class E).. 2003 $10.80 $15.97 251,687.65 2004 15.97 18.12 499,178.98 2005 18.12 18.57 449,154.44 2006 18.57 21.35 410,979.23 2007 21.35 20.29 359,946.92 2008 20.29 12.30 302,138.46 2009 12.30 13.68 283,371.27 2010 13.68 16.38 272,466.07 2011 16.38 17.04 266,777.20 2012 17.04 18.46 220,537.32 Oppenheimer Global Equity Investment Division (Class E). 2003 10.06 12.92 32,601.95 2004 12.92 14.79 59,343.76 2005 14.79 16.93 65,372.72 2006 16.93 19.44 62,930.90 2007 19.44 20.37 61,234.70 2008 20.37 11.94 46,221.82 2009 11.94 16.49 44,343.71 2010 16.49 18.87 45,184.46 2011 18.87 17.04 39,095.89 2012 17.04 20.38 33,675.93 PIMCO Total Return Investment Division (Class E)........ 2003 11.25 11.58 384,622.02 2004 11.58 11.99 650,652.49 2005 11.99 12.09 722,177.32 2006 12.09 12.48 548,420.10 2007 12.48 13.24 679,792.80 2008 13.24 13.11 426,006.69 2009 13.11 15.27 447,407.93 2010 15.27 16.29 536,217.64 2011 16.29 16.60 435,815.68 2012 16.60 17.87 381,839.06 RCM Tecnology Investment Division (Class E)............. 2003 2.96 4.60 222,773.97 2004 4.60 4.34 334,452.62 2005 4.34 4.75 289,437.15 2006 4.75 4.94 226,227.02 2007 4.94 6.41 391,805.49 2008 6.41 3.51 248,780.83 2009 3.51 5.51 303,452.40 2010 5.51 6.94 330,488.74 2011 6.94 6.16 290,045.67 2012 6.16 6.83 242,474.54
43
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Russell 2000(R) Index Investment Division (Class E). 2003 $ 9.35 $13.46 119,112.34 2004 13.46 15.59 225,634.05 2005 15.59 16.04 207,349.65 2006 16.04 18.61 191,942.00 2007 18.61 18.04 171,927.11 2008 18.04 11.81 138,761.89 2009 11.81 14.65 130,087.10 2010 14.65 18.28 128,817.75 2011 18.28 17.27 117,133.58 2012 17.27 19.76 98,952.39 T. Rowe Price Large Cap Growth Investment Division (Class E)......................................... 2003 8.69 11.19 69,718.44 2004 11.19 12.11 127,519.84 2005 12.11 12.70 128,655.91 2006 12.70 14.14 117,337.97 2007 14.14 15.23 116,866.38 2008 15.23 8.71 112,491.80 2009 8.71 12.29 103,365.41 2010 12.29 14.16 97,287.97 2011 14.16 13.78 89,692.65 2012 13.78 16.14 65,764.77 T. Rowe Price Mid Cap Growth Investment Division (Class E)......................................... 2003 4.55 6.13 47,071.94 2004 6.13 7.14 192,193.87 2005 7.14 8.06 243,026.42 2006 8.06 8.45 190,725.55 2007 8.45 9.79 397,174.12 2008 9.79 5.83 273,492.99 2009 5.83 8.35 234,942.57 2010 8.35 10.54 212,869.74 2011 10.54 10.22 175,942.65 2012 10.22 11.46 145,428.02 T. Rowe Price Small Cap Growth Investment Division (Class E)......................................... 2003 8.69 12.05 37,571.37 2004 12.05 13.19 72,976.35 2005 13.19 14.41 82,879.59 2006 14.41 14.72 82,048.16 2007 14.72 15.91 68,985.23 2008 15.91 10.00 85,639.95 2009 10.00 13.67 78,540.36 2010 13.67 18.15 79,183.45 2011 18.15 18.17 74,367.43 2012 18.17 20.79 52,990.95
44
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Western Asset Management Strategic Bond Opportunities Investment Division (Class E)....................... 2003 $17.06 $18.91 88,203.94 2004 18.91 19.85 253,519.43 2005 19.85 20.09 288,847.54 2006 20.09 20.76 261,032.48 2007 20.76 21.26 178,702.82 2008 21.26 17.78 140,983.01 2009 17.78 23.13 122,810.74 2010 23.13 25.68 143,803.41 2011 25.68 26.81 125,299.78 2012 26.81 29.41 108,320.81 Western Asset Management U.S Government Investment Division (Class E).................................. 2003 15.61 15.63 57,331.18 2004 15.63 15.83 142,372.65 2005 15.83 15.85 165,505.99 2006 15.85 16.24 129,658.26 2007 16.24 16.67 112,248.93 2008 16.67 16.36 98,909.76 2009 16.36 16.80 90,882.37 2010 16.80 17.50 86,161.04 2011 17.50 18.16 70,161.01 2012 18.16 18.46 59,181.32
45 GROUP I--PREFERENCE PLUS SELECT E SHARE AND AMERICAN FUNDS(R) CLASS 2 1.50 SEPARATE ACCOUNT CHARGE
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ American Funds Bond Investment Division+ (Class 2) (5/1/2006).......................................... 2006 $ 14.49 $ 15.19 9,855.83 2007 15.19 15.43 68,169.42 2008 15.43 13.76 16,239.77 2009 13.76 15.24 16,416.12 2010 15.24 15.96 24,364.59 2011 15.96 16.66 11,030.42 2012 16.66 17.26 9,151.52 American Funds Global Small Capitalization Investment Division+ (Class 2)................................. 2003 10.68 16.14 85,398.57 2004 16.14 19.19 128,270.84 2005 19.19 23.66 149,896.21 2006 23.66 28.88 146,893.34 2007 28.88 34.49 141,939.77 2008 34.49 15.76 93,838.28 2009 15.76 25.01 86,284.29 2010 25.01 30.12 83,769.53 2011 30.12 23.95 71,867.34 2012 23.95 27.84 63,194.97 American Funds Growth Investment Division+ ( Class 2). 2003 81.55 109.74 58,503.83 2004 109.74 121.43 69,240.32 2005 121.43 138.80 68,272.08 2006 138.80 150.48 63,238.49 2007 150.48 166.28 54,048.73 2008 166.28 91.63 42,147.59 2009 91.63 125.66 38,086.04 2010 125.66 146.69 36,750.77 2011 146.69 138.13 30,896.19 2012 138.13 160.16 26,764.62 American Funds Growth-Income Investment Division+ (Class 2)........................................... 2003 65.56 85.41 68,725.41 2004 85.41 92.72 96,552.45 2005 92.72 96.53 87,866.03 2006 96.53 109.39 82,701.17 2007 109.39 113.01 69,156.14 2008 113.01 69.08 55,948.52 2009 69.08 89.18 53,241.27 2010 89.18 97.75 51,024.07 2011 97.75 94.39 41,759.75 2012 94.39 109.07 34,875.77
46
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Baillie Gifford International Stock Investment Division (formerly Artio International Stock Investment Division) (Class E)................................................ 2003 $ 9.20 $11.59 83,923.39 2004 11.59 13.47 80,449.46 2005 13.47 15.64 74,019.49 2006 15.64 17.91 58,927.42 2007 17.91 19.44 41,579.91 2008 19.44 10.69 44,634.46 2009 10.69 12.84 35,121.97 2010 12.84 13.54 27,396.75 2011 13.54 10.67 21,754.69 2012 10.67 12.55 22,425.41 Barclays Capital Aggregate Bond Index Investment Division (Class E)................................................ 2003 12.32 12.56 489,599.55 2004 12.56 12.86 655,019.23 2005 12.86 12.92 602,654.35 2006 12.92 13.23 568,967.74 2007 13.23 13.90 504,058.33 2008 13.90 14.49 331,765.98 2009 14.49 15.00 308,551.57 2010 15.00 15.64 266,297.97 2011 15.64 16.55 205,511.61 2012 16.55 16.90 190,653.61 BlackRock Aggressive Growth Investment Division (Class E)................................................ 2003 24.25 33.59 13,521.08 2004 33.59 37.32 13,940.22 2005 37.32 40.64 13,270.58 2006 40.64 42.66 12,514.16 2007 42.66 50.59 12,156.89 2008 50.59 27.02 10,590.38 2009 27.02 39.70 10,383.46 2010 39.70 45.06 10,222.74 2011 45.06 42.97 9,839.03 2012 42.97 46.91 8,972.48 BlackRock Bond Income Investment Division (Class E)........ 2003 44.10 45.92 73,820.33 2004 45.92 47.17 75,491.45 2005 47.17 47.51 62,562.45 2006 47.51 48.80 51,457.60 2007 48.80 51.02 39,380.69 2008 51.02 48.46 30,754.13 2009 48.46 52.18 26,751.59 2010 52.18 55.61 25,334.02 2011 55.61 58.29 21,116.16 2012 58.29 61.66 19,067.97
47
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ BlackRock Diversified Investment Division (Class E)..... 2003 $30.23 $35.85 86,986.27 2004 35.85 38.25 81,027.13 2005 38.25 38.79 67,148.30 2006 38.79 42.16 60,729.08 2007 42.16 43.90 55,172.11 2008 43.90 32.49 43,769.76 2009 32.49 37.49 43,715.81 2010 37.49 40.42 40,112.99 2011 40.42 41.28 37,810.08 2012 41.28 45.62 33,080.01 BlackRock Large Cap Core Investment Division* (Class E). 2007 78.07 78.75 21,837.96 2008 78.75 48.68 20,064.90 2009 48.68 57.21 18,375.14 2010 57.21 63.49 16,024.53 2011 63.49 62.73 13,131.95 2012 62.73 70.20 10,820.40 BlackRock Large Cap Investment Division (Class E)....... 2003 46.98 60.19 36,210.83 2004 60.19 65.64 37,496.53 2005 65.64 66.89 30,776.69 2006 66.89 75.07 25,465.88 2007 75.07 78.73 0.00 BlackRock Large Cap Value Investment Division (Class E). 2003 7.91 10.56 38,323.74 2004 10.56 11.79 74,675.57 2005 11.79 12.27 63,527.67 2006 12.27 14.41 98,182.02 2007 14.41 14.66 99,140.93 2008 14.66 9.38 57,156.94 2009 9.38 10.27 52,277.20 2010 10.27 11.03 37,119.03 2011 11.03 11.10 35,490.67 2012 11.10 12.48 28,910.91 BlackRock Money Market Investment Division (Class E) (5/1/2003)............................................ 2003 22.17 22.03 0.29 2004 22.03 21.88 0.00 2005 21.88 22.15 0.00 2006 22.15 22.84 0.00 2007 22.84 23.60 0.00 2008 23.60 23.88 660.36 2009 23.88 23.60 0.00 2010 23.60 23.24 3.74 2011 23.24 22.90 0.00 2012 22.90 22.56 0.00
48
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Davis Venture Value Investment Division (Class E)...... 2003 $21.58 $27.80 67,574.71 2004 27.80 30.71 88,324.73 2005 30.71 33.32 93,290.01 2006 33.32 37.55 85,709.13 2007 37.55 38.63 73,834.53 2008 38.63 23.04 64,479.49 2009 23.04 29.92 58,711.45 2010 29.92 32.96 47,245.65 2011 32.96 31.11 36,642.55 2012 31.11 34.54 31,777.81 FI Value Leaders Investment Division (Class E)......... 2003 18.53 23.14 13,791.50 2004 23.14 25.88 13,941.77 2005 25.88 28.18 20,535.34 2006 28.18 31.03 23,927.32 2007 31.03 31.81 21,344.57 2008 31.81 19.10 9,222.86 2009 19.10 22.89 7,547.38 2010 22.89 25.80 3,722.53 2011 25.80 23.81 3,379.25 2012 23.81 27.11 3,184.20 Harris Oakmark International Investment Division (Class E)............................................ 2003 8.82 11.75 22,986.28 2004 11.75 13.97 64,678.33 2005 13.97 15.72 90,841.07 2006 15.72 19.98 105,485.85 2007 19.98 19.49 76,795.16 2008 19.49 11.36 56,722.39 2009 11.36 17.37 46,165.40 2010 17.37 19.94 42,650.81 2011 19.94 16.87 46,799.33 2012 16.87 21.48 41,306.64 Invesco Small Cap Growth Investment Division (Class E). 2003 8.48 11.61 21,224.05 2004 11.61 12.19 25,847.06 2005 12.19 13.03 21,235.25 2006 13.03 14.66 23,324.10 2007 14.66 16.06 13,171.09 2008 16.06 9.70 11,955.41 2009 9.70 12.79 8,420.43 2010 12.79 15.92 7,432.77 2011 15.92 15.53 7,181.60 2012 15.53 18.10 6,274.75 Jennison Growth Investment Division (Class E).......... 2005 4.05 4.87 66,299.15 2006 4.87 4.92 52,029.23 2007 4.92 5.40 47,576.81 2008 5.40 3.37 26,859.49 2009 3.37 4.65 36,039.71 2010 4.65 5.11 52,675.51 2011 5.11 5.05 43,829.91 2012 5.05 5.75 52,879.88
49
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Jennison Growth Investment Division (Class E) (formerly Met/Putnam Voyager Investment Division)....... 2003 $ 3.43 $ 4.25 79,960.85 2004 4.25 4.39 75,497.51 2005 4.39 4.01 69,047.11 Legg Mason ClearBridge Aggressive Growth Investment Division (Class E)...................................... 2003 5.55 6.76 13,831.86 2004 6.76 7.23 14,051.04 2005 7.23 8.10 11,590.10 2006 8.10 7.85 15,611.50 2007 7.85 7.91 12,187.90 2008 7.91 4.75 8,626.43 2009 4.75 6.24 10,442.02 2010 6.24 7.61 11,399.45 2011 7.61 7.76 23,185.99 2012 7.76 9.06 13,735.26 Legg Mason ClearBridge Aggressive Growth Investment Division (Class E)...................................... 2006 9.36 10.03 47,818.28 2007 10.03 9.31 47,245.59 2008 9.31 4.16 42,413.08 2009 4.16 5.66 48,083.73 2010 5.66 5.99 34,050.83 2011 5.99 6.36 0.00 Legg Mason Partners Aggressive Growth Investment Division (formerly Janus Growth Investment Division) (Class E)... 2003 5.28 5.55 0.00 Legg Mason Value Equity Investment Division (Class E) (formerly MFS(R) Investors Trust Investment Division)... 2003 6.50 7.78 49,778.26 2004 7.78 8.52 63,412.17 2005 8.52 8.99 48,904.31 2006 8.99 9.40 47,933.82 Loomis Sayles Small Cap Core Investment Division (Class E)............................................... 2003 17.21 23.10 13,258.14 2004 23.10 26.45 22,106.95 2005 26.45 27.82 22,775.37 2006 27.82 31.93 24,849.16 2007 31.93 35.14 24,753.05 2008 35.14 22.15 18,218.89 2009 22.15 28.38 17,520.05 2010 28.38 35.61 10,143.68 2011 35.61 35.23 8,861.93 2012 35.23 39.70 7,801.51
50
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Loomis Sayles Small Cap Growth Investment Division (Class E)............................................. 2003 $ 6.25 $ 8.90 40,149.06 2004 8.90 9.75 46,339.50 2005 9.75 10.04 35,241.03 2006 10.04 10.86 27,964.36 2007 10.86 11.18 22,600.94 2008 11.18 6.46 13,470.51 2009 6.46 8.27 14,355.56 2010 8.27 10.71 13,044.72 2011 10.71 10.86 10,584.12 2012 10.86 11.87 10,141.94 Lord Abbett Bond Debenture Investment Division (Class E)............................................. 2003 10.41 12.24 162,905.90 2004 12.24 13.06 169,809.79 2005 13.06 13.07 145,143.27 2006 13.07 14.06 138,459.15 2007 14.06 14.78 132,329.97 2008 14.78 11.86 94,722.60 2009 11.86 16.00 81,223.65 2010 16.00 17.81 72,087.06 2011 17.81 18.37 62,623.63 2012 18.37 20.45 55,746.24 Lord Abbett Mid Cap Value Investment Division (Class E). 2012 25.39 26.09 44,636.22 Lord Abbett Mid Cap Value Investment Division (Class E) (formerly Neuberger Berman Mid Cap Value Investment Division (Class E))................................... 2003 13.35 17.94 98,355.96 2004 17.94 21.70 139,529.27 2005 21.70 23.96 162,780.19 2006 23.96 26.27 130,877.69 2007 26.27 26.72 110,625.45 2008 26.72 13.85 89,005.48 2009 13.85 20.17 81,459.34 2010 20.17 25.06 70,064.94 2011 25.06 23.07 56,505.82 2012 23.07 25.51 0.00 Met/Artisan Mid Cap Value Investment Division (Class E). 2003 23.35 30.47 126,748.23 2004 30.47 32.95 142,365.16 2005 32.95 35.65 132,410.14 2006 35.65 39.43 108,633.17 2007 39.43 36.13 89,156.62 2008 36.13 19.19 66,805.26 2009 19.19 26.72 59,589.70 2010 26.72 30.24 51,376.34 2011 30.24 31.75 42,015.39 2012 31.75 34.94 36,978.56
51
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ MetLife Mid Cap Stock Index Investment Division (Class E)....................................... 2003 $ 8.62 $11.45 223,014.58 2004 11.45 13.07 190,838.70 2005 13.07 14.44 176,794.28 2006 14.44 15.63 153,807.28 2007 15.63 16.58 142,204.00 2008 16.58 10.40 119,921.71 2009 10.40 14.03 105,445.78 2010 14.03 17.42 87,932.09 2011 17.42 16.80 68,907.72 2012 16.80 19.44 54,776.76 MetLife Stock Index Investment Division (Class E). 2003 27.18 34.27 232,487.84 2004 34.27 37.27 334,555.05 2005 37.27 38.36 301,810.28 2006 38.36 43.57 276,481.35 2007 43.57 45.09 236,025.99 2008 45.09 27.90 224,173.71 2009 27.90 34.65 216,413.47 2010 34.65 39.12 190,476.27 2011 39.12 39.20 163,517.41 2012 39.20 44.61 130,826.63 MFS(R) Research International Investment Division (Class E)....................................... 2003 7.28 9.47 40,564.90 2004 9.47 11.17 40,356.36 2005 11.17 12.82 50,325.80 2006 12.82 16.01 65,068.38 2007 16.01 17.88 67,475.24 2008 17.88 10.16 63,115.75 2009 10.16 13.18 44,920.19 2010 13.18 14.49 37,353.66 2011 14.49 12.76 26,061.17 2012 12.76 14.68 20,283.01 MFS(R) Total Return Investment Division (Class E) (5/1/2004)...................................... 2004 36.14 39.27 3,841.22 2005 39.27 39.79 19,800.66 2006 39.79 43.88 18,561.86 2007 43.88 45.00 26,133.41 2008 45.00 34.42 19,043.01 2009 34.42 40.12 17,976.77 2010 40.12 43.39 18,152.54 2011 43.39 43.67 20,510.69 2012 43.67 47.88 22,811.63
52
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ MFS(R) Value Investment Division (Class E)............... 2003 $ 9.67 $11.94 374,576.28 2004 11.94 13.09 381,446.78 2005 13.09 12.69 370,944.59 2006 12.69 14.75 311,742.01 2007 14.75 13.96 252,505.10 2008 13.96 9.13 187,770.96 2009 9.13 10.85 162,561.67 2010 10.85 11.89 153,133.05 2011 11.89 11.81 115,870.87 2012 11.81 13.54 98,543.53 MLA Mid Cap Investment Division (formerly Lazard Mid Cap Investment Division) (Class E).............................................. 2003 9.66 12.03 33,152.01 2004 12.03 13.56 31,103.06 2005 13.56 14.46 22,140.83 2006 14.46 16.34 18,497.85 2007 16.34 15.67 24,229.79 2008 15.67 9.53 12,214.19 2009 9.53 12.86 10,153.85 2010 12.86 15.59 8,579.14 2011 15.59 14.55 7,347.21 2012 14.55 15.11 6,625.45 MSCI EAFE(R) Index Investment Division (formerly Morgan Stanley EAFE(R) Index Investment Division) (Class E).................................... 2003 7.04 9.53 300,308.08 2004 9.53 11.21 279,646.40 2005 11.21 12.49 240,656.92 2006 12.49 15.45 203,566.38 2007 15.45 16.83 189,661.67 2008 16.83 9.59 177,187.70 2009 9.59 12.14 151,261.63 2010 12.14 12.92 130,578.26 2011 12.92 11.12 118,268.87 2012 11.12 12.94 95,341.21 Morgan Stanley Mid Cap Growth Investment Division (Class E).............................................. 2010 12.98 15.07 42,126.01 2011 15.07 13.82 36,928.28 2012 13.82 14.91 35,160.57 Morgan Stanley Mid Cap Growth Investment Division (formerly FI Mid Cap Opportunities Investment Division (Class E))............................................. 2003 10.88 14.43 52,317.71 2004 14.43 16.63 121,218.28 2005 16.63 17.48 104,969.16 2006 17.48 19.23 87,624.88 2007 19.23 20.50 63,408.93 2008 20.50 9.00 56,222.49 2009 9.00 11.87 50,201.63 2010 11.87 12.84 0.00
53
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Neuberger Berman Genesis Investment Division (Class E).. 2003 $10.79 $15.94 281,458.32 2004 15.94 18.08 324,910.05 2005 18.08 18.52 276,821.58 2006 18.52 21.28 230,814.40 2007 21.28 20.21 182,013.02 2008 20.21 12.24 144,165.58 2009 12.24 13.62 137,806.90 2010 13.62 16.30 119,636.44 2011 16.30 16.95 89,165.64 2012 16.95 18.35 74,529.71 Oppenheimer Global Equity Investment Division (Class E). 2003 10.03 12.88 48,580.88 2004 12.88 14.73 50,623.96 2005 14.73 16.85 84,323.91 2006 16.85 19.35 69,770.52 2007 19.35 20.26 53,041.19 2008 20.26 11.87 36,168.26 2009 11.87 16.38 32,550.37 2010 16.38 18.74 30,138.87 2011 18.74 16.91 27,518.07 2012 16.91 20.21 18,800.69 PIMCO Total Return Investment Division (Class E)........ 2003 11.24 11.56 457,793.39 2004 11.56 11.97 448,711.92 2005 11.97 12.06 437,621.91 2006 12.06 12.44 339,991.43 2007 12.44 13.19 320,435.69 2008 13.19 13.05 241,963.04 2009 13.05 15.20 226,772.03 2010 15.20 16.21 226,976.66 2011 16.21 16.51 176,707.69 2012 16.51 17.77 159,558.60 RCM Tecnology Investment Division (Class E)............. 2003 2.96 4.59 204,467.46 2004 4.59 4.33 218,860.34 2005 4.33 4.74 183,127.85 2006 4.74 4.92 114,166.50 2007 4.92 6.39 164,987.80 2008 6.39 3.49 93,495.91 2009 3.49 5.48 130,339.87 2010 5.48 6.91 117,028.59 2011 6.91 6.13 101,790.50 2012 6.13 6.79 89,655.03
54
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Russell 2000(R) Index Investment Division (Class E). 2003 $ 9.33 $13.42 152,903.89 2004 13.42 15.54 159,019.77 2005 15.54 15.99 134,767.43 2006 15.99 18.54 124,440.52 2007 18.54 17.96 99,969.76 2008 17.96 11.75 78,538.42 2009 11.75 14.57 80,783.32 2010 14.57 18.17 65,651.52 2011 18.17 17.16 50,355.40 2012 17.16 19.62 43,831.00 T. Rowe Price Large Cap Growth Investment Division (Class E)......................................... 2003 8.67 11.16 112,546.54 2004 11.16 12.07 145,216.04 2005 12.07 12.65 127,320.85 2006 12.65 14.08 108,699.39 2007 14.08 15.16 88,159.23 2008 15.16 8.67 78,559.71 2009 8.67 12.22 69,000.95 2010 12.22 14.08 62,644.41 2011 14.08 13.69 52,849.24 2012 13.69 16.03 49,134.36 T. Rowe Price Mid Cap Growth Investment Division (Class E)......................................... 2003 4.54 6.12 95,673.83 2004 6.12 7.12 149,231.13 2005 7.12 8.04 151,849.44 2006 8.04 8.42 146,926.10 2007 8.42 9.76 152,151.38 2008 9.76 5.80 88,627.46 2009 5.80 8.32 80,658.56 2010 8.32 10.49 79,755.13 2011 10.49 10.16 60,992.10 2012 10.16 11.40 58,460.14 T. Rowe Price Small Cap Growth Investment Division (Class E)......................................... 2003 8.67 12.01 65,089.51 2004 12.01 13.14 90,183.89 2005 13.14 14.34 86,962.24 2006 14.34 14.65 55,763.37 2007 14.65 15.83 36,639.92 2008 15.83 9.94 35,351.76 2009 9.94 13.59 37,564.51 2010 13.59 18.03 37,940.89 2011 18.03 18.04 31,834.95 2012 18.04 20.62 28,918.95
55
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Western Asset Management Strategic Bond Opportunities Investment Division (Class E)....................... 2003 $16.99 $18.83 135,043.24 2004 18.83 19.75 134,643.80 2005 19.75 19.98 156,504.38 2006 19.98 20.63 119,427.82 2007 20.63 21.12 97,149.91 2008 21.12 17.66 63,131.20 2009 17.66 22.96 58,766.06 2010 22.96 25.47 60,990.98 2011 25.47 26.58 43,858.29 2012 26.58 29.14 41,324.00 Western Asset Management U.S Government Investment Division (Class E).................................. 2003 15.55 15.55 181,326.65 2004 15.55 15.75 166,629.20 2005 15.75 15.76 164,780.37 2006 15.76 16.15 123,813.46 2007 16.15 16.56 109,662.08 2008 16.56 16.24 78,800.63 2009 16.24 16.67 80,364.54 2010 16.67 17.36 84,377.04 2011 17.36 18.00 70,187.35 2012 18.00 18.29 63,969.82
56 GROUP I--PREFERENCE PLUS SELECT E SHARE AND AMERICAN FUNDS(R) CLASS 2 1.60 SEPARATE ACCOUNT CHARGE
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ American Funds Bond Investment Division+ (Class 2) (5/1/2006).............. 2006 $ 14.36 $ 15.04 3,602.47 2007 15.04 15.27 26,795.36 2008 15.27 13.60 23,110.57 2009 13.60 15.05 20,625.76 2010 15.05 15.74 16,284.48 2011 15.74 16.41 14,590.66 2012 16.41 16.99 10,535.95 American Funds Global Small Capitalization Investment Division+ (Class 2).. 2003 10.63 16.05 33,583.22 2004 16.05 19.06 128,537.65 2005 19.06 23.48 142,590.73 2006 23.48 28.63 152,181.41 2007 28.63 34.16 150,471.52 2008 34.16 15.60 106,380.52 2009 15.60 24.72 102,365.71 2010 24.72 29.74 98,037.32 2011 29.74 23.63 79,838.23 2012 23.63 27.44 66,448.07 American Funds Growth Investment Division+ ( Class 2)...................... 2003 80.02 107.58 39,810.16 2004 107.58 118.92 64,053.28 2005 118.92 135.79 63,053.30 2006 135.79 147.07 56,753.68 2007 147.07 162.35 49,908.02 2008 162.35 89.38 40,843.02 2009 89.38 122.44 39,070.82 2010 122.44 142.80 35,700.21 2011 142.80 134.32 30,814.42 2012 134.32 155.60 28,778.12 American Funds Growth-Income Investment Division+ (Class 2)................ 2003 64.34 83.72 44,066.19 2004 83.72 90.80 74,849.64 2005 90.80 94.43 74,211.75 2006 94.43 106.91 69,152.27 2007 106.91 110.34 62,927.94 2008 110.34 67.38 41,806.81 2009 67.38 86.90 39,074.67 2010 86.90 95.15 39,429.27 2011 95.15 91.79 38,494.49 2012 91.79 105.96 34,123.78
57
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Baillie Gifford International Stock Investment Division (formerly Artio International Stock Investment Division) (Class E)....................... 2003 $ 9.09 $11.44 11,902.93 2004 11.44 13.29 21,623.90 2005 13.29 15.41 35,957.35 2006 15.41 17.63 34,052.49 2007 17.63 19.12 37,045.63 2008 19.12 10.50 32,314.25 2009 10.50 12.60 28,133.88 2010 12.60 13.27 26,426.31 2011 13.27 10.45 29,174.22 2012 10.45 12.28 21,987.81 Barclays Capital Aggregate Bond Index Investment Division (Class E)........ 2003 12.27 12.50 210,344.65 2004 12.50 12.78 491,673.43 2005 12.78 12.83 460,530.48 2006 12.83 13.12 409,720.50 2007 13.12 13.78 377,855.71 2008 13.78 14.34 259,878.56 2009 14.34 14.84 236,666.63 2010 14.84 15.45 243,196.67 2011 15.45 16.33 230,337.29 2012 16.33 16.66 228,575.15 BlackRock Aggressive Growth Investment Division (Class E).................. 2003 23.90 33.07 14,524.85 2004 33.07 36.70 18,023.58 2005 36.70 39.93 16,332.73 2006 39.93 41.87 15,390.63 2007 41.87 49.60 16,286.47 2008 49.60 26.46 15,839.09 2009 26.46 38.85 14,187.67 2010 38.85 44.05 13,363.96 2011 44.05 41.97 11,080.02 2012 41.97 45.77 10,686.58 BlackRock Bond Income Investment Division (Class E)........................ 2003 43.25 44.98 37,113.50 2004 44.98 46.16 42,622.53 2005 46.16 46.45 47,470.82 2006 46.45 47.67 38,522.42 2007 47.67 49.78 38,829.14 2008 49.78 47.24 34,859.94 2009 47.24 50.81 31,588.60 2010 50.81 54.10 25,386.93 2011 54.10 56.65 22,988.99 2012 56.65 59.87 24,935.23
58
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ BlackRock Diversified Investment Division (Class E)........................ 2003 $29.73 $35.23 65,994.47 2004 35.23 37.55 72,695.82 2005 37.55 38.04 66,948.04 2006 38.04 41.31 58,566.61 2007 41.31 42.97 57,537.12 2008 42.97 31.76 42,321.30 2009 31.76 36.62 39,943.63 2010 36.62 39.44 27,004.91 2011 39.44 40.25 21,782.26 2012 40.25 44.43 19,089.32 BlackRock Large Cap Core Investment Division* (Class E).................... 2007 76.23 76.85 15,370.10 2008 76.85 47.45 13,018.91 2009 47.45 55.71 12,000.75 2010 55.71 61.77 11,841.67 2011 61.77 60.97 10,788.02 2012 60.97 68.15 10,814.74 BlackRock Large Cap Investment Division (Class E).......................... 2003 46.07 58.96 12,824.81 2004 58.96 64.24 24,089.72 2005 64.24 65.40 21,248.45 2006 65.40 73.33 16,772.72 2007 73.33 76.87 0.00 BlackRock Large Cap Value Investment Division (Class E).................... 2003 7.91 10.54 21,598.96 2004 10.54 11.76 44,681.26 2005 11.76 12.23 47,804.22 2006 12.23 14.35 78,485.77 2007 14.35 14.58 93,422.52 2008 14.58 9.32 59,143.07 2009 9.32 10.20 74,522.13 2010 10.20 10.94 65,726.25 2011 10.94 10.99 59,909.27 2012 10.99 12.35 61,360.48 BlackRock Money Market Investment Division (Class E) (5/1/2003)............ 2003 21.73 21.59 416.51 2004 21.59 21.42 4,802.10 2005 21.42 21.66 4,720.32 2006 21.66 22.31 4,092.73 2007 22.31 23.03 4,010.24 2008 23.03 23.28 3,862.21 2009 23.28 22.98 3,321.69 2010 22.98 22.62 3.57 2011 22.62 22.26 0.00 2012 22.26 21.90 0.00
59
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Davis Venture Value Investment Division (Class E).......................... 2003 $21.41 $27.54 27,983.13 2004 27.54 30.40 63,371.98 2005 30.40 32.95 63,396.39 2006 32.95 37.10 64,584.87 2007 37.10 38.12 63,901.79 2008 38.12 22.71 54,801.73 2009 22.71 29.47 48,549.91 2010 29.47 32.43 48,431.41 2011 32.43 30.58 35,736.73 2012 30.58 33.91 30,851.26 FI Value Leaders Investment Division (Class E)............................. 2003 18.35 22.89 4,734.87 2004 22.89 25.58 9,998.64 2005 25.58 27.83 13,005.67 2006 27.83 30.61 20,010.70 2007 30.61 31.34 15,000.87 2008 31.34 18.80 10,659.00 2009 18.80 22.51 10,482.22 2010 22.51 25.35 11,919.45 2011 25.35 23.37 8,499.86 2012 23.37 26.59 7,309.03 Harris Oakmark International Investment Division (Class E)................. 2003 8.81 11.72 13,203.02 2004 11.72 13.92 59,358.39 2005 13.92 15.66 63,924.08 2006 15.66 19.88 92,513.91 2007 19.88 19.36 85,403.61 2008 19.36 11.27 65,831.79 2009 11.27 17.23 68,162.19 2010 17.23 19.76 65,186.83 2011 19.76 16.70 59,483.66 2012 16.70 21.24 54,552.24 Invesco Small Cap Growth Investment Division (Class E)..................... 2003 8.47 11.58 19,935.27 2004 11.58 12.15 30,221.45 2005 12.15 12.97 27,847.43 2006 12.97 14.58 27,312.09 2007 14.58 15.96 15,643.93 2008 15.96 9.63 15,671.83 2009 9.63 12.69 12,342.17 2010 12.69 15.78 13,871.68 2011 15.78 15.37 10,439.01 2012 15.37 17.90 7,801.78 Jennison Growth Investment Division (Class E).............................. 2005 4.03 4.84 48,296.42 2006 4.84 4.89 35,917.55 2007 4.89 5.36 26,102.53 2008 5.36 3.35 17,678.92 2009 3.35 4.61 25,789.64 2010 4.61 5.05 35,083.10 2011 5.05 4.99 44,499.55 2012 4.99 5.67 38,673.55
60
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Jennison Growth Investment Division (Class E) (formerly Met/Putnam Voyager Investment Division)..................................................... 2003 $ 3.42 $ 4.24 40,814.30 2004 4.24 4.37 50,532.37 2005 4.37 3.99 50,373.04 Legg Mason ClearBridge Aggressive Growth Investment Division (Class E)..... 2003 5.54 6.74 34,626.57 2004 6.74 7.20 45,035.05 2005 7.20 8.06 39,699.03 2006 8.06 7.80 21,907.69 2007 7.80 7.86 16,303.05 2008 7.86 4.71 12,589.08 2009 4.71 6.18 12,785.58 2010 6.18 7.53 14,611.55 2011 7.53 7.67 30,404.01 2012 7.67 8.95 32,110.26 Legg Mason ClearBridge Aggressive Growth Investment Division (Class E)..... 2006 9.30 9.96 30,378.03 2007 9.96 9.23 21,734.59 2008 9.23 4.12 22,489.67 2009 4.12 5.60 25,832.70 2010 5.60 5.92 27,555.74 2011 5.92 6.29 0.00 Legg Mason Partners Aggressive Growth Investment Division (formerly Janus Growth Investment Division) (Class E).................................... 2003 5.27 5.54 0.00 Legg Mason Value Equity Investment Division (Class E) (formerly MFS(R) Investors Trust Investment Division)..................................... 2003 6.47 7.74 14,117.05 2004 7.74 8.48 31,628.18 2005 8.48 8.93 30,737.30 2006 8.93 9.34 25,132.03 Loomis Sayles Small Cap Core Investment Division (Class E)................. 2003 17.06 22.88 3,696.18 2004 22.88 26.16 7,319.76 2005 26.16 27.49 7,781.13 2006 27.49 31.53 13,575.83 2007 31.53 34.66 15,606.95 2008 34.66 21.83 10,954.83 2009 21.83 27.94 9,885.85 2010 27.94 35.02 10,094.28 2011 35.02 34.62 10,372.59 2012 34.62 38.96 9,803.57
61
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Loomis Sayles Small Cap Growth Investment Division (Class E)............... 2003 $ 6.24 $ 8.88 78,729.98 2004 8.88 9.72 69,053.06 2005 9.72 9.99 69,997.35 2006 9.99 10.80 56,182.52 2007 10.80 11.11 36,836.28 2008 11.11 6.41 28,509.86 2009 6.41 8.20 25,783.44 2010 8.20 10.60 27,042.23 2011 10.60 10.74 18,316.92 2012 10.74 11.73 16,661.94 Lord Abbett Bond Debenture Investment Division (Class E)................... 2003 10.35 12.16 61,536.62 2004 12.16 12.95 78,480.75 2005 12.95 12.95 95,558.26 2006 12.95 13.92 106,900.37 2007 13.92 14.62 80,964.05 2008 14.62 11.72 55,750.72 2009 11.72 15.79 60,644.67 2010 15.79 17.57 58,989.49 2011 17.57 18.10 55,289.81 2012 18.10 20.13 54,146.46 Lord Abbett Mid Cap Value Investment Division (Class E).................... 2012 25.05 25.72 60,106.39 Lord Abbett Mid Cap Value Investment Division (Class E) (formerly Neuberger Berman Mid Cap Value Investment Division (Class E))............ 2003 13.30 17.85 31,952.14 2004 17.85 21.57 89,084.49 2005 21.57 23.79 111,909.44 2006 23.79 26.06 101,661.82 2007 26.06 26.48 89,607.53 2008 26.48 13.71 91,618.06 2009 13.71 19.94 82,286.56 2010 19.94 24.76 83,127.47 2011 24.76 22.77 66,491.24 2012 22.77 25.17 0.00 Met/Artisan Mid Cap Value Investment Division (Class E).................... 2003 23.13 30.15 101,690.43 2004 30.15 32.57 145,020.25 2005 32.57 35.20 144,749.46 2006 35.20 38.90 110,653.46 2007 38.90 35.60 99,062.45 2008 35.60 18.89 69,854.83 2009 18.89 26.28 64,618.64 2010 26.28 29.71 61,206.72 2011 29.71 31.17 48,879.85 2012 31.17 34.25 40,945.33
62
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ MetLife Mid Cap Stock Index Investment Division (Class E).................. 2003 $ 8.60 $11.41 103,605.72 2004 11.41 13.01 225,411.46 2005 13.01 14.36 224,579.71 2006 14.36 15.53 217,458.83 2007 15.53 16.45 195,780.63 2008 16.45 10.31 136,150.21 2009 10.31 13.89 126,981.16 2010 13.89 17.24 117,417.34 2011 17.24 16.61 101,406.39 2012 16.61 19.20 90,830.61 MetLife Stock Index Investment Division (Class E).......................... 2003 26.84 33.81 92,140.62 2004 33.81 36.72 256,357.39 2005 36.72 37.76 241,434.67 2006 37.76 42.85 202,424.49 2007 42.85 44.30 184,094.62 2008 44.30 27.38 170,802.69 2009 27.38 33.97 154,833.85 2010 33.97 38.32 159,388.06 2011 38.32 38.35 156,933.75 2012 38.35 43.61 145,853.81 MFS(R) Research International Investment Division (Class E)................ 2003 7.26 9.45 15,749.60 2004 9.45 11.12 20,155.59 2005 11.12 12.76 26,995.69 2006 12.76 15.92 45,480.70 2007 15.92 17.76 56,182.22 2008 17.76 10.08 50,625.98 2009 10.08 13.07 42,610.53 2010 13.07 14.34 43,724.02 2011 14.34 12.62 42,397.02 2012 12.62 14.51 30,792.87 MFS(R) Total Return Investment Division (Class E) (5/1/2004)............... 2004 35.53 38.58 2,372.87 2005 38.58 39.05 24,860.40 2006 39.05 43.02 30,424.70 2007 43.02 44.08 41,943.27 2008 44.08 33.68 50,483.60 2009 33.68 39.22 39,770.66 2010 39.22 42.38 36,321.13 2011 42.38 42.61 38,843.68 2012 42.61 46.67 39,502.43
63
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ MFS(R) Value Investment Division (Class E)................................. 2003 $ 9.63 $11.88 185,167.26 2004 11.88 13.01 256,273.56 2005 13.01 12.60 254,824.41 2006 12.60 14.63 231,537.60 2007 14.63 13.83 208,773.93 2008 13.83 9.03 134,853.70 2009 9.03 10.73 123,745.63 2010 10.73 11.75 117,015.59 2011 11.75 11.65 100,184.79 2012 11.65 13.35 89,358.37 MLA Mid Cap Investment Division (formerly Lazard Mid Cap Investment Division) (Class E)...................................................... 2003 9.65 12.00 17,487.67 2004 12.00 13.52 25,697.55 2005 13.52 14.40 23,666.59 2006 14.40 16.26 17,294.99 2007 16.26 15.58 18,295.41 2008 15.58 9.47 15,086.65 2009 9.47 12.75 17,739.97 2010 12.75 15.45 16,888.27 2011 15.45 14.40 14,294.98 2012 14.40 14.94 13,938.89 MSCI EAFE(R) Index Investment Division (formerly Morgan Stanley EAFE(R) Index Investment Division) (Class E)..................................... 2003 7.01 9.48 133,476.39 2004 9.48 11.14 287,065.06 2005 11.14 12.40 272,867.19 2006 12.40 15.33 232,173.38 2007 15.33 16.68 232,062.93 2008 16.68 9.49 162,142.98 2009 9.49 12.00 149,009.12 2010 12.00 12.76 165,152.54 2011 12.76 10.98 171,175.97 2012 10.98 12.76 163,993.36 Morgan Stanley Mid Cap Growth Investment Division (Class E)................ 2010 12.81 14.86 49,578.40 2011 14.86 13.62 35,365.42 2012 13.62 14.67 34,841.68 Morgan Stanley Mid Cap Growth Investment Division (formerly FI Mid Cap Opportunities Investment Division (Class E))............................. 2003 10.82 14.33 72,345.81 2004 14.33 16.50 76,342.26 2005 16.50 17.33 60,450.88 2006 17.33 19.05 55,461.48 2007 19.05 20.28 48,611.58 2008 20.28 8.90 47,544.36 2009 8.90 11.72 43,516.62 2010 11.72 12.67 0.00
64
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Neuberger Berman Genesis Investment Division (Class E)..................... 2003 $10.76 $15.88 205,124.95 2004 15.88 18.00 309,839.67 2005 18.00 18.42 284,193.77 2006 18.42 21.14 247,478.57 2007 21.14 20.06 209,751.69 2008 20.06 12.14 155,793.49 2009 12.14 13.49 153,476.13 2010 13.49 16.13 136,055.50 2011 16.13 16.75 116,025.83 2012 16.75 18.12 108,147.92 Oppenheimer Global Equity Investment Division (Class E).................... 2003 9.97 12.79 50,809.38 2004 12.79 14.62 30,241.53 2005 14.62 16.71 36,252.15 2006 16.71 19.16 39,787.21 2007 19.16 20.04 35,420.70 2008 20.04 11.73 29,180.26 2009 11.73 16.18 28,216.37 2010 16.18 18.48 31,584.44 2011 18.48 16.66 30,083.98 2012 16.66 19.90 25,630.52 PIMCO Total Return Investment Division (Class E)........................... 2003 11.22 11.53 169,677.41 2004 11.53 11.92 280,191.91 2005 11.92 12.01 273,415.16 2006 12.01 12.37 230,979.81 2007 12.37 13.10 184,999.63 2008 13.10 12.95 144,421.80 2009 12.95 15.07 156,672.12 2010 15.07 16.05 180,513.35 2011 16.05 16.33 155,922.78 2012 16.33 17.56 140,091.53 RCM Tecnology Investment Division (Class E)................................ 2003 2.95 4.58 113,791.22 2004 4.58 4.31 183,366.81 2005 4.31 4.72 147,301.34 2006 4.72 4.89 126,962.77 2007 4.89 6.35 177,287.90 2008 6.35 3.46 148,694.94 2009 3.46 5.43 174,983.90 2010 5.43 6.84 154,141.32 2011 6.84 6.06 124,127.59 2012 6.06 6.71 114,866.48
65
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Russell 2000(R) Index Investment Division (Class E)........................ 2003 $ 9.29 $13.36 64,591.94 2004 13.36 15.44 105,022.07 2005 15.44 15.87 99,246.07 2006 15.87 18.39 81,405.18 2007 18.39 17.79 69,065.26 2008 17.79 11.63 59,133.65 2009 11.63 14.41 59,865.96 2010 14.41 17.95 60,918.32 2011 17.95 16.93 55,941.49 2012 16.93 19.34 49,915.51 T. Rowe Price Large Cap Growth Investment Division (Class E)............... 2003 8.64 11.10 33,643.59 2004 11.10 11.99 69,107.79 2005 11.99 12.56 64,461.91 2006 12.56 13.97 72,983.39 2007 13.97 15.02 61,879.65 2008 15.02 8.58 53,597.70 2009 8.58 12.09 46,240.67 2010 12.09 13.91 45,472.05 2011 13.91 13.51 50,089.01 2012 13.51 15.80 45,682.26 T. Rowe Price Mid Cap Growth Investment Division (Class E)................. 2003 4.53 6.10 42,207.20 2004 6.10 7.09 80,945.59 2005 7.09 8.00 90,556.35 2006 8.00 8.37 100,788.98 2007 8.37 9.69 120,524.47 2008 9.69 5.76 93,622.77 2009 5.76 8.24 87,685.04 2010 8.24 10.38 95,248.13 2011 10.38 10.05 81,457.82 2012 10.05 11.26 56,047.53 T. Rowe Price Small Cap Growth Investment Division (Class E)............... 2003 8.62 11.93 25,339.99 2004 11.93 13.03 43,390.83 2005 13.03 14.22 29,163.60 2006 14.22 14.51 30,804.38 2007 14.51 15.66 27,747.03 2008 15.66 9.82 26,696.26 2009 9.82 13.41 25,647.72 2010 13.41 17.78 31,909.97 2011 17.78 17.77 26,209.57 2012 17.77 20.30 19,089.97
66
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Western Asset Management Strategic Bond Opportunities Investment Division (Class E)................................................................ 2003 $16.85 $18.66 63,281.83 2004 18.66 19.55 137,096.33 2005 19.55 19.75 145,499.72 2006 19.75 20.38 102,957.82 2007 20.38 20.84 94,541.36 2008 20.84 17.41 76,323.43 2009 17.41 22.61 70,966.97 2010 22.61 25.06 71,331.26 2011 25.06 26.13 50,950.52 2012 26.13 28.61 56,217.28 Western Asset Management U.S Government Investment Division (Class E)...... 2003 15.42 15.41 47,499.44 2004 15.41 15.59 58,788.42 2005 15.59 15.59 63,276.92 2006 15.59 15.95 50,359.82 2007 15.95 16.35 41,529.52 2008 16.35 16.02 35,385.34 2009 16.02 16.42 34,837.97 2010 16.42 17.08 31,858.50 2011 17.08 17.70 33,223.96 2012 17.70 17.96 26,305.07
67 GROUP I--PREFERENCE PLUS SELECT E SHARE AND AMERICAN FUNDS(R) CLASS 2 1.65 SEPARATE ACCOUNT CHARGE
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ American Funds Bond Investment Division+ (Class 2) (5/1/2006).............. 2006 $ 14.30 $ 14.97 11,049.75 2007 14.97 15.19 20,204.36 2008 15.19 13.52 4,521.35 2009 13.52 14.95 7,742.30 2010 14.95 15.63 7,174.71 2011 15.63 16.29 2,871.13 2012 16.29 16.86 6,703.59 American Funds Global Small Capitalization Investment Division+ (Class 2).. 2003 10.61 16.00 21,510.49 2004 16.00 19.00 47,884.39 2005 19.00 23.39 47,538.52 2006 23.39 28.50 55,052.75 2007 28.50 33.99 61,494.55 2008 33.99 15.51 37,206.10 2009 15.51 24.58 38,931.64 2010 24.58 29.55 35,491.25 2011 29.55 23.47 19,854.93 2012 23.47 27.24 17,799.96 American Funds Growth Investment Division+ (Class 2)....................... 2003 79.27 106.52 13,948.66 2004 106.52 117.68 17,556.29 2005 117.68 134.31 18,899.19 2006 134.31 145.40 18,346.30 2007 145.40 160.42 15,964.61 2008 160.42 88.27 11,078.19 2009 88.27 120.87 8,703.94 2010 120.87 140.89 7,562.07 2011 140.89 132.46 5,934.65 2012 132.46 153.36 5,040.16 American Funds Growth-Income Investment Division+ (Class 2)................ 2003 63.73 82.89 22,621.15 2004 82.89 89.86 31,348.41 2005 89.86 93.41 23,724.36 2006 93.41 105.69 19,735.20 2007 105.69 109.03 15,766.98 2008 109.03 66.55 11,621.18 2009 66.55 85.78 10,270.02 2010 85.78 93.88 8,445.76 2011 93.88 90.52 6,800.52 2012 90.52 104.44 7,069.83
68
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Baillie Gifford International Stock Investment Division (formerly Artio International Stock Investment Division) (Class E)....................... 2003 $ 9.04 $11.37 7,106.89 2004 11.37 13.20 10,816.58 2005 13.20 15.30 19,130.74 2006 15.30 17.50 23,467.36 2007 17.50 18.96 15,831.73 2008 18.96 10.41 12,307.70 2009 10.41 12.48 13,429.70 2010 12.48 13.14 12,102.15 2011 13.14 10.35 7,837.34 2012 10.35 12.15 5,194.23 Barclays Capital Aggregate Bond Index Investment Division (Class E)........ 2003 12.25 12.46 242,877.17 2004 12.46 12.74 323,883.67 2005 12.74 12.79 258,565.00 2006 12.79 13.07 192,160.94 2007 13.07 13.71 163,276.28 2008 13.71 14.27 95,506.01 2009 14.27 14.75 88,232.01 2010 14.75 15.36 88,908.88 2011 15.36 16.22 66,061.55 2012 16.22 16.54 56,189.42 BlackRock Aggressive Growth Investment Division (Class E).................. 2003 23.72 32.81 11,117.02 2004 32.81 36.40 5,263.32 2005 36.40 39.58 4,507.47 2006 39.58 41.48 3,349.95 2007 41.48 49.11 3,720.71 2008 49.11 26.19 3,469.37 2009 26.19 38.43 2,659.55 2010 38.43 43.55 2,155.07 2011 43.55 41.47 742.43 2012 41.47 45.20 726.61 BlackRock Bond Income Investment Division (Class E)........................ 2003 42.83 44.52 21,404.04 2004 44.52 45.67 26,012.22 2005 45.67 45.93 23,754.49 2006 45.93 47.11 19,602.77 2007 47.11 49.17 16,715.47 2008 49.17 46.64 10,842.32 2009 46.64 50.14 8,881.56 2010 50.14 53.36 7,274.85 2011 53.36 55.85 3,925.25 2012 55.85 58.99 4,742.71
69
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ BlackRock Diversified Investment Division (Class E)........................ 2003 $29.49 $34.93 32,182.31 2004 34.93 37.20 30,935.25 2005 37.20 37.67 21,230.83 2006 37.67 40.88 15,218.37 2007 40.88 42.51 12,319.20 2008 42.51 31.41 8,350.17 2009 31.41 36.19 7,619.98 2010 36.19 38.96 6,212.07 2011 38.96 39.74 5,215.57 2012 39.74 43.84 5,715.30 BlackRock Large Cap Core Investment Division* (Class E).................... 2007 75.33 75.91 4,265.45 2008 75.91 46.85 3,824.78 2009 46.85 54.97 3,160.54 2010 54.97 60.93 3,165.78 2011 60.93 60.10 2,983.81 2012 60.10 67.15 3,275.56 BlackRock Large Cap Investment Division (Class E).......................... 2003 45.62 58.36 11,483.80 2004 58.36 63.55 9,152.51 2005 63.55 64.67 5,056.12 2006 64.67 72.47 4,687.33 2007 72.47 75.96 0.00 BlackRock Large Cap Value Investment Division (Class E).................... 2003 7.91 10.53 26,518.17 2004 10.53 11.74 25,909.78 2005 11.74 12.21 16,736.83 2006 12.21 14.31 21,642.24 2007 14.31 14.54 20,295.57 2008 14.54 9.29 31,979.55 2009 9.29 10.16 17,536.34 2010 10.16 10.89 16,819.71 2011 10.89 10.94 16,639.62 2012 10.94 12.28 10,390.48 BlackRock Money Market Investment Division (Class E) (5/1/2003)............ 2003 21.52 21.37 197,429.98 2004 21.37 21.19 156,476.24 2005 21.19 21.42 103,605.08 2006 21.42 22.05 97,461.14 2007 22.05 22.76 103,836.48 2008 22.76 22.99 134,957.31 2009 22.99 22.68 103,633.95 2010 22.68 22.31 91,716.05 2011 22.31 21.94 107,352.88 2012 21.94 21.58 73,543.30
70
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Davis Venture Value Investment Division (Class E).......................... 2003 $21.32 $27.42 8,223.47 2004 27.42 30.24 16,266.92 2005 30.24 32.76 17,865.06 2006 32.76 36.87 17,157.19 2007 36.87 37.87 18,197.55 2008 37.87 22.55 11,896.07 2009 22.55 29.24 7,250.97 2010 29.24 32.17 6,953.79 2011 32.17 30.32 6,289.33 2012 30.32 33.61 4,408.84 FI Value Leaders Investment Division (Class E)............................. 2003 18.26 22.77 1,435.43 2004 22.77 25.43 4,129.33 2005 25.43 27.65 6,228.53 2006 27.65 30.40 8,031.61 2007 30.40 31.11 5,063.76 2008 31.11 18.66 2,761.25 2009 18.66 22.33 2,268.99 2010 22.33 25.12 1,973.31 2011 25.12 23.16 968.98 2012 23.16 26.33 958.50 Harris Oakmark International Investment Division (Class E)................. 2003 8.81 11.71 15,937.45 2004 11.71 13.90 27,231.82 2005 13.90 15.62 48,626.25 2006 15.62 19.83 57,524.79 2007 19.83 19.30 37,242.55 2008 19.30 11.23 17,628.67 2009 11.23 17.16 21,883.76 2010 17.16 19.66 16,969.76 2011 19.66 16.61 9,868.68 2012 16.61 21.12 8,430.57 Invesco Small Cap Growth Investment Division (Class E)..................... 2003 8.46 11.57 3,082.61 2004 11.57 12.13 5,425.25 2005 12.13 12.94 2,892.63 2006 12.94 14.55 2,296.18 2007 14.55 15.91 5,764.11 2008 15.91 9.59 5,400.68 2009 9.59 12.64 2,291.57 2010 12.64 15.70 1,989.80 2011 15.70 15.29 615.13 2012 15.29 17.80 447.17 Jennison Growth Investment Division (Class E).............................. 2005 4.02 4.82 4,794.05 2006 4.82 4.87 9,278.95 2007 4.87 5.34 6,093.91 2008 5.34 3.33 6,441.64 2009 3.33 4.58 6,616.21 2010 4.58 5.03 9,524.45 2011 5.03 4.96 12,959.42 2012 4.96 5.64 18,882.49
71
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Jennison Growth Investment Division (Class E) (formerly Met/Putnam Voyager Investment Division)..................................................... 2003 $ 3.42 $ 4.23 9,294.38 2004 4.23 4.36 1,931.55 2005 4.36 3.98 1,537.07 Legg Mason ClearBridge Aggressive Growth Investment Division (Class E)..... 2003 5.53 6.73 11,784.81 2004 6.73 7.19 3,090.76 2005 7.19 8.04 4,774.01 2006 8.04 7.78 9,012.35 2007 7.78 7.83 5,055.75 2008 7.83 4.69 4,328.05 2009 4.69 6.16 2,764.06 2010 6.16 7.50 7,513.53 2011 7.50 7.63 28,244.47 2012 7.63 8.90 6,118.63 Legg Mason ClearBridge Aggressive Growth Investment Division (Class E)..... 2006 9.26 9.92 3,831.37 2007 9.92 9.19 3,187.43 2008 9.19 4.10 3,491.18 2009 4.10 5.57 3,065.85 2010 5.57 5.88 3,587.19 2011 5.88 6.25 0.00 Legg Mason Partners Aggressive Growth Investment Division (formerly Janus Growth Investment Division) (Class E).................................... 2003 5.27 5.53 0.00 Legg Mason Value Equity Investment Division (Class E) (formerly MFS(R) Investors Trust Investment Division)..................................... 2003 6.46 7.72 15,428.45 2004 7.72 8.45 9,379.60 2005 8.45 8.90 3,932.27 2006 8.90 9.30 3,926.65 Loomis Sayles Small Cap Core Investment Division (Class E)................. 2003 16.98 22.77 2,946.99 2004 22.77 26.03 4,237.26 2005 26.03 27.33 5,334.87 2006 27.33 31.33 6,476.43 2007 31.33 34.43 4,129.06 2008 34.43 21.67 3,384.67 2009 21.67 27.73 1,951.59 2010 27.73 34.73 2,885.66 2011 34.73 34.31 1,159.54 2012 34.31 38.60 631.37
72
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Loomis Sayles Small Cap Growth Investment Division (Class E)............... 2003 $ 6.23 $ 8.87 19,763.43 2004 8.87 9.70 21,407.68 2005 9.70 9.97 15,213.23 2006 9.97 10.77 10,734.67 2007 10.77 11.07 8,697.45 2008 11.07 6.39 5,407.86 2009 6.39 8.16 5,809.87 2010 8.16 10.55 8,264.69 2011 10.55 10.68 15,974.82 2012 10.68 11.66 5,915.05 Lord Abbett Bond Debenture Investment Division (Class E)................... 2003 10.32 12.12 62,740.59 2004 12.12 12.90 46,779.36 2005 12.90 12.90 39,674.00 2006 12.90 13.85 57,821.83 2007 13.85 14.54 31,208.97 2008 14.54 11.65 24,793.16 2009 11.65 15.69 27,964.03 2010 15.69 17.44 23,432.64 2011 17.44 17.96 17,794.08 2012 17.96 19.97 18,154.62 Lord Abbett Mid Cap Value Investment Division (Class E).................... 2012 24.88 25.54 8,907.47 Lord Abbett Mid Cap Value Investment Division (Class E) (formerly Neuberger Berman Mid Cap Value Investment Division (Class E))............ 2003 13.27 17.80 20,734.88 2004 17.80 21.50 57,168.96 2005 21.50 23.71 59,794.24 2006 23.71 25.95 39,707.62 2007 25.95 26.36 35,049.75 2008 26.36 13.64 23,169.25 2009 13.64 19.83 15,365.19 2010 19.83 24.61 16,373.27 2011 24.61 22.62 13,065.38 2012 22.62 25.00 0.00 Met/Artisan Mid Cap Value Investment Division (Class E).................... 2003 23.02 29.99 30,818.04 2004 29.99 32.38 38,051.70 2005 32.38 34.98 37,166.33 2006 34.98 38.63 28,597.30 2007 38.63 35.34 20,035.21 2008 35.34 18.74 11,485.60 2009 18.74 26.06 9,615.58 2010 26.06 29.45 8,328.95 2011 29.45 30.88 7,391.77 2012 30.88 33.92 6,926.20
73
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ MetLife Mid Cap Stock Index Investment Division (Class E).................. 2003 $ 8.59 $11.39 89,355.97 2004 11.39 12.98 72,807.65 2005 12.98 14.32 61,119.82 2006 14.32 15.48 46,587.87 2007 15.48 16.39 40,786.78 2008 16.39 10.26 39,596.61 2009 10.26 13.83 26,965.64 2010 13.83 17.15 22,277.89 2011 17.15 16.51 16,209.28 2012 16.51 19.08 15,898.19 MetLife Stock Index Investment Division (Class E).......................... 2003 26.67 33.58 106,327.26 2004 33.58 36.45 135,338.06 2005 36.45 37.47 109,128.30 2006 37.47 42.49 81,941.48 2007 42.49 43.91 67,036.12 2008 43.91 27.13 57,933.47 2009 27.13 33.64 50,321.09 2010 33.64 37.92 45,315.65 2011 37.92 37.94 35,578.02 2012 37.94 43.12 27,759.34 MFS(R) Research International Investment Division (Class E)................ 2003 7.26 9.43 7,079.60 2004 9.43 11.10 8,159.69 2005 11.10 12.72 6,648.82 2006 12.72 15.87 22,985.81 2007 15.87 17.70 24,792.65 2008 17.70 10.04 23,232.04 2009 10.04 13.01 15,702.82 2010 13.01 14.27 8,917.94 2011 14.27 12.55 5,499.52 2012 12.55 14.42 3,273.26 MFS(R) Total Return Investment Division (Class E) (5/1/2004)............... 2004 35.23 38.24 4,251.94 2005 38.24 38.69 7,910.43 2006 38.69 42.60 6,982.51 2007 42.60 43.63 7,881.47 2008 43.63 33.32 7,731.63 2009 33.32 38.77 5,617.31 2010 38.77 41.88 4,550.38 2011 41.88 42.08 3,737.38 2012 42.08 46.07 3,504.08
74
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ MFS(R) Value Investment Division (Class E)................................. 2003 $ 9.61 $11.84 82,579.35 2004 11.84 12.97 113,615.88 2005 12.97 12.56 95,288.30 2006 12.56 14.57 78,448.29 2007 14.57 13.77 57,758.54 2008 13.77 8.99 41,589.93 2009 8.99 10.67 36,434.56 2010 10.67 11.68 31,986.68 2011 11.68 11.58 24,985.82 2012 11.58 13.25 21,895.84 MLA Mid Cap Investment Division (formerly Lazard Mid Cap Investment Division) (Class E)...................................................... 2003 9.64 11.99 16,090.55 2004 11.99 13.49 21,366.82 2005 13.49 14.37 16,054.05 2006 14.37 16.22 16,678.76 2007 16.22 15.53 19,916.61 2008 15.53 9.43 7,689.89 2009 9.43 12.70 3,208.28 2010 12.70 15.38 3,048.90 2011 15.38 14.33 1,490.54 2012 14.33 14.86 925.07 MSCI EAFE(R) Index Investment Division (formerly Morgan Stanley EAFE(R) Index Investment Division) (Class E)..................................... 2003 7.00 9.46 144,231.71 2004 9.46 11.11 115,105.83 2005 11.11 12.35 87,206.62 2006 12.35 15.26 84,792.72 2007 15.26 16.60 66,211.48 2008 16.60 9.44 49,112.93 2009 9.44 11.94 37,078.00 2010 11.94 12.68 36,125.60 2011 12.68 10.90 32,808.89 2012 10.90 12.67 25,434.03 Morgan Stanley Mid Cap Growth Investment Division (Class E)................ 2010 12.73 14.76 20,443.97 2011 14.76 13.52 19,654.52 2012 13.52 14.56 10,852.11 Morgan Stanley Mid Cap Growth Investment Division (formerly FI Mid Cap Opportunities Investment Division (Class E))............................. 2003 10.79 14.28 10,960.78 2004 14.28 16.43 26,607.25 2005 16.43 17.25 23,598.05 2006 17.25 18.95 23,250.27 2007 18.95 20.17 17,824.40 2008 20.17 8.85 12,513.78 2009 8.85 11.64 10,936.65 2010 11.64 12.59 0.00
75
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Neuberger Berman Genesis Investment Division (Class E)..................... 2003 $10.75 $15.86 90,367.52 2004 15.86 17.96 100,432.05 2005 17.96 18.37 71,401.86 2006 18.37 21.08 53,394.82 2007 21.08 19.99 38,195.63 2008 19.99 12.09 29,997.64 2009 12.09 13.43 24,271.17 2010 13.43 16.04 25,909.41 2011 16.04 16.66 20,778.44 2012 16.66 18.01 19,774.42 Oppenheimer Global Equity Investment Division (Class E).................... 2003 9.94 12.75 5,390.09 2004 12.75 14.56 5,071.74 2005 14.56 16.63 11,373.43 2006 16.63 19.06 11,057.32 2007 19.06 19.93 10,974.17 2008 19.93 11.66 7,344.86 2009 11.66 16.07 5,991.98 2010 16.07 18.35 7,077.84 2011 18.35 16.54 5,585.30 2012 16.54 19.74 4,452.44 PIMCO Total Return Investment Division (Class E)........................... 2003 11.21 11.51 113,905.47 2004 11.51 11.90 129,642.54 2005 11.90 11.98 117,484.49 2006 11.98 12.33 104,817.34 2007 12.33 13.06 81,641.65 2008 13.06 12.90 67,345.50 2009 12.90 15.00 60,060.17 2010 15.00 15.97 63,362.09 2011 15.97 16.24 55,000.12 2012 16.24 17.45 42,628.68 RCM Tecnology Investment Division (Class E)................................ 2003 2.95 4.57 118,041.94 2004 4.57 4.30 69,091.57 2005 4.30 4.71 45,966.33 2006 4.71 4.88 40,365.66 2007 4.88 6.32 69,206.13 2008 6.32 3.45 30,019.11 2009 3.45 5.41 69,036.54 2010 5.41 6.81 63,432.45 2011 6.81 6.03 33,521.52 2012 6.03 6.67 20,559.51
76
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Russell 2000(R) Index Investment Division (Class E)........................ 2003 $ 9.27 $13.32 58,941.26 2004 13.32 15.40 49,381.26 2005 15.40 15.81 33,606.31 2006 15.81 18.31 36,172.64 2007 18.31 17.71 28,740.09 2008 17.71 11.57 35,072.74 2009 11.57 14.33 22,981.12 2010 14.33 17.84 23,666.40 2011 17.84 16.82 14,182.63 2012 16.82 19.21 19,647.63 T. Rowe Price Large Cap Growth Investment Division (Class E)............... 2003 8.62 11.07 23,065.50 2004 11.07 11.96 25,824.19 2005 11.96 12.52 71,171.71 2006 12.52 13.91 63,250.49 2007 13.91 14.95 43,920.87 2008 14.95 8.53 33,263.74 2009 8.53 12.02 32,582.66 2010 12.02 13.82 33,885.63 2011 13.82 13.42 29,735.29 2012 13.42 15.69 32,708.78 T. Rowe Price Mid Cap Growth Investment Division (Class E)................. 2003 4.53 6.10 34,028.06 2004 6.10 7.08 36,633.80 2005 7.08 7.98 46,792.70 2006 7.98 8.35 38,708.87 2007 8.35 9.66 58,323.81 2008 9.66 5.74 35,760.39 2009 5.74 8.21 21,249.23 2010 8.21 10.33 29,104.95 2011 10.33 10.00 10,738.25 2012 10.00 11.20 7,504.13 T. Rowe Price Small Cap Growth Investment Division (Class E)............... 2003 8.59 11.89 25,344.62 2004 11.89 12.98 20,175.49 2005 12.98 14.15 18,832.17 2006 14.15 14.43 18,951.70 2007 14.43 15.57 13,793.22 2008 15.57 9.76 13,273.43 2009 9.76 13.33 10,256.21 2010 13.33 17.66 14,821.77 2011 17.66 17.64 12,220.06 2012 17.64 20.14 9,697.80
77
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Western Asset Management Strategic Bond Opportunities Investment Division (Class E)................................................................ 2003 $16.78 $18.57 48,159.00 2004 18.57 19.45 58,749.91 2005 19.45 19.64 57,914.26 2006 19.64 20.26 39,654.32 2007 20.26 20.70 37,384.92 2008 20.70 17.28 19,902.98 2009 17.28 22.44 12,885.44 2010 22.44 24.86 10,889.90 2011 24.86 25.90 10,799.17 2012 25.90 28.36 11,210.78 Western Asset Management U.S Government Investment Division (Class E)...... 2003 15.36 15.34 36,893.18 2004 15.34 15.51 61,533.63 2005 15.51 15.50 52,941.33 2006 15.50 15.85 31,199.16 2007 15.85 16.24 28,526.17 2008 16.24 15.90 18,471.16 2009 15.90 16.30 20,551.61 2010 16.30 16.94 18,395.01 2011 16.94 17.54 8,754.75 2012 17.54 17.80 8,295.57
78 GROUP I--PREFERENCE PLUS SELECT E SHARE AND AMERICAN FUNDS(R) CLASS 2 1.70 SEPARATE ACCOUNT CHARGE
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ American Funds Bond Investment Division+ (Class 2) (5/1/2006).......................................... 2006 $ 14.23 $ 14.89 110,668.18 2007 14.89 15.11 252,107.71 2008 15.11 13.44 158,993.33 2009 13.44 14.86 118,527.47 2010 14.86 15.53 22,969.39 2011 15.53 16.17 437.67 2012 16.17 16.73 460.76 American Funds Global Small Capitalization Investment Division+ (Class 2)................................. 2003 10.59 15.96 171,695.10 2004 15.96 18.93 369,097.08 2005 18.93 23.30 429,939.53 2006 23.30 28.38 467,603.88 2007 28.38 33.83 501,389.85 2008 33.83 15.43 399,490.96 2009 15.43 24.44 293,090.40 2010 24.44 29.37 116,062.47 2011 29.37 23.31 6,031.79 2012 23.31 27.04 5,112.91 American Funds Growth Investment Division+ ( Class 2). 2003 78.52 105.46 124,946.44 2004 105.46 116.46 226,287.64 2005 116.46 132.85 227,880.56 2006 132.85 143.74 219,738.44 2007 143.74 158.52 200,783.72 2008 158.52 87.18 165,466.58 2009 87.18 119.31 122,803.65 2010 119.31 139.01 45,720.85 2011 139.01 130.63 3,657.11 2012 130.63 151.16 3,242.75 American Funds Growth-Income Investment Division+ (Class 2)........................................... 2003 63.13 82.07 152,150.41 2004 82.07 88.92 272,765.78 2005 88.92 92.39 271,138.47 2006 92.39 104.49 255,679.74 2007 104.49 107.74 235,028.44 2008 107.74 65.72 184,407.55 2009 65.72 84.68 140,511.13 2010 84.68 92.63 50,052.03 2011 92.63 89.27 2,562.50 2012 89.27 102.94 2,207.35
79
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Baillie Gifford International Stock Investment Division (formerly Artio International Stock Investment Division) (Class E)................................................ 2003 $ 8.99 $11.30 98,396.94 2004 11.30 13.11 168,957.84 2005 13.11 15.19 185,306.41 2006 15.19 17.36 191,749.15 2007 17.36 18.81 173,612.65 2008 18.81 10.31 149,204.71 2009 10.31 12.37 106,112.15 2010 12.37 13.02 32,891.51 2011 13.02 10.24 6,415.01 2012 10.24 12.02 5,293.84 Barclays Capital Aggregate Bond Index Investment Division (Class E)....................................... 2003 12.22 12.43 1,133,217.06 2004 12.43 12.70 1,702,061.46 2005 12.70 12.74 1,629,973.65 2006 12.74 13.01 1,336,727.57 2007 13.01 13.65 1,217,980.98 2008 13.65 14.19 851,627.56 2009 14.19 14.67 669,220.87 2010 14.67 15.26 235,869.35 2011 15.26 16.12 23,830.54 2012 16.12 16.43 23,051.80 BlackRock Aggressive Growth Investment Division (Class E)................................................ 2003 23.55 32.55 49,584.72 2004 32.55 36.09 85,446.03 2005 36.09 39.23 75,755.67 2006 39.23 41.09 56,665.34 2007 41.09 48.63 60,080.59 2008 48.63 25.92 49,365.78 2009 25.92 38.02 40,363.27 2010 38.02 43.06 13,226.07 2011 43.06 40.98 2,167.51 2012 40.98 44.65 2,126.38 BlackRock Bond Income Investment Division (Class E)........ 2003 42.41 44.07 95,087.79 2004 44.07 45.18 159,875.35 2005 45.18 45.42 156,764.32 2006 45.42 46.56 136,626.17 2007 46.56 48.57 128,409.22 2008 48.57 46.05 101,609.40 2009 46.05 49.48 73,626.13 2010 49.48 52.63 29,992.10 2011 52.63 55.06 4,856.63 2012 55.06 58.12 4,503.17
80
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ BlackRock Diversified Investment Division (Class E).. 2003 $29.25 $34.62 182,456.49 2004 34.62 36.86 328,679.57 2005 36.86 37.31 301,648.08 2006 37.31 40.47 270,681.95 2007 40.47 42.05 244,966.47 2008 42.05 31.06 176,707.83 2009 31.06 35.77 129,889.84 2010 35.77 38.49 44,679.71 2011 38.49 39.23 7,277.97 2012 39.23 43.26 7,158.99 BlackRock Large Cap Core Investment Division* (Class E).......................................... 2007 74.43 74.98 76,161.42 2008 74.98 46.25 63,191.81 2009 46.25 54.25 46,989.76 2010 54.25 60.09 18,274.57 2011 60.09 59.25 1,734.74 2012 59.25 66.17 1,687.86 BlackRock Large Cap Investment Division (Class E).... 2003 45.18 57.77 78,563.82 2004 57.77 62.87 113,317.00 2005 62.87 63.95 96,220.84 2006 63.95 71.62 81,565.90 2007 71.62 75.06 0.00 BlackRock Large Cap Value Investment Division (Class E).......................................... 2003 7.90 10.52 105,281.63 2004 10.52 11.72 205,632.61 2005 11.72 12.18 193,829.73 2006 12.18 14.28 292,964.92 2007 14.28 14.50 322,628.67 2008 14.50 9.26 254,520.03 2009 9.26 10.12 169,802.01 2010 10.12 10.84 77,715.34 2011 10.84 10.89 6,770.83 2012 10.89 12.22 6,484.70 BlackRock Money Market Investment Division (Class E) (5/1/2003)......................................... 2003 21.31 21.15 23,796.96 2004 21.15 20.97 77,164.49 2005 20.97 21.18 64,536.89 2006 21.18 21.80 52,857.00 2007 21.80 22.48 70,573.23 2008 22.48 22.70 73,386.88 2009 22.70 22.38 61,070.03 2010 22.38 22.01 16,445.34 2011 22.01 21.64 0.00 2012 21.64 21.27 0.00
81
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Davis Venture Value Investment Division (Class E)...... 2003 $21.23 $27.29 83,657.59 2004 27.29 30.09 213,727.47 2005 30.09 32.58 241,918.06 2006 32.58 36.65 259,451.17 2007 36.65 37.63 247,258.35 2008 37.63 22.39 216,091.31 2009 22.39 29.02 163,769.45 2010 29.02 31.91 50,915.62 2011 31.91 30.06 4,661.06 2012 30.06 33.30 4,577.37 FI Value Leaders Investment Division (Class E)......... 2003 18.18 22.65 41,670.14 2004 22.65 25.29 58,891.73 2005 25.29 27.48 74,892.27 2006 27.48 30.20 62,546.05 2007 30.20 30.89 59,394.89 2008 30.89 18.51 51,751.67 2009 18.51 22.14 31,537.64 2010 22.14 24.90 8,241.59 2011 24.90 22.94 775.37 2012 22.94 26.07 492.66 Harris Oakmark International Investment Division (Class E)............................................ 2003 8.80 11.69 67,210.38 2004 11.69 13.88 205,407.95 2005 13.88 15.59 274,721.74 2006 15.59 19.77 445,092.22 2007 19.77 19.24 362,817.99 2008 19.24 11.19 232,404.70 2009 11.19 17.09 187,410.49 2010 17.09 19.57 88,940.37 2011 19.57 16.53 4,543.96 2012 16.53 21.00 3,476.91 Invesco Small Cap Growth Investment Division (Class E). 2003 8.46 11.56 27,537.97 2004 11.56 12.11 45,662.56 2005 12.11 12.92 44,682.75 2006 12.92 14.51 40,476.14 2007 14.51 15.86 47,672.34 2008 15.86 9.56 41,250.62 2009 9.56 12.59 25,457.31 2010 12.59 15.63 11,799.51 2011 15.63 15.22 853.21 2012 15.22 17.70 748.52 Jennison Growth Investment Division (Class E).......... 2005 4.01 4.81 171,031.23 2006 4.81 4.85 170,050.45 2007 4.85 5.32 110,664.56 2008 5.32 3.32 107,506.11 2009 3.32 4.56 86,652.47 2010 4.56 5.00 47,150.75 2011 5.00 4.93 24,461.68 2012 4.93 5.60 23,627.80
82
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Jennison Growth Investment Division (Class E) (formerly Met/Putnam Voyager Investment Division)..... 2003 $ 3.42 $ 4.22 99,124.54 2004 4.22 4.34 112,709.98 2005 4.34 3.97 114,317.78 Legg Mason ClearBridge Aggressive Growth Investment Division (Class E).................................... 2003 5.52 6.72 107,992.73 2004 6.72 7.18 128,012.69 2005 7.18 8.02 125,711.91 2006 8.02 7.76 120,597.29 2007 7.76 7.81 84,001.26 2008 7.81 4.68 69,283.31 2009 4.68 6.13 49,275.57 2010 6.13 7.46 13,401.24 2011 7.46 7.59 9,351.44 2012 7.59 8.85 7,879.52 Legg Mason ClearBridge Aggressive Growth Investment Division (Class E).................................... 2006 9.23 9.88 142,965.72 2007 9.88 9.15 125,041.32 2008 9.15 4.08 122,680.27 2009 4.08 5.54 79,320.39 2010 5.54 5.85 46,610.60 2011 5.85 6.21 0.00 Legg Mason Partners Aggressive Growth Investment Division (formerly Janus Growth Investment Division) (Class E). 2003 5.26 5.52 0.00 Legg Mason Value Equity Investment Division (Class E) (formerly MFS(R) Investors Trust Investment Division). 2003 6.45 7.70 92,835.82 2004 7.70 8.43 131,592.98 2005 8.43 8.88 144,007.46 2006 8.88 9.27 142,418.79 Loomis Sayles Small Cap Core Investment Division (Class E)............................................. 2003 16.91 22.66 27,978.35 2004 22.66 25.89 45,909.28 2005 25.89 27.18 44,148.06 2006 27.18 31.13 61,094.69 2007 31.13 34.19 70,508.13 2008 34.19 21.51 56,358.01 2009 21.51 27.51 41,115.49 2010 27.51 34.44 13,196.28 2011 34.44 34.01 277.21 2012 34.01 38.24 276.59
83
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Loomis Sayles Small Cap Growth Investment Division (Class E)............................................. 2003 $ 6.23 $ 8.85 152,007.81 2004 8.85 9.68 245,041.76 2005 9.68 9.94 227,942.71 2006 9.94 10.74 202,132.37 2007 10.74 11.03 199,169.79 2008 11.03 6.36 145,161.35 2009 6.36 8.13 105,979.60 2010 8.13 10.50 31,648.03 2011 10.50 10.63 3,712.97 2012 10.63 11.59 2,859.67 Lord Abbett Bond Debenture Investment Division (Class E)............................................. 2003 10.29 12.08 226,434.99 2004 12.08 12.85 387,105.11 2005 12.85 12.84 421,415.83 2006 12.84 13.78 391,082.87 2007 13.78 14.46 389,016.48 2008 14.46 11.58 270,404.08 2009 11.58 15.59 221,643.90 2010 15.59 17.32 76,175.61 2011 17.32 17.83 13,510.07 2012 17.83 19.81 12,929.85 Lord Abbett Mid Cap Value Investment Division (Class E)............................................. 2012 24.71 25.36 4,684.01 Lord Abbett Mid Cap Value Investment Division (Class E) (formerly Neuberger Berman Mid Cap Value Investment Division (Class E))................................... 2003 13.24 17.76 191,491.56 2004 17.76 21.44 453,847.33 2005 21.44 23.62 530,789.61 2006 23.62 25.85 464,939.19 2007 25.85 26.24 417,721.00 2008 26.24 13.57 331,195.06 2009 13.57 19.72 241,478.31 2010 19.72 24.46 108,644.14 2011 24.46 22.47 5,244.12 2012 22.47 24.83 0.00 Met/Artisan Mid Cap Value Investment Division (Class E)............................................. 2003 22.91 29.83 224,402.29 2004 29.83 32.19 350,585.58 2005 32.19 34.76 353,511.57 2006 34.76 38.37 304,038.22 2007 38.37 35.09 262,802.15 2008 35.09 18.60 205,329.07 2009 18.60 25.84 143,927.24 2010 25.84 29.19 57,986.68 2011 29.19 30.59 5,854.83 2012 30.59 33.59 5,535.32
84
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ MetLife Mid Cap Stock Index Investment Division (Class E)....................................... 2003 $ 8.58 $11.37 469,867.64 2004 11.37 12.95 557,458.64 2005 12.95 14.29 572,483.55 2006 14.29 15.43 517,653.36 2007 15.43 16.33 495,979.59 2008 16.33 10.22 420,627.54 2009 10.22 13.76 330,512.23 2010 13.76 17.06 125,032.82 2011 17.06 16.42 8,492.30 2012 16.42 18.96 8,010.51 MetLife Stock Index Investment Division (Class E). 2003 26.50 33.35 559,552.89 2004 33.35 36.19 1,016,927.27 2005 36.19 37.18 1,018,080.88 2006 37.18 42.14 865,584.38 2007 42.14 43.52 788,687.46 2008 43.52 26.88 702,361.00 2009 26.88 33.31 525,828.32 2010 33.31 37.53 180,318.95 2011 37.53 37.53 10,320.98 2012 37.53 42.63 9,268.63 MFS(R) Research International Investment Division (Class E)....................................... 2003 7.25 9.42 71,751.51 2004 9.42 11.08 130,885.31 2005 11.08 12.69 156,924.95 2006 12.69 15.83 231,828.09 2007 15.83 17.64 214,497.93 2008 17.64 10.00 282,397.59 2009 10.00 12.95 193,328.78 2010 12.95 14.20 58,064.28 2011 14.20 12.48 10,292.84 2012 12.48 14.33 9,306.75 MFS(R) Total Return Investment Division (Class E) (5/1/2004)...................................... 2004 34.93 37.91 57,702.72 2005 37.91 38.33 124,020.75 2006 38.33 42.19 132,486.50 2007 42.19 43.18 145,281.71 2008 43.18 32.96 120,025.00 2009 32.96 38.34 109,408.46 2010 38.34 41.38 87,465.14 2011 41.38 41.57 54,926.07 2012 41.57 45.48 31,372.88
85
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ MFS(R) Value Investment Division (Class E)............... 2003 $ 9.59 $11.81 616,141.67 2004 11.81 12.93 941,616.59 2005 12.93 12.51 875,618.84 2006 12.51 14.51 735,640.68 2007 14.51 13.70 626,330.00 2008 13.70 8.94 505,198.87 2009 8.94 10.61 398,298.34 2010 10.61 11.60 141,606.53 2011 11.60 11.50 13,536.63 2012 11.50 13.16 10,894.43 MLA Mid Cap Investment Division (formerly Lazard Mid Cap Investment Division) (Class E).............................................. 2003 9.64 11.97 96,476.49 2004 11.97 13.47 170,397.38 2005 13.47 14.34 159,693.72 2006 14.34 16.17 149,216.09 2007 16.17 15.48 138,997.54 2008 15.48 9.40 104,889.06 2009 9.40 12.65 75,988.01 2010 12.65 15.31 24,237.13 2011 15.31 14.26 2,528.73 2012 14.26 14.78 2,334.14 MSCI EAFE(R) Index Investment Division (formerly Morgan Stanley EAFE(R) Index Investment Division) (Class E).................................... 2003 6.99 9.43 650,933.67 2004 9.43 11.08 720,329.01 2005 11.08 12.31 704,046.82 2006 12.31 15.20 594,964.09 2007 15.20 16.53 557,830.26 2008 16.53 9.40 522,845.54 2009 9.40 11.87 389,751.47 2010 11.87 12.61 149,687.63 2011 12.61 10.83 13,815.79 2012 10.83 12.58 13,657.02 Morgan Stanley Mid Cap Growth Investment Division (Class E).............................................. 2010 12.64 14.66 68,015.77 2011 14.66 13.42 14,912.03 2012 13.42 14.44 15,079.71 Morgan Stanley Mid Cap Growth Investment Division (formerly FI Mid Cap Opportunities Investment Division (Class E))............................................. 2003 10.76 14.23 95,625.78 2004 14.23 16.37 351,650.03 2005 16.37 17.18 315,807.06 2006 17.18 18.86 282,601.79 2007 18.86 20.06 251,053.73 2008 20.06 8.79 196,081.89 2009 8.79 11.57 157,938.03 2010 11.57 12.50 0.00
86
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Neuberger Berman Genesis Investment Division (Class E)...................................... 2003 $10.74 $15.83 605,282.33 2004 15.83 17.92 990,589.26 2005 17.92 18.32 884,650.92 2006 18.32 21.01 728,462.68 2007 21.01 19.91 639,737.38 2008 19.91 12.04 507,986.95 2009 12.04 13.36 374,410.30 2010 13.36 15.96 163,427.34 2011 15.96 16.56 12,508.27 2012 16.56 17.89 11,457.68 Oppenheimer Global Equity Investment Division (Class E)...................................... 2003 9.91 12.70 89,765.33 2004 12.70 14.50 141,395.54 2005 14.50 16.56 165,101.70 2006 16.56 18.97 181,645.39 2007 18.97 19.82 179,956.07 2008 19.82 11.60 152,625.54 2009 11.60 15.97 118,007.02 2010 15.97 18.22 48,389.62 2011 18.22 16.42 2,095.63 2012 16.42 19.58 1,418.82 PIMCO Total Return Investment Division (Class E). 2003 11.20 11.50 862,426.47 2004 11.50 11.87 1,312,202.22 2005 11.87 11.95 1,222,076.13 2006 11.95 12.30 1,081,083.66 2007 12.30 13.01 1,046,539.28 2008 13.01 12.85 833,704.05 2009 12.85 14.93 710,420.02 2010 14.93 15.89 327,716.81 2011 15.89 16.15 43,656.93 2012 16.15 17.35 42,450.47 RCM Tecnology Investment Division (Class E)...... 2003 2.95 4.57 418,424.55 2004 4.57 4.29 598,729.31 2005 4.29 4.70 492,117.51 2006 4.70 4.86 404,865.60 2007 4.86 6.30 415,296.64 2008 6.30 3.44 286,079.64 2009 3.44 5.39 285,386.45 2010 5.39 6.78 117,768.66 2011 6.78 6.00 20,447.02 2012 6.00 6.63 17,960.73
87
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Russell 2000(R) Index Investment Division (Class E). 2003 $ 9.25 $13.29 368,425.02 2004 13.29 15.35 465,748.17 2005 15.35 15.76 482,698.26 2006 15.76 18.24 458,985.33 2007 18.24 17.63 381,171.79 2008 17.63 11.51 291,674.85 2009 11.51 14.25 201,674.18 2010 14.25 17.73 65,893.25 2011 17.73 16.71 3,921.35 2012 16.71 19.07 3,386.38 T. Rowe Price Large Cap Growth Investment Division (Class E)......................................... 2003 8.60 11.04 175,711.09 2004 11.04 11.92 293,450.40 2005 11.92 12.47 276,995.23 2006 12.47 13.86 253,115.43 2007 13.86 14.88 262,823.16 2008 14.88 8.49 203,750.53 2009 8.49 11.95 136,317.47 2010 11.95 13.74 52,279.44 2011 13.74 13.34 3,824.35 2012 13.34 15.58 1,620.51 T. Rowe Price Mid Cap Growth Investment Division (Class E)......................................... 2003 4.53 6.09 236,930.75 2004 6.09 7.07 425,938.60 2005 7.07 7.96 407,430.08 2006 7.96 8.32 372,075.20 2007 8.32 9.63 444,120.13 2008 9.63 5.71 366,510.86 2009 5.71 8.17 279,610.80 2010 8.17 10.28 94,521.02 2011 10.28 9.94 5,800.75 2012 9.94 11.13 4,766.25 T. Rowe Price Small Cap Growth Investment Division (Class E)......................................... 2003 8.57 11.85 100,236.57 2004 11.85 12.93 166,959.06 2005 12.93 14.09 160,464.49 2006 14.09 14.36 152,219.64 2007 14.36 15.49 111,542.87 2008 15.49 9.70 121,234.23 2009 9.70 13.24 111,855.55 2010 13.24 17.54 39,294.86 2011 17.54 17.51 3,848.13 2012 17.51 19.98 3,430.53
88
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Western Asset Management Strategic Bond Opportunities Investment Division (Class E)....................... 2003 $16.71 $18.49 239,187.67 2004 18.49 19.35 527,932.02 2005 19.35 19.53 527,773.65 2006 19.53 20.14 464,358.14 2007 20.14 20.57 402,565.61 2008 20.57 17.16 259,083.25 2009 17.16 22.27 199,266.00 2010 22.27 24.66 92,245.68 2011 24.66 25.68 4,280.29 2012 25.68 28.10 3,919.37 Western Asset Management U.S Government Investment Division (Class E).................................. 2003 15.30 15.27 285,566.06 2004 15.27 15.43 350,140.83 2005 15.43 15.41 323,413.19 2006 15.41 15.76 280,486.66 2007 15.76 16.13 247,563.93 2008 16.13 15.79 203,692.75 2009 15.79 16.17 152,817.74 2010 16.17 16.80 45,704.56 2011 16.80 17.39 1,865.50 2012 17.39 17.64 1,830.99
89 GROUP I--PREFERENCE PLUS SELECT E SHARE AND AMERICAN FUNDS(R) CLASS 2 1.75 SEPARATE ACCOUNT CHARGE
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ American Funds Bond Investment Division+ (Class 2) (5/1/2006).......................................... 2006 $ 14.17 $ 14.82 366.37 2007 14.82 15.03 7,044.56 2008 15.03 13.36 1,550.22 2009 13.36 14.77 1,713.92 2010 14.77 15.42 5,326.74 2011 15.42 16.06 7,836.53 2012 16.06 16.60 11,103.36 American Funds Global Small Capitalization Investment Division+ (Class 2)................................. 2003 10.56 15.91 26,264.88 2004 15.91 18.87 32,210.40 2005 18.87 23.21 34,001.23 2006 23.21 28.26 37,575.75 2007 28.26 33.66 36,898.97 2008 33.66 15.35 30,590.88 2009 15.35 24.29 35,349.27 2010 24.29 29.18 36,509.04 2011 29.18 23.15 26,183.42 2012 23.15 26.84 23,925.81 American Funds Growth Investment Division+ ( Class 2). 2003 77.78 104.42 15,014.89 2004 104.42 115.25 20,010.20 2005 115.25 131.40 21,095.03 2006 131.40 142.11 14,704.81 2007 142.11 156.63 14,216.90 2008 156.63 86.10 13,079.93 2009 86.10 117.77 12,310.15 2010 117.77 137.15 11,978.25 2011 137.15 128.82 10,288.82 2012 128.82 148.99 9,372.62 American Funds Growth-Income Investment Division+ (Class 2)........................................... 2003 62.54 81.26 22,882.90 2004 81.26 88.00 19,915.47 2005 88.00 91.38 18,399.97 2006 91.38 103.30 16,270.03 2007 103.30 106.46 15,894.19 2008 106.46 64.91 12,181.32 2009 64.91 83.59 11,930.37 2010 83.59 91.39 11,880.14 2011 91.39 88.03 10,850.54 2012 88.03 101.47 9,830.68
90
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Baillie Gifford International Stock Investment Division (formerly Artio International Stock Investment Division) (Class E)................................................ 2003 $ 8.93 $11.23 26,664.14 2004 11.23 13.02 32,657.37 2005 13.02 15.07 37,830.08 2006 15.07 17.22 29,461.14 2007 17.22 18.65 17,125.94 2008 18.65 10.22 13,496.90 2009 10.22 12.25 15,642.58 2010 12.25 12.89 13,642.21 2011 12.89 10.13 11,164.93 2012 10.13 11.89 9,652.09 Barclays Capital Aggregate Bond Index Investment Division (Class E)................................................ 2003 12.20 12.40 198,429.22 2004 12.40 12.67 214,084.86 2005 12.67 12.70 214,835.07 2006 12.70 12.96 189,479.52 2007 12.96 13.59 174,075.24 2008 13.59 14.12 125,344.68 2009 14.12 14.59 130,721.62 2010 14.59 15.17 115,470.44 2011 15.17 16.01 100,907.04 2012 16.01 16.31 97,490.47 BlackRock Aggressive Growth Investment Division (Class E)................................................ 2003 23.38 32.30 8,668.62 2004 32.30 35.79 6,348.02 2005 35.79 38.88 4,678.86 2006 38.88 40.71 3,527.37 2007 40.71 48.16 3,234.78 2008 48.16 25.65 3,470.02 2009 25.65 37.61 4,195.27 2010 37.61 42.57 2,992.10 2011 42.57 40.50 1,318.17 2012 40.50 44.10 1,312.80 BlackRock Bond Income Investment Division (Class E)........ 2003 42.00 43.62 14,570.11 2004 43.62 44.69 15,440.31 2005 44.69 44.91 15,345.62 2006 44.91 46.01 10,273.58 2007 46.01 47.98 13,455.88 2008 47.98 45.46 10,332.44 2009 45.46 48.83 8,983.21 2010 48.83 51.91 8,890.48 2011 51.91 54.28 5,806.32 2012 54.28 57.27 5,663.66
91
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ BlackRock Diversified Investment Division (Class E).. 2003 $29.01 $34.32 23,378.07 2004 34.32 36.52 17,533.44 2005 36.52 36.94 16,135.32 2006 36.94 40.06 15,760.25 2007 40.06 41.60 16,591.57 2008 41.60 30.71 21,147.34 2009 30.71 35.35 20,052.77 2010 35.35 38.02 19,381.48 2011 38.02 38.74 22,752.54 2012 38.74 42.69 22,525.34 BlackRock Large Cap Core Investment Division* (Class E).......................................... 2007 73.55 74.09 4,835.44 2008 74.09 45.70 3,489.82 2009 45.70 53.60 3,668.33 2010 53.60 59.38 4,521.86 2011 59.38 58.55 3,022.33 2012 58.55 65.38 2,949.45 BlackRock Large Cap Investment Division (Class E).... 2003 44.74 57.18 14,091.56 2004 57.18 62.20 12,268.95 2005 62.20 63.23 8,568.10 2006 63.23 70.78 7,083.31 2007 70.78 74.17 0.00 BlackRock Large Cap Value Investment Division (Class E).......................................... 2003 7.90 10.51 48,663.04 2004 10.51 11.71 55,203.09 2005 11.71 12.16 45,218.23 2006 12.16 14.25 56,598.05 2007 14.25 14.46 37,205.09 2008 14.46 9.23 30,250.35 2009 9.23 10.08 25,729.21 2010 10.08 10.80 31,277.91 2011 10.80 10.84 24,507.96 2012 10.84 12.15 22,004.11 BlackRock Money Market Investment Division (Class E) (5/1/2003)......................................... 2003 21.10 20.94 0.00 2004 20.94 20.75 14,397.06 2005 20.75 20.95 6,726.55 2006 20.95 21.54 6,598.21 2007 21.54 22.21 13,943.82 2008 22.21 22.41 3,706.66 2009 22.41 22.09 1,914.64 2010 22.09 21.71 1,871.34 2011 21.71 21.33 1,825.96 2012 21.33 20.96 1,784.26
92
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Davis Venture Value Investment Division (Class E)...... 2003 $21.15 $27.17 26,493.94 2004 27.17 29.94 32,146.17 2005 29.94 32.40 28,348.25 2006 32.40 36.43 26,891.98 2007 36.43 37.38 26,961.05 2008 37.38 22.23 20,513.42 2009 22.23 28.80 18,962.42 2010 28.80 31.65 16,020.81 2011 31.65 29.80 12,467.64 2012 29.80 33.00 12,599.65 FI Value Leaders Investment Division (Class E)......... 2003 18.09 22.53 1,116.03 2004 22.53 25.14 1,587.42 2005 25.14 27.31 6,548.25 2006 27.31 29.99 7,095.20 2007 29.99 30.66 1,776.32 2008 30.66 18.36 1,268.59 2009 18.36 21.96 1,675.95 2010 21.96 24.68 1,290.61 2011 24.68 22.73 1,046.00 2012 22.73 25.81 1,034.99 Harris Oakmark International Investment Division (Class E)............................................ 2003 8.79 11.68 5,756.99 2004 11.68 13.85 34,650.85 2005 13.85 15.56 41,855.73 2006 15.56 19.72 39,538.95 2007 19.72 19.18 32,222.14 2008 19.18 11.15 27,179.02 2009 11.15 17.02 27,520.47 2010 17.02 19.48 31,488.08 2011 19.48 16.44 29,320.75 2012 16.44 20.89 26,458.16 Invesco Small Cap Growth Investment Division (Class E). 2003 8.45 11.55 1,303.68 2004 11.55 12.09 3,924.92 2005 12.09 12.89 3,898.14 2006 12.89 14.47 5,365.87 2007 14.47 15.81 3,747.57 2008 15.81 9.52 2,799.41 2009 9.52 12.53 3,096.27 2010 12.53 15.56 3,194.39 2011 15.56 15.14 2,359.81 2012 15.14 17.60 2,191.91 Jennison Growth Investment Division (Class E).......... 2005 4.00 4.80 52,607.91 2006 4.80 4.84 101,828.21 2007 4.84 5.30 86,398.28 2008 5.30 3.30 60,801.97 2009 3.30 4.54 53,268.99 2010 4.54 4.97 53,916.28 2011 4.97 4.90 47,542.63 2012 4.90 5.57 48,675.65
93
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Jennison Growth Investment Division (Class E) (formerly Met/Putnam Voyager Investment Division)..... 2003 $ 3.41 $ 4.21 37,202.23 2004 4.21 4.33 52,744.65 2005 4.33 3.96 52,278.68 Legg Mason ClearBridge Aggressive Growth Investment Division (Class E).................................... 2003 5.52 6.71 3,673.77 2004 6.71 7.16 37,982.89 2005 7.16 8.00 37,355.96 2006 8.00 7.74 25,963.33 2007 7.74 7.78 1,510.00 2008 7.78 4.66 1,086.05 2009 4.66 6.10 1,510.33 2010 6.10 7.42 1,871.54 2011 7.42 7.55 9,764.08 2012 7.55 8.80 11,196.05 Legg Mason ClearBridge Aggressive Growth Investment Division (Class E).................................... 2006 9.20 9.84 9,707.66 2007 9.84 9.11 7,328.14 2008 9.11 4.06 8,577.38 2009 4.06 5.51 8,268.48 2010 5.51 5.81 7,460.99 2011 5.81 6.17 0.00 Legg Mason Partners Aggressive Growth Investment Division (formerly Janus Growth Investment Division) (Class E). 2003 5.26 5.52 0.00 Legg Mason Value Equity Investment Division (Class E) (formerly MFS(R) Investors Trust Investment Division). 2003 6.44 7.68 12,776.81 2004 7.68 8.40 13,415.67 2005 8.40 8.85 12,773.23 2006 8.85 9.24 9,870.97 Loomis Sayles Small Cap Core Investment Division (Class E)............................................. 2003 16.84 22.55 7,404.12 2004 22.55 25.75 7,869.50 2005 25.75 27.02 5,428.42 2006 27.02 30.93 7,759.46 2007 30.93 33.96 7,648.84 2008 33.96 21.36 4,330.70 2009 21.36 27.29 3,063.99 2010 27.29 34.15 2,610.85 2011 34.15 33.71 2,838.47 2012 33.71 37.89 2,619.75
94
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Loomis Sayles Small Cap Growth Investment Division (Class E)............................................. 2003 $ 6.22 $ 8.84 23,716.37 2004 8.84 9.66 31,466.07 2005 9.66 9.92 82,657.70 2006 9.92 10.71 52,493.05 2007 10.71 11.00 28,151.52 2008 11.00 6.34 23,263.85 2009 6.34 8.09 22,123.02 2010 8.09 10.45 24,336.23 2011 10.45 10.57 18,573.96 2012 10.57 11.52 17,670.76 Lord Abbett Bond Debenture Investment Division (Class E)............................................. 2003 10.26 12.04 28,790.84 2004 12.04 12.80 26,022.93 2005 12.80 12.78 25,118.04 2006 12.78 13.72 27,719.53 2007 13.72 14.38 24,032.42 2008 14.38 11.52 16,917.67 2009 11.52 15.49 20,289.31 2010 15.49 17.20 16,271.00 2011 17.20 17.70 15,412.30 2012 17.70 19.65 13,260.47 Lord Abbett Mid Cap Value Investment Division (Class E)............................................. 2012 24.55 25.18 13,610.29 Lord Abbett Mid Cap Value Investment Division (Class E) (formerly Neuberger Berman Mid Cap Value Investment Division (Class E))................................... 2003 13.22 17.71 22,239.61 2004 17.71 21.37 29,408.03 2005 21.37 23.54 34,357.82 2006 23.54 25.74 34,738.67 2007 25.74 26.12 25,191.81 2008 26.12 13.50 16,000.99 2009 13.50 19.61 17,208.33 2010 19.61 24.31 19,431.91 2011 24.31 22.32 16,777.36 2012 22.32 24.67 0.00 Met/Artisan Mid Cap Value Investment Division (Class E)............................................. 2003 22.80 29.67 36,613.61 2004 29.67 32.00 51,842.70 2005 32.00 34.54 49,013.95 2006 34.54 38.11 36,024.63 2007 38.11 34.83 25,878.85 2008 34.83 18.45 19,926.60 2009 18.45 25.63 21,464.29 2010 25.63 28.93 18,295.78 2011 28.93 30.30 17,626.31 2012 30.30 33.26 16,744.21
95
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ MetLife Mid Cap Stock Index Investment Division (Class E)....................................... 2003 $ 8.57 $11.35 110,971.65 2004 11.35 12.93 67,646.38 2005 12.93 14.25 58,434.72 2006 14.25 15.38 58,809.73 2007 15.38 16.27 48,510.07 2008 16.27 10.18 34,491.19 2009 10.18 13.70 33,014.78 2010 13.70 16.97 35,530.59 2011 16.97 16.33 37,137.26 2012 16.33 18.84 31,646.97 MetLife Stock Index Investment Division (Class E). 2003 26.33 33.12 109,787.51 2004 33.12 35.92 103,328.81 2005 35.92 36.89 101,768.38 2006 36.89 41.79 94,586.71 2007 41.79 43.14 79,108.18 2008 43.14 26.63 68,076.34 2009 26.63 32.98 67,296.73 2010 32.98 37.15 66,098.66 2011 37.15 37.13 59,594.15 2012 37.13 42.15 56,196.66 MFS(R) Research International Investment Division (Class E)....................................... 2003 7.24 9.41 11,285.02 2004 9.41 11.06 9,595.61 2005 11.06 12.66 10,216.81 2006 12.66 15.78 36,388.15 2007 15.78 17.58 36,821.03 2008 17.58 9.96 39,742.06 2009 9.96 12.89 27,657.16 2010 12.89 14.13 21,771.08 2011 14.13 12.41 17,427.67 2012 12.41 14.25 18,042.53 MFS(R) Total Return Investment Division (Class E) (5/1/2004)...................................... 2004 34.63 37.57 720.93 2005 37.57 37.98 2,111.55 2006 37.98 41.77 3,022.66 2007 41.77 42.73 6,662.41 2008 42.73 32.61 10,151.25 2009 32.61 37.90 9,731.12 2010 37.90 40.90 10,501.07 2011 40.90 41.06 9,867.25 2012 41.06 44.90 10,088.62 MFS(R) Value Investment Division (Class E)........ 2003 9.57 11.78 83,937.88 2004 11.78 12.89 83,672.91 2005 12.89 12.47 77,760.42 2006 12.47 14.45 64,598.15 2007 14.45 13.64 48,695.41 2008 13.64 8.90 34,418.14 2009 8.90 10.55 31,448.93 2010 10.55 11.53 30,792.36 2011 11.53 11.43 29,444.97 2012 11.43 13.07 23,895.07
96
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ MLA Mid Cap Investment Division (formerly Lazard Mid Cap Investment Division) (Class E).............................................. 2003 $ 9.63 $11.96 30,292.08 2004 11.96 13.45 9,434.25 2005 13.45 14.31 6,722.56 2006 14.31 16.13 3,655.38 2007 16.13 15.43 4,515.64 2008 15.43 9.36 2,851.63 2009 9.36 12.60 3,105.14 2010 12.60 15.24 2,944.91 2011 15.24 14.18 2,918.01 2012 14.18 14.69 2,699.84 MSCI EAFE(R) Index Investment Division (formerly Morgan Stanley EAFE(R) Index Investment Division) (Class E).................................... 2003 6.97 9.41 171,239.43 2004 9.41 11.04 89,102.11 2005 11.04 12.27 74,504.10 2006 12.27 15.14 77,545.05 2007 15.14 16.45 70,784.08 2008 16.45 9.35 54,566.45 2009 9.35 11.81 51,824.35 2010 11.81 12.53 50,415.25 2011 12.53 10.76 44,767.52 2012 10.76 12.49 42,113.60 Morgan Stanley Mid Cap Growth Investment Division (Class E).............................................. 2010 12.56 14.56 14,147.25 2011 14.56 13.32 10,003.89 2012 13.32 14.33 7,253.45 Morgan Stanley Mid Cap Growth Investment Division (formerly FI Mid Cap Opportunities Investment Division (Class E))............................................. 2003 10.72 14.18 18,417.63 2004 14.18 16.30 30,255.26 2005 16.30 17.10 29,161.06 2006 17.10 18.77 22,578.45 2007 18.77 19.95 14,833.65 2008 19.95 8.74 13,026.78 2009 8.74 11.49 10,769.06 2010 11.49 12.42 0.00 Neuberger Berman Genesis Investment Division (Class E).............................................. 2003 10.72 15.80 133,125.92 2004 15.80 17.88 125,137.37 2005 17.88 18.27 82,075.51 2006 18.27 20.94 78,157.11 2007 20.94 19.84 52,575.77 2008 19.84 11.99 39,185.93 2009 11.99 13.30 43,986.51 2010 13.30 15.87 43,809.47 2011 15.87 16.47 35,329.58 2012 16.47 17.78 30,847.44
97
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Oppenheimer Global Equity Investment Division (Class E)......................................... 2003 $ 9.88 $12.66 15,909.39 2004 12.66 14.45 14,135.84 2005 14.45 16.49 13,459.92 2006 16.49 18.88 14,078.39 2007 18.88 19.72 12,000.04 2008 19.72 11.53 6,251.01 2009 11.53 15.87 7,969.05 2010 15.87 18.10 8,536.35 2011 18.10 16.29 7,923.97 2012 16.29 19.43 9,240.71 PIMCO Total Return Investment Division (Class E).... 2003 11.19 11.48 120,232.46 2004 11.48 11.85 101,401.69 2005 11.85 11.92 95,789.48 2006 11.92 12.26 69,778.52 2007 12.26 12.97 65,619.78 2008 12.97 12.80 55,472.33 2009 12.80 14.87 68,024.78 2010 14.87 15.81 60,365.18 2011 15.81 16.06 50,178.33 2012 16.06 17.25 44,217.73 RCM Tecnology Investment Division (Class E)......... 2003 2.95 4.56 110,059.90 2004 4.56 4.29 126,854.19 2005 4.29 4.68 108,475.16 2006 4.68 4.85 65,208.91 2007 4.85 6.28 74,543.57 2008 6.28 3.42 68,302.81 2009 3.42 5.36 68,877.56 2010 5.36 6.74 76,673.23 2011 6.74 5.96 60,583.81 2012 5.96 6.59 68,636.10 Russell 2000(R) Index Investment Division (Class E). 2003 9.24 13.25 71,358.34 2004 13.25 15.30 41,010.44 2005 15.30 15.70 35,330.02 2006 15.70 18.17 30,610.87 2007 18.17 17.55 21,569.60 2008 17.55 11.45 15,118.40 2009 11.45 14.17 14,516.26 2010 14.17 17.63 17,095.81 2011 17.63 16.60 16,389.37 2012 16.60 18.94 14,526.13
98
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ T. Rowe Price Large Cap Growth Investment Division (Class E)........................................... 2003 $ 8.58 $11.01 22,250.70 2004 11.01 11.88 46,365.22 2005 11.88 12.43 45,104.21 2006 12.43 13.80 46,801.80 2007 13.80 14.82 31,115.85 2008 14.82 8.45 24,928.76 2009 8.45 11.89 21,896.67 2010 11.89 13.66 28,561.12 2011 13.66 13.25 21,045.06 2012 13.25 15.47 19,215.70 T. Rowe Price Mid Cap Growth Investment Division (Class E)........................................... 2003 4.52 6.08 36,089.22 2004 6.08 7.05 35,783.95 2005 7.05 7.94 35,319.40 2006 7.94 8.30 44,402.06 2007 8.30 9.59 45,884.34 2008 9.59 5.69 35,438.52 2009 5.69 8.13 33,378.65 2010 8.13 10.23 32,905.60 2011 10.23 9.89 28,136.36 2012 9.89 11.06 28,236.11 T. Rowe Price Small Cap Growth Investment Division (Class E)........................................... 2003 8.54 11.81 26,106.42 2004 11.81 12.88 28,700.52 2005 12.88 14.03 28,152.93 2006 14.03 14.29 20,522.63 2007 14.29 15.40 8,873.48 2008 15.40 9.65 6,601.63 2009 9.65 13.16 5,869.61 2010 13.16 17.41 8,301.84 2011 17.41 17.38 6,846.82 2012 17.38 19.82 7,126.60 Western Asset Management Strategic Bond Opportunities Investment Division (Class E)....................... 2003 16.65 18.40 31,477.12 2004 18.40 19.25 34,624.63 2005 19.25 19.43 36,476.03 2006 19.43 20.02 23,569.48 2007 20.02 20.43 18,993.14 2008 20.43 17.04 14,582.46 2009 17.04 22.10 13,118.45 2010 22.10 24.46 11,249.97 2011 24.46 25.46 12,899.85 2012 25.46 27.84 11,918.26
99
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Western Asset Management U.S Government Investment Division (Class E)............................... 2003 $15.23 $15.20 40,539.86 2004 15.20 15.36 41,984.65 2005 15.36 15.33 34,445.94 2006 15.33 15.66 23,937.23 2007 15.66 16.03 36,764.12 2008 16.03 15.68 21,302.55 2009 15.68 16.05 18,582.82 2010 16.05 16.67 14,088.45 2011 16.67 17.25 9,759.11 2012 17.25 17.48 9,219.09
100 GROUP I--PREFERENCE PLUS SELECT E SHARE AND AMERICAN FUNDS(R) CLASS 2 1.80 SEPARATE ACCOUNT CHARGE
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ American Funds Bond Investment Division+ (Class 2) (5/1/2006).......................................... 2006 $ 14.10 $ 14.75 11,078.73 2007 14.75 14.95 28,326.11 2008 14.95 13.29 11,990.83 2009 13.29 14.67 4,500.71 2010 14.67 15.32 1.55 2011 15.32 15.94 0.00 2012 15.94 16.47 0.00 American Funds Global Small Capitalization Investment Division+ (Class 2)................................. 2003 10.54 15.87 33,168.46 2004 15.87 18.81 0.00 2005 18.81 23.12 50,476.12 2006 23.12 28.13 48,084.16 2007 28.13 33.50 48,905.54 2008 33.50 15.27 37,984.19 2009 15.27 24.15 13,590.74 2010 24.15 29.00 1.25 2011 29.00 22.99 0.00 2012 22.99 26.64 0.00 American Funds Growth Investment Division+ (Class 2).. 2003 77.05 103.38 29,210.57 2004 103.38 114.05 0.00 2005 114.05 129.97 37,762.93 2006 129.97 140.49 33,428.47 2007 140.49 154.77 30,773.52 2008 154.77 85.03 26,302.96 2009 85.03 116.26 14,869.18 2010 116.26 135.31 0.24 2011 135.31 127.03 0.00 2012 127.03 146.85 0.00 American Funds Growth-Income Investment Division+ (Class 2)........................................... 2003 61.95 80.45 33,120.08 2004 80.45 87.08 0.00 2005 87.08 90.39 36,847.22 2006 90.39 102.12 32,766.71 2007 102.12 105.19 29,642.17 2008 105.19 64.11 28,032.01 2009 64.11 82.51 17,177.91 2010 82.51 90.17 2.14 2011 90.17 86.81 0.00 2012 86.81 100.01 0.00
101
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Baillie Gifford International Stock Investment Division (formerly Artio International Stock Investment Division) (Class E)................................................ 2003 $ 8.88 $11.16 28,017.90 2004 11.16 12.93 28,339.03 2005 12.93 14.96 25,342.92 2006 14.96 17.09 28,493.39 2007 17.09 18.50 29,010.54 2008 18.50 10.13 26,597.52 2009 10.13 12.14 7,276.01 2010 12.14 12.76 1.90 2011 12.76 10.03 0.00 2012 10.03 11.76 0.00 Barclays Capital Aggregate Bond Index Investment Division (Class E)................................................ 2003 12.17 12.37 146,566.00 2004 12.37 12.63 160,937.89 2005 12.63 12.65 145,025.41 2006 12.65 12.91 152,282.73 2007 12.91 13.53 139,511.09 2008 13.53 14.05 99,282.20 2009 14.05 14.51 51,903.27 2010 14.51 15.08 2.16 2011 15.08 15.91 0.00 2012 15.91 16.19 0.00 BlackRock Aggressive Growth Investment Division (Class E)................................................ 2003 23.21 32.05 10,857.62 2004 32.05 35.50 12,059.65 2005 35.50 38.54 10,541.44 2006 38.54 40.33 6,842.26 2007 40.33 47.68 6,992.79 2008 47.68 25.39 5,777.75 2009 25.39 37.20 4,010.31 2010 37.20 42.09 0.26 2011 42.09 40.03 0.00 2012 40.03 43.56 0.00 BlackRock Bond Income Investment Division (Class E)........ 2003 41.59 43.17 27,575.46 2004 43.17 44.22 27,352.41 2005 44.22 44.41 28,920.53 2006 44.41 45.48 27,734.40 2007 45.48 47.40 27,227.24 2008 47.40 44.89 20,471.57 2009 44.89 48.19 1,873.61 2010 48.19 51.20 4.44 2011 51.20 53.51 0.00 2012 53.51 56.43 0.00
102
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ BlackRock Diversified Investment Division (Class E)..... 2003 $28.77 $34.02 21,987.52 2004 34.02 36.18 29,583.42 2005 36.18 36.59 23,569.26 2006 36.59 39.65 17,060.48 2007 39.65 41.16 15,523.04 2008 41.16 30.37 11,170.71 2009 30.37 34.94 3,996.64 2010 34.94 37.56 2.84 2011 37.56 38.24 0.00 2012 38.24 42.13 0.00 BlackRock Large Cap Core Investment Division* (Class E). 2007 72.68 73.17 6,596.08 2008 73.17 45.09 3,982.82 2009 45.09 52.83 2,147.25 2010 52.83 58.46 1.66 2011 58.46 57.58 0.00 2012 57.58 64.24 0.00 BlackRock Large Cap Investment Division (Class E)....... 2003 44.31 56.59 12,254.04 2004 56.59 61.53 12,114.36 2005 61.53 62.52 9,781.28 2006 62.52 69.95 6,295.52 2007 69.95 73.29 0.00 BlackRock Large Cap Value Investment Division (Class E). 2003 7.90 10.51 15,353.02 2004 10.51 11.69 28,767.25 2005 11.69 12.14 28,964.83 2006 12.14 14.21 39,442.04 2007 14.21 14.41 32,913.69 2008 14.41 9.19 16,109.00 2009 9.19 10.04 4,186.11 2010 10.04 10.75 5.77 2011 10.75 10.78 0.00 2012 10.78 12.09 0.00 BlackRock Money Market Investment Division (Class E) (5/1/2003)............................................ 2003 20.89 20.73 0.00 2004 20.73 20.53 0.00 2005 20.53 20.71 0.00 2006 20.71 21.29 0.00 2007 21.29 21.94 0.00 2008 21.94 22.13 0.00 2009 22.13 21.80 0.00 2010 21.80 21.41 0.00 2011 21.41 21.03 0.00 2012 21.03 20.65 0.00
103
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Davis Venture Value Investment Division (Class E)...... 2003 $21.06 $27.04 27,361.56 2004 27.04 29.78 43,083.43 2005 29.78 32.22 50,363.72 2006 32.22 36.21 57,658.41 2007 36.21 37.13 52,841.38 2008 37.13 22.08 49,989.04 2009 22.08 28.59 30,967.02 2010 28.59 31.39 1.62 2011 31.39 29.55 0.00 2012 29.55 32.70 0.00 FI Value Leaders Investment Division (Class E)......... 2003 18.00 22.41 3,308.58 2004 22.41 24.99 3,475.82 2005 24.99 27.13 4,709.99 2006 27.13 29.79 4,285.98 2007 29.79 30.44 3,397.64 2008 30.44 18.22 3,213.20 2009 18.22 21.77 1,729.53 2010 21.77 24.46 1.21 2011 24.46 22.52 0.00 2012 22.52 25.56 0.00 Harris Oakmark International Investment Division (Class E)............................................ 2003 8.79 11.67 12,877.02 2004 11.67 13.83 17,894.61 2005 13.83 15.53 27,126.37 2006 15.53 19.67 45,874.36 2007 19.67 19.12 28,386.07 2008 19.12 11.11 19,273.62 2009 11.11 16.95 5,226.73 2010 16.95 19.39 3.98 2011 19.39 16.36 0.00 2012 16.36 20.77 0.00 Invesco Small Cap Growth Investment Division (Class E). 2003 8.45 11.53 22,282.93 2004 11.53 12.07 20,763.27 2005 12.07 12.86 20,416.74 2006 12.86 14.43 17,594.89 2007 14.43 15.76 14,744.86 2008 15.76 9.49 7,632.24 2009 9.49 12.48 5,613.31 2010 12.48 15.49 4.59 2011 15.49 15.06 0.00 2012 15.06 17.50 0.00 Jennison Growth Investment Division (Class E).......... 2005 3.99 4.78 45,372.85 2006 4.78 4.82 39,376.17 2007 4.82 5.28 38,796.43 2008 5.28 3.29 26,036.44 2009 3.29 4.52 1,073.48 2010 4.52 4.95 11.84 2011 4.95 4.87 0.00 2012 4.87 5.53 0.00
104
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Jennison Growth Investment Division (Class E) (formerly Met/Putnam Voyager Investment Division)....... 2003 $ 3.41 $ 4.21 39,728.83 2004 4.21 4.32 40,694.70 2005 4.32 3.95 40,675.99 Legg Mason ClearBridge Aggressive Growth Investment Division (Class E)...................................... 2003 5.51 6.70 9,963.30 2004 6.70 7.15 6,085.33 2005 7.15 7.98 5,227.80 2006 7.98 7.72 5,135.36 2007 7.72 7.75 4,436.92 2008 7.75 4.64 2,745.18 2009 4.64 6.08 890.83 2010 6.08 7.39 10.10 2011 7.39 7.51 0.00 2012 7.51 8.75 0.00 Legg Mason ClearBridge Aggressive Growth Investment Division (Class E)...................................... 2006 9.17 9.80 108,987.74 2007 9.80 9.07 109,398.12 2008 9.07 4.04 110,782.18 2009 4.04 5.48 104,447.77 2010 5.48 5.78 1.31 2011 5.78 6.14 0.00 Legg Mason Partners Aggressive Growth Investment Division (formerly Janus Growth Investment Division) (Class E)... 2003 5.25 5.51 0.00 Legg Mason Value Equity Investment Division (Class E) (formerly MFS(R) Investors Trust Investment Division)... 2003 6.42 7.67 69,949.34 2004 7.67 8.38 117,348.74 2005 8.38 8.82 108,896.99 2006 8.82 9.21 108,721.48 Loomis Sayles Small Cap Core Investment Division (Class E)............................................... 2003 16.76 22.44 2,345.86 2004 22.44 25.61 2,256.23 2005 25.61 26.86 1,844.68 2006 26.86 30.74 2,132.31 2007 30.74 33.73 2,727.85 2008 33.73 21.20 2,402.54 2009 21.20 27.08 1,931.44 2010 27.08 33.87 1.20 2011 33.87 33.41 0.00 2012 33.41 37.53 0.00
105
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Loomis Sayles Small Cap Growth Investment Division (Class E)............................................. 2003 $ 6.21 $ 8.83 40,793.11 2004 8.83 9.65 32,953.14 2005 9.65 9.90 26,405.22 2006 9.90 10.68 22,498.07 2007 10.68 10.96 19,778.24 2008 10.96 6.31 14,201.82 2009 6.31 8.06 8,608.86 2010 8.06 10.40 4.49 2011 10.40 10.51 0.00 2012 10.51 11.46 0.00 Lord Abbett Bond Debenture Investment Division (Class E)............................................. 2003 10.23 12.00 39,415.43 2004 12.00 12.75 33,886.01 2005 12.75 12.73 31,329.92 2006 12.73 13.65 31,625.30 2007 13.65 14.31 31,131.93 2008 14.31 11.45 23,497.54 2009 11.45 15.39 7,824.08 2010 15.39 17.09 10.93 2011 17.09 17.57 0.00 2012 17.57 19.50 0.00 Lord Abbett Mid Cap Value Investment Division (Class E). 2012 24.38 25.01 0.00 Lord Abbett Mid Cap Value Investment Division (Class E) (formerly Neuberger Berman Mid Cap Value Investment Division (Class E))................................... 2003 13.19 17.67 66,851.01 2004 17.67 21.31 98,462.11 2005 21.31 23.46 107,470.16 2006 23.46 25.64 90,273.43 2007 25.64 26.00 92,906.71 2008 26.00 13.43 85,426.08 2009 13.43 19.50 52,665.71 2010 19.50 24.16 3.18 2011 24.16 22.18 0.00 2012 22.18 24.50 0.00 Met/Artisan Mid Cap Value Investment Division (Class E). 2003 22.69 29.51 59,946.84 2004 29.51 31.82 72,274.83 2005 31.82 34.32 65,042.36 2006 34.32 37.85 62,213.57 2007 37.85 34.57 52,866.08 2008 34.57 18.31 44,421.14 2009 18.31 25.41 32,968.42 2010 25.41 28.67 5.61 2011 28.67 30.02 0.00 2012 30.02 32.93 0.00
106
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ MetLife Mid Cap Stock Index Investment Division (Class E)....................................... 2003 $ 8.56 $11.33 67,406.81 2004 11.33 12.90 68,381.95 2005 12.90 14.21 58,401.15 2006 14.21 15.33 55,706.01 2007 15.33 16.21 54,535.88 2008 16.21 10.13 44,825.27 2009 10.13 13.63 22,542.98 2010 13.63 16.88 0.60 2011 16.88 16.23 0.00 2012 16.23 18.72 0.00 MetLife Stock Index Investment Division (Class E). 2003 26.17 32.89 79,268.86 2004 32.89 35.66 118,801.55 2005 35.66 36.60 89,671.46 2006 36.60 41.44 74,942.80 2007 41.44 42.76 71,195.33 2008 42.76 26.38 67,227.31 2009 26.38 32.66 32,517.22 2010 32.66 36.76 6.15 2011 36.76 36.73 0.00 2012 36.73 41.68 0.00 MFS(R) Research International Investment Division (Class E)....................................... 2003 7.24 9.39 33,498.87 2004 9.39 11.04 41,768.42 2005 11.04 12.63 27,894.46 2006 12.63 15.73 28,180.50 2007 15.73 17.52 40,426.07 2008 17.52 9.92 34,273.06 2009 9.92 12.84 9,974.12 2010 12.84 14.06 4.26 2011 14.06 12.35 0.00 2012 12.35 14.17 0.00 MFS(R) Total Return Investment Division (Class E) (5/1/2004)...................................... 2004 34.34 37.24 0.00 2005 37.24 37.62 1,263.35 2006 37.62 41.36 2,345.10 2007 41.36 42.29 2,946.81 2008 42.29 32.25 653.80 2009 32.25 37.48 5,237.64 2010 37.48 40.42 14,775.03 2011 40.42 40.55 14,138.39 2012 40.55 44.33 14,395.49
107
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ MFS(R) Value Investment Division (Class E)............... 2003 $ 9.55 $11.75 187,898.97 2004 11.75 12.85 191,141.96 2005 12.85 12.42 179,104.51 2006 12.42 14.39 131,825.95 2007 14.39 13.58 112,403.00 2008 13.58 8.85 102,276.68 2009 8.85 10.49 64,032.08 2010 10.49 11.46 17.51 2011 11.46 11.35 0.00 2012 11.35 12.98 0.00 MLA Mid Cap Investment Division (formerly Lazard Mid Cap Investment Division) (Class E).............................................. 2003 9.63 11.95 20,956.54 2004 11.95 13.43 10,054.92 2005 13.43 14.28 9,683.75 2006 14.28 16.09 7,740.24 2007 16.09 15.38 10,364.86 2008 15.38 9.33 8,474.42 2009 9.33 12.55 10,497.61 2010 12.55 15.17 2.49 2011 15.17 14.11 0.00 2012 14.11 14.61 0.00 MSCI EAFE(R) Index Investment Division (formerly Morgan Stanley EAFE(R) Index Investment Division) (Class E).................................... 2003 6.96 9.38 112,355.06 2004 9.38 11.01 115,802.07 2005 11.01 12.22 84,285.99 2006 12.22 15.08 71,440.05 2007 15.08 16.38 60,548.48 2008 16.38 9.30 60,944.57 2009 9.30 11.74 22,254.17 2010 11.74 12.45 2.09 2011 12.45 10.69 0.00 2012 10.69 12.40 0.00 Morgan Stanley Mid Cap Growth Investment Division (Class E).............................................. 2010 12.48 14.46 1.58 2011 14.46 13.22 0.00 2012 13.22 14.22 0.00 Morgan Stanley Mid Cap Growth Investment Division (formerly FI Mid Cap Opportunities Investment Division (Class E))............................................. 2003 10.69 14.13 8,156.23 2004 14.13 16.24 21,466.02 2005 16.24 17.02 19,312.77 2006 17.02 18.68 15,874.21 2007 18.68 19.84 16,521.86 2008 19.84 8.69 13,140.83 2009 8.69 11.42 3,513.99 2010 11.42 12.34 0.00
108
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Neuberger Berman Genesis Investment Division (Class E).. 2003 $10.71 $15.77 125,325.24 2004 15.77 17.84 131,251.05 2005 17.84 18.22 107,057.96 2006 18.22 20.87 83,495.52 2007 20.87 19.76 72,555.51 2008 19.76 11.93 58,330.67 2009 11.93 13.24 16,037.89 2010 13.24 15.79 5.37 2011 15.79 16.37 0.00 2012 16.37 17.67 0.00 Oppenheimer Global Equity Investment Division (Class E). 2003 9.85 12.62 20,427.99 2004 12.62 14.39 20,725.47 2005 14.39 16.41 16,532.53 2006 16.41 18.78 13,384.48 2007 18.78 19.61 11,164.26 2008 19.61 11.46 7,183.80 2009 11.46 15.76 2,575.02 2010 15.76 17.97 2.59 2011 17.97 16.17 0.00 2012 16.17 19.28 0.00 PIMCO Total Return Investment Division (Class E)........ 2003 11.18 11.46 166,141.39 2004 11.46 11.83 121,208.87 2005 11.83 11.89 132,290.87 2006 11.89 12.22 86,819.21 2007 12.22 12.92 85,529.56 2008 12.92 12.75 64,861.22 2009 12.75 14.80 38,175.44 2010 14.80 15.74 16.90 2011 15.74 15.98 0.00 2012 15.98 17.15 0.00 RCM Tecnology Investment Division (Class E)............. 2003 2.94 4.55 47,156.95 2004 4.55 4.28 45,287.82 2005 4.28 4.67 42,402.55 2006 4.67 4.83 36,122.67 2007 4.83 6.26 32,236.44 2008 6.26 3.41 19,879.06 2009 3.41 5.34 16,828.23 2010 5.34 6.71 6.74 2011 6.71 5.93 0.00 2012 5.93 6.55 0.00
109
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Russell 2000(R) Index Investment Division (Class E). 2003 $ 9.22 $13.22 57,338.41 2004 13.22 15.26 57,531.84 2005 15.26 15.65 63,815.41 2006 15.65 18.09 40,652.10 2007 18.09 17.47 36,665.05 2008 17.47 11.40 29,346.53 2009 11.40 14.09 11,232.68 2010 14.09 17.52 4.74 2011 17.52 16.49 0.00 2012 16.49 18.80 0.00 T. Rowe Price Large Cap Growth Investment Division (Class E)......................................... 2003 8.56 10.99 55,519.83 2004 10.99 11.85 52,958.89 2005 11.85 12.39 49,905.75 2006 12.39 13.74 46,920.80 2007 13.74 14.75 42,347.35 2008 14.75 8.41 32,130.33 2009 8.41 11.82 12,181.06 2010 11.82 13.57 3.76 2011 13.57 13.16 0.00 2012 13.16 15.36 0.00 T. Rowe Price Mid Cap Growth Investment Division (Class E)......................................... 2003 4.52 6.07 89,716.97 2004 6.07 7.04 94,743.41 2005 7.04 7.92 106,030.37 2006 7.92 8.28 59,308.89 2007 8.28 9.56 85,597.20 2008 9.56 5.67 46,095.52 2009 5.67 8.10 17,288.78 2010 8.10 10.18 3.24 2011 10.18 9.83 0.00 2012 9.83 11.00 0.00 T. Rowe Price Small Cap Growth Investment Division (Class E)......................................... 2003 8.52 11.77 26,823.96 2004 11.77 12.83 27,130.09 2005 12.83 13.97 26,757.08 2006 13.97 14.22 25,726.37 2007 14.22 15.32 23,752.75 2008 15.32 9.59 15,505.76 2009 9.59 13.07 4,070.27 2010 13.07 17.29 8.72 2011 17.29 17.25 0.00 2012 17.25 19.66 0.00
110
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Western Asset Management Strategic Bond Opportunities Investment Division (Class E)....................... 2003 $16.58 $18.32 26,730.46 2004 18.32 19.15 31,916.01 2005 19.15 19.32 48,019.14 2006 19.32 19.89 45,738.69 2007 19.89 20.30 39,084.69 2008 20.30 16.92 18,210.54 2009 16.92 21.93 9,578.61 2010 21.93 24.26 1.94 2011 24.26 25.24 0.00 2012 25.24 27.59 0.00 Western Asset Management U.S Government Investment Division (Class E).................................. 2003 15.17 15.13 41,839.55 2004 15.13 15.28 39,518.29 2005 15.28 15.24 38,078.20 2006 15.24 15.57 33,343.12 2007 15.57 15.92 25,692.15 2008 15.92 15.57 18,130.04 2009 15.57 15.93 8,153.37 2010 15.93 16.53 3.89 2011 16.53 17.10 0.00 2012 17.10 17.32 0.00
111
GROUP I--PREFERENCE PLUS SELECT E SHARE AND AMERICAN FUNDS(R) CLASS 2 1.85 SEPARATE ACCOUNT CHARGE BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ American Funds Bond Investment Division+ (Class 2) (5/1/2006).............. 2006 $ 14.04 $ 14.68 285.76 2007 14.68 14.87 2,966.80 2008 14.87 13.21 5,323.72 2009 13.21 14.58 5,861.01 2010 14.58 15.21 11,666.92 2011 15.21 15.82 6,677.55 2012 15.82 16.34 6,740.41 American Funds Global Small Capitalization Investment Division+ (Class 2).. 2003 10.51 15.82 16,276.78 2004 15.82 18.75 35,175.14 2005 18.75 23.04 41,539.10 2006 23.04 28.01 76,385.21 2007 28.01 33.34 66,717.75 2008 33.34 15.18 60,337.00 2009 15.18 24.01 55,245.60 2010 24.01 28.81 65,640.24 2011 28.81 22.83 52,057.82 2012 22.83 26.45 49,747.37 American Funds Growth Investment Division+ ( Class 2)...................... 2003 76.33 102.36 9,687.49 2004 102.36 112.86 20,523.05 2005 112.86 128.55 19,557.50 2006 128.55 138.89 18,383.62 2007 138.89 152.93 16,417.04 2008 152.93 83.98 14,835.46 2009 83.98 114.76 13,657.62 2010 114.76 133.51 17,941.24 2011 133.51 125.27 13,126.35 2012 125.27 144.74 12,739.62 American Funds Growth-Income Investment Division+ (Class 2)................ 2003 61.37 79.66 16,673.18 2004 79.66 86.18 28,078.77 2005 86.18 89.40 20,444.99 2006 89.40 100.96 18,095.73 2007 100.96 103.94 16,950.80 2008 103.94 63.31 13,873.69 2009 63.31 81.45 12,956.38 2010 81.45 88.96 18,114.74 2011 88.96 85.61 14,345.28 2012 85.61 98.57 13,169.67
112
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Baillie Gifford International Stock Investment Division (formerly Artio International Stock Investment Division) (Class E)....................... 2003 $ 8.83 $11.09 2,710.93 2004 11.09 12.84 6,372.07 2005 12.84 14.85 9,346.37 2006 14.85 16.96 14,776.72 2007 16.96 18.34 18,467.12 2008 18.34 10.04 17,770.84 2009 10.04 12.03 12,871.02 2010 12.03 12.64 11,608.29 2011 12.64 9.93 8,632.39 2012 9.93 11.63 6,623.36 Barclays Capital Aggregate Bond Index Investment Division (Class E)........ 2003 12.14 12.34 67,158.56 2004 12.34 12.59 171,181.28 2005 12.59 12.61 160,102.82 2006 12.61 12.86 139,979.46 2007 12.86 13.47 131,688.50 2008 13.47 13.98 104,043.86 2009 13.98 14.43 90,102.38 2010 14.43 14.99 114,344.15 2011 14.99 15.80 105,945.66 2012 15.80 16.08 94,732.26 BlackRock Aggressive Growth Investment Division (Class E).................. 2003 23.04 31.79 5,474.13 2004 31.79 35.20 6,719.22 2005 35.20 38.20 4,043.86 2006 38.20 39.96 12,244.97 2007 39.96 47.22 7,191.33 2008 47.22 25.13 8,198.16 2009 25.13 36.80 6,046.80 2010 36.80 41.62 7,281.18 2011 41.62 39.55 7,040.17 2012 39.55 43.03 6,220.61 BlackRock Bond Income Investment Division (Class E)........................ 2003 41.19 42.73 8,766.14 2004 42.73 43.74 25,563.56 2005 43.74 43.91 14,215.57 2006 43.91 44.94 13,307.82 2007 44.94 46.82 20,624.84 2008 46.82 44.32 12,896.03 2009 44.32 47.55 11,821.24 2010 47.55 50.50 13,337.57 2011 50.50 52.75 9,226.44 2012 52.75 55.60 5,335.98
113
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ BlackRock Diversified Investment Division (Class E)........................ 2003 $28.53 $33.73 12,352.98 2004 33.73 35.85 25,735.63 2005 35.85 36.23 28,451.08 2006 36.23 39.24 21,678.25 2007 39.24 40.72 20,073.29 2008 40.72 30.03 20,927.10 2009 30.03 34.53 19,810.85 2010 34.53 37.10 33,478.61 2011 37.10 37.76 28,351.55 2012 37.76 41.58 27,190.63 BlackRock Large Cap Core Investment Division* (Class E).................... 2007 71.82 72.27 6,132.85 2008 72.27 44.51 4,951.05 2009 44.51 52.13 3,998.29 2010 52.13 57.66 5,376.30 2011 57.66 56.77 4,431.32 2012 56.77 63.30 3,706.62 BlackRock Large Cap Investment Division (Class E).......................... 2003 43.88 56.01 4,401.11 2004 56.01 60.87 10,013.36 2005 60.87 61.82 8,337.32 2006 61.82 69.14 7,240.96 2007 69.14 72.42 0.00 BlackRock Large Cap Value Investment Division (Class E).................... 2003 7.90 10.50 19,011.38 2004 10.50 11.68 32,971.81 2005 11.68 12.12 32,531.60 2006 12.12 14.18 41,217.36 2007 14.18 14.37 36,217.61 2008 14.37 9.16 25,717.55 2009 9.16 10.00 22,067.34 2010 10.00 10.70 26,798.81 2011 10.70 10.73 21,352.88 2012 10.73 12.02 25,488.59 BlackRock Money Market Investment Division (Class E) (5/1/2003)............ 2003 20.69 20.52 21,858.50 2004 20.52 20.31 17,399.33 2005 20.31 20.48 15,285.58 2006 20.48 21.04 5,782.47 2007 21.04 21.67 4,700.57 2008 21.67 21.85 6,610.48 2009 21.85 21.51 13,324.06 2010 21.51 21.12 9,360.95 2011 21.12 20.73 5,640.48 2012 20.73 20.35 5,808.19
114
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Davis Venture Value Investment Division (Class E).......................... 2003 $20.97 $26.92 3,786.98 2004 26.92 29.63 15,500.44 2005 29.63 32.04 15,937.08 2006 32.04 35.99 17,394.56 2007 35.99 36.89 16,599.66 2008 36.89 21.92 13,555.01 2009 21.92 28.37 11,593.58 2010 28.37 31.14 16,518.54 2011 31.14 29.29 13,995.82 2012 29.29 32.41 23,745.76 FI Value Leaders Investment Division (Class E)............................. 2003 17.91 22.29 2,266.10 2004 22.29 24.85 3,345.28 2005 24.85 26.96 22,313.31 2006 26.96 29.58 20,520.91 2007 29.58 30.21 11,143.64 2008 30.21 18.08 4,642.56 2009 18.08 21.59 4,925.07 2010 21.59 24.25 5,729.62 2011 24.25 22.31 5,674.28 2012 22.31 25.31 7,661.10 Harris Oakmark International Investment Division (Class E)................. 2003 8.78 11.66 858.80 2004 11.66 13.81 18,761.62 2005 13.81 15.49 21,405.85 2006 15.49 19.62 37,922.17 2007 19.62 19.07 34,317.06 2008 19.07 11.07 19,156.17 2009 11.07 16.88 19,058.27 2010 16.88 19.30 20,133.35 2011 19.30 16.27 18,376.93 2012 16.27 20.65 16,656.48 Invesco Small Cap Growth Investment Division (Class E)..................... 2003 8.44 11.52 1,199.21 2004 11.52 12.05 5,484.99 2005 12.05 12.83 5,359.32 2006 12.83 14.39 9,891.28 2007 14.39 15.71 5,766.17 2008 15.71 9.45 6,251.83 2009 9.45 12.43 5,527.91 2010 12.43 15.42 7,797.63 2011 15.42 14.98 3,263.07 2012 14.98 17.41 3,195.12
115
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Jennison Growth Investment Division (Class E).............................. 2005 $3.98 $4.77 16,188.24 2006 4.77 4.80 15,352.54 2007 4.80 5.26 13,338.99 2008 5.26 3.27 4,472.86 2009 3.27 4.50 3,487.75 2010 4.50 4.92 22,776.75 2011 4.92 4.84 20,679.95 2012 4.84 5.50 25,657.47 Jennison Growth Investment Division (Class E) (formerly Met/Putnam Voyager Investment Division)..................................................... 2003 3.40 4.20 8,874.34 2004 4.20 4.31 17,382.06 2005 4.31 3.94 17,670.96 Legg Mason ClearBridge Aggressive Growth Investment Division (Class E)..... 2003 5.51 6.70 6,261.25 2004 6.70 7.14 10,008.87 2005 7.14 7.97 10,463.75 2006 7.97 7.69 8,597.02 2007 7.69 7.73 6,076.74 2008 7.73 4.62 9,764.62 2009 4.62 6.05 9,405.48 2010 6.05 7.35 11,922.11 2011 7.35 7.47 25,251.11 2012 7.47 8.70 30,175.93 Legg Mason ClearBridge Aggressive Growth Investment Division (Class E)..... 2006 9.13 9.77 3,911.20 2007 9.77 9.03 4,743.52 2008 9.03 4.02 1,836.51 2009 4.02 5.45 491.98 2010 5.45 5.75 642.16 2011 5.75 6.10 0.00 Legg Mason Partners Aggressive Growth Investment Division (formerly Janus Growth Investment Division) (Class E).................................... 2003 5.25 5.51 0.00 Legg Mason Value Equity Investment Division (Class E) (formerly MFS(R) Investors Trust Investment Division)..................................... 2003 6.41 7.65 194.76 2004 7.65 8.36 4,289.97 2005 8.36 8.79 3,574.99 2006 8.79 9.17 3,334.78
116
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Loomis Sayles Small Cap Core Investment Division (Class E)................. 2003 $16.69 $22.33 1,110.52 2004 22.33 25.48 3,460.40 2005 25.48 26.70 3,613.34 2006 26.70 30.54 6,980.67 2007 30.54 33.50 7,310.03 2008 33.50 21.04 5,202.60 2009 21.04 26.87 4,225.14 2010 26.87 33.59 6,387.12 2011 33.59 33.12 3,481.37 2012 33.12 37.19 3,074.27 Loomis Sayles Small Cap Growth Investment Division (Class E)............... 2003 6.21 8.82 3,269.14 2004 8.82 9.63 10,060.58 2005 9.63 9.87 9,320.83 2006 9.87 10.65 8,812.48 2007 10.65 10.92 9,436.31 2008 10.92 6.29 6,159.24 2009 6.29 8.02 4,504.66 2010 8.02 10.35 6,933.51 2011 10.35 10.46 4,850.15 2012 10.46 11.39 4,428.29 Lord Abbett Bond Debenture Investment Division (Class E)................... 2003 10.20 11.95 33,108.92 2004 11.95 12.70 27,217.40 2005 12.70 12.67 21,479.48 2006 12.67 13.58 21,717.91 2007 13.58 14.23 20,997.86 2008 14.23 11.38 23,505.96 2009 11.38 15.29 25,749.04 2010 15.29 16.97 22,550.50 2011 16.97 17.44 16,414.39 2012 17.44 19.35 15,352.20 Lord Abbett Mid Cap Value Investment Division (Class E).................... 2012 24.22 24.83 44,581.12 Lord Abbett Mid Cap Value Investment Division (Class E) (formerly Neuberger Berman Mid Cap Value Investment Division (Class E))............ 2003 13.16 17.62 17,441.95 2004 17.62 21.24 59,079.76 2005 21.24 23.37 77,812.63 2006 23.37 25.53 71,512.90 2007 25.53 25.88 61,609.83 2008 25.88 13.36 53,391.33 2009 13.36 19.39 51,407.72 2010 19.39 24.02 64,852.37 2011 24.02 22.03 59,897.09 2012 22.03 24.34 0.00
117
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Met/Artisan Mid Cap Value Investment Division (Class E).................... 2003 $22.58 $29.36 34,839.96 2004 29.36 31.63 51,850.34 2005 31.63 34.10 54,715.60 2006 34.10 37.59 33,272.54 2007 37.59 34.32 24,541.16 2008 34.32 18.16 17,998.70 2009 18.16 25.20 15,543.98 2010 25.20 28.42 20,088.96 2011 28.42 29.74 15,620.24 2012 29.74 32.61 15,900.93 MetLife Mid Cap Stock Index Investment Division (Class E).................. 2003 8.55 11.31 64,927.67 2004 11.31 12.87 74,990.67 2005 12.87 14.17 80,435.88 2006 14.17 15.28 78,535.41 2007 15.28 16.15 68,078.34 2008 16.15 10.09 58,410.60 2009 10.09 13.57 52,244.07 2010 13.57 16.79 40,339.35 2011 16.79 16.14 54,923.30 2012 16.14 18.61 54,578.28 MetLife Stock Index Investment Division (Class E).......................... 2003 26.00 32.67 78,326.89 2004 32.67 35.40 113,355.91 2005 35.40 36.31 114,020.79 2006 36.31 41.10 86,703.53 2007 41.10 42.38 79,508.03 2008 42.38 26.13 84,730.94 2009 26.13 32.34 65,886.50 2010 32.34 36.39 88,556.31 2011 36.39 36.33 76,169.02 2012 36.33 41.21 68,259.46 MFS(R) Research International Investment Division (Class E)................ 2003 7.23 9.38 5,245.98 2004 9.38 11.02 9,084.93 2005 11.02 12.60 10,534.66 2006 12.60 15.69 26,086.51 2007 15.69 17.46 29,483.95 2008 17.46 9.88 20,671.81 2009 9.88 12.78 13,529.34 2010 12.78 13.99 16,572.42 2011 13.99 12.28 10,253.89 2012 12.28 14.08 9,925.39
118
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ MFS(R) Total Return Investment Division (Class E) (5/1/2004)............... 2004 $34.05 $36.91 2,362.83 2005 36.91 37.27 21,930.33 2006 37.27 40.96 12,278.96 2007 40.96 41.86 22,416.46 2008 41.86 31.91 26,643.32 2009 31.91 37.05 22,585.73 2010 37.05 39.94 32,559.36 2011 39.94 40.06 30,280.10 2012 40.06 43.76 22,203.89 MFS(R) Value Investment Division (Class E)................................. 2003 9.53 11.72 47,626.01 2004 11.72 12.81 75,434.86 2005 12.81 12.38 67,934.93 2006 12.38 14.33 54,497.06 2007 14.33 13.52 50,718.40 2008 13.52 8.81 41,501.27 2009 8.81 10.43 35,529.36 2010 10.43 11.40 44,214.34 2011 11.40 11.28 33,783.51 2012 11.28 12.88 34,205.45 MLA Mid Cap Investment Division (formerly Lazard Mid Cap Investment Division) (Class E)...................................................... 2003 9.62 11.93 11,194.49 2004 11.93 13.41 12,591.01 2005 13.41 14.25 14,798.27 2006 14.25 16.05 16,355.97 2007 16.05 15.34 21,151.73 2008 15.34 9.30 9,017.43 2009 9.30 12.49 6,881.48 2010 12.49 15.10 7,558.34 2011 15.10 14.04 6,783.36 2012 14.04 14.53 5,879.63 MSCI EAFE(R) Index Investment Division (formerly Morgan Stanley EAFE(R) Index Investment Division) (Class E)..................................... 2003 6.94 9.36 56,548.44 2004 9.36 10.97 78,514.09 2005 10.97 12.18 83,251.25 2006 12.18 15.02 69,397.19 2007 15.02 16.30 81,797.44 2008 16.30 9.25 54,682.46 2009 9.25 11.67 44,827.68 2010 11.67 12.38 56,675.88 2011 12.38 10.62 49,225.45 2012 10.62 12.32 50,036.45 Morgan Stanley Mid Cap Growth Investment Division (Class E)................ 2010 12.39 14.36 27,809.67 2011 14.36 13.12 23,974.38 2012 13.12 14.10 20,901.29
119
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Morgan Stanley Mid Cap Growth Investment Division (formerly FI Mid Cap Opportunities Investment Division (Class E))............................. 2003 $10.66 $14.09 4,921.87 2004 14.09 16.18 25,111.91 2005 16.18 16.95 23,907.92 2006 16.95 18.58 26,431.38 2007 18.58 19.73 22,714.49 2008 19.73 8.64 23,983.07 2009 8.64 11.35 21,034.65 2010 11.35 12.26 0.00 Neuberger Berman Genesis Investment Division (Class E)..................... 2003 10.70 15.75 51,317.85 2004 15.75 17.80 93,511.01 2005 17.80 18.17 86,008.74 2006 18.17 20.80 78,846.01 2007 20.80 19.69 75,542.93 2008 19.69 11.88 67,262.75 2009 11.88 13.17 61,554.41 2010 13.17 15.71 74,584.52 2011 15.71 16.28 57,793.16 2012 16.28 17.56 37,888.67 Oppenheimer Global Equity Investment Division (Class E).................... 2003 9.82 12.57 5,569.13 2004 12.57 14.33 11,169.65 2005 14.33 16.34 13,658.21 2006 16.34 18.69 17,362.38 2007 18.69 19.50 20,229.78 2008 19.50 11.39 17,288.07 2009 11.39 15.66 18,094.43 2010 15.66 17.85 15,661.30 2011 17.85 16.05 14,398.30 2012 16.05 19.12 14,365.62 PIMCO Total Return Investment Division (Class E)........................... 2003 11.17 11.45 56,801.90 2004 11.45 11.81 101,512.08 2005 11.81 11.86 57,082.34 2006 11.86 12.19 45,629.93 2007 12.19 12.88 52,878.64 2008 12.88 12.70 46,071.42 2009 12.70 14.74 53,128.87 2010 14.74 15.66 95,242.58 2011 15.66 15.89 60,514.03 2012 15.89 17.04 60,538.04
120
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ RCM Tecnology Investment Division (Class E)................................ 2003 $ 2.94 $ 4.55 47,359.68 2004 4.55 4.27 51,989.76 2005 4.27 4.66 51,768.53 2006 4.66 4.82 37,104.91 2007 4.82 6.24 95,339.67 2008 6.24 3.40 35,816.39 2009 3.40 5.31 46,537.56 2010 5.31 6.68 38,506.13 2011 6.68 5.90 33,850.45 2012 5.90 6.51 32,130.46 Russell 2000(R) Index Investment Division (Class E)........................ 2003 9.20 13.18 24,197.78 2004 13.18 15.21 29,525.34 2005 15.21 15.59 27,898.11 2006 15.59 18.02 44,470.27 2007 18.02 17.39 24,872.41 2008 17.39 11.34 16,450.26 2009 11.34 14.01 14,815.55 2010 14.01 17.41 24,427.00 2011 17.41 16.38 22,940.70 2012 16.38 18.67 18,411.22 T. Rowe Price Large Cap Growth Investment Division (Class E)............... 2003 8.55 10.96 12,347.63 2004 10.96 11.81 25,543.47 2005 11.81 12.34 28,663.46 2006 12.34 13.69 25,822.06 2007 13.69 14.68 27,330.57 2008 14.68 8.36 28,191.45 2009 8.36 11.76 30,184.39 2010 11.76 13.49 30,997.43 2011 13.49 13.08 27,143.77 2012 13.08 15.25 28,305.02 T. Rowe Price Mid Cap Growth Investment Division (Class E)................. 2003 4.51 6.06 12,580.19 2004 6.06 7.03 15,833.09 2005 7.03 7.90 22,194.00 2006 7.90 8.25 26,839.68 2007 8.25 9.53 48,357.23 2008 9.53 5.65 48,546.16 2009 5.65 8.06 48,814.10 2010 8.06 10.13 49,044.84 2011 10.13 9.78 38,013.00 2012 9.78 10.93 40,454.80
121
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ T. Rowe Price Small Cap Growth Investment Division (Class E)............... 2003 $ 8.49 $11.73 11,939.27 2004 11.73 12.78 21,342.59 2005 12.78 13.90 20,272.55 2006 13.90 14.15 14,223.45 2007 14.15 15.24 10,688.00 2008 15.24 9.53 10,545.45 2009 9.53 12.99 6,922.34 2010 12.99 17.17 10,268.60 2011 17.17 17.12 9,623.07 2012 17.12 19.51 8,533.62 Western Asset Management Strategic Bond Opportunities Investment Division (Class E)................................................................ 2003 16.51 18.23 17,349.99 2004 18.23 19.06 52,882.29 2005 19.06 19.21 52,995.05 2006 19.21 19.77 52,831.41 2007 19.77 20.16 37,746.74 2008 20.16 16.80 28,074.63 2009 16.80 21.77 26,247.60 2010 21.77 24.07 30,737.97 2011 24.07 25.03 22,629.52 2012 25.03 27.34 19,080.07 Western Asset Management U.S Government Investment Division (Class E)...... 2003 15.11 15.06 10,000.40 2004 15.06 15.20 19,636.40 2005 15.20 15.16 15,547.01 2006 15.16 15.47 12,946.30 2007 15.47 15.82 13,130.41 2008 15.82 15.46 18,408.71 2009 15.46 15.81 22,906.28 2010 15.81 16.40 20,314.37 2011 16.40 16.95 11,525.84 2012 16.95 17.16 8,372.07
122 GROUP I--PREFERENCE PLUS SELECT E SHARE AND AMERICAN FUNDS(R) CLASS 2 1.90 SEPARATE ACCOUNT CHARGE
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ American Funds Bond Investment Division+ (Class 2) (5/1/2006).......................................... 2006 $ 13.98 $ 14.61 8,302.42 2007 14.61 14.79 45,731.95 2008 14.79 13.13 13,981.78 2009 13.13 14.49 5,972.30 2010 14.49 15.11 2,912.11 2011 15.11 15.71 0.00 2012 15.71 16.21 0.00 American Funds Global Small Capitalization Investment Division+ (Class 2)................................. 2003 10.49 15.78 24,019.52 2004 15.78 18.68 75,500.24 2005 18.68 22.95 75,518.87 2006 22.95 27.89 65,936.39 2007 27.89 33.18 69,803.28 2008 33.18 15.10 67,083.02 2009 15.10 23.87 57,472.60 2010 23.87 28.63 34,470.86 2011 28.63 22.68 973.94 2012 22.68 26.26 841.21 American Funds Growth Investment Division+ ( Class 2). 2003 75.61 101.34 18,951.53 2004 101.34 111.69 41,274.48 2005 111.69 127.15 35,235.78 2006 127.15 137.31 29,683.32 2007 137.31 151.12 28,363.02 2008 151.12 82.94 26,111.18 2009 82.94 113.28 22,757.03 2010 113.28 131.72 11,496.04 2011 131.72 123.53 686.28 2012 123.53 142.67 593.96 American Funds Growth-Income Investment Division+ (Class 2)........................................... 2003 60.79 78.87 24,558.88 2004 78.87 85.28 46,623.82 2005 85.28 88.43 35,378.65 2006 88.43 99.81 32,205.65 2007 99.81 102.71 30,390.79 2008 102.71 62.53 26,080.28 2009 62.53 80.40 23,184.24 2010 80.40 87.77 11,267.49 2011 87.77 84.42 256.41 2012 84.42 97.16 227.26
123
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Baillie Gifford International Stock Investment Division (formerly Artio International Stock Investment Division) (Class E)................................................ 2003 $ 8.78 $11.02 7,486.93 2004 11.02 12.76 13,045.37 2005 12.76 14.75 12,454.27 2006 14.75 16.82 20,085.13 2007 16.82 18.19 20,793.95 2008 18.19 9.96 22,987.03 2009 9.96 11.91 16,401.40 2010 11.91 12.51 9,633.92 2011 12.51 9.82 496.43 2012 9.82 11.51 252.33 Barclays Capital Aggregate Bond Index Investment Division (Class E)................................................ 2003 12.12 12.31 102,537.01 2004 12.31 12.55 332,741.42 2005 12.55 12.56 351,512.09 2006 12.56 12.80 299,065.59 2007 12.80 13.40 279,476.93 2008 13.40 13.91 176,960.32 2009 13.91 14.35 169,128.17 2010 14.35 14.90 117,594.21 2011 14.90 15.70 3,448.44 2012 15.70 15.97 3,816.92 BlackRock Aggressive Growth Investment Division (Class E)................................................ 2003 22.87 31.55 5,530.73 2004 31.55 34.91 27,569.27 2005 34.91 37.87 25,733.02 2006 37.87 39.58 17,566.02 2007 39.58 46.75 16,376.38 2008 46.75 24.87 16,834.72 2009 24.87 36.40 15,704.76 2010 36.40 41.15 9,430.98 2011 41.15 39.09 0.00 2012 39.09 42.50 0.00 BlackRock Bond Income Investment Division (Class E)........ 2003 40.79 42.30 12,029.75 2004 42.30 43.27 31,709.92 2005 43.27 43.42 30,252.66 2006 43.42 44.42 25,791.23 2007 44.42 46.25 20,574.99 2008 46.25 43.76 16,794.85 2009 43.76 46.92 15,213.98 2010 46.92 49.81 8,566.67 2011 49.81 52.01 109.83 2012 52.01 54.79 109.83
124
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ BlackRock Diversified Investment Division (Class E)..... 2003 $28.30 $33.43 43,259.47 2004 33.43 35.52 61,426.46 2005 35.52 35.88 60,737.04 2006 35.88 38.84 27,167.96 2007 38.84 40.28 31,799.50 2008 40.28 29.69 22,471.82 2009 29.69 34.13 20,056.33 2010 34.13 36.65 6,046.96 2011 36.65 37.28 21.40 2012 37.28 41.03 0.00 BlackRock Large Cap Core Investment Division* (Class E). 2007 70.96 71.39 10,183.43 2008 71.39 43.95 8,829.46 2009 43.95 51.44 8,748.00 2010 51.44 56.87 5,847.51 2011 56.87 55.96 126.41 2012 55.96 62.37 80.77 BlackRock Large Cap Investment Division (Class E)....... 2003 43.45 55.44 4,833.79 2004 55.44 60.22 13,651.94 2005 60.22 61.13 13,079.30 2006 61.13 68.33 11,830.71 2007 68.33 71.56 0.00 BlackRock Large Cap Value Investment Division (Class E). 2003 7.89 10.49 11,432.11 2004 10.49 11.66 39,678.29 2005 11.66 12.09 36,886.96 2006 12.09 14.15 36,842.26 2007 14.15 14.33 41,901.90 2008 14.33 9.13 34,042.05 2009 9.13 9.96 30,626.85 2010 9.96 10.66 16,790.55 2011 10.66 10.68 0.00 2012 10.68 11.96 0.00 BlackRock Money Market Investment Division (Class E) (5/1/2003)............................................ 2003 20.49 20.31 14,986.46 2004 20.31 20.09 6,733.03 2005 20.09 20.25 6,206.05 2006 20.25 20.80 116,864.92 2007 20.80 21.41 133,941.33 2008 21.41 21.57 152,559.23 2009 21.57 21.23 88,214.97 2010 21.23 20.83 63,914.27 2011 20.83 20.44 34,332.98 2012 20.44 20.06 0.00
125
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Davis Venture Value Investment Division (Class E)...... 2003 $20.89 $26.80 7,277.40 2004 26.80 29.48 25,502.28 2005 29.48 31.86 28,292.41 2006 31.86 35.77 29,164.26 2007 35.77 36.65 29,560.06 2008 36.65 21.77 26,060.80 2009 21.77 28.16 22,652.94 2010 28.16 30.89 11,046.42 2011 30.89 29.04 2,307.90 2012 29.04 32.11 1,495.77 FI Value Leaders Investment Division (Class E)......... 2003 17.83 22.17 1,175.26 2004 22.17 24.70 6,036.48 2005 24.70 26.79 10,879.80 2006 26.79 29.38 10,192.08 2007 29.38 29.99 10,652.42 2008 29.99 17.94 8,003.84 2009 17.94 21.41 7,694.81 2010 21.41 24.04 4,488.50 2011 24.04 22.10 0.00 2012 22.10 25.06 0.00 Harris Oakmark International Investment Division (Class E)............................................ 2003 8.78 11.64 7,171.53 2004 11.64 13.79 52,024.04 2005 13.79 15.46 56,065.91 2006 15.46 19.57 73,277.49 2007 19.57 19.01 65,916.50 2008 19.01 11.03 42,456.25 2009 11.03 16.81 39,719.10 2010 16.81 19.22 22,244.46 2011 19.22 16.19 535.07 2012 16.19 20.54 534.86 Invesco Small Cap Growth Investment Division (Class E). 2003 8.44 11.51 3,308.75 2004 11.51 12.03 6,104.99 2005 12.03 12.81 5,771.26 2006 12.81 14.36 6,166.00 2007 14.36 15.66 7,295.83 2008 15.66 9.42 7,339.58 2009 9.42 12.38 6,100.85 2010 12.38 15.35 1,620.32 2011 15.35 14.91 0.00 2012 14.91 17.31 0.00 Jennison Growth Investment Division (Class E).......... 2005 3.97 4.76 31,624.41 2006 4.76 4.79 22,061.13 2007 4.79 5.24 9,107.69 2008 5.24 3.26 9,198.20 2009 3.26 4.48 15,348.41 2010 4.48 4.89 6,469.56 2011 4.89 4.82 159.08 2012 4.82 5.46 1,225.78
126
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Jennison Growth Investment Division (Class E) (formerly Met/Putnam Voyager Investment Division)....... 2003 $ 3.40 $ 4.19 15,392.07 2004 4.19 4.30 22,107.36 2005 4.30 3.93 22,269.49 Legg Mason ClearBridge Aggressive Growth Investment Division (Class E)...................................... 2003 5.50 6.69 9,828.64 2004 6.69 7.12 14,079.78 2005 7.12 7.95 17,725.36 2006 7.95 7.67 15,578.74 2007 7.67 7.70 10,782.29 2008 7.70 4.61 9,783.69 2009 4.61 6.02 9,491.84 2010 6.02 7.32 792.95 2011 7.32 7.43 401.67 2012 7.43 8.64 384.71 Legg Mason ClearBridge Aggressive Growth Investment Division (Class E)...................................... 2006 9.10 9.73 2,149.98 2007 9.73 8.99 2,511.02 2008 8.99 4.00 1,990.50 2009 4.00 5.42 2,379.85 2010 5.42 5.71 12.22 2011 5.71 6.06 0.00 Legg Mason Partners Aggressive Growth Investment Division (formerly Janus Growth Investment Division) (Class E)... 2003 5.25 5.50 0.00 Legg Mason Value Equity Investment Division (Class E) (formerly MFS(R) Investors Trust Investment Division)... 2003 6.40 7.63 1,538.73 2004 7.63 8.33 3,515.44 2005 8.33 8.76 2,866.69 2006 8.76 9.14 2,844.02 Loomis Sayles Small Cap Core Investment Division (Class E)............................................... 2003 16.62 22.22 6,563.89 2004 22.22 25.34 9,684.82 2005 25.34 26.55 10,412.49 2006 26.55 30.35 15,689.55 2007 30.35 33.27 11,368.47 2008 33.27 20.89 10,327.72 2009 20.89 26.66 9,461.54 2010 26.66 33.31 3,981.16 2011 33.31 32.83 183.85 2012 32.83 36.84 183.74
127
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Loomis Sayles Small Cap Growth Investment Division (Class E)............................................. 2003 $ 6.20 $ 8.81 9,870.44 2004 8.81 9.61 21,119.63 2005 9.61 9.85 17,329.02 2006 9.85 10.62 14,849.70 2007 10.62 10.89 14,540.16 2008 10.89 6.26 16,140.35 2009 6.26 7.99 14,343.49 2010 7.99 10.30 1,912.92 2011 10.30 10.40 0.00 2012 10.40 11.32 0.00 Lord Abbett Bond Debenture Investment Division (Class E)............................................. 2003 10.17 11.91 26,068.51 2004 11.91 12.65 64,145.58 2005 12.65 12.61 64,834.29 2006 12.61 13.51 55,060.04 2007 13.51 14.15 63,217.97 2008 14.15 11.31 45,725.58 2009 11.31 15.19 38,501.95 2010 15.19 16.85 21,947.48 2011 16.85 17.31 1,795.83 2012 17.31 19.19 1,624.17 Lord Abbett Mid Cap Value Investment Division (Class E). 2012 24.06 24.65 441.55 Lord Abbett Mid Cap Value Investment Division (Class E) (formerly Neuberger Berman Mid Cap Value Investment Division (Class E))................................... 2003 13.13 17.58 13,934.84 2004 17.58 21.18 59,566.68 2005 21.18 23.29 68,756.49 2006 23.29 25.43 52,627.44 2007 25.43 25.76 54,595.36 2008 25.76 13.29 51,528.37 2009 13.29 19.29 42,980.75 2010 19.29 23.87 21,995.73 2011 23.87 21.89 492.49 2012 21.89 24.17 0.00 Met/Artisan Mid Cap Value Investment Division (Class E). 2003 22.47 29.20 26,518.38 2004 29.20 31.45 51,174.27 2005 31.45 33.89 47,002.14 2006 33.89 37.34 42,284.04 2007 37.34 34.07 38,147.80 2008 34.07 18.02 32,394.51 2009 18.02 24.99 25,157.15 2010 24.99 28.17 15,138.41 2011 28.17 29.47 1,583.38 2012 29.47 32.29 1,602.82
128
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ MetLife Mid Cap Stock Index Investment Division (Class E)....................................... 2003 $ 8.54 $11.29 52,015.85 2004 11.29 12.84 88,555.01 2005 12.84 14.13 83,733.92 2006 14.13 15.23 81,561.45 2007 15.23 16.09 65,302.45 2008 16.09 10.05 63,984.53 2009 10.05 13.50 57,871.56 2010 13.50 16.71 28,449.22 2011 16.71 16.05 949.76 2012 16.05 18.49 929.53 MetLife Stock Index Investment Division (Class E). 2003 25.84 32.45 52,164.34 2004 32.45 35.14 187,618.58 2005 35.14 36.03 188,827.97 2006 36.03 40.76 170,324.27 2007 40.76 42.01 159,758.97 2008 42.01 25.89 152,533.23 2009 25.89 32.02 138,128.74 2010 32.02 36.01 82,207.30 2011 36.01 35.94 2,038.16 2012 35.94 40.74 2,089.39 MFS(R) Research International Investment Division (Class E)....................................... 2003 7.22 9.36 15,286.66 2004 9.36 10.99 21,493.41 2005 10.99 12.57 20,177.00 2006 12.57 15.64 51,532.57 2007 15.64 17.40 56,117.46 2008 17.40 9.84 41,656.75 2009 9.84 12.72 32,306.21 2010 12.72 13.92 19,941.60 2011 13.92 12.21 0.00 2012 12.21 14.00 0.00 MFS(R) Total Return Investment Division (Class E) (5/1/2004)...................................... 2004 33.76 36.59 3,816.14 2005 36.59 36.93 15,082.43 2006 36.93 40.56 38,985.17 2007 40.56 41.43 55,843.58 2008 41.43 31.56 47,932.74 2009 31.56 36.64 45,504.43 2010 36.64 39.47 17,454.29 2011 39.47 39.56 12,485.29 2012 39.56 43.21 7,634.49
129
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ MFS(R) Value Investment Division (Class E)............... 2003 $ 9.51 $11.69 47,343.51 2004 11.69 12.77 119,572.47 2005 12.77 12.34 109,224.41 2006 12.34 14.28 92,846.80 2007 14.28 13.45 74,177.43 2008 13.45 8.76 67,499.00 2009 8.76 10.38 59,539.31 2010 10.38 11.33 31,516.80 2011 11.33 11.20 503.93 2012 11.20 12.79 419.91 MLA Mid Cap Investment Division (formerly Lazard Mid Cap Investment Division) (Class E).............................................. 2003 9.61 11.92 3,997.79 2004 11.92 13.39 22,734.48 2005 13.39 14.22 17,991.04 2006 14.22 16.01 23,011.11 2007 16.01 15.29 17,686.83 2008 15.29 9.26 15,006.86 2009 9.26 12.44 11,927.44 2010 12.44 15.03 6,370.01 2011 15.03 13.97 0.00 2012 13.97 14.45 0.00 MSCI EAFE(R) Index Investment Division (formerly Morgan Stanley EAFE(R) Index Investment Division) (Class E).................................... 2003 6.93 9.34 144,270.47 2004 9.34 10.94 212,515.85 2005 10.94 12.13 116,909.90 2006 12.13 14.96 111,174.05 2007 14.96 16.23 103,672.89 2008 16.23 9.21 111,642.29 2009 9.21 11.61 92,150.07 2010 11.61 12.30 49,602.74 2011 12.30 10.55 3,881.01 2012 10.55 12.23 3,904.25 Morgan Stanley Mid Cap Growth Investment Division (Class E).............................................. 2010 12.31 14.26 10,308.75 2011 14.26 13.03 2,731.99 2012 13.03 13.99 2,798.03 Morgan Stanley Mid Cap Growth Investment Division (formerly FI Mid Cap Opportunities Investment Division (Class E))............................................. 2003 10.63 14.04 7,155.17 2004 14.04 16.11 80,222.93 2005 16.11 16.87 27,038.96 2006 16.87 18.49 22,095.35 2007 18.49 19.63 22,599.70 2008 19.63 8.59 24,930.34 2009 8.59 11.27 19,977.47 2010 11.27 12.18 0.00
130
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Neuberger Berman Genesis Investment Division (Class E).. 2003 $10.68 $15.72 91,986.55 2004 15.72 17.76 240,550.97 2005 17.76 18.12 173,335.54 2006 18.12 20.74 141,003.70 2007 20.74 19.62 127,084.88 2008 19.62 11.83 104,037.56 2009 11.83 13.11 98,345.69 2010 13.11 15.63 58,570.31 2011 15.63 16.19 355.51 2012 16.19 17.45 146.78 Oppenheimer Global Equity Investment Division (Class E). 2003 9.79 12.53 7,699.28 2004 12.53 14.28 13,820.88 2005 14.28 16.27 12,974.62 2006 16.27 18.60 13,594.90 2007 18.60 19.40 13,438.30 2008 19.40 11.32 11,966.09 2009 11.32 15.56 10,478.17 2010 15.56 17.73 4,922.31 2011 17.73 15.93 546.02 2012 15.93 18.97 527.11 PIMCO Total Return Investment Division (Class E)........ 2003 11.16 11.43 91,741.16 2004 11.43 11.78 221,502.98 2005 11.78 11.83 228,104.58 2006 11.83 12.15 134,722.82 2007 12.15 12.83 148,495.59 2008 12.83 12.65 134,376.28 2009 12.65 14.67 122,195.87 2010 14.67 15.58 80,206.66 2011 15.58 15.80 5,941.04 2012 15.80 16.94 7,167.16 RCM Tecnology Investment Division (Class E)............. 2003 2.94 4.54 38,716.32 2004 4.54 4.26 131,230.36 2005 4.26 4.65 86,013.73 2006 4.65 4.81 73,827.22 2007 4.81 6.22 63,124.39 2008 6.22 3.38 52,775.10 2009 3.38 5.29 57,345.33 2010 5.29 6.64 40,278.36 2011 6.64 5.87 1,017.68 2012 5.87 6.47 551.91
131
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Russell 2000(R) Index Investment Division (Class E). 2003 $ 9.18 $13.15 25,917.46 2004 13.15 15.16 50,459.09 2005 15.16 15.53 50,049.99 2006 15.53 17.94 49,117.28 2007 17.94 17.31 43,566.62 2008 17.31 11.28 41,467.67 2009 11.28 13.93 36,927.94 2010 13.93 17.31 20,823.42 2011 17.31 16.28 2,337.56 2012 16.28 18.54 2,328.95 T. Rowe Price Large Cap Growth Investment Division (Class E)......................................... 2003 8.53 10.93 7,368.15 2004 10.93 11.77 26,406.23 2005 11.77 12.30 24,290.61 2006 12.30 13.63 21,458.90 2007 13.63 14.61 29,530.51 2008 14.61 8.32 27,893.36 2009 8.32 11.69 16,974.15 2010 11.69 13.41 11,226.85 2011 13.41 12.99 2,272.38 2012 12.99 15.15 1,896.03 T. Rowe Price Mid Cap Growth Investment Division (Class E)......................................... 2003 4.51 6.05 25,976.24 2004 6.05 7.01 48,313.85 2005 7.01 7.88 57,643.02 2006 7.88 8.23 52,037.86 2007 8.23 9.49 70,258.72 2008 9.49 5.62 55,757.62 2009 5.62 8.03 52,586.61 2010 8.03 10.08 28,104.88 2011 10.08 9.73 1,627.56 2012 9.73 10.87 1,343.66 T. Rowe Price Small Cap Growth Investment Division (Class E)......................................... 2003 8.47 11.69 6,820.69 2004 11.69 12.73 10,507.64 2005 12.73 13.84 10,450.91 2006 13.84 14.08 9,325.47 2007 14.08 15.15 13,575.06 2008 15.15 9.48 11,701.88 2009 9.48 12.91 12,632.88 2010 12.91 17.06 3,703.46 2011 17.06 17.00 1,005.39 2012 17.00 19.35 953.20
132
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Western Asset Management Strategic Bond Opportunities Investment Division (Class E)....................... 2003 $16.44 $18.15 38,842.28 2004 18.15 18.96 84,855.05 2005 18.96 19.10 84,331.83 2006 19.10 19.65 74,108.61 2007 19.65 20.03 55,755.70 2008 20.03 16.68 49,032.00 2009 16.68 21.60 36,657.57 2010 21.60 23.87 17,920.06 2011 23.87 24.81 1,262.03 2012 24.81 27.10 1,201.09 Western Asset Management U.S Government Investment Division (Class E).................................. 2003 15.05 14.99 61,521.19 2004 14.99 15.12 33,227.70 2005 15.12 15.07 29,759.10 2006 15.07 15.38 24,235.19 2007 15.38 15.71 27,578.09 2008 15.71 15.35 19,402.36 2009 15.35 15.69 15,632.99 2010 15.69 16.27 8,450.73 2011 16.27 16.81 935.83 2012 16.81 17.01 883.36
133 GROUP I--PREFERENCE PLUS SELECT E SHARE AND AMERICAN FUNDS(R) CLASS 2 1.95 SEPARATE ACCOUNT CHARGE
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ American Funds Bond Investment Division+ (Class 2) (5/1/2006).......................................... 2006 $ 13.91 $ 14.54 609.09 2007 14.54 14.71 8,556.70 2008 14.71 13.06 5,627.05 2009 13.06 14.40 5,174.78 2010 14.40 15.01 68.28 2011 15.01 15.59 0.00 2012 15.59 16.09 0.00 American Funds Global Small Capitalization Investment Division+ (Class 2)................................. 2003 10.46 15.73 19,818.67 2004 15.73 18.62 27,055.05 2005 18.62 22.86 27,764.62 2006 22.86 27.77 33,806.46 2007 27.77 33.02 31,194.78 2008 33.02 15.02 25,007.49 2009 15.02 23.73 13,830.25 2010 23.73 28.45 2,822.83 2011 28.45 22.52 0.00 2012 22.52 26.06 0.00 American Funds Growth Investment Division+ ( Class 2). 2003 74.90 100.34 9,349.78 2004 100.34 110.53 14,562.37 2005 110.53 125.77 15,316.45 2006 125.77 135.74 16,484.29 2007 135.74 149.32 14,638.88 2008 149.32 81.91 11,738.22 2009 81.91 111.83 8,661.00 2010 111.83 129.96 2,879.17 2011 129.96 121.82 0.00 2012 121.82 140.62 0.00 American Funds Growth-Income Investment Division+ (Class 2)........................................... 2003 60.22 78.09 20,009.43 2004 78.09 84.39 24,296.87 2005 84.39 87.47 24,577.59 2006 87.47 98.68 23,058.63 2007 98.68 101.49 17,968.87 2008 101.49 61.76 14,155.02 2009 61.76 79.37 8,549.43 2010 79.37 86.60 1,125.13 2011 86.60 83.25 0.00 2012 83.25 95.76 0.00
134
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Baillie Gifford International Stock Investment Division (formerly Artio International Stock Investment Division) (Class E)................................................ 2003 $ 8.73 $10.95 10,133.66 2004 10.95 12.67 8,229.47 2005 12.67 14.64 5,687.67 2006 14.64 16.69 12,354.92 2007 16.69 18.04 7,011.85 2008 18.04 9.87 9,173.26 2009 9.87 11.80 5,226.06 2010 11.80 12.39 173.68 2011 12.39 9.72 0.00 2012 9.72 11.38 0.00 Barclays Capital Aggregate Bond Index Investment Division (Class E)................................................ 2003 12.09 12.27 79,022.18 2004 12.27 12.51 121,799.63 2005 12.51 12.52 112,600.60 2006 12.52 12.75 98,805.08 2007 12.75 13.34 88,052.22 2008 13.34 13.84 48,570.56 2009 13.84 14.27 22,191.47 2010 14.27 14.81 2,074.06 2011 14.81 15.59 0.00 2012 15.59 15.85 0.00 BlackRock Aggressive Growth Investment Division (Class E)................................................ 2003 22.70 31.30 1,824.32 2004 31.30 34.62 3,245.89 2005 34.62 37.53 3,140.57 2006 37.53 39.22 3,847.61 2007 39.22 46.30 2,597.66 2008 46.30 24.61 2,775.23 2009 24.61 36.01 2,360.87 2010 36.01 40.68 1,373.11 2011 40.68 38.63 0.00 2012 38.63 41.98 0.00 BlackRock Bond Income Investment Division (Class E)........ 2003 40.39 41.86 8,479.83 2004 41.86 42.81 8,223.39 2005 42.81 42.93 9,694.81 2006 42.93 43.90 7,742.40 2007 43.90 45.68 5,580.37 2008 45.68 43.20 4,708.42 2009 43.20 46.31 2,366.61 2010 46.31 49.13 879.54 2011 49.13 51.27 0.00 2012 51.27 53.99 0.00
135
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ BlackRock Diversified Investment Division (Class E)..... 2003 $28.07 $33.14 14,130.18 2004 33.14 35.19 11,645.66 2005 35.19 35.53 11,758.61 2006 35.53 38.45 11,027.45 2007 38.45 39.85 11,083.92 2008 39.85 29.36 8,631.96 2009 29.36 33.73 7,414.88 2010 33.73 36.20 771.34 2011 36.20 36.81 0.00 2012 36.81 40.49 0.00 BlackRock Large Cap Core Investment Division* (Class E). 2007 70.12 70.52 2,721.75 2008 70.52 43.39 2,344.73 2009 43.39 50.77 1,132.31 2010 50.77 56.09 125.76 2011 56.09 55.17 0.00 2012 55.17 61.46 0.00 BlackRock Large Cap Investment Division (Class E)....... 2003 43.03 54.88 6,585.98 2004 54.88 59.58 7,034.37 2005 59.58 60.44 7,261.42 2006 60.44 67.53 3,380.64 2007 67.53 70.71 0.00 BlackRock Large Cap Value Investment Division (Class E). 2003 7.89 10.48 9,377.85 2004 10.48 11.65 9,436.09 2005 11.65 12.07 9,210.78 2006 12.07 14.11 8,409.84 2007 14.11 14.29 14,454.65 2008 14.29 9.10 9,196.33 2009 9.10 9.93 2,470.80 2010 9.93 10.61 297.32 2011 10.61 10.63 0.00 2012 10.63 11.89 0.00 BlackRock Money Market Investment Division (Class E) (5/1/2003)............................................ 2003 20.29 20.10 0.00 2004 20.10 19.88 0.00 2005 19.88 20.03 0.00 2006 20.03 20.56 0.00 2007 20.56 21.15 0.00 2008 21.15 21.30 0.00 2009 21.30 20.95 0.00 2010 20.95 20.55 0.00 2011 20.55 20.15 0.00 2012 20.15 19.76 0.00
136
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Davis Venture Value Investment Division (Class E)...... 2003 $20.80 $26.67 12,986.92 2004 26.67 29.33 16,350.50 2005 29.33 31.69 14,462.41 2006 31.69 35.55 13,603.83 2007 35.55 36.41 13,567.88 2008 36.41 21.61 12,072.64 2009 21.61 27.94 8,235.47 2010 27.94 30.64 4,555.78 2011 30.64 28.79 0.00 2012 28.79 31.82 0.00 FI Value Leaders Investment Division (Class E)......... 2003 17.74 22.05 1,166.59 2004 22.05 24.56 5,242.21 2005 24.56 26.62 7,862.59 2006 26.62 29.18 7,629.36 2007 29.18 29.77 6,876.53 2008 29.77 17.80 3,902.67 2009 17.80 21.23 1,207.25 2010 21.23 23.82 307.26 2011 23.82 21.89 0.00 2012 21.89 24.82 0.00 Harris Oakmark International Investment Division (Class E)............................................ 2003 8.77 11.63 16,902.37 2004 11.63 13.76 35,058.24 2005 13.76 15.43 38,676.82 2006 15.43 19.52 40,632.00 2007 19.52 18.95 35,647.09 2008 18.95 10.99 26,316.57 2009 10.99 16.74 14,846.48 2010 16.74 19.13 9,859.20 2011 19.13 16.11 0.00 2012 16.11 20.42 0.00 Invesco Small Cap Growth Investment Division (Class E). 2003 8.43 11.49 1,226.43 2004 11.49 12.01 1,678.49 2005 12.01 12.78 1,742.83 2006 12.78 14.32 1,575.15 2007 14.32 15.62 1,739.88 2008 15.62 9.38 1,723.95 2009 9.38 12.33 1,122.72 2010 12.33 15.27 420.05 2011 15.27 14.83 0.00 2012 14.83 17.21 0.00 Jennison Growth Investment Division (Class E).......... 2005 3.96 4.74 16,008.68 2006 4.74 4.77 14,895.86 2007 4.77 5.22 12,373.90 2008 5.22 3.24 7,912.62 2009 3.24 4.45 5,650.49 2010 4.45 4.87 10.72 2011 4.87 4.79 0.00 2012 4.79 5.43 0.00
137
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Jennison Growth Investment Division (Class E) (formerly Met/Putnam Voyager Investment Division)....... 2003 $ 3.39 $ 4.18 18,669.32 2004 4.18 4.29 17,612.61 2005 4.29 3.92 17,352.62 Legg Mason ClearBridge Aggressive Growth Investment Division (Class E)...................................... 2003 5.50 6.68 6,879.18 2004 6.68 7.11 6,273.61 2005 7.11 7.93 5,488.26 2006 7.93 7.65 5,572.00 2007 7.65 7.68 3,616.83 2008 7.68 4.59 6,325.78 2009 4.59 6.00 707.91 2010 6.00 7.28 2.93 2011 7.28 7.39 0.00 2012 7.39 8.59 0.00 Legg Mason ClearBridge Aggressive Growth Investment Division (Class E)...................................... 2006 9.07 9.69 15,780.06 2007 9.69 8.95 10,801.52 2008 8.95 3.98 11,884.53 2009 3.98 5.39 3,516.65 2010 5.39 5.68 1,719.43 2011 5.68 6.03 0.00 Legg Mason Partners Aggressive Growth Investment Division (formerly Janus Growth Investment Division) (Class E)... 2003 5.24 5.50 0.00 Legg Mason Value Equity Investment Division (Class E) (formerly MFS(R) Investors Trust Investment Division)... 2003 6.39 7.61 3,579.58 2004 7.61 8.31 15,052.67 2005 8.31 8.73 15,629.23 2006 8.73 9.11 15,493.81 Loomis Sayles Small Cap Core Investment Division (Class E)............................................... 2003 16.55 22.12 4,146.38 2004 22.12 25.21 5,628.28 2005 25.21 26.39 4,754.63 2006 26.39 30.16 6,152.92 2007 30.16 33.04 4,929.11 2008 33.04 20.74 4,792.79 2009 20.74 26.45 1,918.18 2010 26.45 33.03 274.39 2011 33.03 32.54 0.00 2012 32.54 36.50 0.00 Loomis Sayles Small Cap Growth Investment Division (Class E)............................................... 2003 6.20 8.79 15,372.27 2004 8.79 9.59 15,871.81 2005 9.59 9.83 15,368.28 2006 9.83 10.59 11,245.93 2007 10.59 10.85 8,006.67 2008 10.85 6.24 7,574.97 2009 6.24 7.95 4,552.23 2010 7.95 10.25 1,247.27 2011 10.25 10.35 0.00 2012 10.35 11.26 0.00
138
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Lord Abbett Bond Debenture Investment Division (Class E)............................................. 2003 $10.14 $11.87 26,926.45 2004 11.87 12.60 38,285.38 2005 12.60 12.56 31,566.35 2006 12.56 13.45 29,249.49 2007 13.45 14.08 32,121.86 2008 14.08 11.25 21,582.99 2009 11.25 15.10 16,620.95 2010 15.10 16.73 3,269.41 2011 16.73 17.18 0.00 2012 17.18 19.04 0.00 Lord Abbett Mid Cap Value Investment Division (Class E). 2012 23.89 24.48 0.00 Lord Abbett Mid Cap Value Investment Division (Class E) (formerly Neuberger Berman Mid Cap Value Investment Division (Class E))................................... 2003 13.11 17.53 21,064.27 2004 17.53 21.11 28,083.59 2005 21.11 23.21 30,508.33 2006 23.21 25.33 32,506.02 2007 25.33 25.65 25,772.22 2008 25.65 13.23 22,709.76 2009 13.23 19.18 9,616.99 2010 19.18 23.73 836.28 2011 23.73 21.74 0.00 2012 21.74 24.01 0.00 Met/Artisan Mid Cap Value Investment Division (Class E). 2003 22.36 29.04 24,903.78 2004 29.04 31.26 32,921.43 2005 31.26 33.67 33,023.25 2006 33.67 37.08 28,516.77 2007 37.08 33.82 25,127.80 2008 33.82 17.88 16,813.78 2009 17.88 24.79 9,374.44 2010 24.79 27.92 3,221.93 2011 27.92 29.19 0.00 2012 29.19 31.97 0.00 MetLife Mid Cap Stock Index Investment Division (Class E)............................................. 2003 8.53 11.27 25,373.69 2004 11.27 12.81 22,986.81 2005 12.81 14.09 18,766.32 2006 14.09 15.18 16,984.17 2007 15.18 16.03 15,218.70 2008 16.03 10.01 9,132.32 2009 10.01 13.44 6,567.46 2010 13.44 16.62 1,748.13 2011 16.62 15.95 0.00 2012 15.95 18.38 0.00
139
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ MetLife Stock Index Investment Division (Class E). 2003 $25.67 $32.23 31,968.99 2004 32.23 34.88 58,929.48 2005 34.88 35.75 53,478.98 2006 35.75 40.42 48,113.89 2007 40.42 41.64 43,991.39 2008 41.64 25.65 34,755.34 2009 25.65 31.71 17,808.20 2010 31.71 35.64 1,985.80 2011 35.64 35.55 0.00 2012 35.55 40.28 0.00 MFS(R) Research International Investment Division (Class E)....................................... 2003 7.22 9.35 3,561.59 2004 9.35 10.97 5,435.30 2005 10.97 12.54 4,840.19 2006 12.54 15.59 7,290.25 2007 15.59 17.34 6,843.35 2008 17.34 9.80 7,076.96 2009 9.80 12.67 4,685.27 2010 12.67 13.86 1,027.46 2011 13.86 12.15 0.00 2012 12.15 13.91 0.00 MFS(R) Total Return Investment Division (Class E) (5/1/2004)...................................... 2004 33.48 36.27 646.66 2005 36.27 36.58 1,203.01 2006 36.58 40.16 1,029.13 2007 40.16 41.00 5,429.37 2008 41.00 31.22 1,821.85 2009 31.22 36.22 1,381.73 2010 36.22 39.01 1,233.88 2011 39.01 39.08 711.40 2012 39.08 42.65 176.35 MFS(R) Value Investment Division (Class E)........ 2003 9.49 11.66 68,038.59 2004 11.66 12.73 67,289.86 2005 12.73 12.29 62,456.59 2006 12.29 14.22 52,884.48 2007 14.22 13.39 37,010.57 2008 13.39 8.72 29,963.97 2009 8.72 10.32 10,959.90 2010 10.32 11.26 166.86 2011 11.26 11.13 0.00 2012 11.13 12.70 0.00
140
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ MLA Mid Cap Investment Division (formerly Lazard Mid Cap Investment Division) (Class E).............................................. 2003 $ 9.61 $11.91 12,770.05 2004 11.91 13.36 9,935.82 2005 13.36 14.19 8,696.22 2006 14.19 15.96 6,084.03 2007 15.96 15.24 14,329.56 2008 15.24 9.23 7,832.76 2009 9.23 12.39 2,931.96 2010 12.39 14.96 4.60 2011 14.96 13.90 0.00 2012 13.90 14.37 0.00 MSCI EAFE(R) Index Investment Division (formerly Morgan Stanley EAFE(R) Index Investment Division) (Class E).................................... 2003 6.91 9.31 43,523.07 2004 9.31 10.91 46,098.93 2005 10.91 12.09 36,008.12 2006 12.09 14.90 29,754.89 2007 14.90 16.15 22,381.51 2008 16.15 9.16 17,411.04 2009 9.16 11.54 11,423.59 2010 11.54 12.23 4,586.06 2011 12.23 10.48 0.00 2012 10.48 12.14 0.00 Morgan Stanley Mid Cap Growth Investment Division (Class E).............................................. 2010 12.23 14.16 115.01 2011 14.16 12.93 0.00 2012 12.93 13.88 0.00 Morgan Stanley Mid Cap Growth Investment Division (formerly FI Mid Cap Opportunities Investment Division (Class E))............................................. 2003 10.60 13.99 7,446.88 2004 13.99 16.05 19,045.42 2005 16.05 16.80 17,985.10 2006 16.80 18.40 14,282.10 2007 18.40 19.52 12,182.56 2008 19.52 8.54 9,391.87 2009 8.54 11.20 5,868.11 2010 11.20 12.10 0.00 Neuberger Berman Genesis Investment Division (Class E)... 2003 10.67 15.69 55,838.46 2004 15.69 17.72 77,153.87 2005 17.72 18.07 70,668.67 2006 18.07 20.67 62,782.40 2007 20.67 19.54 52,123.68 2008 19.54 11.78 39,734.67 2009 11.78 13.05 21,375.99 2010 13.05 15.54 7,888.53 2011 15.54 16.09 0.00 2012 16.09 17.34 0.00
141
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Oppenheimer Global Equity Investment Division (Class E). 2003 $ 9.77 $12.49 14,622.39 2004 12.49 14.22 21,811.17 2005 14.22 16.20 16,832.32 2006 16.20 18.51 16,225.78 2007 18.51 19.29 20,220.85 2008 19.29 11.26 12,204.99 2009 11.26 15.46 6,783.58 2010 15.46 17.61 4,242.82 2011 17.61 15.82 0.00 2012 15.82 18.82 0.00 PIMCO Total Return Investment Division (Class E)........ 2003 11.15 11.41 82,993.61 2004 11.41 11.76 93,168.41 2005 11.76 11.80 76,792.21 2006 11.80 12.12 64,263.27 2007 12.12 12.79 59,620.79 2008 12.79 12.60 59,267.08 2009 12.60 14.61 39,918.67 2010 14.61 15.50 11,524.44 2011 15.50 15.72 0.00 2012 15.72 16.84 0.00 RCM Tecnology Investment Division (Class E)............. 2003 2.93 4.53 58,809.62 2004 4.53 4.25 67,918.14 2005 4.25 4.64 57,877.70 2006 4.64 4.79 57,103.73 2007 4.79 6.19 41,569.23 2008 6.19 3.37 50,226.41 2009 3.37 5.27 11,656.13 2010 5.27 6.61 2,362.24 2011 6.61 5.83 0.00 2012 5.83 6.43 0.00 Russell 2000(R) Index Investment Division (Class E)..... 2003 9.16 13.12 15,600.66 2004 13.12 15.11 22,910.79 2005 15.11 15.48 21,394.44 2006 15.48 17.87 18,862.85 2007 17.87 17.23 12,195.22 2008 17.23 11.22 19,433.09 2009 11.22 13.85 4,756.87 2010 13.85 17.20 2,148.34 2011 17.20 16.17 0.00 2012 16.17 18.41 0.00 T. Rowe Price Large Cap Growth Investment Division (Class E)............................................. 2003 8.51 10.90 9,314.88 2004 10.90 11.74 13,503.43 2005 11.74 12.25 12,718.47 2006 12.25 13.58 11,811.70 2007 13.58 14.55 18,313.28 2008 14.55 8.28 11,748.20 2009 8.28 11.63 6,277.86 2010 11.63 13.33 1,172.84 2011 13.33 12.91 0.00 2012 12.91 15.04 0.00
142
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ T. Rowe Price Mid Cap Growth Investment Division (Class E)........................................... 2003 $ 4.50 $ 6.04 28,660.07 2004 6.04 7.00 48,665.58 2005 7.00 7.86 47,518.75 2006 7.86 8.20 40,664.46 2007 8.20 9.46 38,053.18 2008 9.46 5.60 40,528.39 2009 5.60 7.99 13,840.67 2010 7.99 10.03 1,837.59 2011 10.03 9.68 0.00 2012 9.68 10.80 0.00 T. Rowe Price Small Cap Growth Investment Division (Class E)........................................... 2003 8.44 11.65 7,849.46 2004 11.65 12.68 9,355.46 2005 12.68 13.78 7,628.18 2006 13.78 14.01 8,804.37 2007 14.01 15.07 6,016.29 2008 15.07 9.42 5,523.44 2009 9.42 12.82 3,941.01 2010 12.82 16.94 279.71 2011 16.94 16.87 0.00 2012 16.87 19.20 0.00 Western Asset Management Strategic Bond Opportunities Investment Division (Class E)....................... 2003 16.38 18.07 44,182.76 2004 18.07 18.86 35,112.90 2005 18.86 19.00 38,553.13 2006 19.00 19.53 34,205.69 2007 19.53 19.90 25,852.64 2008 19.90 16.56 14,902.48 2009 16.56 21.44 9,701.51 2010 21.44 23.68 1,882.30 2011 23.68 24.60 0.00 2012 24.60 26.85 0.00 Western Asset Management U.S Government Investment Division (Class E).................................. 2003 14.99 14.93 52,239.43 2004 14.93 15.05 31,829.09 2005 15.05 14.99 32,306.49 2006 14.99 15.29 28,795.81 2007 15.29 15.61 26,641.38 2008 15.61 15.24 19,997.20 2009 15.24 15.57 5,948.11 2010 15.57 16.14 63.71 2011 16.14 16.66 0.00 2012 16.66 16.85 0.00
143 GROUP I--PREFERENCE PLUS SELECT E SHARE AND AMERICAN FUNDS(R) CLASS 2 2.00 SEPARATE ACCOUNT CHARGE
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ American Funds Bond Investment Division+ (Class 2) (5/1/2006).......................................... 2006 $ 13.85 $ 14.47 9,595.57 2007 14.47 14.63 927.95 2008 14.63 12.98 0.00 2009 12.98 14.30 0.00 2010 14.30 14.90 2.15 2011 14.90 15.48 0.00 2012 15.48 15.96 0.00 American Funds Global Small Capitalization Investment Division+ (Class 2)................................. 2003 10.44 15.69 2,413.26 2004 15.69 18.56 4,253.14 2005 18.56 22.77 3,720.80 2006 22.77 27.65 3,462.82 2007 27.65 32.86 4,490.02 2008 32.86 14.94 3,722.91 2009 14.94 23.59 3,401.46 2010 23.59 28.27 2,989.97 2011 28.27 22.37 3,095.31 2012 22.37 25.87 3,031.25 American Funds Growth Investment Division+ ( Class 2). 2003 74.19 99.35 1,311.12 2004 99.35 109.38 1,952.69 2005 109.38 124.40 1,814.05 2006 124.40 134.20 1,100.43 2007 134.20 147.55 915.88 2008 147.55 80.90 903.53 2009 80.90 110.39 530.85 2010 110.39 128.22 502.06 2011 128.22 120.13 478.89 2012 120.13 138.60 450.48 American Funds Growth-Income Investment Division+ (Class 2)........................................... 2003 59.65 77.32 453.38 2004 77.32 83.52 1,755.10 2005 83.52 86.51 2,396.81 2006 86.51 97.55 2,471.57 2007 97.55 100.28 1,805.14 2008 100.28 60.99 1,943.98 2009 60.99 78.35 1,779.02 2010 78.35 85.44 1,843.67 2011 85.44 82.10 1,867.05 2012 82.10 94.39 1,514.50
144
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Baillie Gifford International Stock Investment Division (formerly Artio International Stock Investment Division) (Class E)................................................ 2003 $ 8.68 $10.88 6,601.98 2004 10.88 12.58 6,573.98 2005 12.58 14.53 7,616.03 2006 14.53 16.56 2,330.33 2007 16.56 17.89 2,107.18 2008 17.89 9.78 1,366.13 2009 9.78 11.69 2,639.06 2010 11.69 12.27 2,574.87 2011 12.27 9.62 2,328.55 2012 9.62 11.26 772.09 Barclays Capital Aggregate Bond Index Investment Division (Class E)................................................ 2003 12.07 12.24 16,394.16 2004 12.24 12.47 41,555.07 2005 12.47 12.47 54,822.25 2006 12.47 12.70 31,065.87 2007 12.70 13.28 22,432.43 2008 13.28 13.77 16,236.61 2009 13.77 14.19 16,988.38 2010 14.19 14.72 15,980.27 2011 14.72 15.49 14,420.87 2012 15.49 15.74 14,980.25 BlackRock Aggressive Growth Investment Division (Class E)................................................ 2003 22.53 31.06 454.93 2004 31.06 34.33 609.77 2005 34.33 37.20 168.68 2006 37.20 38.85 280.97 2007 38.85 45.84 66.66 2008 45.84 24.36 500.21 2009 24.36 35.62 13.92 2010 35.62 40.22 0.85 2011 40.22 38.17 0.00 2012 38.17 41.46 0.00 BlackRock Bond Income Investment Division (Class E)........ 2003 40.00 41.44 2,036.78 2004 41.44 42.35 2,439.73 2005 42.35 42.45 2,435.95 2006 42.45 43.39 2,336.62 2007 43.39 45.13 1,678.87 2008 45.13 42.65 1,431.65 2009 42.65 45.70 404.83 2010 45.70 48.46 406.50 2011 48.46 50.54 404.83 2012 50.54 53.19 551.23
145
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ BlackRock Diversified Investment Division (Class E).. 2003 $27.83 $32.85 2,511.68 2004 32.85 34.87 3,197.98 2005 34.87 35.19 3,169.34 2006 35.19 38.05 2,843.78 2007 38.05 39.43 2,156.45 2008 39.43 29.03 2,036.42 2009 29.03 33.33 1,964.57 2010 33.33 35.76 1,887.34 2011 35.76 36.34 1,803.58 2012 36.34 39.96 432.32 BlackRock Large Cap Core Investment Division* (Class E).......................................... 2007 69.29 69.66 261.41 2008 69.66 42.84 432.02 2009 42.84 50.10 263.60 2010 50.10 55.33 258.33 2011 55.33 54.39 255.69 2012 54.39 60.56 254.42 BlackRock Large Cap Investment Division (Class E).... 2003 42.61 54.32 439.64 2004 54.32 58.94 440.30 2005 58.94 59.77 438.56 2006 59.77 66.74 262.09 2007 66.74 69.88 0.00 BlackRock Large Cap Value Investment Division (Class E).......................................... 2003 7.89 10.47 0.00 2004 10.47 11.63 3,355.84 2005 11.63 12.05 3,253.52 2006 12.05 14.08 10,312.76 2007 14.08 14.25 7,698.10 2008 14.25 9.07 7,520.97 2009 9.07 9.89 9,280.04 2010 9.89 10.56 9,979.30 2011 10.56 10.58 9,649.16 2012 10.58 11.83 9,587.44 BlackRock Money Market Investment Division (Class E) (5/1/2003)......................................... 2003 20.09 19.90 0.00 2004 19.90 19.67 0.00 2005 19.67 19.81 0.00 2006 19.81 20.32 0.00 2007 20.32 20.90 2,104.88 2008 20.90 21.03 0.00 2009 21.03 20.68 0.00 2010 20.68 20.27 3.15 2011 20.27 19.87 0.00 2012 19.87 19.47 0.00
146
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Davis Venture Value Investment Division (Class E)...... 2003 $20.72 $26.55 2,989.29 2004 26.55 29.18 3,062.57 2005 29.18 31.51 3,023.48 2006 31.51 35.34 83.25 2007 35.34 36.17 0.00 2008 36.17 21.46 519.73 2009 21.46 27.73 518.85 2010 27.73 30.39 151.89 2011 30.39 28.55 191.44 2012 28.55 31.53 89.52 FI Value Leaders Investment Division (Class E)......... 2003 17.65 21.93 0.00 2004 21.93 24.42 0.00 2005 24.42 26.45 0.00 2006 26.45 28.98 489.13 2007 28.98 29.55 0.00 2008 29.55 17.66 0.00 2009 17.66 21.06 0.00 2010 21.06 23.61 0.00 2011 23.61 21.69 0.00 2012 21.69 24.57 0.00 Harris Oakmark International Investment Division (Class E)............................................ 2003 8.77 11.62 0.00 2004 11.62 13.74 2,210.94 2005 13.74 15.39 1,658.00 2006 15.39 19.47 5,010.11 2007 19.47 18.89 3,906.17 2008 18.89 10.95 2,890.02 2009 10.95 16.67 3,302.63 2010 16.67 19.04 2,965.21 2011 19.04 16.03 2,876.51 2012 16.03 20.31 3,746.23 Invesco Small Cap Growth Investment Division (Class E). 2003 8.43 11.48 413.02 2004 11.48 11.99 412.75 2005 11.99 12.75 412.27 2006 12.75 14.28 1,899.08 2007 14.28 15.57 412.97 2008 15.57 9.35 412.27 2009 9.35 12.28 0.00 2010 12.28 15.20 1.97 2011 15.20 14.76 0.00 2012 14.76 17.12 0.00 Jennison Growth Investment Division (Class E).......... 2005 3.95 4.73 0.00 2006 4.73 4.76 1,264.20 2007 4.76 5.20 657.80 2008 5.20 3.23 655.29 2009 3.23 4.43 0.00 2010 4.43 4.84 8.74 2011 4.84 4.76 0.00 2012 4.76 5.39 0.00
147
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Jennison Growth Investment Division (Class E) (formerly Met/Putnam Voyager Investment Division)..... 2003 $ 3.39 $ 4.18 0.00 2004 4.18 4.28 0.53 2005 4.28 3.91 0.00 Legg Mason ClearBridge Aggressive Growth Investment Division (Class E).................................... 2003 5.49 6.67 320.69 2004 6.67 7.10 284.39 2005 7.10 7.91 250.21 2006 7.91 7.63 2,061.90 2007 7.63 7.65 189.47 2008 7.65 4.57 0.00 2009 4.57 5.97 0.00 2010 5.97 7.25 0.47 2011 7.25 7.35 0.00 2012 7.35 8.54 2,235.97 Legg Mason ClearBridge Aggressive Growth Investment Division (Class E).................................... 2006 9.04 9.66 302.93 2007 9.66 8.91 0.00 2008 8.91 3.97 0.00 2009 3.97 5.36 0.00 2010 5.36 5.65 0.00 2011 5.65 5.99 0.00 Legg Mason Partners Aggressive Growth Investment Division (formerly Janus Growth Investment Division) (Class E). 2003 5.24 5.49 0.00 Legg Mason Value Equity Investment Division (Class E) (formerly MFS(R) Investors Trust Investment Division). 2003 6.38 7.60 0.00 2004 7.60 8.28 0.00 2005 8.28 8.70 0.00 2006 8.70 9.08 0.00 Loomis Sayles Small Cap Core Investment Division (Class E)............................................. 2003 16.48 22.01 214.38 2004 22.01 25.07 214.24 2005 25.07 26.24 214.00 2006 26.24 29.97 214.00 2007 29.97 32.82 1,532.45 2008 32.82 20.59 1,167.90 2009 20.59 26.24 998.24 2010 26.24 32.76 915.26 2011 32.76 32.25 869.42 2012 32.25 36.16 877.33
148
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Loomis Sayles Small Cap Growth Investment Division (Class E)............................................. 2003 $ 6.19 $ 8.78 1,775.24 2004 8.78 9.57 2,836.43 2005 9.57 9.81 222.62 2006 9.81 10.56 719.67 2007 10.56 10.81 239.96 2008 10.81 6.22 307.80 2009 6.22 7.92 0.00 2010 7.92 10.20 1.21 2011 10.20 10.29 0.00 2012 10.29 11.19 0.00 Lord Abbett Bond Debenture Investment Division (Class E)............................................. 2003 10.11 11.83 1,134.38 2004 11.83 12.55 1,509.40 2005 12.55 12.50 1,755.64 2006 12.50 13.38 1,440.03 2007 13.38 14.00 7,115.18 2008 14.00 11.18 5,195.01 2009 11.18 15.00 4,832.39 2010 15.00 16.62 4,709.99 2011 16.62 17.06 4,648.02 2012 17.06 18.89 4,602.56 Lord Abbett Mid Cap Value Investment Division (Class E)............................................. 2012 23.73 24.31 474.28 Lord Abbett Mid Cap Value Investment Division (Class E) (formerly Neuberger Berman Mid Cap Value Investment Division (Class E))................................... 2003 13.08 17.49 1,230.14 2004 17.49 21.05 1,765.76 2005 21.05 23.12 3,214.66 2006 23.12 25.22 3,831.25 2007 25.22 25.53 2,015.24 2008 25.53 13.16 1,886.20 2009 13.16 19.07 598.62 2010 19.07 23.58 765.68 2011 23.58 21.60 571.60 2012 21.60 23.85 0.00 Met/Artisan Mid Cap Value Investment Division (Class E)............................................. 2003 22.25 28.89 4,464.34 2004 28.89 31.08 5,088.39 2005 31.08 33.46 4,099.48 2006 33.46 36.83 1,448.01 2007 36.83 33.57 861.56 2008 33.57 17.74 620.14 2009 17.74 24.58 602.97 2010 24.58 27.68 589.28 2011 27.68 28.92 574.65 2012 28.92 31.66 566.61
149
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ MetLife Mid Cap Stock Index Investment Division (Class E)....................................... 2003 $ 8.52 $11.25 3,230.22 2004 11.25 12.78 6,267.43 2005 12.78 14.05 6,188.02 2006 14.05 15.13 3,740.18 2007 15.13 15.97 5,868.56 2008 15.97 9.96 7,153.62 2009 9.96 13.37 6,518.84 2010 13.37 16.53 5,656.59 2011 16.53 15.86 6,628.86 2012 15.86 18.26 6,223.02 MetLife Stock Index Investment Division (Class E). 2003 25.51 32.01 2,923.26 2004 32.01 34.63 13,535.30 2005 34.63 35.47 16,936.73 2006 35.47 40.08 6,983.96 2007 40.08 41.27 6,777.79 2008 41.27 25.41 8,534.13 2009 25.41 31.40 5,553.16 2010 31.40 35.27 4,775.23 2011 35.27 35.17 4,498.23 2012 35.17 39.83 3,928.91 MFS(R) Research International Investment Division (Class E)....................................... 2003 7.21 9.34 0.00 2004 9.34 10.95 0.00 2005 10.95 12.51 1,850.40 2006 12.51 15.55 2,305.10 2007 15.55 17.28 1,960.95 2008 17.28 9.76 1,170.14 2009 9.76 12.61 1,360.93 2010 12.61 13.79 1,506.48 2011 13.79 12.08 1,223.80 2012 12.08 13.83 709.06 MFS(R) Total Return Investment Division (Class E) (5/1/2004)...................................... 2004 33.19 35.95 0.00 2005 35.95 36.24 1,335.09 2006 36.24 39.77 1,335.09 2007 39.77 40.58 1,165.26 2008 40.58 30.88 1,164.61 2009 30.88 35.81 331.63 2010 35.81 38.55 1,954.75 2011 38.55 38.60 2,201.40 2012 38.60 42.11 2,148.45
150
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ MFS(R) Value Investment Division (Class E)............... 2003 $ 9.47 $11.63 4,948.30 2004 11.63 12.69 6,244.20 2005 12.69 12.25 8,161.31 2006 12.25 14.16 6,599.62 2007 14.16 13.33 4,612.17 2008 13.33 8.67 3,059.27 2009 8.67 10.26 2,212.96 2010 10.26 11.19 2,148.66 2011 11.19 11.06 2,080.16 2012 11.06 12.61 2,017.98 MLA Mid Cap Investment Division (formerly Lazard Mid Cap Investment Division) (Class E).............................................. 2003 9.60 11.89 0.00 2004 11.89 13.34 267.45 2005 13.34 14.16 266.14 2006 14.16 15.92 1,587.63 2007 15.92 15.19 323.41 2008 15.19 9.20 0.00 2009 9.20 12.34 0.00 2010 12.34 14.89 3.57 2011 14.89 13.82 0.00 2012 13.82 14.29 0.00 MSCI EAFE(R) Index Investment Division (formerly Morgan Stanley EAFE(R) Index Investment Division) (Class E).................................... 2003 6.90 9.29 4,323.55 2004 9.29 10.87 8,964.83 2005 10.87 12.05 12,782.49 2006 12.05 14.84 6,111.42 2007 14.84 16.08 8,973.59 2008 16.08 9.11 9,647.98 2009 9.11 11.48 6,998.58 2010 11.48 12.15 6,927.68 2011 12.15 10.41 7,550.81 2012 10.41 12.06 7,381.34 Morgan Stanley Mid Cap Growth Investment Division (Class E).............................................. 2010 12.15 14.06 601.59 2011 14.06 12.84 1,198.59 2012 12.84 13.77 592.73 Morgan Stanley Mid Cap Growth Investment Division (formerly FI Mid Cap Opportunities Investment Division (Class E))............................................. 2003 10.57 13.94 6,760.48 2004 13.94 15.99 6,680.92 2005 15.99 16.73 6,442.97 2006 16.73 18.31 1,543.32 2007 18.31 19.42 963.28 2008 19.42 8.49 1,040.72 2009 8.49 11.13 601.34 2010 11.13 12.02 0.00
151
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Neuberger Berman Genesis Investment Division (Class E)...................................... 2003 $10.66 $15.66 9,114.63 2004 15.66 17.68 10,966.08 2005 17.68 18.02 9,004.66 2006 18.02 20.60 4,338.64 2007 20.60 19.47 3,992.12 2008 19.47 11.73 3,499.68 2009 11.73 12.99 2,536.37 2010 12.99 15.46 2,433.04 2011 15.46 16.00 2,132.78 2012 16.00 17.23 2,119.93 Oppenheimer Global Equity Investment Division (Class E)...................................... 2003 9.74 12.44 547.20 2004 12.44 14.17 479.01 2005 14.17 16.13 1,697.51 2006 16.13 18.42 3,598.41 2007 18.42 19.19 1,566.24 2008 19.19 11.19 841.34 2009 11.19 15.37 299.47 2010 15.37 17.48 216.13 2011 17.48 15.70 132.72 2012 15.70 18.67 1,096.54 PIMCO Total Return Investment Division (Class E). 2003 11.13 11.40 11,880.53 2004 11.40 11.74 13,066.53 2005 11.74 11.77 13,723.33 2006 11.77 12.08 14,073.96 2007 12.08 12.74 7,295.03 2008 12.74 12.55 5,954.61 2009 12.55 14.54 7,303.67 2010 14.54 15.43 6,978.42 2011 15.43 15.63 7,043.38 2012 15.63 16.74 7,163.08 RCM Tecnology Investment Division (Class E)...... 2003 2.93 4.53 4,806.36 2004 4.53 4.24 0.00 2005 4.24 4.63 0.00 2006 4.63 4.78 967.60 2007 4.78 6.17 11,927.67 2008 6.17 3.36 12,980.75 2009 3.36 5.24 16,596.01 2010 5.24 6.58 15,705.61 2011 6.58 5.80 15,838.64 2012 5.80 6.40 12,463.63
152
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Russell 2000(R) Index Investment Division (Class E). 2003 $ 9.14 $13.08 5,896.70 2004 13.08 15.07 6,033.56 2005 15.07 15.42 4,282.04 2006 15.42 17.80 5,025.33 2007 17.80 17.15 4,341.77 2008 17.15 11.17 4,427.77 2009 11.17 13.78 4,869.68 2010 13.78 17.10 4,827.76 2011 17.10 16.06 4,735.51 2012 16.06 18.28 4,544.59 T. Rowe Price Large Cap Growth Investment Division (Class E)......................................... 2003 8.49 10.87 5,922.19 2004 10.87 11.70 5,976.83 2005 11.70 12.21 6,377.58 2006 12.21 13.52 13,757.83 2007 13.52 14.48 4,590.51 2008 14.48 8.24 4,549.59 2009 8.24 11.56 4,135.53 2010 11.56 13.25 4,117.06 2011 13.25 12.82 4,095.64 2012 12.82 14.93 5,360.35 T. Rowe Price Mid Cap Growth Investment Division (Class E)......................................... 2003 4.50 6.03 1,406.52 2004 6.03 6.98 3,021.87 2005 6.98 7.84 5,052.18 2006 7.84 8.18 7,793.61 2007 8.18 9.43 9,208.14 2008 9.43 5.58 8,145.60 2009 5.58 7.96 5,804.03 2010 7.96 9.98 5,401.41 2011 9.98 9.62 4,835.28 2012 9.62 10.74 4,886.62 T. Rowe Price Small Cap Growth Investment Division (Class E)......................................... 2003 8.42 11.61 7,404.75 2004 11.61 12.63 6,865.52 2005 12.63 13.72 6,132.62 2006 13.72 13.95 0.00 2007 13.95 14.99 0.02 2008 14.99 9.36 0.00 2009 9.36 12.74 0.00 2010 12.74 16.82 0.00 2011 16.82 16.75 0.00 2012 16.75 19.05 0.00
153
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Western Asset Management Strategic Bond Opportunities Investment Division (Class E)....................... 2003 $16.31 $17.98 2,048.81 2004 17.98 18.77 2,763.31 2005 18.77 18.89 2,903.70 2006 18.89 19.42 2,839.65 2007 19.42 19.77 1,897.30 2008 19.77 16.45 1,445.70 2009 16.45 21.28 875.31 2010 21.28 23.49 874.05 2011 23.49 24.39 867.76 2012 24.39 26.61 864.12 Western Asset Management U.S Government Investment Division (Class E).................................. 2003 14.93 14.86 12,134.34 2004 14.86 14.97 10,947.76 2005 14.97 14.91 9,359.71 2006 14.91 15.19 8,630.77 2007 15.19 15.51 2,940.96 2008 15.51 15.13 1,990.72 2009 15.13 15.45 1,405.56 2010 15.45 16.01 1,408.84 2011 16.01 16.52 1,405.06 2012 16.52 16.70 1,999.20
154 GROUP I--PREFERENCE PLUS SELECT E SHARE AND AMERICAN FUNDS(R) CLASS 2 2.05 SEPARATE ACCOUNT CHARGE
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ American Funds Bond Investment Division+ (Class 2) (5/1/2006).......................................... 2006 $ 13.79 $ 14.40 1,759.15 2007 14.40 14.55 4,011.12 2008 14.55 12.90 913.11 2009 12.90 14.21 486.51 2010 14.21 14.80 519.26 2011 14.80 15.36 0.00 2012 15.36 15.84 0.00 American Funds Global Small Capitalization Investment Division+ (Class 2)................................. 2003 10.41 15.64 16,775.79 2004 15.64 18.50 30,426.34 2005 18.50 22.68 34,820.47 2006 22.68 27.53 34,101.06 2007 27.53 32.70 29,940.68 2008 32.70 14.86 25,691.36 2009 14.86 23.46 21,891.63 2010 23.46 28.09 6,617.37 2011 28.09 22.22 0.00 2012 22.22 25.68 0.00 American Funds Growth Investment Division+ ( Class 2). 2003 73.50 98.36 6,389.17 2004 98.36 108.24 14,117.57 2005 108.24 123.04 16,703.64 2006 123.04 132.67 15,225.06 2007 132.67 145.79 12,825.58 2008 145.79 79.90 11,603.20 2009 79.90 108.96 10,154.15 2010 108.96 126.51 4,858.70 2011 126.51 118.47 0.00 2012 118.47 136.61 0.00 American Funds Growth-Income Investment Division+ (Class 2)........................................... 2003 59.09 76.55 9,674.26 2004 76.55 82.65 19,070.43 2005 82.65 85.57 19,559.27 2006 85.57 96.44 17,826.15 2007 96.44 99.09 16,481.01 2008 99.09 60.24 12,475.20 2009 60.24 77.34 10,442.52 2010 77.34 84.30 6,397.61 2011 84.30 80.96 0.00 2012 80.96 93.04 0.00
155
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Baillie Gifford International Stock Investment Division (formerly Artio International Stock Investment Division) (Class E)................................................ 2003 $ 8.63 $10.81 11,454.97 2004 10.81 12.50 16,559.61 2005 12.50 14.42 17,596.42 2006 14.42 16.43 18,029.81 2007 16.43 17.74 17,420.66 2008 17.74 9.69 15,226.83 2009 9.69 11.58 11,193.09 2010 11.58 12.15 5,579.74 2011 12.15 9.52 0.00 2012 9.52 11.14 0.00 Barclays Capital Aggregate Bond Index Investment Division (Class E)................................................ 2003 12.04 12.21 72,902.20 2004 12.21 12.43 158,947.43 2005 12.43 12.43 161,502.74 2006 12.43 12.65 131,133.81 2007 12.65 13.22 117,402.13 2008 13.22 13.70 84,972.46 2009 13.70 14.11 73,906.58 2010 14.11 14.63 40,983.69 2011 14.63 15.39 0.00 2012 15.39 15.63 0.00 BlackRock Aggressive Growth Investment Division (Class E)................................................ 2003 22.37 30.81 946.24 2004 30.81 34.05 2,528.84 2005 34.05 36.88 2,565.80 2006 36.88 38.49 2,212.90 2007 38.49 45.39 1,078.40 2008 45.39 24.11 2,045.11 2009 24.11 35.24 2,250.44 2010 35.24 39.77 556.97 2011 39.77 37.72 0.00 2012 37.72 40.95 0.00 BlackRock Bond Income Investment Division (Class E)........ 2003 39.61 41.01 5,899.26 2004 41.01 41.90 10,100.19 2005 41.90 41.97 10,478.11 2006 41.97 42.88 9,289.85 2007 42.88 44.58 8,311.80 2008 44.58 42.11 6,185.73 2009 42.11 45.09 4,787.53 2010 45.09 47.79 2,405.75 2011 47.79 49.83 0.00 2012 49.83 52.42 0.00
156
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ BlackRock Diversified Investment Division (Class E)..... 2003 $27.61 $32.57 6,200.87 2004 32.57 34.55 18,503.74 2005 34.55 34.85 15,215.56 2006 34.85 37.67 13,432.11 2007 37.67 39.00 7,882.89 2008 39.00 28.71 6,626.97 2009 28.71 32.94 4,070.58 2010 32.94 35.33 859.71 2011 35.33 35.88 0.00 2012 35.88 39.43 0.00 BlackRock Large Cap Core Investment Division* (Class E). 2007 68.47 68.81 3,112.34 2008 68.81 42.30 3,108.24 2009 42.30 49.44 1,993.67 2010 49.44 54.57 291.86 2011 54.57 53.62 0.00 2012 53.62 59.67 0.00 BlackRock Large Cap Investment Division (Class E)....... 2003 42.19 53.76 3,140.54 2004 53.76 58.31 5,096.14 2005 58.31 59.10 4,091.70 2006 59.10 65.96 3,495.34 2007 65.96 69.05 0.00 BlackRock Large Cap Value Investment Division (Class E). 2003 7.88 10.46 10,667.48 2004 10.46 11.61 21,585.44 2005 11.61 12.03 13,049.74 2006 12.03 14.05 17,639.68 2007 14.05 14.21 15,941.12 2008 14.21 9.04 13,875.88 2009 9.04 9.85 8,758.90 2010 9.85 10.52 2,698.08 2011 10.52 10.52 0.00 2012 10.52 11.77 0.00 BlackRock Money Market Investment Division (Class E) (5/1/2003)............................................ 2003 19.89 19.70 0.00 2004 19.70 19.46 0.00 2005 19.46 19.59 0.00 2006 19.59 20.08 0.00 2007 20.08 20.64 0.00 2008 20.64 20.77 421.35 2009 20.77 20.41 0.00 2010 20.41 20.00 2.71 2011 20.00 19.59 0.00 2012 19.59 19.19 0.00
157
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Davis Venture Value Investment Division (Class E)...... 2003 $20.63 $26.43 6,186.28 2004 26.43 29.04 13,120.19 2005 29.04 31.33 18,047.50 2006 31.33 35.12 18,323.79 2007 35.12 35.93 13,964.61 2008 35.93 21.31 13,326.93 2009 21.31 27.52 10,702.80 2010 27.52 30.15 5,191.58 2011 30.15 28.30 0.00 2012 28.30 31.25 0.00 FI Value Leaders Investment Division (Class E)......... 2003 17.57 21.82 4,523.45 2004 21.82 24.27 4,576.80 2005 24.27 26.29 4,339.46 2006 26.29 28.79 3,677.65 2007 28.79 29.34 3,268.05 2008 29.34 17.52 3,234.18 2009 17.52 20.88 2,541.59 2010 20.88 23.41 98.78 2011 23.41 21.49 0.00 2012 21.49 24.33 0.00 Harris Oakmark International Investment Division (Class E)............................................ 2003 8.76 11.60 3,053.84 2004 11.60 13.72 21,258.69 2005 13.72 15.36 24,082.47 2006 15.36 19.42 26,720.08 2007 19.42 18.83 23,252.85 2008 18.83 10.91 17,369.31 2009 10.91 16.60 15,916.57 2010 16.60 18.95 7,917.89 2011 18.95 15.94 0.00 2012 15.94 20.19 0.00 Invesco Small Cap Growth Investment Division (Class E). 2003 8.42 11.47 6,064.52 2004 11.47 11.97 7,458.88 2005 11.97 12.73 7,774.97 2006 12.73 14.25 8,133.40 2007 14.25 15.52 7,169.44 2008 15.52 9.32 6,872.83 2009 9.32 12.23 5,856.87 2010 12.23 15.13 1,009.24 2011 15.13 14.68 0.00 2012 14.68 17.02 0.00 Jennison Growth Investment Division (Class E).......... 2005 3.94 4.72 16,459.10 2006 4.72 4.74 15,421.62 2007 4.74 5.18 14,780.85 2008 5.18 3.22 14,382.35 2009 3.22 4.41 13,149.15 2010 4.41 4.82 14,622.71 2011 4.82 4.73 0.00 2012 4.73 5.36 0.00
158
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Jennison Growth Investment Division (Class E) (formerly Met/Putnam Voyager Investment Division)....... 2003 $ 3.38 $ 4.17 2,937.16 2004 4.17 4.27 4,490.98 2005 4.27 3.90 5,560.76 Legg Mason ClearBridge Aggressive Growth Investment Division (Class E)...................................... 2003 5.49 6.66 6,543.28 2004 6.66 7.08 15,505.51 2005 7.08 7.89 18,967.44 2006 7.89 7.61 14,001.46 2007 7.61 7.63 4,348.02 2008 7.63 4.55 3,775.02 2009 4.55 5.95 2,576.19 2010 5.95 7.21 250.01 2011 7.21 7.31 0.00 2012 7.31 8.49 0.00 Legg Mason ClearBridge Aggressive Growth Investment Division (Class E)...................................... 2006 9.01 9.62 6,914.22 2007 9.62 8.87 7,400.63 2008 8.87 3.95 6,477.10 2009 3.95 5.34 6,597.44 2010 5.34 5.61 3,143.87 2011 5.61 5.96 0.00 Legg Mason Partners Aggressive Growth Investment Division (formerly Janus Growth Investment Division) (Class E)... 2003 5.23 5.49 0.00 Legg Mason Value Equity Investment Division (Class E) (formerly MFS(R) Investors Trust Investment Division)... 2003 6.37 7.58 3,811.63 2004 7.58 8.26 12,754.47 2005 8.26 8.67 11,770.84 2006 8.67 9.05 11,558.87 Loomis Sayles Small Cap Core Investment Division (Class E)............................................... 2003 16.40 21.90 1,344.68 2004 21.90 24.94 5,344.54 2005 24.94 26.09 6,094.25 2006 26.09 29.78 5,528.92 2007 29.78 32.59 6,356.66 2008 32.59 20.44 5,773.22 2009 20.44 26.04 5,418.19 2010 26.04 32.49 3,407.33 2011 32.49 31.97 0.00 2012 31.97 35.82 0.00
159
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Loomis Sayles Small Cap Growth Investment Division (Class E)............................................. 2003 $ 6.19 $ 8.77 7,350.39 2004 8.77 9.56 13,156.44 2005 9.56 9.78 12,017.98 2006 9.78 10.53 6,269.96 2007 10.53 10.78 10,007.88 2008 10.78 6.19 6,815.10 2009 6.19 7.88 6,072.69 2010 7.88 10.15 2,324.49 2011 10.15 10.24 0.00 2012 10.24 11.13 0.00 Lord Abbett Bond Debenture Investment Division (Class E)............................................. 2003 10.08 11.79 17,930.18 2004 11.79 12.51 32,383.49 2005 12.51 12.45 43,806.60 2006 12.45 13.32 35,902.95 2007 13.32 13.92 34,755.54 2008 13.92 11.11 26,292.07 2009 11.11 14.90 22,626.81 2010 14.90 16.50 9,918.51 2011 16.50 16.93 0.00 2012 16.93 18.74 0.00 Lord Abbett Mid Cap Value Investment Division (Class E). 2012 23.57 24.14 0.00 Lord Abbett Mid Cap Value Investment Division (Class E) (formerly Neuberger Berman Mid Cap Value Investment Division (Class E))................................... 2003 13.05 17.44 13,645.77 2004 17.44 20.98 31,330.35 2005 20.98 23.04 41,729.59 2006 23.04 25.12 34,244.57 2007 25.12 25.41 30,551.39 2008 25.41 13.09 26,392.39 2009 13.09 18.97 20,598.32 2010 18.97 23.44 10,061.51 2011 23.44 21.46 0.00 2012 21.46 23.69 0.00 Met/Artisan Mid Cap Value Investment Division (Class E). 2003 22.14 28.74 21,287.58 2004 28.74 30.90 29,265.97 2005 30.90 33.25 20,727.49 2006 33.25 36.58 19,109.45 2007 36.58 33.33 13,357.82 2008 33.33 17.60 11,095.92 2009 17.60 24.38 8,164.61 2010 24.38 27.43 4,015.95 2011 27.43 28.65 0.00 2012 28.65 31.35 0.00
160
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ MetLife Mid Cap Stock Index Investment Division (Class E)....................................... 2003 $ 8.51 $11.23 28,532.57 2004 11.23 12.75 38,041.21 2005 12.75 14.01 37,300.09 2006 14.01 15.08 33,019.99 2007 15.08 15.91 31,999.31 2008 15.91 9.92 30,798.99 2009 9.92 13.31 23,573.20 2010 13.31 16.44 7,840.20 2011 16.44 15.77 0.00 2012 15.77 18.15 0.00 MetLife Stock Index Investment Division (Class E). 2003 25.35 31.79 30,217.02 2004 31.79 34.38 73,448.51 2005 34.38 35.19 69,827.10 2006 35.19 39.75 61,988.76 2007 39.75 40.91 54,276.91 2008 40.91 25.18 63,649.23 2009 25.18 31.09 52,880.33 2010 31.09 34.91 19,512.41 2011 34.91 34.79 0.00 2012 34.79 39.38 0.00 MFS(R) Research International Investment Division (Class E)....................................... 2003 7.20 9.32 1,979.38 2004 9.32 10.93 12,025.30 2005 10.93 12.48 12,077.86 2006 12.48 15.50 19,641.53 2007 15.50 17.22 16,991.12 2008 17.22 9.73 17,505.54 2009 9.73 12.55 14,030.82 2010 12.55 13.72 6,923.71 2011 13.72 12.01 0.00 2012 12.01 13.75 0.00 MFS(R) Total Return Investment Division (Class E) (5/1/2004)...................................... 2004 32.91 35.63 7,136.84 2005 35.63 35.91 15,395.59 2006 35.91 39.38 23,460.92 2007 39.38 40.16 18,778.62 2008 40.16 30.55 17,414.76 2009 30.55 35.41 13,646.39 2010 35.41 38.09 13,104.32 2011 38.09 38.13 6,109.91 2012 38.13 41.57 1,531.71
161
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ MFS(R) Value Investment Division (Class E)............... 2003 $ 9.45 $11.60 43,426.10 2004 11.60 12.65 72,171.82 2005 12.65 12.20 62,274.15 2006 12.20 14.10 54,832.27 2007 14.10 13.27 40,729.74 2008 13.27 8.63 39,162.11 2009 8.63 10.20 26,997.85 2010 10.20 11.12 15,443.13 2011 11.12 10.98 0.00 2012 10.98 12.52 0.00 MLA Mid Cap Investment Division (formerly Lazard Mid Cap Investment Division) (Class E).............................................. 2003 9.60 11.88 5,819.75 2004 11.88 13.32 14,977.19 2005 13.32 14.13 15,148.88 2006 14.13 15.88 10,845.45 2007 15.88 15.15 9,939.87 2008 15.15 9.16 9,866.77 2009 9.16 12.29 7,541.52 2010 12.29 14.82 3,231.22 2011 14.82 13.75 0.00 2012 13.75 14.21 0.00 MSCI EAFE(R) Index Investment Division (formerly Morgan Stanley EAFE(R) Index Investment Division) (Class E).................................... 2003 6.88 9.26 41,518.50 2004 9.26 10.84 61,137.96 2005 10.84 12.01 63,202.99 2006 12.01 14.78 56,268.52 2007 14.78 16.01 39,187.24 2008 16.01 9.07 47,299.31 2009 9.07 11.42 40,578.52 2010 11.42 12.08 16,189.89 2011 12.08 10.34 0.00 2012 10.34 11.97 0.00 Morgan Stanley Mid Cap Growth Investment Division (Class E).............................................. 2010 12.07 13.96 297.69 2011 13.96 12.74 0.00 2012 12.74 13.66 0.00 Morgan Stanley Mid Cap Growth Investment Division (formerly FI Mid Cap Opportunities Investment Division (Class E))............................................. 2003 10.54 13.89 6,960.03 2004 13.89 15.92 19,548.68 2005 15.92 16.65 15,728.68 2006 16.65 18.22 11,089.02 2007 18.22 19.31 8,936.39 2008 19.31 8.44 9,390.19 2009 8.44 11.06 7,474.71 2010 11.06 11.94 0.00
162
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Neuberger Berman Genesis Investment Division (Class E).. 2003 $10.64 $15.64 43,034.38 2004 15.64 17.64 71,032.85 2005 17.64 17.97 50,710.59 2006 17.97 20.54 43,703.23 2007 20.54 19.40 36,659.90 2008 19.40 11.68 30,468.17 2009 11.68 12.93 23,964.81 2010 12.93 15.38 12,791.87 2011 15.38 15.91 0.00 2012 15.91 17.13 0.00 Oppenheimer Global Equity Investment Division (Class E). 2003 9.71 12.40 6,218.44 2004 12.40 14.11 7,270.26 2005 14.11 16.05 8,032.88 2006 16.05 18.33 11,839.54 2007 18.33 19.09 12,911.41 2008 19.09 11.12 8,464.42 2009 11.12 15.27 7,597.93 2010 15.27 17.36 1,964.86 2011 17.36 15.58 0.00 2012 15.58 18.53 0.00 PIMCO Total Return Investment Division (Class E)........ 2003 11.12 11.38 42,041.49 2004 11.38 11.71 69,468.80 2005 11.71 11.74 69,472.37 2006 11.74 12.04 53,389.96 2007 12.04 12.70 46,714.62 2008 12.70 12.50 47,521.91 2009 12.50 14.48 41,748.11 2010 14.48 15.35 17,163.22 2011 15.35 15.55 0.00 2012 15.55 16.64 0.00 RCM Tecnology Investment Division (Class E)............. 2003 2.93 4.52 16,470.19 2004 4.52 4.24 25,235.36 2005 4.24 4.62 23,055.61 2006 4.62 4.76 23,879.75 2007 4.76 6.15 27,660.66 2008 6.15 3.34 20,768.29 2009 3.34 5.22 25,904.51 2010 5.22 6.54 2,084.77 2011 6.54 5.77 0.00 2012 5.77 6.36 0.00
163
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Russell 2000(R) Index Investment Division (Class E). 2003 $ 9.12 $13.05 18,134.60 2004 13.05 15.02 22,943.99 2005 15.02 15.37 24,348.97 2006 15.37 17.73 20,302.64 2007 17.73 17.08 18,505.25 2008 17.08 11.11 16,846.57 2009 11.11 13.70 14,197.37 2010 13.70 17.00 2,869.68 2011 17.00 15.96 0.00 2012 15.96 18.15 0.00 T. Rowe Price Large Cap Growth Investment Division (Class E)......................................... 2003 8.48 10.85 9,688.32 2004 10.85 11.67 32,111.08 2005 11.67 12.17 35,475.58 2006 12.17 13.47 28,560.03 2007 13.47 14.41 22,443.34 2008 14.41 8.19 24,477.95 2009 8.19 11.50 21,138.09 2010 11.50 13.17 13,585.00 2011 13.17 12.74 0.00 2012 12.74 14.83 0.00 T. Rowe Price Mid Cap Growth Investment Division (Class E)......................................... 2003 4.50 6.03 9,236.60 2004 6.03 6.97 26,237.17 2005 6.97 7.82 29,419.65 2006 7.82 8.15 26,524.56 2007 8.15 9.40 32,626.69 2008 9.40 5.56 20,964.65 2009 5.56 7.92 16,574.88 2010 7.92 9.93 5,136.15 2011 9.93 9.57 0.00 2012 9.57 10.67 0.00 T. Rowe Price Small Cap Growth Investment Division (Class E)......................................... 2003 8.39 11.57 10,808.52 2004 11.57 12.58 16,662.14 2005 12.58 13.66 24,267.01 2006 13.66 13.88 17,450.92 2007 13.88 14.91 11,153.55 2008 14.91 9.31 11,310.17 2009 9.31 12.66 10,036.35 2010 12.66 16.71 3,892.18 2011 16.71 16.62 0.00 2012 16.62 18.90 0.00
164
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Western Asset Management Strategic Bond Opportunities Investment Division (Class E)....................... 2003 $16.24 $17.90 11,180.64 2004 17.90 18.67 27,480.68 2005 18.67 18.78 41,144.40 2006 18.78 19.30 30,220.02 2007 19.30 19.64 23,530.39 2008 19.64 16.33 14,046.58 2009 16.33 21.12 10,882.11 2010 21.12 23.30 3,318.58 2011 23.30 24.18 0.00 2012 24.18 26.37 0.00 Western Asset Management U.S Government Investment Division (Class E).................................. 2003 14.86 14.79 26,001.20 2004 14.79 14.89 35,202.78 2005 14.89 14.82 34,141.09 2006 14.82 15.10 18,053.27 2007 15.10 15.40 24,949.51 2008 15.40 15.03 12,198.41 2009 15.03 15.34 7,329.65 2010 15.34 15.88 3,422.44 2011 15.88 16.38 0.00 2012 16.38 16.55 0.00
165 GROUP I--PREFERENCE PLUS SELECT E SHARE AND AMERICAN FUNDS(R) CLASS 2 2.10 SEPARATE ACCOUNT CHARGE
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ American Funds Bond Investment Division+ (Class 2) (5/1/2006).......................................... 2006 $ 13.73 $ 14.33 0.00 2007 14.33 14.47 0.00 2008 14.47 12.83 0.00 2009 12.83 14.12 0.00 2010 14.12 14.70 0.00 2011 14.70 15.25 0.00 2012 15.25 15.71 0.00 American Funds Global Small Capitalization Investment Division+ (Class 2)................................. 2003 10.39 15.60 0.00 2004 15.60 18.44 3,983.48 2005 18.44 22.60 1,531.76 2006 22.60 27.41 580.64 2007 27.41 32.54 2,094.91 2008 32.54 14.78 449.44 2009 14.78 23.32 371.54 2010 23.32 27.91 331.55 2011 27.91 22.07 382.89 2012 22.07 25.50 374.75 American Funds Growth Investment Division+ ( Class 2). 2003 72.84 97.44 0.00 2004 97.44 107.17 716.00 2005 107.17 121.76 366.58 2006 121.76 131.22 383.54 2007 131.22 144.13 181.86 2008 144.13 78.95 53.98 2009 78.95 107.61 52.06 2010 107.61 124.88 51.32 2011 124.88 116.88 52.53 2012 116.88 134.71 51.54 American Funds Growth-Income Investment Division+ (Class 2)........................................... 2003 58.56 75.83 0.00 2004 75.83 81.83 2,731.57 2005 81.83 84.68 2,592.29 2006 84.68 95.39 2,650.19 2007 95.39 97.96 2,551.11 2008 97.96 59.52 2,823.48 2009 59.52 76.38 2,818.47 2010 76.38 83.21 2,798.11 2011 83.21 79.88 3,144.00 2012 79.88 91.74 3,114.06
166
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Baillie Gifford International Stock Investment Division (formerly Artio International Stock Investment Division) (Class E)................................................ 2003 $ 8.57 $10.74 3.09 2004 10.74 12.41 2,251.97 2005 12.41 14.32 0.00 2006 14.32 16.30 0.00 2007 16.30 17.59 392.71 2008 17.59 9.61 2,297.01 2009 9.61 11.48 391.13 2010 11.48 12.03 394.22 2011 12.03 9.43 390.38 2012 9.43 11.02 390.01 Barclays Capital Aggregate Bond Index Investment Division (Class E)................................................ 2003 12.02 12.18 4,456.90 2004 12.18 12.40 17,769.39 2005 12.40 12.38 12,342.43 2006 12.38 12.60 10,119.40 2007 12.60 13.16 7,172.78 2008 13.16 13.63 5,298.27 2009 13.63 14.03 5,693.30 2010 14.03 14.54 5,943.04 2011 14.54 15.29 4,961.74 2012 15.29 15.52 5,364.19 BlackRock Aggressive Growth Investment Division (Class E)................................................ 2003 22.21 30.57 0.00 2004 30.57 33.76 0.00 2005 33.76 36.55 0.00 2006 36.55 38.13 0.00 2007 38.13 44.95 0.00 2008 44.95 23.86 0.00 2009 23.86 34.86 0.00 2010 34.86 39.32 0.00 2011 39.32 37.28 0.00 2012 37.28 40.45 0.00 BlackRock Bond Income Investment Division (Class E)........ 2003 39.22 40.59 0.00 2004 40.59 41.45 4,339.89 2005 41.45 41.50 3,421.54 2006 41.50 42.38 3,421.55 2007 42.38 44.03 3,422.82 2008 44.03 41.58 3,760.89 2009 41.58 44.50 3,760.89 2010 44.50 47.14 3,762.48 2011 47.14 49.12 4,309.53 2012 49.12 51.65 4,309.53
167
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ BlackRock Diversified Investment Division (Class E)..... 2003 $27.38 $32.28 1,614.10 2004 32.28 34.23 22.49 2005 34.23 34.51 0.00 2006 34.51 37.28 0.00 2007 37.28 38.59 0.00 2008 38.59 28.38 0.00 2009 28.38 32.56 0.00 2010 32.56 34.90 0.00 2011 34.90 35.43 0.00 2012 35.43 38.91 0.00 BlackRock Large Cap Core Investment Division* (Class E). 2007 67.66 67.97 153.18 2008 67.97 41.76 152.77 2009 41.76 48.78 152.59 2010 48.78 53.82 152.65 2011 53.82 52.86 152.28 2012 52.86 58.79 152.14 BlackRock Large Cap Investment Division (Class E)....... 2003 41.78 53.21 0.00 2004 53.21 57.68 0.00 2005 57.68 58.43 0.00 2006 58.43 65.19 0.00 2007 65.19 68.23 0.00 BlackRock Large Cap Value Investment Division (Class E). 2003 7.88 10.45 0.00 2004 10.45 11.60 0.00 2005 11.60 12.01 0.00 2006 12.01 14.02 2,304.95 2007 14.02 14.17 0.00 2008 14.17 9.01 0.00 2009 9.01 9.81 0.00 2010 9.81 10.47 0.00 2011 10.47 10.47 0.00 2012 10.47 11.71 0.00 BlackRock Money Market Investment Division (Class E) (5/1/2003)............................................ 2003 19.70 19.50 10,309.05 2004 19.50 19.25 6,499.08 2005 19.25 19.37 0.00 2006 19.37 19.85 0.00 2007 19.85 20.39 0.00 2008 20.39 20.51 0.00 2009 20.51 20.14 0.00 2010 20.14 19.72 0.00 2011 19.72 19.31 0.00 2012 19.31 18.91 0.00
168
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Davis Venture Value Investment Division (Class E)...... 2003 $20.55 $26.31 0.00 2004 26.31 28.89 838.36 2005 28.89 31.16 242.71 2006 31.16 34.91 847.27 2007 34.91 35.69 96.69 2008 35.69 21.16 96.43 2009 21.16 27.31 96.30 2010 27.31 29.91 98.34 2011 29.91 28.06 96.12 2012 28.06 30.97 96.03 FI Value Leaders Investment Division (Class E)......... 2003 17.49 21.70 0.00 2004 21.70 24.13 0.00 2005 24.13 26.12 0.00 2006 26.12 28.59 0.00 2007 28.59 29.13 0.00 2008 29.13 17.38 0.00 2009 17.38 20.71 0.00 2010 20.71 23.20 0.00 2011 23.20 21.29 0.00 2012 21.29 24.09 0.00 Harris Oakmark International Investment Division (Class E)............................................ 2003 8.76 11.59 5.64 2004 11.59 13.70 1,324.92 2005 13.70 15.33 1,413.33 2006 15.33 19.37 1,460.31 2007 19.37 18.77 0.00 2008 18.77 10.87 0.00 2009 10.87 16.53 0.00 2010 16.53 18.86 0.00 2011 18.86 15.86 0.00 2012 15.86 20.08 0.00 Invesco Small Cap Growth Investment Division (Class E). 2003 8.41 11.46 0.00 2004 11.46 11.96 0.00 2005 11.96 12.70 0.00 2006 12.70 14.21 0.00 2007 14.21 15.47 0.00 2008 15.47 9.28 0.00 2009 9.28 12.18 0.00 2010 12.18 15.06 0.00 2011 15.06 14.61 0.00 2012 14.61 16.92 0.00 Jennison Growth Investment Division (Class E).......... 2005 3.93 4.70 0.00 2006 4.70 4.72 0.00 2007 4.72 5.16 0.00 2008 5.16 3.20 0.00 2009 3.20 4.39 4,822.35 2010 4.39 4.79 7,584.88 2011 4.79 4.71 7,288.22 2012 4.71 5.33 7,079.69
169
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Jennison Growth Investment Division (Class E) (formerly Met/Putnam Voyager Investment Division)....... 2003 $ 3.38 $ 4.16 0.00 2004 4.16 4.26 0.00 2005 4.26 3.89 0.00 Legg Mason ClearBridge Aggressive Growth Investment Division (Class E)...................................... 2003 5.48 6.65 0.00 2004 6.65 7.07 1,156.46 2005 7.07 7.87 0.00 2006 7.87 7.59 0.00 2007 7.59 7.60 0.00 2008 7.60 4.54 0.00 2009 4.54 5.92 0.00 2010 5.92 7.18 0.00 2011 7.18 7.27 0.00 2012 7.27 8.44 0.00 Legg Mason ClearBridge Aggressive Growth Investment Division (Class E)...................................... 2006 8.98 9.58 0.00 2007 9.58 8.84 0.00 2008 8.84 3.93 0.00 2009 3.93 5.31 0.00 2010 5.31 5.58 0.00 2011 5.58 5.92 0.00 Legg Mason Partners Aggressive Growth Investment Division (formerly Janus Growth Investment Division) (Class E)... 2003 5.23 5.48 0.00 Legg Mason Value Equity Investment Division (Class E) (formerly MFS(R) Investors Trust Investment Division)... 2003 6.35 7.56 0.00 2004 7.56 8.24 0.00 2005 8.24 8.64 0.00 2006 8.64 9.01 0.00 Loomis Sayles Small Cap Core Investment Division (Class E)............................................... 2003 16.33 21.80 0.00 2004 21.80 24.80 0.00 2005 24.80 25.94 0.00 2006 25.94 29.59 71.22 2007 29.59 32.37 484.67 2008 32.37 20.29 0.00 2009 20.29 25.84 0.00 2010 25.84 32.22 0.91 2011 32.22 31.69 0.00 2012 31.69 35.49 0.00
170
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Loomis Sayles Small Cap Growth Investment Division (Class E)............................................. 2003 $ 6.18 $ 8.76 0.00 2004 8.76 9.54 1,012.21 2005 9.54 9.76 154.87 2006 9.76 10.50 160.79 2007 10.50 10.74 161.35 2008 10.74 6.17 178.53 2009 6.17 7.85 184.72 2010 7.85 10.10 160.09 2011 10.10 10.18 151.31 2012 10.18 11.06 157.73 Lord Abbett Bond Debenture Investment Division (Class E)............................................. 2003 10.05 11.75 0.00 2004 11.75 12.46 232.34 2005 12.46 12.39 249.05 2006 12.39 13.25 413.51 2007 13.25 13.85 634.75 2008 13.85 11.05 576.84 2009 11.05 14.81 1,846.69 2010 14.81 16.39 2,799.58 2011 16.39 16.80 2,707.45 2012 16.80 18.59 2,643.19 Lord Abbett Mid Cap Value Investment Division (Class E). 2012 23.42 23.97 0.00 Lord Abbett Mid Cap Value Investment Division (Class E) (formerly Neuberger Berman Mid Cap Value Investment Division (Class E))................................... 2003 13.03 17.40 0.00 2004 17.40 20.92 1,740.56 2005 20.92 22.96 2,492.09 2006 22.96 25.02 330.38 2007 25.02 25.30 109.60 2008 25.30 13.03 0.00 2009 13.03 18.86 0.00 2010 18.86 23.30 1.56 2011 23.30 21.32 0.00 2012 21.32 23.53 0.00 Met/Artisan Mid Cap Value Investment Division (Class E). 2003 22.04 28.58 0.00 2004 28.58 30.72 4,880.56 2005 30.72 33.04 2,649.24 2006 33.04 36.33 2,876.74 2007 36.33 33.09 2,670.70 2008 33.09 17.47 2,859.29 2009 17.47 24.17 2,856.61 2010 24.17 27.19 2,856.83 2011 27.19 28.39 3,291.53 2012 28.39 31.04 3,293.30
171
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ MetLife Mid Cap Stock Index Investment Division (Class E)....................................... 2003 $ 8.50 $11.21 1,680.08 2004 11.21 12.72 2,445.94 2005 12.72 13.97 1,865.35 2006 13.97 15.03 936.27 2007 15.03 15.85 912.99 2008 15.85 9.88 889.13 2009 9.88 13.25 785.91 2010 13.25 16.36 691.51 2011 16.36 15.68 654.02 2012 15.68 18.04 580.23 MetLife Stock Index Investment Division (Class E). 2003 25.19 31.57 1,806.59 2004 31.57 34.12 5,179.98 2005 34.12 34.92 4,884.04 2006 34.92 39.42 2,727.04 2007 39.42 40.55 2,578.95 2008 40.55 24.94 3,143.15 2009 24.94 30.79 3,069.05 2010 30.79 34.55 3,118.04 2011 34.55 34.41 2,736.41 2012 34.41 38.93 2,465.56 MFS(R) Research International Investment Division (Class E)....................................... 2003 7.21 9.33 3.56 2004 9.33 10.93 0.00 2005 10.93 12.47 0.00 2006 12.47 15.48 852.01 2007 15.48 17.19 0.00 2008 17.19 9.70 1,330.87 2009 9.70 12.52 0.00 2010 12.52 13.67 2.80 2011 13.67 11.97 0.00 2012 11.97 13.69 0.00 MFS(R) Total Return Investment Division (Class E) (5/1/2004)...................................... 2004 32.63 35.32 35.99 2005 35.32 35.57 109.42 2006 35.57 38.99 0.00 2007 38.99 39.75 0.00 2008 39.75 30.22 0.00 2009 30.22 35.01 0.00 2010 35.01 37.64 0.00 2011 37.64 37.66 0.00 2012 37.66 41.04 0.00
172
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ MFS(R) Value Investment Division (Class E)............... 2003 $ 9.43 $11.57 0.00 2004 11.57 12.61 5,382.22 2005 12.61 12.16 3,600.08 2006 12.16 14.04 548.12 2007 14.04 13.21 711.47 2008 13.21 8.59 3,088.72 2009 8.59 10.15 550.97 2010 10.15 11.05 587.12 2011 11.05 10.91 571.09 2012 10.91 12.44 552.17 MLA Mid Cap Investment Division (formerly Lazard Mid Cap Investment Division) (Class E).............................................. 2003 9.59 11.87 0.00 2004 11.87 13.30 1,453.21 2005 13.30 14.10 1,413.09 2006 14.10 15.84 1,338.61 2007 15.84 15.10 1,351.21 2008 15.10 9.13 1,760.51 2009 9.13 12.24 1,669.80 2010 12.24 14.75 1,491.98 2011 14.75 13.68 1,535.95 2012 13.68 14.13 1,567.06 MSCI EAFE(R) Index Investment Division (formerly Morgan Stanley EAFE(R) Index Investment Division) (Class E).................................... 2003 6.87 9.24 3,189.32 2004 9.24 10.81 9,188.40 2005 10.81 11.96 8,970.87 2006 11.96 14.72 6,928.56 2007 14.72 15.93 6,816.87 2008 15.93 9.02 7,643.34 2009 9.02 11.35 7,523.15 2010 11.35 12.01 7,602.23 2011 12.01 10.28 8,378.18 2012 10.28 11.89 8,236.76 Morgan Stanley Mid Cap Growth Investment Division (Class E).............................................. 2010 11.99 13.87 2,619.59 2011 13.87 12.65 2,516.78 2012 12.65 13.55 2,444.77 Morgan Stanley Mid Cap Growth Investment Division (formerly FI Mid Cap Opportunities Investment Division (Class E))............................................. 2003 10.51 13.85 0.00 2004 13.85 15.86 0.00 2005 15.86 16.58 0.00 2006 16.58 18.13 0.00 2007 18.13 19.21 0.00 2008 19.21 8.39 692.22 2009 8.39 10.99 1,839.07 2010 10.99 11.86 0.00
173
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Neuberger Berman Genesis Investment Division (Class E).. 2003 $10.63 $15.61 0.00 2004 15.61 17.60 0.00 2005 17.60 17.92 800.60 2006 17.92 20.47 652.42 2007 20.47 19.32 677.49 2008 19.32 11.63 673.12 2009 11.63 12.87 772.94 2010 12.87 15.30 742.58 2011 15.30 15.82 667.82 2012 15.82 17.02 657.08 Oppenheimer Global Equity Investment Division (Class E). 2003 9.68 12.36 0.00 2004 12.36 14.06 0.00 2005 14.06 15.98 0.00 2006 15.98 18.24 0.00 2007 18.24 18.98 0.00 2008 18.98 11.06 0.00 2009 11.06 15.17 0.00 2010 15.17 17.24 0.00 2011 17.24 15.47 0.00 2012 15.47 18.38 0.00 PIMCO Total Return Investment Division (Class E)........ 2003 11.11 11.37 0.00 2004 11.37 11.69 16,904.50 2005 11.69 11.72 10,819.18 2006 11.72 12.01 5,889.24 2007 12.01 12.66 12,817.39 2008 12.66 12.45 4,200.08 2009 12.45 14.41 7,586.50 2010 14.41 15.28 9,708.47 2011 15.28 15.46 9,562.63 2012 15.46 16.54 9,391.92 RCM Tecnology Investment Division (Class E)............. 2003 2.93 4.51 0.00 2004 4.51 4.23 55,505.31 2005 4.23 4.61 441.09 2006 4.61 4.75 0.00 2007 4.75 6.13 3,322.48 2008 6.13 3.33 0.00 2009 3.33 5.20 4,697.26 2010 5.20 6.51 3,884.17 2011 6.51 5.74 3,730.54 2012 5.74 6.32 3,623.80
174
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Russell 2000(R) Index Investment Division (Class E). 2003 $ 9.10 $13.02 724.48 2004 13.02 14.98 4,707.88 2005 14.98 15.31 4,486.20 2006 15.31 17.65 3,938.41 2007 17.65 17.00 3,733.40 2008 17.00 11.05 3,891.81 2009 11.05 13.62 3,891.82 2010 13.62 16.89 3,892.11 2011 16.89 15.85 4,383.54 2012 15.85 18.02 4,383.54 T. Rowe Price Large Cap Growth Investment Division (Class E)......................................... 2003 8.46 10.82 0.00 2004 10.82 11.63 0.00 2005 11.63 12.12 0.00 2006 12.12 13.41 0.00 2007 13.41 14.35 240.96 2008 14.35 8.15 240.30 2009 8.15 11.43 239.97 2010 11.43 13.09 244.68 2011 13.09 12.65 239.53 2012 12.65 14.72 239.30 T. Rowe Price Mid Cap Growth Investment Division (Class E)......................................... 2003 4.49 6.02 0.00 2004 6.02 6.96 0.00 2005 6.96 7.80 0.00 2006 7.80 8.13 1,209.47 2007 8.13 9.36 9,234.82 2008 9.36 5.54 3,048.16 2009 5.54 7.89 0.00 2010 7.89 9.88 3.02 2011 9.88 9.52 0.00 2012 9.52 10.61 0.00 T. Rowe Price Small Cap Growth Investment Division (Class E)......................................... 2003 8.37 11.53 0.00 2004 11.53 12.53 0.00 2005 12.53 13.60 0.00 2006 13.60 13.81 0.00 2007 13.81 14.83 0.00 2008 14.83 9.25 1,567.91 2009 9.25 12.58 0.00 2010 12.58 16.59 440.26 2011 16.59 16.50 419.78 2012 16.50 18.75 407.77
175
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Western Asset Management Strategic Bond Opportunities Investment Division (Class E)....................... 2003 $16.18 $17.82 0.00 2004 17.82 18.58 154.95 2005 18.58 18.68 3,008.17 2006 18.68 19.18 3,832.95 2007 19.18 19.51 182.73 2008 19.51 16.22 136.88 2009 16.22 20.96 133.13 2010 20.96 23.11 136.75 2011 23.11 23.98 131.53 2012 23.98 26.13 131.04 Western Asset Management U.S Government Investment Division (Class E).................................. 2003 14.80 14.72 0.00 2004 14.72 14.82 0.00 2005 14.82 14.74 0.00 2006 14.74 15.01 0.00 2007 15.01 15.30 0.00 2008 15.30 14.92 0.00 2009 14.92 15.22 0.00 2010 15.22 15.75 0.00 2011 15.75 16.24 0.00 2012 16.24 16.40 0.00
176 GROUP I--PREFERENCE PLUS SELECT E SHARE AND AMERICAN FUNDS(R) CLASS 2 2.15 SEPARATE ACCOUNT CHARGE
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ American Funds Bond Investment Division+ (Class 2) (5/1/2006).......................................... 2006 $ 13.67 $ 14.26 1,871.50 2007 14.26 14.40 9,055.63 2008 14.40 12.75 0.00 2009 12.75 14.04 0.00 2010 14.04 14.60 107.27 2011 14.60 15.14 7,703.24 2012 15.14 15.59 0.00 American Funds Global Small Capitalization Investment Division+ (Class 2)................................. 2003 10.36 15.55 2,826.25 2004 15.55 18.37 8,233.81 2005 18.37 22.51 10,408.87 2006 22.51 27.29 10,006.16 2007 27.29 32.39 11,559.57 2008 32.39 14.71 7,460.49 2009 14.71 23.18 4,904.52 2010 23.18 27.74 4,304.56 2011 27.74 21.92 2,906.26 2012 21.92 25.31 2,573.18 American Funds Growth Investment Division+ ( Class 2). 2003 72.12 96.42 1,763.09 2004 96.42 106.00 6,382.60 2005 106.00 120.37 4,184.29 2006 120.37 129.66 4,691.87 2007 129.66 142.35 4,374.86 2008 142.35 77.93 2,860.94 2009 77.93 106.18 1,819.93 2010 106.18 123.15 1,618.60 2011 123.15 115.21 722.06 2012 115.21 132.72 734.35 American Funds Growth-Income Investment Division+ (Class 2)........................................... 2003 57.98 75.04 1,645.67 2004 75.04 80.94 3,961.92 2005 80.94 83.72 5,156.55 2006 83.72 94.26 3,541.86 2007 94.26 96.75 4,096.76 2008 96.75 58.75 2,227.45 2009 58.75 75.36 1,969.58 2010 75.36 82.06 993.77 2011 82.06 78.73 743.23 2012 78.73 90.38 1,027.89
177
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Baillie Gifford International Stock Investment Division (formerly Artio International Stock Investment Division) (Class E)................................................ 2003 $ 8.52 $10.67 27.97 2004 10.67 12.33 617.87 2005 12.33 14.21 658.04 2006 14.21 16.18 3,385.08 2007 16.18 17.45 2,235.53 2008 17.45 9.52 1,358.95 2009 9.52 11.37 1,258.27 2010 11.37 11.91 1,094.45 2011 11.91 9.33 937.89 2012 9.33 10.90 970.34 Barclays Capital Aggregate Bond Index Investment Division (Class E)................................................ 2003 11.99 12.15 6,167.36 2004 12.15 12.36 11,393.30 2005 12.36 12.34 9,533.73 2006 12.34 12.54 7,303.60 2007 12.54 13.10 9,632.61 2008 13.10 13.56 5,456.97 2009 13.56 13.95 4,213.06 2010 13.95 14.45 3,246.04 2011 14.45 15.19 2,189.21 2012 15.19 15.41 2,380.07 BlackRock Aggressive Growth Investment Division (Class E)................................................ 2003 22.04 30.33 425.58 2004 30.33 33.48 850.72 2005 33.48 36.23 858.28 2006 36.23 37.78 1,109.56 2007 37.78 44.51 1,267.17 2008 44.51 23.62 1,918.13 2009 23.62 34.48 1,725.79 2010 34.48 38.88 1,665.75 2011 38.88 36.84 201.39 2012 36.84 39.95 201.39 BlackRock Bond Income Investment Division (Class E)........ 2003 38.84 40.18 2,822.79 2004 40.18 41.01 3,346.62 2005 41.01 41.04 3,149.42 2006 41.04 41.88 1,292.51 2007 41.88 43.50 939.58 2008 43.50 41.05 883.90 2009 41.05 43.91 759.19 2010 43.91 46.50 1,075.20 2011 46.50 48.43 593.71 2012 48.43 50.89 599.55
178
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ BlackRock Diversified Investment Division (Class E)..... 2003 $27.15 $32.00 495.06 2004 32.00 33.91 2,899.19 2005 33.91 34.17 2,785.83 2006 34.17 36.90 2,581.19 2007 36.90 38.18 1,116.38 2008 38.18 28.07 1,067.03 2009 28.07 32.18 859.97 2010 32.18 34.47 706.63 2011 34.47 34.98 199.86 2012 34.98 38.40 195.27 BlackRock Large Cap Core Investment Division* (Class E). 2007 66.85 67.15 710.19 2008 67.15 41.23 569.44 2009 41.23 48.14 368.04 2010 48.14 53.09 379.78 2011 53.09 52.11 421.55 2012 52.11 57.93 421.55 BlackRock Large Cap Investment Division (Class E)....... 2003 41.38 52.67 434.96 2004 52.67 57.06 1,002.21 2005 57.06 57.78 922.91 2006 57.78 64.42 711.47 2007 64.42 67.42 0.00 BlackRock Large Cap Value Investment Division (Class E). 2003 7.88 10.44 1,990.50 2004 10.44 11.58 4,304.63 2005 11.58 11.98 3,251.04 2006 11.98 13.98 4,326.66 2007 13.98 14.13 14,281.80 2008 14.13 8.98 6,371.10 2009 8.98 9.77 2,746.48 2010 9.77 10.43 4,926.54 2011 10.43 10.42 5,564.19 2012 10.42 11.64 4,730.04 BlackRock Money Market Investment Division (Class E) (5/1/2003)............................................ 2003 19.50 19.30 0.00 2004 19.30 19.05 0.00 2005 19.05 19.15 0.00 2006 19.15 19.62 0.00 2007 19.62 20.15 0.00 2008 20.15 20.25 10,165.31 2009 20.25 19.88 8,869.92 2010 19.88 19.46 4,671.63 2011 19.46 19.04 2,983.14 2012 19.04 18.64 1,758.41
179
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Davis Venture Value Investment Division (Class E)...... 2003 $20.47 $26.19 576.86 2004 26.19 28.74 3,927.86 2005 28.74 30.99 5,199.63 2006 30.99 34.70 7,278.24 2007 34.70 35.46 4,993.46 2008 35.46 21.01 2,863.24 2009 21.01 27.11 1,655.27 2010 27.11 29.67 875.78 2011 29.67 27.82 2,807.43 2012 27.82 30.69 2,923.43 FI Value Leaders Investment Division (Class E)......... 2003 17.40 21.59 0.00 2004 21.59 23.99 1,202.31 2005 23.99 25.96 1,145.45 2006 25.96 28.39 1,455.08 2007 28.39 28.91 1,063.31 2008 28.91 17.25 95.79 2009 17.25 20.54 99.69 2010 20.54 23.00 211.15 2011 23.00 21.09 145.30 2012 21.09 23.86 143.87 Harris Oakmark International Investment Division (Class E)............................................ 2003 8.75 11.58 1,287.18 2004 11.58 13.68 3,382.58 2005 13.68 15.30 5,903.70 2006 15.30 19.31 6,915.16 2007 19.31 18.71 14,457.36 2008 18.71 10.83 4,078.42 2009 10.83 16.47 12,268.62 2010 16.47 18.78 9,590.30 2011 18.78 15.78 6,197.87 2012 15.78 19.97 6,366.57 Invesco Small Cap Growth Investment Division (Class E). 2003 8.41 11.44 232.04 2004 11.44 11.94 619.11 2005 11.94 12.67 463.28 2006 12.67 14.17 1,825.21 2007 14.17 15.42 929.08 2008 15.42 9.25 926.48 2009 9.25 12.13 936.20 2010 12.13 15.00 605.96 2011 15.00 14.53 467.19 2012 14.53 16.83 454.46 Jennison Growth Investment Division (Class E).......... 2005 3.92 4.69 613.27 2006 4.69 4.71 2,641.14 2007 4.71 5.14 1,391.48 2008 5.14 3.19 1,328.84 2009 3.19 4.37 1,325.44 2010 4.37 4.76 1,842.24 2011 4.76 4.68 1,167.99 2012 4.68 5.29 5,455.51
180
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Jennison Growth Investment Division (Class E) (formerly Met/Putnam Voyager Investment Division)....... 2003 $ 3.37 $ 4.15 630.84 2004 4.15 4.25 635.91 2005 4.25 3.88 650.49 Legg Mason ClearBridge Aggressive Growth Investment Division (Class E)...................................... 2003 5.48 6.64 402.51 2004 6.64 7.06 194.20 2005 7.06 7.86 185.19 2006 7.86 7.56 206.43 2007 7.56 7.57 214.79 2008 7.57 4.52 211.20 2009 4.52 5.89 3,355.93 2010 5.89 7.14 3,352.60 2011 7.14 7.23 2,141.72 2012 7.23 8.40 4,979.67 Legg Mason ClearBridge Aggressive Growth Investment Division (Class E)...................................... 2006 8.94 9.54 1,202.39 2007 9.54 8.80 1,226.92 2008 8.80 3.91 447.74 2009 3.91 5.28 939.37 2010 5.28 5.55 755.44 2011 5.55 5.88 0.00 Legg Mason Partners Aggressive Growth Investment Division (formerly Janus Growth Investment Division) (Class E)... 2003 5.22 5.48 0.00 Legg Mason Value Equity Investment Division (Class E) (formerly MFS(R) Investors Trust Investment Division)... 2003 6.34 7.54 207.67 2004 7.54 8.21 1,207.29 2005 8.21 8.61 1,358.85 2006 8.61 8.98 1,366.05 Loomis Sayles Small Cap Core Investment Division (Class E)............................................... 2003 16.26 21.69 505.85 2004 21.69 24.67 676.53 2005 24.67 25.78 178.26 2006 25.78 29.40 1,029.23 2007 29.40 32.15 5,498.37 2008 32.15 20.14 252.44 2009 20.14 25.63 265.25 2010 25.63 31.95 99.97 2011 31.95 31.41 978.96 2012 31.41 35.16 978.93
181
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Loomis Sayles Small Cap Growth Investment Division (Class E)............................................. 2003 $ 6.18 $ 8.75 1,312.42 2004 8.75 9.52 1,147.74 2005 9.52 9.74 1,355.21 2006 9.74 10.47 2,171.96 2007 10.47 10.71 149.87 2008 10.71 6.14 159.57 2009 6.14 7.82 2,321.72 2010 7.82 10.05 2,692.44 2011 10.05 10.13 0.00 2012 10.13 11.00 0.00 Lord Abbett Bond Debenture Investment Division (Class E)............................................. 2003 10.02 11.71 859.65 2004 11.71 12.41 4,690.20 2005 12.41 12.34 5,496.81 2006 12.34 13.19 5,721.09 2007 13.19 13.77 5,300.95 2008 13.77 10.98 3,116.93 2009 10.98 14.71 3,797.20 2010 14.71 16.28 3,816.53 2011 16.28 16.68 5,048.88 2012 16.68 18.45 5,658.47 Lord Abbett Mid Cap Value Investment Division (Class E). 2012 23.26 23.80 2,702.83 Lord Abbett Mid Cap Value Investment Division (Class E) (formerly Neuberger Berman Mid Cap Value Investment Division (Class E))................................... 2003 13.00 17.35 2,461.55 2004 17.35 20.85 6,286.78 2005 20.85 22.88 11,425.30 2006 22.88 24.92 10,992.12 2007 24.92 25.18 7,516.64 2008 25.18 12.96 5,753.49 2009 12.96 18.76 6,165.22 2010 18.76 23.16 4,297.86 2011 23.16 21.18 2,937.32 2012 21.18 23.37 0.00 Met/Artisan Mid Cap Value Investment Division (Class E). 2003 21.93 28.43 1,495.33 2004 28.43 30.54 12,861.04 2005 30.54 32.83 5,019.92 2006 32.83 36.08 3,241.62 2007 36.08 32.84 1,616.86 2008 32.84 17.33 1,172.66 2009 17.33 23.97 1,187.07 2010 23.97 26.95 472.44 2011 26.95 28.12 0.00 2012 28.12 30.74 0.00
182
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ MetLife Mid Cap Stock Index Investment Division (Class E)....................................... 2003 $ 8.48 $11.19 8,534.44 2004 11.19 12.70 9,894.38 2005 12.70 13.94 8,547.95 2006 13.94 14.99 7,069.68 2007 14.99 15.79 7,671.38 2008 15.79 9.84 7,219.81 2009 9.84 13.19 3,555.39 2010 13.19 16.27 2,321.55 2011 16.27 15.59 1,123.38 2012 15.59 17.92 1,191.99 MetLife Stock Index Investment Division (Class E). 2003 25.03 31.36 4,508.64 2004 31.36 33.88 9,215.95 2005 33.88 34.65 9,114.63 2006 34.65 39.09 8,751.17 2007 39.09 40.19 5,957.13 2008 40.19 24.71 5,008.81 2009 24.71 30.49 4,591.51 2010 30.49 34.20 2,907.14 2011 34.20 34.04 1,460.55 2012 34.04 38.50 2,412.23 MFS(R) Research International Investment Division (Class E)....................................... 2003 7.19 9.30 0.00 2004 9.30 10.89 1,890.90 2005 10.89 12.42 2,132.40 2006 12.42 15.41 4,003.04 2007 15.41 17.10 4,210.59 2008 17.10 9.65 9,843.48 2009 9.65 12.44 2,265.59 2010 12.44 13.58 3,246.38 2011 13.58 11.88 2,555.05 2012 11.88 13.59 2,015.52 MFS(R) Total Return Investment Division (Class E) (5/1/2004)...................................... 2004 32.35 35.01 882.32 2005 35.01 35.24 3,087.82 2006 35.24 38.61 4,528.37 2007 38.61 39.34 5,773.91 2008 39.34 29.90 4,461.81 2009 29.90 34.62 4,451.71 2010 34.62 37.20 2,286.08 2011 37.20 37.20 173.39 2012 37.20 40.52 24.74
183
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ MFS(R) Value Investment Division (Class E)............... 2003 $ 9.41 $11.54 3,728.72 2004 11.54 12.57 12,975.29 2005 12.57 12.12 18,178.87 2006 12.12 13.99 11,545.93 2007 13.99 13.15 5,928.63 2008 13.15 8.54 5,130.02 2009 8.54 10.09 14,705.70 2010 10.09 10.99 12,105.48 2011 10.99 10.84 0.00 2012 10.84 12.35 1,968.67 MLA Mid Cap Investment Division (formerly Lazard Mid Cap Investment Division) (Class E).............................................. 2003 9.58 11.85 493.67 2004 11.85 13.28 1,730.31 2005 13.28 14.07 2,180.30 2006 14.07 15.80 2,308.34 2007 15.80 15.05 1,850.60 2008 15.05 9.10 1,569.14 2009 9.10 12.19 1,316.67 2010 12.19 14.68 1,089.88 2011 14.68 13.61 0.00 2012 13.61 14.05 0.00 MSCI EAFE(R) Index Investment Division (formerly Morgan Stanley EAFE(R) Index Investment Division) (Class E).................................... 2003 6.86 9.22 4,989.68 2004 9.22 10.77 6,126.00 2005 10.77 11.92 6,323.60 2006 11.92 14.66 9,356.52 2007 14.66 15.86 9,687.70 2008 15.86 8.98 12,765.86 2009 8.98 11.29 4,128.68 2010 11.29 11.93 3,299.58 2011 11.93 10.21 1,821.04 2012 10.21 11.80 1,814.42 Morgan Stanley Mid Cap Growth Investment Division (Class E).............................................. 2010 11.91 13.77 1,793.54 2011 13.77 12.55 537.40 2012 12.55 13.45 533.61 Morgan Stanley Mid Cap Growth Investment Division (formerly FI Mid Cap Opportunities Investment Division (Class E))............................................. 2003 10.48 13.80 296.55 2004 13.80 15.80 3,813.48 2005 15.80 16.51 4,062.73 2006 16.51 18.04 4,623.65 2007 18.04 19.10 3,230.04 2008 19.10 8.34 2,290.27 2009 8.34 10.92 1,502.62 2010 10.92 11.78 0.00
184
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Neuberger Berman Genesis Investment Division (Class E).. 2003 $10.62 $15.58 9,447.33 2004 15.58 17.56 27,095.80 2005 17.56 17.87 22,089.70 2006 17.87 20.40 18,411.53 2007 20.40 19.25 8,214.36 2008 19.25 11.59 6,361.99 2009 11.59 12.80 5,313.70 2010 12.80 15.22 2,099.70 2011 15.22 15.73 429.18 2012 15.73 16.91 516.25 Oppenheimer Global Equity Investment Division (Class E). 2003 9.65 12.32 4,353.82 2004 12.32 14.00 2,880.34 2005 14.00 15.91 1,804.42 2006 15.91 18.15 2,621.75 2007 18.15 18.88 2,109.23 2008 18.88 10.99 94.62 2009 10.99 15.07 789.21 2010 15.07 17.12 479.13 2011 17.12 15.35 2,065.08 2012 15.35 18.24 2,057.25 PIMCO Total Return Investment Division (Class E)........ 2003 11.10 11.35 13,991.48 2004 11.35 11.67 19,241.45 2005 11.67 11.69 21,778.69 2006 11.69 11.97 15,981.58 2007 11.97 12.61 12,941.28 2008 12.61 12.40 10,789.64 2009 12.40 14.35 13,615.10 2010 14.35 15.20 13,706.85 2011 15.20 15.38 9,097.22 2012 15.38 16.45 8,306.48 RCM Tecnology Investment Division (Class E)............. 2003 2.92 4.51 2,525.77 2004 4.51 4.22 10,928.51 2005 4.22 4.59 15,970.17 2006 4.59 4.74 10,067.59 2007 4.74 6.11 3,492.25 2008 6.11 3.32 3,695.48 2009 3.32 5.17 8,632.04 2010 5.17 6.48 8,502.77 2011 6.48 5.71 387.97 2012 5.71 6.28 411.30
185
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Russell 2000(R) Index Investment Division (Class E). 2003 $ 9.08 $12.98 3,159.74 2004 12.98 14.93 8,039.99 2005 14.93 15.26 7,340.29 2006 15.26 17.58 6,784.95 2007 17.58 16.92 3,723.22 2008 16.92 11.00 3,510.11 2009 11.00 13.55 2,767.31 2010 13.55 16.79 1,453.43 2011 16.79 15.75 179.08 2012 15.75 17.90 265.50 T. Rowe Price Large Cap Growth Investment Division (Class E)......................................... 2003 8.44 10.79 4,857.53 2004 10.79 11.59 7,296.27 2005 11.59 12.08 2,894.32 2006 12.08 13.36 3,096.27 2007 13.36 14.28 6,386.93 2008 14.28 8.11 1,575.09 2009 8.11 11.37 802.27 2010 11.37 13.01 596.51 2011 13.01 12.57 589.56 2012 12.57 14.62 2,191.44 T. Rowe Price Mid Cap Growth Investment Division (Class E)......................................... 2003 4.49 6.01 2,791.91 2004 6.01 6.94 4,347.21 2005 6.94 7.79 7,750.61 2006 7.79 8.11 12,151.86 2007 8.11 9.33 20,990.02 2008 9.33 5.51 13,390.29 2009 5.51 7.85 10,699.03 2010 7.85 9.83 10,046.62 2011 9.83 9.47 10,078.66 2012 9.47 10.55 10,029.06 T. Rowe Price Small Cap Growth Investment Division (Class E)......................................... 2003 8.34 11.49 3,662.29 2004 11.49 12.48 7,272.47 2005 12.48 13.54 7,167.74 2006 13.54 13.74 7,577.63 2007 13.74 14.75 2,731.95 2008 14.75 9.20 5,374.35 2009 9.20 12.50 5,235.87 2010 12.50 16.48 3,018.69 2011 16.48 16.38 2,109.65 2012 16.38 18.60 2,106.43
186
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Western Asset Management Strategic Bond Opportunities Investment Division (Class E)....................... 2003 $16.11 $17.74 4,368.70 2004 17.74 18.48 15,634.08 2005 18.48 18.58 27,090.19 2006 18.58 19.06 19,229.37 2007 19.06 19.38 7,765.58 2008 19.38 16.10 3,497.56 2009 16.10 20.80 4,271.66 2010 20.80 22.93 3,902.87 2011 22.93 23.77 2,107.53 2012 23.77 25.89 3,025.41 Western Asset Management U.S Government Investment Division (Class E).................................. 2003 14.74 14.65 1,396.86 2004 14.65 14.74 3,657.61 2005 14.74 14.66 5,346.73 2006 14.66 14.92 4,542.12 2007 14.92 15.20 4,542.45 2008 15.20 14.81 3,729.57 2009 14.81 15.11 1,843.71 2010 15.11 15.62 1,458.29 2011 15.62 16.10 1,187.79 2012 16.10 16.25 1,142.29
187 GROUP I--PREFERENCE PLUS SELECT E SHARE AND AMERICAN FUNDS(R) CLASS 2 2.20 SEPARATE ACCOUNT CHARGE
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ American Funds Bond Investment Division+ (Class 2) (5/1/2006).......................................... 2006 $ 13.60 $ 14.19 2,123.12 2007 14.19 14.32 2,380.35 2008 14.32 12.68 999.69 2009 12.68 13.95 739.91 2010 13.95 14.50 1.14 2011 14.50 15.03 0.00 2012 15.03 15.47 0.00 American Funds Global Small Capitalization Investment Division+ (Class 2)................................. 2003 10.34 15.51 8,364.02 2004 15.51 18.31 0.00 2005 18.31 22.42 14,287.71 2006 22.42 27.18 13,354.79 2007 27.18 32.23 13,953.89 2008 32.23 14.63 11,825.74 2009 14.63 23.05 5,507.31 2010 23.05 27.56 1.10 2011 27.56 21.77 0.00 2012 21.77 25.12 0.00 American Funds Growth Investment Division+ (Class 2).. 2003 71.44 95.47 4,971.32 2004 95.47 104.90 0.00 2005 104.90 119.06 5,197.63 2006 119.06 128.19 3,907.04 2007 128.19 140.66 4,040.66 2008 140.66 76.97 3,454.38 2009 76.97 104.81 1,854.41 2010 104.81 121.50 0.20 2011 121.50 113.61 0.00 2012 113.61 130.81 0.00 American Funds Growth-Income Investment Division+ (Class 2)........................................... 2003 57.44 74.30 5,358.01 2004 74.30 80.10 0.00 2005 80.10 82.80 6,733.74 2006 82.80 93.18 5,902.55 2007 93.18 95.60 5,633.63 2008 95.60 58.03 5,033.34 2009 58.03 74.39 1,841.59 2010 74.39 80.97 0.62 2011 80.97 77.64 0.00 2012 77.64 89.09 0.00
188
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Baillie Gifford International Stock Investment Division (formerly Artio International Stock Investment Division) (Class E)................................................ 2003 $ 8.48 $10.60 5,892.03 2004 10.60 12.24 5,831.75 2005 12.24 14.11 6,998.46 2006 14.11 16.05 6,823.83 2007 16.05 17.30 7,640.32 2008 17.30 9.44 6,466.56 2009 9.44 11.26 3,627.63 2010 11.26 11.80 3.54 2011 11.80 9.23 0.00 2012 9.23 10.78 0.00 Barclays Capital Aggregate Bond Index Investment Division (Class E)................................................ 2003 11.97 12.12 28,736.67 2004 12.12 12.32 35,371.12 2005 12.32 12.29 35,569.45 2006 12.29 12.49 37,573.50 2007 12.49 13.04 43,337.63 2008 13.04 13.49 30,487.80 2009 13.49 13.88 12,285.25 2010 13.88 14.36 5.09 2011 14.36 15.09 0.00 2012 15.09 15.30 0.00 BlackRock Aggressive Growth Investment Division (Class E)................................................ 2003 21.88 30.10 2,253.24 2004 30.10 33.20 1,610.53 2005 33.20 35.91 1,275.09 2006 35.91 37.43 1,200.71 2007 37.43 44.07 1,343.98 2008 44.07 23.37 1,358.97 2009 23.37 34.11 0.00 2010 34.11 38.44 0.51 2011 38.44 36.41 0.00 2012 36.41 39.46 0.00 BlackRock Bond Income Investment Division (Class E)........ 2003 38.47 39.77 6,381.98 2004 39.77 40.57 4,739.42 2005 40.57 40.58 3,844.39 2006 40.58 41.39 3,834.33 2007 41.39 42.97 2,508.67 2008 42.97 40.53 2,988.20 2009 40.53 43.33 1,765.53 2010 43.33 45.86 1.70 2011 45.86 47.74 0.00 2012 47.74 50.14 0.00
189
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ BlackRock Diversified Investment Division (Class E)..... 2003 $26.93 $31.72 6,110.02 2004 31.72 33.60 9,242.23 2005 33.60 33.84 7,562.23 2006 33.84 36.53 4,814.42 2007 36.53 37.77 6,284.90 2008 37.77 27.75 3,575.93 2009 27.75 31.80 3,356.31 2010 31.80 34.05 1.38 2011 34.05 34.54 0.00 2012 34.54 37.90 0.00 BlackRock Large Cap Core Investment Division* (Class E). 2007 66.06 66.33 2,418.29 2008 66.33 40.71 1,550.72 2009 40.71 47.51 989.59 2010 47.51 52.36 1.33 2011 52.36 51.37 0.00 2012 51.37 57.08 0.00 BlackRock Large Cap Investment Division (Class E)....... 2003 40.98 52.13 3,887.90 2004 52.13 56.45 2,986.47 2005 56.45 57.13 2,793.92 2006 57.13 63.67 2,571.59 2007 63.67 66.62 0.00 BlackRock Large Cap Value Investment Division (Class E). 2003 7.88 10.44 2,991.68 2004 10.44 11.57 2,375.07 2005 11.57 11.96 2,491.95 2006 11.96 13.95 13,309.15 2007 13.95 14.09 14,568.90 2008 14.09 8.95 12,001.48 2009 8.95 9.74 8,857.78 2010 9.74 10.38 7.60 2011 10.38 10.37 0.00 2012 10.37 11.58 0.00 BlackRock Money Market Investment Division (Class E) (5/1/2003)............................................ 2003 19.31 19.11 0.00 2004 19.11 18.84 0.00 2005 18.84 18.94 0.00 2006 18.94 19.39 0.00 2007 19.39 19.90 0.00 2008 19.90 19.99 0.00 2009 19.99 19.62 0.00 2010 19.62 19.19 0.00 2011 19.19 18.77 0.00 2012 18.77 18.36 0.00
190
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Davis Venture Value Investment Division (Class E)...... 2003 $20.38 $26.07 5,496.37 2004 26.07 28.60 4,415.95 2005 28.60 30.81 4,184.02 2006 30.81 34.49 4,121.65 2007 34.49 35.23 3,091.65 2008 35.23 20.86 1,217.06 2009 20.86 26.90 194.89 2010 26.90 29.43 2.12 2011 29.43 27.58 0.00 2012 27.58 30.41 0.00 FI Value Leaders Investment Division (Class E)......... 2003 17.32 21.47 161.31 2004 21.47 23.85 107.46 2005 23.85 25.79 155.91 2006 25.79 28.20 502.38 2007 28.20 28.70 899.57 2008 28.70 17.11 823.33 2009 17.11 20.37 361.13 2010 20.37 22.79 3.39 2011 22.79 20.89 0.00 2012 20.89 23.62 0.00 Harris Oakmark International Investment Division (Class E)............................................ 2003 8.75 11.56 3,729.27 2004 11.56 13.65 4,545.10 2005 13.65 15.27 5,027.55 2006 15.27 19.26 9,330.71 2007 19.26 18.65 8,520.04 2008 18.65 10.79 6,950.06 2009 10.79 16.40 5,378.00 2010 16.40 18.69 2.41 2011 18.69 15.70 0.00 2012 15.70 19.86 0.00 Invesco Small Cap Growth Investment Division (Class E). 2003 8.40 11.43 191.63 2004 11.43 11.92 645.80 2005 11.92 12.65 706.69 2006 12.65 14.13 1,007.57 2007 14.13 15.37 1,653.95 2008 15.37 9.22 1,736.38 2009 9.22 12.08 1,051.30 2010 12.08 14.93 2.78 2011 14.93 14.46 0.00 2012 14.46 16.73 0.00 Jennison Growth Investment Division (Class E).......... 2005 3.91 4.68 6,326.30 2006 4.68 4.69 5,318.54 2007 4.69 5.12 3,451.85 2008 5.12 3.18 364.26 2009 3.18 4.35 363.30 2010 4.35 4.74 3.91 2011 4.74 4.65 0.00 2012 4.65 5.26 0.00
191
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Jennison Growth Investment Division (Class E) (formerly Met/Putnam Voyager Investment Division)....... 2003 $ 3.37 $ 4.15 6,769.50 2004 4.15 4.24 6,901.45 2005 4.24 3.87 6,737.43 Legg Mason ClearBridge Aggressive Growth Investment Division (Class E)...................................... 2003 5.47 6.63 8,195.17 2004 6.63 7.05 7,495.14 2005 7.05 7.84 6,267.96 2006 7.84 7.54 5,153.09 2007 7.54 7.55 3,099.99 2008 7.55 4.50 395.90 2009 4.50 5.87 0.00 2010 5.87 7.11 5.92 2011 7.11 7.20 0.00 2012 7.20 8.35 0.00 Legg Mason ClearBridge Aggressive Growth Investment Division (Class E)...................................... 2006 8.91 9.51 1,956.46 2007 9.51 8.76 1,347.02 2008 8.76 3.89 0.00 2009 3.89 5.25 0.00 2010 5.25 5.51 2.27 2011 5.51 5.85 0.00 Legg Mason Partners Aggressive Growth Investment Division (formerly Janus Growth Investment Division) (Class E)... 2003 5.22 5.47 0.00 Legg Mason Value Equity Investment Division (Class E) (formerly MFS(R) Investors Trust Investment Division)... 2003 6.33 7.52 0.00 2004 7.52 8.19 2,025.85 2005 8.19 8.58 2,100.49 2006 8.58 8.95 2,138.79 Loomis Sayles Small Cap Core Investment Division (Class E)............................................... 2003 16.19 21.59 538.84 2004 21.59 24.54 475.57 2005 24.54 25.63 353.93 2006 25.63 29.22 272.81 2007 29.22 31.93 464.04 2008 31.93 19.99 234.09 2009 19.99 25.43 38.68 2010 25.43 31.68 2.05 2011 31.68 31.13 0.00 2012 31.13 34.83 0.00
192
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Loomis Sayles Small Cap Growth Investment Division (Class E)............................................. 2003 $ 6.17 $ 8.74 3,807.57 2004 8.74 9.50 2,792.68 2005 9.50 9.71 2,264.89 2006 9.71 10.44 2,225.35 2007 10.44 10.67 4,824.55 2008 10.67 6.12 5,029.95 2009 6.12 7.78 4,439.82 2010 7.78 10.01 4.90 2011 10.01 10.07 0.00 2012 10.07 10.93 0.00 Lord Abbett Bond Debenture Investment Division (Class E)............................................. 2003 10.00 11.67 8,956.29 2004 11.67 12.36 7,789.76 2005 12.36 12.28 7,845.59 2006 12.28 13.12 8,409.75 2007 13.12 13.70 9,612.40 2008 13.70 10.92 8,504.41 2009 10.92 14.62 1,603.48 2010 14.62 16.17 1.01 2011 16.17 16.56 0.00 2012 16.56 18.30 0.00 Lord Abbett Mid Cap Value Investment Division (Class E). 2012 23.10 23.63 0.00 Lord Abbett Mid Cap Value Investment Division (Class E) (formerly Neuberger Berman Mid Cap Value Investment Division (Class E))................................... 2003 12.97 17.31 5,687.88 2004 17.31 20.79 5,466.33 2005 20.79 22.79 7,226.74 2006 22.79 24.82 6,017.67 2007 24.82 25.07 4,776.07 2008 25.07 12.90 4,784.77 2009 12.90 18.65 2,352.99 2010 18.65 23.02 0.51 2011 23.02 21.04 0.00 2012 21.04 23.22 0.00 Met/Artisan Mid Cap Value Investment Division (Class E). 2003 21.82 28.28 9,934.08 2004 28.28 30.37 10,655.30 2005 30.37 32.62 11,623.48 2006 32.62 35.84 7,019.33 2007 35.84 32.60 5,840.98 2008 32.60 17.19 2,287.55 2009 17.19 23.77 242.78 2010 23.77 26.72 1.86 2011 26.72 27.86 0.00 2012 27.86 30.44 0.00
193
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ MetLife Mid Cap Stock Index Investment Division (Class E)....................................... 2003 $ 8.47 $11.17 16,315.81 2004 11.17 12.67 13,786.33 2005 12.67 13.90 12,756.91 2006 13.90 14.94 9,929.96 2007 14.94 15.73 9,791.05 2008 15.73 9.80 15,156.26 2009 9.80 13.12 3,748.36 2010 13.12 16.19 2.83 2011 16.19 15.50 0.00 2012 15.50 17.81 0.00 MetLife Stock Index Investment Division (Class E). 2003 24.87 31.14 15,955.01 2004 31.14 33.63 20,967.77 2005 33.63 34.38 26,625.93 2006 34.38 38.77 20,787.02 2007 38.77 39.84 20,126.01 2008 39.84 24.48 19,728.37 2009 24.48 30.19 8,194.37 2010 30.19 33.85 1.95 2011 33.85 33.68 0.00 2012 33.68 38.06 0.00 MFS(R) Research International Investment Division (Class E)....................................... 2003 7.18 9.28 8,062.95 2004 9.28 10.87 7,188.80 2005 10.87 12.39 6,999.89 2006 12.39 15.37 11,802.81 2007 15.37 17.04 10,070.37 2008 17.04 9.61 9,851.45 2009 9.61 12.39 3,764.65 2010 12.39 13.52 6.05 2011 13.52 11.82 0.00 2012 11.82 13.51 0.00 MFS(R) Total Return Investment Division (Class E) (5/1/2004)...................................... 2004 32.08 34.70 28.24 2005 34.70 34.91 775.56 2006 34.91 38.23 924.44 2007 38.23 38.94 2,214.75 2008 38.94 29.57 1,530.69 2009 29.57 34.23 1,670.50 2010 34.23 36.76 1.64 2011 36.76 36.74 0.00 2012 36.74 40.00 0.00
194
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ MFS(R) Value Investment Division (Class E)............... 2003 $ 9.39 $11.51 24,514.92 2004 11.51 12.54 21,300.79 2005 12.54 12.07 16,456.08 2006 12.07 13.93 16,814.27 2007 13.93 13.09 15,922.67 2008 13.09 8.50 6,914.51 2009 8.50 10.03 2,141.45 2010 10.03 10.92 1.52 2011 10.92 10.77 0.00 2012 10.77 12.26 0.00 MLA Mid Cap Investment Division (formerly Lazard Mid Cap Investment Division) (Class E).............................................. 2003 9.58 11.84 2,804.64 2004 11.84 13.26 2,127.48 2005 13.26 14.04 2,161.09 2006 14.04 15.76 615.42 2007 15.76 15.01 1,479.70 2008 15.01 9.06 734.31 2009 9.06 12.14 0.00 2010 12.14 14.62 5.75 2011 14.62 13.54 0.00 2012 13.54 13.97 0.00 MSCI EAFE(R) Index Investment Division (formerly Morgan Stanley EAFE(R) Index Investment Division) (Class E).................................... 2003 6.84 9.19 20,222.04 2004 9.19 10.74 11,997.31 2005 10.74 11.88 17,771.03 2006 11.88 14.60 10,125.99 2007 14.60 15.79 11,140.49 2008 15.79 8.93 11,411.14 2009 8.93 11.23 4,791.75 2010 11.23 11.86 4.41 2011 11.86 10.14 0.00 2012 10.14 11.72 0.00 Morgan Stanley Mid Cap Growth Investment Division (Class E).............................................. 2010 11.83 13.68 0.00 2011 13.68 12.46 0.00 2012 12.46 13.34 0.00 Morgan Stanley Mid Cap Growth Investment Division (formerly FI Mid Cap Opportunities Investment Division (Class E))............................................. 2003 10.45 13.75 1,344.02 2004 13.75 15.74 5,351.17 2005 15.74 16.43 6,944.69 2006 16.43 17.95 5,802.84 2007 17.95 19.00 5,686.38 2008 19.00 8.29 5,377.86 2009 8.29 10.85 4,387.83 2010 10.85 11.71 0.00
195
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Neuberger Berman Genesis Investment Division (Class E).. 2003 $10.60 $15.55 42,084.70 2004 15.55 17.52 38,252.34 2005 17.52 17.82 34,201.05 2006 17.82 20.34 25,485.16 2007 20.34 19.18 24,373.18 2008 19.18 11.54 22,958.02 2009 11.54 12.74 10,200.31 2010 12.74 15.14 4.15 2011 15.14 15.64 0.00 2012 15.64 16.81 0.00 Oppenheimer Global Equity Investment Division (Class E). 2003 9.62 12.28 8,734.24 2004 12.28 13.95 6,007.99 2005 13.95 15.84 5,967.34 2006 15.84 18.06 5,479.88 2007 18.06 18.78 4,959.54 2008 18.78 10.93 3,521.96 2009 10.93 14.98 1,564.57 2010 14.98 17.01 3.31 2011 17.01 15.24 0.00 2012 15.24 18.09 0.00 PIMCO Total Return Investment Division (Class E)........ 2003 11.09 11.33 37,892.75 2004 11.33 11.65 24,908.18 2005 11.65 11.66 26,177.95 2006 11.66 11.94 23,791.41 2007 11.94 12.57 21,152.02 2008 12.57 12.35 15,934.59 2009 12.35 14.29 4,893.70 2010 14.29 15.13 4.19 2011 15.13 15.30 0.00 2012 15.30 16.35 0.00 RCM Tecnology Investment Division (Class E)............. 2003 2.92 4.50 14,996.40 2004 4.50 4.21 16,099.39 2005 4.21 4.58 15,790.77 2006 4.58 4.72 22,838.98 2007 4.72 6.09 47,468.52 2008 6.09 3.30 41,025.77 2009 3.30 5.15 8,819.45 2010 5.15 6.45 7.63 2011 6.45 5.68 0.00 2012 5.68 6.25 0.00
196
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Russell 2000(R) Index Investment Division (Class E). 2003 $ 9.06 $12.95 7,467.05 2004 12.95 14.88 5,583.21 2005 14.88 15.20 6,267.58 2006 15.20 17.51 4,443.15 2007 17.51 16.84 6,010.46 2008 16.84 10.94 6,532.92 2009 10.94 13.47 4,123.89 2010 13.47 16.69 1.62 2011 16.69 15.65 0.00 2012 15.65 17.77 0.00 T. Rowe Price Large Cap Growth Investment Division (Class E)......................................... 2003 8.42 10.76 7,788.87 2004 10.76 11.56 8,626.86 2005 11.56 12.04 9,561.01 2006 12.04 13.30 7,638.78 2007 13.30 14.22 7,383.94 2008 14.22 8.07 7,083.74 2009 8.07 11.31 6,680.93 2010 11.31 12.93 6.14 2011 12.93 12.49 0.00 2012 12.49 14.52 0.00 T. Rowe Price Mid Cap Growth Investment Division (Class E)......................................... 2003 4.48 6.00 9,772.60 2004 6.00 6.93 9,534.74 2005 6.93 7.77 10,596.73 2006 7.77 8.08 9,077.24 2007 8.08 9.30 8,624.70 2008 9.30 5.49 7,604.48 2009 5.49 7.82 2,771.87 2010 7.82 9.78 7.92 2011 9.78 9.42 0.00 2012 9.42 10.49 0.00 T. Rowe Price Small Cap Growth Investment Division (Class E)......................................... 2003 8.32 11.45 833.30 2004 11.45 12.43 924.10 2005 12.43 13.48 1,439.23 2006 13.48 13.67 4,421.55 2007 13.67 14.67 3,362.26 2008 14.67 9.15 3,141.10 2009 9.15 12.42 2,541.62 2010 12.42 16.36 2.92 2011 16.36 16.26 0.00 2012 16.26 18.46 0.00
197
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Western Asset Management Strategic Bond Opportunities Investment Division (Class E)....................... 2003 $16.04 $17.66 1,795.85 2004 17.66 18.39 2,875.95 2005 18.39 18.47 4,725.75 2006 18.47 18.95 4,130.05 2007 18.95 19.26 4,290.27 2008 19.26 15.99 2,677.83 2009 15.99 20.64 217.84 2010 20.64 22.74 2.38 2011 22.74 23.57 0.00 2012 23.57 25.66 0.00 Western Asset Management U.S Government Investment Division (Class E).................................. 2003 14.68 14.59 12,119.18 2004 14.59 14.67 10,341.75 2005 14.67 14.58 9,992.89 2006 14.58 14.83 11,123.81 2007 14.83 15.10 10,817.82 2008 15.10 14.71 9,445.01 2009 14.71 14.99 3,972.02 2010 14.99 15.50 3.79 2011 15.50 15.96 0.00 2012 15.96 16.10 0.00
198 GROUP I--PREFERENCE PLUS SELECT E SHARE AND AMERICAN FUNDS(R) CLASS 2 2.25 SEPARATE ACCOUNT CHARGE
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ American Funds Bond Investment Division+ (Class 2) (5/1/2006).......................................... 2006 $ 13.54 $ 14.12 0.00 2007 14.12 14.24 0.00 2008 14.24 12.61 0.00 2009 12.61 13.86 0.00 2010 13.86 14.40 0.00 2011 14.40 14.92 0.00 2012 14.92 15.35 0.00 American Funds Global Small Capitalization Investment Division+ (Class 2)................................. 2003 10.32 15.47 7,432.78 2004 15.47 18.25 1,724.22 2005 18.25 22.34 529.95 2006 22.34 27.06 225.68 2007 27.06 32.07 143.60 2008 32.07 14.55 16.15 2009 14.55 22.91 15.75 2010 22.91 27.39 17.22 2011 27.39 21.62 15.24 2012 21.62 24.94 14.95 American Funds Growth Investment Division+ ( Class 2). 2003 70.80 94.57 6,362.14 2004 94.57 103.86 308.48 2005 103.86 117.82 44.81 2006 117.82 126.79 0.00 2007 126.79 139.05 0.00 2008 139.05 76.05 0.00 2009 76.05 103.51 0.00 2010 103.51 119.94 0.00 2011 119.94 112.09 0.00 2012 112.09 129.00 0.00 American Funds Growth-Income Investment Division+ (Class 2)........................................... 2003 56.92 73.60 4,976.20 2004 73.60 79.30 207.31 2005 79.30 81.94 148.26 2006 81.94 92.17 446.02 2007 92.17 94.51 126.63 2008 94.51 57.34 96.65 2009 57.34 73.47 84.09 2010 73.47 79.92 56.72 2011 79.92 76.60 56.64 2012 76.60 87.85 50.36
199
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Baillie Gifford International Stock Investment Division (formerly Artio International Stock Investment Division) (Class E)................................................ 2003 $ 8.43 $10.54 4,356.16 2004 10.54 12.16 27.68 2005 12.16 14.01 0.00 2006 14.01 15.92 0.00 2007 15.92 17.16 0.00 2008 17.16 9.36 0.00 2009 9.36 11.16 0.00 2010 11.16 11.68 0.00 2011 11.68 9.14 0.00 2012 9.14 10.67 0.00 Barclays Capital Aggregate Bond Index Investment Division (Class E)................................................ 2003 11.94 12.09 18,272.11 2004 12.09 12.28 6,452.85 2005 12.28 12.25 10,388.33 2006 12.25 12.44 3,833.65 2007 12.44 12.98 4,058.90 2008 12.98 13.42 3,042.44 2009 13.42 13.80 3,187.82 2010 13.80 14.28 3,254.04 2011 14.28 14.99 3,202.76 2012 14.99 15.20 3,486.26 BlackRock Aggressive Growth Investment Division (Class E)................................................ 2003 21.72 29.86 4,627.03 2004 29.86 32.93 176.92 2005 32.93 35.59 0.00 2006 35.59 37.08 0.00 2007 37.08 43.64 0.00 2008 43.64 23.13 0.00 2009 23.13 33.74 0.00 2010 33.74 38.01 0.00 2011 38.01 35.98 0.00 2012 35.98 38.98 0.00 BlackRock Bond Income Investment Division (Class E)........ 2003 38.09 39.36 1,645.72 2004 39.36 40.13 673.24 2005 40.13 40.12 97.76 2006 40.12 40.91 0.00 2007 40.91 42.44 0.00 2008 42.44 40.01 0.00 2009 40.01 42.76 0.00 2010 42.76 45.23 0.00 2011 45.23 47.06 0.00 2012 47.06 49.41 0.00
200
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ BlackRock Diversified Investment Division (Class E)..... 2003 $26.71 $31.45 5,411.12 2004 31.45 33.29 3,113.55 2005 33.29 33.51 824.18 2006 33.51 36.16 0.00 2007 36.16 37.36 0.00 2008 37.36 27.44 0.00 2009 27.44 31.43 0.00 2010 31.43 33.64 0.00 2011 33.64 34.10 0.00 2012 34.10 37.40 0.00 BlackRock Large Cap Core Investment Division* (Class E). 2007 65.28 65.52 0.00 2008 65.52 40.19 0.00 2009 40.19 46.88 0.00 2010 46.88 51.65 0.00 2011 51.65 50.65 0.00 2012 50.65 56.25 0.00 BlackRock Large Cap Investment Division (Class E)....... 2003 40.58 51.60 2,441.30 2004 51.60 55.85 210.87 2005 55.85 56.49 0.00 2006 56.49 62.93 0.00 2007 62.93 65.83 0.00 BlackRock Large Cap Value Investment Division (Class E). 2003 7.87 10.43 5,264.49 2004 10.43 11.55 152.42 2005 11.55 11.94 0.00 2006 11.94 13.92 103.81 2007 13.92 14.05 103.61 2008 14.05 8.92 30.08 2009 8.92 9.70 29.36 2010 9.70 10.34 30.65 2011 10.34 10.32 28.38 2012 10.32 11.52 27.86 BlackRock Money Market Investment Division (Class E) (5/1/2003)............................................ 2003 19.12 18.91 23,443.30 2004 18.91 18.64 2,827.64 2005 18.64 18.73 1,086.98 2006 18.73 19.17 1,515.72 2007 19.17 19.66 852.12 2008 19.66 19.74 1,571.43 2009 19.74 19.36 1,562.69 2010 19.36 18.93 1,632.64 2011 18.93 18.51 1,626.13 2012 18.51 18.10 1,705.43
201
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Davis Venture Value Investment Division (Class E)...... 2003 $20.30 $25.95 3,488.19 2004 25.95 28.45 9.60 2005 28.45 30.64 0.00 2006 30.64 34.28 0.00 2007 34.28 35.00 0.00 2008 35.00 20.71 0.00 2009 20.71 26.70 0.00 2010 26.70 29.19 0.00 2011 29.19 27.35 0.00 2012 27.35 30.13 0.00 FI Value Leaders Investment Division (Class E)......... 2003 17.23 21.36 745.92 2004 21.36 23.71 42.53 2005 23.71 25.63 420.62 2006 25.63 28.01 166.40 2007 28.01 28.49 86.12 2008 28.49 16.98 0.00 2009 16.98 20.20 0.00 2010 20.20 22.59 0.73 2011 22.59 20.70 0.00 2012 20.70 23.39 0.00 Harris Oakmark International Investment Division (Class E)............................................ 2003 8.74 11.55 0.00 2004 11.55 13.63 0.00 2005 13.63 15.23 945.67 2006 15.23 19.21 1,047.95 2007 19.21 18.60 861.08 2008 18.60 10.76 44.65 2009 10.76 16.33 43.58 2010 16.33 18.60 45.93 2011 18.60 15.62 42.12 2012 15.62 19.74 41.34 Invesco Small Cap Growth Investment Division (Class E). 2003 8.40 11.42 0.00 2004 11.42 11.90 1,464.04 2005 11.90 12.62 0.00 2006 12.62 14.10 0.00 2007 14.10 15.33 0.00 2008 15.33 9.18 0.00 2009 9.18 12.03 0.00 2010 12.03 14.86 0.00 2011 14.86 14.38 0.00 2012 14.38 16.64 0.00 Jennison Growth Investment Division (Class E).......... 2005 3.90 4.66 0.00 2006 4.66 4.68 0.00 2007 4.68 5.10 0.00 2008 5.10 3.16 0.00 2009 3.16 4.33 0.00 2010 4.33 4.71 0.00 2011 4.71 4.62 0.00 2012 4.62 5.22 0.00
202
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Jennison Growth Investment Division (Class E) (formerly Met/Putnam Voyager Investment Division)....... 2003 $ 3.37 $ 4.14 589.27 2004 4.14 4.23 1.89 2005 4.23 3.86 0.00 Legg Mason ClearBridge Aggressive Growth Investment Division (Class E)...................................... 2003 5.46 6.62 1,917.03 2004 6.62 7.03 264.38 2005 7.03 7.82 0.00 2006 7.82 7.52 0.00 2007 7.52 7.52 0.00 2008 7.52 4.48 0.00 2009 4.48 5.84 0.00 2010 5.84 7.07 0.00 2011 7.07 7.16 0.00 2012 7.16 8.30 0.00 Legg Mason ClearBridge Aggressive Growth Investment Division (Class E)...................................... 2006 8.88 9.47 0.00 2007 9.47 8.72 0.00 2008 8.72 3.87 0.00 2009 3.87 5.22 0.00 2010 5.22 5.48 0.00 2011 5.48 5.81 0.00 Legg Mason Partners Aggressive Growth Investment Division (formerly Janus Growth Investment Division) (Class E)... 2003 5.21 5.46 0.00 Legg Mason Value Equity Investment Division (Class E) (formerly MFS(R) Investors Trust Investment Division)... 2003 6.32 7.51 125.61 2004 7.51 8.17 12.67 2005 8.17 8.55 0.00 2006 8.55 8.92 0.00 Loomis Sayles Small Cap Core Investment Division (Class E)............................................... 2003 16.12 21.48 67.95 2004 21.48 24.41 94.21 2005 24.41 25.49 24.26 2006 25.49 29.03 0.00 2007 29.03 31.71 0.00 2008 31.71 19.84 0.00 2009 19.84 25.24 0.00 2010 25.24 31.42 0.00 2011 31.42 30.86 0.00 2012 30.86 34.51 0.00
203
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Loomis Sayles Small Cap Growth Investment Division (Class E)............................................. 2003 $ 6.17 $ 8.72 4,773.04 2004 8.72 9.49 431.63 2005 9.49 9.69 0.00 2006 9.69 10.41 0.00 2007 10.41 10.64 0.00 2008 10.64 6.10 0.00 2009 6.10 7.75 0.00 2010 7.75 9.96 0.00 2011 9.96 10.02 0.00 2012 10.02 10.87 0.00 Lord Abbett Bond Debenture Investment Division (Class E)............................................. 2003 9.97 11.63 6,993.21 2004 11.63 12.31 1,451.87 2005 12.31 12.23 872.32 2006 12.23 13.06 871.10 2007 13.06 13.63 680.85 2008 13.63 10.85 472.50 2009 10.85 14.53 295.22 2010 14.53 16.05 139.03 2011 16.05 16.43 0.00 2012 16.43 18.16 0.00 Lord Abbett Mid Cap Value Investment Division (Class E). 2012 22.95 23.46 0.00 Lord Abbett Mid Cap Value Investment Division (Class E) (formerly Neuberger Berman Mid Cap Value Investment Division (Class E))................................... 2003 12.95 17.26 6,593.93 2004 17.26 20.72 519.11 2005 20.72 22.71 44.14 2006 22.71 24.72 0.00 2007 24.72 24.95 0.00 2008 24.95 12.83 0.00 2009 12.83 18.55 0.00 2010 18.55 22.88 0.00 2011 22.88 20.90 0.00 2012 20.90 23.06 0.00 Met/Artisan Mid Cap Value Investment Division (Class E). 2003 21.72 28.13 3,928.61 2004 28.13 30.19 406.11 2005 30.19 32.42 81.97 2006 32.42 35.59 0.00 2007 35.59 32.36 0.00 2008 32.36 17.06 0.00 2009 17.06 23.58 0.00 2010 23.58 26.48 0.00 2011 26.48 27.60 0.00 2012 27.60 30.14 0.00
204
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ MetLife Mid Cap Stock Index Investment Division (Class E)....................................... 2003 $ 8.46 $11.15 9,542.64 2004 11.15 12.64 1,548.24 2005 12.64 13.86 1,333.13 2006 13.86 14.89 402.01 2007 14.89 15.67 391.78 2008 15.67 9.75 475.29 2009 9.75 13.06 433.11 2010 13.06 16.10 408.75 2011 16.10 15.41 406.64 2012 15.41 17.70 384.77 MetLife Stock Index Investment Division (Class E). 2003 24.72 30.93 11,621.20 2004 30.93 33.38 3,131.49 2005 33.38 34.11 4,354.67 2006 34.11 38.45 1,429.60 2007 38.45 39.49 1,397.43 2008 39.49 24.25 1,702.99 2009 24.25 29.89 1,703.90 2010 29.89 33.50 1,691.50 2011 33.50 33.31 1,678.45 2012 33.31 37.63 1,558.65 MFS(R) Research International Investment Division (Class E)....................................... 2003 7.19 9.29 289.80 2004 9.29 10.86 132.04 2005 10.86 12.38 0.00 2006 12.38 15.35 0.00 2007 15.35 17.01 0.00 2008 17.01 9.59 0.00 2009 9.59 12.35 0.00 2010 12.35 13.47 0.00 2011 13.47 11.77 0.00 2012 11.77 13.45 0.00 MFS(R) Total Return Investment Division (Class E) (5/1/2004)...................................... 2004 31.81 34.39 0.00 2005 34.39 34.59 0.00 2006 34.59 37.86 0.00 2007 37.86 38.54 0.00 2008 38.54 29.25 0.00 2009 29.25 33.84 0.00 2010 33.84 36.33 0.00 2011 36.33 36.29 0.00 2012 36.29 39.49 0.00
205
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ MFS(R) Value Investment Division (Class E)............... 2003 $ 9.37 $11.48 10,777.24 2004 11.48 12.50 623.01 2005 12.50 12.03 1,126.55 2006 12.03 13.87 599.39 2007 13.87 13.03 512.49 2008 13.03 8.46 0.00 2009 8.46 9.98 0.00 2010 9.98 10.85 3.12 2011 10.85 10.70 0.00 2012 10.70 12.17 0.00 MLA Mid Cap Investment Division (formerly Lazard Mid Cap Investment Division) (Class E).............................................. 2003 9.57 11.83 1,883.92 2004 11.83 13.24 779.64 2005 13.24 14.01 0.00 2006 14.01 15.72 0.00 2007 15.72 14.96 0.00 2008 14.96 9.03 0.00 2009 9.03 12.09 0.00 2010 12.09 14.55 0.00 2011 14.55 13.48 0.00 2012 13.48 13.89 0.00 MSCI EAFE(R) Index Investment Division (formerly Morgan Stanley EAFE(R) Index Investment Division) (Class E).................................... 2003 6.83 9.17 17,391.18 2004 9.17 10.71 2,078.05 2005 10.71 11.84 2,776.80 2006 11.84 14.54 869.87 2007 14.54 15.72 793.42 2008 15.72 8.88 1,059.17 2009 8.88 11.16 980.53 2010 11.16 11.79 1,020.13 2011 11.79 10.08 1,145.42 2012 10.08 11.64 1,192.12 Morgan Stanley Mid Cap Growth Investment Division (Class E).............................................. 2010 11.76 13.58 0.00 2011 13.58 12.37 0.00 2012 12.37 13.24 0.00 Morgan Stanley Mid Cap Growth Investment Division (formerly FI Mid Cap Opportunities Investment Division (Class E))............................................. 2003 10.42 13.71 4,150.28 2004 13.71 15.68 530.39 2005 15.68 16.36 0.00 2006 16.36 17.87 0.00 2007 17.87 18.90 0.00 2008 18.90 8.24 0.00 2009 8.24 10.78 0.00 2010 10.78 11.63 0.00
206
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Neuberger Berman Genesis Investment Division (Class E).. 2003 $10.59 $15.53 15,572.16 2004 15.53 17.48 39,937.50 2005 17.48 17.77 127.63 2006 17.77 20.27 0.00 2007 20.27 19.11 0.00 2008 19.11 11.49 0.00 2009 11.49 12.68 0.00 2010 12.68 15.06 0.00 2011 15.06 15.55 0.00 2012 15.55 16.70 0.00 Oppenheimer Global Equity Investment Division (Class E). 2003 9.60 12.23 6,892.40 2004 12.23 13.89 333.78 2005 13.89 15.77 0.00 2006 15.77 17.97 0.00 2007 17.97 18.68 0.00 2008 18.68 10.86 0.00 2009 10.86 14.88 0.00 2010 14.88 16.89 0.00 2011 16.89 15.13 0.00 2012 15.13 17.95 0.00 PIMCO Total Return Investment Division (Class E)........ 2003 11.08 11.32 10,508.38 2004 11.32 11.62 1,870.39 2005 11.62 11.63 2,675.31 2006 11.63 11.90 2,464.08 2007 11.90 12.53 2,075.26 2008 12.53 12.30 485.72 2009 12.30 14.22 303.43 2010 14.22 15.05 143.46 2011 15.05 15.21 0.00 2012 15.21 16.25 0.00 RCM Tecnology Investment Division (Class E)............. 2003 2.92 4.49 31,466.68 2004 4.49 4.20 1,651.93 2005 4.20 4.57 0.00 2006 4.57 4.71 0.00 2007 4.71 6.07 0.00 2008 6.07 3.29 0.00 2009 3.29 5.13 0.00 2010 5.13 6.42 0.00 2011 6.42 5.65 0.00 2012 5.65 6.21 0.00
207
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Russell 2000(R) Index Investment Division (Class E). 2003 $ 9.05 $12.92 8,898.11 2004 12.92 14.84 537.77 2005 14.84 15.15 92.18 2006 15.15 17.44 0.00 2007 17.44 16.77 0.00 2008 16.77 10.89 0.00 2009 10.89 13.40 0.00 2010 13.40 16.59 0.00 2011 16.59 15.54 0.00 2012 15.54 17.64 0.00 T. Rowe Price Large Cap Growth Investment Division (Class E)......................................... 2003 8.41 10.73 5,604.29 2004 10.73 11.52 699.03 2005 11.52 11.99 1,556.13 2006 11.99 13.25 1,171.93 2007 13.25 14.15 994.56 2008 14.15 8.03 515.64 2009 8.03 11.24 394.44 2010 11.24 12.85 346.66 2011 12.85 12.41 346.76 2012 12.41 14.42 307.91 T. Rowe Price Mid Cap Growth Investment Division (Class E)......................................... 2003 4.48 5.99 12,477.81 2004 5.99 6.92 1,182.51 2005 6.92 7.75 0.00 2006 7.75 8.06 0.00 2007 8.06 9.27 0.00 2008 9.27 5.47 0.00 2009 5.47 7.78 0.00 2010 7.78 9.74 0.00 2011 9.74 9.36 0.00 2012 9.36 10.42 0.00 T. Rowe Price Small Cap Growth Investment Division (Class E)......................................... 2003 8.30 11.41 13,994.09 2004 11.41 12.39 607.24 2005 12.39 13.42 0.00 2006 13.42 13.61 0.00 2007 13.61 14.59 0.00 2008 14.59 9.09 0.00 2009 9.09 12.34 0.00 2010 12.34 16.25 0.00 2011 16.25 16.14 0.00 2012 16.14 18.31 0.00
208
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Western Asset Management Strategic Bond Opportunities Investment Division (Class E)....................... 2003 $15.98 $17.58 3,184.46 2004 17.58 18.30 1,318.55 2005 18.30 18.37 670.77 2006 18.37 18.83 0.00 2007 18.83 19.13 0.00 2008 19.13 15.87 0.00 2009 15.87 20.49 0.00 2010 20.49 22.56 0.00 2011 22.56 23.37 0.00 2012 23.37 25.43 0.00 Western Asset Management U.S Government Investment Division (Class E).................................. 2003 14.62 14.52 9,746.59 2004 14.52 14.59 971.63 2005 14.59 14.50 0.00 2006 14.50 14.74 0.00 2007 14.74 15.00 0.00 2008 15.00 14.61 0.00 2009 14.61 14.88 0.00 2010 14.88 15.37 0.00 2011 15.37 15.83 0.00 2012 15.83 15.96 0.00
209 GROUP I--PREFERENCE PLUS SELECT E SHARE AND AMERICAN FUNDS(R) CLASS 2 2.30 SEPARATE ACCOUNT CHARGE
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ American Funds Bond Investment Division+ (Class 2) (5/1/2006).......................................... 2006 $ 13.48 $ 14.05 2,260.99 2007 14.05 14.17 9,257.00 2008 14.17 12.53 7,101.80 2009 12.53 13.77 7,029.29 2010 13.77 14.30 4.73 2011 14.30 14.81 0.00 2012 14.81 15.23 0.00 American Funds Global Small Capitalization Investment Division+ (Class 2)................................. 2003 10.29 15.42 0.00 2004 15.42 18.19 13,630.80 2005 18.19 22.25 19,596.91 2006 22.25 26.94 24,763.77 2007 26.94 31.92 28,149.24 2008 31.92 14.47 23,694.86 2009 14.47 22.78 22,122.14 2010 22.78 27.21 6,180.50 2011 27.21 21.47 0.00 2012 21.47 24.76 0.00 American Funds Growth Investment Division+ (Class 2).. 2003 70.14 93.63 0.00 2004 93.63 102.78 11,491.63 2005 102.78 116.54 11,889.33 2006 116.54 125.35 12,469.33 2007 125.35 137.40 11,555.27 2008 137.40 75.11 10,853.89 2009 75.11 102.18 8,780.01 2010 102.18 118.33 1,750.10 2011 118.33 110.54 0.00 2012 110.54 127.14 0.00 American Funds Growth-Income Investment Division+ (Class 2)........................................... 2003 56.39 72.87 0.00 2004 72.87 78.48 11,225.16 2005 78.48 81.05 10,819.00 2006 81.05 91.12 13,217.06 2007 91.12 93.39 13,454.75 2008 93.39 56.63 10,951.54 2009 56.63 72.52 10,577.71 2010 72.52 78.85 2,314.64 2011 78.85 75.54 0.00 2012 75.54 86.59 0.00
210
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Baillie Gifford International Stock Investment Division (formerly Artio International Stock Investment Division) (Class E)................................................ 2003 $ 8.38 $10.47 0.00 2004 10.47 12.08 6,082.13 2005 12.08 13.90 5,258.45 2006 13.90 15.80 5,259.74 2007 15.80 17.01 3,521.03 2008 17.01 9.27 2,273.16 2009 9.27 11.06 2,143.16 2010 11.06 11.57 7.45 2011 11.57 9.04 0.00 2012 9.04 10.55 0.00 Barclays Capital Aggregate Bond Index Investment Division (Class E)................................................ 2003 11.92 12.05 0.00 2004 12.05 12.24 86,667.12 2005 12.24 12.21 121,422.56 2006 12.21 12.39 126,227.38 2007 12.39 12.92 118,169.13 2008 12.92 13.36 79,215.67 2009 13.36 13.72 69,343.08 2010 13.72 14.19 20,004.96 2011 14.19 14.89 0.00 2012 14.89 15.09 0.00 BlackRock Aggressive Growth Investment Division (Class E)................................................ 2003 21.56 29.63 0.00 2004 29.63 32.65 5,654.89 2005 32.65 35.28 6,672.87 2006 35.28 36.73 3,077.94 2007 36.73 43.21 2,537.74 2008 43.21 22.89 4,093.28 2009 22.89 33.38 3,514.33 2010 33.38 37.58 1,039.68 2011 37.58 35.55 0.00 2012 35.55 38.50 0.00 BlackRock Bond Income Investment Division (Class E)........ 2003 37.72 38.96 0.00 2004 38.96 39.70 4,986.18 2005 39.70 39.67 5,151.32 2006 39.67 40.43 4,469.32 2007 40.43 41.92 2,774.84 2008 41.92 39.51 1,401.60 2009 39.51 42.20 1,325.39 2010 42.20 44.61 251.27 2011 44.61 46.40 0.00 2012 46.40 48.68 0.00
211
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ BlackRock Diversified Investment Division (Class E)..... 2003 $26.49 $31.17 0.00 2004 31.17 32.99 14,472.06 2005 32.99 33.19 17,853.00 2006 33.19 35.79 14,006.47 2007 35.79 36.96 16,142.71 2008 36.96 27.14 16,098.19 2009 27.14 31.07 16,953.77 2010 31.07 33.23 1,465.17 2011 33.23 33.67 0.00 2012 33.67 36.90 0.00 BlackRock Large Cap Core Investment Division* (Class E). 2007 64.50 64.72 3,544.63 2008 64.72 39.68 3,420.61 2009 39.68 46.26 3,250.40 2010 46.26 50.94 1,284.02 2011 50.94 49.93 0.00 2012 49.93 55.42 0.00 BlackRock Large Cap Investment Division (Class E)....... 2003 40.18 51.07 0.00 2004 51.07 55.25 7,313.05 2005 55.25 55.86 6,248.30 2006 55.86 62.19 5,053.74 2007 62.19 65.05 0.00 BlackRock Large Cap Value Investment Division (Class E). 2003 7.87 10.42 0.00 2004 10.42 11.54 26,348.91 2005 11.54 11.92 24,565.40 2006 11.92 13.89 25,010.96 2007 13.89 14.01 30,856.76 2008 14.01 8.89 28,536.21 2009 8.89 9.66 22,955.58 2010 9.66 10.29 10,520.73 2011 10.29 10.27 0.00 2012 10.27 11.46 0.00 BlackRock Money Market Investment Division (Class E) (5/1/2003)............................................ 2003 18.93 18.72 82.45 2004 18.72 18.45 81.93 2005 18.45 18.52 81.33 2006 18.52 18.94 80.87 2007 18.94 19.42 80.25 2008 19.42 19.49 79.66 2009 19.49 19.11 79.05 2010 19.11 18.67 2.97 2011 18.67 18.25 0.00 2012 18.25 17.83 0.00
212
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Davis Venture Value Investment Division (Class E)...... 2003 $20.22 $25.83 0.00 2004 25.83 28.31 4,667.64 2005 28.31 30.47 5,414.13 2006 30.47 34.07 12,400.42 2007 34.07 34.77 12,614.06 2008 34.77 20.57 12,033.70 2009 20.57 26.50 10,838.38 2010 26.50 28.95 1,477.05 2011 28.95 27.11 0.00 2012 27.11 29.86 0.00 FI Value Leaders Investment Division (Class E)......... 2003 17.15 21.24 0.00 2004 21.24 23.58 3,149.62 2005 23.58 25.47 2,204.25 2006 25.47 27.82 1,498.51 2007 27.82 28.28 839.18 2008 28.28 16.85 245.49 2009 16.85 20.03 243.40 2010 20.03 22.39 39.92 2011 22.39 20.51 0.00 2012 20.51 23.16 0.00 Harris Oakmark International Investment Division (Class E)............................................ 2003 8.74 11.54 0.00 2004 11.54 13.61 1,149.03 2005 13.61 15.20 1,645.97 2006 15.20 19.16 6,411.51 2007 19.16 18.54 13,217.81 2008 18.54 10.72 9,951.27 2009 10.72 16.26 8,383.57 2010 16.26 18.52 6,189.93 2011 18.52 15.54 0.00 2012 15.54 19.63 0.00 Invesco Small Cap Growth Investment Division (Class E). 2003 8.39 11.41 0.00 2004 11.41 11.88 5,429.33 2005 11.88 12.59 5,607.48 2006 12.59 14.06 5,493.64 2007 14.06 15.28 5,262.38 2008 15.28 9.15 5,258.44 2009 9.15 11.98 5,257.85 2010 11.98 14.79 2,611.62 2011 14.79 14.31 0.00 2012 14.31 16.55 0.00 Jennison Growth Investment Division (Class E).......... 2005 3.89 4.65 599.63 2006 4.65 4.66 18,445.35 2007 4.66 5.08 310.35 2008 5.08 3.15 309.75 2009 3.15 4.30 309.75 2010 4.30 4.69 4.44 2011 4.69 4.60 0.00 2012 4.60 5.19 0.00
213
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Jennison Growth Investment Division (Class E) (formerly Met/Putnam Voyager Investment Division)....... 2003 $ 3.36 $ 4.13 0.00 2004 4.13 4.22 652.81 2005 4.22 3.85 638.13 Legg Mason ClearBridge Aggressive Growth Investment Division (Class E)...................................... 2003 5.46 6.62 0.00 2004 6.62 7.02 2,486.07 2005 7.02 7.80 3,875.29 2006 7.80 7.50 3,545.85 2007 7.50 7.50 3,572.46 2008 7.50 4.47 3,194.27 2009 4.47 5.82 3,192.25 2010 5.82 7.04 3.58 2011 7.04 7.12 0.00 2012 7.12 8.25 0.00 Legg Mason ClearBridge Aggressive Growth Investment Division (Class E)...................................... 2006 8.85 9.44 329.54 2007 9.44 8.68 784.70 2008 8.68 3.85 328.14 2009 3.85 5.19 152.52 2010 5.19 5.45 7.31 2011 5.45 5.78 0.00 Legg Mason Partners Aggressive Growth Investment Division (formerly Janus Growth Investment Division) (Class E)... 2003 5.21 5.46 0.00 Legg Mason Value Equity Investment Division (Class E) (formerly MFS(R) Investors Trust Investment Division)... 2003 6.31 7.49 0.00 2004 7.49 8.14 2,560.51 2005 8.14 8.53 649.63 2006 8.53 8.89 330.20 Loomis Sayles Small Cap Core Investment Division (Class E)............................................... 2003 16.05 21.38 0.00 2004 21.38 24.28 179.83 2005 24.28 25.34 747.23 2006 25.34 28.85 2,780.35 2007 28.85 31.50 5,193.80 2008 31.50 19.70 3,570.26 2009 19.70 25.04 3,505.53 2010 25.04 31.16 119.50 2011 31.16 30.59 0.00 2012 30.59 34.19 0.00
214
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Loomis Sayles Small Cap Growth Investment Division (Class E)............................................. 2003 $ 6.16 $ 8.71 0.00 2004 8.71 9.47 5,267.43 2005 9.47 9.67 5,222.81 2006 9.67 10.38 7,095.54 2007 10.38 10.60 12,101.08 2008 10.60 6.07 5,283.40 2009 6.07 7.71 3,375.21 2010 7.71 9.91 6.08 2011 9.91 9.97 0.00 2012 9.97 10.81 0.00 Lord Abbett Bond Debenture Investment Division (Class E)............................................. 2003 9.94 11.59 0.00 2004 11.59 12.26 6,995.83 2005 12.26 12.18 9,349.84 2006 12.18 12.99 10,749.06 2007 12.99 13.55 13,210.27 2008 13.55 10.79 10,001.41 2009 10.79 14.43 6,152.15 2010 14.43 15.94 264.66 2011 15.94 16.31 0.00 2012 16.31 18.01 0.00 Lord Abbett Mid Cap Value Investment Division (Class E). 2012 22.79 23.30 0.00 Lord Abbett Mid Cap Value Investment Division (Class E) (formerly Neuberger Berman Mid Cap Value Investment Division (Class E))................................... 2003 12.92 17.22 0.00 2004 17.22 20.66 15,846.40 2005 20.66 22.63 25,255.67 2006 22.63 24.61 27,257.58 2007 24.61 24.84 28,604.87 2008 24.84 12.77 23,897.67 2009 12.77 18.44 24,459.06 2010 18.44 22.74 6,960.45 2011 22.74 20.77 0.00 2012 20.77 22.90 0.00 Met/Artisan Mid Cap Value Investment Division (Class E). 2003 21.61 27.98 0.00 2004 27.98 30.01 10,585.04 2005 30.01 32.21 12,752.37 2006 32.21 35.35 13,359.55 2007 35.35 32.13 12,058.79 2008 32.13 16.93 9,227.36 2009 16.93 23.38 9,514.53 2010 23.38 26.25 3,485.99 2011 26.25 27.34 0.00 2012 27.34 29.84 0.00
215
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ MetLife Mid Cap Stock Index Investment Division (Class E)....................................... 2003 $ 8.45 $11.14 0.00 2004 11.14 12.61 18,576.62 2005 12.61 13.82 18,971.32 2006 13.82 14.84 20,242.27 2007 14.84 15.61 24,468.60 2008 15.61 9.71 21,241.31 2009 9.71 13.00 15,953.73 2010 13.00 16.02 2,839.34 2011 16.02 15.33 0.00 2012 15.33 17.59 0.00 MetLife Stock Index Investment Division (Class E). 2003 24.56 30.72 0.00 2004 30.72 33.14 51,659.02 2005 33.14 33.84 61,469.18 2006 33.84 38.13 61,955.55 2007 38.13 39.14 60,082.79 2008 39.14 24.03 66,198.66 2009 24.03 29.60 54,131.11 2010 29.60 33.15 14,968.51 2011 33.15 32.95 0.00 2012 32.95 37.21 0.00 MFS(R) Research International Investment Division (Class E)....................................... 2003 7.18 9.27 0.00 2004 9.27 10.84 2,973.62 2005 10.84 12.35 2,874.17 2006 12.35 15.30 6,712.41 2007 15.30 16.95 14,077.15 2008 16.95 9.55 10,381.44 2009 9.55 12.30 5,882.28 2010 12.30 13.41 310.78 2011 13.41 11.71 0.00 2012 11.71 13.37 0.00 MFS(R) Total Return Investment Division (Class E) (5/1/2004)...................................... 2004 31.54 34.09 166.11 2005 34.09 34.27 847.21 2006 34.27 37.49 504.29 2007 37.49 38.14 8,629.69 2008 38.14 28.94 6,112.80 2009 28.94 33.46 6,808.48 2010 33.46 35.90 2,357.63 2011 35.90 35.84 132.21 2012 35.84 38.99 0.00
216
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ MFS(R) Value Investment Division (Class E)............... 2003 $ 9.35 $11.46 0.00 2004 11.46 12.46 34,994.12 2005 12.46 11.99 34,085.81 2006 11.99 13.82 38,903.26 2007 13.82 12.97 32,180.58 2008 12.97 8.41 30,478.50 2009 8.41 9.92 24,513.24 2010 9.92 10.79 6,500.75 2011 10.79 10.63 0.00 2012 10.63 12.09 0.00 MLA Mid Cap Investment Division (formerly Lazard Mid Cap Investment Division) (Class E).............................................. 2003 9.57 11.82 0.00 2004 11.82 13.21 6,752.57 2005 13.21 13.98 4,932.66 2006 13.98 15.68 7,214.70 2007 15.68 14.91 10,961.23 2008 14.91 9.00 5,828.73 2009 9.00 12.04 4,819.59 2010 12.04 14.48 2,384.21 2011 14.48 13.41 0.00 2012 13.41 13.81 0.00 MSCI EAFE(R) Index Investment Division (formerly Morgan Stanley EAFE(R) Index Investment Division) (Class E).................................... 2003 6.81 9.14 0.00 2004 9.14 10.67 37,651.95 2005 10.67 11.79 40,735.18 2006 11.79 14.48 43,810.10 2007 14.48 15.64 43,124.87 2008 15.64 8.84 34,166.97 2009 8.84 11.10 28,472.54 2010 11.10 11.72 7,171.52 2011 11.72 10.01 0.00 2012 10.01 11.56 0.00 Morgan Stanley Mid Cap Growth Investment Division (Class E).............................................. 2010 11.68 13.49 3,110.29 2011 13.49 12.28 0.00 2012 12.28 13.13 0.00 Morgan Stanley Mid Cap Growth Investment Division (formerly FI Mid Cap Opportunities Investment Division (Class E))............................................. 2003 10.39 13.66 0.00 2004 13.66 15.62 15,648.31 2005 15.62 16.29 15,342.07 2006 16.29 17.78 11,503.36 2007 17.78 18.80 8,808.99 2008 18.80 8.19 9,063.38 2009 8.19 10.71 6,659.68 2010 10.71 11.55 0.00
217
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Neuberger Berman Genesis Investment Division (Class E).. 2003 $10.58 $15.50 0.00 2004 15.50 17.45 10,020.09 2005 17.45 17.72 42,291.40 2006 17.72 20.21 42,799.56 2007 20.21 19.04 40,437.15 2008 19.04 11.44 30,847.28 2009 11.44 12.62 29,630.29 2010 12.62 14.98 10,291.09 2011 14.98 15.46 0.00 2012 15.46 16.60 0.00 Oppenheimer Global Equity Investment Division (Class E). 2003 9.57 12.19 0.00 2004 12.19 13.84 7,466.42 2005 13.84 15.70 8,390.67 2006 15.70 17.88 8,151.32 2007 17.88 18.58 9,601.04 2008 18.58 10.80 3,894.39 2009 10.80 14.78 3,721.25 2010 14.78 16.77 504.90 2011 16.77 15.02 0.00 2012 15.02 17.81 0.00 PIMCO Total Return Investment Division (Class E)........ 2003 11.07 11.30 0.00 2004 11.30 11.60 36,703.08 2005 11.60 11.60 38,426.76 2006 11.60 11.87 36,286.35 2007 11.87 12.48 34,625.35 2008 12.48 12.26 30,494.01 2009 12.26 14.16 28,601.70 2010 14.16 14.98 6,567.68 2011 14.98 15.13 0.00 2012 15.13 16.16 0.00 RCM Tecnology Investment Division (Class E)............. 2003 2.92 4.49 0.00 2004 4.49 4.20 43,636.13 2005 4.20 4.56 41,257.74 2006 4.56 4.69 20,737.14 2007 4.69 6.05 10,501.01 2008 6.05 3.28 12,493.01 2009 3.28 5.11 4,535.60 2010 5.11 6.38 1,603.83 2011 6.38 5.62 0.00 2012 5.62 6.17 0.00
218
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Russell 2000(R) Index Investment Division (Class E). 2003 $ 9.03 $12.88 0.00 2004 12.88 14.79 15,388.66 2005 14.79 15.10 22,958.28 2006 15.10 17.37 18,641.35 2007 17.37 16.69 21,158.37 2008 16.69 10.83 18,970.10 2009 10.83 13.32 16,825.30 2010 13.32 16.49 6,716.64 2011 16.49 15.44 0.00 2012 15.44 17.52 0.00 T. Rowe Price Large Cap Growth Investment Division (Class E)......................................... 2003 8.39 10.71 0.00 2004 10.71 11.49 14,099.77 2005 11.49 11.95 15,396.07 2006 11.95 13.20 13,072.52 2007 13.20 14.09 10,313.66 2008 14.09 7.99 9,079.63 2009 7.99 11.18 9,598.42 2010 11.18 12.77 144.32 2011 12.77 12.33 0.00 2012 12.33 14.31 0.00 T. Rowe Price Mid Cap Growth Investment Division (Class E)......................................... 2003 4.47 5.98 0.00 2004 5.98 6.90 25,770.94 2005 6.90 7.73 26,728.47 2006 7.73 8.04 21,651.21 2007 8.04 9.24 30,980.43 2008 9.24 5.45 14,394.59 2009 5.45 7.75 12,734.05 2010 7.75 9.69 3,584.79 2011 9.69 9.31 0.00 2012 9.31 10.36 0.00 T. Rowe Price Small Cap Growth Investment Division (Class E)......................................... 2003 8.27 11.37 0.00 2004 11.37 12.34 14,579.41 2005 12.34 13.36 17,507.06 2006 13.36 13.54 17,429.19 2007 13.54 14.51 13,359.56 2008 14.51 9.04 6,127.32 2009 9.04 12.26 3,719.73 2010 12.26 16.14 642.58 2011 16.14 16.02 0.00 2012 16.02 18.17 0.00
219
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Western Asset Management Strategic Bond Opportunities Investment Division (Class E)....................... 2003 $15.91 $17.50 0.00 2004 17.50 18.20 32,653.31 2005 18.20 18.27 34,359.82 2006 18.27 18.72 32,363.62 2007 18.72 19.00 31,801.74 2008 19.00 15.76 26,188.70 2009 15.76 20.33 20,103.85 2010 20.33 22.38 8,125.89 2011 22.38 23.17 0.00 2012 23.17 25.20 0.00 Western Asset Management U.S Government Investment Division (Class E).................................. 2003 14.56 14.45 0.00 2004 14.45 14.52 7,489.64 2005 14.52 14.41 7,765.52 2006 14.41 14.65 8,118.00 2007 14.65 14.90 4,958.70 2008 14.90 14.50 2,210.16 2009 14.50 14.77 2,099.48 2010 14.77 15.25 479.03 2011 15.25 15.69 0.00 2012 15.69 15.81 0.00
-------- The assets of the Lord Abbett Mid Cap Value Investment Division (formerly the Neuberger Berman Mid Cap Value Division) of the Metropolitan Fund were merged into the Lord Abbett Mid Cap Value Investment Division of the Met Investors Fund on April 30, 2012. Accumulation Unit Values prior to April 30, 2012 are those of the Lord Abbett Mid Cap Value Investment Division of the Metropolitan Fund. The assets of Legg Mason Value Equity Investment Division of the Met Investors Fund were merged into the Legg Mason ClearBridge Aggressive Growth Investment Division of the Met Investors Fund on May 2, 2011. Accumulation Unit Values prior to May 2, 2011 are those of the Legg Mason Value Equity Investment Division. The assets of FI Mid Cap Opportunities Investment Division of the Metropolitan Fund were merged into the Morgan Stanley Mid Cap Growth Investment Division of the Met Investors Fund on May 3, 2010. Accumulation Unit Values prior to May 3, 2010 are those of FI Mid Cap Opportunities Investment Division. The assets of BlackRock Large Cap Investment Division (formerly BlackRock Investment Trust Investment Division) of the Metropolitan Fund were merged into the BlackRock Large Cap Core Investment Division of the Met Investors Fund on April 30, 2007. Accumulation Unit Values prior to April 30, 2007 are those of the BlackRock Large Cap Investment Division. The assets of the MFS(R) Investors Trust Investment Division of the Metropolitan Fund were merged into the Legg Mason Value Equity Investment Division of the Met Investors Fund prior to the opening of business on May 1, 2006. Accumulation Unit Values prior to May 1, 2006 are those of MFS(R) Investors Trust Investment Division. The assets in Met/Putnam Voyager Investment Division of the Metropolitan Fund were merged into Jennison Growth Investment Division of the Metropolitan Fund prior to the opening of business on May 2, 2005. The Met/Putnam Voyager Investment Division is no longer available. The Investment Division of the Metropolitan Fund with the name FI Mid Cap Opportunities was merged into the Janus Mid Cap Investment Division of the Metropolitan Fund prior to the opening of business on May 3, 2004 and was renamed FI Mid Cap Opportunities. The Investment Division with the name FI Mid Cap Opportunities on April 30, 2004 ceased to exist. The Accumulated Unit Values history prior to May 1, 2004 is that of the Janus Mid Cap Investment Division. 220 The assets of the Janus Growth Investment Division of the Metropolitan Fund were merged into the Janus Aggressive Growth Investment Division of the Met Investors Fund on April 28, 2003. Accumulation Unit Values prior to April 28, 2003 are those of Janus Growth Investment Division. * We are waiving a portion of the Separate Account charge for the Investment Division investing in the BlackRock Large Cap Core Portfolio. + The Accumulation Unit Values for this American Funds(R) Investment Division are calculated with an additional .15% Separate Account charge which was in effect prior to May 1, 2004. Please see the Table of Expenses for more information. 221 PREFERENCE PLUS SELECT DEFERRED ANNUITIES GROUP II 1.45 SEPARATE ACCOUNT CHARGE
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ AllianceBernstein Global Dynamic Allocation Investment Division (Class B) (4/30/2012)............................................... 2012 $ 10.21 $ 10.55 2,926,135.30 American Funds(R) Balanced Allocation Investment Division (Class C) (4/28/2008)......................................................... 2008 10.00 7.00 902,840.18 2009 7.00 8.93 1,879,830.36 2010 8.93 9.87 3,099,209.45 2011 9.87 9.52 3,313,456.04 2012 9.52 10.66 3,187,551.86 American Funds Bond Investment Division+ (Class 2) (5/1/2006)......... 2006 14.56 15.26 28,569.70 2007 15.26 15.52 149,814.19 2008 15.52 13.84 47,001.89 2009 13.84 15.34 44,475.29 2010 15.34 16.07 36,490.00 2011 16.07 16.78 22,553.70 2012 16.78 17.40 17,940.74 American Funds Global Small Capitalization Investment Division+ (Class 2)........................................................... 2003 10.71 16.18 107,784.55 2004 16.18 19.25 281,007.79 2005 19.25 23.75 313,233.26 2006 23.75 29.00 270,716.25 2007 29.00 34.66 293,038.02 2008 34.66 15.85 229,143.49 2009 15.85 25.16 215,741.06 2010 25.16 30.31 201,537.32 2011 30.31 24.12 184,596.10 2012 24.12 28.05 148,646.50 American Funds(R) Growth Allocation Investment Division (Class C) (4/28/2008)......................................................... 2008 9.99 6.35 951,986.85 2009 6.35 8.39 2,027,386.32 2010 8.39 9.39 2,250,153.60 2011 9.39 8.82 2,155,405.09 2012 8.82 10.09 1,902,389.97 American Funds Growth Investment Division+ (Class 2).................. 2003 82.36 110.90 46,696.36 2004 110.90 122.77 112,711.09 2005 122.77 140.39 113,022.31 2006 140.39 152.29 108,746.95 2007 152.29 168.36 99,935.58 2008 168.36 92.82 86,140.60 2009 92.82 127.36 76,883.79 2010 127.36 148.75 76,604.81 2011 148.75 140.13 68,947.90 2012 140.13 162.57 57,125.17
222
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ American Funds Growth-Income Investment Division+ (Class 2)........... 2003 $ 66.22 $ 86.30 59,813.89 2004 86.30 93.74 130,811.15 2005 93.74 97.64 124,289.21 2006 97.64 110.70 117,188.16 2007 110.70 114.43 111,462.86 2008 114.43 69.98 96,246.95 2009 69.98 90.39 83,532.89 2010 90.39 99.12 87,048.37 2011 99.12 95.76 75,148.47 2012 95.76 110.71 62,226.93 American Funds(R) Moderate Allocation Investment Division (Class C) (4/28/2008)......................................................... 2008 10.01 7.68 1,040,343.40 2009 7.68 9.34 3,613,034.73 2010 9.34 10.12 5,412,835.82 2011 10.12 9.99 6,023,795.43 2012 9.99 10.91 5,991,561.61 AQR Global Risk Balanced Investment Division (Class B) (4/30/2012).... 2012 11.14 11.55 4,042,465.08 Baillie Gifford International Stock Investment Division (formerly Artio International Stock Investment Division) (Class B)............ 2004 11.74 13.41 31,071.51 2005 13.41 15.54 194,302.45 2006 15.54 17.80 244,655.17 2007 17.80 19.31 334,722.48 2008 19.31 10.61 492,190.98 2009 10.61 12.75 458,617.32 2010 12.75 13.42 463,014.81 2011 13.42 10.57 500,619.17 2012 10.57 12.43 456,862.29 Barclays Capital Aggregate Bond Index Investment Division (Class B)... 2004 12.37 12.73 668,226.09 2005 12.73 12.78 1,896,429.33 2006 12.78 13.08 2,673,800.30 2007 13.08 13.75 3,352,747.46 2008 13.75 14.31 2,990,967.30 2009 14.31 14.81 3,426,971.26 2010 14.81 15.43 3,995,494.39 2011 15.43 16.31 4,173,734.13 2012 16.31 16.66 4,398,212.21
223
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ BlackRock Aggressive Growth Investment Division (Class B)............. 2004 $33.29 $36.90 9,171.65 2005 36.90 40.17 29,020.24 2006 40.17 42.15 45,298.95 2007 42.15 49.95 86,656.33 2008 49.95 26.66 110,017.34 2009 26.66 39.17 129,389.63 2010 39.17 44.39 136,179.42 2011 44.39 42.34 132,375.01 2012 42.34 46.19 133,269.52 BlackRock Bond Income Investment Division (Class B)................... 2004 42.85 44.37 63,346.17 2005 44.37 44.68 168,613.16 2006 44.68 45.86 267,332.39 2007 45.86 47.92 346,047.09 2008 47.92 45.50 297,979.32 2009 45.50 48.96 343,585.03 2010 48.96 52.15 414,581.64 2011 52.15 54.64 399,462.79 2012 54.64 57.77 396,075.88 BlackRock Diversified Investment Division (Class B)................... 2004 35.01 37.76 48,978.29 2005 37.76 38.27 107,556.94 2006 38.27 41.59 161,168.36 2007 41.59 43.29 213,758.06 2008 43.29 32.01 225,676.47 2009 32.01 36.91 232,343.23 2010 36.91 39.77 220,295.64 2011 39.77 40.61 207,842.50 2012 40.61 44.87 197,932.27 BlackRock Global Tactical Strategies Investment Division (Class B) (4/30/2012)......................................................... 2012 9.96 10.28 4,561,809.47 BlackRock Large Cap Core Investment Division* (Class B)............... 2007 77.17 77.81 63,747.92 2008 77.81 48.07 75,131.06 2009 48.07 56.48 75,653.33 2010 56.48 62.60 72,552.76 2011 62.60 61.85 74,751.61 2012 61.85 69.14 65,177.50 BlackRock Large Cap Investment Division (Class B)..................... 2004 58.88 64.96 17,500.19 2005 64.96 66.15 26,981.97 2006 66.15 74.22 38,546.99 2007 74.22 77.82 0.00
224
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ BlackRock Large Cap Value Investment Division (Class B)............... 2004 $10.68 $11.77 140,182.82 2005 11.77 12.25 298,809.48 2006 12.25 14.38 674,818.56 2007 14.38 14.62 913,871.38 2008 14.62 9.35 920,284.41 2009 9.35 10.23 1,063,198.34 2010 10.23 10.99 1,164,582.93 2011 10.99 11.05 1,180,555.02 2012 11.05 12.41 1,145,938.85 BlackRock Legacy Large Cap Growth Investment Division (Class B)....... 2004 23.08 25.28 19,084.11 2005 25.28 26.60 58,013.48 2006 26.60 27.24 73,887.06 2007 27.24 31.79 177,230.08 2008 31.79 19.83 186,843.17 2009 19.83 26.69 261,886.10 2010 26.69 31.43 285,585.27 2011 31.43 28.14 349,149.32 2012 28.14 31.63 317,405.84 BlackRock Legacy Large Cap Growth Investment Division--Class B (formerly FI Large Cap Investment Division (5/1/2006))............ 2006 17.00 17.20 12,761.12 2007 17.20 17.58 24,685.82 2008 17.58 9.53 48,066.87 2009 9.53 9.93 0.00 BlackRock Money Market Investment Division (Class B).................. 2004 21.74 21.65 29,117.65 2005 21.65 21.91 44,768.30 2006 21.91 22.57 49,073.26 2007 22.57 23.32 67,046.30 2008 23.32 23.58 226,643.43 2009 23.58 23.30 241,628.46 2010 23.30 22.96 313,407.10 2011 22.96 22.63 353,516.24 2012 22.63 22.31 351,871.60 Clarion Global Real Estate Investment Division (Class B).............. 2004 9.99 12.82 390,438.35 2005 12.82 14.32 802,856.22 2006 14.32 19.42 1,419,794.34 2007 19.42 16.27 1,333,509.25 2008 16.27 9.35 1,306,547.14 2009 9.35 12.42 1,296,324.92 2010 12.42 14.21 1,323,704.72 2011 14.21 13.22 1,330,824.80 2012 13.22 16.42 1,207,525.70
225
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Davis Venture Value Investment Division (Class B)..................... 2004 $ 28.43 $ 30.59 83,443.97 2005 30.59 33.16 329,730.90 2006 33.16 37.37 611,137.26 2007 37.37 38.43 788,983.77 2008 38.43 22.90 852,417.84 2009 22.90 29.72 965,850.92 2010 29.72 32.72 1,066,301.29 2011 32.72 30.88 1,042,758.28 2012 30.88 34.27 972,821.16 FI Value Leaders Investment Division (Class B)........................ 2004 22.88 25.80 12,616.37 2005 25.80 28.08 78,749.95 2006 28.08 30.91 171,503.92 2007 30.91 31.66 192,765.82 2008 31.66 19.00 188,347.16 2009 19.00 22.75 187,848.64 2010 22.75 25.63 187,016.80 2011 25.63 23.65 164,994.89 2012 23.65 26.91 157,764.26 Harris Oakmark International Investment Division (Class B)............ 2004 12.01 13.94 90,474.92 2005 13.94 15.70 363,737.05 2006 15.70 19.94 717,277.72 2007 19.94 19.43 898,238.20 2008 19.43 11.32 720,678.05 2009 11.32 17.30 850,366.46 2010 17.30 19.85 1,061,823.08 2011 19.85 16.78 1,181,783.78 2012 16.78 21.37 1,075,490.80 Invesco Balanced-Risk Allocation Investment Division (Class B) (4/30/2012)......................................................... 2012 1.01 1.04 8,629,951.35 Invesco Small Cap Growth Investment Division (Class B)................ 2004 11.34 12.15 13,753.87 2005 12.15 12.97 63,998.93 2006 12.97 14.60 102,207.32 2007 14.60 15.98 115,997.43 2008 15.98 9.65 125,549.28 2009 9.65 12.72 157,451.28 2010 12.72 15.83 151,252.86 2011 15.83 15.43 165,431.97 2012 15.43 17.98 148,820.52 Janus Forty Investment Division (Class B) (4/30/2007)................. 2007 144.01 176.60 23,410.63 2008 176.60 100.95 96,407.34 2009 100.95 142.14 155,634.97 2010 142.14 153.26 179,103.98 2011 153.26 139.66 174,889.46 2012 139.66 168.63 161,181.06
226
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Jennison Growth Investment Division (Class B)......................... 2005 $ 4.05 $ 4.87 83,621.23 2006 4.87 4.92 158,043.25 2007 4.92 5.40 251,056.93 2008 5.40 3.38 250,285.03 2009 3.38 4.65 565,658.19 2010 4.65 5.10 963,957.09 2011 5.10 5.04 1,250,011.20 2012 5.04 5.74 2,042,580.49 Jennison Growth Investment Division (formerly Met/Putnam Voyager Investment Division) (Class B)...................................... 2004 4.21 4.40 23,883.88 2005 4.40 4.01 44,635.34 Jennison Growth Investment Division (formerly Oppenheimer Capital Appreciation Investment Division) (Class B) (5/1/2005).............. 2005 7.93 8.60 24,431.42 2006 8.60 9.13 100,408.26 2007 9.13 10.28 184,491.43 2008 10.28 5.47 293,344.46 2009 5.47 7.76 431,520.86 2010 7.76 8.36 541,405.36 2011 8.36 8.13 538,585.95 2012 8.13 9.14 0.00 JPMorgan Global Active Allocation Investment Division (Class B) (4/30/2012)......................................................... 2012 1.01 1.04 6,485,546.48 Legg Mason ClearBridge Aggressive Growth Investment Division (Class B) 2004 6.59 7.16 8,682.60 2005 7.16 8.02 40,889.72 2006 8.02 7.76 115,308.91 2007 7.76 7.82 133,936.45 2008 7.82 4.70 103,195.76 2009 4.70 6.16 158,051.68 2010 6.16 7.51 174,158.54 2011 7.51 7.65 660,360.01 2012 7.65 8.93 657,588.80 Legg Mason ClearBridge Aggressive Growth Investment Division (formerly Legg Mason Value Equity Investment Division) (Class B)........................................................... 2006 9.32 9.99 168,295.77 2007 9.99 9.26 212,296.75 2008 9.26 4.14 235,954.50 2009 4.14 5.63 286,358.52 2010 5.63 5.96 412,437.26 2011 5.96 6.33 0.00 Legg Mason Value Equity Investment Division (formerly MFS(R) Investors Trust Investment Division) (Class B)...................... 2004 7.67 8.50 7,108.64 2005 8.50 8.95 54,221.16 2006 8.95 9.35 78,662.90
227
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Loomis Sayles Small Cap Core Investment Division (Class B)............ 2004 $23.30 $26.39 14,801.09 2005 26.39 27.75 55,997.97 2006 27.75 31.83 129,405.41 2007 31.83 35.02 205,151.24 2008 35.02 22.07 206,036.26 2009 22.07 28.26 227,229.30 2010 28.26 35.43 224,643.04 2011 35.43 35.04 217,256.18 2012 35.04 39.47 197,627.20 Loomis Sayles Small Cap Growth Investment Division (Class B).......... 2004 8.79 9.73 35,889.71 2005 9.73 10.01 67,082.71 2006 10.01 10.83 100,972.63 2007 10.83 11.13 147,707.44 2008 11.13 6.44 191,301.13 2009 6.44 8.23 236,137.48 2010 8.23 10.66 196,903.89 2011 10.66 10.79 194,491.72 2012 10.79 11.79 175,148.87 Lord Abbett Bond Debenture Investment Division (Class B).............. 2004 15.88 16.92 99,018.73 2005 16.92 16.92 302,636.36 2006 16.92 18.21 508,215.16 2007 18.21 19.12 705,153.05 2008 19.12 15.34 703,691.97 2009 15.34 20.68 799,419.27 2010 20.68 23.02 899,615.77 2011 23.02 23.70 929,050.20 2012 23.70 26.39 889,209.15 Lord Abbett Mid Cap Value Investment Division (Class B)............... 2012 25.15 25.85 858,449.46 Lord Abbett Mid Cap Value Investment Division (Class B) (formerly Neuberger Berman Mid Cap Value Investment Division (Class B))....... 2004 18.50 21.58 159,176.32 2005 21.58 23.81 515,610.17 2006 23.81 26.09 752,463.93 2007 26.09 26.54 854,405.39 2008 26.54 13.73 879,279.15 2009 13.73 20.00 871,062.72 2010 20.00 24.85 929,780.66 2011 24.85 22.86 952,078.56 2012 22.86 25.27 0.00
228
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Met/Artisan Mid Cap Value Investment Division (Class B)............... 2004 $29.95 $32.49 61,962.42 2005 32.49 35.13 219,124.92 2006 35.13 38.85 299,230.02 2007 38.85 35.57 304,687.83 2008 35.57 18.88 261,327.40 2009 18.88 26.28 258,728.89 2010 26.28 29.73 252,011.51 2011 29.73 31.20 262,737.90 2012 31.20 34.31 244,245.87 Met/Franklin Income Investment Division (Class B) (4/28/2008)......... 2008 9.99 7.98 45,803.80 2009 7.98 10.05 117,734.00 2010 10.05 11.08 295,666.38 2011 11.08 11.15 425,592.19 2012 11.15 12.37 416,458.13 Met/Franklin Low Duration Total Return Investment Division (Class B) (5/2/2011).......................................................... 2011 9.98 9.76 40,149.93 2012 9.76 10.04 94,628.08 Met/Franklin Mutual Shares Investment Division (Class B) (4/28/2008).. 2008 9.99 6.59 53,503.25 2009 6.59 8.12 115,902.89 2010 8.12 8.88 222,871.22 2011 8.88 8.71 285,032.99 2012 8.71 9.77 282,179.95 Met/Franklin Templeton Founding Strategy Investment Division (Class B) (4/28/2008)...................................................... 2008 9.99 7.03 222,938.17 2009 7.03 8.90 409,918.32 2010 8.90 9.66 406,328.64 2011 9.66 9.35 392,549.81 2012 9.35 10.70 371,044.59 Met/Templeton Growth Investment Division (Class B) (4/28/2008)........ 2008 9.99 6.56 25,839.17 2009 6.56 8.58 80,565.40 2010 8.58 9.10 142,671.40 2011 9.10 8.35 206,905.28 2012 8.35 10.06 210,755.65 MetLife Aggressive Strategy Investment Division....................... 2011 12.12 10.38 775,315.08 2012 10.38 11.94 654,096.70 MetLife Aggressive Strategy Investment Division (formerly MetLife Aggressive Allocation Investment Division) (Class B)................ 2005 9.99 11.14 64,461.86 2006 11.14 12.70 337,483.11 2007 12.70 12.93 618,837.35 2008 12.93 7.59 507,161.07 2009 7.59 9.83 638,241.17 2010 9.83 11.21 687,375.82 2011 11.21 12.16 0.00
229
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------- MetLife Balanced Plus Investment Division (Class B) (4/30/2012)....... 2012 $ 9.99 $10.45 4,458,350.10 MetLife Conservative Allocation Investment Division (Class B) (5/1/2005).......................................................... 2005 9.99 10.29 30,351.09 2006 10.29 10.84 190,487.84 2007 10.84 11.28 649,650.54 2008 11.28 9.52 1,348,550.66 2009 9.52 11.31 1,764,144.75 2010 11.31 12.27 2,221,204.41 2011 12.27 12.48 2,504,571.13 2012 12.48 13.43 2,818,239.91 MetLife Conservative to Moderate Allocation Investment Division (Class B) (5/1/2005)................................................ 2005 9.99 10.51 390,314.31 2006 10.51 11.33 1,573,474.05 2007 11.33 11.71 3,547,905.91 2008 11.71 9.05 4,806,715.49 2009 9.05 11.03 5,848,119.36 2010 11.03 12.12 7,008,542.55 2011 12.12 12.07 7,475,816.82 2012 12.07 13.26 7,656,285.76 MetLife Mid Cap Stock Index Investment Division (Class B)............. 2004 11.63 13.02 153,800.52 2005 13.02 14.37 379,788.64 2006 14.37 15.56 557,366.25 2007 15.56 16.49 750,891.70 2008 16.49 10.34 848,571.17 2009 10.34 13.94 922,395.40 2010 13.94 17.31 981,790.09 2011 17.31 16.68 1,068,023.86 2012 16.68 19.29 1,061,147.98 MetLife Moderate Allocation Investment Division (Class B) (5/1/2005).. 2005 9.99 10.74 685,019.49 2006 10.74 11.84 3,888,509.84 2007 11.84 12.18 10,064,675.95 2008 12.18 8.56 12,353,978.93 2009 8.56 10.68 16,569,242.58 2010 10.68 11.91 21,034,060.57 2011 11.91 11.58 22,147,558.60 2012 11.58 12.92 21,780,778.59 MetLife Moderate to Aggressive Allocation Investment Division (Class B) (5/1/2005)................................................ 2005 9.99 10.97 350,604.48 2006 10.97 12.35 2,935,761.18 2007 12.35 12.64 7,696,826.74 2008 12.64 8.08 9,421,701.73 2009 8.08 10.28 11,081,050.90 2010 10.28 11.62 10,804,940.65 2011 11.62 11.02 10,096,614.72 2012 11.02 12.53 9,083,118.91
230
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ MetLife Stock Index Investment Division (Class B)..................... 2004 $33.67 $36.47 338,133.17 2005 36.47 37.52 904,449.90 2006 37.52 42.60 1,185,840.81 2007 42.60 44.07 1,572,342.77 2008 44.07 27.25 1,892,748.62 2009 27.25 33.82 1,991,100.45 2010 33.82 38.17 2,169,883.98 2011 38.17 38.23 2,276,452.07 2012 38.23 43.49 2,156,879.22 MFS(R) Research International Investment Division (Class B)........... 2004 9.73 11.16 34,584.24 2005 11.16 12.81 204,951.18 2006 12.81 15.98 379,159.42 2007 15.98 17.85 484,949.14 2008 17.85 10.13 815,884.26 2009 10.13 13.14 850,345.69 2010 13.14 14.43 865,495.87 2011 14.43 12.70 843,429.54 2012 12.70 14.61 773,041.51 MFS(R) Total Return Investment Division (Class B)..................... 2004 36.45 39.62 17,149.94 2005 39.62 40.16 50,509.77 2006 40.16 44.31 71,124.70 2007 44.31 45.47 114,974.67 2008 45.47 34.80 86,913.95 2009 34.80 40.57 110,222.67 2010 40.57 43.91 119,511.53 2011 43.91 44.21 126,149.10 2012 44.21 48.50 116,717.03 MFS(R) Value Investment Division (Class B)............................ 2004 12.10 13.05 259,038.50 2005 13.05 12.65 657,582.62 2006 12.65 14.69 765,542.34 2007 14.69 13.90 874,341.31 2008 13.90 9.08 916,499.08 2009 9.08 10.79 884,230.86 2010 10.79 11.82 936,067.96 2011 11.82 11.73 978,775.54 2012 11.73 13.45 867,384.44 MLA Mid Cap Investment Division (formerly Lazard Mid Cap Investment Division) (Class B)................................................. 2004 12.54 13.54 52,137.74 2005 13.54 14.42 106,924.83 2006 14.42 16.30 137,961.47 2007 16.30 15.63 254,047.42 2008 15.63 9.50 236,912.44 2009 9.50 12.81 259,248.91 2010 12.81 15.51 256,169.25 2011 15.51 14.48 286,100.44 2012 14.48 15.03 276,116.60
231
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ MSCI EAFE(R) Index Investment Division (formerly Morgan Stanley EAFE(R) Index Investment Division) (Class B)........................ 2004 $ 9.53 $11.08 281,853.78 2005 11.08 12.34 794,801.97 2006 12.34 15.26 1,046,351.38 2007 15.26 16.62 1,310,757.69 2008 16.62 9.46 1,666,972.69 2009 9.46 11.97 1,726,217.82 2010 11.97 12.73 1,891,931.42 2011 12.73 10.96 2,175,900.58 2012 10.96 12.75 2,173,357.36 Morgan Stanley Mid Cap Growth Investment Division (Class B)........... 2010 12.78 14.84 606,256.47 2011 14.84 13.62 688,742.46 2012 13.62 14.67 641,624.81 Morgan Stanley Mid Cap Growth Investment Division (formerly FI Mid Cap Opportunities Investment Division (Class B)).................... 2004 14.60 16.43 44,594.04 2005 16.43 17.27 129,617.44 2006 17.27 18.99 209,308.71 2007 18.99 20.24 309,830.20 2008 20.24 8.89 366,167.23 2009 8.89 11.70 485,764.64 2010 11.70 12.66 0.00 Neuberger Berman Genesis Investment Division (Class B)................ 2004 16.08 18.08 208,151.38 2005 18.08 18.52 484,579.16 2006 18.52 21.25 638,919.35 2007 21.25 20.17 666,449.41 2008 20.17 12.21 606,782.37 2009 12.21 13.58 618,219.23 2010 13.58 16.25 567,199.30 2011 16.25 16.89 555,461.98 2012 16.89 18.27 505,309.98 Oppenheimer Global Equity Investment Division (Class B)............... 2004 12.70 14.65 22,843.94 2005 14.65 16.75 82,074.43 2006 16.75 19.20 163,143.97 2007 19.20 20.11 294,980.90 2008 20.11 11.78 312,580.44 2009 11.78 16.23 388,940.59 2010 16.23 18.55 471,837.16 2011 18.55 16.75 509,612.12 2012 16.75 20.00 483,451.77
232
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ PIMCO Inflation Protected Bond Investment Division (Class B) (5/1/2006).......................................................... 2006 $10.97 $11.08 86,341.31 2007 11.08 12.10 282,571.45 2008 12.10 11.10 1,244,765.81 2009 11.10 12.92 2,120,220.49 2010 12.92 13.72 2,889,567.48 2011 13.72 15.03 3,484,395.56 2012 15.03 16.16 3,624,058.83 PIMCO Total Return Investment Division (Class B)...................... 2004 11.64 12.06 377,842.08 2005 12.06 12.16 1,189,276.56 2006 12.16 12.52 1,461,259.00 2007 12.52 13.28 1,969,499.12 2008 13.28 13.14 1,764,114.93 2009 13.14 15.29 2,815,840.51 2010 15.29 16.30 3,949,250.16 2011 16.30 16.57 4,419,373.15 2012 16.57 17.85 4,551,312.30 Pyramis(R) Government Income Investment Division (Class B) (4/30/2012) 2012 10.76 10.92 1,945,436.62 RCM Technology Investment Division (Class B).......................... 2004 4.16 4.33 57,701.30 2005 4.33 4.74 193,600.64 2006 4.74 4.92 253,079.50 2007 4.92 6.37 674,106.59 2008 6.37 3.49 732,129.14 2009 3.49 5.47 1,183,651.35 2010 5.47 6.88 1,427,466.46 2011 6.88 6.11 1,493,606.86 2012 6.11 6.75 1,469,983.29 Russell 2000(R) Index Investment Division (Class B)................... 2004 13.43 15.37 95,167.37 2005 15.37 15.80 287,348.53 2006 15.80 18.31 433,608.13 2007 18.31 17.74 529,995.06 2008 17.74 11.60 562,830.61 2009 11.60 14.36 593,436.46 2010 14.36 17.92 589,429.34 2011 17.92 16.90 609,813.85 2012 16.90 19.34 612,648.13 Schroders Global Multi-Asset Investment Division (Class B) (4/30/2012) 2012 1.01 1.06 4,940,453.63 SSgA Growth ETF Investment Division (Class B) (5/1/2006).............. 2006 10.70 11.40 8,217.16 2007 11.40 11.87 42,541.11 2008 11.87 7.84 42,485.62 2009 7.84 9.98 271,135.15 2010 9.98 11.23 265,070.25 2011 11.23 10.83 328,302.17 2012 10.83 12.28 342,949.93
233
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ SSgA Growth and Income ETF Investment Division (Class B) (5/1/2006)... 2006 $10.51 $11.15 9,207.88 2007 11.15 11.58 13,309.96 2008 11.58 8.55 68,745.12 2009 8.55 10.53 1,491,765.64 2010 10.53 11.65 2,774,889.67 2011 11.65 11.60 3,324,555.27 2012 11.60 12.90 3,328,335.00 T. Rowe Price Large Cap Growth Investment Division (Class B).......... 2004 11.13 12.06 93,880.57 2005 12.06 12.64 243,137.56 2006 12.64 14.06 323,962.49 2007 14.06 15.13 467,371.01 2008 15.13 8.64 557,457.51 2009 8.64 12.19 561,523.81 2010 12.19 14.03 530,973.47 2011 14.03 13.64 502,569.83 2012 13.64 15.95 492,519.32 T. Rowe Price Mid Cap Growth Investment Division (Class B)............ 2004 6.26 7.10 115,308.81 2005 7.10 8.02 340,515.41 2006 8.02 8.39 477,070.23 2007 8.39 9.73 1,091,057.23 2008 9.73 5.78 1,123,184.77 2009 5.78 8.28 1,255,170.56 2010 8.28 10.43 1,407,959.28 2011 10.43 10.11 1,486,930.40 2012 10.11 11.32 1,485,226.94 T. Rowe Price Small Cap Growth Investment Division (Class B).......... 2004 12.33 13.14 31,368.21 2005 13.14 14.34 104,136.74 2006 14.34 14.65 184,047.44 2007 14.65 15.82 219,854.25 2008 15.82 9.92 312,410.92 2009 9.92 13.56 336,695.75 2010 13.56 18.00 375,033.17 2011 18.00 18.00 464,082.83 2012 18.00 20.56 462,198.64 Western Asset Management Strategic Bond Opportunities Investment Division (Class B).................................................. 2004 18.56 19.67 107,910.05 2005 19.67 19.89 449,329.55 2006 19.89 20.55 761,939.96 2007 20.55 21.00 823,701.39 2008 21.00 17.55 667,121.79 2009 17.55 22.81 620,557.53 2010 22.81 25.28 616,538.57 2011 25.28 26.38 558,572.01 2012 26.38 28.93 526,303.20
234
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Western Asset Management U.S Government Investment Division (Class B). 2004 $ 15.34 $ 15.70 148,473.17 2005 15.70 15.69 460,917.02 2006 15.69 16.07 622,263.47 2007 16.07 16.48 776,097.58 2008 16.48 16.16 679,558.91 2009 16.16 16.57 847,280.46 2010 16.57 17.23 850,057.03 2011 17.23 17.88 798,682.88 2012 17.88 18.16 781,479.28 At 1.70 Separate Account Charge: American Funds Bond Investment Division (Class 2)/(e)/................ 2006 14.43 15.11 151,771.39 2007 15.11 15.35 809,310.13 2008 15.35 13.68 625,986.65 2009 13.68 15.15 691,422.16 2010 15.15 15.85 687,126.32 2011 15.85 16.53 606,151.93 2012 16.53 17.13 550,794.23 American Funds Global Small Capitalization Investment Division (Class 2)........................................................... 2004 16.09 19.13 140,092.44 2005 19.13 23.57 422,435.60 2006 23.57 28.75 654,541.21 2007 28.75 34.32 950,653.20 2008 34.32 15.68 987,379.12 2009 15.68 24.87 1,024,126.11 2010 24.87 29.93 1,080,126.69 2011 29.93 23.79 1,077,280.00 2012 23.79 27.64 964,772.85 American Funds Growth Investment Division (Class 2)................... 2004 108.71 120.23 59,830.80 2005 120.23 137.35 192,657.05 2006 137.35 148.84 308,943.53 2007 148.84 164.39 382,632.01 2008 164.39 90.54 421,284.58 2009 90.54 124.10 430,571.63 2010 124.10 144.80 403,616.84 2011 144.80 136.28 376,147.32 2012 136.28 157.94 332,415.87 American Funds Growth-Income Investment Division (Class 2)............ 2004 84.60 91.80 72,778.03 2005 91.80 95.52 188,347.32 2006 95.52 108.19 271,342.46 2007 108.19 111.72 342,131.86 2008 111.72 68.26 347,890.95 2009 68.26 88.08 393,860.59 2010 88.08 96.49 417,935.29 2011 96.49 93.13 423,179.38 2012 93.13 107.56 395,509.51
235 PREFERENCE PLUS SELECT DEFERRED ANNUITIES GROUP II 1.50 SEPARATE ACCOUNT CHARGE
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ AllianceBernstein Global Dynamic Allocation Investment Division (Class B) (4/30/2012).......................... 2012 $ 10.20 $ 10.55 719,244.94 American Funds(R) Balanced Allocation Investment Division (Class C) (4/28/2008)................................... 2008 10.00 7.00 135,856.26 2009 7.00 8.92 362,740.36 2010 8.92 9.86 653,959.10 2011 9.86 9.51 715,201.03 2012 9.51 10.63 652,169.46 American Funds Bond Investment Division+ (Class 2) (5/1/2006).............................................. 2006 14.49 15.19 9,855.83 2007 15.19 15.43 68,169.42 2008 15.43 13.76 16,239.77 2009 13.76 15.24 16,416.12 2010 15.24 15.96 24,364.59 2011 15.96 16.66 11,030.42 2012 16.66 17.26 9,151.52 American Funds Global Small Capitalization Investment Division+ (Class 2)..................................... 2003 10.68 16.14 85,398.57 2004 16.14 19.19 128,270.84 2005 19.19 23.66 149,896.21 2006 23.66 28.88 146,893.34 2007 28.88 34.49 141,939.77 2008 34.49 15.76 93,838.28 2009 15.76 25.01 86,284.29 2010 25.01 30.12 83,769.53 2011 30.12 23.95 71,867.34 2012 23.95 27.84 63,194.97 American Funds(R) Growth Allocation Investment Division (Class C) (4/28/2008)................................... 2008 9.99 6.35 323,645.32 2009 6.35 8.39 651,597.21 2010 8.39 9.38 678,757.17 2011 9.38 8.80 592,500.82 2012 8.80 10.07 521,805.64 American Funds Growth Investment Division+ (Class 2)...... 2003 81.55 109.74 58,503.83 2004 109.74 121.43 69,240.32 2005 121.43 138.80 68,272.08 2006 138.80 150.48 63,238.49 2007 150.48 166.28 54,048.73 2008 166.28 91.63 42,147.59 2009 91.63 125.66 38,086.04 2010 125.66 146.69 36,750.77 2011 146.69 138.13 30,896.19 2012 138.13 160.16 26,764.62
236
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ American Funds Growth-Income Investment Division+ (Class 2)................................................ 2003 $ 65.56 $ 85.41 68,725.41 2004 85.41 92.72 96,552.45 2005 92.72 96.53 87,866.03 2006 96.53 109.39 82,701.17 2007 109.39 113.01 69,156.14 2008 113.01 69.08 55,948.52 2009 69.08 89.18 53,241.27 2010 89.18 97.75 51,024.07 2011 97.75 94.39 41,759.75 2012 94.39 109.07 34,875.77 American Funds(R) Moderate Allocation Investment Division (Class C) (4/28/2008).................................... 2008 10.01 7.68 150,934.28 2009 7.68 9.33 553,781.88 2010 9.33 10.10 1,050,275.58 2011 10.10 9.97 1,124,128.52 2012 9.97 10.89 1,056,159.57 AQR Global Risk Balanced Investment Division (Class B) (4/30/2012).............................................. 2012 11.14 11.54 945,784.87 Baillie Gifford International Stock Investment Division (formerly Artio International Stock Investment Division) (Class B)................................................ 2004 11.66 13.31 898.96 2005 13.31 15.42 10,412.08 2006 15.42 17.66 27,532.51 2007 17.66 19.15 41,376.10 2008 19.15 10.52 104,801.03 2009 10.52 12.63 108,580.54 2010 12.63 13.29 96,358.31 2011 13.29 10.46 86,882.44 2012 10.46 12.30 83,195.34 Barclays Capital Aggregate Bond Index Investment Division (Class B)................................................ 2004 12.34 12.69 75,066.78 2005 12.69 12.74 247,085.26 2006 12.74 13.02 334,610.26 2007 13.02 13.68 445,572.24 2008 13.68 14.24 274,872.64 2009 14.24 14.73 337,451.36 2010 14.73 15.33 455,768.53 2011 15.33 16.21 588,724.26 2012 16.21 16.54 607,450.69 BlackRock Aggressive Growth Investment Division (Class B)................................................ 2004 33.03 36.59 1,258.67 2005 36.59 39.81 5,095.42 2006 39.81 41.76 4,636.17 2007 41.76 49.46 9,056.66 2008 49.46 26.38 15,820.16 2009 26.38 38.75 22,692.16 2010 38.75 43.89 27,794.39 2011 43.89 41.84 30,568.49 2012 41.84 45.62 23,063.68
237
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ BlackRock Bond Income Investment Division (Class B)...... 2004 $42.41 $43.90 8,121.98 2005 43.90 44.18 23,976.02 2006 44.18 45.33 46,603.87 2007 45.33 47.34 53,156.32 2008 47.34 44.92 45,632.45 2009 44.92 48.32 49,003.14 2010 48.32 51.44 62,759.28 2011 51.44 53.87 72,516.04 2012 53.87 56.93 67,964.73 BlackRock Diversified Investment Division (Class B)...... 2004 34.70 37.42 6,708.35 2005 37.42 37.90 16,192.39 2006 37.90 41.16 17,166.95 2007 41.16 42.83 25,949.67 2008 42.83 31.65 22,359.65 2009 31.65 36.48 15,881.95 2010 36.48 39.29 14,778.59 2011 39.29 40.09 13,150.64 2012 40.09 44.28 12,332.73 BlackRock Global Tactical Strategies Investment Division (Class B) (4/30/2012).................................. 2012 9.96 10.27 932,599.55 BlackRock Large Cap Core Investment Division* (Class B).............................................. 2007 76.25 76.86 3,123.19 2008 76.86 47.46 2,638.81 2009 47.46 55.73 5,023.56 2010 55.73 61.74 3,679.42 2011 61.74 60.98 5,743.03 2012 60.98 68.12 6,745.64 BlackRock Large Cap Investment Division (Class B)........ 2004 58.27 64.26 660.74 2005 64.26 65.41 3,196.09 2006 65.41 73.35 3,446.55 2007 73.35 76.90 0.00 BlackRock Large Cap Value Investment Division (Class B).. 2004 10.66 11.76 10,184.66 2005 11.76 12.23 20,457.74 2006 12.23 14.35 40,046.14 2007 14.35 14.58 86,981.14 2008 14.58 9.32 102,768.79 2009 9.32 10.19 95,592.49 2010 10.19 10.94 116,123.01 2011 10.94 11.00 121,689.78 2012 11.00 12.35 130,003.20
238
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ BlackRock Legacy Large Cap Growth Investment Division (Class B).............................................. 2004 $22.97 $25.15 4,013.61 2005 25.15 26.45 5,817.98 2006 26.45 27.07 10,293.45 2007 27.07 31.58 25,712.55 2008 31.58 19.69 42,512.52 2009 19.69 26.49 45,361.03 2010 26.49 31.17 42,078.49 2011 31.17 27.90 56,584.75 2012 27.90 31.35 50,397.68 BlackRock Legacy Large Cap Growth Investment Division--Class B (formerly FI Large Cap Investment Division (5/1/2006)). 2006 16.92 17.11 965.68 2007 17.11 17.48 2,704.42 2008 17.48 9.48 3,396.09 2009 9.48 9.87 0.00 BlackRock Money Market Investment Division (Class B)..... 2004 21.51 21.42 259.09 2005 21.42 21.66 1,104.62 2006 21.66 22.31 1,086.92 2007 22.31 23.04 2,669.52 2008 23.04 23.28 7,167.65 2009 23.28 22.99 2,600.55 2010 22.99 22.65 5,388.05 2011 22.65 22.32 3,301.21 2012 22.32 21.98 4,449.62 Clarion Global Real Estate Investment Division (Class B). 2004 9.99 12.82 68,869.17 2005 12.82 14.31 153,352.09 2006 14.31 19.40 234,114.01 2007 19.40 16.24 216,454.32 2008 16.24 9.33 201,310.26 2009 9.33 12.38 174,610.74 2010 12.38 14.16 164,268.92 2011 14.16 13.17 159,733.04 2012 13.17 16.35 162,436.52 Davis Venture Value Investment Division (Class B)........ 2004 28.30 30.43 12,812.49 2005 30.43 32.98 54,854.72 2006 32.98 37.14 106,439.73 2007 37.14 38.18 115,511.86 2008 38.18 22.74 111,650.26 2009 22.74 29.50 103,134.11 2010 29.50 32.46 104,641.32 2011 32.46 30.61 117,517.98 2012 30.61 33.96 99,703.63
239
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ FI Value Leaders Investment Division (Class B)......... 2004 $ 22.76 $ 25.65 3,147.34 2005 25.65 27.91 12,286.58 2006 27.91 30.70 20,249.35 2007 30.70 31.43 22,588.52 2008 31.43 18.85 21,280.45 2009 18.85 22.56 19,101.15 2010 22.56 25.40 17,847.27 2011 25.40 23.43 14,535.33 2012 23.43 26.65 13,696.93 Harris Oakmark International Investment Division (Class B)............................................ 2004 12.00 13.92 15,034.47 2005 13.92 15.67 43,941.33 2006 15.67 19.89 116,979.16 2007 19.89 19.37 130,875.13 2008 19.37 11.28 86,493.10 2009 11.28 17.23 112,948.34 2010 17.23 19.76 152,412.94 2011 19.76 16.69 185,328.08 2012 16.69 21.25 164,706.41 Invesco Balanced-Risk Allocation Investment Division (Class B) (4/30/2012)................................ 2012 1.01 1.04 2,274,024.35 Invesco Small Cap Growth Investment Division (Class B). 2004 11.33 12.13 1,186.65 2005 12.13 12.94 3,900.30 2006 12.94 14.56 10,755.47 2007 14.56 15.93 7,569.52 2008 15.93 9.61 6,032.97 2009 9.61 12.67 11,185.84 2010 12.67 15.75 15,380.10 2011 15.75 15.35 25,669.97 2012 15.35 17.88 21,714.28 Janus Forty Investment Division (Class B) (4/30/2007).. 2007 142.21 174.34 5,537.10 2008 174.34 99.61 19,075.41 2009 99.61 140.18 31,776.44 2010 140.18 151.07 36,862.04 2011 151.07 137.60 33,538.32 2012 137.60 166.06 31,668.19 Jennison Growth Investment Division (Class B).......... 2005 4.04 4.86 14,933.88 2006 4.86 4.90 18,457.21 2007 4.90 5.38 21,745.00 2008 5.38 3.36 21,634.45 2009 3.36 4.62 55,813.28 2010 4.62 5.07 92,878.43 2011 5.07 5.01 160,650.72 2012 5.01 5.70 287,794.25
240
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Jennison Growth Investment Division (formerly Met/Putnam Voyager Investment Division) (Class B).............................................. 2004 $ 4.20 $ 4.39 2,823.50 2005 4.39 4.00 2,901.14 Jennison Growth Investment Division (formerly Oppenheimer Capital Appreciation Investment Division) (Class B) (5/1/2005)......................... 2005 7.91 8.58 1,109.96 2006 8.58 9.10 11,661.01 2007 9.10 10.24 17,741.03 2008 10.24 5.45 51,306.85 2009 5.45 7.72 70,848.08 2010 7.72 8.32 96,620.37 2011 8.32 8.09 95,345.31 2012 8.09 9.09 0.00 JPMorgan Global Active Allocation Investment Division (Class B) (4/30/2012).................................. 2012 1.01 1.04 992,280.82 Legg Mason ClearBridge Aggressive Growth Investment Division (Class B)..................................... 2004 6.58 7.15 783.37 2005 7.15 8.00 12,890.50 2006 8.00 7.74 20,501.16 2007 7.74 7.80 21,600.66 2008 7.80 4.68 19,814.40 2009 4.68 6.13 31,168.61 2010 6.13 7.48 38,038.08 2011 7.48 7.61 106,870.94 2012 7.61 8.88 157,808.33 Legg Mason ClearBridge Aggressive Growth Investment Division (formerly Legg Mason Value Equity Investment Division) (Class B).............................................. 2006 9.28 9.95 11,253.48 2007 9.95 9.22 13,536.97 2008 9.22 4.12 7,865.35 2009 4.12 5.60 21,908.89 2010 5.60 5.92 51,248.84 2011 5.92 6.29 0.00 Legg Mason Value Equity Investment Division (formerly MFS(R) Investors Trust Investment Division) (Class B).............................................. 2004 7.65 8.47 0.00 2005 8.47 8.92 3,340.19 2006 8.92 9.32 3,968.10 Loomis Sayles Small Cap Core Investment Division (Class B).............................................. 2004 23.18 26.25 1,486.70 2005 26.25 27.59 5,538.88 2006 27.59 31.63 15,151.07 2007 31.63 34.78 24,118.81 2008 34.78 21.91 26,557.99 2009 21.91 28.04 22,246.65 2010 28.04 35.14 17,756.68 2011 35.14 34.74 19,998.60 2012 34.74 39.10 20,078.39
241
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Loomis Sayles Small Cap Growth Investment Division (Class B)............................................. 2004 $ 8.78 $ 9.71 5,973.74 2005 9.71 9.99 8,500.33 2006 9.99 10.80 16,024.40 2007 10.80 11.10 19,772.47 2008 11.10 6.41 28,758.13 2009 6.41 8.19 32,949.80 2010 8.19 10.60 26,426.46 2011 10.60 10.73 28,604.87 2012 10.73 11.73 23,480.98 Lord Abbett Bond Debenture Investment Division (Class B)............................................. 2004 15.82 16.85 8,869.63 2005 16.85 16.84 38,509.50 2006 16.84 18.11 82,258.11 2007 18.11 19.01 113,548.58 2008 19.01 15.24 91,664.15 2009 15.24 20.54 116,459.70 2010 20.54 22.85 117,123.25 2011 22.85 23.52 120,620.48 2012 23.52 26.17 109,217.65 Lord Abbett Mid Cap Value Investment Division (Class B). 2012 24.98 25.66 135,075.00 Lord Abbett Mid Cap Value Investment Division (Class B) (formerly Neuberger Berman Mid Cap Value Investment Division (Class B))................................... 2004 18.45 21.51 17,264.02 2005 21.51 23.72 75,324.93 2006 23.72 25.99 131,190.77 2007 25.99 26.42 162,218.98 2008 26.42 13.66 146,521.98 2009 13.66 19.89 137,467.11 2010 19.89 24.70 143,739.48 2011 24.70 22.71 144,793.52 2012 22.71 25.10 0.00 Met/Artisan Mid Cap Value Investment Division (Class B). 2004 29.79 32.30 7,707.84 2005 32.30 34.91 24,317.59 2006 34.91 38.58 39,127.30 2007 38.58 35.31 34,123.62 2008 35.31 18.74 24,441.89 2009 18.74 26.06 23,988.33 2010 26.06 29.47 23,916.21 2011 29.47 30.91 25,481.23 2012 30.91 33.98 21,192.87 Met/Franklin Income Investment Division (Class B) (4/28/2008)........................................... 2008 9.99 7.98 22,497.30 2009 7.98 10.04 54,635.25 2010 10.04 11.07 91,514.04 2011 11.07 11.13 121,733.09 2012 11.13 12.34 111,211.70
242
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Met/Franklin Low Duration Total Return Investment Division (Class B) (5/2/2011).......................... 2011 $ 9.98 $ 9.76 11,656.92 2012 9.76 10.03 12,945.04 Met/Franklin Mutual Shares Investment Division (Class B) (4/28/2008)............................................ 2008 9.99 6.59 28,307.85 2009 6.59 8.11 37,613.21 2010 8.11 8.87 85,964.55 2011 8.87 8.69 124,705.18 2012 8.69 9.75 125,825.90 Met/Franklin Templeton Founding Strategy Investment Division (Class B) (4/28/2008)......................... 2008 9.99 7.02 28,465.63 2009 7.02 8.90 54,162.32 2010 8.90 9.64 57,135.74 2011 9.64 9.33 85,034.50 2012 9.33 10.68 80,555.94 Met/Templeton Growth Investment Division (Class B) (4/28/2008)............................................ 2008 9.99 6.56 5,656.27 2009 6.56 8.57 12,715.04 2010 8.57 9.09 19,792.92 2011 9.09 8.34 62,533.62 2012 8.34 10.04 62,228.00 MetLife Aggressive Strategy Investment Division.......... 2011 12.08 10.34 60,419.27 2012 10.34 11.89 82,883.83 MetLife Aggressive Strategy Investment Division (formerly MetLife Aggressive Allocation Investment Division) (Class B).................................... 2005 9.99 11.14 15,856.40 2006 11.14 12.69 44,186.36 2007 12.69 12.91 79,266.94 2008 12.91 7.57 78,656.94 2009 7.57 9.81 94,729.28 2010 9.81 11.18 86,458.38 2011 11.18 12.12 0.00 MetLife Balanced Plus Investment Division (Class B) (4/30/2012)............................................ 2012 9.99 10.44 1,059,337.87 MetLife Conservative Allocation Investment Division (Class B) (5/1/2005)................................... 2005 9.99 10.29 20,259.36 2006 10.29 10.83 54,698.83 2007 10.83 11.27 194,717.78 2008 11.27 9.50 332,064.42 2009 9.50 11.28 461,630.43 2010 11.28 12.23 727,430.70 2011 12.23 12.44 845,359.90 2012 12.44 13.38 939,109.22
243
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ MetLife Conservative to Moderate Allocation Investment Division (Class B) (5/1/2005)........................... 2005 $ 9.99 $10.51 52,342.64 2006 10.51 11.33 168,635.18 2007 11.33 11.69 395,220.51 2008 11.69 9.03 732,472.34 2009 9.03 11.00 1,008,766.42 2010 11.00 12.09 1,617,163.08 2011 12.09 12.03 1,931,443.06 2012 12.03 13.21 1,871,784.00 MetLife Mid Cap Stock Index Investment Division (Class B)............................................... 2004 11.60 12.99 14,530.92 2005 12.99 14.33 35,277.12 2006 14.33 15.51 57,561.77 2007 15.51 16.43 71,762.73 2008 16.43 10.29 109,704.46 2009 10.29 13.87 90,479.49 2010 13.87 17.22 102,090.89 2011 17.22 16.59 134,954.72 2012 16.59 19.17 140,104.32 MetLife Moderate Allocation Investment Division (Class B) (5/1/2005).............................................. 2005 9.99 10.74 110,034.54 2006 10.74 11.83 499,348.99 2007 11.83 12.16 1,167,489.54 2008 12.16 8.55 1,323,860.24 2009 8.55 10.65 1,957,415.14 2010 10.65 11.88 2,992,970.68 2011 11.88 11.54 3,408,700.83 2012 11.54 12.87 3,275,251.30 MetLife Moderate to Aggressive Allocation Investment Division (Class B) (5/1/2005)........................... 2005 9.99 10.96 65,033.37 2006 10.96 12.34 301,858.85 2007 12.34 12.62 817,285.72 2008 12.62 8.06 803,131.65 2009 8.06 10.26 1,184,921.46 2010 10.26 11.59 934,289.76 2011 11.59 10.99 834,393.41 2012 10.99 12.49 759,978.37 MetLife Stock Index Investment Division (Class B)......... 2004 33.44 36.21 38,878.99 2005 36.21 37.23 84,563.02 2006 37.23 42.25 116,766.00 2007 42.25 43.69 145,029.57 2008 43.69 27.00 167,564.75 2009 27.00 33.49 196,399.22 2010 33.49 37.77 226,540.25 2011 37.77 37.82 260,646.69 2012 37.82 43.00 248,834.96
244
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ MFS(R) Research International Investment Division (Class B)......................................... 2004 $ 9.71 $11.14 2,483.65 2005 11.14 12.78 14,559.35 2006 12.78 15.94 68,131.53 2007 15.94 17.78 69,885.02 2008 17.78 10.09 101,977.71 2009 10.09 13.09 115,423.49 2010 13.09 14.36 126,238.04 2011 14.36 12.63 108,824.82 2012 12.63 14.52 86,420.65 MFS(R) Total Return Investment Division (Class B)... 2004 36.14 39.27 3,841.22 2005 39.27 39.79 19,800.66 2006 39.79 43.88 18,561.86 2007 43.88 45.00 26,133.41 2008 45.00 34.42 19,043.01 2009 34.42 40.12 17,976.77 2010 40.12 43.39 18,152.54 2011 43.39 43.67 20,510.69 2012 43.67 47.88 22,811.63 MFS(R) Value Investment Division (Class B).......... 2004 12.06 13.01 32,051.72 2005 13.01 12.60 145,094.99 2006 12.60 14.63 171,514.26 2007 14.63 13.83 129,145.21 2008 13.83 9.03 75,249.03 2009 9.03 10.73 76,037.09 2010 10.73 11.75 93,270.71 2011 11.75 11.65 127,058.25 2012 11.65 13.35 116,843.82 MLA Mid Cap Investment Division (formerly Lazard Mid Cap Investment Division) (Class B)......................................... 2004 12.53 13.52 3,170.67 2005 13.52 14.39 5,764.34 2006 14.39 16.26 10,443.33 2007 16.26 15.58 19,091.61 2008 15.58 9.47 12,186.84 2009 9.47 12.76 17,404.76 2010 12.76 15.44 18,152.79 2011 15.44 14.41 21,863.71 2012 14.41 14.94 20,670.83 MSCI EAFE(R) Index Investment Division (formerly Morgan Stanley EAFE(R) Index Investment Division) (Class B)............................... 2004 9.51 11.05 35,817.84 2005 11.05 12.29 70,820.80 2006 12.29 15.19 105,898.99 2007 15.19 16.54 139,248.50 2008 16.54 9.42 174,743.98 2009 9.42 11.90 167,547.33 2010 11.90 12.65 190,517.88 2011 12.65 10.89 235,444.24 2012 10.89 12.66 226,570.43
245
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Morgan Stanley Mid Cap Growth Investment Division (Class B).............................................. 2010 $12.70 $14.74 44,390.95 2011 14.74 13.52 65,707.22 2012 13.52 14.55 62,094.56 Morgan Stanley Mid Cap Growth Investment Division (formerly FI Mid Cap Opportunities Investment Division (Class B))............................................. 2004 14.55 16.36 5,537.49 2005 16.36 17.20 16,619.16 2006 17.20 18.90 25,812.90 2007 18.90 20.13 33,746.41 2008 20.13 8.83 34,423.59 2009 8.83 11.62 46,895.75 2010 11.62 12.57 0.00 Neuberger Berman Genesis Investment Division (Class B)... 2004 16.04 18.04 23,890.52 2005 18.04 18.47 71,096.64 2006 18.47 21.18 62,812.31 2007 21.18 20.10 67,280.87 2008 20.10 12.16 76,475.72 2009 12.16 13.52 57,729.14 2010 13.52 16.16 46,276.56 2011 16.16 16.80 41,317.92 2012 16.80 18.16 37,860.75 Oppenheimer Global Equity Investment Division (Class B).. 2004 12.66 14.59 4,876.59 2005 14.59 16.67 16,102.42 2006 16.67 19.11 24,727.56 2007 19.11 20.00 40,301.45 2008 20.00 11.71 44,205.40 2009 11.71 16.13 48,675.18 2010 16.13 18.42 54,507.76 2011 18.42 16.62 81,434.96 2012 16.62 19.84 81,886.06 PIMCO Inflation Protected Bond Investment Division (Class B) (5/1/2006)................................... 2006 10.96 11.06 13,284.03 2007 11.06 12.07 48,146.04 2008 12.07 11.07 230,752.72 2009 11.07 12.87 310,322.51 2010 12.87 13.67 431,442.49 2011 13.67 14.96 572,264.49 2012 14.96 16.09 621,060.60 PIMCO Total Return Investment Division (Class B)......... 2004 11.62 12.04 60,186.41 2005 12.04 12.13 164,114.54 2006 12.13 12.49 186,335.52 2007 12.49 13.23 207,441.47 2008 13.23 13.09 191,272.06 2009 13.09 15.22 315,771.61 2010 15.22 16.22 521,378.79 2011 16.22 16.48 607,907.44 2012 16.48 17.74 701,335.88
246
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Pyramis(R) Government Income Investment Division (Class B) (4/30/2012).................................... 2012 $10.76 $10.92 653,967.97 RCM Technology Investment Division (Class B)............... 2004 4.15 4.32 6,953.90 2005 4.32 4.72 30,683.81 2006 4.72 4.90 26,551.62 2007 4.90 6.35 110,856.01 2008 6.35 3.47 150,885.29 2009 3.47 5.44 203,692.85 2010 5.44 6.85 259,376.02 2011 6.85 6.08 269,936.66 2012 6.08 6.71 227,163.66 Russell 2000(R) Index Investment Division (Class B)........ 2004 13.39 15.32 10,365.69 2005 15.32 15.75 26,872.17 2006 15.75 18.24 45,549.73 2007 18.24 17.66 56,624.33 2008 17.66 11.54 53,606.05 2009 11.54 14.28 50,731.24 2010 14.28 17.81 60,553.92 2011 17.81 16.79 81,213.05 2012 16.79 19.20 79,165.33 Schroders Global Multi-Asset Investment Division (Class B) (4/30/2012).............................................. 2012 1.01 1.06 573,694.08 SSgA Growth ETF Investment Division (Class B) (5/1/2006)............................................... 2006 10.69 11.40 27,555.86 2007 11.40 11.86 11,428.25 2008 11.86 7.83 12,363.97 2009 7.83 9.96 38,455.84 2010 9.96 11.20 71,334.57 2011 11.20 10.80 93,111.19 2012 10.80 12.23 66,820.74 SSgA Growth and Income ETF Investment Division (Class B) (5/1/2006)..................................... 2006 10.50 11.14 22,575.33 2007 11.14 11.57 1,657.68 2008 11.57 8.54 5,133.32 2009 8.54 10.51 162,425.67 2010 10.51 11.62 618,533.25 2011 11.62 11.57 989,652.61 2012 11.57 12.86 1,013,144.06 T. Rowe Price Large Cap Growth Investment Division (Class B)................................................ 2004 11.10 12.02 12,504.37 2005 12.02 12.59 26,904.11 2006 12.59 14.00 35,578.28 2007 14.00 15.06 59,614.94 2008 15.06 8.60 69,218.90 2009 8.60 12.12 71,086.60 2010 12.12 13.94 67,233.88 2011 13.94 13.55 86,170.35 2012 13.55 15.84 82,993.60
247
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ T. Rowe Price Mid Cap Growth Investment Division (Class B)............................................ 2004 $ 6.25 $ 7.08 9,681.38 2005 7.08 8.00 27,613.87 2006 8.00 8.37 73,879.63 2007 8.37 9.70 131,104.09 2008 9.70 5.75 137,409.38 2009 5.75 8.25 165,004.06 2010 8.25 10.37 222,068.98 2011 10.37 10.05 231,521.01 2012 10.05 11.26 197,074.27 T. Rowe Price Small Cap Growth Investment Division (Class B)............................................ 2004 12.29 13.09 3,764.64 2005 13.09 14.28 9,555.84 2006 14.28 14.58 23,238.89 2007 14.58 15.73 26,392.75 2008 15.73 9.87 23,113.55 2009 9.87 13.48 34,011.32 2010 13.48 17.88 46,718.30 2011 17.88 17.87 63,179.05 2012 17.87 20.40 68,059.25 Western Asset Management Strategic Bond Opportunities Investment Division (Class B)........................ 2004 18.48 19.57 13,950.16 2005 19.57 19.78 76,972.68 2006 19.78 20.42 126,437.95 2007 20.42 20.86 165,927.32 2008 20.86 17.42 124,004.86 2009 17.42 22.64 87,947.95 2010 22.64 25.08 71,264.45 2011 25.08 26.15 56,515.95 2012 26.15 28.67 50,384.96 Western Asset Management U.S Government Investment Division (Class B)................................... 2004 15.27 15.62 26,011.02 2005 15.62 15.61 78,034.48 2006 15.61 15.98 118,737.56 2007 15.98 16.37 107,325.43 2008 16.37 16.04 85,709.84 2009 16.04 16.45 90,659.96 2010 16.45 17.09 106,820.76 2011 17.09 17.73 104,343.44 2012 17.73 17.99 103,995.91 At 1.75 Separate Account Charge: American Funds Bond Investment Division (Class 2)/(e)/. 2006 14.36 15.04 27,290.50 2007 15.04 15.27 115,031.70 2008 15.27 13.60 82,599.38 2009 13.60 15.05 98,637.75 2010 15.05 15.74 98,794.03 2011 15.74 16.41 83,446.59 2012 16.41 16.99 78,576.10
248
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ American Funds Global Small Capitalization Investment Division (Class 2).................................. 2004 $ 16.05 $ 19.06 11,997.08 2005 19.06 23.48 31,614.64 2006 23.48 28.63 68,262.25 2007 28.63 34.16 115,956.39 2008 34.16 15.60 133,303.40 2009 15.60 24.72 138,303.97 2010 24.72 29.74 151,859.31 2011 29.74 23.63 151,964.78 2012 23.63 27.44 121,669.04 American Funds Growth Investment Division (Class 2)... 2004 107.63 118.98 7,893.55 2005 118.98 135.85 22,647.91 2006 135.85 147.14 39,329.74 2007 147.14 162.43 48,154.21 2008 162.43 89.42 57,498.77 2009 89.42 122.50 57,219.76 2010 122.50 142.87 48,358.26 2011 142.87 134.39 42,901.79 2012 134.39 155.67 38,267.17 American Funds Growth-Income Investment Division (Class 2)........................................... 2004 83.76 90.85 7,525.57 2005 90.85 94.48 18,899.21 2006 94.48 106.96 30,350.55 2007 106.96 110.40 43,158.87 2008 110.40 67.42 42,230.34 2009 67.42 86.94 47,078.21 2010 86.94 95.20 52,132.28 2011 95.20 91.84 53,940.17 2012 91.84 106.01 51,013.23
249 PREFERENCE PLUS SELECT DEFERRED ANNUITIES GROUP II 1.60 SEPARATE ACCOUNT CHARGE
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ AllianceBernstein Global Dynamic Allocation Investment Division (Class B) (4/30/2012).......................... 2012 $ 10.19 $ 10.53 53,306.17 American Funds(R) Balanced Allocation Investment Division (Class C) (4/28/2008)................................... 2008 10.00 7.00 753,092.01 2009 7.00 8.91 786,134.75 2010 8.91 9.83 703,696.29 2011 9.83 9.47 625,136.28 2012 9.47 10.58 268,817.67 American Funds Bond Investment Division+ (Class 2) (5/1/2006).............................................. 2006 14.36 15.04 3,602.47 2007 15.04 15.27 26,795.36 2008 15.27 13.60 23,110.57 2009 13.60 15.05 20,625.76 2010 15.05 15.74 16,284.48 2011 15.74 16.41 14,590.66 2012 16.41 16.99 10,535.95 American Funds Global Small Capitalization Investment Division+ (Class 2)..................................... 2003 10.63 16.05 33,583.22 2004 16.05 19.06 128,537.65 2005 19.06 23.48 142,590.73 2006 23.48 28.63 152,181.41 2007 28.63 34.16 150,471.52 2008 34.16 15.60 106,380.52 2009 15.60 24.72 102,365.71 2010 24.72 29.74 98,037.32 2011 29.74 23.63 79,838.23 2012 23.63 27.44 66,448.07 American Funds(R) Growth Allocation Investment Division (Class C) (4/28/2008)................................... 2008 9.99 6.35 408,432.40 2009 6.35 8.37 646,986.36 2010 8.37 9.35 534,697.90 2011 9.35 8.77 458,398.08 2012 8.77 10.02 361,370.63 American Funds Growth Investment Division+ (Class 2)...... 2003 80.02 107.58 39,810.16 2004 107.58 118.92 64,053.28 2005 118.92 135.79 63,053.30 2006 135.79 147.07 56,753.68 2007 147.07 162.35 49,908.02 2008 162.35 89.38 40,843.02 2009 89.38 122.44 39,070.82 2010 122.44 142.80 35,700.21 2011 142.80 134.32 30,814.42 2012 134.32 155.60 28,778.12
250
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ American Funds Growth-Income Investment Division+ (Class 2)................................................ 2003 $ 64.34 $ 83.72 44,066.19 2004 83.72 90.80 74,849.64 2005 90.80 94.43 74,211.75 2006 94.43 106.91 69,152.27 2007 106.91 110.34 62,927.94 2008 110.34 67.38 41,806.81 2009 67.38 86.90 39,074.67 2010 86.90 95.15 39,429.27 2011 95.15 91.79 38,494.49 2012 91.79 105.96 34,123.78 American Funds(R) Moderate Allocation Investment Division (Class C) (4/28/2008).................................... 2008 10.01 7.67 162,969.89 2009 7.67 9.32 326,442.68 2010 9.32 10.08 355,063.16 2011 10.08 9.94 344,030.86 2012 9.94 10.84 370,572.54 AQR Global Risk Balanced Investment Division (Class B) (4/30/2012).............................................. 2012 11.13 11.52 162,046.77 Baillie Gifford International Stock Investment Division (formerly Artio International Stock Investment Division) (Class B)................................................ 2004 11.51 13.13 22,878.39 2005 13.13 15.20 68,105.57 2006 15.20 17.39 110,048.90 2007 17.39 18.83 140,734.04 2008 18.83 10.33 151,926.99 2009 10.33 12.39 128,081.49 2010 12.39 13.03 116,164.73 2011 13.03 10.24 114,154.96 2012 10.24 12.03 110,480.30 Barclays Capital Aggregate Bond Index Investment Division (Class B)................................................ 2004 12.27 12.61 334,407.74 2005 12.61 12.64 1,057,217.01 2006 12.64 12.92 1,509,924.45 2007 12.92 13.56 1,683,746.74 2008 13.56 14.10 1,231,419.73 2009 14.10 14.56 1,131,419.14 2010 14.56 15.15 1,027,674.17 2011 15.15 15.99 960,627.22 2012 15.99 16.31 992,619.62
251
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ BlackRock Aggressive Growth Investment Division (Class B).............................................. 2004 $32.50 $35.99 6,125.69 2005 35.99 39.11 12,498.66 2006 39.11 40.99 27,200.77 2007 40.99 48.49 46,260.80 2008 48.49 25.84 47,455.28 2009 25.84 37.91 48,000.25 2010 37.91 42.91 44,403.72 2011 42.91 40.86 34,230.45 2012 40.86 44.51 30,165.84 BlackRock Bond Income Investment Division (Class B)...... 2004 41.54 42.98 28,685.98 2005 42.98 43.21 115,911.30 2006 43.21 44.28 132,658.95 2007 44.28 46.20 152,713.37 2008 46.20 43.80 121,533.78 2009 43.80 47.06 112,612.24 2010 47.06 50.05 101,435.04 2011 50.05 52.37 90,560.85 2012 52.37 55.28 88,815.05 BlackRock Diversified Investment Division (Class B)...... 2004 34.09 36.73 15,453.64 2005 36.73 37.17 31,003.98 2006 37.17 40.33 54,612.97 2007 40.33 41.91 70,784.11 2008 41.91 30.95 67,594.06 2009 30.95 35.64 65,596.84 2010 35.64 38.34 55,912.17 2011 38.34 39.08 51,332.97 2012 39.08 43.12 53,287.66 BlackRock Global Tactical Strategies Investment Division (Class B) (4/30/2012).................................. 2012 9.95 10.26 93,570.55 BlackRock Large Cap Core Investment Division* (Class B).............................................. 2007 74.46 75.00 27,459.54 2008 75.00 46.27 27,554.00 2009 46.27 54.27 26,321.88 2010 54.27 60.06 21,082.81 2011 60.06 59.26 20,092.73 2012 59.26 66.14 19,538.65 BlackRock Large Cap Investment Division (Class B)........ 2004 57.07 62.89 4,157.45 2005 62.89 63.95 11,867.31 2006 63.95 71.64 17,905.19 2007 71.64 75.09 0.00
252
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ BlackRock Large Cap Value Investment Division (Class B).. 2004 $10.64 $11.73 72,889.51 2005 11.73 12.18 129,930.61 2006 12.18 14.28 277,371.16 2007 14.28 14.50 358,059.25 2008 14.50 9.25 334,167.45 2009 9.25 10.12 300,993.37 2010 10.12 10.84 267,248.46 2011 10.84 10.89 255,339.11 2012 10.89 12.21 238,135.77 BlackRock Legacy Large Cap Growth Investment Division (Class B).............................................. 2004 22.75 24.90 10,780.74 2005 24.90 26.16 17,048.36 2006 26.16 26.75 34,554.54 2007 26.75 31.17 81,821.28 2008 31.17 19.42 93,148.81 2009 19.42 26.09 70,150.09 2010 26.09 30.67 65,649.31 2011 30.67 27.42 65,183.77 2012 27.42 30.78 60,974.58 BlackRock Legacy Large Cap Growth Investment Division--Class B (formerly FI Large Cap Investment Division (5/1/2006)). 2006 16.76 16.93 2,350.63 2007 16.93 17.28 2,857.92 2008 17.28 9.36 4,291.66 2009 9.36 9.74 0.00 BlackRock Money Market Investment Division (Class B)..... 2004 21.07 20.97 0.00 2005 20.97 21.18 0.00 2006 21.18 21.80 0.00 2007 21.80 22.48 0.00 2008 22.48 22.70 3,914.49 2009 22.70 22.40 57.00 2010 22.40 22.04 57.50 2011 22.04 21.69 44.53 2012 21.69 21.35 1,121.69 Clarion Global Real Estate Investment Division (Class B). 2004 9.99 12.81 143,462.81 2005 12.81 14.28 424,019.39 2006 14.28 19.34 666,439.10 2007 19.34 16.18 575,314.01 2008 16.18 9.28 519,452.59 2009 9.28 12.31 443,682.94 2010 12.31 14.07 407,965.93 2011 14.07 13.07 379,396.52 2012 13.07 16.21 351,309.43
253
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Davis Venture Value Investment Division (Class B)...... 2004 $ 28.03 $ 30.13 44,855.88 2005 30.13 32.61 170,894.10 2006 32.61 36.69 272,806.88 2007 36.69 37.68 318,122.75 2008 37.68 22.42 301,314.15 2009 22.42 29.05 266,539.91 2010 29.05 31.94 252,732.07 2011 31.94 30.09 232,569.13 2012 30.09 33.35 215,824.92 FI Value Leaders Investment Division (Class B)......... 2004 22.51 25.35 6,139.92 2005 25.35 27.56 40,725.01 2006 27.56 30.28 82,477.81 2007 30.28 30.97 80,323.98 2008 30.97 18.56 72,214.81 2009 18.56 22.19 68,117.30 2010 22.19 24.96 63,451.92 2011 24.96 22.99 53,836.48 2012 22.99 26.13 51,851.95 Harris Oakmark International Investment Division (Class B)............................................ 2004 11.97 13.87 40,003.30 2005 13.87 15.60 283,467.88 2006 15.60 19.78 463,970.38 2007 19.78 19.25 541,008.28 2008 19.25 11.20 361,181.38 2009 11.20 17.09 455,142.82 2010 17.09 19.58 437,333.42 2011 19.58 16.52 428,563.44 2012 16.52 21.01 413,396.27 Invesco Balanced-Risk Allocation Investment Division (Class B) (4/30/2012)................................ 2012 1.01 1.04 743,438.84 Invesco Small Cap Growth Investment Division (Class B). 2004 11.30 12.09 4,211.35 2005 12.09 12.89 22,178.17 2006 12.89 14.48 33,138.58 2007 14.48 15.83 46,321.83 2008 15.83 9.54 58,875.23 2009 9.54 12.57 57,151.36 2010 12.57 15.61 48,806.51 2011 15.61 15.19 45,471.31 2012 15.19 17.68 70,471.03 Janus Forty Investment Division (Class B) (4/30/2007).. 2007 138.68 169.90 11,589.91 2008 169.90 96.98 34,978.31 2009 96.98 136.34 35,021.62 2010 136.34 146.78 30,601.26 2011 146.78 133.56 26,458.06 2012 133.56 161.02 24,262.05
254
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Jennison Growth Investment Division (Class B)............ 2005 $ 4.02 $ 4.83 13,165.94 2006 4.83 4.87 42,372.95 2007 4.87 5.34 51,264.06 2008 5.34 3.33 46,164.93 2009 3.33 4.58 246,056.69 2010 4.58 5.02 305,063.15 2011 5.02 4.95 262,756.56 2012 4.95 5.63 484,165.29 Jennison Growth Investment Division (formerly Met/Putnam Voyager Investment Division) (Class B).............................................. 2004 4.19 4.37 3,071.60 2005 4.37 3.98 4,272.14 Jennison Growth Investment Division (formerly Oppenheimer Capital Appreciation Investment Division) (Class B) (5/1/2005)......................... 2005 7.88 8.54 13,129.16 2006 8.54 9.05 40,015.91 2007 9.05 10.17 79,747.56 2008 10.17 5.41 112,799.60 2009 5.41 7.65 169,418.84 2010 7.65 8.24 129,464.56 2011 8.24 8.00 115,159.09 2012 8.00 8.99 0.00 JPMorgan Global Active Allocation Investment Division (Class B) (4/30/2012).................................. 2012 1.01 1.04 141,760.02 Legg Mason ClearBridge Aggressive Growth Investment Division (Class B)..................................... 2004 6.56 7.12 2,214.52 2005 7.12 7.96 32,539.17 2006 7.96 7.70 49,547.29 2007 7.70 7.74 42,082.05 2008 7.74 4.64 33,750.54 2009 4.64 6.08 30,389.06 2010 6.08 7.40 30,540.39 2011 7.40 7.52 80,192.49 2012 7.52 8.77 83,579.26 Legg Mason ClearBridge Aggressive Growth Investment Division (formerly Legg Mason Value Equity Investment Division) (Class B).............................................. 2006 9.22 9.87 22,557.32 2007 9.87 9.14 40,093.92 2008 9.14 4.08 49,200.25 2009 4.08 5.54 45,469.79 2010 5.54 5.85 49,666.93 2011 5.85 6.22 0.00 Legg Mason Value Equity Investment Division (formerly MFS(R) Investors Trust Investment Division) (Class B).............................................. 2004 7.61 8.42 1,275.31 2005 8.42 8.86 8,313.82 2006 8.86 9.26 8,924.96
255
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Loomis Sayles Small Cap Core Investment Division (Class B)............................................. 2004 $22.95 $25.97 7,873.17 2005 25.97 27.27 28,495.45 2006 27.27 31.23 54,344.96 2007 31.23 34.31 74,909.50 2008 34.31 21.59 73,443.09 2009 21.59 27.60 68,406.25 2010 27.60 34.56 58,446.70 2011 34.56 34.13 55,181.47 2012 34.13 38.38 52,532.59 Loomis Sayles Small Cap Growth Investment Division (Class B)............................................. 2004 8.75 9.68 11,076.07 2005 9.68 9.94 35,691.52 2006 9.94 10.74 63,089.12 2007 10.74 11.02 55,752.90 2008 11.02 6.36 53,582.75 2009 6.36 8.12 50,996.32 2010 8.12 10.50 49,435.59 2011 10.50 10.62 47,321.36 2012 10.62 11.59 45,922.49 Lord Abbett Bond Debenture Investment Division (Class B)............................................. 2004 15.69 16.70 41,437.91 2005 16.70 16.68 131,610.71 2006 16.68 17.92 208,982.46 2007 17.92 18.79 261,726.72 2008 18.79 15.05 238,895.76 2009 15.05 20.26 238,699.81 2010 20.26 22.52 212,166.77 2011 22.52 23.15 185,375.17 2012 23.15 25.73 174,088.59 Lord Abbett Mid Cap Value Investment Division (Class B). 2012 24.65 25.30 228,120.83 Lord Abbett Mid Cap Value Investment Division (Class B) (formerly Neuberger Berman Mid Cap Value Investment Division (Class B))................................... 2004 18.35 21.38 65,404.67 2005 21.38 23.55 264,533.71 2006 23.55 25.78 358,701.49 2007 25.78 26.18 407,834.48 2008 26.18 13.53 341,977.21 2009 13.53 19.67 278,249.72 2010 19.67 24.40 250,524.15 2011 24.40 22.41 238,737.31 2012 22.41 24.77 0.00
256
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Met/Artisan Mid Cap Value Investment Division (Class B).... 2004 $29.46 $31.93 48,425.47 2005 31.93 34.47 114,332.89 2006 34.47 38.06 131,110.14 2007 38.06 34.80 132,411.56 2008 34.80 18.44 114,642.03 2009 18.44 25.63 101,186.59 2010 25.63 28.95 82,993.60 2011 28.95 30.34 85,043.81 2012 30.34 33.31 72,002.19 Met/Franklin Income Investment Division (Class B) (4/28/2008).............................................. 2008 9.99 7.97 23,738.90 2009 7.97 10.03 32,570.27 2010 10.03 11.04 42,385.77 2011 11.04 11.09 64,419.92 2012 11.09 12.28 74,275.04 Met/Franklin Low Duration Total Return Investment Division (Class B) (5/2/2011)..................................... 2011 9.98 9.75 0.00 2012 9.75 10.02 3,976.94 Met/Franklin Mutual Shares Investment Division (Class B) (4/28/2008).............................................. 2008 9.99 6.59 7,220.50 2009 6.59 8.10 11,063.84 2010 8.10 8.85 25,422.53 2011 8.85 8.66 38,314.49 2012 8.66 9.71 36,445.54 Met/Franklin Templeton Founding Strategy Investment Division (Class B) (4/28/2008)........................... 2008 9.99 7.02 62,019.61 2009 7.02 8.88 98,667.05 2010 8.88 9.62 101,912.71 2011 9.62 9.30 118,235.45 2012 9.30 10.63 81,887.81 Met/Templeton Growth Investment Division (Class B) (4/28/2008).............................................. 2008 9.99 6.56 0.00 2009 6.56 8.56 4,382.90 2010 8.56 9.07 6,793.08 2011 9.07 8.31 14,055.43 2012 8.31 9.99 11,703.09 MetLife Aggressive Strategy Investment Division............ 2011 12.01 10.27 201,197.36 2012 10.27 11.80 181,854.71 MetLife Aggressive Strategy Investment Division (formerly MetLife Aggressive Allocation Investment Division) (Class B)...................................... 2005 9.99 11.13 29,348.44 2006 11.13 12.67 92,202.40 2007 12.67 12.88 152,406.40 2008 12.88 7.54 151,235.14 2009 7.54 9.76 150,755.43 2010 9.76 11.12 135,054.41 2011 11.12 12.05 0.00
257
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ MetLife Balanced Plus Investment Division (Class B) (4/30/2012)............................................. 2012 $ 9.98 $10.43 37,577.60 MetLife Conservative Allocation Investment Division (Class B) (5/1/2005).................................... 2005 9.99 10.28 34,049.10 2006 10.28 10.82 219,274.10 2007 10.82 11.24 542,410.67 2008 11.24 9.47 837,770.87 2009 9.47 11.23 722,615.32 2010 11.23 12.16 702,429.67 2011 12.16 12.36 693,399.32 2012 12.36 13.28 671,739.80 MetLife Conservative to Moderate Allocation Investment Division (Class B) (5/1/2005)........................... 2005 9.99 10.50 167,681.07 2006 10.50 11.31 803,741.14 2007 11.31 11.66 1,798,990.05 2008 11.66 9.00 2,169,751.21 2009 9.00 10.95 2,002,953.50 2010 10.95 12.02 1,952,472.22 2011 12.02 11.95 1,881,823.46 2012 11.95 13.11 1,827,206.11 MetLife Mid Cap Stock Index Investment Division (Class B)............................................... 2004 11.56 12.93 62,507.21 2005 12.93 14.26 164,022.42 2006 14.26 15.41 250,427.67 2007 15.41 16.30 335,857.52 2008 16.30 10.21 417,015.62 2009 10.21 13.74 286,771.59 2010 13.74 17.04 259,058.63 2011 17.04 16.40 248,258.06 2012 16.40 18.94 246,612.80 MetLife Moderate Allocation Investment Division (Class B) (5/1/2005).............................................. 2005 9.99 10.73 384,317.09 2006 10.73 11.81 1,882,802.48 2007 11.81 12.13 3,987,132.98 2008 12.13 8.52 4,568,457.55 2009 8.52 10.60 4,334,438.20 2010 10.60 11.81 4,380,070.37 2011 11.81 11.46 4,212,109.36 2012 11.46 12.78 3,916,510.83 MetLife Moderate to Aggressive Allocation Investment Division (Class B) (5/1/2005)........................... 2005 9.99 10.95 299,456.61 2006 10.95 12.31 1,441,069.15 2007 12.31 12.58 3,442,051.17 2008 12.58 8.03 3,852,526.33 2009 8.03 10.21 3,616,688.31 2010 10.21 11.52 3,482,450.40 2011 11.52 10.91 3,234,319.70 2012 10.91 12.39 2,989,661.01
258
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ MetLife Stock Index Investment Division (Class B). 2004 $32.97 $35.68 156,814.22 2005 35.68 36.65 508,917.52 2006 36.65 41.55 657,793.69 2007 41.55 42.92 786,082.23 2008 42.92 26.50 817,168.30 2009 26.50 32.84 771,039.32 2010 32.84 37.00 687,939.94 2011 37.00 37.01 651,882.86 2012 37.01 42.04 635,176.46 MFS(R) Research International Investment Division (Class B)....................................... 2004 9.68 11.10 9,587.47 2005 11.10 12.72 52,928.34 2006 12.72 15.84 142,466.77 2007 15.84 17.66 332,197.88 2008 17.66 10.02 297,195.00 2009 10.02 12.97 362,562.60 2010 12.97 14.22 334,005.30 2011 14.22 12.49 324,836.53 2012 12.49 14.35 318,273.89 MFS(R) Total Return Investment Division (Class B). 2004 35.53 38.58 2,372.87 2005 38.58 39.05 24,860.40 2006 39.05 43.02 30,424.70 2007 43.02 44.08 41,943.27 2008 44.08 33.68 50,483.60 2009 33.68 39.22 39,770.66 2010 39.22 42.38 36,321.13 2011 42.38 42.61 38,843.68 2012 42.61 46.67 39,502.43 MFS(R) Value Investment Division (Class B)........ 2004 12.00 12.93 108,290.64 2005 12.93 12.51 300,285.56 2006 12.51 14.51 294,966.04 2007 14.51 13.71 345,129.39 2008 13.71 8.94 330,646.25 2009 8.94 10.61 297,687.36 2010 10.61 11.61 266,856.68 2011 11.61 11.50 241,492.65 2012 11.50 13.16 228,041.64 MLA Mid Cap Investment Division (formerly Lazard Mid Cap Investment Division) (Class B)....................................... 2004 12.49 13.47 7,419.28 2005 13.47 14.33 15,908.90 2006 14.33 16.17 36,753.72 2007 16.17 15.48 58,469.53 2008 15.48 9.40 51,359.95 2009 9.40 12.65 47,405.73 2010 12.65 15.30 41,871.48 2011 15.30 14.26 35,294.31 2012 14.26 14.78 38,338.21
259
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ MSCI EAFE(R) Index Investment Division (formerly Morgan Stanley EAFE(R) Index Investment Division) (Class B).................................... 2004 $ 9.45 $10.98 126,152.13 2005 10.98 12.21 339,025.45 2006 12.21 15.07 462,728.80 2007 15.07 16.39 668,772.94 2008 16.39 9.32 681,524.58 2009 9.32 11.77 545,497.99 2010 11.77 12.50 483,619.36 2011 12.50 10.74 493,952.54 2012 10.74 12.48 443,217.81 Morgan Stanley Mid Cap Growth Investment Division (Class B).............................................. 2010 12.53 14.54 161,360.08 2011 14.54 13.32 122,560.15 2012 13.32 14.32 123,278.06 Morgan Stanley Mid Cap Growth Investment Division (formerly FI Mid Cap Opportunities Investment Division (Class B))............................................. 2004 14.44 16.24 13,577.22 2005 16.24 17.04 54,056.40 2006 17.04 18.71 83,604.41 2007 18.71 19.91 114,242.92 2008 19.91 8.73 128,226.38 2009 8.73 11.47 132,554.81 2010 11.47 12.41 0.00 Neuberger Berman Genesis Investment Division (Class B)... 2004 15.98 17.96 74,073.36 2005 17.96 18.37 223,532.64 2006 18.37 21.05 290,437.96 2007 21.05 19.95 310,676.51 2008 19.95 12.06 257,490.00 2009 12.06 13.39 233,103.41 2010 13.39 15.99 210,101.98 2011 15.99 16.61 197,376.09 2012 16.61 17.94 181,866.96 Oppenheimer Global Equity Investment Division (Class B).. 2004 12.57 14.48 9,526.43 2005 14.48 16.53 41,647.66 2006 16.53 18.92 80,340.10 2007 18.92 19.79 93,672.46 2008 19.79 11.57 133,559.11 2009 11.57 15.92 84,554.35 2010 15.92 18.17 81,079.77 2011 18.17 16.38 81,469.99 2012 16.38 19.53 71,670.87
260
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ PIMCO Inflation Protected Bond Investment Division (Class B) (5/1/2006)..................................... 2006 $10.92 $11.02 46,025.77 2007 11.02 12.01 108,646.03 2008 12.01 11.01 385,644.35 2009 11.01 12.79 385,291.98 2010 12.79 13.56 370,335.04 2011 13.56 14.83 375,395.10 2012 14.83 15.93 398,156.01 PIMCO Total Return Investment Division (Class B)........... 2004 11.59 11.99 175,654.13 2005 11.99 12.07 553,686.34 2006 12.07 12.41 649,425.03 2007 12.41 13.14 695,493.02 2008 13.14 12.98 630,863.83 2009 12.98 15.08 666,003.60 2010 15.08 16.06 745,481.48 2011 16.06 16.30 578,370.15 2012 16.30 17.53 596,834.07 Pyramis(R) Government Income Investment Division (Class B) (4/30/2012).............................................. 2012 10.75 10.90 17,925.76 RCM Technology Investment Division (Class B)............... 2004 4.14 4.30 54,690.49 2005 4.30 4.70 116,180.49 2006 4.70 4.87 135,078.24 2007 4.87 6.31 407,620.95 2008 6.31 3.45 306,232.72 2009 3.45 5.40 334,322.12 2010 5.40 6.78 306,931.63 2011 6.78 6.01 303,932.87 2012 6.01 6.63 281,002.42 Russell 2000(R) Index Investment Division (Class B)........ 2004 13.32 15.23 43,993.41 2005 15.23 15.63 125,097.16 2006 15.63 18.09 195,532.47 2007 18.09 17.50 215,892.55 2008 17.50 11.42 255,521.17 2009 11.42 14.12 186,998.51 2010 14.12 17.60 159,173.37 2011 17.60 16.57 150,708.05 2012 16.57 18.93 143,094.71 Schroders Global Multi-Asset Investment Division (Class B) (4/30/2012).............................................. 2012 1.01 1.06 139,584.42 SSgA Growth ETF Investment Division (Class B) (5/1/2006)............................................... 2006 10.69 11.38 2,415.26 2007 11.38 11.83 31,370.29 2008 11.83 7.80 28,383.39 2009 7.80 9.91 84,815.92 2010 9.91 11.14 106,307.75 2011 11.14 10.73 145,727.00 2012 10.73 12.14 141,766.85
261
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ SSgA Growth and Income ETF Investment Division (Class B) (5/1/2006)............................................. 2006 $10.50 $11.13 7,199.49 2007 11.13 11.54 18,132.34 2008 11.54 8.51 15,571.41 2009 8.51 10.46 89,717.91 2010 10.46 11.56 223,553.24 2011 11.56 11.49 274,825.40 2012 11.49 12.76 310,451.12 T. Rowe Price Large Cap Growth Investment Division (Class B).............................................. 2004 11.04 11.95 37,785.95 2005 11.95 12.50 105,911.34 2006 12.50 13.89 144,424.76 2007 13.89 14.92 188,545.73 2008 14.92 8.51 173,797.48 2009 8.51 11.99 158,106.62 2010 11.99 13.77 138,130.61 2011 13.77 13.37 131,452.54 2012 13.37 15.62 151,095.23 T. Rowe Price Mid Cap Growth Investment Division (Class B).............................................. 2004 6.23 7.06 37,130.45 2005 7.06 7.96 124,056.64 2006 7.96 8.32 194,513.98 2007 8.32 9.63 348,582.99 2008 9.63 5.71 286,541.36 2009 5.71 8.17 274,158.05 2010 8.17 10.27 243,552.93 2011 10.27 9.94 246,838.05 2012 9.94 11.12 218,366.58 T. Rowe Price Small Cap Growth Investment Division (Class B).............................................. 2004 12.20 12.99 11,525.19 2005 12.99 14.15 87,611.08 2006 14.15 14.44 117,645.04 2007 14.44 15.56 75,889.16 2008 15.56 9.75 83,913.67 2009 9.75 13.30 96,685.09 2010 13.30 17.63 92,674.51 2011 17.63 17.60 101,552.06 2012 17.60 20.08 90,749.18 Western Asset Management Strategic Bond Opportunities Investment Division (Class B).......................... 2004 18.30 19.38 41,564.54 2005 19.38 19.56 221,755.12 2006 19.56 20.18 319,978.60 2007 20.18 20.59 312,486.45 2008 20.59 17.18 246,104.98 2009 17.18 22.30 229,790.38 2010 22.30 24.68 200,682.69 2011 24.68 25.70 180,809.73 2012 25.70 28.15 181,231.16
262
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Western Asset Management U.S Government Investment Division (Class B)................................... 2004 $ 15.13 $ 15.47 82,723.50 2005 15.47 15.43 242,323.34 2006 15.43 15.78 293,388.48 2007 15.78 16.16 355,994.79 2008 16.16 15.82 294,414.86 2009 15.82 16.20 278,597.22 2010 16.20 16.82 243,578.88 2011 16.82 17.42 210,771.08 2012 17.42 17.67 205,205.44 At 1.85 Separate Account Charge: American Funds Bond Investment Division (Class 2)/(e)/. 2006 14.23 14.89 104,580.49 2007 14.89 15.11 296,130.88 2008 15.11 13.44 264,484.04 2009 13.44 14.86 226,808.25 2010 14.86 15.53 222,768.25 2011 15.53 16.17 188,923.23 2012 16.17 16.73 157,342.00 American Funds Global Small Capitalization Investment Division (Class 2)................................... 2004 15.96 18.93 68,677.50 2005 18.93 23.30 237,611.10 2006 23.30 28.38 407,554.60 2007 28.38 33.83 454,460.12 2008 33.83 15.43 381,495.88 2009 15.43 24.44 361,913.51 2010 24.44 29.37 321,170.79 2011 29.37 23.31 296,003.82 2012 23.31 27.04 274,985.36 American Funds Growth Investment Division (Class 2).... 2004 105.51 116.52 31,410.78 2005 116.52 132.91 109,541.48 2006 132.91 143.81 161,281.14 2007 143.81 158.59 181,913.28 2008 158.59 87.22 162,427.62 2009 87.22 119.37 147,719.28 2010 119.37 139.07 135,430.24 2011 139.07 130.69 124,730.74 2012 130.69 151.23 116,542.49 American Funds Growth-Income Investment Division (Class 2)............................................ 2004 82.11 88.97 32,405.93 2005 88.97 92.43 95,865.42 2006 92.43 104.54 129,393.14 2007 104.54 107.79 148,871.59 2008 107.79 65.76 135,977.45 2009 65.76 84.72 126,583.29 2010 84.72 92.67 114,355.33 2011 92.67 89.31 107,196.01 2012 89.31 102.99 105,246.29
263 PREFERENCE PLUS SELECT DEFERRED ANNUITIES GROUP II 1.65 SEPARATE ACCOUNT CHARGE
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ AllianceBernstein Global Dynamic Allocation Investment Division (Class B) (4/30/2012).......................... 2012 $ 10.19 $ 10.52 187,622.64 American Funds(R) Balanced Allocation Investment Division (Class C) (4/28/2008)................................... 2008 10.00 6.99 16,156.05 2009 6.99 8.90 6,017.17 2010 8.90 9.82 34,094.47 2011 9.82 9.45 25,977.29 2012 9.45 10.56 19,432.98 American Funds Bond Investment Division+ (Class 2) (5/1/2006).............................................. 2006 14.30 14.97 11,049.75 2007 14.97 15.19 20,204.36 2008 15.19 13.52 4,521.35 2009 13.52 14.95 7,742.30 2010 14.95 15.63 7,174.71 2011 15.63 16.29 2,871.13 2012 16.29 16.86 6,703.59 American Funds Global Small Capitalization Investment Division+ (Class 2)..................................... 2003 10.61 16.00 21,510.49 2004 16.00 19.00 47,884.39 2005 19.00 23.39 47,538.52 2006 23.39 28.50 55,052.75 2007 28.50 33.99 61,494.55 2008 33.99 15.51 37,206.10 2009 15.51 24.58 38,931.64 2010 24.58 29.55 35,491.25 2011 29.55 23.47 19,854.93 2012 23.47 27.24 17,799.96 American Funds(R) Growth Allocation Investment Division (Class C) (4/28/2008)................................... 2008 9.99 6.34 51,998.84 2009 6.34 8.37 34,825.77 2010 8.37 9.34 43,535.87 2011 9.34 8.75 37,674.58 2012 8.75 10.00 42,544.77 American Funds Growth Investment Division+ (Class 2)...... 2003 79.27 106.52 13,948.66 2004 106.52 117.68 17,556.29 2005 117.68 134.31 18,899.19 2006 134.31 145.40 18,346.30 2007 145.40 160.42 15,964.61 2008 160.42 88.27 11,078.19 2009 88.27 120.87 8,703.94 2010 120.87 140.89 7,562.07 2011 140.89 132.46 5,934.65 2012 132.46 153.36 5,040.16
264
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ American Funds Growth-Income Investment Division+ (Class 2)................................................ 2003 $ 63.73 $ 82.89 22,621.15 2004 82.89 89.86 31,348.41 2005 89.86 93.41 23,724.36 2006 93.41 105.69 19,735.20 2007 105.69 109.03 15,766.98 2008 109.03 66.55 11,621.18 2009 66.55 85.78 10,270.02 2010 85.78 93.88 8,445.76 2011 93.88 90.52 6,800.52 2012 90.52 104.44 7,069.83 American Funds(R) Moderate Allocation Investment Division (Class C) (4/28/2008).................................... 2008 10.01 7.67 78,668.60 2009 7.67 9.31 127,085.38 2010 9.31 10.06 157,906.40 2011 10.06 9.92 127,149.49 2012 9.92 10.81 121,233.87 AQR Global Risk Balanced Investment Division (Class B) (4/30/2012).............................................. 2012 11.12 11.51 291,294.97 Baillie Gifford International Stock Investment Division (formerly Artio International Stock Investment Division) (Class B)................................................ 2004 11.44 13.04 4,087.34 2005 13.04 15.09 10,887.21 2006 15.09 17.25 64,053.22 2007 17.25 18.68 21,488.93 2008 18.68 10.24 37,588.13 2009 10.24 12.28 28,498.79 2010 12.28 12.91 11,363.52 2011 12.91 10.14 10,044.05 2012 10.14 11.90 8,690.17 Barclays Capital Aggregate Bond Index Investment Division (Class B)................................................ 2004 12.23 12.58 92,544.61 2005 12.58 12.60 181,365.97 2006 12.60 12.87 186,339.30 2007 12.87 13.50 199,174.29 2008 13.50 14.02 144,680.37 2009 14.02 14.48 149,358.38 2010 14.48 15.06 137,934.06 2011 15.06 15.89 165,580.14 2012 15.89 16.19 203,375.88
265
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ BlackRock Aggressive Growth Investment Division (Class B).............................................. 2004 $32.24 $35.69 45.05 2005 35.69 38.77 238.65 2006 38.77 40.60 347.15 2007 40.60 48.02 1,326.04 2008 48.02 25.58 592.83 2009 25.58 37.51 1,130.52 2010 37.51 42.42 2,036.65 2011 42.42 40.38 3,451.97 2012 40.38 43.96 2,462.23 BlackRock Bond Income Investment Division (Class B)...... 2004 41.11 42.52 11,211.29 2005 42.52 42.73 14,994.74 2006 42.73 43.77 17,626.76 2007 43.77 45.64 18,194.79 2008 45.64 43.25 12,301.03 2009 43.25 46.45 18,287.42 2010 46.45 49.37 25,847.28 2011 49.37 51.63 19,655.22 2012 51.63 54.48 24,634.81 BlackRock Diversified Investment Division (Class B)...... 2004 33.79 36.39 2,669.97 2005 36.39 36.81 4,448.29 2006 36.81 39.92 4,329.04 2007 39.92 41.47 4,824.05 2008 41.47 30.60 5,129.19 2009 30.60 35.22 4,699.93 2010 35.22 37.87 3,868.69 2011 37.87 38.59 2,654.81 2012 38.59 42.55 1,144.76 BlackRock Global Tactical Strategies Investment Division (Class B) (4/30/2012).................................. 2012 9.94 10.25 196,460.07 BlackRock Large Cap Core Investment Division* (Class B).............................................. 2007 73.57 74.08 5,284.27 2008 74.08 45.68 5,026.92 2009 45.68 53.56 4,787.54 2010 53.56 59.24 1,663.18 2011 59.24 58.42 1,806.56 2012 58.42 65.17 1,154.02 BlackRock Large Cap Investment Division (Class B)........ 2004 56.48 62.22 3,112.55 2005 62.22 63.23 4,861.53 2006 63.23 70.81 5,383.30 2007 70.81 74.20 0.00
266
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ BlackRock Large Cap Value Investment Division (Class B).. 2004 $10.63 $11.71 1,728.59 2005 11.71 12.16 5,434.38 2006 12.16 14.25 14,987.05 2007 14.25 14.45 29,327.64 2008 14.45 9.22 21,666.18 2009 9.22 10.08 24,446.57 2010 10.08 10.80 22,539.56 2011 10.80 10.84 21,281.63 2012 10.84 12.15 21,349.26 BlackRock Legacy Large Cap Growth Investment Division (Class B).............................................. 2004 22.64 24.77 462.28 2005 24.77 26.01 1,423.51 2006 26.01 26.58 1,904.45 2007 26.58 30.97 4,756.65 2008 30.97 19.28 7,942.87 2009 19.28 25.89 11,725.39 2010 25.89 30.42 20,896.18 2011 30.42 27.19 10,262.52 2012 27.19 30.50 11,508.36 BlackRock Legacy Large Cap Growth Investment Division--Class B (formerly FI Large Cap Investment Division (5/1/2006)). 2006 16.68 16.84 6,455.51 2007 16.84 17.18 6,583.29 2008 17.18 9.30 5,931.87 2009 9.30 9.68 0.00 BlackRock Money Market Investment Division (Class B)..... 2004 20.86 20.75 104,013.73 2005 20.75 20.95 324,513.79 2006 20.95 21.54 251,151.04 2007 21.54 22.21 356,429.90 2008 22.21 22.41 494,217.18 2009 22.41 22.10 408,418.49 2010 22.10 21.74 277,015.86 2011 21.74 21.39 317,520.61 2012 21.39 21.03 207,757.64 Clarion Global Real Estate Investment Division (Class B). 2004 9.99 12.81 64,876.69 2005 12.81 14.27 80,823.38 2006 14.27 19.32 97,334.09 2007 19.32 16.15 70,377.64 2008 16.15 9.26 58,487.23 2009 9.26 12.28 46,467.07 2010 12.28 14.02 47,167.26 2011 14.02 13.02 40,306.61 2012 13.02 16.14 37,122.74
267
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Davis Venture Value Investment Division (Class B)...... 2004 $ 27.89 $ 29.97 6,468.34 2005 29.97 32.43 17,463.16 2006 32.43 36.47 20,737.71 2007 36.47 37.43 20,719.41 2008 37.43 22.26 18,021.90 2009 22.26 28.83 17,184.28 2010 28.83 31.68 30,615.25 2011 31.68 29.83 22,395.86 2012 29.83 33.05 14,901.85 FI Value Leaders Investment Division (Class B)......... 2004 22.38 25.21 371.96 2005 25.21 27.38 4,289.70 2006 27.38 30.08 9,274.23 2007 30.08 30.75 8,203.99 2008 30.75 18.41 7,620.90 2009 18.41 22.01 6,671.37 2010 22.01 24.74 3,598.85 2011 24.74 22.78 3,097.09 2012 22.78 25.87 2,567.00 Harris Oakmark International Investment Division (Class B)............................................ 2004 11.95 13.85 7,541.78 2005 13.85 15.57 14,013.75 2006 15.57 19.73 158,503.25 2007 19.73 19.19 33,144.02 2008 19.19 11.16 22,039.10 2009 11.16 17.02 29,577.09 2010 17.02 19.49 46,708.12 2011 19.49 16.44 33,109.16 2012 16.44 20.90 31,381.76 Invesco Balanced-Risk Allocation Investment Division (Class B) (4/30/2012)................................ 2012 1.01 1.04 468,572.00 Invesco Small Cap Growth Investment Division (Class B). 2004 11.29 12.07 3,525.98 2005 12.07 12.86 708.70 2006 12.86 14.44 1,143.31 2007 14.44 15.78 1,011.07 2008 15.78 9.51 510.46 2009 9.51 12.52 1,062.85 2010 12.52 15.54 663.85 2011 15.54 15.12 2,054.73 2012 15.12 17.58 557.18 Janus Forty Investment Division (Class B) (4/30/2007).. 2007 136.95 167.72 1,772.13 2008 167.72 95.68 8,411.41 2009 95.68 134.46 8,730.11 2010 134.46 144.68 8,003.07 2011 144.68 131.58 6,397.57 2012 131.58 158.56 6,238.36
268
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Jennison Growth Investment Division (Class B)............ 2005 $ 4.01 $ 4.81 8,946.99 2006 4.81 4.86 6,029.35 2007 4.86 5.32 8,827.72 2008 5.32 3.32 7,882.98 2009 3.32 4.56 12,058.85 2010 4.56 4.99 11,102.35 2011 4.99 4.92 10,168.70 2012 4.92 5.59 39,629.07 Jennison Growth Investment Division (formerly Met/Putnam Voyager Investment Division) (Class B).............................................. 2004 4.18 4.36 0.00 2005 4.36 3.97 4,519.29 Jennison Growth Investment Division (formerly Oppenheimer Capital Appreciation Investment Division) (Class B) (5/1/2005)......................... 2005 7.86 8.52 2,379.05 2006 8.52 9.02 4,179.92 2007 9.02 10.14 5,388.55 2008 10.14 5.39 7,861.72 2009 5.39 7.62 10,614.76 2010 7.62 8.20 25,578.72 2011 8.20 7.95 19,258.26 2012 7.95 8.94 0.00 JPMorgan Global Active Allocation Investment Division (Class B) (4/30/2012).................................. 2012 1.01 1.04 194,176.61 Legg Mason ClearBridge Aggressive Growth Investment Division (Class B)..................................... 2004 6.55 7.10 717.63 2005 7.10 7.94 2,248.76 2006 7.94 7.67 2,745.72 2007 7.67 7.72 2,239.73 2008 7.72 4.62 3,403.68 2009 4.62 6.05 3,284.16 2010 6.05 7.37 5,116.88 2011 7.37 7.48 11,470.45 2012 7.48 8.72 21,676.68 Legg Mason ClearBridge Aggressive Growth Investment Division (formerly Legg Mason Value Equity Investment Division) (Class B).............................................. 2006 9.19 9.83 608.35 2007 9.83 9.10 873.76 2008 9.10 4.06 622.09 2009 4.06 5.51 2,114.17 2010 5.51 5.82 1,721.86 2011 5.82 6.18 0.00 Legg Mason Value Equity Investment Division (formerly MFS(R) Investors Trust Investment Division) (Class B).............................................. 2004 7.59 8.40 0.00 2005 8.40 8.83 0.00 2006 8.83 9.22 0.00
269
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Loomis Sayles Small Cap Core Investment Division (Class B)............................................. 2004 $22.83 $25.83 210.62 2005 25.83 27.11 2,490.63 2006 27.11 31.04 5,005.48 2007 31.04 34.08 5,744.10 2008 34.08 21.43 5,297.59 2009 21.43 27.39 4,323.63 2010 27.39 34.27 10,547.88 2011 34.27 33.83 4,008.23 2012 33.83 38.02 3,093.54 Loomis Sayles Small Cap Growth Investment Division (Class B)............................................. 2004 8.74 9.66 1,105.28 2005 9.66 9.92 3,414.63 2006 9.92 10.71 5,237.83 2007 10.71 10.99 3,256.39 2008 10.99 6.34 3,427.58 2009 6.34 8.09 3,985.21 2010 8.09 10.45 5,153.33 2011 10.45 10.56 2,839.37 2012 10.56 11.52 2,321.86 Lord Abbett Bond Debenture Investment Division (Class B)............................................. 2004 15.63 16.63 9,960.03 2005 16.63 16.60 20,983.88 2006 16.60 17.82 32,633.12 2007 17.82 18.68 35,876.34 2008 18.68 14.95 27,954.76 2009 14.95 20.12 29,870.90 2010 20.12 22.36 45,596.25 2011 22.36 22.97 97,182.64 2012 22.97 25.52 41,561.26 Lord Abbett Mid Cap Value Investment Division (Class B). 2012 24.48 25.12 19,745.98 Lord Abbett Mid Cap Value Investment Division (Class B) (formerly Neuberger Berman Mid Cap Value Investment Division (Class B))................................... 2004 18.30 21.32 12,681.85 2005 21.32 23.47 30,464.03 2006 23.47 25.67 25,980.67 2007 25.67 26.06 38,147.45 2008 26.06 13.46 28,329.95 2009 13.46 19.56 27,600.62 2010 19.56 24.25 25,119.65 2011 24.25 22.26 23,605.91 2012 22.26 24.60 0.00
270
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Met/Artisan Mid Cap Value Investment Division (Class B).... 2004 $29.30 $31.74 6,059.03 2005 31.74 34.26 10,284.09 2006 34.26 37.80 10,919.67 2007 37.80 34.55 9,045.19 2008 34.55 18.30 6,989.10 2009 18.30 25.42 5,576.20 2010 25.42 28.69 5,178.93 2011 28.69 30.06 6,503.90 2012 30.06 32.99 5,174.05 Met/Franklin Income Investment Division (Class B) (4/28/2008).............................................. 2008 9.99 7.97 2,814.50 2009 7.97 10.02 15,058.83 2010 10.02 11.02 22,374.70 2011 11.02 11.07 29,960.18 2012 11.07 12.25 22,368.69 Met/Franklin Low Duration Total Return Investment Division (Class B) (5/2/2011)..................................... 2011 9.98 9.75 16,056.26 2012 9.75 10.01 59,136.25 Met/Franklin Mutual Shares Investment Division (Class B) (4/28/2008).............................................. 2008 9.99 6.58 642.17 2009 6.58 8.09 7,958.67 2010 8.09 8.83 19,227.39 2011 8.83 8.64 19,806.24 2012 8.64 9.68 20,484.17 Met/Franklin Templeton Founding Strategy Investment Division (Class B) (4/28/2008)........................... 2008 9.99 7.02 867.94 2009 7.02 8.87 11,836.69 2010 8.87 9.61 11,172.76 2011 9.61 9.28 9,548.87 2012 9.28 10.60 9,106.65 Met/Templeton Growth Investment Division (Class B) (4/28/2008).............................................. 2008 9.99 6.55 0.00 2009 6.55 8.55 0.00 2010 8.55 9.05 331.49 2011 9.05 8.29 2,115.55 2012 8.29 9.97 5,813.29 MetLife Aggressive Strategy Investment Division............ 2011 11.97 10.24 8,339.65 2012 10.24 11.76 8,120.98 MetLife Aggressive Strategy Investment Division (formerly MetLife Aggressive Allocation Investment Division) (Class B)...................................... 2005 9.99 11.13 0.00 2006 11.13 12.66 8,556.47 2007 12.66 12.86 19,507.66 2008 12.86 7.53 10,898.69 2009 7.53 9.74 18,156.28 2010 9.74 11.08 18,110.67 2011 11.08 12.01 0.00
271
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ MetLife Balanced Plus Investment Division (Class B) (4/30/2012)............................................. 2012 $ 9.97 $10.42 201,765.55 MetLife Conservative Allocation Investment Division (Class B) (5/1/2005).................................... 2005 9.99 10.28 48,694.26 2006 10.28 10.81 44,100.05 2007 10.81 11.22 101,147.89 2008 11.22 9.45 130,786.84 2009 9.45 11.20 157,381.10 2010 11.20 12.13 331,541.91 2011 12.13 12.32 367,204.20 2012 12.32 13.23 403,006.22 MetLife Conservative to Moderate Allocation Investment Division (Class B) (5/1/2005)........................... 2005 9.99 10.50 26,136.99 2006 10.50 11.30 136,761.89 2007 11.30 11.65 318,773.46 2008 11.65 8.98 343,585.58 2009 8.98 10.93 431,215.15 2010 10.93 11.99 415,944.29 2011 11.99 11.91 362,177.58 2012 11.91 13.06 356,238.35 MetLife Mid Cap Stock Index Investment Division (Class B)............................................... 2004 11.54 12.90 8,190.75 2005 12.90 14.22 20,046.68 2006 14.22 15.36 22,907.88 2007 15.36 16.24 33,285.28 2008 16.24 10.16 33,299.10 2009 10.16 13.67 38,581.66 2010 13.67 16.95 40,148.19 2011 16.95 16.31 32,458.21 2012 16.31 18.82 35,346.48 MetLife Moderate Allocation Investment Division (Class B) (5/1/2005).............................................. 2005 9.99 10.73 41,876.81 2006 10.73 11.80 117,192.72 2007 11.80 12.11 420,449.94 2008 12.11 8.50 498,152.76 2009 8.50 10.58 548,024.72 2010 10.58 11.78 715,122.89 2011 11.78 11.43 838,757.28 2012 11.43 12.73 746,282.24 MetLife Moderate to Aggressive Allocation Investment Division (Class B) (5/1/2005)........................... 2005 9.99 10.95 1,384.24 2006 10.95 12.30 149,531.62 2007 12.30 12.57 307,589.33 2008 12.57 8.02 417,724.16 2009 8.02 10.18 378,482.14 2010 10.18 11.49 380,176.35 2011 11.49 10.88 356,383.45 2012 10.88 12.34 226,623.31
272
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ MetLife Stock Index Investment Division (Class B). 2004 $32.74 $35.42 44,091.65 2005 35.42 36.37 59,871.73 2006 36.37 41.20 62,239.34 2007 41.20 42.54 111,947.04 2008 42.54 26.25 105,372.64 2009 26.25 32.52 66,441.05 2010 32.52 36.62 56,040.05 2011 36.62 36.61 55,533.46 2012 36.61 41.56 53,948.87 MFS(R) Research International Investment Division (Class B)....................................... 2004 9.66 11.08 1,039.50 2005 11.08 12.69 8,054.13 2006 12.69 15.80 172,511.87 2007 15.80 17.60 23,109.56 2008 17.60 9.98 21,656.53 2009 9.98 12.91 19,612.17 2010 12.91 14.15 18,757.76 2011 14.15 12.43 11,573.46 2012 12.43 14.26 8,975.23 MFS(R) Total Return Investment Division (Class B). 2004 35.23 38.24 4,251.94 2005 38.24 38.69 7,910.43 2006 38.69 42.60 6,982.51 2007 42.60 43.63 7,881.47 2008 43.63 33.32 7,731.63 2009 33.32 38.77 5,617.31 2010 38.77 41.88 4,550.38 2011 41.88 42.08 3,737.38 2012 42.08 46.07 3,504.08 MFS(R) Value Investment Division (Class B)........ 2004 11.96 12.89 10,020.95 2005 12.89 12.47 19,981.09 2006 12.47 14.46 23,281.72 2007 14.46 13.65 18,523.30 2008 13.65 8.90 11,013.51 2009 8.90 10.55 7,621.89 2010 10.55 11.54 14,044.68 2011 11.54 11.42 14,636.11 2012 11.42 13.07 12,870.38 MLA Mid Cap Investment Division (formerly Lazard Mid Cap Investment Division) (Class B)....................................... 2004 12.48 13.45 1,004.90 2005 13.45 14.30 2,031.80 2006 14.30 16.13 1,841.64 2007 16.13 15.44 3,277.99 2008 15.44 9.37 3,155.11 2009 9.37 12.60 3,896.69 2010 12.60 15.23 2,336.24 2011 15.23 14.19 2,374.96 2012 14.19 14.69 2,025.78
273
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ MSCI EAFE(R) Index Investment Division (formerly Morgan Stanley EAFE(R) Index Investment Division) (Class B).................................... 2004 $ 9.43 $10.95 22,629.26 2005 10.95 12.16 36,330.89 2006 12.16 15.01 94,413.27 2007 15.01 16.32 47,786.63 2008 16.32 9.27 50,768.87 2009 9.27 11.70 71,741.27 2010 11.70 12.42 80,156.73 2011 12.42 10.67 71,557.02 2012 10.67 12.39 63,474.31 Morgan Stanley Mid Cap Growth Investment Division (Class B).............................................. 2010 12.45 14.44 10,863.44 2011 14.44 13.22 12,568.14 2012 13.22 14.21 9,509.04 Morgan Stanley Mid Cap Growth Investment Division (formerly FI Mid Cap Opportunities Investment Division (Class B))............................................. 2004 14.39 16.17 1,644.30 2005 16.17 16.97 5,360.57 2006 16.97 18.62 14,154.65 2007 18.62 19.80 12,863.26 2008 19.80 8.68 10,660.15 2009 8.68 11.40 9,834.12 2010 11.40 12.33 0.00 Neuberger Berman Genesis Investment Division (Class B)... 2004 15.95 17.92 11,753.30 2005 17.92 18.32 21,628.30 2006 18.32 20.98 20,997.41 2007 20.98 19.87 20,421.61 2008 19.87 12.01 16,063.34 2009 12.01 13.33 16,591.46 2010 13.33 15.91 8,810.16 2011 15.91 16.51 8,078.86 2012 16.51 17.82 6,354.72 Oppenheimer Global Equity Investment Division (Class B).. 2004 12.52 14.42 627.40 2005 14.42 16.45 13,096.47 2006 16.45 18.83 13,133.45 2007 18.83 19.68 14,215.52 2008 19.68 11.50 10,509.76 2009 11.50 15.82 6,253.79 2010 15.82 18.04 8,920.09 2011 18.04 16.26 8,439.75 2012 16.26 19.38 8,547.36 PIMCO Inflation Protected Bond Investment Division (Class B) (5/1/2006)................................... 2006 10.91 11.00 19,189.87 2007 11.00 11.98 26,163.63 2008 11.98 10.97 91,603.08 2009 10.97 12.74 109,422.34 2010 12.74 13.51 173,262.12 2011 13.51 14.77 185,064.63 2012 14.77 15.85 249,001.07
274
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ PIMCO Total Return Investment Division (Class B)........... 2004 $11.57 $11.97 75,764.44 2005 11.97 12.04 124,281.92 2006 12.04 12.38 112,961.77 2007 12.38 13.10 97,628.56 2008 13.10 12.93 79,653.79 2009 12.93 15.02 114,495.01 2010 15.02 15.98 177,152.52 2011 15.98 16.21 162,544.82 2012 16.21 17.43 190,533.63 Pyramis(R) Government Income Investment Division (Class B) (4/30/2012).............................................. 2012 10.74 10.89 120,267.49 RCM Technology Investment Division (Class B)............... 2004 4.13 4.29 3,524.62 2005 4.29 4.69 13,740.54 2006 4.69 4.86 9,597.81 2007 4.86 6.29 39,985.44 2008 6.29 3.43 17,963.24 2009 3.43 5.37 30,301.95 2010 5.37 6.75 32,973.04 2011 6.75 5.98 39,014.47 2012 5.98 6.59 25,207.82 Russell 2000(R) Index Investment Division (Class B)........ 2004 13.28 15.18 9,859.86 2005 15.18 15.58 18,345.93 2006 15.58 18.02 14,354.90 2007 18.02 17.42 16,365.06 2008 17.42 11.36 21,728.68 2009 11.36 14.05 18,437.94 2010 14.05 17.49 18,099.33 2011 17.49 16.47 17,496.95 2012 16.47 18.80 19,657.11 Schroders Global Multi-Asset Investment Division (Class B) (4/30/2012).............................................. 2012 1.01 1.06 229,272.71 SSgA Growth ETF Investment Division (Class B) (5/1/2006)............................................... 2006 10.68 11.38 7,083.60 2007 11.38 11.82 2,192.61 2008 11.82 7.79 0.00 2009 7.79 9.89 21,585.81 2010 9.89 11.11 14,597.72 2011 11.11 10.69 19,725.38 2012 10.69 12.10 25,036.59 SSgA Growth and Income ETF Investment Division (Class B) (5/1/2006)............................................... 2006 10.49 11.12 9,073.32 2007 11.12 11.53 8,857.10 2008 11.53 8.50 3,949.15 2009 8.50 10.44 21,678.40 2010 10.44 11.53 58,683.04 2011 11.53 11.46 68,826.88 2012 11.46 12.72 67,111.05
275
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ T. Rowe Price Large Cap Growth Investment Division (Class B)........................................... 2004 $11.01 $11.91 18,675.83 2005 11.91 12.46 24,525.87 2006 12.46 13.83 14,585.86 2007 13.83 14.85 17,001.87 2008 14.85 8.47 10,362.31 2009 8.47 11.92 14,593.26 2010 11.92 13.69 11,985.48 2011 13.69 13.28 9,964.05 2012 13.28 15.51 10,132.08 T. Rowe Price Mid Cap Growth Investment Division (Class B)........................................... 2004 6.22 7.04 16,291.17 2005 7.04 7.94 26,125.77 2006 7.94 8.29 28,679.60 2007 8.29 9.60 27,213.69 2008 9.60 5.69 22,959.63 2009 5.69 8.14 22,577.55 2010 8.14 10.22 27,581.73 2011 10.22 9.89 31,667.89 2012 9.89 11.06 32,106.37 T. Rowe Price Small Cap Growth Investment Division (Class B)........................................... 2004 12.16 12.94 3,454.17 2005 12.94 14.09 5,424.51 2006 14.09 14.37 6,328.13 2007 14.37 15.48 4,990.63 2008 15.48 9.69 3,420.02 2009 9.69 13.22 5,176.45 2010 13.22 17.51 8,609.71 2011 17.51 17.47 7,151.98 2012 17.47 19.92 8,349.10 Western Asset Management Strategic Bond Opportunities Investment Division (Class B)....................... 2004 18.21 19.28 12,615.56 2005 19.28 19.45 34,252.48 2006 19.45 20.05 37,010.35 2007 20.05 20.46 37,040.76 2008 20.46 17.06 23,747.46 2009 17.06 22.13 24,689.17 2010 22.13 24.48 23,877.41 2011 24.48 25.48 16,804.83 2012 25.48 27.90 10,599.22
276
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Western Asset Management U.S Government Investment Division (Class B)................................... 2004 $ 15.05 $ 15.39 47,113.92 2005 15.39 15.35 38,050.25 2006 15.35 15.69 43,062.40 2007 15.69 16.05 38,784.70 2008 16.05 15.70 39,493.67 2009 15.70 16.08 42,093.17 2010 16.08 16.68 78,786.11 2011 16.68 17.28 63,750.08 2012 17.28 17.51 63,708.41 At 1.90 Separate Account Charge: -------------------------------- American Funds Bond Investment Division (Class 2)/(e)/. 2006 14.17 14.82 8,654.37 2007 14.82 15.03 64,679.57 2008 15.03 13.36 27,408.60 2009 13.36 14.77 23,620.66 2010 14.77 15.42 22,683.57 2011 15.42 16.06 18,863.69 2012 16.06 16.60 16,897.93 American Funds Global Small Capitalization Investment Division (Class 2)................................... 2004 15.91 18.87 4,289.64 2005 18.87 23.21 27,075.11 2006 23.21 28.26 58,485.92 2007 28.26 33.66 41,391.23 2008 33.66 15.35 26,114.42 2009 15.35 24.29 27,842.07 2010 24.29 29.18 27,636.95 2011 29.18 23.15 28,516.35 2012 23.15 26.84 23,609.19 American Funds Growth Investment Division (Class 2).... 2004 104.47 115.31 3,649.80 2005 115.31 131.46 8,989.65 2006 131.46 142.18 11,261.16 2007 142.18 156.71 11,033.18 2008 156.71 86.14 10,264.18 2009 86.14 117.83 8,082.71 2010 117.83 137.21 8,417.00 2011 137.21 128.88 7,339.49 2012 128.88 149.06 6,285.47 American Funds Growth-Income Investment Division (Class 2)............................................ 2004 81.30 88.04 5,115.63 2005 88.04 91.43 12,031.87 2006 91.43 103.35 13,277.30 2007 103.35 106.51 14,919.20 2008 106.51 64.94 12,346.01 2009 64.94 83.63 10,789.21 2010 83.63 91.43 13,486.73 2011 91.43 88.07 10,554.48 2012 88.07 101.52 9,249.29
277 PREFERENCE PLUS SELECT DEFERRED ANNUITIES GROUP II 1.70 SEPARATE ACCOUNT CHARGE
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ AllianceBernstein Global Dynamic Allocation Investment Division (Class B) (4/30/2012).......................... 2012 $ 10.18 $ 10.51 113,483.00 American Funds(R) Balanced Allocation Investment Division (Class C) (4/28/2008)................................... 2008 10.00 6.99 793,338.10 2009 6.99 8.89 869,855.14 2010 8.89 9.81 818,146.78 2011 9.81 9.44 690,630.79 2012 9.44 10.53 522,800.24 American Funds Bond Investment Division+ (Class 2) (5/1/2006).............................................. 2006 14.23 14.89 110,668.18 2007 14.89 15.11 252,107.71 2008 15.11 13.44 158,993.33 2009 13.44 14.86 118,527.47 2010 14.86 15.53 22,969.39 2011 15.53 16.17 437.67 2012 16.17 16.73 460.76 American Funds Global Small Capitalization Investment Division+ (Class 2)..................................... 2003 10.59 15.96 171,695.10 2004 15.96 18.93 369,097.08 2005 18.93 23.30 429,939.53 2006 23.30 28.38 467,603.88 2007 28.38 33.83 501,389.85 2008 33.83 15.43 399,490.96 2009 15.43 24.44 293,090.40 2010 24.44 29.37 116,062.47 2011 29.37 23.31 6,031.79 2012 23.31 27.04 5,112.91 American Funds(R) Growth Allocation Investment Division (Class C) (4/28/2008)................................... 2008 9.99 6.34 866,564.61 2009 6.34 8.36 1,244,523.49 2010 8.36 9.33 1,208,017.85 2011 9.33 8.74 1,121,832.05 2012 8.74 9.98 931,006.43 American Funds Growth Investment Division+ (Class 2)...... 2003 78.52 105.46 124,946.44 2004 105.46 116.46 226,287.64 2005 116.46 132.85 227,880.56 2006 132.85 143.74 219,738.44 2007 143.74 158.52 200,783.72 2008 158.52 87.18 165,466.58 2009 87.18 119.31 122,803.65 2010 119.31 139.01 45,720.85 2011 139.01 130.63 3,657.11 2012 130.63 151.16 3,242.75
278
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ American Funds Growth-Income Investment Division+ (Class 2)................................................ 2003 $ 63.13 $ 82.07 152,150.41 2004 82.07 88.92 272,765.78 2005 88.92 92.39 271,138.47 2006 92.39 104.49 255,679.74 2007 104.49 107.74 235,028.44 2008 107.74 65.72 184,407.55 2009 65.72 84.68 140,511.13 2010 84.68 92.63 50,052.03 2011 92.63 89.27 2,562.50 2012 89.27 102.94 2,207.35 American Funds(R) Moderate Allocation Investment Division (Class C) (4/28/2008).................................... 2008 10.01 7.66 770,785.94 2009 7.66 9.30 1,145,363.81 2010 9.30 10.05 1,205,333.73 2011 10.05 9.90 1,114,620.29 2012 9.90 10.79 804,485.60 AQR Global Risk Balanced Investment Division (Class B) (4/30/2012).............................................. 2012 11.11 11.50 223,028.66 Baillie Gifford International Stock Investment Division (formerly Artio International Stock Investment Division) (Class B)................................................ 2004 11.36 12.95 66,514.52 2005 12.95 14.98 189,007.22 2006 14.98 17.12 286,646.95 2007 17.12 18.52 345,202.32 2008 18.52 10.15 337,447.42 2009 10.15 12.16 301,283.60 2010 12.16 12.78 268,890.23 2011 12.78 10.03 212,082.93 2012 10.03 11.77 135,547.35 Barclays Capital Aggregate Bond Index Investment Division (Class B)................................................ 2004 12.20 12.54 912,875.40 2005 12.54 12.55 2,487,168.01 2006 12.55 12.81 3,484,985.75 2007 12.81 13.44 3,999,451.60 2008 13.44 13.95 2,966,370.88 2009 13.95 14.40 2,989,033.63 2010 14.40 14.97 2,779,607.23 2011 14.97 15.79 2,047,871.67 2012 15.79 16.08 1,160,811.31
279
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ BlackRock Aggressive Growth Investment Division (Class B).............................................. 2004 $31.99 $35.39 14,507.99 2005 35.39 38.43 33,286.34 2006 38.43 40.23 43,705.22 2007 40.23 47.55 70,980.26 2008 47.55 25.31 82,539.30 2009 25.31 37.10 78,531.15 2010 37.10 41.95 70,414.69 2011 41.95 39.90 56,216.66 2012 39.90 43.42 39,600.24 BlackRock Bond Income Investment Division (Class B)...... 2004 40.69 42.07 99,262.50 2005 42.07 42.25 244,663.60 2006 42.25 43.26 285,288.76 2007 43.26 45.09 293,830.30 2008 45.09 42.70 232,467.50 2009 42.70 45.84 222,884.83 2010 45.84 48.70 211,782.20 2011 48.70 50.90 168,420.66 2012 50.90 53.68 100,728.69 BlackRock Diversified Investment Division (Class B)...... 2004 33.49 36.06 80,214.35 2005 36.06 36.45 170,523.14 2006 36.45 39.51 198,591.75 2007 39.51 41.02 213,746.69 2008 41.02 30.26 193,973.87 2009 30.26 34.81 181,978.89 2010 34.81 37.41 182,881.50 2011 37.41 38.10 124,157.31 2012 38.10 41.99 57,961.53 BlackRock Global Tactical Strategies Investment Division (Class B) (4/30/2012).................................. 2012 9.94 10.24 132,028.62 BlackRock Large Cap Core Investment Division* (Class B).............................................. 2007 72.70 73.18 39,294.08 2008 73.18 45.10 36,769.51 2009 45.10 52.85 42,519.16 2010 52.85 58.43 40,747.38 2011 58.43 57.60 33,670.67 2012 57.60 64.22 20,167.00 BlackRock Large Cap Investment Division (Class B)........ 2004 55.89 61.55 16,467.79 2005 61.55 62.52 29,159.47 2006 62.52 69.98 31,632.37 2007 69.98 73.32 0.00
280
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ BlackRock Large Cap Value Investment Division (Class B).............................................. 2004 $10.62 $11.70 97,499.59 2005 11.70 12.14 281,289.27 2006 12.14 14.22 785,867.66 2007 14.22 14.41 891,656.41 2008 14.41 9.19 829,917.35 2009 9.19 10.04 684,291.55 2010 10.04 10.75 640,457.24 2011 10.75 10.79 439,855.08 2012 10.79 12.08 313,028.59 BlackRock Legacy Large Cap Growth Investment Division (Class B).............................................. 2004 22.54 24.65 17,058.19 2005 24.65 25.87 55,172.58 2006 25.87 26.42 80,102.03 2007 26.42 30.76 133,618.69 2008 30.76 19.14 189,943.84 2009 19.14 25.69 188,147.65 2010 25.69 30.18 154,658.84 2011 30.18 26.95 134,915.21 2012 26.95 30.23 88,372.56 BlackRock Legacy Large Cap Growth Investment Division--Class B (formerly FI Large Cap Investment Division (5/1/2006))............................................ 2006 16.60 16.76 8,101.86 2007 16.76 17.09 22,822.86 2008 17.09 9.24 21,354.23 2009 9.24 9.62 0.00 BlackRock Money Market Investment Division (Class B)..... 2004 20.64 20.53 33,612.06 2005 20.53 20.72 96,921.47 2006 20.72 21.29 121,116.76 2007 21.29 21.94 140,229.63 2008 21.94 22.13 236,478.05 2009 22.13 21.81 211,366.01 2010 21.81 21.45 211,791.59 2011 21.45 21.08 132,390.45 2012 21.08 20.73 85,708.31 Clarion Global Real Estate Investment Division (Class B). 2004 9.99 12.80 500,548.88 2005 12.80 14.26 1,035,388.32 2006 14.26 19.29 1,703,076.70 2007 19.29 16.12 1,354,919.10 2008 16.12 9.24 1,100,900.47 2009 9.24 12.24 926,949.89 2010 12.24 13.97 787,792.03 2011 13.97 12.97 590,151.12 2012 12.97 16.07 333,318.97
281
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Davis Venture Value Investment Division (Class B)...... 2004 $ 27.76 $ 29.82 141,982.73 2005 29.82 32.25 388,337.72 2006 32.25 36.25 584,897.58 2007 36.25 37.18 642,957.77 2008 37.18 22.11 617,269.34 2009 22.11 28.61 597,878.96 2010 28.61 31.43 558,016.26 2011 31.43 29.58 422,176.75 2012 29.58 32.75 252,061.83 FI Value Leaders Investment Division (Class B)......... 2004 22.26 25.06 19,437.68 2005 25.06 27.21 93,322.20 2006 27.21 29.87 170,569.65 2007 29.87 30.52 169,574.77 2008 30.52 18.27 146,370.87 2009 18.27 21.82 146,108.83 2010 21.82 24.52 140,404.04 2011 24.52 22.57 120,383.58 2012 22.57 25.62 73,636.93 Harris Oakmark International Investment Division (Class B)............................................ 2004 11.94 13.83 151,127.30 2005 13.83 15.53 405,603.51 2006 15.53 19.68 897,052.85 2007 19.68 19.13 955,712.37 2008 19.13 11.12 716,024.87 2009 11.12 16.95 731,710.70 2010 16.95 19.40 712,104.44 2011 19.40 16.35 568,707.64 2012 16.35 20.78 342,618.65 Invesco Balanced-Risk Allocation Investment Division (Class B) (4/30/2012)................................ 2012 1.01 1.04 1,573,105.13 Invesco Small Cap Growth Investment Division (Class B). 2004 11.27 12.05 26,294.95 2005 12.05 12.83 50,215.73 2006 12.83 14.41 82,523.50 2007 14.41 15.73 94,017.36 2008 15.73 9.47 80,145.63 2009 9.47 12.46 73,627.85 2010 12.46 15.46 60,530.15 2011 15.46 15.04 50,847.28 2012 15.04 17.48 33,799.64 Janus Forty Investment Division (Class B) (4/30/2007).. 2007 135.24 165.57 28,994.67 2008 165.57 94.41 111,088.82 2009 94.41 132.60 112,266.18 2010 132.60 142.62 84,422.82 2011 142.62 129.64 58,689.29 2012 129.64 156.14 44,301.64
282
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Jennison Growth Investment Division (Class B)............ 2005 $ 4.00 $ 4.80 61,967.11 2006 4.80 4.84 142,425.77 2007 4.84 5.30 225,098.62 2008 5.30 3.30 211,021.60 2009 3.30 4.53 272,274.33 2010 4.53 4.96 311,550.99 2011 4.96 4.89 265,087.27 2012 4.89 5.56 364,736.37 Jennison Growth Investment Division (formerly Met/Putnam Voyager Investment Division) (Class B).............................................. 2004 4.17 4.35 17,007.14 2005 4.35 3.96 24,141.97 Jennison Growth Investment Division (formerly Oppenheimer Capital Appreciation Investment Division) (Class B) (5/1/2005)......................... 2005 7.84 8.50 40,222.67 2006 8.50 8.99 137,636.89 2007 8.99 10.10 329,952.88 2008 10.10 5.37 350,373.23 2009 5.37 7.59 290,429.06 2010 7.59 8.16 228,899.19 2011 8.16 7.91 171,418.41 2012 7.91 8.89 0.00 JPMorgan Global Active Allocation Investment Division (Class B) (4/30/2012).................................. 2012 1.01 1.04 985,411.83 Legg Mason ClearBridge Aggressive Growth Investment Division (Class B)..................................... 2004 6.54 7.09 37,453.78 2005 7.09 7.92 107,721.48 2006 7.92 7.65 181,140.34 2007 7.65 7.69 159,531.06 2008 7.69 4.61 147,199.47 2009 4.61 6.02 129,670.93 2010 6.02 7.33 132,040.29 2011 7.33 7.44 251,646.93 2012 7.44 8.67 177,177.38 Legg Mason ClearBridge Aggressive Growth Investment Division (formerly Legg Mason Value Equity Investment Division) (Class B).............................................. 2006 9.15 9.80 85,499.93 2007 9.80 9.06 112,238.01 2008 9.06 4.04 129,264.47 2009 4.04 5.48 133,249.29 2010 5.48 5.78 149,399.49 2011 5.78 6.14 0.00 Legg Mason Value Equity Investment Division (formerly MFS(R) Investors Trust Investment Division) (Class B).............................................. 2004 7.57 8.38 12,559.46 2005 8.38 8.80 26,386.07 2006 8.80 9.19 44,385.13
283
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Loomis Sayles Small Cap Core Investment Division (Class B)............................................. 2004 $22.72 $25.69 12,143.39 2005 25.69 26.95 40,829.47 2006 26.95 30.84 130,657.92 2007 30.84 33.84 199,591.20 2008 33.84 21.27 173,286.62 2009 21.27 27.17 158,982.65 2010 27.17 33.99 138,249.17 2011 33.99 33.53 100,455.61 2012 33.53 37.66 68,799.12 Loomis Sayles Small Cap Growth Investment Division (Class B)............................................. 2004 8.73 9.64 57,281.24 2005 9.64 9.90 154,552.24 2006 9.90 10.68 155,088.49 2007 10.68 10.95 148,632.91 2008 10.95 6.32 136,278.75 2009 6.32 8.05 140,002.30 2010 8.05 10.40 141,767.81 2011 10.40 10.51 96,526.61 2012 10.51 11.45 53,308.02 Lord Abbett Bond Debenture Investment Division (Class B)............................................. 2004 15.57 16.56 124,851.59 2005 16.56 16.52 328,720.38 2006 16.52 17.73 549,861.12 2007 17.73 18.57 683,372.92 2008 18.57 14.86 521,594.46 2009 14.86 19.98 494,089.65 2010 19.98 22.19 462,448.39 2011 22.19 22.79 335,826.21 2012 22.79 25.31 208,246.14 Lord Abbett Mid Cap Value Investment Division (Class B). 2012 24.32 24.95 268,864.60 Lord Abbett Mid Cap Value Investment Division (Class B) (formerly Neuberger Berman Mid Cap Value Investment Division (Class B))................................... 2004 18.25 21.25 245,824.45 2005 21.25 23.39 630,927.75 2006 23.39 25.57 853,094.21 2007 25.57 25.94 925,152.39 2008 25.94 13.39 828,055.72 2009 13.39 19.45 738,216.07 2010 19.45 24.11 706,710.32 2011 24.11 22.12 513,179.82 2012 22.12 24.44 0.00
284
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Met/Artisan Mid Cap Value Investment Division (Class B).... 2004 $29.14 $31.56 117,721.46 2005 31.56 34.04 298,396.49 2006 34.04 37.54 324,215.96 2007 37.54 34.29 314,103.91 2008 34.29 18.16 246,922.94 2009 18.16 25.21 223,645.47 2010 25.21 28.44 202,186.24 2011 28.44 29.78 129,478.03 2012 29.78 32.67 53,003.37 Met/Franklin Income Investment Division (Class B) (4/28/2008).............................................. 2008 9.99 7.96 65,467.64 2009 7.96 10.01 133,239.70 2010 10.01 11.01 143,548.29 2011 11.01 11.05 176,890.14 2012 11.05 12.22 140,691.56 Met/Franklin Low Duration Total Return Investment Division (Class B) (5/2/2011)..................................... 2011 9.98 9.74 19,294.14 2012 9.74 10.00 14,036.23 Met/Franklin Mutual Shares Investment Division (Class B) (4/28/2008).............................................. 2008 9.99 6.58 29,274.68 2009 6.58 8.08 67,025.87 2010 8.08 8.82 80,339.99 2011 8.82 8.63 75,652.87 2012 8.63 9.66 54,433.05 Met/Franklin Templeton Founding Strategy Investment Division (Class B) (4/28/2008)........................... 2008 9.99 7.01 144,929.43 2009 7.01 8.87 175,218.39 2010 8.87 9.59 181,606.59 2011 9.59 9.27 176,923.24 2012 9.27 10.58 172,285.84 Met/Templeton Growth Investment Division (Class B) (4/28/2008).............................................. 2008 9.99 6.55 25,230.25 2009 6.55 8.54 33,984.78 2010 8.54 9.04 46,013.11 2011 9.04 8.28 39,722.38 2012 8.28 9.94 38,155.90 MetLife Aggressive Strategy Investment Division............ 2011 11.94 10.20 289,597.47 2012 10.20 11.71 184,209.57
285
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ MetLife Aggressive Strategy Investment Division (formerly MetLife Aggressive Allocation Investment Division) (Class B)..................................... 2005 $ 9.99 $11.12 28,913.27 2006 11.12 12.65 196,169.63 2007 12.65 12.84 356,079.47 2008 12.84 7.52 347,402.50 2009 7.52 9.72 313,709.18 2010 9.72 11.05 316,081.56 2011 11.05 11.97 0.00 MetLife Balanced Plus Investment Division (Class B) (4/30/2012)............................................. 2012 9.97 10.41 101,664.95 MetLife Conservative Allocation Investment Division (Class B) (5/1/2005).................................... 2005 9.99 10.27 265,930.71 2006 10.27 10.80 432,526.78 2007 10.80 11.21 688,541.23 2008 11.21 9.43 877,797.87 2009 9.43 11.18 1,082,687.42 2010 11.18 12.09 1,183,697.95 2011 12.09 12.28 1,060,803.91 2012 12.28 13.18 887,677.65 MetLife Conservative to Moderate Allocation Investment Division (Class B) (5/1/2005)........................... 2005 9.99 10.49 455,839.07 2006 10.49 11.29 1,597,413.69 2007 11.29 11.63 2,891,813.57 2008 11.63 8.96 3,704,385.94 2009 8.96 10.90 3,639,409.33 2010 10.90 11.95 3,224,682.12 2011 11.95 11.87 3,049,295.30 2012 11.87 13.01 2,238,591.42 MetLife Mid Cap Stock Index Investment Division (Class B)............................................... 2004 11.52 12.87 208,061.30 2005 12.87 14.18 554,103.04 2006 14.18 15.31 720,723.19 2007 15.31 16.18 815,160.84 2008 16.18 10.12 870,940.54 2009 10.12 13.61 779,815.38 2010 13.61 16.86 668,440.65 2011 16.86 16.21 516,917.97 2012 16.21 18.70 295,786.90 MetLife Moderate Allocation Investment Division (Class B) (5/1/2005).............................................. 2005 9.99 10.72 1,208,419.42 2006 10.72 11.79 3,901,804.14 2007 11.79 12.09 7,491,319.15 2008 12.09 8.48 8,298,987.60 2009 8.48 10.55 8,986,111.50 2010 10.55 11.74 8,178,762.89 2011 11.74 11.39 7,153,548.23 2012 11.39 12.68 6,196,519.96
286
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ MetLife Moderate to Aggressive Allocation Investment Division (Class B) (5/1/2005)...................... 2005 $ 9.99 $10.95 600,426.63 2006 10.95 12.29 2,916,170.94 2007 12.29 12.55 6,445,914.14 2008 12.55 8.00 7,010,215.91 2009 8.00 10.16 6,600,476.28 2010 10.16 11.46 5,988,775.33 2011 11.46 10.84 5,379,939.70 2012 10.84 12.30 4,530,421.79 MetLife Stock Index Investment Division (Class B).... 2004 32.51 35.16 454,627.96 2005 35.16 36.08 1,199,871.15 2006 36.08 40.86 1,603,848.66 2007 40.86 42.17 1,777,768.44 2008 42.17 26.01 1,911,644.92 2009 26.01 32.20 1,814,584.61 2010 32.20 36.24 1,671,477.38 2011 36.24 36.22 1,245,019.27 2012 36.22 41.10 668,960.47 MFS(R) Research International Investment Division (Class B).......................................... 2004 9.65 11.06 50,747.07 2005 11.06 12.66 136,987.82 2006 12.66 15.75 459,100.86 2007 15.75 17.54 602,200.33 2008 17.54 9.94 760,261.43 2009 9.94 12.85 625,532.66 2010 12.85 14.08 490,362.55 2011 14.08 12.36 346,186.10 2012 12.36 14.18 236,632.71 MFS(R) Total Return Investment Division (Class B).... 2004 34.93 37.91 57,702.72 2005 37.91 38.33 124,020.75 2006 38.33 42.19 132,486.50 2007 42.19 43.18 145,281.71 2008 43.18 32.96 120,025.00 2009 32.96 38.34 109,408.46 2010 38.34 41.38 87,465.14 2011 41.38 41.57 54,926.07 2012 41.57 45.48 31,372.88 MFS(R) Value Investment Division (Class B)........... 2004 11.93 12.85 374,626.53 2005 12.85 12.43 724,619.90 2006 12.43 14.40 756,964.22 2007 14.40 13.58 757,560.42 2008 13.58 8.85 618,064.49 2009 8.85 10.49 549,389.91 2010 10.49 11.47 536,957.19 2011 11.47 11.35 334,795.09 2012 11.35 12.98 193,001.23
287
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ MLA Mid Cap Investment Division (formerly Lazard Mid Cap Investment Division) (Class B).............................................. 2004 $12.46 $13.43 36,281.76 2005 13.43 14.27 72,907.38 2006 14.27 16.09 140,197.13 2007 16.09 15.39 199,724.02 2008 15.39 9.33 143,593.02 2009 9.33 12.55 125,031.77 2010 12.55 15.16 116,809.60 2011 15.16 14.12 84,642.29 2012 14.12 14.61 54,586.62 MSCI EAFE(R) Index Investment Division (formerly Morgan Stanley EAFE(R) Index Investment Division) (Class B).................................... 2004 9.40 10.91 332,349.68 2005 10.91 12.12 858,238.92 2006 12.12 14.95 1,194,424.94 2007 14.95 16.24 1,350,230.97 2008 16.24 9.23 1,590,004.75 2009 9.23 11.64 1,410,760.29 2010 11.64 12.35 1,345,440.92 2011 12.35 10.60 1,113,726.53 2012 10.60 12.30 651,851.98 Morgan Stanley Mid Cap Growth Investment Division (Class B).............................................. 2010 12.37 14.34 230,651.94 2011 14.34 13.12 149,387.78 2012 13.12 14.10 105,930.46 Morgan Stanley Mid Cap Growth Investment Division (formerly FI Mid Cap Opportunities Investment Division (Class B))............................................. 2004 14.34 16.11 87,053.78 2005 16.11 16.89 144,414.87 2006 16.89 18.53 233,166.60 2007 18.53 19.69 278,142.29 2008 19.69 8.63 263,433.41 2009 8.63 11.33 232,422.73 2010 11.33 12.25 0.00 Neuberger Berman Genesis Investment Division (Class B)... 2004 15.92 17.88 319,423.19 2005 17.88 18.26 519,681.12 2006 18.26 20.91 565,296.57 2007 20.91 19.80 532,334.89 2008 19.80 11.96 434,107.53 2009 11.96 13.26 407,729.67 2010 13.26 15.83 378,764.16 2011 15.83 16.42 216,512.39 2012 16.42 17.71 68,808.14
288
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Oppenheimer Global Equity Investment Division (Class B)......................................... 2004 $12.48 $14.36 27,956.80 2005 14.36 16.38 117,941.26 2006 16.38 18.74 248,855.43 2007 18.74 19.57 343,124.58 2008 19.57 11.44 269,245.86 2009 11.44 15.72 222,415.71 2010 15.72 17.92 251,014.54 2011 17.92 16.14 182,740.84 2012 16.14 19.22 138,424.65 PIMCO Inflation Protected Bond Investment Division (Class B) (5/1/2006).............................. 2006 10.89 10.98 98,620.86 2007 10.98 11.96 347,789.82 2008 11.96 10.94 1,120,866.37 2009 10.94 12.70 1,110,381.27 2010 12.70 13.46 963,131.83 2011 13.46 14.71 757,531.33 2012 14.71 15.78 566,761.97 PIMCO Total Return Investment Division (Class B).... 2004 11.55 11.95 498,836.31 2005 11.95 12.01 1,136,842.07 2006 12.01 12.34 1,359,793.00 2007 12.34 13.05 1,553,384.52 2008 13.05 12.88 1,547,779.69 2009 12.88 14.95 1,549,998.52 2010 14.95 15.90 1,632,065.48 2011 15.90 16.13 1,199,554.25 2012 16.13 17.32 765,903.42 Pyramis(R) Government Income Investment Division (Class B) (4/30/2012)............................. 2012 10.74 10.88 104,850.43 RCM Technology Investment Division (Class B)........ 2004 4.12 4.29 73,802.78 2005 4.29 4.68 148,140.40 2006 4.68 4.84 259,282.93 2007 4.84 6.27 762,703.26 2008 6.27 3.42 706,859.86 2009 3.42 5.35 884,140.78 2010 5.35 6.71 791,642.65 2011 6.71 5.95 656,456.55 2012 5.95 6.56 375,174.75 Russell 2000(R) Index Investment Division (Class B). 2004 13.25 15.14 141,755.55 2005 15.14 15.52 350,011.64 2006 15.52 17.94 523,741.24 2007 17.94 17.34 570,083.25 2008 17.34 11.30 559,869.69 2009 11.30 13.97 532,783.70 2010 13.97 17.38 465,598.44 2011 17.38 16.36 352,163.58 2012 16.36 18.66 190,449.09
289
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Schroders Global Multi-Asset Investment Division (Class B) (4/30/2012).............................................. 2012 $ 1.01 $ 1.06 228,265.43 SSgA Growth ETF Investment Division (Class B) (5/1/2006)............................................... 2006 10.68 11.37 26,769.64 2007 11.37 11.80 59,479.13 2008 11.80 7.78 34,105.98 2009 7.78 9.87 102,646.82 2010 9.87 11.08 180,551.76 2011 11.08 10.66 150,488.40 2012 10.66 12.06 109,867.55 SSgA Growth and Income ETF Investment Division (Class B) (5/1/2006)..................................... 2006 10.49 11.11 22,946.50 2007 11.11 11.52 30,912.00 2008 11.52 8.48 45,979.46 2009 8.48 10.42 393,719.43 2010 10.42 11.50 852,972.08 2011 11.50 11.42 802,882.00 2012 11.42 12.67 624,066.59 T. Rowe Price Large Cap Growth Investment Division (Class B)................................................ 2004 10.98 11.87 110,295.64 2005 11.87 12.41 294,698.78 2006 12.41 13.78 410,605.16 2007 13.78 14.78 636,200.16 2008 14.78 8.43 539,130.67 2009 8.43 11.85 473,303.91 2010 11.85 13.61 410,678.72 2011 13.61 13.20 302,558.67 2012 13.20 15.40 210,118.62 T. Rowe Price Mid Cap Growth Investment Division (Class B)................................................ 2004 6.21 7.03 107,430.42 2005 7.03 7.92 343,464.54 2006 7.92 8.27 506,529.21 2007 8.27 9.56 876,740.66 2008 9.56 5.66 1,025,221.21 2009 5.66 8.10 964,784.27 2010 8.10 10.17 912,701.94 2011 10.17 9.83 715,781.96 2012 9.83 10.99 481,721.39 T. Rowe Price Small Cap Growth Investment Division (Class B)................................................ 2004 12.11 12.89 69,587.07 2005 12.89 14.03 124,476.65 2006 14.03 14.29 172,403.57 2007 14.29 15.39 162,352.58 2008 15.39 9.63 169,587.64 2009 9.63 13.13 175,810.58 2010 13.13 17.39 196,651.13 2011 17.39 17.34 169,744.18 2012 17.34 19.76 110,211.97
290
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Western Asset Management Strategic Bond Opportunities Investment Division (Class B)........................ 2004 $ 18.13 $ 19.18 172,124.52 2005 19.18 19.34 576,153.07 2006 19.34 19.93 721,556.34 2007 19.93 20.32 728,579.12 2008 20.32 16.94 512,516.99 2009 16.94 21.96 449,321.31 2010 21.96 24.28 475,940.31 2011 24.28 25.27 331,231.86 2012 25.27 27.64 185,959.50 Western Asset Management U.S Government Investment Division (Class B)................................... 2004 14.98 15.31 179,014.21 2005 15.31 15.26 589,407.46 2006 15.26 15.59 712,004.15 2007 15.59 15.95 715,332.75 2008 15.95 15.59 521,318.83 2009 15.59 15.96 515,974.90 2010 15.96 16.55 464,341.87 2011 16.55 17.13 337,356.88 2012 17.13 17.35 172,118.84 At 1.95 Separate Account Charge: -------------------------------- American Funds Bond Investment Division (Class 2)/(e)/. 2006 14.10 14.75 357,999.08 2007 14.75 14.95 823,793.83 2008 14.95 13.29 516,021.08 2009 13.29 14.67 476,103.99 2010 14.67 15.32 430,749.12 2011 15.32 15.94 374,436.71 2012 15.94 16.47 285,198.79 American Funds Global Small Capitalization Investment Division (Class 2)................................... 2004 15.87 18.81 154,178.34 2005 18.81 23.12 388,885.90 2006 23.12 28.13 690,957.63 2007 28.13 33.50 932,881.79 2008 33.50 15.27 856,429.19 2009 15.27 24.15 816,662.29 2010 24.15 29.00 755,027.85 2011 29.00 22.99 555,102.58 2012 22.99 26.64 340,259.51 American Funds Growth Investment Division (Class 2).... 2004 103.43 114.11 97,615.02 2005 114.11 130.03 234,076.91 2006 130.03 140.56 338,346.73 2007 140.56 154.85 382,373.62 2008 154.85 85.07 383,696.41 2009 85.07 116.31 352,893.24 2010 116.31 135.38 316,777.93 2011 135.38 127.09 232,992.95 2012 127.09 146.92 143,824.15
291
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ American Funds Growth-Income Investment Division (Class 2)...................................... 2004 $ 80.49 $ 87.13 102,191.11 2005 87.13 90.43 253,909.56 2006 90.43 102.17 351,895.32 2007 102.17 105.24 383,293.04 2008 105.24 64.14 326,500.85 2009 64.14 82.55 305,376.46 2010 82.55 90.21 291,739.97 2011 90.21 86.85 211,540.78 2012 86.85 100.06 118,218.96
292 PREFERENCE PLUS SELECT DEFERRED ANNUITIES GROUP II 1.75 SEPARATE ACCOUNT CHARGE
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ AllianceBernstein Global Dynamic Allocation Investment Division (Class B) (4/30/2012).......................... 2012 $ 10.18 $ 10.50 1,506.50 American Funds(R) Balanced Allocation Investment Division (Class C) (4/28/2008)................................... 2008 10.00 6.99 73,933.97 2009 6.99 8.88 83,052.66 2010 8.88 9.79 77,894.11 2011 9.79 9.42 76,930.92 2012 9.42 10.51 5,279.00 American Funds Bond Investment Division+ (Class 2) (5/1/2006).............................................. 2006 14.17 14.82 366.37 2007 14.82 15.03 7,044.56 2008 15.03 13.36 1,550.22 2009 13.36 14.77 1,713.92 2010 14.77 15.42 5,326.74 2011 15.42 16.06 7,836.53 2012 16.06 16.60 11,103.36 American Funds Global Small Capitalization Investment Division+ (Class 2)..................................... 2003 10.56 15.91 26,264.88 2004 15.91 18.87 32,210.40 2005 18.87 23.21 34,001.23 2006 23.21 28.26 37,575.75 2007 28.26 33.66 36,898.97 2008 33.66 15.35 30,590.88 2009 15.35 24.29 35,349.27 2010 24.29 29.18 36,509.04 2011 29.18 23.15 26,183.42 2012 23.15 26.84 23,925.81 American Funds(R) Growth Allocation Investment Division (Class C) (4/28/2008)................................... 2008 9.99 6.34 65,717.49 2009 6.34 8.35 97,237.85 2010 8.35 9.31 101,542.91 2011 9.31 8.72 65,253.51 2012 8.72 9.95 64,206.73 American Funds Growth Investment Division+ (Class 2)...... 2003 77.78 104.42 15,014.89 2004 104.42 115.25 20,010.20 2005 115.25 131.40 21,095.03 2006 131.40 142.11 14,704.81 2007 142.11 156.63 14,216.90 2008 156.63 86.10 13,079.93 2009 86.10 117.77 12,310.15 2010 117.77 137.15 11,978.25 2011 137.15 128.82 10,288.82 2012 128.82 148.99 9,372.62
293
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ American Funds Growth-Income Investment Division+ (Class 2)................................................ 2003 $ 62.54 $ 81.26 22,882.90 2004 81.26 88.00 19,915.47 2005 88.00 91.38 18,399.97 2006 91.38 103.30 16,270.03 2007 103.30 106.46 15,894.19 2008 106.46 64.91 12,181.32 2009 64.91 83.59 11,930.37 2010 83.59 91.39 11,880.14 2011 91.39 88.03 10,850.54 2012 88.03 101.47 9,830.68 American Funds(R) Moderate Allocation Investment Division (Class C) (4/28/2008).................................... 2008 10.01 7.66 7,151.54 2009 7.66 9.29 37,245.58 2010 9.29 10.04 39,837.74 2011 10.04 9.88 44,954.67 2012 9.88 10.76 38,365.83 AQR Global Risk Balanced Investment Division (Class B) (4/30/2012).............................................. 2012 11.11 11.49 4,341.85 Baillie Gifford International Stock Investment Division (formerly Artio International Stock Investment Division) (Class B)................................................ 2004 11.29 12.87 0.00 2005 12.87 14.87 0.00 2006 14.87 16.98 0.00 2007 16.98 18.37 0.00 2008 18.37 10.06 232.69 2009 10.06 12.05 266.18 2010 12.05 12.65 790.52 2011 12.65 9.93 4,102.42 2012 9.93 11.65 3,963.75 Barclays Capital Aggregate Bond Index Investment Division (Class B)................................................ 2004 12.17 12.50 58.64 2005 12.50 12.51 855.95 2006 12.51 12.76 1,339.25 2007 12.76 13.38 861.50 2008 13.38 13.88 562.59 2009 13.88 14.32 3,473.53 2010 14.32 14.87 5,654.07 2011 14.87 15.68 4,825.32 2012 15.68 15.97 4,884.55
294
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ BlackRock Aggressive Growth Investment Division (Class B).............................................. 2004 $31.73 $35.10 22.87 2005 35.10 38.09 20.44 2006 38.09 39.85 0.00 2007 39.85 47.08 0.00 2008 47.08 25.05 0.00 2009 25.05 36.70 146.81 2010 36.70 41.47 19.24 2011 41.47 39.43 19.30 2012 39.43 42.89 18.12 BlackRock Bond Income Investment Division (Class B)...... 2004 40.27 41.62 0.00 2005 41.62 41.78 0.00 2006 41.78 42.76 0.00 2007 42.76 44.54 0.00 2008 44.54 42.16 0.00 2009 42.16 45.24 0.00 2010 45.24 48.04 598.77 2011 48.04 50.18 1,042.77 2012 50.18 52.90 1,069.87 BlackRock Diversified Investment Division (Class B)...... 2004 33.19 35.73 597.48 2005 35.73 36.10 533.89 2006 36.10 39.11 0.00 2007 39.11 40.59 0.00 2008 40.59 29.92 0.00 2009 29.92 34.40 0.00 2010 34.40 36.95 0.00 2011 36.95 37.62 0.00 2012 37.62 41.44 0.00 BlackRock Global Tactical Strategies Investment Division (Class B) (4/30/2012).................................. 2012 9.93 10.23 24,066.00 BlackRock Large Cap Core Investment Division* (Class B).............................................. 2007 71.84 72.29 0.00 2008 72.29 44.53 0.00 2009 44.53 52.15 0.00 2010 52.15 57.63 0.00 2011 57.63 56.78 0.00 2012 56.78 63.27 0.00 BlackRock Large Cap Investment Division (Class B)........ 2004 55.31 60.89 0.00 2005 60.89 61.82 0.00 2006 61.82 69.16 0.00 2007 69.16 72.45 0.00
295
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ BlackRock Large Cap Value Investment Division (Class B).. 2004 $10.61 $11.68 0.00 2005 11.68 12.12 0.00 2006 12.12 14.18 0.00 2007 14.18 14.37 0.00 2008 14.37 9.16 0.00 2009 9.16 10.00 0.00 2010 10.00 10.70 1,086.14 2011 10.70 10.73 1,781.60 2012 10.73 12.02 1,672.12 BlackRock Legacy Large Cap Growth Investment Division (Class B).............................................. 2004 22.43 24.52 594.47 2005 24.52 25.72 8.05 2006 25.72 54.54 26.26 2007 54.54 30.56 2,897.89 2008 30.56 19.01 4,436.61 2009 19.01 25.50 4,416.46 2010 25.50 29.94 3,363.97 2011 29.94 26.72 4,297.62 2012 26.72 29.95 3,477.78 BlackRock Legacy Large Cap Growth Investment Division--Class B (formerly FI Large Cap Investment Division (5/1/2006)). 2006 16.52 16.67 0.00 2007 16.67 16.99 0.00 2008 16.99 9.19 0.00 2009 9.19 9.56 0.00 BlackRock Money Market Investment Division (Class B)..... 2004 20.43 20.31 0.00 2005 20.31 20.48 0.00 2006 20.48 21.05 0.00 2007 21.05 21.68 0.00 2008 21.68 21.85 0.00 2009 21.85 21.53 0.00 2010 21.53 21.15 0.00 2011 21.15 20.79 0.00 2012 20.79 20.42 0.00 Clarion Global Real Estate Investment Division (Class B). 2004 9.99 12.80 12,631.57 2005 12.80 14.25 20,958.59 2006 14.25 19.27 32,445.59 2007 19.27 16.09 21,639.74 2008 16.09 9.22 16,664.71 2009 9.22 12.21 12,199.75 2010 12.21 13.93 10,380.04 2011 13.93 12.92 9,389.31 2012 12.92 16.00 10,302.57
296
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Davis Venture Value Investment Division (Class B)...... 2004 $ 27.63 $ 29.67 0.00 2005 29.67 32.07 30.21 2006 32.07 44.60 36.03 2007 44.60 36.94 0.00 2008 36.94 21.95 432.80 2009 21.95 28.40 490.13 2010 28.40 31.17 585.64 2011 31.17 29.33 551.92 2012 29.33 32.45 490.79 FI Value Leaders Investment Division (Class B)......... 2004 22.14 24.91 0.00 2005 24.91 27.04 0.00 2006 27.04 29.67 0.00 2007 29.67 30.30 0.00 2008 30.30 18.13 0.00 2009 18.13 21.64 0.00 2010 21.64 24.30 0.00 2011 24.30 22.36 0.00 2012 22.36 25.37 0.00 Harris Oakmark International Investment Division (Class B)............................................ 2004 11.92 13.81 0.00 2005 13.81 15.50 0.00 2006 15.50 19.63 0.00 2007 19.63 19.07 0.00 2008 19.07 11.08 0.00 2009 11.08 16.88 313.50 2010 16.88 19.31 96.20 2011 19.31 16.27 107.19 2012 16.27 20.66 105.71 Invesco Balanced-Risk Allocation Investment Division (Class B) (4/30/2012)................................ 2012 1.01 1.04 99,549.16 Invesco Small Cap Growth Investment Division (Class B). 2004 11.26 12.03 0.00 2005 12.03 12.80 0.00 2006 12.80 14.37 0.00 2007 14.37 15.68 0.00 2008 15.68 9.44 368.96 2009 9.44 12.41 0.00 2010 12.41 15.39 1.47 2011 15.39 14.96 0.00 2012 14.96 17.38 0.00 Janus Forty Investment Division (Class B) (4/30/2007).. 2007 133.55 163.45 326.64 2008 163.45 93.15 2,011.44 2009 93.15 130.77 2,273.93 2010 130.77 140.58 2,171.15 2011 140.58 127.72 1,703.39 2012 127.72 153.75 2,297.07
297
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Jennison Growth Investment Division (Class B)............ 2005 $ 3.99 $ 4.79 0.00 2006 4.79 4.82 0.00 2007 4.82 5.28 0.00 2008 5.28 3.29 0.00 2009 3.29 4.51 0.00 2010 4.51 4.94 0.00 2011 4.94 4.86 0.00 2012 4.86 5.52 3,852.78 Jennison Growth Investment Division (formerly Met/Putnam Voyager Investment Division) (Class B).............................................. 2004 4.16 4.33 0.00 2005 4.33 3.95 0.00 Jennison Growth Investment Division (formerly Oppenheimer Capital Appreciation Investment Division) (Class B) (5/1/2005)......................... 2005 7.83 8.48 0.00 2006 8.48 8.97 1,330.91 2007 8.97 10.07 13,084.61 2008 10.07 5.35 10,767.80 2009 5.35 7.55 7,283.21 2010 7.55 8.12 2,756.60 2011 8.12 7.87 2,563.09 2012 7.87 8.84 0.00 JPMorgan Global Active Allocation Investment Division (Class B) (4/30/2012).................................. 2012 1.01 1.04 108,701.06 Legg Mason ClearBridge Aggressive Growth Investment Division (Class B)..................................... 2004 6.53 7.08 0.00 2005 7.08 7.90 0.00 2006 7.90 7.63 0.00 2007 7.63 7.66 0.00 2008 7.66 4.59 0.00 2009 4.59 6.00 0.00 2010 6.00 7.29 0.00 2011 7.29 7.40 0.00 2012 7.40 8.62 0.00 Legg Mason ClearBridge Aggressive Growth Investment Division (formerly Legg Mason Value Equity Investment Division) (Class B).............................................. 2006 9.12 9.76 0.00 2007 9.76 9.02 0.00 2008 9.02 4.02 0.00 2009 4.02 5.45 0.00 2010 5.45 5.75 0.00 2011 5.75 6.11 0.00 Legg Mason Value Equity Investment Division (formerly MFS(R) Investors Trust Investment Division) (Class B).............................................. 2004 7.55 8.35 0.00 2005 8.35 8.77 0.00 2006 8.77 9.16 0.00
298
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Loomis Sayles Small Cap Core Investment Division (Class B)............................................. 2004 $22.61 $25.56 0.00 2005 25.56 26.79 0.00 2006 26.79 30.65 0.00 2007 30.65 33.61 0.00 2008 33.61 21.12 0.00 2009 21.12 26.96 0.00 2010 26.96 33.71 103.47 2011 33.71 33.23 608.75 2012 33.23 37.31 587.41 Loomis Sayles Small Cap Growth Investment Division (Class B)............................................. 2004 8.71 9.63 0.00 2005 9.63 9.87 0.00 2006 9.87 10.65 0.00 2007 10.65 10.91 0.00 2008 10.91 6.29 554.05 2009 6.29 8.02 0.00 2010 8.02 10.35 2.17 2011 10.35 10.45 0.00 2012 10.45 11.39 0.00 Lord Abbett Bond Debenture Investment Division (Class B)............................................. 2004 15.51 16.48 92.03 2005 16.48 16.44 201.19 2006 16.44 17.63 183.25 2007 17.63 18.46 0.00 2008 18.46 14.76 627.99 2009 14.76 19.85 771.80 2010 19.85 22.03 759.32 2011 22.03 22.61 708.18 2012 22.61 25.10 4,115.14 Lord Abbett Mid Cap Value Investment Division (Class B). 2012 24.15 24.77 471.72 Lord Abbett Mid Cap Value Investment Division (Class B) (formerly Neuberger Berman Mid Cap Value Investment Division (Class B))................................... 2004 18.20 21.19 0.00 2005 21.19 23.30 0.00 2006 23.30 25.46 0.00 2007 25.46 25.82 0.00 2008 25.82 13.32 0.00 2009 13.32 19.34 137.79 2010 19.34 23.96 35.07 2011 23.96 21.97 365.37 2012 21.97 24.27 0.00
299
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Met/Artisan Mid Cap Value Investment Division (Class B).... 2004 $28.98 $31.37 0.00 2005 31.37 33.82 28.78 2006 33.82 43.02 37.28 2007 43.02 34.04 0.00 2008 34.04 18.02 0.00 2009 18.02 25.00 0.00 2010 25.00 28.19 0.00 2011 28.19 29.50 0.00 2012 29.50 32.35 0.00 Met/Franklin Income Investment Division (Class B) (4/28/2008).............................................. 2008 9.99 7.96 0.00 2009 7.96 10.00 374.81 2010 10.00 10.99 312.24 2011 10.99 11.03 6,926.28 2012 11.03 12.19 12,579.99 Met/Franklin Low Duration Total Return Investment Division (Class B) (5/2/2011)..................................... 2011 9.98 9.74 0.00 2012 9.74 9.99 0.00 Met/Franklin Mutual Shares Investment Division (Class B) (4/28/2008).............................................. 2008 9.99 6.58 0.00 2009 6.58 8.08 971.40 2010 8.08 8.81 2,263.87 2011 8.81 8.61 1,721.37 2012 8.61 9.64 1,694.88 Met/Franklin Templeton Founding Strategy Investment Division (Class B) (4/28/2008)........................... 2008 9.99 7.01 0.00 2009 7.01 8.86 0.00 2010 8.86 9.58 0.00 2011 9.58 9.25 0.00 2012 9.25 10.55 0.00 Met/Templeton Growth Investment Division (Class B) (4/28/2008).............................................. 2008 9.99 6.55 457.88 2009 6.55 8.54 456.53 2010 8.54 9.03 462.29 2011 9.03 8.26 456.54 2012 8.26 9.92 456.54 MetLife Aggressive Strategy Investment Division............ 2011 11.90 10.17 0.00 2012 10.17 11.67 0.00 MetLife Aggressive Strategy Investment Division (formerly MetLife Aggressive Allocation Investment Division) (Class B)...................................... 2005 9.99 11.12 0.00 2006 11.12 12.64 0.00 2007 12.64 12.82 0.14 2008 12.82 7.50 0.00 2009 7.50 9.69 0.00 2010 9.69 11.02 0.16 2011 11.02 11.94 0.00
300
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ MetLife Balanced Plus Investment Division (Class B) (4/30/2012)............................................. 2012 $ 9.96 $10.40 1,522.78 MetLife Conservative Allocation Investment Division (Class B) (5/1/2005).................................... 2005 9.99 10.27 0.00 2006 10.27 10.79 4,443.93 2007 10.79 11.19 7,507.03 2008 11.19 9.41 14,440.75 2009 9.41 11.15 4,435.17 2010 11.15 12.06 5,075.63 2011 12.06 12.24 4,740.14 2012 12.24 13.13 4,738.05 MetLife Conservative to Moderate Allocation Investment Division (Class B) (5/1/2005)........................... 2005 9.99 10.49 0.00 2006 10.49 11.28 68,841.14 2007 11.28 11.61 11,197.95 2008 11.61 8.95 44,438.12 2009 8.95 10.87 39,230.81 2010 10.87 11.92 33,827.57 2011 11.92 11.83 31,656.67 2012 11.83 12.96 35,897.58 MetLife Mid Cap Stock Index Investment Division (Class B)............................................... 2004 11.49 12.84 0.00 2005 12.84 14.14 176.38 2006 14.14 15.26 257.83 2007 15.26 16.12 182.82 2008 16.12 10.08 209.30 2009 10.08 13.54 308.29 2010 13.54 16.77 491.80 2011 16.77 16.12 628.91 2012 16.12 18.58 641.61 MetLife Moderate Allocation Investment Division (Class B) (5/1/2005).............................................. 2005 9.99 10.72 2,546.27 2006 10.72 11.78 22,134.36 2007 11.78 12.08 127,479.50 2008 12.08 8.47 91,170.91 2009 8.47 10.53 126,156.77 2010 10.53 11.71 131,067.79 2011 11.71 11.35 138,581.05 2012 11.35 12.63 145,923.16 MetLife Moderate to Aggressive Allocation Investment Division (Class B) (5/1/2005)........................... 2005 9.99 10.94 0.00 2006 10.94 12.28 46,956.99 2007 12.28 12.53 113,725.91 2008 12.53 7.99 73,977.92 2009 7.99 10.14 76,595.92 2010 10.14 11.43 63,428.61 2011 11.43 10.80 52,642.71 2012 10.80 12.25 53,414.87
301
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ MetLife Stock Index Investment Division (Class B). 2004 $32.28 $34.90 0.00 2005 34.90 35.80 761.21 2006 35.80 40.52 886.76 2007 40.52 41.80 769.18 2008 41.80 25.77 905.98 2009 25.77 31.88 2,128.35 2010 31.88 35.87 2,753.76 2011 35.87 35.83 2,668.71 2012 35.83 40.63 2,458.77 MFS(R) Research International Investment Division (Class B)....................................... 2004 9.63 11.03 0.00 2005 11.03 12.63 78.00 2006 12.63 15.70 188.05 2007 15.70 17.48 0.00 2008 17.48 9.90 0.00 2009 9.90 12.80 0.00 2010 12.80 14.01 132.88 2011 14.01 12.29 143.50 2012 12.29 14.10 144.16 MFS(R) Total Return Investment Division (Class B). 2004 34.63 37.57 720.93 2005 37.57 37.98 2,111.55 2006 37.98 41.77 3,022.66 2007 41.77 42.73 6,662.41 2008 42.73 32.61 10,151.25 2009 32.61 37.90 9,731.12 2010 37.90 40.90 10,501.07 2011 40.90 41.06 9,867.25 2012 41.06 44.90 10,088.62 MFS(R) Value Investment Division (Class B)........ 2004 11.90 12.81 0.00 2005 12.81 12.38 0.00 2006 12.38 14.34 0.00 2007 14.34 13.52 0.00 2008 13.52 8.81 0.00 2009 8.81 10.44 0.00 2010 10.44 11.40 0.00 2011 11.40 11.28 0.00 2012 11.28 12.89 0.00 MLA Mid Cap Investment Division (formerly Lazard Mid Cap Investment Division) (Class B)....................................... 2004 12.45 13.41 0.00 2005 13.41 14.24 0.00 2006 14.24 16.05 40.31 2007 16.05 15.34 0.00 2008 15.34 9.30 0.00 2009 9.30 12.50 0.00 2010 12.50 15.09 0.00 2011 15.09 14.04 0.00 2012 14.04 14.53 0.00
302
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ MSCI EAFE(R) Index Investment Division (formerly Morgan Stanley EAFE(R) Index Investment Division) (Class B).................................... 2004 $ 9.38 $10.88 151.41 2005 10.88 12.08 784.62 2006 12.08 14.89 669.32 2007 14.89 16.17 531.12 2008 16.17 9.18 665.73 2009 9.18 11.57 1,172.79 2010 11.57 12.27 1,485.63 2011 12.27 10.53 1,654.64 2012 10.53 12.22 1,696.45 Morgan Stanley Mid Cap Growth Investment Division (Class B).............................................. 2010 12.29 14.24 0.00 2011 14.24 13.02 0.00 2012 13.02 13.99 0.00 Morgan Stanley Mid Cap Growth Investment Division (formerly FI Mid Cap Opportunities Investment Division (Class B))............................................. 2004 14.29 16.05 0.00 2005 16.05 16.82 0.00 2006 16.82 18.44 0.00 2007 18.44 19.59 0.00 2008 19.59 8.57 0.00 2009 8.57 11.25 465.88 2010 11.25 12.17 0.00 Neuberger Berman Genesis Investment Division (Class B)... 2004 15.89 17.84 0.00 2005 17.84 18.21 0.00 2006 18.21 20.84 0.00 2007 20.84 19.72 0.00 2008 19.72 11.91 0.00 2009 11.91 13.20 0.00 2010 13.20 15.74 0.00 2011 15.74 16.32 0.00 2012 16.32 17.60 0.00 Oppenheimer Global Equity Investment Division (Class B).. 2004 12.43 14.31 0.00 2005 14.31 16.31 0.00 2006 16.31 18.65 0.00 2007 18.65 19.47 0.00 2008 19.47 11.37 0.00 2009 11.37 15.62 0.00 2010 15.62 17.80 0.00 2011 17.80 16.02 0.00 2012 16.02 19.07 0.00
303
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ PIMCO Inflation Protected Bond Investment Division (Class B) (5/1/2006)..................................... 2006 $10.88 $10.96 0.00 2007 10.96 11.93 249.82 2008 11.93 10.91 12,891.35 2009 10.91 12.66 22,705.90 2010 12.66 13.41 27,018.22 2011 13.41 14.64 21,343.65 2012 14.64 15.70 33,607.84 PIMCO Total Return Investment Division (Class B)........... 2004 11.53 11.92 0.00 2005 11.92 11.98 0.00 2006 11.98 12.31 0.00 2007 12.31 13.01 0.00 2008 13.01 12.83 829.01 2009 12.83 14.88 915.08 2010 14.88 15.82 2,111.02 2011 15.82 16.04 6,503.40 2012 16.04 17.22 11,959.43 Pyramis(R) Government Income Investment Division (Class B) (4/30/2012).............................................. 2012 10.73 10.87 0.00 RCM Technology Investment Division (Class B)............... 2004 4.12 4.28 0.00 2005 4.28 4.67 12,268.89 2006 4.67 4.83 12,506.14 2007 4.83 6.24 12,278.46 2008 6.24 3.41 12,268.89 2009 3.41 5.32 12,789.87 2010 5.32 6.68 12,780.84 2011 6.68 5.92 16,042.85 2012 5.92 6.52 4,031.03 Russell 2000(R) Index Investment Division (Class B)........ 2004 13.21 15.09 0.00 2005 15.09 15.47 159.60 2006 15.47 17.87 291.07 2007 17.87 17.26 168.48 2008 17.26 11.25 507.15 2009 11.25 13.89 296.58 2010 13.89 17.28 263.85 2011 17.28 16.25 258.61 2012 16.25 18.53 254.59 Schroders Global Multi-Asset Investment Division (Class B) (4/30/2012).............................................. 2012 1.01 1.06 0.00 SSgA Growth ETF Investment Division (Class B) (5/1/2006)............................................... 2006 10.68 11.36 0.00 2007 11.36 11.79 641.07 2008 11.79 7.76 0.00 2009 7.76 9.85 0.00 2010 9.85 11.05 1.14 2011 11.05 10.63 7,294.04 2012 10.63 12.01 7,265.68
304
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ SSgA Growth and Income ETF Investment Division (Class B) (5/1/2006)............................................. 2006 $10.49 $11.11 0.00 2007 11.11 11.50 0.00 2008 11.50 8.47 0.00 2009 8.47 10.39 0.00 2010 10.39 11.46 33,962.01 2011 11.46 11.39 33,740.63 2012 11.39 12.62 16,670.59 T. Rowe Price Large Cap Growth Investment Division (Class B).............................................. 2004 10.95 11.84 0.00 2005 11.84 12.37 0.00 2006 12.37 13.72 0.00 2007 13.72 14.72 0.00 2008 14.72 8.38 0.00 2009 8.38 11.79 0.00 2010 11.79 13.52 0.00 2011 13.52 13.11 0.00 2012 13.11 15.29 0.00 T. Rowe Price Mid Cap Growth Investment Division (Class B).............................................. 2004 6.20 7.02 0.00 2005 7.02 7.90 0.00 2006 7.90 8.24 0.00 2007 8.24 9.53 0.00 2008 9.53 5.64 0.00 2009 5.64 8.06 0.00 2010 8.06 10.12 340.35 2011 10.12 9.78 2,008.40 2012 9.78 10.93 1,962.07 T. Rowe Price Small Cap Growth Investment Division (Class B).............................................. 2004 12.07 12.84 0.00 2005 12.84 13.97 0.00 2006 13.97 14.22 0.00 2007 14.22 15.31 0.00 2008 15.31 9.58 0.00 2009 9.58 13.05 0.00 2010 13.05 17.27 0.00 2011 17.27 17.22 213.99 2012 17.22 19.61 282.56 Western Asset Management Strategic Bond Opportunities Investment Division (Class B).......................... 2004 18.04 19.08 0.00 2005 19.08 19.23 366.89 2006 19.23 19.81 397.25 2007 19.81 20.19 316.42 2008 20.19 16.82 902.52 2009 16.82 21.80 973.25 2010 21.80 24.09 942.11 2011 24.09 25.05 906.07 2012 25.05 27.39 551.99
305
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Western Asset Management U.S Government Investment Division (Class B)................................... 2004 $ 14.91 $ 15.23 239.72 2005 15.23 15.18 933.66 2006 15.18 15.50 916.62 2007 15.50 15.84 398.04 2008 15.84 15.48 1,438.15 2009 15.48 15.84 2,228.64 2010 15.84 16.42 2,183.04 2011 16.42 16.98 2,158.89 2012 16.98 17.19 1,667.60 At 2.00 Separate Account Charge: -------------------------------- American Funds Bond Investment Division (Class 2)/(e)/. 2006 14.04 14.68 0.00 2007 14.68 14.87 0.00 2008 14.87 13.21 1,130.12 2009 13.21 14.58 1,257.47 2010 14.58 15.21 1,177.60 2011 15.21 15.82 1,096.61 2012 15.82 16.34 997.21 American Funds Global Small Capitalization Investment Division (Class 2)................................... 2004 15.82 18.75 0.00 2005 18.75 23.04 42.87 2006 23.04 28.01 58.25 2007 28.01 33.34 0.00 2008 33.34 15.18 0.00 2009 15.18 24.01 217.56 2010 24.01 28.81 1.01 2011 28.81 22.83 0.00 2012 22.83 26.45 0.00 American Funds Growth Investment Division (Class 2).... 2004 102.41 112.92 0.00 2005 112.92 128.61 30.26 2006 128.61 138.96 46.32 2007 138.96 153.01 0.00 2008 153.01 84.02 0.00 2009 84.02 114.82 0.00 2010 114.82 133.57 0.00 2011 133.57 125.33 0.00 2012 125.33 144.81 0.00 American Funds Growth-Income Investment Division (Class 2)............................................ 2004 79.70 86.22 0.00 2005 86.22 89.45 32.66 2006 89.45 101.01 47.81 2007 101.01 103.99 0.00 2008 103.99 63.35 156.59 2009 63.35 81.49 177.65 2010 81.49 89.01 165.64 2011 89.01 85.65 239.51 2012 85.65 98.62 252.18
306 PREFERENCE PLUS SELECT DEFERRED ANNUITIES GROUP II 1.85 SEPARATE ACCOUNT CHARGE
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ AllianceBernstein Global Dynamic Allocation Investment Division (Class B) (4/30/2012).......................... 2012 $ 10.17 $ 10.48 36,328.12 American Funds(R) Balanced Allocation Investment Division (Class C) (4/28/2008)................................... 2008 10.00 6.98 87,557.69 2009 6.98 8.87 41,711.76 2010 8.87 9.77 92,828.41 2011 9.77 9.38 107,643.05 2012 9.38 10.46 93,625.56 American Funds Bond Investment Division+ (Class 2) (5/1/2006).............................................. 2006 14.04 14.68 285.76 2007 14.68 14.87 2,966.80 2008 14.87 13.21 5,323.72 2009 13.21 14.58 5,861.01 2010 14.58 15.21 11,666.92 2011 15.21 15.82 6,677.55 2012 15.82 16.34 6,740.41 American Funds Global Small Capitalization Investment Division+ (Class 2)..................................... 2003 10.51 15.82 16,276.78 2004 15.82 18.75 35,175.14 2005 18.75 23.04 41,539.10 2006 23.04 28.01 76,385.21 2007 28.01 33.34 66,717.75 2008 33.34 15.18 60,337.00 2009 15.18 24.01 55,245.60 2010 24.01 28.81 65,640.24 2011 28.81 22.83 52,057.82 2012 22.83 26.45 49,747.37 American Funds(R) Growth Allocation Investment Division (Class C) (4/28/2008)................................... 2008 9.99 6.34 147,345.36 2009 6.34 8.34 276,752.11 2010 8.34 9.29 280,633.32 2011 9.29 8.69 227,683.77 2012 8.69 9.91 128,836.99 American Funds Growth Investment Division+ (Class 2)...... 2003 76.33 102.36 9,687.49 2004 102.36 112.86 20,523.05 2005 112.86 128.55 19,557.50 2006 128.55 138.89 18,383.62 2007 138.89 152.93 16,417.04 2008 152.93 83.98 14,835.46 2009 83.98 114.76 13,657.62 2010 114.76 133.51 17,941.24 2011 133.51 125.27 13,126.35 2012 125.27 144.74 12,739.62
307
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ American Funds Growth-Income Investment Division+ (Class 2)................................................ 2003 $ 61.37 $ 79.66 16,673.18 2004 79.66 86.18 28,078.77 2005 86.18 89.40 20,444.99 2006 89.40 100.96 18,095.73 2007 100.96 103.94 16,950.80 2008 103.94 63.31 13,873.69 2009 63.31 81.45 12,956.38 2010 81.45 88.96 18,114.74 2011 88.96 85.61 14,345.28 2012 85.61 98.57 13,169.67 American Funds(R) Moderate Allocation Investment Division (Class C) (4/28/2008).................................... 2008 10.01 7.66 52,675.94 2009 7.66 9.28 72,355.31 2010 9.28 10.01 112,893.27 2011 10.01 9.84 147,367.31 2012 9.84 10.71 213,362.17 AQR Global Risk Balanced Investment Division (Class B) (4/30/2012).............................................. 2012 11.10 11.47 39,211.34 Baillie Gifford International Stock Investment Division (formerly Artio International Stock Investment Division) (Class B)................................................ 2004 11.14 12.69 2,465.13 2005 12.69 14.65 10,628.57 2006 14.65 16.72 23,054.77 2007 16.72 18.06 44,197.05 2008 18.06 9.88 79,005.37 2009 9.88 11.83 66,649.39 2010 11.83 12.41 60,839.58 2011 12.41 9.73 59,636.67 2012 9.73 11.40 57,539.03 Barclays Capital Aggregate Bond Index Investment Division (Class B)................................................ 2004 12.10 12.42 112,089.24 2005 12.42 12.42 259,575.03 2006 12.42 12.66 298,677.10 2007 12.66 13.25 386,972.91 2008 13.25 13.74 275,501.13 2009 13.74 14.16 270,397.68 2010 14.16 14.69 274,320.10 2011 14.69 15.48 292,326.64 2012 15.48 15.74 293,949.03
308
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ BlackRock Aggressive Growth Investment Division (Class B).............................................. 2004 $31.23 $34.52 1,936.92 2005 34.52 37.42 2,919.02 2006 37.42 39.12 6,593.98 2007 39.12 46.17 15,811.45 2008 46.17 24.54 14,508.19 2009 24.54 35.91 13,307.36 2010 35.91 40.54 11,876.42 2011 40.54 38.51 13,552.42 2012 38.51 41.84 13,915.50 BlackRock Bond Income Investment Division (Class B)...... 2004 39.44 40.74 12,203.33 2005 40.74 40.86 25,429.41 2006 40.86 41.77 41,165.96 2007 41.77 43.47 54,499.65 2008 43.47 41.11 39,516.18 2009 41.11 44.06 32,834.42 2010 44.06 46.74 30,160.60 2011 46.74 48.78 26,212.18 2012 48.78 51.37 26,074.81 BlackRock Diversified Investment Division (Class B)...... 2004 32.60 35.07 10,496.05 2005 35.07 35.40 18,982.49 2006 35.40 38.32 20,874.02 2007 38.32 39.72 56,594.43 2008 39.72 29.26 56,291.54 2009 29.26 33.60 51,123.51 2010 33.60 36.06 44,881.28 2011 36.06 36.67 43,761.65 2012 36.67 40.35 41,324.80 BlackRock Global Tactical Strategies Investment Division (Class B) (4/30/2012).................................. 2012 9.92 10.21 28,540.25 BlackRock Large Cap Core Investment Division* (Class B).............................................. 2007 70.14 70.53 7,084.23 2008 70.53 43.40 19,177.91 2009 43.40 50.79 15,111.61 2010 50.79 56.07 14,612.40 2011 56.07 55.18 16,081.92 2012 55.18 61.43 13,953.73 BlackRock Large Cap Investment Division (Class B)........ 2004 54.17 59.59 1,881.76 2005 59.59 60.45 3,756.59 2006 60.45 67.55 6,856.82 2007 67.55 70.74 0.00
309
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ BlackRock Large Cap Value Investment Division (Class B).. 2004 $10.59 $11.65 7,999.04 2005 11.65 12.07 24,302.59 2006 12.07 14.12 75,219.82 2007 14.12 14.29 130,341.51 2008 14.29 9.10 107,190.43 2009 9.10 9.92 109,730.76 2010 9.92 10.61 91,050.02 2011 10.61 10.63 96,897.27 2012 10.63 11.89 82,900.31 BlackRock Legacy Large Cap Growth Investment Division (Class B).............................................. 2004 22.22 24.27 9,423.14 2005 24.27 25.44 4,568.51 2006 25.44 25.94 8,075.47 2007 25.94 30.16 38,186.68 2008 30.16 18.74 37,676.48 2009 18.74 25.12 58,160.77 2010 25.12 29.46 54,177.76 2011 29.46 26.27 56,007.83 2012 26.27 29.41 52,734.20 BlackRock Legacy Large Cap Growth Investment Division--Class B (formerly FI Large Cap Investment Division (5/1/2006)). 2006 16.36 16.50 912.12 2007 16.50 16.80 1,642.68 2008 16.80 9.07 42,086.33 2009 9.07 9.44 0.00 BlackRock Money Market Investment Division (Class B)..... 2004 20.01 19.88 20,934.55 2005 19.88 20.03 8,434.82 2006 20.03 20.56 9,432.79 2007 20.56 21.15 10,237.43 2008 21.15 21.30 35,755.34 2009 21.30 20.97 16,458.29 2010 20.97 20.58 16,147.09 2011 20.58 20.21 15,023.94 2012 20.21 19.83 19,766.44 Clarion Global Real Estate Investment Division (Class B). 2004 9.99 12.79 46,331.32 2005 12.79 14.23 123,861.73 2006 14.23 19.22 225,365.42 2007 19.22 16.03 213,683.63 2008 16.03 9.18 192,656.00 2009 9.18 12.14 165,693.92 2010 12.14 13.83 161,281.40 2011 13.83 12.82 149,165.50 2012 12.82 15.86 146,882.24
310
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Davis Venture Value Investment Division (Class B)...... 2004 $ 27.37 $ 29.37 31,161.37 2005 29.37 31.71 60,892.62 2006 31.71 35.59 102,139.81 2007 35.59 36.46 131,826.19 2008 36.46 21.64 122,233.24 2009 21.64 27.97 97,797.37 2010 27.97 30.67 89,448.02 2011 30.67 28.83 82,194.53 2012 28.83 31.87 73,473.62 FI Value Leaders Investment Division (Class B)......... 2004 21.89 24.62 3,119.82 2005 24.62 26.70 17,700.78 2006 26.70 29.26 29,405.15 2007 29.26 29.86 36,516.85 2008 29.86 17.85 19,286.63 2009 17.85 21.28 17,475.22 2010 21.28 23.88 13,723.03 2011 23.88 21.94 12,717.08 2012 21.94 24.87 14,192.99 Harris Oakmark International Investment Division (Class B)............................................ 2004 11.89 13.76 21,852.43 2005 13.76 15.44 51,829.46 2006 15.44 19.53 114,085.91 2007 19.53 18.95 145,783.34 2008 18.95 11.00 133,439.40 2009 11.00 16.74 116,903.41 2010 16.74 19.13 105,318.31 2011 19.13 16.10 102,662.39 2012 16.10 20.43 94,226.71 Invesco Balanced-Risk Allocation Investment Division (Class B) (4/30/2012)................................ 2012 1.01 1.04 65,357.54 Invesco Small Cap Growth Investment Division (Class B). 2004 11.23 12.00 1,548.23 2005 12.00 12.75 6,758.71 2006 12.75 14.29 11,749.55 2007 14.29 15.58 11,000.38 2008 15.58 9.37 13,182.43 2009 9.37 12.31 12,098.13 2010 12.31 15.25 9,542.78 2011 15.25 14.81 5,897.91 2012 14.81 17.19 10,910.86 Janus Forty Investment Division (Class B) (4/30/2007).. 2007 130.24 159.29 2,823.16 2008 159.29 90.69 15,989.43 2009 90.69 127.18 14,767.01 2010 127.18 136.59 11,694.97 2011 136.59 123.97 11,927.68 2012 123.97 149.09 12,613.41
311
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Jennison Growth Investment Division (Class B)............ 2005 $ 3.97 $ 4.76 2,883.67 2006 4.76 4.79 9,227.62 2007 4.79 5.24 25,032.72 2008 5.24 3.26 118,653.55 2009 3.26 4.47 136,366.99 2010 4.47 4.88 131,867.06 2011 4.88 4.81 145,128.63 2012 4.81 5.45 223,064.91 Jennison Growth Investment Division (formerly Met/Putnam Voyager Investment Division) (Class B).............................................. 2004 4.15 4.31 166.62 2005 4.31 3.93 166.45 Jennison Growth Investment Division (formerly Oppenheimer Capital Appreciation Investment Division) (Class B) (5/1/2005)......................... 2005 7.79 8.44 7,145.14 2006 8.44 8.91 11,798.94 2007 8.91 10.00 41,752.68 2008 10.00 5.30 72,395.10 2009 5.30 7.49 74,156.09 2010 7.49 8.04 66,802.35 2011 8.04 7.78 61,198.61 2012 7.78 8.74 0.00 JPMorgan Global Active Allocation Investment Division (Class B) (4/30/2012).................................. 2012 1.01 1.04 273,154.35 Legg Mason ClearBridge Aggressive Growth Investment Division (Class B)..................................... 2004 6.51 7.05 1,971.14 2005 7.05 7.86 7,035.25 2006 7.86 7.58 18,287.94 2007 7.58 7.61 18,448.84 2008 7.61 4.55 21,058.19 2009 4.55 5.94 19,270.69 2010 5.94 7.22 17,724.75 2011 7.22 7.32 59,353.57 2012 7.32 8.52 55,868.42 Legg Mason ClearBridge Aggressive Growth Investment Division (formerly Legg Mason Value Equity Investment Division) (Class B).............................................. 2006 9.06 9.68 23,737.63 2007 9.68 8.94 35,679.58 2008 8.94 3.98 20,365.71 2009 3.98 5.39 19,028.01 2010 5.39 5.68 20,168.70 2011 5.68 6.04 0.00 Legg Mason Value Equity Investment Division (formerly MFS(R) Investors Trust Investment Division) (Class B).............................................. 2004 7.51 8.31 881.90 2005 8.31 8.72 3,593.59 2006 8.72 9.10 12,123.92
312
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Loomis Sayles Small Cap Core Investment Division (Class B)............................................. 2004 $22.38 $25.29 2,706.09 2005 25.29 26.48 8,531.22 2006 26.48 30.26 18,511.16 2007 30.26 33.16 32,070.75 2008 33.16 20.81 32,360.95 2009 20.81 26.54 27,410.24 2010 26.54 33.15 22,587.22 2011 33.15 32.65 19,405.16 2012 32.65 36.62 15,491.86 Loomis Sayles Small Cap Growth Investment Division (Class B)............................................. 2004 8.69 9.59 2,837.37 2005 9.59 9.83 4,382.34 2006 9.83 10.59 10,108.02 2007 10.59 10.84 13,924.63 2008 10.84 6.24 40,879.03 2009 6.24 7.95 42,536.27 2010 7.95 10.25 38,830.05 2011 10.25 10.34 37,833.86 2012 10.34 11.26 36,932.42 Lord Abbett Bond Debenture Investment Division (Class B)............................................. 2004 15.38 16.34 8,309.78 2005 16.34 16.28 22,220.05 2006 16.28 17.45 46,666.36 2007 17.45 18.25 77,204.80 2008 18.25 14.58 70,769.72 2009 14.58 19.58 76,881.91 2010 19.58 21.71 61,005.86 2011 21.71 22.26 58,326.73 2012 22.26 24.68 50,135.02 Lord Abbett Mid Cap Value Investment Division (Class B). 2012 23.83 24.42 99,368.27 Lord Abbett Mid Cap Value Investment Division (Class B) (formerly Neuberger Berman Mid Cap Value Investment Division (Class B))................................... 2004 18.10 21.06 21,081.97 2005 21.06 23.14 86,924.58 2006 23.14 25.26 128,208.60 2007 25.26 25.58 160,955.45 2008 25.58 13.19 161,514.70 2009 13.19 19.13 127,623.80 2010 19.13 23.67 121,194.18 2011 23.67 21.69 114,900.12 2012 21.69 23.95 0.00
313
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Met/Artisan Mid Cap Value Investment Division (Class B).... 2004 $28.66 $31.01 10,938.90 2005 31.01 33.40 39,037.45 2006 33.40 36.78 53,222.82 2007 36.78 33.55 53,625.69 2008 33.55 17.74 38,133.17 2009 17.74 24.58 33,716.72 2010 24.58 27.70 28,757.43 2011 27.70 28.96 28,001.57 2012 28.96 31.71 27,528.89 Met/Franklin Income Investment Division (Class B) (4/28/2008).............................................. 2008 9.99 7.96 14,695.76 2009 7.96 9.99 25,571.42 2010 9.99 10.96 33,936.61 2011 10.96 10.99 51,071.83 2012 10.99 12.14 28,965.53 Met/Franklin Low Duration Total Return Investment Division (Class B) (5/2/2011)..................................... 2011 9.98 9.73 0.00 2012 9.73 9.97 205.51 Met/Franklin Mutual Shares Investment Division (Class B) (4/28/2008).............................................. 2008 9.99 6.57 2,792.31 2009 6.57 8.06 6,100.76 2010 8.06 8.79 25,257.28 2011 8.79 8.58 12,112.32 2012 8.58 9.59 6,355.73 Met/Franklin Templeton Founding Strategy Investment Division (Class B) (4/28/2008)........................... 2008 9.99 7.01 27,757.88 2009 7.01 8.84 29,159.66 2010 8.84 9.55 30,054.79 2011 9.55 9.21 39,217.91 2012 9.21 10.50 24,558.71 Met/Templeton Growth Investment Division (Class B) (4/28/2008).............................................. 2008 9.99 6.54 602.30 2009 6.54 8.52 5,169.57 2010 8.52 9.01 3,325.29 2011 9.01 8.23 3,156.99 2012 8.23 9.88 1,369.79 MetLife Aggressive Strategy Investment Division............ 2011 11.83 10.10 39,482.38 2012 10.10 11.58 72,090.65 MetLife Aggressive Strategy Investment Division (formerly MetLife Aggressive Allocation Investment Division) (Class B)...................................... 2005 9.99 11.11 225.18 2006 11.11 12.62 6,219.56 2007 12.62 12.79 28,330.13 2008 12.79 7.47 52,024.45 2009 7.47 9.65 39,251.30 2010 9.65 10.96 36,046.40 2011 10.96 11.87 0.00
314
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ MetLife Balanced Plus Investment Division (Class B) (4/30/2012)............................................. 2012 $ 9.95 $10.38 37,065.88 MetLife Conservative Allocation Investment Division (Class B) (5/1/2005).................................... 2005 9.99 10.26 3,874.57 2006 10.26 10.77 18,659.38 2007 10.77 11.16 164,718.99 2008 11.16 9.38 249,320.59 2009 9.38 11.10 295,834.39 2010 11.10 11.99 364,185.87 2011 11.99 12.15 247,274.72 2012 12.15 13.03 242,659.02 MetLife Conservative to Moderate Allocation Investment Division (Class B) (5/1/2005)........................... 2005 9.99 10.48 70,714.08 2006 10.48 11.26 187,956.39 2007 11.26 11.58 769,427.45 2008 11.58 8.91 718,875.03 2009 8.91 10.82 689,464.20 2010 10.82 11.85 679,504.66 2011 11.85 11.76 689,434.95 2012 11.76 12.86 593,410.80 MetLife Mid Cap Stock Index Investment Division (Class B)............................................... 2004 11.45 12.79 36,438.48 2005 12.79 14.06 79,289.13 2006 14.06 15.16 93,502.64 2007 15.16 16.00 132,264.26 2008 16.00 9.99 125,998.49 2009 9.99 13.42 95,821.66 2010 13.42 16.59 84,207.54 2011 16.59 15.93 92,308.98 2012 15.93 18.35 90,581.77 MetLife Moderate Allocation Investment Division (Class B) (5/1/2005).............................................. 2005 9.99 10.71 85,846.97 2006 10.71 11.76 463,035.46 2007 11.76 12.05 763,832.68 2008 12.05 8.44 916,612.54 2009 8.44 10.48 898,480.54 2010 10.48 11.64 871,178.91 2011 11.64 11.28 790,039.66 2012 11.28 12.53 727,626.16 MetLife Moderate to Aggressive Allocation Investment Division (Class B) (5/1/2005)........................... 2005 9.99 10.94 122,891.77 2006 10.94 12.26 419,480.40 2007 12.26 12.50 1,035,764.98 2008 12.50 7.96 944,219.59 2009 7.96 10.09 828,754.44 2010 10.09 11.36 747,994.99 2011 11.36 10.73 607,712.81 2012 10.73 12.16 556,135.75
315
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ MetLife Stock Index Investment Division (Class B). 2004 $31.84 $34.39 66,514.00 2005 34.39 35.24 137,284.94 2006 35.24 39.85 143,558.08 2007 39.85 41.07 171,795.93 2008 41.07 25.29 169,992.47 2009 25.29 31.26 156,864.49 2010 31.26 35.14 147,419.32 2011 35.14 35.06 171,126.61 2012 35.06 39.72 159,216.78 MFS(R) Research International Investment Division (Class B)....................................... 2004 9.60 10.99 9,588.22 2005 10.99 12.56 31,239.40 2006 12.56 15.61 55,909.20 2007 15.61 17.36 100,997.39 2008 17.36 9.82 106,004.96 2009 9.82 12.68 92,087.94 2010 12.68 13.87 72,158.50 2011 13.87 12.16 62,231.60 2012 12.16 13.93 53,131.96 MFS(R) Total Return Investment Division (Class B). 2004 34.05 36.91 2,362.83 2005 36.91 37.27 21,930.33 2006 37.27 40.96 12,278.96 2007 40.96 41.86 22,416.46 2008 41.86 31.91 26,643.32 2009 31.91 37.05 22,585.73 2010 37.05 39.94 32,559.36 2011 39.94 40.06 30,280.10 2012 40.06 43.76 22,203.89 MFS(R) Value Investment Division (Class B)........ 2004 11.83 12.73 24,712.03 2005 12.73 12.29 94,008.85 2006 12.29 14.22 131,465.63 2007 14.22 13.40 148,236.20 2008 13.40 8.72 102,395.94 2009 8.72 10.32 82,838.62 2010 10.32 11.26 79,870.58 2011 11.26 11.13 83,615.84 2012 11.13 12.71 77,151.18 MLA Mid Cap Investment Division (formerly Lazard Mid Cap Investment Division) (Class B)....................................... 2004 12.41 13.37 1,884.05 2005 13.37 14.18 8,881.48 2006 14.18 15.96 11,450.66 2007 15.96 15.24 29,761.50 2008 15.24 9.23 18,296.07 2009 9.23 12.39 19,436.74 2010 12.39 14.95 15,581.38 2011 14.95 13.90 15,243.07 2012 13.90 14.37 12,198.72
316
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ MSCI EAFE(R) Index Investment Division (formerly Morgan Stanley EAFE(R) Index Investment Division) (Class B).................................... 2004 $ 9.33 $10.81 50,755.18 2005 10.81 11.99 109,187.10 2006 11.99 14.77 108,247.58 2007 14.77 16.02 163,313.93 2008 16.02 9.09 172,688.21 2009 9.09 11.44 159,973.37 2010 11.44 12.12 152,113.21 2011 12.12 10.40 180,398.85 2012 10.40 12.05 176,968.06 Morgan Stanley Mid Cap Growth Investment Division (Class B).............................................. 2010 12.13 14.04 41,223.63 2011 14.04 12.83 34,027.59 2012 12.83 13.77 31,315.94 Morgan Stanley Mid Cap Growth Investment Division (formerly FI Mid Cap Opportunities Investment Division (Class B))............................................. 2004 14.19 15.92 8,203.79 2005 15.92 16.67 14,255.47 2006 16.67 18.26 16,262.91 2007 18.26 19.38 28,232.01 2008 19.38 8.47 38,181.84 2009 8.47 11.11 31,711.28 2010 11.11 12.01 0.00 Neuberger Berman Genesis Investment Division (Class B)... 2004 15.83 17.76 40,690.20 2005 17.76 18.12 81,971.87 2006 18.12 20.71 103,214.52 2007 20.71 19.58 100,523.59 2008 19.58 11.81 86,090.41 2009 11.81 13.08 67,620.04 2010 13.08 15.58 65,563.25 2011 15.58 16.14 64,459.75 2012 16.14 17.38 60,626.93 Oppenheimer Global Equity Investment Division (Class B).. 2004 12.34 14.20 6,130.20 2005 14.20 16.16 11,094.06 2006 16.16 18.46 20,708.84 2007 18.46 19.26 39,616.94 2008 19.26 11.24 58,993.08 2009 11.24 15.42 55,937.51 2010 15.42 17.55 56,343.88 2011 17.55 15.78 60,874.45 2012 15.78 18.77 57,462.68
317
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ PIMCO Inflation Protected Bond Investment Division (Class B) (5/1/2006)..................................... 2006 $10.84 $10.92 8,750.65 2007 10.92 11.87 42,316.60 2008 11.87 10.85 158,096.40 2009 10.85 12.58 172,066.28 2010 12.58 13.30 193,971.91 2011 13.30 14.52 190,819.19 2012 14.52 15.55 228,919.55 PIMCO Total Return Investment Division (Class B)........... 2004 11.49 11.88 44,470.27 2005 11.88 11.92 118,147.15 2006 11.92 12.23 148,988.71 2007 12.23 12.92 187,733.26 2008 12.92 12.73 138,733.24 2009 12.73 14.75 173,517.93 2010 14.75 15.66 170,359.73 2011 15.66 15.87 168,837.45 2012 15.87 17.02 179,548.12 Pyramis(R) Government Income Investment Division (Class B) (4/30/2012).............................................. 2012 10.72 10.85 9,190.40 RCM Technology Investment Division (Class B)............... 2004 4.10 4.26 41,703.19 2005 4.26 4.64 7,809.11 2006 4.64 4.80 10,707.73 2007 4.80 6.20 68,532.97 2008 6.20 3.38 130,577.36 2009 3.38 5.28 157,682.56 2010 5.28 6.62 121,850.30 2011 6.62 5.85 150,354.41 2012 5.85 6.44 141,684.60 Russell 2000(R) Index Investment Division (Class B)........ 2004 13.14 15.00 24,091.71 2005 15.00 15.36 54,386.94 2006 15.36 17.73 77,172.79 2007 17.73 17.10 97,412.29 2008 17.10 11.13 79,333.26 2009 11.13 13.74 64,534.09 2010 13.74 17.07 60,576.27 2011 17.07 16.04 63,260.44 2012 16.04 18.27 61,719.12 Schroders Global Multi-Asset Investment Division (Class B) (4/30/2012).............................................. 2012 1.01 1.06 35,337.19 SSgA Growth ETF Investment Division (Class B) (5/1/2006)............................................... 2006 10.67 11.35 78.81 2007 11.35 11.76 16,119.87 2008 11.76 7.74 3,343.40 2009 7.74 9.81 6,822.99 2010 9.81 10.99 28,040.12 2011 10.99 10.56 30,414.23 2012 10.56 11.93 40,538.00
318
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ SSgA Growth and Income ETF Investment Division (Class B) (5/1/2006)............................................. 2006 $10.48 $11.09 50.25 2007 11.09 11.48 1,993.28 2008 11.48 8.44 1,263.77 2009 8.44 10.35 26,517.02 2010 10.35 11.40 26,197.60 2011 11.40 11.31 64,333.23 2012 11.31 12.53 74,835.87 T. Rowe Price Large Cap Growth Investment Division (Class B).............................................. 2004 10.89 11.77 11,706.79 2005 11.77 12.28 31,767.70 2006 12.28 13.61 39,997.07 2007 13.61 14.58 52,982.35 2008 14.58 8.30 59,491.81 2009 8.30 11.66 46,445.84 2010 11.66 13.36 42,190.16 2011 13.36 12.94 41,424.25 2012 12.94 15.07 45,297.83 T. Rowe Price Mid Cap Growth Investment Division (Class B).............................................. 2004 6.18 6.99 5,792.84 2005 6.99 7.86 30,236.23 2006 7.86 8.20 57,433.72 2007 8.20 9.47 117,074.17 2008 9.47 5.60 133,990.47 2009 5.60 7.99 111,852.90 2010 7.99 10.02 101,209.47 2011 10.02 9.68 118,556.02 2012 9.68 10.80 117,483.43 T. Rowe Price Small Cap Growth Investment Division (Class B).............................................. 2004 11.98 12.74 4,888.49 2005 12.74 13.85 14,095.69 2006 13.85 14.09 14,021.46 2007 14.09 15.14 15,498.32 2008 15.14 9.46 19,507.95 2009 9.46 12.88 15,541.86 2010 12.88 17.03 41,116.24 2011 17.03 16.96 46,691.58 2012 16.96 19.30 34,418.58 Western Asset Management Strategic Bond Opportunities Investment Division (Class B).......................... 2004 17.87 18.89 10,385.34 2005 18.89 19.02 75,416.95 2006 19.02 19.57 102,265.24 2007 19.57 19.92 116,242.92 2008 19.92 16.58 132,925.11 2009 16.58 21.47 121,862.31 2010 21.47 23.70 117,221.59 2011 23.70 24.62 114,162.53 2012 24.62 26.90 112,787.99
319
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Western Asset Management U.S Government Investment Division (Class B)................................... 2004 $ 14.77 $ 15.08 30,454.36 2005 15.08 15.01 83,256.83 2006 15.01 15.31 97,864.20 2007 15.31 15.63 118,123.87 2008 15.63 15.27 84,695.57 2009 15.27 15.60 83,005.49 2010 15.60 16.15 74,942.08 2011 16.15 16.69 73,064.82 2012 16.69 16.88 64,171.13 At 2.10 Separate Account Charge: American Funds Bond Investment Division (Class 2)/(e)/. 2006 13.91 14.54 22,784.06 2007 14.54 14.71 108,865.66 2008 14.71 13.06 136,815.91 2009 13.06 14.40 101,454.36 2010 14.40 15.01 78,364.86 2011 15.01 15.59 60,348.22 2012 15.59 16.09 54,559.79 American Funds Global Small Capitalization Investment Division (Class 2)................................... 2004 15.73 18.62 29,197.21 2005 18.62 22.86 65,064.34 2006 22.86 27.77 111,854.84 2007 27.77 33.02 155,236.14 2008 33.02 15.02 151,446.97 2009 15.02 23.73 133,850.54 2010 23.73 28.45 120,731.04 2011 28.45 22.52 123,236.33 2012 22.52 26.06 116,237.38 American Funds Growth Investment Division (Class 2).... 2004 100.39 110.58 13,152.20 2005 110.58 125.83 29,151.88 2006 125.83 135.81 46,224.23 2007 135.81 149.39 59,508.91 2008 149.39 81.95 53,584.06 2009 81.95 111.88 43,587.75 2010 111.88 130.02 39,267.16 2011 130.02 121.88 39,507.47 2012 121.88 140.69 34,264.41 American Funds Growth-Income Investment Division (Class 2)............................................ 2004 78.13 84.44 10,297.47 2005 84.44 87.51 29,267.22 2006 87.51 98.72 48,176.05 2007 98.72 101.54 59,832.77 2008 101.54 61.79 52,677.64 2009 61.79 79.41 44,766.37 2010 79.41 86.64 42,840.88 2011 86.64 83.29 43,369.33 2012 83.29 95.81 38,636.02
320 PREFERENCE PLUS SELECT DEFERRED ANNUITIES GROUP II 1.90 SEPARATE ACCOUNT CHARGE
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ AllianceBernstein Global Dynamic Allocation Investment Division (Class B) (4/30/2012).......................... 2012 $ 10.16 $ 10.47 10,196.92 American Funds(R) Balanced Allocation Investment Division (Class C) (4/28/2008)................................... 2008 10.00 6.98 6,600.20 2009 6.98 8.86 27,970.76 2010 8.86 9.75 82,814.89 2011 9.75 9.37 17,918.22 2012 9.37 10.43 11,635.74 American Funds Bond Investment Division+ (Class 2) (5/1/2006).............................................. 2006 13.98 14.61 8,302.42 2007 14.61 14.79 45,731.95 2008 14.79 13.13 13,981.78 2009 13.13 14.49 5,972.30 2010 14.49 15.11 2,912.11 2011 15.11 15.71 0.00 2012 15.71 16.21 0.00 American Funds Global Small Capitalization Investment Division+ (Class 2)..................................... 2003 10.49 15.78 24,019.52 2004 15.78 18.68 75,500.24 2005 18.68 22.95 75,518.87 2006 22.95 27.89 65,936.39 2007 27.89 33.18 69,803.28 2008 33.18 15.10 67,083.02 2009 15.10 23.87 57,472.60 2010 23.87 28.63 34,470.86 2011 28.63 22.68 973.94 2012 22.68 26.26 841.21 American Funds(R) Growth Allocation Investment Division (Class C) (4/28/2008)................................... 2008 9.99 6.33 182,777.63 2009 6.33 8.33 255,087.71 2010 8.33 9.28 261,969.60 2011 9.28 8.67 222,613.88 2012 8.67 9.88 236,996.52 American Funds Growth Investment Division+ (Class 2)...... 2003 75.61 101.34 18,951.53 2004 101.34 111.69 41,274.48 2005 111.69 127.15 35,235.78 2006 127.15 137.31 29,683.32 2007 137.31 151.12 28,363.02 2008 151.12 82.94 26,111.18 2009 82.94 113.28 22,757.03 2010 113.28 131.72 11,496.04 2011 131.72 123.53 686.28 2012 123.53 142.67 593.96
321
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ American Funds Growth-Income Investment Division+ (Class 2)................................................ 2003 $ 60.79 $ 78.87 24,558.88 2004 78.87 85.28 46,623.82 2005 85.28 88.43 35,378.65 2006 88.43 99.81 32,205.65 2007 99.81 102.71 30,390.79 2008 102.71 62.53 26,080.28 2009 62.53 80.40 23,184.24 2010 80.40 87.77 11,267.49 2011 87.77 84.42 256.41 2012 84.42 97.16 227.26 American Funds(R) Moderate Allocation Investment Division (Class C) (4/28/2008).................................... 2008 10.01 7.65 111,165.03 2009 7.65 9.27 126,901.31 2010 9.27 9.99 142,554.69 2011 9.99 9.83 119,127.37 2012 9.83 10.69 110,369.55 AQR Global Risk Balanced Investment Division (Class B) (4/30/2012).............................................. 2012 11.09 11.46 48,698.79 Baillie Gifford International Stock Investment Division (formerly Artio International Stock Investment Division) (Class B)................................................ 2004 11.07 12.60 7,892.03 2005 12.60 14.54 22,696.08 2006 14.54 16.59 51,532.87 2007 16.59 17.91 51,160.26 2008 17.91 9.80 68,310.84 2009 9.80 11.72 56,459.69 2010 11.72 12.29 51,735.32 2011 12.29 9.63 41,408.02 2012 9.63 11.27 32,784.65 Barclays Capital Aggregate Bond Index Investment Division (Class B)................................................ 2004 12.07 12.38 187,078.15 2005 12.38 12.38 551,933.01 2006 12.38 12.61 804,630.02 2007 12.61 13.19 907,802.70 2008 13.19 13.67 608,233.65 2009 13.67 14.08 648,999.95 2010 14.08 14.61 609,002.36 2011 14.61 15.38 425,655.66 2012 15.38 15.63 238,730.78
322
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ BlackRock Aggressive Growth Investment Division (Class B).............................................. 2004 $30.98 $34.23 2,563.08 2005 34.23 37.09 4,192.86 2006 37.09 38.75 5,261.53 2007 38.75 45.71 16,192.31 2008 45.71 24.29 22,100.15 2009 24.29 35.52 17,182.90 2010 35.52 40.08 17,155.79 2011 40.08 38.05 14,094.02 2012 38.05 41.33 8,984.42 BlackRock Bond Income Investment Division (Class B)...... 2004 39.04 40.31 8,496.88 2005 40.31 40.40 23,822.60 2006 40.40 41.28 34,782.13 2007 41.28 42.94 35,871.15 2008 42.94 40.59 30,498.36 2009 40.59 43.48 31,866.39 2010 43.48 46.11 32,720.36 2011 46.11 48.09 21,184.14 2012 48.09 50.62 9,938.75 BlackRock Diversified Investment Division (Class B)...... 2004 32.31 34.75 13,155.22 2005 34.75 35.06 27,231.71 2006 35.06 37.93 29,430.26 2007 37.93 39.30 28,777.50 2008 39.30 28.93 23,742.95 2009 28.93 33.21 27,845.44 2010 33.21 35.62 27,980.81 2011 35.62 36.21 17,100.28 2012 36.21 39.82 3,476.44 BlackRock Global Tactical Strategies Investment Division (Class B) (4/30/2012).................................. 2012 9.92 10.21 1,001.18 BlackRock Large Cap Core Investment Division* (Class B).............................................. 2007 69.31 69.67 4,375.89 2008 69.67 42.85 4,554.85 2009 42.85 50.12 7,150.95 2010 50.12 55.30 6,646.17 2011 55.30 54.40 6,227.61 2012 54.40 60.53 5,490.83 BlackRock Large Cap Investment Division (Class B)........ 2004 53.61 58.96 1,909.74 2005 58.96 59.77 2,660.67 2006 59.77 66.76 3,705.30 2007 66.76 69.90 0.00
323
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ BlackRock Large Cap Value Investment Division (Class B).. 2004 $10.58 $11.63 22,322.20 2005 11.63 12.05 41,594.87 2006 12.05 14.09 116,327.23 2007 14.09 14.25 113,845.08 2008 14.25 9.07 101,252.36 2009 9.07 9.88 88,296.99 2010 9.88 10.57 82,995.35 2011 10.57 10.58 53,100.64 2012 10.58 11.83 35,516.80 BlackRock Legacy Large Cap Growth Investment Division (Class B).............................................. 2004 22.11 24.15 4,428.47 2005 24.15 25.30 10,411.55 2006 25.30 25.79 17,725.63 2007 25.79 29.96 37,008.49 2008 29.96 18.61 33,890.44 2009 18.61 24.93 32,122.93 2010 24.93 29.22 27,585.25 2011 29.22 26.04 19,213.45 2012 26.04 29.15 16,291.91 BlackRock Legacy Large Cap Growth Investment Division-- Class B (formerly FI Large Cap Investment Division (5/1/2006))............................................ 2006 16.28 16.41 1,576.80 2007 16.41 16.70 2,500.39 2008 16.70 9.02 6,693.18 2009 9.02 9.38 0.00 BlackRock Money Market Investment Division (Class B)..... 2004 19.80 19.67 1,072.38 2005 19.67 19.81 7,603.00 2006 19.81 20.32 8,198.05 2007 20.32 20.90 29,253.00 2008 20.90 21.04 75,487.96 2009 21.04 20.69 60,834.72 2010 20.69 20.30 71,786.02 2011 20.30 19.92 91,698.99 2012 19.92 19.54 40,429.33 Clarion Global Real Estate Investment Division (Class B). 2004 9.99 12.79 60,311.53 2005 12.79 14.21 159,522.75 2006 14.21 19.19 298,819.21 2007 19.19 16.00 241,237.34 2008 16.00 9.15 172,633.24 2009 9.15 12.10 165,120.49 2010 12.10 13.79 140,931.28 2011 13.79 12.77 97,804.00 2012 12.77 15.79 56,685.05
324
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Davis Venture Value Investment Division (Class B)...... 2004 $ 27.24 $ 29.22 18,162.55 2005 29.22 31.54 52,269.42 2006 31.54 35.38 78,511.61 2007 35.38 36.22 88,607.34 2008 36.22 21.49 88,036.78 2009 21.49 27.76 93,931.28 2010 27.76 30.43 76,707.44 2011 30.43 28.58 61,723.15 2012 28.58 31.58 36,269.31 FI Value Leaders Investment Division (Class B)......... 2004 21.77 24.48 5,620.49 2005 24.48 26.53 24,352.49 2006 26.53 29.06 50,585.56 2007 29.06 29.64 36,435.84 2008 29.64 17.71 26,656.72 2009 17.71 21.11 25,251.33 2010 21.11 23.67 22,020.24 2011 23.67 21.74 17,112.56 2012 21.74 24.63 15,425.47 Harris Oakmark International Investment Division (Class B)............................................ 2004 11.88 13.74 19,839.38 2005 13.74 15.40 46,534.14 2006 15.40 19.48 125,310.90 2007 19.48 18.89 131,198.43 2008 18.89 10.96 109,517.92 2009 10.96 16.67 119,933.22 2010 16.67 19.04 114,999.87 2011 19.04 16.02 93,815.40 2012 16.02 20.32 71,549.45 Invesco Balanced-Risk Allocation Investment Division (Class B) (4/30/2012)................................ 2012 1.01 1.04 169,199.75 Invesco Small Cap Growth Investment Division (Class B). 2004 11.21 11.98 3,867.30 2005 11.98 12.72 15,395.42 2006 12.72 14.26 20,736.20 2007 14.26 15.54 22,873.56 2008 15.54 9.34 16,307.95 2009 9.34 12.26 15,246.90 2010 12.26 15.18 13,861.64 2011 15.18 14.73 7,758.67 2012 14.73 17.09 6,398.56 Janus Forty Investment Division (Class B) (4/30/2007).. 2007 128.61 157.25 5,990.05 2008 157.25 89.48 17,307.68 2009 89.48 125.43 19,058.63 2010 125.43 134.63 16,513.69 2011 134.63 122.14 12,544.74 2012 122.14 146.81 8,229.45
325
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Jennison Growth Investment Division (Class B)............ 2005 $3.96 $4.75 17,649.05 2006 4.75 4.77 34,473.50 2007 4.77 5.22 82,167.38 2008 5.22 3.25 105,862.53 2009 3.25 4.45 128,963.43 2010 4.45 4.86 125,066.30 2011 4.86 4.78 104,116.98 2012 4.78 5.42 129,986.73 Jennison Growth Investment Division (formerly Met/Putnam Voyager Investment Division) (Class B).............................................. 2004 4.14 4.30 8,461.18 2005 4.30 3.92 15,706.71 Jennison Growth Investment Division (formerly Oppenheimer Capital Appreciation Investment Division) (Class B) (5/1/2005)......................... 2005 7.78 8.42 11,045.82 2006 8.42 8.89 31,118.38 2007 8.89 9.97 72,516.09 2008 9.97 5.28 75,252.58 2009 5.28 7.45 74,881.02 2010 7.45 8.00 61,032.50 2011 8.00 7.74 52,590.38 2012 7.74 8.69 0.00 JPMorgan Global Active Allocation Investment Division (Class B) (4/30/2012).................................. 2012 1.01 1.04 129,992.62 Legg Mason ClearBridge Aggressive Growth Investment Division (Class B)..................................... 2004 6.49 7.04 2,152.57 2005 7.04 7.84 11,420.66 2006 7.84 7.56 43,155.36 2007 7.56 7.59 36,319.74 2008 7.59 4.53 29,690.85 2009 4.53 5.92 26,507.40 2010 5.92 7.19 24,478.31 2011 7.19 7.28 32,838.09 2012 7.28 8.47 22,047.84 Legg Mason ClearBridge Aggressive Growth Investment Division (formerly Legg Mason Value Equity Investment Division) (Class B).............................................. 2006 9.03 9.65 33,449.10 2007 9.65 8.90 39,023.81 2008 8.90 3.96 31,015.26 2009 3.96 5.37 34,986.48 2010 5.37 5.65 32,615.78 2011 5.65 6.00 0.00 Legg Mason Value Equity Investment Division (formerly MFS(R) Investors Trust Investment Division) (Class B).............................................. 2004 7.49 8.28 6,409.53 2005 8.28 8.69 14,609.30 2006 8.69 9.06 17,892.23
326
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Loomis Sayles Small Cap Core Investment Division (Class B)............................................. 2004 $22.27 $25.15 1,928.19 2005 25.15 26.33 7,199.13 2006 26.33 30.07 49,397.54 2007 30.07 32.93 26,653.48 2008 32.93 20.66 28,044.08 2009 20.66 26.34 26,080.49 2010 26.34 32.87 19,479.52 2011 32.87 32.36 15,495.21 2012 32.36 36.28 10,413.51 Loomis Sayles Small Cap Growth Investment Division (Class B)............................................. 2004 8.67 9.57 6,866.00 2005 9.57 9.81 14,892.87 2006 9.81 10.56 23,574.14 2007 10.56 10.80 21,790.22 2008 10.80 6.22 18,210.43 2009 6.22 7.91 18,220.83 2010 7.91 10.20 18,996.58 2011 10.20 10.28 14,491.55 2012 10.28 11.19 6,689.16 Lord Abbett Bond Debenture Investment Division (Class B)............................................. 2004 15.32 16.27 30,495.71 2005 16.27 16.20 73,264.68 2006 16.20 17.35 104,800.64 2007 17.35 18.14 89,876.49 2008 18.14 14.49 81,655.65 2009 14.49 19.44 76,694.15 2010 19.44 21.55 105,716.88 2011 21.55 22.09 75,538.38 2012 22.09 24.48 59,428.51 Lord Abbett Mid Cap Value Investment Division (Class B). 2012 23.67 24.25 35,530.37 Lord Abbett Mid Cap Value Investment Division (Class B) (formerly Neuberger Berman Mid Cap Value Investment Division (Class B))................................... 2004 18.05 20.99 36,734.21 2005 20.99 23.05 91,597.80 2006 23.05 25.16 115,220.08 2007 25.16 25.47 126,896.17 2008 25.47 13.12 117,733.06 2009 13.12 19.02 107,911.47 2010 19.02 23.53 98,102.55 2011 23.53 21.54 68,129.20 2012 21.54 23.79 0.00
327
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Met/Artisan Mid Cap Value Investment Division (Class B).... 2004 $28.50 $30.83 18,953.73 2005 30.83 33.19 44,310.59 2006 33.19 36.53 34,293.35 2007 36.53 33.30 31,383.57 2008 33.30 17.60 25,701.67 2009 17.60 24.38 24,533.12 2010 24.38 27.45 21,555.96 2011 27.45 28.69 10,591.13 2012 28.69 31.40 5,893.26 Met/Franklin Income Investment Division (Class B) (4/28/2008).............................................. 2008 9.99 7.95 7,631.00 2009 7.95 9.98 12,803.01 2010 9.98 10.95 17,998.72 2011 10.95 10.97 17,328.70 2012 10.97 12.11 9,769.16 Met/Franklin Low Duration Total Return Investment Division (Class B) (5/2/2011)..................................... 2011 9.98 9.73 0.00 2012 9.73 9.96 718.70 Met/Franklin Mutual Shares Investment Division (Class B) (4/28/2008).............................................. 2008 9.99 6.57 2,867.51 2009 6.57 8.05 3,545.72 2010 8.05 8.77 6,822.77 2011 8.77 8.56 7,339.09 2012 8.56 9.57 4,259.23 Met/Franklin Templeton Founding Strategy Investment Division (Class B) (4/28/2008)........................... 2008 9.99 7.00 15,870.20 2009 7.00 8.84 16,238.36 2010 8.84 9.54 16,825.07 2011 9.54 9.20 22,126.52 2012 9.20 10.48 22,317.25 Met/Templeton Growth Investment Division (Class B) (4/28/2008).............................................. 2008 9.99 6.54 1,355.19 2009 6.54 8.51 1,867.62 2010 8.51 8.99 1,657.67 2011 8.99 8.22 2,064.61 2012 8.22 9.85 914.81 MetLife Aggressive Strategy Investment Division............ 2011 11.80 10.07 30,722.28 2012 10.07 11.53 4,375.56 MetLife Aggressive Strategy Investment Division (formerly MetLife Aggressive Allocation Investment Division) (Class B)...................................... 2005 9.99 11.11 24,202.61 2006 11.11 12.61 43,445.90 2007 12.61 12.77 73,267.32 2008 12.77 7.46 32,656.72 2009 7.46 9.63 37,661.30 2010 9.63 10.93 35,219.52 2011 10.93 11.83 0.00
328
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ MetLife Balanced Plus Investment Division (Class B) (4/30/2012)............................................. 2012 $ 9.95 $10.37 6,319.06 MetLife Conservative Allocation Investment Division (Class B) (5/1/2005).................................... 2005 9.99 10.26 10,574.32 2006 10.26 10.76 20,750.77 2007 10.76 11.15 153,582.42 2008 11.15 9.36 174,009.37 2009 9.36 11.07 201,900.23 2010 11.07 11.96 208,544.25 2011 11.96 12.11 238,437.67 2012 12.11 12.98 222,599.53 MetLife Conservative to Moderate Allocation Investment Division (Class B) (5/1/2005)........................... 2005 9.99 10.48 26,727.72 2006 10.48 11.25 186,306.38 2007 11.25 11.57 373,767.70 2008 11.57 8.90 454,564.49 2009 8.90 10.80 473,752.58 2010 10.80 11.82 452,081.81 2011 11.82 11.72 376,381.65 2012 11.72 12.81 345,071.47 MetLife Mid Cap Stock Index Investment Division (Class B)............................................... 2004 11.43 12.76 56,261.03 2005 12.76 14.02 124,981.68 2006 14.02 15.11 225,611.34 2007 15.11 15.94 195,960.85 2008 15.94 9.95 191,507.40 2009 9.95 13.35 186,745.18 2010 13.35 16.51 164,139.74 2011 16.51 15.84 113,987.33 2012 15.84 18.24 74,476.81 MetLife Moderate Allocation Investment Division (Class B) (5/1/2005).............................................. 2005 9.99 10.71 172,472.23 2006 10.71 11.75 435,700.96 2007 11.75 12.03 984,962.91 2008 12.03 8.42 1,142,923.75 2009 8.42 10.46 1,200,612.88 2010 10.46 11.61 1,154,659.46 2011 11.61 11.24 957,458.28 2012 11.24 12.49 792,478.32 MetLife Moderate to Aggressive Allocation Investment Division (Class B) (5/1/2005)........................... 2005 9.99 10.93 161,123.95 2006 10.93 12.25 552,712.91 2007 12.25 12.48 1,196,141.30 2008 12.48 7.95 1,449,190.54 2009 7.95 10.07 1,486,827.03 2010 10.07 11.33 1,457,889.75 2011 11.33 10.70 1,316,678.75 2012 10.70 12.11 1,113,869.50
329
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ MetLife Stock Index Investment Division (Class B). 2004 $31.61 $34.14 113,413.87 2005 34.14 34.97 305,157.46 2006 34.97 39.52 411,168.43 2007 39.52 40.70 460,945.12 2008 40.70 25.05 457,667.81 2009 25.05 30.95 466,043.22 2010 30.95 34.77 412,096.86 2011 34.77 34.68 308,103.12 2012 34.68 39.27 177,531.71 MFS(R) Research International Investment Division (Class B)....................................... 2004 9.59 10.97 15,145.00 2005 10.97 12.53 25,743.00 2006 12.53 15.57 104,895.91 2007 15.57 17.30 140,472.71 2008 17.30 9.78 157,821.30 2009 9.78 12.63 134,187.84 2010 12.63 13.80 94,715.71 2011 13.80 12.09 64,875.97 2012 12.09 13.85 42,370.42 MFS(R) Total Return Investment Division (Class B). 2004 33.76 36.59 3,816.14 2005 36.59 36.93 15,082.43 2006 36.93 40.56 38,985.17 2007 40.56 41.43 55,843.58 2008 41.43 31.56 47,932.74 2009 31.56 36.64 45,504.43 2010 36.64 39.47 17,454.29 2011 39.47 39.56 12,485.29 2012 39.56 43.21 7,634.49 MFS(R) Value Investment Division (Class B)........ 2004 11.80 12.69 89,526.94 2005 12.69 12.25 140,906.69 2006 12.25 14.16 147,417.10 2007 14.16 13.34 150,943.32 2008 13.34 8.67 128,254.05 2009 8.67 10.26 102,381.33 2010 10.26 11.20 99,328.28 2011 11.20 11.06 56,589.83 2012 11.06 12.62 19,778.13 MLA Mid Cap Investment Division (formerly Lazard Mid Cap Investment Division) (Class B)....................................... 2004 12.40 13.34 8,860.83 2005 13.34 14.15 13,904.65 2006 14.15 15.92 35,006.86 2007 15.92 15.20 33,045.39 2008 15.20 9.20 28,317.62 2009 9.20 12.34 20,880.98 2010 12.34 14.88 17,578.79 2011 14.88 13.83 12,222.24 2012 13.83 14.29 7,105.46
330
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ MSCI EAFE(R) Index Investment Division (formerly Morgan Stanley EAFE(R) Index Investment Division) (Class B).................................... 2004 $ 9.30 $10.78 93,488.74 2005 10.78 11.95 227,873.64 2006 11.95 14.71 313,985.53 2007 14.71 15.95 354,580.62 2008 15.95 9.04 403,025.28 2009 9.04 11.38 377,826.43 2010 11.38 12.05 332,523.19 2011 12.05 10.33 287,636.39 2012 10.33 11.96 180,283.34 Morgan Stanley Mid Cap Growth Investment Division (Class B).............................................. 2010 12.05 13.95 35,815.76 2011 13.95 12.74 28,497.50 2012 12.74 13.66 24,455.64 Morgan Stanley Mid Cap Growth Investment Division (formerly FI Mid Cap Opportunities Investment Division (Class B))............................................. 2004 14.13 15.86 6,514.49 2005 15.86 16.60 27,484.79 2006 16.60 18.17 69,751.33 2007 18.17 19.27 50,530.18 2008 19.27 8.42 33,157.54 2009 8.42 11.04 35,055.02 2010 11.04 11.93 0.00 Neuberger Berman Genesis Investment Division (Class B)... 2004 15.80 17.72 55,979.61 2005 17.72 18.07 98,736.12 2006 18.07 20.64 112,796.68 2007 20.64 19.50 117,425.03 2008 19.50 11.76 90,956.16 2009 11.76 13.01 78,427.33 2010 13.01 15.50 71,819.20 2011 15.50 16.04 37,288.47 2012 16.04 17.27 17,454.71 Oppenheimer Global Equity Investment Division (Class B).. 2004 12.30 14.14 7,687.26 2005 14.14 16.09 18,561.69 2006 16.09 18.37 46,604.61 2007 18.37 19.16 59,841.56 2008 19.16 11.17 66,571.17 2009 11.17 15.32 65,780.18 2010 15.32 17.43 60,043.00 2011 17.43 15.66 54,762.86 2012 15.66 18.62 25,314.02 PIMCO Inflation Protected Bond Investment Division (Class B) (5/1/2006)................................... 2006 10.83 10.90 12,083.89 2007 10.90 11.84 25,724.68 2008 11.84 10.82 156,654.00 2009 10.82 12.53 199,402.13 2010 12.53 13.25 173,863.50 2011 13.25 14.45 93,195.87 2012 14.45 15.47 81,499.24
331
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ PIMCO Total Return Investment Division (Class B)........... 2004 $11.47 $11.85 91,450.71 2005 11.85 11.89 211,423.65 2006 11.89 12.20 283,358.24 2007 12.20 12.87 340,174.83 2008 12.87 12.68 262,254.44 2009 12.68 14.69 278,755.04 2010 14.69 15.59 287,166.30 2011 15.59 15.78 215,060.45 2012 15.78 16.92 116,709.73 Pyramis(R) Government Income Investment Division (Class B) (4/30/2012).............................................. 2012 10.71 10.84 15,793.58 RCM Technology Investment Division (Class B)............... 2004 4.10 4.25 20,294.24 2005 4.25 4.63 22,047.22 2006 4.63 4.79 34,273.48 2007 4.79 6.18 110,778.13 2008 6.18 3.37 123,776.39 2009 3.37 5.25 152,166.36 2010 5.25 6.58 201,702.73 2011 6.58 5.82 129,849.26 2012 5.82 6.40 95,941.70 Russell 2000(R) Index Investment Division (Class B)........ 2004 13.10 14.95 29,954.58 2005 14.95 15.30 65,152.20 2006 15.30 17.65 105,614.62 2007 17.65 17.03 121,059.07 2008 17.03 11.08 115,926.73 2009 11.08 13.66 112,696.60 2010 13.66 16.97 94,942.90 2011 16.97 15.93 68,344.22 2012 15.93 18.14 44,442.72 Schroders Global Multi-Asset Investment Division (Class B) (4/30/2012).............................................. 2012 1.01 1.06 78,452.00 SSgA Growth ETF Investment Division (Class B) (5/1/2006)............................................... 2006 10.67 11.34 2.69 2007 11.34 11.75 3,536.75 2008 11.75 7.73 8,399.08 2009 7.73 9.79 14,430.38 2010 9.79 10.96 13,232.80 2011 10.96 10.53 4,090.64 2012 10.53 11.88 3,853.07 SSgA Growth and Income ETF Investment Division (Class B) (5/1/2006)............................................... 2006 10.48 11.09 71.66 2007 11.09 11.46 3,546.22 2008 11.46 8.43 5,086.56 2009 8.43 10.33 9,215.28 2010 10.33 11.37 71,259.10 2011 11.37 11.28 74,525.86 2012 11.28 12.49 68,749.30
332
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ T. Rowe Price Large Cap Growth Investment Division (Class B)........................................... 2004 $10.86 $11.73 39,975.81 2005 11.73 12.24 61,086.27 2006 12.24 13.56 74,688.89 2007 13.56 14.52 89,830.48 2008 14.52 8.26 75,873.73 2009 8.26 11.59 76,806.36 2010 11.59 13.28 65,184.74 2011 13.28 12.86 44,916.98 2012 12.86 14.97 29,339.24 T. Rowe Price Mid Cap Growth Investment Division (Class B)........................................... 2004 6.17 6.97 26,082.30 2005 6.97 7.85 47,602.89 2006 7.85 8.17 105,812.07 2007 8.17 9.43 358,391.38 2008 9.43 5.57 339,296.29 2009 5.57 7.96 296,892.75 2010 7.96 9.97 200,238.24 2011 9.97 9.62 154,367.10 2012 9.62 10.73 103,034.02 T. Rowe Price Small Cap Growth Investment Division (Class B)........................................... 2004 11.94 12.69 10,681.68 2005 12.69 13.78 23,051.77 2006 13.78 14.02 28,507.52 2007 14.02 15.06 88,427.03 2008 15.06 9.41 97,497.74 2009 9.41 12.80 82,593.13 2010 12.80 16.91 41,560.02 2011 16.91 16.84 27,898.70 2012 16.84 19.15 23,378.94 Western Asset Management Strategic Bond Opportunities Investment Division (Class B)....................... 2004 17.79 18.79 14,023.91 2005 18.79 18.91 62,081.03 2006 18.91 19.45 96,822.65 2007 19.45 19.79 93,146.89 2008 19.79 16.46 65,540.93 2009 16.46 21.31 63,239.55 2010 21.31 23.51 66,545.80 2011 23.51 24.41 45,823.13 2012 24.41 26.66 24,468.72 Western Asset Management U.S Government Investment Division (Class B).................................. 2004 14.70 15.00 56,301.68 2005 15.00 14.92 105,648.46 2006 14.92 15.22 127,007.24 2007 15.22 15.53 114,044.86 2008 15.53 15.16 80,758.16 2009 15.16 15.48 95,813.80 2010 15.48 16.02 115,043.54 2011 16.02 16.55 62,418.05 2012 16.55 16.73 29,395.25
333
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ At 2.15 Separate Account Charge: American Funds Bond Investment Division (Class 2)/(e)/. 2006 $ 13.85 $ 14.47 29,754.86 2007 14.47 14.63 65,533.52 2008 14.63 12.98 61,633.18 2009 12.98 14.30 64,796.29 2010 14.30 14.90 78,339.43 2011 14.90 15.48 45,705.08 2012 15.48 15.96 37,536.59 American Funds Global Small Capitalization Investment Division (Class 2)................................... 2004 15.69 18.56 22,855.68 2005 18.56 22.77 65,511.64 2006 22.77 27.65 148,347.38 2007 27.65 32.86 210,517.72 2008 32.86 14.94 219,837.50 2009 14.94 23.59 205,394.06 2010 23.59 28.27 179,942.97 2011 28.27 22.37 135,671.51 2012 22.37 25.87 94,806.63 American Funds Growth Investment Division (Class 2).... 2004 99.40 109.43 14,058.69 2005 109.43 124.46 31,533.74 2006 124.46 134.26 54,896.22 2007 134.26 147.62 72,479.89 2008 147.62 80.94 74,474.41 2009 80.94 110.44 72,056.94 2010 110.44 128.29 61,480.91 2011 128.29 120.19 44,590.62 2012 120.19 138.67 30,307.69 American Funds Growth-Income Investment Division (Class 2)............................................ 2004 77.35 83.56 19,344.03 2005 83.56 86.56 42,140.74 2006 86.56 97.60 63,265.18 2007 97.60 100.33 67,965.08 2008 100.33 61.02 60,995.53 2009 61.02 78.38 61,099.94 2010 78.38 85.48 54,880.32 2011 85.48 82.14 38,087.95 2012 82.14 94.44 23,363.24
334 PREFERENCE PLUS SELECT DEFERRED ANNUITIES GROUP II 1.95 SEPARATE ACCOUNT CHARGE
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ AllianceBernstein Global Dynamic Allocation Investment Division (Class B) (4/30/2012).......................... 2012 $ 10.16 $ 10.47 0.00 American Funds(R) Balanced Allocation Investment Division (Class C) (4/28/2008)................................... 2008 10.00 6.98 4,429.96 2009 6.98 8.85 21,392.53 2010 8.85 9.74 4,022.44 2011 9.74 9.35 0.00 2012 9.35 10.41 0.00 American Funds Bond Investment Division+ (Class 2) (5/1/2006).............................................. 2006 13.91 14.54 609.09 2007 14.54 14.71 8,556.70 2008 14.71 13.06 5,627.05 2009 13.06 14.40 5,174.78 2010 14.40 15.01 68.28 2011 15.01 15.59 0.00 2012 15.59 16.09 0.00 American Funds Global Small Capitalization Investment Division+ (Class 2)..................................... 2003 10.46 15.73 19,818.67 2004 15.73 18.62 27,055.05 2005 18.62 22.86 27,764.62 2006 22.86 27.77 33,806.46 2007 27.77 33.02 31,194.78 2008 33.02 15.02 25,007.49 2009 15.02 23.73 13,830.25 2010 23.73 28.45 2,822.83 2011 28.45 22.52 0.00 2012 22.52 26.06 0.00 American Funds(R) Growth Allocation Investment Division (Class C) (4/28/2008)................................... 2008 9.99 6.33 6,318.23 2009 6.33 8.32 4,927.47 2010 8.32 9.26 6,828.59 2011 9.26 8.66 0.00 2012 8.66 9.86 0.00 American Funds Growth Investment Division+ (Class 2)...... 2003 74.90 100.34 9,349.78 2004 100.34 110.53 14,562.37 2005 110.53 125.77 15,316.45 2006 125.77 135.74 16,484.29 2007 135.74 149.32 14,638.88 2008 149.32 81.91 11,738.22 2009 81.91 111.83 8,661.00 2010 111.83 129.96 2,879.17 2011 129.96 121.82 0.00 2012 121.82 140.62 0.00
335
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ American Funds Growth-Income Investment Division+ (Class 2)................................................ 2003 $ 60.22 $ 78.09 20,009.43 2004 78.09 84.39 24,296.87 2005 84.39 87.47 24,577.59 2006 87.47 98.68 23,058.63 2007 98.68 101.49 17,968.87 2008 101.49 61.76 14,155.02 2009 61.76 79.37 8,549.43 2010 79.37 86.60 1,125.13 2011 86.60 83.25 0.00 2012 83.25 95.76 0.00 American Funds(R) Moderate Allocation Investment Division (Class C) (4/28/2008).................................... 2008 10.01 7.65 0.00 2009 7.65 9.26 2,841.49 2010 9.26 9.98 2,817.04 2011 9.98 9.81 2,785.75 2012 9.81 10.66 2,755.20 AQR Global Risk Balanced Investment Division (Class B) (4/30/2012).............................................. 2012 11.09 11.45 0.00 Baillie Gifford International Stock Investment Division (formerly Artio International Stock Investment Division) (Class B)................................................ 2004 11.00 12.52 47.63 2005 12.52 14.44 2,963.92 2006 14.44 16.46 4,110.21 2007 16.46 17.76 3,157.70 2008 17.76 9.71 3,597.07 2009 9.71 11.61 3,066.43 2010 11.61 12.17 3,108.75 2011 12.17 9.53 2,877.52 2012 9.53 11.15 359.21 Barclays Capital Aggregate Bond Index Investment Division (Class B)................................................ 2004 12.03 12.35 31,888.21 2005 12.35 12.33 58,362.22 2006 12.33 12.56 52,710.37 2007 12.56 13.13 40,676.85 2008 13.13 13.60 29,784.71 2009 13.60 14.01 21,915.36 2010 14.01 14.52 34,159.38 2011 14.52 15.27 20,842.41 2012 15.27 15.52 11,973.90
336
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ BlackRock Aggressive Growth Investment Division (Class B).............................................. 2004 $30.73 $33.95 0.00 2005 33.95 36.77 0.00 2006 36.77 38.39 1,194.30 2007 38.39 45.27 600.98 2008 45.27 24.04 502.35 2009 24.04 35.14 2,343.36 2010 35.14 39.63 786.82 2011 39.63 37.61 943.93 2012 37.61 40.82 937.25 BlackRock Bond Income Investment Division (Class B)...... 2004 38.63 39.88 528.75 2005 39.88 39.95 2,908.64 2006 39.95 40.81 2,700.98 2007 40.81 42.42 2,773.60 2008 42.42 40.08 2,000.10 2009 40.08 42.91 2,214.04 2010 42.91 45.48 2,231.78 2011 45.48 47.42 3,282.15 2012 47.42 49.88 2,042.85 BlackRock Diversified Investment Division (Class B)...... 2004 32.03 34.43 1,286.48 2005 34.43 34.72 1,417.92 2006 34.72 37.54 1,304.25 2007 37.54 38.88 1,555.27 2008 38.88 28.61 42.92 2009 28.61 32.82 45.44 2010 32.82 35.19 49.10 2011 35.19 35.75 45.43 2012 35.75 39.30 0.00 BlackRock Global Tactical Strategies Investment Division (Class B) (4/30/2012).................................. 2012 9.91 10.20 0.00 BlackRock Large Cap Core Investment Division* (Class B).............................................. 2007 68.49 68.82 603.94 2008 68.82 42.31 89.12 2009 42.31 49.46 88.20 2010 49.46 54.54 87.94 2011 54.54 53.63 359.92 2012 53.63 59.64 272.93 BlackRock Large Cap Investment Division (Class B)........ 2004 53.05 58.32 0.00 2005 58.32 59.10 64.81 2006 59.10 65.98 534.50 2007 65.98 69.07 0.00
337
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ BlackRock Large Cap Value Investment Division (Class B).. 2004 $10.57 $11.62 0.00 2005 11.62 12.03 3,132.73 2006 12.03 14.05 4,271.56 2007 14.05 14.21 6,612.88 2008 14.21 9.04 11,462.13 2009 9.04 9.85 6,791.97 2010 9.85 10.52 6,785.14 2011 10.52 10.53 5,420.96 2012 10.53 11.77 2,280.14 BlackRock Legacy Large Cap Growth Investment Division (Class B).............................................. 2004 22.01 24.03 1,115.87 2005 24.03 25.16 1,111.80 2006 25.16 25.63 1,227.84 2007 25.63 29.77 1,040.52 2008 29.77 18.48 5,591.12 2009 18.48 24.74 1,465.53 2010 24.74 28.98 2,087.78 2011 28.98 25.82 1,211.60 2012 25.82 28.88 866.78 BlackRock Legacy Large Cap Growth Investment Division--Class B (formerly FI Large Cap Investment Division (5/1/2006)). 2006 16.20 16.33 0.00 2007 16.33 16.61 0.00 2008 16.61 8.96 2,435.38 2009 8.96 9.32 0.00 BlackRock Money Market Investment Division (Class B)..... 2004 19.60 19.46 0.00 2005 19.46 19.59 0.00 2006 19.59 20.09 0.00 2007 20.09 20.64 0.00 2008 20.64 20.77 0.00 2009 20.77 20.42 0.00 2010 20.42 20.03 0.00 2011 20.03 19.64 0.00 2012 19.64 19.26 0.00 Clarion Global Real Estate Investment Division (Class B). 2004 9.99 12.78 7,319.82 2005 12.78 14.20 19,686.55 2006 14.20 19.16 42,276.42 2007 19.16 15.97 35,776.12 2008 15.97 9.13 23,251.06 2009 9.13 12.07 23,593.95 2010 12.07 13.74 10,412.69 2011 13.74 12.72 6,829.78 2012 12.72 15.72 1,981.57
338
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Davis Venture Value Investment Division (Class B)...... 2004 $ 27.11 $ 29.07 345.72 2005 29.07 31.36 4,729.71 2006 31.36 35.16 5,991.31 2007 35.16 35.98 6,083.12 2008 35.98 21.34 7,539.75 2009 21.34 27.55 5,267.11 2010 27.55 30.18 8,101.24 2011 30.18 28.34 5,112.61 2012 28.34 31.29 2,583.09 FI Value Leaders Investment Division (Class B)......... 2004 21.65 24.34 233.65 2005 24.34 26.36 4,359.90 2006 26.36 28.87 3,387.51 2007 28.87 29.42 2,211.88 2008 29.42 17.57 2,028.32 2009 17.57 20.93 1,043.64 2010 20.93 23.46 960.75 2011 23.46 21.54 960.23 2012 21.54 24.39 417.02 Harris Oakmark International Investment Division (Class B)............................................ 2004 11.86 13.72 949.47 2005 13.72 15.37 4,360.22 2006 15.37 19.42 5,990.28 2007 19.42 18.83 8,376.67 2008 18.83 10.92 7,073.66 2009 10.92 16.60 8,667.90 2010 16.60 18.96 6,963.23 2011 18.96 15.94 7,022.42 2012 15.94 20.20 3,754.33 Invesco Balanced-Risk Allocation Investment Division (Class B) (4/30/2012)................................ 2012 1.01 1.04 0.00 Invesco Small Cap Growth Investment Division (Class B). 2004 11.20 11.96 1,999.50 2005 11.96 12.70 4,087.05 2006 12.70 14.22 4,077.01 2007 14.22 15.49 4,352.05 2008 15.49 9.30 3,606.96 2009 9.30 12.21 4,222.28 2010 12.21 15.11 4,088.60 2011 15.11 14.66 2,944.17 2012 14.66 17.00 2,934.59 Janus Forty Investment Division (Class B) (4/30/2007).. 2007 127.01 155.23 236.72 2008 155.23 88.29 1,814.95 2009 88.29 123.70 1,025.61 2010 123.70 132.71 561.85 2011 132.71 120.33 512.24 2012 120.33 144.56 449.33
339
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Jennison Growth Investment Division (Class B)............ 2005 $3.95 $4.73 3,161.78 2006 4.73 4.76 3,155.78 2007 4.76 5.20 2,392.99 2008 5.20 3.23 2,375.26 2009 3.23 4.43 2,358.23 2010 4.43 4.83 2,350.37 2011 4.83 4.75 0.00 2012 4.75 5.38 4,980.40 Jennison Growth Investment Division (formerly Met/Putnam Voyager Investment Division) (Class B).............................................. 2004 4.13 4.29 931.60 2005 4.29 3.91 930.56 Jennison Growth Investment Division (formerly Oppenheimer Capital Appreciation Investment Division) (Class B) (5/1/2005)......................... 2005 7.76 8.40 1,552.74 2006 8.40 8.86 5,249.29 2007 8.86 9.93 5,294.21 2008 9.93 5.26 5,611.30 2009 5.26 7.42 7,634.67 2010 7.42 7.96 6,549.82 2011 7.96 7.70 5,518.67 2012 7.70 8.65 0.00 JPMorgan Global Active Allocation Investment Division (Class B) (4/30/2012).................................. 2012 1.01 1.04 0.00 Legg Mason ClearBridge Aggressive Growth Investment Division (Class B)..................................... 2004 6.48 7.02 363.43 2005 7.02 7.82 2,208.93 2006 7.82 7.54 4,667.37 2007 7.54 7.56 3,706.47 2008 7.56 4.52 4,179.79 2009 4.52 5.89 4,032.99 2010 5.89 7.15 3,833.31 2011 7.15 7.24 7,100.97 2012 7.24 8.42 4,482.43 Legg Mason ClearBridge Aggressive Growth Investment Division (formerly Legg Mason Value Equity Investment Division) (Class B).............................................. 2006 9.00 9.61 1,368.60 2007 9.61 8.87 1,363.74 2008 8.87 3.94 1,353.32 2009 3.94 5.34 4,783.40 2010 5.34 5.62 4,766.42 2011 5.62 5.96 0.00 Legg Mason Value Equity Investment Division (formerly MFS(R) Investors Trust Investment Division) (Class B).............................................. 2004 7.48 8.26 0.00 2005 8.26 8.66 511.00 2006 8.66 9.03 1,368.70
340
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Loomis Sayles Small Cap Core Investment Division (Class B)............................................. 2004 $22.16 $25.02 957.25 2005 25.02 26.17 1,914.50 2006 26.17 29.88 2,596.92 2007 29.88 32.71 3,184.36 2008 32.71 20.51 3,544.72 2009 20.51 26.13 2,836.89 2010 26.13 32.60 2,506.91 2011 32.60 32.08 1,560.38 2012 32.08 35.95 800.40 Loomis Sayles Small Cap Growth Investment Division (Class B)............................................. 2004 8.66 9.56 0.00 2005 9.56 9.78 252.79 2006 9.78 10.53 1,890.28 2007 10.53 10.77 2,360.96 2008 10.77 6.20 2,353.50 2009 6.20 7.88 6,086.24 2010 7.88 10.15 2,347.44 2011 10.15 10.23 1,890.28 2012 10.23 11.12 0.00 Lord Abbett Bond Debenture Investment Division (Class B)............................................. 2004 15.26 16.20 993.97 2005 16.20 16.13 2,941.48 2006 16.13 17.26 6,019.69 2007 17.26 18.04 11,446.78 2008 18.04 14.40 9,528.47 2009 14.40 19.31 8,916.10 2010 19.31 21.39 9,152.78 2011 21.39 21.92 8,553.00 2012 21.92 24.27 8,070.23 Lord Abbett Mid Cap Value Investment Division (Class B). 2012 23.51 24.08 7,270.50 Lord Abbett Mid Cap Value Investment Division (Class B) (formerly Neuberger Berman Mid Cap Value Investment Division (Class B))................................... 2004 18.00 20.93 2,574.08 2005 20.93 22.97 7,229.51 2006 22.97 25.05 9,441.32 2007 25.05 25.35 13,857.09 2008 25.35 13.05 12,288.68 2009 13.05 18.92 13,730.02 2010 18.92 23.38 11,196.19 2011 23.38 21.40 11,493.65 2012 21.40 23.63 0.00
341
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Met/Artisan Mid Cap Value Investment Division (Class B).... 2004 $28.35 $30.65 953.24 2005 30.65 32.98 4,369.76 2006 32.98 36.28 2,625.73 2007 36.28 33.06 2,781.48 2008 33.06 17.46 2,983.91 2009 17.46 24.18 2,232.38 2010 24.18 27.21 1,961.54 2011 27.21 28.42 1,533.54 2012 28.42 31.10 436.33 Met/Franklin Income Investment Division (Class B) (4/28/2008).............................................. 2008 9.99 7.95 5,044.98 2009 7.95 9.97 3,262.51 2010 9.97 10.93 5.08 2011 10.93 10.95 0.00 2012 10.95 12.08 0.00 Met/Franklin Low Duration Total Return Investment Division (Class B) (5/2/2011)..................................... 2011 9.98 9.73 9,298.29 2012 9.73 9.96 9,195.08 Met/Franklin Mutual Shares Investment Division (Class B) (4/28/2008).............................................. 2008 9.99 6.57 5,743.52 2009 6.57 8.05 0.00 2010 8.05 8.76 4.93 2011 8.76 8.55 0.00 2012 8.55 9.55 0.00 Met/Franklin Templeton Founding Strategy Investment Division (Class B) (4/28/2008)........................... 2008 9.99 7.00 30,135.30 2009 7.00 8.83 23,527.52 2010 8.83 9.53 23,401.32 2011 9.53 9.18 0.00 2012 9.18 10.45 0.00 Met/Templeton Growth Investment Division (Class B) (4/28/2008).............................................. 2008 9.99 6.54 0.00 2009 6.54 8.51 0.00 2010 8.51 8.98 3.43 2011 8.98 8.20 0.00 2012 8.20 9.83 0.00 MetLife Aggressive Strategy Investment Division............ 2011 11.76 10.03 0.00 2012 10.03 11.49 0.00 MetLife Aggressive Strategy Investment Division (formerly MetLife Aggressive Allocation Investment Division) (Class B)...................................... 2005 9.99 11.10 0.00 2006 11.10 12.60 0.00 2007 12.60 12.76 4,030.40 2008 12.76 7.45 9,154.41 2009 7.45 9.60 3,962.71 2010 9.60 10.90 3,935.14 2011 10.90 11.80 0.00
342
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ MetLife Balanced Plus Investment Division (Class B) (4/30/2012)............................................. 2012 $ 9.94 $10.36 0.00 MetLife Conservative Allocation Investment Division (Class B) (5/1/2005).................................... 2005 9.99 10.26 0.00 2006 10.26 10.75 2,074.04 2007 10.75 11.13 28,990.88 2008 11.13 9.34 12,902.22 2009 9.34 11.05 14,688.07 2010 11.05 11.92 12,086.59 2011 11.92 12.07 11,995.41 2012 12.07 12.93 6,184.08 MetLife Conservative to Moderate Allocation Investment Division (Class B) (5/1/2005)........................... 2005 9.99 10.47 7,354.91 2006 10.47 11.24 14,148.53 2007 11.24 11.55 63,148.46 2008 11.55 8.88 57,396.15 2009 8.88 10.77 45,917.24 2010 10.77 11.78 41,078.37 2011 11.78 11.68 40,818.73 2012 11.68 12.76 39,824.79 MetLife Mid Cap Stock Index Investment Division (Class B)............................................... 2004 11.41 12.73 3,071.40 2005 12.73 13.98 4,379.18 2006 13.98 15.06 7,809.23 2007 15.06 15.88 6,602.43 2008 15.88 9.91 9,320.16 2009 9.91 13.29 22,517.17 2010 13.29 16.42 15,821.37 2011 16.42 15.75 9,110.36 2012 15.75 18.12 1,865.81 MetLife Moderate Allocation Investment Division (Class B) (5/1/2005).............................................. 2005 9.99 10.70 46,491.36 2006 10.70 11.74 69,819.26 2007 11.74 12.01 97,717.86 2008 12.01 8.41 121,265.95 2009 8.41 10.43 63,410.49 2010 10.43 11.58 55,578.32 2011 11.58 11.20 47,889.21 2012 11.20 12.44 44,871.47 MetLife Moderate to Aggressive Allocation Investment Division (Class B) (5/1/2005)........................... 2005 9.99 10.93 11,458.42 2006 10.93 12.24 63,979.50 2007 12.24 12.47 91,710.88 2008 12.47 7.93 135,900.90 2009 7.93 10.04 100,187.57 2010 10.04 11.30 91,521.14 2011 11.30 10.66 90,387.04 2012 10.66 12.06 70,425.54
343
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ MetLife Stock Index Investment Division (Class B). 2004 $31.39 $33.89 13,176.55 2005 33.89 34.69 20,802.11 2006 34.69 39.19 20,974.70 2007 39.19 40.35 16,593.18 2008 40.35 24.82 17,180.84 2009 24.82 30.65 23,911.63 2010 30.65 34.42 23,499.57 2011 34.42 34.31 13,420.07 2012 34.31 38.83 3,719.20 MFS(R) Research International Investment Division (Class B)....................................... 2004 9.57 10.95 476.58 2005 10.95 12.50 1,637.50 2006 12.50 15.52 6,763.82 2007 15.52 17.24 7,505.32 2008 17.24 9.74 7,214.85 2009 9.74 12.57 7,908.64 2010 12.57 13.74 8,798.21 2011 13.74 12.03 7,793.39 2012 12.03 13.76 4,054.04 MFS(R) Total Return Investment Division (Class B). 2004 33.48 36.27 646.66 2005 36.27 36.58 1,203.01 2006 36.58 40.16 1,029.13 2007 40.16 41.00 5,429.37 2008 41.00 31.22 1,821.85 2009 31.22 36.22 1,381.73 2010 36.22 39.01 1,233.88 2011 39.01 39.08 711.40 2012 39.08 42.65 176.35 MFS(R) Value Investment Division (Class B)........ 2004 11.77 12.65 1,123.06 2005 12.65 12.21 4,829.93 2006 12.21 14.11 1,157.60 2007 14.11 13.28 1,196.70 2008 13.28 8.63 5,035.86 2009 8.63 10.21 1,084.11 2010 10.21 11.13 1,085.98 2011 11.13 10.98 874.08 2012 10.98 12.53 272.38 MLA Mid Cap Investment Division (formerly Lazard Mid Cap Investment Division) (Class B)....................................... 2004 12.38 13.32 744.36 2005 13.32 14.12 379.82 2006 14.12 15.88 464.48 2007 15.88 15.15 865.71 2008 15.15 9.16 860.08 2009 9.16 12.29 697.85 2010 12.29 14.81 696.53 2011 14.81 13.76 0.00 2012 13.76 14.21 0.00
344
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ MSCI EAFE(R) Index Investment Division (formerly Morgan Stanley EAFE(R) Index Investment Division) (Class B).................................... 2004 $ 9.27 $10.75 9,314.05 2005 10.75 11.90 13,763.63 2006 11.90 14.65 13,998.00 2007 14.65 15.87 10,212.27 2008 15.87 8.99 14,373.62 2009 8.99 11.32 37,732.20 2010 11.32 11.98 33,466.81 2011 11.98 10.26 20,201.54 2012 10.26 11.88 2,413.63 Morgan Stanley Mid Cap Growth Investment Division (Class B).............................................. 2010 11.97 13.85 4,386.77 2011 13.85 12.64 3,557.79 2012 12.64 13.55 1,286.75 Morgan Stanley Mid Cap Growth Investment Division (formerly FI Mid Cap Opportunities Investment Division (Class B))............................................. 2004 14.08 15.80 1,081.56 2005 15.80 16.52 2,267.62 2006 16.52 18.08 3,620.59 2007 18.08 19.17 4,459.56 2008 19.17 8.37 4,482.61 2009 8.37 10.97 6,370.06 2010 10.97 11.85 0.00 Neuberger Berman Genesis Investment Division (Class B)... 2004 15.77 17.68 3,999.70 2005 17.68 18.02 6,163.03 2006 18.02 20.57 7,949.48 2007 20.57 19.43 7,339.58 2008 19.43 11.71 3,270.29 2009 11.71 12.95 3,356.03 2010 12.95 15.42 4,925.75 2011 15.42 15.95 2,506.66 2012 15.95 17.17 893.91 Oppenheimer Global Equity Investment Division (Class B).. 2004 12.25 14.09 2,591.07 2005 14.09 16.02 4,150.28 2006 16.02 18.28 8,339.32 2007 18.28 19.05 12,075.92 2008 19.05 11.10 11,275.36 2009 11.10 15.22 9,917.50 2010 15.22 17.31 9,756.56 2011 17.31 15.55 7,789.52 2012 15.55 18.48 7,765.69
345
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ PIMCO Inflation Protected Bond Investment Division (Class B) (5/1/2006)..................................... 2006 $10.81 $10.88 0.00 2007 10.88 11.82 3,051.90 2008 11.82 10.79 25,371.95 2009 10.79 12.49 18,875.01 2010 12.49 13.20 21,254.44 2011 13.20 14.39 11,386.99 2012 14.39 15.40 11,123.20 PIMCO Total Return Investment Division (Class B)........... 2004 11.46 11.83 4,757.70 2005 11.83 11.86 14,606.50 2006 11.86 12.16 13,969.05 2007 12.16 12.83 10,920.01 2008 12.83 12.63 9,043.02 2009 12.63 14.62 6,701.30 2010 14.62 15.51 10,881.60 2011 15.51 15.69 8,808.87 2012 15.69 16.82 7,450.88 Pyramis(R) Government Income Investment Division (Class B) (4/30/2012).............................................. 2012 10.71 10.83 0.00 RCM Technology Investment Division (Class B)............... 2004 4.09 4.24 213.88 2005 4.24 4.62 212.24 2006 4.62 4.77 3,322.25 2007 4.77 6.16 2,641.39 2008 6.16 3.35 11,033.06 2009 3.35 5.23 33,748.95 2010 5.23 6.55 13,473.02 2011 6.55 5.79 7,833.97 2012 5.79 6.36 4,231.70 Russell 2000(R) Index Investment Division (Class B)........ 2004 13.07 14.91 2,868.80 2005 14.91 15.25 3,573.72 2006 15.25 17.58 8,011.43 2007 17.58 16.95 6,460.23 2008 16.95 11.02 3,706.08 2009 11.02 13.58 10,719.48 2010 13.58 16.86 9,522.18 2011 16.86 15.83 4,593.59 2012 15.83 18.01 448.23 Schroders Global Multi-Asset Investment Division (Class B) (4/30/2012).............................................. 2012 1.01 1.06 0.00 SSgA Growth ETF Investment Division (Class B) (5/1/2006)............................................... 2006 10.67 11.33 670.77 2007 11.33 11.74 0.00 2008 11.74 7.71 0.00 2009 7.71 9.77 0.00 2010 9.77 10.94 0.00 2011 10.94 10.50 0.00 2012 10.50 11.84 0.00
346
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ SSgA Growth and Income ETF Investment Division (Class B) (5/1/2006)............................................. 2006 $10.47 $11.08 2,714.30 2007 11.08 11.45 1,284.07 2008 11.45 8.41 1,764.89 2009 8.41 10.31 0.00 2010 10.31 11.34 4.19 2011 11.34 11.24 0.00 2012 11.24 12.44 0.00 T. Rowe Price Large Cap Growth Investment Division (Class B).............................................. 2004 10.83 11.69 356.94 2005 11.69 12.19 1,171.46 2006 12.19 13.50 1,416.31 2007 13.50 14.45 5,088.09 2008 14.45 8.22 3,195.72 2009 8.22 11.53 2,671.40 2010 11.53 13.20 2,566.49 2011 13.20 12.77 2,459.64 2012 12.77 14.86 1,515.71 T. Rowe Price Mid Cap Growth Investment Division (Class B).............................................. 2004 6.16 6.96 559.85 2005 6.96 7.83 4,916.77 2006 7.83 8.15 5,805.41 2007 8.15 9.40 7,527.42 2008 9.40 5.55 7,808.99 2009 5.55 7.92 7,989.33 2010 7.92 9.92 11,005.59 2011 9.92 9.57 5,683.38 2012 9.57 10.67 5,441.68 T. Rowe Price Small Cap Growth Investment Division (Class B).............................................. 2004 11.90 12.64 602.29 2005 12.64 13.72 1,137.94 2006 13.72 13.95 1,361.63 2007 13.95 14.98 1,650.75 2008 14.98 9.35 1,576.50 2009 9.35 12.72 1,554.94 2010 12.72 16.80 1,909.33 2011 16.80 16.71 1,833.06 2012 16.71 19.00 1,339.62 Western Asset Management Strategic Bond Opportunities Investment Division (Class B).......................... 2004 17.70 18.70 2,689.93 2005 18.70 18.81 8,012.26 2006 18.81 19.34 7,032.64 2007 19.34 19.66 5,110.05 2008 19.66 16.35 4,492.72 2009 16.35 21.14 3,681.09 2010 21.14 23.32 3,066.44 2011 23.32 24.21 2,957.12 2012 24.21 26.42 2,063.79
347
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Western Asset Management U.S Government Investment Division (Class B)................................... 2004 $ 14.63 $ 14.92 2,108.37 2005 14.92 14.84 6,283.23 2006 14.84 15.13 4,472.45 2007 15.13 15.43 4,227.20 2008 15.43 15.05 8,972.78 2009 15.05 15.36 9,251.24 2010 15.36 15.89 4,315.07 2011 15.89 16.41 3,893.84 2012 16.41 16.58 1,273.90 At 2.20 Separate Account Charge: American Funds Bond Investment Division (Class 2)/(e)/. 2006 13.79 14.40 0.00 2007 14.40 14.55 3,535.61 2008 14.55 12.90 3,513.81 2009 12.90 14.21 3,294.39 2010 14.21 14.80 1,798.56 2011 14.80 15.36 1,736.53 2012 15.36 15.84 1,685.19 American Funds Global Small Capitalization Investment Division (Class 2)................................... 2004 15.64 18.50 1,548.37 2005 18.50 22.68 3,303.35 2006 22.68 27.53 9,878.37 2007 27.53 32.70 14,621.74 2008 32.70 14.86 12,731.69 2009 14.86 23.46 13,910.72 2010 23.46 28.09 11,116.09 2011 28.09 22.22 9,663.04 2012 22.22 25.68 8,149.50 American Funds Growth Investment Division (Class 2).... 2004 98.41 108.29 1,538.99 2005 108.29 123.10 2,730.25 2006 123.10 132.73 4,551.06 2007 132.73 145.86 5,997.42 2008 145.86 79.94 5,837.37 2009 79.94 109.02 8,038.41 2010 109.02 126.57 6,730.36 2011 126.57 118.53 5,203.87 2012 118.53 136.68 3,107.25 American Funds Growth-Income Investment Division (Class 2)............................................ 2004 76.59 82.69 1,555.89 2005 82.69 85.61 3,032.38 2006 85.61 96.49 4,108.55 2007 96.49 99.14 4,891.86 2008 99.14 60.27 4,698.06 2009 60.27 77.38 4,491.44 2010 77.38 84.34 4,194.37 2011 84.34 81.00 3,550.46 2012 81.00 93.08 2,340.53
348 PREFERENCE PLUS SELECT DEFERRED ANNUITIES GROUP II 2.00 SEPARATE ACCOUNT CHARGE
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ AllianceBernstein Global Dynamic Allocation Investment Division (Class B) (4/30/2012).......................... 2012 $ 10.15 $ 10.46 389,745.02 American Funds(R) Balanced Allocation Investment Division (Class C) (4/28/2008)................................... 2008 10.00 6.98 0.00 2009 6.98 8.85 55,486.38 2010 8.85 9.73 202,898.02 2011 9.73 9.33 326,943.51 2012 9.33 10.38 404,437.61 American Funds Bond Investment Division+ (Class 2) (5/1/2006).............................................. 2006 13.85 14.47 9,595.57 2007 14.47 14.63 927.95 2008 14.63 12.98 0.00 2009 12.98 14.30 0.00 2010 14.30 14.90 2.15 2011 14.90 15.48 0.00 2012 15.48 15.96 0.00 American Funds Global Small Capitalization Investment Division+ (Class 2)..................................... 2003 10.44 15.69 2,413.26 2004 15.69 18.56 4,253.14 2005 18.56 22.77 3,720.80 2006 22.77 27.65 3,462.82 2007 27.65 32.86 4,490.02 2008 32.86 14.94 3,722.91 2009 14.94 23.59 3,401.46 2010 23.59 28.27 2,989.97 2011 28.27 22.37 3,095.31 2012 22.37 25.87 3,031.25 American Funds(R) Growth Allocation Investment Division (Class C) (4/28/2008)................................... 2008 9.99 6.33 0.00 2009 6.33 8.32 8,622.86 2010 8.32 9.25 8,630.31 2011 9.25 8.64 11,066.56 2012 8.64 9.84 11,776.29 American Funds Growth Investment Division+ (Class 2)...... 2003 74.19 99.35 1,311.12 2004 99.35 109.38 1,952.69 2005 109.38 124.40 1,814.05 2006 124.40 134.20 1,100.43 2007 134.20 147.55 915.88 2008 147.55 80.90 903.53 2009 80.90 110.39 530.85 2010 110.39 128.22 502.06 2011 128.22 120.13 478.89 2012 120.13 138.60 450.48
349
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ American Funds Growth-Income Investment Division+ (Class 2)................................................ 2003 $ 59.65 $ 77.32 453.38 2004 77.32 83.52 1,755.10 2005 83.52 86.51 2,396.81 2006 86.51 97.55 2,471.57 2007 97.55 100.28 1,805.14 2008 100.28 60.99 1,943.98 2009 60.99 78.35 1,779.02 2010 78.35 85.44 1,843.67 2011 85.44 82.10 1,867.05 2012 82.10 94.39 1,514.50 American Funds(R) Moderate Allocation Investment Division (Class C) (4/28/2008).................................... 2008 10.01 7.65 0.00 2009 7.65 9.25 152,863.14 2010 9.25 9.97 482,540.91 2011 9.97 9.79 544,723.97 2012 9.79 10.64 530,918.68 AQR Global Risk Balanced Investment Division (Class B) (4/30/2012).............................................. 2012 11.08 11.44 411,249.44 Baillie Gifford International Stock Investment Division (formerly Artio International Stock Investment Division) (Class B)................................................ 2004 10.93 12.43 0.00 2005 12.43 14.33 0.00 2006 14.33 16.33 0.00 2007 16.33 17.62 0.00 2008 17.62 9.62 0.00 2009 9.62 11.50 129.24 2010 11.50 12.05 1,996.39 2011 12.05 9.43 3,909.51 2012 9.43 11.03 8,901.42 Barclays Capital Aggregate Bond Index Investment Division (Class B)................................................ 2004 12.00 12.31 3,542.00 2005 12.31 12.29 15,667.64 2006 12.29 12.50 12,450.27 2007 12.50 13.07 7,336.83 2008 13.07 13.53 5,187.05 2009 13.53 13.93 76,417.01 2010 13.93 14.43 144,999.58 2011 14.43 15.17 163,276.23 2012 15.17 15.41 188,468.98
350
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ BlackRock Aggressive Growth Investment Division (Class B).............................................. 2004 $30.49 $33.66 0.00 2005 33.66 36.44 0.00 2006 36.44 38.03 0.00 2007 38.03 44.82 0.00 2008 44.82 23.79 0.00 2009 23.79 34.76 1,022.59 2010 34.76 39.18 6,748.91 2011 39.18 37.16 8,392.66 2012 37.16 40.32 9,687.96 BlackRock Bond Income Investment Division (Class B)...... 2004 38.24 39.46 754.00 2005 39.46 39.51 1,489.48 2006 39.51 40.33 0.00 2007 40.33 41.91 155.30 2008 41.91 39.57 109.52 2009 39.57 42.35 1,283.55 2010 42.35 44.86 6,775.56 2011 44.86 46.75 7,833.19 2012 46.75 49.16 14,534.00 BlackRock Diversified Investment Division (Class B)...... 2004 31.74 34.11 0.00 2005 34.11 34.38 78.47 2006 34.38 37.16 434.95 2007 37.16 38.46 435.27 2008 38.46 28.29 433.95 2009 28.29 32.44 433.38 2010 32.44 34.76 434.12 2011 34.76 35.30 281.33 2012 35.30 38.78 94.75 BlackRock Global Tactical Strategies Investment Division (Class B) (4/30/2012).................................. 2012 9.91 10.19 445,113.13 BlackRock Large Cap Core Investment Division* (Class B).............................................. 2007 67.68 67.98 210.53 2008 67.98 41.77 208.85 2009 41.77 48.81 207.20 2010 48.81 53.80 206.65 2011 53.80 52.87 204.49 2012 52.87 58.77 203.20 BlackRock Large Cap Investment Division (Class B)........ 2004 52.50 57.70 0.00 2005 57.70 58.44 0.00 2006 58.44 65.21 211.12 2007 65.21 68.25 0.00
351
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ BlackRock Large Cap Value Investment Division (Class B).. 2004 $10.56 $11.60 0.00 2005 11.60 12.01 0.00 2006 12.01 14.02 0.00 2007 14.02 14.17 175.04 2008 14.17 9.01 0.00 2009 9.01 9.81 22,289.55 2010 9.81 10.47 81,092.07 2011 10.47 10.48 84,733.72 2012 10.48 11.70 91,260.55 BlackRock Legacy Large Cap Growth Investment Division (Class B).............................................. 2004 21.90 23.91 0.00 2005 23.91 25.02 0.00 2006 25.02 25.47 0.00 2007 25.47 29.57 0.00 2008 29.57 18.35 116.68 2009 18.35 24.55 3,512.08 2010 24.55 28.75 10,939.34 2011 28.75 25.60 12,003.14 2012 25.60 28.62 12,745.28 BlackRock Legacy Large Cap Growth Investment Division--Class B (formerly FI Large Cap Investment Division (5/1/2006)). 2006 16.12 16.25 0.00 2007 16.25 16.51 0.00 2008 16.51 8.91 0.00 2009 8.91 9.26 0.00 BlackRock Money Market Investment Division (Class B)..... 2004 19.40 19.25 9,129.91 2005 19.25 19.37 3,185.85 2006 19.37 19.85 4,587.01 2007 19.85 20.39 1,410.41 2008 20.39 20.51 1,619.94 2009 20.51 20.15 7,206.62 2010 20.15 19.75 4,066.50 2011 19.75 19.36 20,543.08 2012 19.36 18.98 17,843.39 Clarion Global Real Estate Investment Division (Class B). 2004 9.99 12.78 1,252.41 2005 12.78 14.19 4,036.10 2006 14.19 19.14 3,967.93 2007 19.14 15.94 2,373.04 2008 15.94 9.11 2,447.36 2009 9.11 12.03 3,229.47 2010 12.03 13.70 9,742.91 2011 13.70 12.68 15,008.90 2012 12.68 15.65 22,495.95
352
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Davis Venture Value Investment Division (Class B)...... 2004 $ 26.98 $ 28.92 0.00 2005 28.92 31.19 24.37 2006 31.19 34.95 130.86 2007 34.95 35.74 363.84 2008 35.74 21.19 315.19 2009 21.19 27.34 890.68 2010 27.34 29.94 4,636.30 2011 29.94 28.09 7,041.54 2012 28.09 31.01 10,389.07 FI Value Leaders Investment Division (Class B)......... 2004 21.54 24.20 0.00 2005 24.20 26.19 0.00 2006 26.19 28.67 0.00 2007 28.67 29.21 0.00 2008 29.21 17.43 0.00 2009 17.43 20.76 0.00 2010 20.76 23.25 0.00 2011 23.25 21.34 0.00 2012 21.34 24.15 0.00 Harris Oakmark International Investment Division (Class B)............................................ 2004 11.85 13.70 210.15 2005 13.70 15.34 209.68 2006 15.34 19.37 592.27 2007 19.37 18.78 723.18 2008 18.78 10.88 708.83 2009 10.88 16.53 15,302.70 2010 16.53 18.87 21,365.22 2011 18.87 15.86 20,465.85 2012 15.86 20.09 26,615.04 Invesco Balanced-Risk Allocation Investment Division (Class B) (4/30/2012)................................ 2012 1.01 1.04 1,136,194.79 Invesco Small Cap Growth Investment Division (Class B). 2004 11.19 11.94 0.00 2005 11.94 12.67 0.00 2006 12.67 14.18 0.00 2007 14.18 15.44 0.00 2008 15.44 9.27 0.00 2009 9.27 12.16 1,016.09 2010 12.16 15.04 970.32 2011 15.04 14.58 2,474.75 2012 14.58 16.90 1,598.44 Janus Forty Investment Division (Class B) (4/30/2007).. 2007 125.42 153.24 683.80 2008 153.24 87.12 1,220.21 2009 87.12 121.99 2,816.31 2010 121.99 130.81 4,607.47 2011 130.81 118.55 4,758.50 2012 118.55 142.35 5,623.83
353
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Jennison Growth Investment Division (Class B)............ 2005 $3.94 $4.72 0.00 2006 4.72 4.74 0.00 2007 4.74 5.18 0.00 2008 5.18 3.22 0.00 2009 3.22 4.40 371.66 2010 4.40 4.81 5,255.24 2011 4.81 4.72 5,947.73 2012 4.72 5.35 47,533.84 Jennison Growth Investment Division (formerly Met/Putnam Voyager Investment Division) (Class B).............................................. 2004 4.12 4.28 0.00 2005 4.28 3.90 0.00 Jennison Growth Investment Division (formerly Oppenheimer Capital Appreciation Investment Division) (Class B) (5/1/2005)......................... 2005 7.74 8.38 0.00 2006 8.38 8.84 317.75 2007 8.84 9.90 0.00 2008 9.90 5.24 0.00 2009 5.24 7.39 11,906.65 2010 7.39 7.92 17,953.16 2011 7.92 7.66 5,906.39 2012 7.66 8.60 0.00 JPMorgan Global Active Allocation Investment Division (Class B) (4/30/2012).................................. 2012 1.01 1.04 502,029.14 Legg Mason ClearBridge Aggressive Growth Investment Division (Class B)..................................... 2004 6.47 7.01 0.00 2005 7.01 7.80 0.00 2006 7.80 7.52 0.00 2007 7.52 7.53 0.00 2008 7.53 4.50 0.00 2009 4.50 5.86 0.00 2010 5.86 7.12 2,721.42 2011 7.12 7.20 5,679.72 2012 7.20 8.37 13,661.01 Legg Mason ClearBridge Aggressive Growth Investment Division (formerly Legg Mason Value Equity Investment Division) (Class B).............................................. 2006 8.96 9.57 0.00 2007 9.57 8.83 0.00 2008 8.83 3.92 0.00 2009 3.92 5.31 17,377.34 2010 5.31 5.58 21,812.13 2011 5.58 5.93 0.00 Legg Mason Value Equity Investment Division (formerly MFS(R) Investors Trust Investment Division) (Class B).............................................. 2004 7.46 8.23 0.00 2005 8.23 8.63 0.00 2006 8.63 9.00 0.00
354
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Loomis Sayles Small Cap Core Investment Division (Class B)............................................. 2004 $22.05 $24.88 0.00 2005 24.88 26.02 0.00 2006 26.02 29.69 0.00 2007 29.69 32.48 0.00 2008 32.48 20.36 0.00 2009 20.36 25.93 609.31 2010 25.93 32.33 813.35 2011 32.33 31.80 814.48 2012 31.80 35.61 401.56 Loomis Sayles Small Cap Growth Investment Division (Class B)............................................. 2004 8.65 9.54 0.00 2005 9.54 9.76 0.00 2006 9.76 10.50 0.00 2007 10.50 10.73 0.00 2008 10.73 6.17 0.00 2009 6.17 7.85 0.00 2010 7.85 10.10 0.00 2011 10.10 10.18 0.00 2012 10.18 11.06 0.00 Lord Abbett Bond Debenture Investment Division (Class B)............................................. 2004 15.20 16.13 0.00 2005 16.13 16.05 2,036.19 2006 16.05 17.17 2,293.36 2007 17.17 17.93 1,833.31 2008 17.93 14.30 1,776.20 2009 14.30 19.18 746.78 2010 19.18 21.24 12,519.93 2011 21.24 21.75 11,851.59 2012 21.75 24.07 11,879.54 Lord Abbett Mid Cap Value Investment Division (Class B). 2012 23.35 23.91 7,157.33 Lord Abbett Mid Cap Value Investment Division (Class B) (formerly Neuberger Berman Mid Cap Value Investment Division (Class B))................................... 2004 17.95 20.86 0.00 2005 20.86 22.89 2,335.47 2006 22.89 24.95 2,757.29 2007 24.95 25.23 2,301.50 2008 25.23 12.99 2,282.94 2009 12.99 18.81 7,337.82 2010 18.81 23.24 11,074.71 2011 23.24 21.26 8,115.78 2012 21.26 23.47 0.00
355
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Met/Artisan Mid Cap Value Investment Division (Class B).... 2004 $28.19 $30.47 0.00 2005 30.47 32.77 516.30 2006 32.77 36.03 486.09 2007 36.03 32.82 259.96 2008 32.82 17.32 258.47 2009 17.32 23.98 2,425.71 2010 23.98 26.97 3,757.01 2011 26.97 28.16 5,414.85 2012 28.16 30.79 6,183.77 Met/Franklin Income Investment Division (Class B) (4/28/2008).............................................. 2008 9.99 7.95 0.00 2009 7.95 9.96 2,330.94 2010 9.96 10.92 4,711.25 2011 10.92 10.93 5,375.82 2012 10.93 12.05 4,656.19 Met/Franklin Low Duration Total Return Investment Division (Class B) (5/2/2011)..................................... 2011 9.98 9.72 0.00 2012 9.72 9.95 0.00 Met/Franklin Mutual Shares Investment Division (Class B) (4/28/2008).............................................. 2008 9.99 6.57 0.00 2009 6.57 8.04 2,284.00 2010 8.04 8.75 5,053.40 2011 8.75 8.53 5,287.67 2012 8.53 9.53 4,813.96 Met/Franklin Templeton Founding Strategy Investment Division (Class B) (4/28/2008)........................... 2008 9.99 7.00 0.00 2009 7.00 8.82 16,136.88 2010 8.82 9.52 16,143.26 2011 9.52 9.16 18,787.98 2012 9.16 10.43 18,048.29 Met/Templeton Growth Investment Division (Class B) (4/28/2008).............................................. 2008 9.99 6.54 0.00 2009 6.54 8.50 8,243.08 2010 8.50 8.97 33,858.63 2011 8.97 8.19 35,481.54 2012 8.19 9.81 35,223.85 MetLife Aggressive Strategy Investment Division............ 2011 11.72 10.00 13,058.13 2012 10.00 11.44 13,656.32 MetLife Aggressive Strategy Investment Division (formerly MetLife Aggressive Allocation Investment Division) (Class B)...................................... 2005 9.99 11.10 0.00 2006 11.10 12.59 0.00 2007 12.59 12.74 2,994.77 2008 12.74 7.43 2,993.70 2009 7.43 9.58 3,010.68 2010 9.58 10.87 2,998.71 2011 10.87 11.76 0.00
356
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ MetLife Balanced Plus Investment Division (Class B) (4/30/2012)............................................. 2012 $ 9.94 $10.36 451,186.98 MetLife Conservative Allocation Investment Division (Class B) (5/1/2005).................................... 2005 9.99 10.25 0.00 2006 10.25 10.74 0.00 2007 10.74 11.12 0.00 2008 11.12 9.33 2,060.25 2009 9.33 11.02 29,871.12 2010 11.02 11.89 55,435.55 2011 11.89 12.03 81,614.85 2012 12.03 12.88 119,014.96 MetLife Conservative to Moderate Allocation Investment Division (Class B) (5/1/2005)........................... 2005 9.99 10.47 0.00 2006 10.47 11.23 0.00 2007 11.23 11.54 10,049.87 2008 11.54 8.86 8,977.60 2009 8.86 10.75 26,284.66 2010 10.75 11.75 136,779.21 2011 11.75 11.64 246,781.03 2012 11.64 12.71 247,821.26 MetLife Mid Cap Stock Index Investment Division (Class B)............................................... 2004 11.38 12.70 220.68 2005 12.70 13.95 1,550.66 2006 13.95 15.01 2,166.87 2007 15.01 15.82 2,262.33 2008 15.82 9.86 2,084.08 2009 9.86 13.23 15,029.97 2010 13.23 16.34 35,100.99 2011 16.34 15.66 37,367.51 2012 15.66 18.01 39,275.51 MetLife Moderate Allocation Investment Division (Class B) (5/1/2005).............................................. 2005 9.99 10.70 0.00 2006 10.70 11.73 0.00 2007 11.73 12.00 6,813.56 2008 12.00 8.39 9,625.59 2009 8.39 10.41 172,952.20 2010 10.41 11.55 648,202.72 2011 11.55 11.16 744,956.34 2012 11.16 12.39 802,464.46 MetLife Moderate to Aggressive Allocation Investment Division (Class B) (5/1/2005)........................... 2005 9.99 10.93 0.00 2006 10.93 12.23 9,597.98 2007 12.23 12.45 7,247.66 2008 12.45 7.92 496.93 2009 7.92 10.02 8,684.15 2010 10.02 11.26 47,115.16 2011 11.26 10.62 49,028.51 2012 10.62 12.02 49,724.04
357
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ MetLife Stock Index Investment Division (Class B). 2004 $31.17 $33.64 932.51 2005 33.64 34.42 4,653.75 2006 34.42 38.87 4,052.46 2007 38.87 39.99 3,035.45 2008 39.99 24.59 2,910.98 2009 24.59 30.35 50,848.30 2010 30.35 34.06 81,990.42 2011 34.06 33.94 89,053.88 2012 33.94 38.39 89,252.21 MFS(R) Research International Investment Division (Class B)....................................... 2004 9.55 10.93 0.00 2005 10.93 12.47 0.00 2006 12.47 15.47 0.00 2007 15.47 17.18 0.00 2008 17.18 9.70 0.00 2009 9.70 12.52 2,427.29 2010 12.52 13.67 3,535.41 2011 13.67 11.96 2,050.25 2012 11.96 13.68 1,826.68 MFS(R) Total Return Investment Division (Class B). 2004 33.19 35.95 0.00 2005 35.95 36.24 1,335.09 2006 36.24 39.77 1,335.09 2007 39.77 40.58 1,165.26 2008 40.58 30.88 1,164.61 2009 30.88 35.81 331.63 2010 35.81 38.55 1,954.75 2011 38.55 38.60 2,201.40 2012 38.60 42.11 2,148.45 MFS(R) Value Investment Division (Class B)........ 2004 11.74 12.62 948.46 2005 12.62 12.16 2,385.88 2006 12.16 14.05 494.83 2007 14.05 13.22 0.00 2008 13.22 8.59 0.00 2009 8.59 10.15 6,610.67 2010 10.15 11.06 20,206.39 2011 11.06 10.91 19,147.06 2012 10.91 12.44 17,820.26 MLA Mid Cap Investment Division (formerly Lazard Mid Cap Investment Division) (Class B)....................................... 2004 12.37 13.30 0.00 2005 13.30 14.09 0.00 2006 14.09 15.84 0.00 2007 15.84 15.10 0.00 2008 15.10 9.13 0.00 2009 9.13 12.24 0.00 2010 12.24 14.74 715.42 2011 14.74 13.69 2,526.00 2012 13.69 14.13 2,742.30
358
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ MSCI EAFE(R) Index Investment Division (formerly Morgan Stanley EAFE(R) Index Investment Division) (Class B).................................... 2004 $ 9.25 $10.71 519.78 2005 10.71 11.86 2,555.02 2006 11.86 14.59 2,012.62 2007 14.59 15.80 1,546.11 2008 15.80 8.95 1,505.84 2009 8.95 11.25 39,736.44 2010 11.25 11.91 65,798.14 2011 11.91 10.19 78,802.45 2012 10.19 11.79 86,918.88 Morgan Stanley Mid Cap Growth Investment Division (Class B).............................................. 2010 11.89 13.76 3,221.48 2011 13.76 12.55 6,725.96 2012 12.55 13.44 17,533.82 Morgan Stanley Mid Cap Growth Investment Division (formerly FI Mid Cap Opportunities Investment Division (Class B))............................................. 2004 14.03 15.73 0.00 2005 15.73 16.45 0.00 2006 16.45 17.99 0.00 2007 17.99 19.06 328.77 2008 19.06 8.32 424.10 2009 8.32 10.90 2,090.20 2010 10.90 11.77 0.00 Neuberger Berman Genesis Investment Division (Class B)... 2004 15.74 17.64 0.00 2005 17.64 17.97 2,780.30 2006 17.97 20.51 2,164.21 2007 20.51 19.36 1,656.74 2008 19.36 11.66 1,653.87 2009 11.66 12.89 0.00 2010 12.89 15.33 2.04 2011 15.33 15.86 0.00 2012 15.86 17.06 42.73 Oppenheimer Global Equity Investment Division (Class B).. 2004 12.21 14.03 0.00 2005 14.03 15.95 47.74 2006 15.95 18.19 498.93 2007 18.19 18.95 254.82 2008 18.95 11.04 254.05 2009 11.04 15.13 1,426.53 2010 15.13 17.19 4,594.07 2011 17.19 15.43 5,402.49 2012 15.43 18.33 5,920.40
359
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ PIMCO Inflation Protected Bond Investment Division (Class B) (5/1/2006)..................................... 2006 $10.79 $10.86 798.68 2007 10.86 11.79 12,557.21 2008 11.79 10.76 9,089.55 2009 10.76 12.45 21,182.78 2010 12.45 13.15 50,445.66 2011 13.15 14.33 67,883.43 2012 14.33 15.33 74,662.29 PIMCO Total Return Investment Division (Class B)........... 2004 11.44 11.81 440.45 2005 11.81 11.84 8,179.04 2006 11.84 12.13 7,447.36 2007 12.13 12.78 4,933.48 2008 12.78 12.58 5,952.41 2009 12.58 14.56 48,378.06 2010 14.56 15.43 85,239.29 2011 15.43 15.61 83,164.88 2012 15.61 16.72 116,288.90 Pyramis(R) Government Income Investment Division (Class B) (4/30/2012).............................................. 2012 10.70 10.82 189,666.22 RCM Technology Investment Division (Class B)............... 2004 4.08 4.24 0.00 2005 4.24 4.61 0.00 2006 4.61 4.76 0.00 2007 4.76 6.14 0.00 2008 6.14 3.34 0.00 2009 3.34 5.21 5,553.38 2010 5.21 6.52 40,225.53 2011 6.52 5.76 40,957.47 2012 5.76 6.33 42,253.02 Russell 2000(R) Index Investment Division (Class B)........ 2004 13.03 14.86 96.62 2005 14.86 15.19 94.04 2006 15.19 17.51 342.50 2007 17.51 16.87 428.25 2008 16.87 10.97 324.41 2009 10.97 13.51 11,178.11 2010 13.51 16.76 21,215.53 2011 16.76 15.72 22,062.84 2012 15.72 17.89 24,341.93 Schroders Global Multi-Asset Investment Division (Class B) (4/30/2012).............................................. 2012 1.01 1.06 535,553.65 SSgA Growth ETF Investment Division (Class B) (5/1/2006)............................................... 2006 10.66 11.33 0.00 2007 11.33 11.72 0.00 2008 11.72 7.70 0.00 2009 7.70 9.75 0.00 2010 9.75 10.91 0.00 2011 10.91 10.46 0.00 2012 10.46 11.80 0.00
360
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ SSgA Growth and Income ETF Investment Division (Class B) (5/1/2006)............................................. 2006 $10.47 $11.07 0.00 2007 11.07 11.44 0.00 2008 11.44 8.40 0.00 2009 8.40 10.28 2,753.71 2010 10.28 11.32 52,081.98 2011 11.32 11.21 92,818.79 2012 11.21 12.40 88,982.96 T. Rowe Price Large Cap Growth Investment Division (Class B).............................................. 2004 10.80 11.66 0.00 2005 11.66 12.15 0.00 2006 12.15 13.45 0.00 2007 13.45 14.38 0.00 2008 14.38 8.17 0.00 2009 8.17 11.46 0.00 2010 11.46 13.12 1.16 2011 13.12 12.69 0.00 2012 12.69 14.76 0.00 T. Rowe Price Mid Cap Growth Investment Division (Class B).............................................. 2004 6.15 6.95 0.00 2005 6.95 7.81 0.00 2006 7.81 8.12 0.00 2007 8.12 9.37 0.00 2008 9.37 5.53 0.00 2009 5.53 7.89 30,458.22 2010 7.89 9.87 40,912.13 2011 9.87 9.52 20,934.05 2012 9.52 10.61 27,944.03 T. Rowe Price Small Cap Growth Investment Division (Class B).............................................. 2004 11.85 12.59 0.00 2005 12.59 13.66 0.00 2006 13.66 13.88 0.00 2007 13.88 14.90 0.00 2008 14.90 9.30 0.00 2009 9.30 12.64 452.70 2010 12.64 16.68 2,151.25 2011 16.68 16.59 2,713.53 2012 16.59 18.85 4,457.17 Western Asset Management Strategic Bond Opportunities Investment Division (Class B).......................... 2004 17.62 18.60 0.00 2005 18.60 18.70 2,194.07 2006 18.70 19.22 322.63 2007 19.22 19.53 329.08 2008 19.53 16.23 257.63 2009 16.23 20.98 230.11 2010 20.98 23.13 211.46 2011 23.13 24.00 194.29 2012 24.00 26.18 183.97
361
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Western Asset Management U.S Government Investment Division (Class B)................................... 2004 $ 14.56 $ 14.85 0.00 2005 14.85 14.76 0.00 2006 14.76 15.03 822.64 2007 15.03 15.33 1,240.53 2008 15.33 14.94 1,100.25 2009 14.94 15.25 2,409.17 2010 15.25 15.76 4,269.29 2011 15.76 16.27 11,190.07 2012 16.27 16.43 11,912.43 At 2.25 Separate Account Charge: American Funds Bond Investment Division (Class 2)/(e)/. 2006 13.73 14.33 920.46 2007 14.33 14.47 761.09 2008 14.47 12.83 330.55 2009 12.83 14.12 333.90 2010 14.12 14.70 329.56 2011 14.70 15.25 301.01 2012 15.25 15.71 302.50 American Funds Global Small Capitalization Investment Division (Class 2)................................... 2004 15.60 18.44 0.00 2005 18.44 22.60 0.00 2006 22.60 27.41 179.50 2007 27.41 32.54 287.37 2008 32.54 14.78 300.11 2009 14.78 23.32 11,587.99 2010 23.32 27.91 29,311.12 2011 27.91 22.07 26,995.71 2012 22.07 25.50 30,240.57 American Funds Growth Investment Division (Class 2).... 2004 97.44 107.17 37.63 2005 107.17 121.76 640.42 2006 121.76 131.22 702.00 2007 131.22 144.13 572.15 2008 144.13 78.95 554.82 2009 78.95 107.61 23.60 2010 107.61 124.88 202.32 2011 124.88 116.88 201.69 2012 116.88 134.72 201.65 American Funds Growth-Income Investment Division (Class 2)............................................ 2004 75.83 81.83 65.02 2005 81.83 84.68 64.95 2006 84.68 95.39 284.87 2007 95.39 97.96 505.03 2008 97.96 59.52 482.45 2009 59.52 76.38 2,361.48 2010 76.38 83.21 8,412.90 2011 83.21 79.88 10,785.27 2012 79.88 91.74 10,548.30
362 PREFERENCE PLUS SELECT DEFERRED ANNUITIES GROUP II 2.05 SEPARATE ACCOUNT CHARGE
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ AllianceBernstein Global Dynamic Allocation Investment Division (Class B) (4/30/2012).......................... 2012 $ 10.15 $ 10.45 0.00 American Funds(R) Balanced Allocation Investment Division (Class C) (4/28/2008)................................... 2008 10.00 6.98 14,029.64 2009 6.98 8.84 31,732.05 2010 8.84 9.71 26,819.10 2011 9.71 9.31 56,539.18 2012 9.31 10.36 45,063.35 American Funds Bond Investment Division+ (Class 2) (5/1/2006).............................................. 2006 13.79 14.40 1,759.15 2007 14.40 14.55 4,011.12 2008 14.55 12.90 913.11 2009 12.90 14.21 486.51 2010 14.21 14.80 519.26 2011 14.80 15.36 0.00 2012 15.36 15.84 0.00 American Funds Global Small Capitalization Investment Division+ (Class 2)..................................... 2003 10.41 15.64 16,775.79 2004 15.64 18.50 30,426.34 2005 18.50 22.68 34,820.47 2006 22.68 27.53 34,101.06 2007 27.53 32.70 29,940.68 2008 32.70 14.86 25,691.36 2009 14.86 23.46 21,891.63 2010 23.46 28.09 6,617.37 2011 28.09 22.22 0.00 2012 22.22 25.68 0.00 American Funds(R) Growth Allocation Investment Division (Class C) (4/28/2008)................................... 2008 9.99 6.33 19,717.64 2009 6.33 8.31 37,579.19 2010 8.31 9.24 60,944.28 2011 9.24 8.62 60,887.71 2012 8.62 9.81 37,687.89 American Funds Growth Investment Division+ (Class 2)...... 2003 73.50 98.36 6,389.17 2004 98.36 108.24 14,117.57 2005 108.24 123.04 16,703.64 2006 123.04 132.67 15,225.06 2007 132.67 145.79 12,825.58 2008 145.79 79.90 11,603.20 2009 79.90 108.96 10,154.15 2010 108.96 126.51 4,858.70 2011 126.51 118.47 0.00 2012 118.47 136.61 0.00
363
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ American Funds Growth-Income Investment Division+ (Class 2)................................................ 2003 $59.09 $76.55 9,674.26 2004 76.55 82.65 19,070.43 2005 82.65 85.57 19,559.27 2006 85.57 96.44 17,826.15 2007 96.44 99.09 16,481.01 2008 99.09 60.24 12,475.20 2009 60.24 77.34 10,442.52 2010 77.34 84.30 6,397.61 2011 84.30 80.96 0.00 2012 80.96 93.04 0.00 American Funds(R) Moderate Allocation Investment Division (Class C) (4/28/2008).................................... 2008 10.01 7.65 1,527.43 2009 7.65 9.24 46,234.17 2010 9.24 9.95 158,240.03 2011 9.95 9.77 152,975.72 2012 9.77 10.61 142,391.84 AQR Global Risk Balanced Investment Division (Class B) (4/30/2012).............................................. 2012 11.07 11.43 16,460.77 Baillie Gifford International Stock Investment Division (formerly Artio International Stock Investment Division) (Class B)................................................ 2004 10.86 12.35 5,512.51 2005 12.35 14.23 21,842.17 2006 14.23 16.20 75,832.81 2007 16.20 17.47 72,104.37 2008 17.47 9.54 41,479.19 2009 9.54 11.39 36,151.29 2010 11.39 11.93 34,070.70 2011 11.93 9.33 31,258.45 2012 9.33 10.91 12,830.55 Barclays Capital Aggregate Bond Index Investment Division (Class B)................................................ 2004 11.97 12.27 109,181.83 2005 12.27 12.24 352,065.05 2006 12.24 12.45 427,787.91 2007 12.45 13.01 502,174.89 2008 13.01 13.47 351,947.89 2009 13.47 13.85 322,475.56 2010 13.85 14.34 311,993.21 2011 14.34 15.08 234,901.53 2012 15.08 15.30 92,505.13
364
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ BlackRock Aggressive Growth Investment Division (Class B).............................................. 2004 $30.24 $33.39 1,392.47 2005 33.39 36.12 5,283.30 2006 36.12 37.68 6,102.10 2007 37.68 44.38 11,820.15 2008 44.38 23.55 8,846.97 2009 23.55 34.39 9,258.88 2010 34.39 38.74 8,645.58 2011 38.74 36.73 7,095.74 2012 36.73 39.82 3,674.42 BlackRock Bond Income Investment Division (Class B)...... 2004 37.84 39.04 7,792.97 2005 39.04 39.07 30,493.05 2006 39.07 39.86 38,480.29 2007 39.86 41.40 37,796.82 2008 41.40 39.07 32,343.22 2009 39.07 41.80 24,565.28 2010 41.80 44.25 21,673.94 2011 44.25 46.09 13,350.43 2012 46.09 48.44 6,281.60 BlackRock Diversified Investment Division (Class B)...... 2004 31.46 33.80 8,678.74 2005 33.80 34.05 17,006.57 2006 34.05 36.78 20,188.90 2007 36.78 38.05 22,985.61 2008 38.05 27.97 23,938.10 2009 27.97 32.06 21,472.81 2010 32.06 34.34 22,073.82 2011 34.34 34.85 13,373.95 2012 34.85 38.27 3,032.25 BlackRock Global Tactical Strategies Investment Division (Class B) (4/30/2012).................................. 2012 9.90 10.18 15,748.52 BlackRock Large Cap Core Investment Division* (Class B).............................................. 2007 66.88 67.16 3,245.20 2008 67.16 41.24 2,922.85 2009 41.24 48.16 2,034.11 2010 48.16 53.06 2,771.42 2011 53.06 52.12 3,407.29 2012 52.12 57.91 3,116.40 BlackRock Large Cap Investment Division (Class B)........ 2004 51.95 57.08 754.26 2005 57.08 57.78 1,948.68 2006 57.78 64.45 1,677.84 2007 64.45 67.44 0.00
365
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ BlackRock Large Cap Value Investment Division (Class B).. 2004 $10.55 $11.59 12,305.61 2005 11.59 11.98 34,390.13 2006 11.98 13.99 116,748.29 2007 13.99 14.13 127,218.25 2008 14.13 8.98 94,871.52 2009 8.98 9.77 88,639.15 2010 9.77 10.43 74,539.88 2011 10.43 10.43 51,536.70 2012 10.43 11.64 34,558.23 BlackRock Legacy Large Cap Growth Investment Division (Class B).............................................. 2004 21.80 23.78 5,189.12 2005 23.78 24.88 9,718.86 2006 24.88 25.32 9,715.62 2007 25.32 29.38 33,049.85 2008 29.38 18.22 54,030.08 2009 18.22 24.36 57,709.63 2010 24.36 28.52 38,191.19 2011 28.52 25.38 29,062.09 2012 25.38 28.36 19,818.05 BlackRock Legacy Large Cap Growth Investment Division--Class B (formerly FI Large Cap Investment Division (5/1/2006)). 2006 16.04 16.16 4,346.30 2007 16.16 16.42 5,380.96 2008 16.42 8.85 5,091.40 2009 8.85 9.20 0.00 BlackRock Money Market Investment Division (Class B)..... 2004 19.20 19.05 0.00 2005 19.05 19.16 0.00 2006 19.16 19.62 0.00 2007 19.62 20.15 0.00 2008 20.15 20.25 1,661.58 2009 20.25 19.89 0.00 2010 19.89 19.49 1.04 2011 19.49 19.09 0.00 2012 19.09 18.70 0.00 Clarion Global Real Estate Investment Division (Class B). 2004 9.99 12.78 36,292.62 2005 12.78 14.19 119,237.10 2006 14.19 19.14 247,308.97 2007 19.14 15.94 135,261.17 2008 15.94 9.11 138,007.74 2009 9.11 12.02 110,924.02 2010 12.02 13.67 95,985.35 2011 13.67 12.65 66,140.78 2012 12.65 15.61 28,101.03
366
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Davis Venture Value Investment Division (Class B)...... 2004 $ 26.85 $ 28.78 5,625.69 2005 28.78 31.01 36,415.93 2006 31.01 34.74 50,184.70 2007 34.74 35.51 46,774.57 2008 35.51 21.04 44,008.56 2009 21.04 27.13 38,740.09 2010 27.13 29.70 36,558.17 2011 29.70 27.85 32,821.66 2012 27.85 30.73 11,771.53 FI Value Leaders Investment Division (Class B)......... 2004 21.42 24.05 0.00 2005 24.05 26.03 15,277.09 2006 26.03 28.47 15,355.84 2007 28.47 28.99 11,503.27 2008 28.99 17.29 10,096.11 2009 17.29 20.58 10,007.05 2010 20.58 23.05 9,942.37 2011 23.05 21.14 9,483.68 2012 21.14 23.91 3,838.03 Harris Oakmark International Investment Division (Class B)............................................ 2004 11.83 13.67 8,502.62 2005 13.67 15.31 49,213.15 2006 15.31 19.32 129,629.72 2007 19.32 18.72 132,824.18 2008 18.72 10.84 84,566.73 2009 10.84 16.47 114,411.52 2010 16.47 18.78 80,454.88 2011 18.78 15.78 67,568.31 2012 15.78 19.98 34,943.47 Invesco Balanced-Risk Allocation Investment Division (Class B) (4/30/2012)................................ 2012 1.01 1.04 74,303.63 Invesco Small Cap Growth Investment Division (Class B). 2004 11.17 11.92 2,841.34 2005 11.92 12.64 32,396.74 2006 12.64 14.14 44,344.76 2007 14.14 15.39 50,034.94 2008 15.39 9.24 48,195.68 2009 9.24 12.11 48,315.60 2010 12.11 14.97 49,446.68 2011 14.97 14.51 43,483.34 2012 14.51 16.81 13,810.16 Janus Forty Investment Division (Class B) (4/30/2007).. 2007 123.86 151.28 3,525.90 2008 151.28 85.96 11,944.70 2009 85.96 120.30 15,722.51 2010 120.30 128.94 10,623.30 2011 128.94 116.80 8,093.35 2012 116.80 140.18 5,653.66
367
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Jennison Growth Investment Division (Class B)............ 2005 $3.93 $4.71 22,374.77 2006 4.71 4.73 40,782.90 2007 4.73 5.16 48,908.77 2008 5.16 3.20 74,908.97 2009 3.20 4.38 58,932.53 2010 4.38 4.78 48,662.14 2011 4.78 4.69 43,416.71 2012 4.69 5.31 47,319.39 Jennison Growth Investment Division (formerly Met/Putnam Voyager Investment Division) (Class B).............................................. 2004 4.11 4.27 0.00 2005 4.27 3.89 5,910.02 Jennison Growth Investment Division (formerly Oppenheimer Capital Appreciation Investment Division) (Class B) (5/1/2005)......................... 2005 7.73 8.36 2,919.63 2006 8.36 8.81 12,230.30 2007 8.81 9.86 73,603.77 2008 9.86 5.22 77,482.94 2009 5.22 7.35 74,802.53 2010 7.35 7.88 26,623.92 2011 7.88 7.61 18,660.87 2012 7.61 8.55 0.00 JPMorgan Global Active Allocation Investment Division (Class B) (4/30/2012).................................. 2012 1.01 1.04 2,346.01 Legg Mason ClearBridge Aggressive Growth Investment Division (Class B)..................................... 2004 6.46 6.99 2,082.05 2005 6.99 7.78 4,809.33 2006 7.78 7.49 12,750.56 2007 7.49 7.51 7,661.24 2008 7.51 4.48 8,381.54 2009 4.48 5.84 9,833.41 2010 5.84 7.08 9,162.94 2011 7.08 7.16 12,316.43 2012 7.16 8.32 16,362.42 Legg Mason ClearBridge Aggressive Growth Investment Division (formerly Legg Mason Value Equity Investment Division) (Class B).............................................. 2006 8.93 9.54 7,274.31 2007 9.54 8.79 6,547.82 2008 8.79 3.90 6,269.41 2009 3.90 5.28 5,798.12 2010 5.28 5.55 5,498.70 2011 5.55 5.89 0.00 Legg Mason Value Equity Investment Division (formerly MFS(R) Investors Trust Investment Division) (Class B).. 2004 7.44 8.21 4,465.59 2005 8.21 8.60 6,506.72 2006 8.60 8.97 6,470.32
368
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Loomis Sayles Small Cap Core Investment Division (Class B)............................................. 2004 $21.94 $24.75 3,975.53 2005 24.75 25.87 9,845.11 2006 25.87 29.50 25,306.15 2007 29.50 32.26 25,262.83 2008 32.26 20.21 18,461.24 2009 20.21 25.72 16,892.37 2010 25.72 32.06 14,390.23 2011 32.06 31.52 12,246.95 2012 31.52 35.28 6,447.49 Loomis Sayles Small Cap Growth Investment Division (Class B)............................................. 2004 8.64 9.52 9,214.36 2005 9.52 9.74 12,457.12 2006 9.74 10.47 25,775.67 2007 10.47 10.70 30,620.85 2008 10.70 6.15 28,538.04 2009 6.15 7.81 17,327.74 2010 7.81 10.05 16,487.90 2011 10.05 10.12 12,221.72 2012 10.12 11.00 3,951.87 Lord Abbett Bond Debenture Investment Division (Class B)............................................. 2004 15.14 16.06 14,480.98 2005 16.06 15.97 40,166.81 2006 15.97 17.08 57,628.37 2007 17.08 17.83 55,855.10 2008 17.83 14.21 45,769.48 2009 14.21 19.05 40,278.03 2010 19.05 21.08 51,560.57 2011 21.08 21.58 39,640.28 2012 21.58 23.87 29,494.64 Lord Abbett Mid Cap Value Investment Division (Class B). 2012 23.20 23.74 15,645.32 Lord Abbett Mid Cap Value Investment Division (Class B) (formerly Neuberger Berman Mid Cap Value Investment Division (Class B))................................... 2004 17.91 20.80 18,280.94 2005 20.80 22.81 69,809.03 2006 22.81 24.85 69,581.39 2007 24.85 25.12 88,731.70 2008 25.12 12.92 63,605.26 2009 12.92 18.71 55,220.28 2010 18.71 23.10 54,852.74 2011 23.10 21.12 38,593.02 2012 21.12 23.31 0.00
369
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Met/Artisan Mid Cap Value Investment Division (Class B).... 2004 $28.04 $30.29 9,739.96 2005 30.29 32.56 30,910.94 2006 32.56 35.79 37,088.49 2007 35.79 32.58 32,971.77 2008 32.58 17.19 29,369.66 2009 17.19 23.78 24,741.32 2010 23.78 26.73 22,077.19 2011 26.73 27.89 17,073.51 2012 27.89 30.49 6,501.20 Met/Franklin Income Investment Division (Class B) (4/28/2008).............................................. 2008 9.99 7.95 559.71 2009 7.95 9.95 3,056.41 2010 9.95 10.90 3,897.08 2011 10.90 10.91 3,600.95 2012 10.91 12.02 1,812.42 Met/Franklin Low Duration Total Return Investment Division (Class B) (5/2/2011)..................................... 2011 9.98 9.72 9,524.04 2012 9.72 9.94 0.00 Met/Franklin Mutual Shares Investment Division (Class B) (4/28/2008).............................................. 2008 9.99 6.57 328.37 2009 6.57 8.03 4,101.54 2010 8.03 8.74 4,507.16 2011 8.74 8.52 2,405.54 2012 8.52 9.50 838.19 Met/Franklin Templeton Founding Strategy Investment Division (Class B) (4/28/2008)........................... 2008 9.99 7.00 0.00 2009 7.00 8.81 10,596.01 2010 8.81 9.50 8,790.56 2011 9.50 9.15 9,627.03 2012 9.15 10.41 9,101.35 Met/Templeton Growth Investment Division (Class B) (4/28/2008).............................................. 2008 9.99 6.53 528.71 2009 6.53 8.49 7,378.12 2010 8.49 8.96 1,921.33 2011 8.96 8.17 1,202.27 2012 8.17 9.78 103.95 MetLife Aggressive Strategy Investment Division............ 2011 11.69 9.97 3,178.47 2012 9.97 11.40 3,446.96 MetLife Aggressive Strategy Investment Division (formerly MetLife Aggressive Allocation Investment Division) (Class B)...................................... 2005 9.99 11.10 2,419.58 2006 11.10 12.58 2,482.72 2007 12.58 12.72 32,004.58 2008 12.72 7.42 17,861.44 2009 7.42 9.56 25,956.52 2010 9.56 10.84 12,631.06 2011 10.84 11.73 0.00
370
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ MetLife Balanced Plus Investment Division (Class B) (4/30/2012)............................................. 2012 $ 9.93 $10.35 3,314.78 MetLife Conservative Allocation Investment Division (Class B) (5/1/2005).................................... 2005 9.99 10.25 10,277.76 2006 10.25 10.73 2,064.38 2007 10.73 11.10 66,392.49 2008 11.10 9.31 115,194.20 2009 9.31 10.99 109,190.30 2010 10.99 11.85 85,900.77 2011 11.85 11.99 198,144.68 2012 11.99 12.83 205,156.50 MetLife Conservative to Moderate Allocation Investment Division (Class B) (5/1/2005)........................... 2005 9.99 10.47 25,198.90 2006 10.47 11.22 161,099.95 2007 11.22 11.52 171,220.90 2008 11.52 8.85 149,368.41 2009 8.85 10.72 132,629.55 2010 10.72 11.72 180,165.21 2011 11.72 11.60 123,990.92 2012 11.60 12.67 138,999.46 MetLife Mid Cap Stock Index Investment Division (Class B)............................................... 2004 11.36 12.67 25,139.84 2005 12.67 13.91 66,915.42 2006 13.91 14.97 84,983.73 2007 14.97 15.76 102,820.52 2008 15.76 9.82 105,502.20 2009 9.82 13.16 87,055.42 2010 13.16 16.25 89,247.28 2011 16.25 15.57 72,962.46 2012 15.57 17.90 37,706.75 MetLife Moderate Allocation Investment Division (Class B) (5/1/2005).............................................. 2005 9.99 10.70 44,284.85 2006 10.70 11.72 338,111.07 2007 11.72 11.98 642,114.86 2008 11.98 8.38 641,171.78 2009 8.38 10.38 552,743.99 2010 10.38 11.51 712,728.40 2011 11.51 11.13 657,704.57 2012 11.13 12.34 595,832.00 MetLife Moderate to Aggressive Allocation Investment Division (Class B) (5/1/2005)........................... 2005 9.99 10.92 82,413.41 2006 10.92 12.22 323,055.48 2007 12.22 12.43 819,427.57 2008 12.43 7.90 855,327.88 2009 7.90 9.99 840,468.96 2010 9.99 11.23 725,980.03 2011 11.23 10.59 544,817.85 2012 10.59 11.97 503,745.96
371
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ MetLife Stock Index Investment Division (Class B). 2004 $30.96 $33.40 48,821.94 2005 33.40 34.16 158,429.74 2006 34.16 38.55 189,563.24 2007 38.55 39.64 222,180.98 2008 39.64 24.36 230,378.45 2009 24.36 30.05 189,460.41 2010 30.05 33.71 170,861.66 2011 33.71 33.57 129,584.67 2012 33.57 37.96 49,357.05 MFS(R) Research International Investment Division (Class B)....................................... 2004 9.54 10.91 5,125.90 2005 10.91 12.44 34,818.55 2006 12.44 15.43 100,571.37 2007 15.43 17.12 130,882.39 2008 17.12 9.67 123,796.66 2009 9.67 12.46 73,850.73 2010 12.46 13.60 60,180.29 2011 13.60 11.90 34,739.71 2012 11.90 13.60 14,495.73 MFS(R) Total Return Investment Division (Class B). 2004 32.91 35.63 7,136.84 2005 35.63 35.91 15,395.59 2006 35.91 39.38 23,460.92 2007 39.38 40.16 18,778.62 2008 40.16 30.55 17,414.76 2009 30.55 35.41 13,646.39 2010 35.41 38.09 13,104.32 2011 38.09 38.13 6,109.91 2012 38.13 41.57 1,531.71 MFS(R) Value Investment Division (Class B)........ 2004 11.70 12.58 33,650.64 2005 12.58 12.12 52,694.28 2006 12.12 13.99 57,628.19 2007 13.99 13.15 58,647.41 2008 13.15 8.54 43,104.91 2009 8.54 10.09 44,248.19 2010 10.09 10.99 44,232.39 2011 10.99 10.84 31,785.71 2012 10.84 12.35 14,934.43 MLA Mid Cap Investment Division (formerly Lazard Mid Cap Investment Division) (Class B)....................................... 2004 12.35 13.28 1,554.45 2005 13.28 14.06 5,043.25 2006 14.06 15.80 13,929.55 2007 15.80 15.06 24,592.05 2008 15.06 9.10 22,649.02 2009 9.10 12.19 18,352.44 2010 12.19 14.68 14,904.55 2011 14.68 13.62 15,211.89 2012 13.62 14.05 8,935.83
372
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ MSCI EAFE(R) Index Investment Division (formerly Morgan Stanley EAFE(R) Index Investment Division) (Class B).................................... 2004 $ 9.22 $10.68 42,088.86 2005 10.68 11.82 115,824.71 2006 11.82 14.53 162,768.82 2007 14.53 15.73 196,764.63 2008 15.73 8.90 175,260.60 2009 8.90 11.19 113,379.18 2010 11.19 11.83 120,965.57 2011 11.83 10.13 99,290.99 2012 10.13 11.71 49,876.44 Morgan Stanley Mid Cap Growth Investment Division (Class B).............................................. 2010 11.81 13.66 37,431.27 2011 13.66 12.46 26,713.74 2012 12.46 13.34 17,175.14 Morgan Stanley Mid Cap Growth Investment Division (formerly FI Mid Cap Opportunities Investment Division (Class B))............................................. 2004 13.98 15.67 7,685.86 2005 15.67 16.38 28,226.20 2006 16.38 17.90 48,169.29 2007 17.90 18.96 66,933.00 2008 18.96 8.28 38,766.73 2009 8.28 10.83 33,038.61 2010 10.83 11.69 0.00 Neuberger Berman Genesis Investment Division (Class B)... 2004 15.71 17.60 22,485.39 2005 17.60 17.92 39,961.36 2006 17.92 20.44 53,557.14 2007 20.44 19.29 49,847.86 2008 19.29 11.61 35,599.46 2009 11.61 12.83 28,117.66 2010 12.83 15.25 27,113.12 2011 15.25 15.77 20,589.40 2012 15.77 16.95 8,252.77 Oppenheimer Global Equity Investment Division (Class B).. 2004 12.17 13.98 2,963.55 2005 13.98 15.88 19,528.45 2006 15.88 18.10 29,244.05 2007 18.10 18.85 43,874.41 2008 18.85 10.97 32,247.64 2009 10.97 15.03 35,006.22 2010 15.03 17.07 36,283.31 2011 17.07 15.32 29,824.08 2012 15.32 18.19 18,629.18
373
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ PIMCO Inflation Protected Bond Investment Division (Class B) (5/1/2006)..................................... 2006 $10.78 $10.84 5,469.12 2007 10.84 11.76 5,311.56 2008 11.76 10.73 57,322.14 2009 10.73 12.41 69,311.59 2010 12.41 13.10 66,501.36 2011 13.10 14.27 50,885.16 2012 14.27 15.25 40,821.09 PIMCO Total Return Investment Division (Class B)........... 2004 11.42 11.79 45,456.03 2005 11.79 11.81 135,902.74 2006 11.81 12.09 163,532.19 2007 12.09 12.74 161,242.07 2008 12.74 12.53 147,962.62 2009 12.53 14.49 150,182.39 2010 14.49 15.36 207,668.11 2011 15.36 15.52 175,720.58 2012 15.52 16.62 100,588.64 Pyramis(R) Government Income Investment Division (Class B) (4/30/2012).............................................. 2012 10.70 10.82 4,725.36 RCM Technology Investment Division (Class B)............... 2004 4.08 4.23 11,832.40 2005 4.23 4.60 45,030.73 2006 4.60 4.75 49,216.48 2007 4.75 6.12 156,069.56 2008 6.12 3.33 187,829.69 2009 3.33 5.18 274,215.52 2010 5.18 6.49 177,222.62 2011 6.49 5.72 128,984.56 2012 5.72 6.29 73,697.73 Russell 2000(R) Index Investment Division (Class B)........ 2004 12.99 14.81 15,022.63 2005 14.81 15.14 45,530.68 2006 15.14 17.44 85,433.02 2007 17.44 16.79 73,253.04 2008 16.79 10.91 89,176.91 2009 10.91 13.43 75,709.38 2010 13.43 16.66 53,609.77 2011 16.66 15.62 33,343.31 2012 15.62 17.76 21,512.18 Schroders Global Multi-Asset Investment Division (Class B) (4/30/2012).............................................. 2012 1.01 1.06 5,800.38 SSgA Growth ETF Investment Division (Class B) (5/1/2006)............................................... 2006 10.66 11.32 1,116.62 2007 11.32 11.71 9,251.51 2008 11.71 7.69 2,497.92 2009 7.69 9.73 11,764.84 2010 9.73 10.88 15,005.95 2011 10.88 10.43 23,889.08 2012 10.43 11.75 21,231.13
374
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ SSgA Growth and Income ETF Investment Division (Class B) (5/1/2006)............................................. 2006 $10.47 $11.07 368.82 2007 11.07 11.43 1,204.83 2008 11.43 8.39 1,549.97 2009 8.39 10.26 59,199.97 2010 10.26 11.29 356,694.86 2011 11.29 11.17 329,553.88 2012 11.17 12.35 312,475.42 T. Rowe Price Large Cap Growth Investment Division (Class B).............................................. 2004 10.77 11.62 13,151.70 2005 11.62 12.11 59,451.27 2006 12.11 13.39 93,429.50 2007 13.39 14.32 215,593.48 2008 14.32 8.13 140,747.99 2009 8.13 11.40 120,001.19 2010 11.40 13.04 113,534.95 2011 13.04 12.60 63,308.78 2012 12.60 14.65 37,466.91 T. Rowe Price Mid Cap Growth Investment Division (Class B).............................................. 2004 6.14 6.93 11,805.24 2005 6.93 7.79 57,596.89 2006 7.79 8.10 75,112.72 2007 8.10 9.34 248,347.21 2008 9.34 5.51 170,002.88 2009 5.51 7.85 169,838.19 2010 7.85 9.82 168,221.24 2011 9.82 9.47 134,850.19 2012 9.47 10.54 88,029.90 T. Rowe Price Small Cap Growth Investment Division (Class B).............................................. 2004 11.81 12.54 3,787.84 2005 12.54 13.60 8,539.46 2006 13.60 13.81 15,342.43 2007 13.81 14.82 42,107.58 2008 14.82 9.24 28,887.50 2009 9.24 12.56 40,836.65 2010 12.56 16.57 27,747.20 2011 16.57 16.47 26,835.49 2012 16.47 18.70 15,031.37 Western Asset Management Strategic Bond Opportunities Investment Division (Class B).......................... 2004 17.53 18.51 9,507.96 2005 18.51 18.60 40,716.61 2006 18.60 19.10 53,069.44 2007 19.10 19.41 49,253.62 2008 19.41 16.12 36,526.06 2009 16.12 20.83 32,152.18 2010 20.83 22.95 31,730.95 2011 22.95 23.79 22,681.08 2012 23.79 25.94 4,400.20
375
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Western Asset Management U.S Government Investment Division (Class B)................................... 2004 $ 14.49 $ 14.77 22,509.91 2005 14.77 14.68 65,572.52 2006 14.68 14.94 74,818.85 2007 14.94 15.23 76,127.14 2008 15.23 14.84 63,395.69 2009 14.84 15.13 60,525.75 2010 15.13 15.64 56,306.02 2011 15.64 16.13 33,008.38 2012 16.13 16.28 7,940.14 At 2.30 Separate Account Charge: American Funds Bond Investment Division (Class 2)/(e)/. 2006 13.67 14.26 36,187.80 2007 14.26 14.40 121,766.70 2008 14.40 12.75 61,754.00 2009 12.75 14.04 54,302.27 2010 14.04 14.60 52,010.18 2011 14.60 15.14 28,389.76 2012 15.14 15.59 24,789.04 American Funds Global Small Capitalization Investment Division (Class 2)................................... 2004 15.55 18.37 11,675.66 2005 18.37 22.51 67,533.92 2006 22.51 27.29 140,248.70 2007 27.29 32.39 222,178.57 2008 32.39 14.71 127,281.43 2009 14.71 23.18 137,244.23 2010 23.18 27.74 119,958.89 2011 27.74 21.92 89,152.02 2012 21.92 25.31 54,019.83 American Funds Growth Investment Division (Class 2).... 2004 96.47 106.05 8,870.53 2005 106.05 120.43 26,258.30 2006 120.43 129.73 42,023.84 2007 129.73 142.42 51,522.91 2008 142.42 77.97 39,102.27 2009 77.97 106.23 37,166.26 2010 106.23 123.21 29,959.77 2011 123.21 115.26 22,702.56 2012 115.26 132.78 12,128.00 American Funds Growth-Income Investment Division (Class 2)............................................ 2004 75.08 80.98 12,705.18 2005 80.98 83.76 28,987.83 2006 83.76 94.30 43,032.23 2007 94.30 96.80 44,628.03 2008 96.80 58.78 39,682.91 2009 58.78 75.40 36,089.45 2010 75.40 82.10 36,287.44 2011 82.10 78.77 26,286.99 2012 78.77 90.43 13,723.88
376 PREFERENCE PLUS SELECT DEFERRED ANNUITIES GROUP II 2.10 SEPARATE ACCOUNT CHARGE
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ AllianceBernstein Global Dynamic Allocation Investment Division (Class B) (4/30/2012).......................... 2012 $ 10.14 $ 10.44 0.00 American Funds(R) Balanced Allocation Investment Division (Class C) (4/28/2008)................................... 2008 10.00 6.97 47,614.07 2009 6.97 8.83 39,922.51 2010 8.83 9.70 62,515.56 2011 9.70 9.30 60,129.42 2012 9.30 10.33 58,058.54 American Funds Bond Investment Division+ (Class 2) (5/1/2006).............................................. 2006 13.73 14.33 0.00 2007 14.33 14.47 0.00 2008 14.47 12.83 0.00 2009 12.83 14.12 0.00 2010 14.12 14.70 0.00 2011 14.70 15.25 0.00 2012 15.25 15.71 0.00 American Funds Global Small Capitalization Investment Division+ (Class 2)..................................... 2003 10.39 15.60 0.00 2004 15.60 18.44 3,983.48 2005 18.44 22.60 1,531.76 2006 22.60 27.41 580.64 2007 27.41 32.54 2,094.91 2008 32.54 14.78 449.44 2009 14.78 23.32 371.54 2010 23.32 27.91 331.55 2011 27.91 22.07 382.89 2012 22.07 25.50 374.75 American Funds(R) Growth Allocation Investment Division (Class C) (4/28/2008)................................... 2008 9.99 6.32 264,309.74 2009 6.32 8.30 560,074.35 2010 8.30 9.23 390,952.72 2011 9.23 8.61 262,539.05 2012 8.61 9.79 207,904.55 American Funds Growth Investment Division+ (Class 2)...... 2003 72.84 97.44 0.00 2004 97.44 107.17 716.00 2005 107.17 121.76 366.58 2006 121.76 131.22 383.54 2007 131.22 144.13 181.86 2008 144.13 78.95 53.98 2009 78.95 107.61 52.06 2010 107.61 124.88 51.32 2011 124.88 116.88 52.53 2012 116.88 134.71 51.54
377
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ American Funds Growth-Income Investment Division+ (Class 2)................................................ 2003 $58.56 $75.83 0.00 2004 75.83 81.83 2,731.57 2005 81.83 84.68 2,592.29 2006 84.68 95.39 2,650.19 2007 95.39 97.96 2,551.11 2008 97.96 59.52 2,823.48 2009 59.52 76.38 2,818.47 2010 76.38 83.21 2,798.11 2011 83.21 79.88 3,144.00 2012 79.88 91.74 3,114.06 American Funds(R) Moderate Allocation Investment Division (Class C) (4/28/2008).................................... 2008 10.01 7.64 7,374.84 2009 7.64 9.24 17,147.38 2010 9.24 9.94 65,652.07 2011 9.94 9.75 69,926.04 2012 9.75 10.59 104,718.84 AQR Global Risk Balanced Investment Division (Class B) (4/30/2012).............................................. 2012 11.07 11.42 0.00 Baillie Gifford International Stock Investment Division (formerly Artio International Stock Investment Division) (Class B)................................................ 2004 10.79 12.26 139.27 2005 12.26 14.12 138.95 2006 14.12 16.08 135.73 2007 16.08 17.32 126.94 2008 17.32 9.46 0.00 2009 9.46 11.29 0.00 2010 11.29 11.81 0.54 2011 11.81 9.24 0.00 2012 9.24 10.80 0.00 Barclays Capital Aggregate Bond Index Investment Division (Class B)................................................ 2004 11.94 12.23 0.00 2005 12.23 12.20 17,152.87 2006 12.20 12.40 18,820.15 2007 12.40 12.95 18,095.98 2008 12.95 13.40 7,005.81 2009 13.40 13.77 5,987.41 2010 13.77 14.25 6,059.46 2011 14.25 14.98 5,800.43 2012 14.98 15.20 4,302.67 BlackRock Aggressive Growth Investment Division (Class B)................................................ 2004 30.00 33.11 0.00 2005 33.11 35.80 906.63 2006 35.80 37.33 1,717.70 2007 37.33 43.95 2,152.46 2008 43.95 23.30 524.83 2009 23.30 34.02 0.00 2010 34.02 38.31 0.41 2011 38.31 36.29 43.35 2012 36.29 39.34 0.00
378
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ BlackRock Bond Income Investment Division (Class B)...... 2004 $37.45 $38.62 0.00 2005 38.62 38.64 1,707.29 2006 38.64 39.40 3,968.47 2007 39.40 40.90 5,770.34 2008 40.90 38.58 2,016.02 2009 38.58 41.25 439.47 2010 41.25 43.65 433.45 2011 43.65 45.44 503.15 2012 45.44 47.73 395.43 BlackRock Diversified Investment Division (Class B)...... 2004 31.18 33.49 37.90 2005 33.49 33.72 115.93 2006 33.72 36.40 0.00 2007 36.40 37.64 0.00 2008 37.64 27.66 0.00 2009 27.66 31.69 0.00 2010 31.69 33.92 0.00 2011 33.92 34.41 0.00 2012 34.41 37.77 0.00 BlackRock Global Tactical Strategies Investment Division (Class B) (4/30/2012).................................. 2012 9.90 10.17 0.00 BlackRock Large Cap Core Investment Division* (Class B).............................................. 2007 66.08 66.34 0.00 2008 66.34 40.72 0.00 2009 40.72 47.53 0.00 2010 47.53 52.34 0.00 2011 52.34 51.38 0.00 2012 51.38 57.06 0.00 BlackRock Large Cap Investment Division (Class B)........ 2004 51.41 56.47 1,206.19 2005 56.47 57.13 1,641.74 2006 57.13 63.69 2,575.06 2007 63.69 66.64 0.00 BlackRock Large Cap Value Investment Division (Class B).. 2004 10.54 11.57 73.77 2005 11.57 11.96 10,342.95 2006 11.96 13.95 16,937.92 2007 13.95 14.09 21,653.73 2008 14.09 8.95 6,253.12 2009 8.95 9.73 0.00 2010 9.73 10.38 0.92 2011 10.38 10.38 603.54 2012 10.38 11.58 0.00 BlackRock Legacy Large Cap Growth Investment Division (Class B).............................................. 2004 21.70 23.66 0.00 2005 23.66 24.74 0.00 2006 24.74 25.17 0.00 2007 25.17 29.18 558.79 2008 29.18 18.09 447.79 2009 18.09 24.18 447.80 2010 24.18 28.29 450.70 2011 28.29 25.16 0.00 2012 25.16 28.11 0.00
379
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ BlackRock Legacy Large Cap Growth Investment Division--Class B (formerly FI Large Cap Investment Division (5/1/2006)). 2006 $15.97 $16.08 0.00 2007 16.08 16.33 0.00 2008 16.33 8.80 0.00 2009 8.80 9.14 0.00 BlackRock Money Market Investment Division (Class B)..... 2004 19.00 18.85 0.00 2005 18.85 18.94 0.00 2006 18.94 19.39 0.00 2007 19.39 19.90 0.00 2008 19.90 20.00 0.00 2009 20.00 19.63 0.00 2010 19.63 19.22 0.00 2011 19.22 18.82 0.00 2012 18.82 18.43 0.00 Clarion Global Real Estate Investment Division (Class B). 2004 9.99 12.77 3,857.04 2005 12.77 14.17 4,683.16 2006 14.17 19.09 12,290.30 2007 19.09 15.88 5,299.69 2008 15.88 9.07 4,943.29 2009 9.07 11.97 3,594.93 2010 11.97 13.61 3,241.36 2011 13.61 12.58 7,443.84 2012 12.58 15.52 6,441.63 Davis Venture Value Investment Division (Class B)........ 2004 26.73 28.63 29.67 2005 28.63 30.84 89.81 2006 30.84 34.53 1,027.06 2007 34.53 35.28 1,028.45 2008 35.28 20.89 1,465.55 2009 20.89 26.93 1,312.65 2010 26.93 29.46 466.02 2011 29.46 27.61 485.75 2012 27.61 30.45 479.28 FI Value Leaders Investment Division (Class B)........... 2004 21.30 23.91 35.71 2005 23.91 25.86 107.77 2006 25.86 28.28 0.00 2007 28.28 28.78 0.00 2008 28.78 17.16 0.00 2009 17.16 20.41 0.00 2010 20.41 22.84 0.00 2011 22.84 20.94 0.00 2012 20.94 23.68 0.00
380
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Harris Oakmark International Investment Division (Class B)............................................. 2004 $ 11.82 $ 13.65 713.03 2005 13.65 15.27 1,221.19 2006 15.27 19.27 1,221.28 2007 19.27 18.66 71.72 2008 18.66 10.80 43.46 2009 10.80 16.40 42.91 2010 16.40 18.70 27.69 2011 18.70 15.70 3,349.03 2012 15.70 19.87 3,215.01 Invesco Balanced-Risk Allocation Investment Division (Class B) (4/30/2012)................................. 2012 1.01 1.04 0.00 Invesco Small Cap Growth Investment Division (Class B).. 2004 11.16 11.90 0.00 2005 11.90 12.62 0.00 2006 12.62 14.11 0.00 2007 14.11 15.34 0.00 2008 15.34 9.20 0.00 2009 9.20 12.06 0.00 2010 12.06 14.90 0.00 2011 14.90 14.44 0.00 2012 14.44 16.71 0.00 Janus Forty Investment Division (Class B) (4/30/2007)... 2007 122.31 149.34 136.53 2008 149.34 84.81 488.38 2009 84.81 118.64 624.85 2010 118.64 127.10 538.98 2011 127.10 115.07 274.82 2012 115.07 138.03 266.96 Jennison Growth Investment Division (Class B)........... 2005 3.92 4.69 0.00 2006 4.69 4.71 0.00 2007 4.71 5.14 2,202.07 2008 5.14 3.19 0.00 2009 3.19 4.36 0.00 2010 4.36 4.76 7.02 2011 4.76 4.67 0.00 2012 4.67 5.28 0.00 Jennison Growth Investment Division (formerly Met/Putnam Voyager Investment Division) (Class B)............................................. 2004 4.10 4.26 0.00 2005 4.26 3.88 0.00 Jennison Growth Investment Division (formerly Oppenheimer Capital Appreciation Investment Division) (Class B) (5/1/2005)........................ 2005 7.71 8.33 0.00 2006 8.33 8.78 0.00 2007 8.78 9.83 1,159.87 2008 9.83 5.20 0.00 2009 5.20 7.32 0.00 2010 7.32 7.84 4.28 2011 7.84 7.57 0.00 2012 7.57 8.50 0.00
381
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ JPMorgan Global Active Allocation Investment Division (Class B) (4/30/2012).................................. 2012 $ 1.01 $ 1.04 0.00 Legg Mason ClearBridge Aggressive Growth Investment Division (Class B)..................................... 2004 6.45 6.98 0.00 2005 6.98 7.77 314.00 2006 7.77 7.47 0.00 2007 7.47 7.48 0.00 2008 7.48 4.46 0.00 2009 4.46 5.81 0.00 2010 5.81 7.05 0.00 2011 7.05 7.12 7,895.98 2012 7.12 8.27 7,600.61 Legg Mason ClearBridge Aggressive Growth Investment Division (formerly Legg Mason Value Equity Investment Division) (Class B).............................................. 2006 8.90 9.50 0.00 2007 9.50 8.75 0.00 2008 8.75 3.89 0.00 2009 3.89 5.25 0.00 2010 5.25 5.52 0.00 2011 5.52 5.86 0.00 Legg Mason Value Equity Investment Division (formerly MFS(R) Investors Trust Investment Division) (Class B).............................................. 2004 7.42 8.19 0.00 2005 8.19 8.57 0.00 2006 8.57 8.94 0.00 Loomis Sayles Small Cap Core Investment Division (Class B).............................................. 2004 21.83 24.62 0.00 2005 24.62 25.72 0.00 2006 25.72 29.32 0.00 2007 29.32 32.04 357.19 2008 32.04 20.06 0.00 2009 20.06 25.52 0.00 2010 25.52 31.79 1.04 2011 31.79 31.24 1,834.50 2012 31.24 34.95 1,765.87 Loomis Sayles Small Cap Growth Investment Division (Class B).............................................. 2004 8.62 9.50 0.00 2005 9.50 9.71 0.00 2006 9.71 10.44 0.00 2007 10.44 10.66 0.00 2008 10.66 6.12 0.00 2009 6.12 7.78 0.00 2010 7.78 10.01 0.00 2011 10.01 10.07 0.00 2012 10.07 10.93 0.00
382
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Lord Abbett Bond Debenture Investment Division (Class B)................................................ 2004 $15.08 $15.99 194.15 2005 15.99 15.89 1,569.35 2006 15.89 16.99 1,824.97 2007 16.99 17.72 1,760.56 2008 17.72 14.12 1,333.71 2009 14.12 18.92 968.24 2010 18.92 20.93 913.94 2011 20.93 21.41 3,485.91 2012 21.41 23.67 2,526.75 Lord Abbett Mid Cap Value Investment Division (Class B).... 2012 23.04 23.57 1,206.50 Lord Abbett Mid Cap Value Investment Division (Class B) (formerly Neuberger Berman Mid Cap Value Investment Division (Class B))...................................... 2004 17.86 20.73 644.70 2005 20.73 22.73 3,617.66 2006 22.73 24.75 7,218.03 2007 24.75 25.00 8,151.86 2008 25.00 12.86 5,546.49 2009 12.86 18.60 3,007.70 2010 18.60 22.96 1,561.34 2011 22.96 20.98 1,771.72 2012 20.98 23.15 0.00 Met/Artisan Mid Cap Value Investment Division (Class B).... 2004 27.88 30.12 19.81 2005 30.12 32.36 614.35 2006 32.36 35.54 0.00 2007 35.54 32.34 0.00 2008 32.34 17.05 0.00 2009 17.05 23.58 0.00 2010 23.58 26.50 0.00 2011 26.50 27.63 2,111.19 2012 27.63 30.19 2,032.21 Met/Franklin Income Investment Division (Class B) (4/28/2008).............................................. 2008 9.99 7.94 0.00 2009 7.94 9.94 0.00 2010 9.94 10.89 0.00 2011 10.89 10.89 5,188.27 2012 10.89 12.00 4,994.18 Met/Franklin Low Duration Total Return Investment Division (Class B) (5/2/2011)..................................... 2011 9.98 9.72 0.00 2012 9.72 9.93 0.00 Met/Franklin Mutual Shares Investment Division (Class B) (4/28/2008).............................................. 2008 9.99 6.56 0.00 2009 6.56 8.03 0.00 2010 8.03 8.73 0.00 2011 8.73 8.50 0.00 2012 8.50 9.48 0.00
383
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Met/Franklin Templeton Founding Strategy Investment Division (Class B) (4/28/2008)....................... 2008 $ 9.99 $ 6.99 0.00 2009 6.99 8.81 0.00 2010 8.81 9.49 0.00 2011 9.49 9.13 0.00 2012 9.13 10.38 0.00 Met/Templeton Growth Investment Division (Class B) (4/28/2008).......................................... 2008 9.99 6.53 0.00 2009 6.53 8.49 0.00 2010 8.49 8.95 0.00 2011 8.95 8.16 0.00 2012 8.16 9.76 0.00 MetLife Aggressive Strategy Investment Division........ 2011 11.65 9.93 0.00 2012 9.93 11.36 0.00 MetLife Aggressive Strategy Investment Division (formerly MetLife Aggressive Allocation Investment Division) (Class B).................................. 2005 9.99 11.09 2,742.80 2006 11.09 12.57 0.00 2007 12.57 12.70 0.00 2008 12.70 7.41 0.00 2009 7.41 9.54 0.00 2010 9.54 10.81 0.00 2011 10.81 11.69 0.00 MetLife Balanced Plus Investment Division (Class B) (4/30/2012).......................................... 2012 9.93 10.34 0.00 MetLife Conservative Allocation Investment Division (Class B) (5/1/2005)................................. 2005 9.99 10.25 0.00 2006 10.25 10.73 0.00 2007 10.73 11.09 0.00 2008 11.09 9.29 0.00 2009 9.29 10.97 21,274.88 2010 10.97 11.82 21,062.10 2011 11.82 11.95 20,837.13 2012 11.95 12.78 20,618.39 MetLife Conservative to Moderate Allocation Investment Division (Class B) (5/1/2005)........................ 2005 9.99 10.46 0.00 2006 10.46 11.21 0.00 2007 11.21 11.51 0.00 2008 11.51 8.83 0.00 2009 8.83 10.70 0.00 2010 10.70 11.68 0.00 2011 11.68 11.56 0.00 2012 11.56 12.62 0.00
384
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ MetLife Mid Cap Stock Index Investment Division (Class B)............................................... 2004 $11.34 $12.64 0.00 2005 12.64 13.87 3,578.62 2006 13.87 14.92 3,793.38 2007 14.92 15.70 3,549.77 2008 15.70 9.78 1,646.82 2009 9.78 13.10 1,124.85 2010 13.10 16.16 1,010.38 2011 16.16 15.48 994.35 2012 15.48 17.79 972.31 MetLife Moderate Allocation Investment Division (Class B) (5/1/2005).............................................. 2005 9.99 10.69 0.00 2006 10.69 11.71 0.00 2007 11.71 11.97 5,702.56 2008 11.97 8.36 9,014.94 2009 8.36 10.36 6,405.84 2010 10.36 11.48 24,130.62 2011 11.48 11.09 23,831.59 2012 11.09 12.29 23,538.04 MetLife Moderate to Aggressive Allocation Investment Division (Class B) (5/1/2005)........................... 2005 9.99 10.92 0.00 2006 10.92 12.21 122,649.10 2007 12.21 12.42 285,013.93 2008 12.42 7.89 219,933.07 2009 7.89 9.97 25,827.40 2010 9.97 11.20 53,265.28 2011 11.20 10.55 48,932.06 2012 10.55 11.92 48,480.95 MetLife Stock Index Investment Division (Class B)......... 2004 30.74 33.15 2,033.50 2005 33.15 33.89 17,800.73 2006 33.89 38.23 19,841.03 2007 38.23 39.29 16,756.46 2008 39.29 24.13 9,656.16 2009 24.13 29.76 7,687.22 2010 29.76 33.37 6,073.78 2011 33.37 33.21 5,948.06 2012 33.21 37.53 5,751.27 MFS(R) Research International Investment Division (Class B)............................................... 2004 9.52 10.89 0.00 2005 10.89 12.41 0.00 2006 12.41 15.38 1,083.08 2007 15.38 17.06 662.47 2008 17.06 9.63 740.42 2009 9.63 12.41 740.44 2010 12.41 13.53 743.75 2011 13.53 11.83 0.00 2012 11.83 13.52 0.00
385
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ MFS(R) Total Return Investment Division (Class B)... 2004 $32.63 $35.32 35.99 2005 35.32 35.57 109.42 2006 35.57 38.99 0.00 2007 38.99 39.75 0.00 2008 39.75 30.22 0.00 2009 30.22 35.01 0.00 2010 35.01 37.64 0.00 2011 37.64 37.66 0.00 2012 37.66 41.04 0.00 MFS(R) Value Investment Division (Class B).......... 2004 11.67 12.54 67.76 2005 12.54 12.08 1,589.42 2006 12.08 13.94 0.00 2007 13.94 13.09 0.00 2008 13.09 8.50 0.00 2009 8.50 10.04 0.00 2010 10.04 10.93 0.00 2011 10.93 10.77 0.00 2012 10.77 12.26 0.00 MLA Mid Cap Investment Division (formerly Lazard Mid Cap Investment Division) (Class B)......................................... 2004 12.33 13.26 0.00 2005 13.26 14.03 0.00 2006 14.03 15.76 0.00 2007 15.76 15.01 0.00 2008 15.01 9.07 0.00 2009 9.07 12.14 0.00 2010 12.14 14.61 0.00 2011 14.61 13.55 0.00 2012 13.55 13.97 0.00 MSCI EAFE(R) Index Investment Division (formerly Morgan Stanley EAFE(R) Index Investment Division) (Class B)............................... 2004 9.20 10.65 0.00 2005 10.65 11.78 12,256.93 2006 11.78 14.47 11,577.16 2007 14.47 15.66 10,251.52 2008 15.66 8.86 5,404.37 2009 8.86 11.13 3,775.22 2010 11.13 11.76 3,964.27 2011 11.76 10.06 4,494.63 2012 10.06 11.63 4,582.47 Morgan Stanley Mid Cap Growth Investment Division (Class B)......................................... 2010 11.73 13.57 0.00 2011 13.57 12.36 0.00 2012 12.36 13.23 0.00
386
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Morgan Stanley Mid Cap Growth Investment Division (formerly FI Mid Cap Opportunities Investment Division (Class B))............................................... 2004 $13.93 $15.61 0.00 2005 15.61 16.31 0.00 2006 16.31 17.82 0.00 2007 17.82 18.86 0.00 2008 18.86 8.23 0.00 2009 8.23 10.76 0.00 2010 10.76 11.62 0.00 Neuberger Berman Genesis Investment Division (Class B)..... 2004 15.68 17.56 0.00 2005 17.56 17.87 2,783.89 2006 17.87 20.38 6,882.97 2007 20.38 19.21 9,337.25 2008 19.21 11.56 2,431.13 2009 11.56 12.77 0.00 2010 12.77 15.17 4.22 2011 15.17 15.68 200.05 2012 15.68 16.85 0.00 Oppenheimer Global Equity Investment Division (Class B).... 2004 12.12 13.92 0.00 2005 13.92 15.81 0.00 2006 15.81 18.02 1,863.07 2007 18.02 18.74 2,569.65 2008 18.74 10.91 2,298.79 2009 10.91 14.93 1,505.41 2010 14.93 16.95 1,422.04 2011 16.95 15.21 4,968.61 2012 15.21 18.04 4,726.77 PIMCO Inflation Protected Bond Investment Division (Class B) (5/1/2006)..................................... 2006 10.76 10.82 0.00 2007 10.82 11.73 7,416.23 2008 11.73 10.70 12,387.87 2009 10.70 12.37 17,732.66 2010 12.37 13.05 18,000.47 2011 13.05 14.20 9,283.54 2012 14.20 15.18 8,983.71 PIMCO Total Return Investment Division (Class B)........... 2004 11.40 11.76 256.18 2005 11.76 11.78 5,554.35 2006 11.78 12.05 4,132.44 2007 12.05 12.70 11,696.20 2008 12.70 12.48 6,012.42 2009 12.48 14.43 5,933.71 2010 14.43 15.28 5,862.31 2011 15.28 15.44 4,708.68 2012 15.44 16.52 3,397.61 Pyramis(R) Government Income Investment Division (Class B) (4/30/2012).............................................. 2012 10.69 10.81 0.00
387
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ RCM Technology Investment Division (Class B)............... 2004 $ 4.07 $ 4.22 0.00 2005 4.22 4.59 0.00 2006 4.59 4.73 0.00 2007 4.73 6.10 0.00 2008 6.10 3.31 0.00 2009 3.31 5.16 0.00 2010 5.16 6.45 0.00 2011 6.45 5.69 0.00 2012 5.69 6.25 0.00 Russell 2000(R) Index Investment Division (Class B)........ 2004 12.96 14.77 0.00 2005 14.77 15.08 3,116.67 2006 15.08 17.37 3,428.33 2007 17.37 16.72 3,277.20 2008 16.72 10.85 1,471.65 2009 10.85 13.36 1,126.34 2010 13.36 16.56 997.02 2011 16.56 15.52 1,004.61 2012 15.52 17.63 997.02 Schroders Global Multi-Asset Investment Division (Class B) (4/30/2012).............................................. 2012 1.01 1.06 0.00 SSgA Growth ETF Investment Division (Class B) (5/1/2006)............................................... 2006 10.66 11.31 0.00 2007 11.31 11.70 0.00 2008 11.70 7.68 0.00 2009 7.68 9.70 0.00 2010 9.70 10.85 0.00 2011 10.85 10.40 0.00 2012 10.40 11.71 0.00 SSgA Growth and Income ETF Investment Division (Class B) (5/1/2006)............................................... 2006 10.47 11.06 0.00 2007 11.06 11.41 0.00 2008 11.41 8.37 0.00 2009 8.37 10.24 0.00 2010 10.24 11.26 0.00 2011 11.26 11.14 37,737.11 2012 11.14 12.31 37,303.12 T. Rowe Price Large Cap Growth Investment Division (Class B)................................................ 2004 10.74 11.59 433.80 2005 11.59 12.06 432.81 2006 12.06 13.34 422.78 2007 13.34 14.25 1,894.16 2008 14.25 8.09 2,481.73 2009 8.09 11.34 1,890.88 2010 11.34 12.96 1,656.13 2011 12.96 12.52 1,685.65 2012 12.52 14.55 1,502.93
388
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ T. Rowe Price Mid Cap Growth Investment Division (Class B)............................................ 2004 $ 6.13 $ 6.92 0.00 2005 6.92 7.77 0.00 2006 7.77 8.08 0.00 2007 8.08 9.30 1,236.93 2008 9.30 5.49 2,797.70 2009 5.49 7.82 2,797.65 2010 7.82 9.78 2,807.04 2011 9.78 9.42 0.00 2012 9.42 10.48 0.00 T. Rowe Price Small Cap Growth Investment Division (Class B)............................................ 2004 11.77 12.49 0.00 2005 12.49 13.54 0.00 2006 13.54 13.74 708.83 2007 13.74 14.74 622.70 2008 14.74 9.19 0.00 2009 9.19 12.48 0.00 2010 12.48 16.45 2.44 2011 16.45 16.34 0.00 2012 16.34 18.55 0.00 Western Asset Management Strategic Bond Opportunities Investment Division (Class B)........................ 2004 17.45 18.41 68.17 2005 18.41 18.50 2,314.70 2006 18.50 18.99 3,439.33 2007 18.99 19.28 3,399.31 2008 19.28 16.00 1,287.58 2009 16.00 20.67 449.12 2010 20.67 22.76 416.14 2011 22.76 23.59 451.21 2012 23.59 25.71 10.14 Western Asset Management U.S Government Investment Division (Class B)................................... 2004 14.42 14.70 2,762.32 2005 14.70 14.59 3,891.01 2006 14.59 14.85 8,170.01 2007 14.85 15.13 9,341.34 2008 15.13 14.73 3,470.67 2009 14.73 15.02 3,470.64 2010 15.02 15.51 3,473.07 2011 15.51 15.99 0.00 2012 15.99 16.13 0.00 At 2.35 Separate Account Charge: American Funds Bond Investment Division (Class 2)/(e)/. 2006 13.60 14.19 0.00 2007 14.19 14.32 0.00 2008 14.32 12.68 0.00 2009 12.68 13.95 0.00 2010 13.95 14.50 0.00 2011 14.50 15.03 0.00 2012 15.03 15.47 0.00
389
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ American Funds Global Small Capitalization Investment Division (Class 2).................................. 2004 $ 15.51 $ 18.31 462.94 2005 18.31 22.42 4,532.06 2006 22.42 27.18 8,615.18 2007 27.18 32.23 7,786.42 2008 32.23 14.63 5,308.11 2009 14.63 23.05 3,143.57 2010 23.05 27.56 2,048.82 2011 27.56 21.77 1,436.29 2012 21.77 25.12 589.52 American Funds Growth Investment Division (Class 2)... 2004 95.52 104.95 0.00 2005 104.95 119.12 1,325.80 2006 119.12 128.25 2,338.09 2007 128.25 140.72 2,813.31 2008 140.72 77.00 1,369.59 2009 77.00 104.86 719.70 2010 104.86 121.56 480.98 2011 121.56 113.67 431.78 2012 113.67 130.88 111.47 American Funds Growth-Income Investment Division (Class 2)........................................... 2004 74.33 80.14 87.74 2005 80.14 82.85 817.58 2006 82.85 93.23 976.49 2007 93.23 95.65 949.08 2008 95.65 58.06 944.98 2009 58.06 74.43 866.30 2010 74.43 81.01 539.47 2011 81.01 77.68 520.88 2012 77.68 89.13 165.24
390 PREFERENCE PLUS SELECT DEFERRED ANNUITIES GROUP II 2.15 SEPARATE ACCOUNT CHARGE
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ AllianceBernstein Global Dynamic Allocation Investment Division (Class B) (4/30/2012).......................... 2012 $ 10.14 $ 10.43 2,480.83 American Funds(R) Balanced Allocation Investment Division (Class C) (4/28/2008)................................... 2008 10.00 6.97 0.00 2009 6.97 8.82 170.56 2010 8.82 9.69 3.43 2011 9.69 9.28 0.00 2012 9.28 10.31 0.00 American Funds Bond Investment Division+ (Class 2) (5/1/2006).............................................. 2006 13.67 14.26 1,871.50 2007 14.26 14.40 9,055.63 2008 14.40 12.75 0.00 2009 12.75 14.04 0.00 2010 14.04 14.60 107.27 2011 14.60 15.14 7,703.24 2012 15.14 15.59 0.00 American Funds Global Small Capitalization Investment Division+ (Class 2)..................................... 2003 10.36 15.55 2,826.25 2004 15.55 18.37 8,233.81 2005 18.37 22.51 10,408.87 2006 22.51 27.29 10,006.16 2007 27.29 32.39 11,559.57 2008 32.39 14.71 7,460.49 2009 14.71 23.18 4,904.52 2010 23.18 27.74 4,304.56 2011 27.74 21.92 2,906.26 2012 21.92 25.31 2,573.18 American Funds(R) Growth Allocation Investment Division (Class C) (4/28/2008)................................... 2008 9.99 6.32 4,448.73 2009 6.32 8.30 3,446.38 2010 8.30 9.21 3,455.22 2011 9.21 8.59 3,446.41 2012 8.59 9.77 3,446.41 American Funds Growth Investment Division+ (Class 2)...... 2003 72.12 96.42 1,763.09 2004 96.42 106.00 6,382.60 2005 106.00 120.37 4,184.29 2006 120.37 129.66 4,691.87 2007 129.66 142.35 4,374.86 2008 142.35 77.93 2,860.94 2009 77.93 106.18 1,819.93 2010 106.18 123.15 1,618.60 2011 123.15 115.21 722.06 2012 115.21 132.72 734.35
391
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ American Funds Growth-Income Investment Division+ (Class 2)................................................ 2003 $57.98 $75.04 1,645.67 2004 75.04 80.94 3,961.92 2005 80.94 83.72 5,156.55 2006 83.72 94.26 3,541.86 2007 94.26 96.75 4,096.76 2008 96.75 58.75 2,227.45 2009 58.75 75.36 1,969.58 2010 75.36 82.06 993.77 2011 82.06 78.73 743.23 2012 78.73 90.38 1,027.89 American Funds(R) Moderate Allocation Investment Division (Class C) (4/28/2008).................................... 2008 10.01 7.64 0.00 2009 7.64 9.23 0.00 2010 9.23 9.93 3.42 2011 9.93 9.74 0.00 2012 9.74 10.56 0.00 AQR Global Risk Balanced Investment Division (Class B) (4/30/2012).............................................. 2012 11.06 11.41 2,237.63 Baillie Gifford International Stock Investment Division (formerly Artio International Stock Investment Division) (Class B)................................................ 2004 10.72 12.18 1,185.09 2005 12.18 14.02 6,521.01 2006 14.02 15.95 6,632.18 2007 15.95 17.18 7,330.52 2008 17.18 9.37 4,167.26 2009 9.37 11.18 2,362.00 2010 11.18 11.70 2,357.24 2011 11.70 9.14 265.34 2012 9.14 10.68 264.92 Barclays Capital Aggregate Bond Index Investment Division (Class B)................................................ 2004 11.90 12.19 7,253.18 2005 12.19 12.16 8,368.75 2006 12.16 12.35 5,145.51 2007 12.35 12.89 5,902.09 2008 12.89 13.33 5,617.96 2009 13.33 13.70 6,438.43 2010 13.70 14.17 6,117.02 2011 14.17 14.88 0.00 2012 14.88 15.09 0.00 BlackRock Aggressive Growth Investment Division (Class B)................................................ 2004 29.76 32.83 0.00 2005 32.83 35.49 0.00 2006 35.49 36.98 0.00 2007 36.98 43.52 76.67 2008 43.52 23.06 133.12 2009 23.06 33.65 1,316.38 2010 33.65 37.87 1,317.37 2011 37.87 35.87 1,239.23 2012 35.87 38.85 1,263.19
392
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ BlackRock Bond Income Investment Division (Class B)...... 2004 $37.07 $38.21 2,768.23 2005 38.21 38.21 1,917.22 2006 38.21 38.94 2,114.21 2007 38.94 40.41 2,311.88 2008 40.41 38.09 2,079.75 2009 38.09 40.71 2,004.55 2010 40.71 43.06 1,986.99 2011 43.06 44.80 18.35 2012 44.80 47.04 19.19 BlackRock Diversified Investment Division (Class B)...... 2004 30.90 33.18 0.00 2005 33.18 33.39 0.00 2006 33.39 36.03 0.00 2007 36.03 37.24 601.14 2008 37.24 27.35 596.84 2009 27.35 31.32 591.90 2010 31.32 33.51 590.17 2011 33.51 33.97 584.81 2012 33.97 37.27 581.40 BlackRock Global Tactical Strategies Investment Division (Class B) (4/30/2012).................................. 2012 9.89 10.16 2,544.69 BlackRock Large Cap Core Investment Division* (Class B).............................................. 2007 65.30 65.53 422.54 2008 65.53 40.20 394.51 2009 40.20 46.90 30.72 2010 46.90 51.62 31.68 2011 51.62 50.65 0.00 2012 50.65 56.22 0.00 BlackRock Large Cap Investment Division (Class B)........ 2004 50.88 55.87 31.72 2005 55.87 56.49 31.52 2006 56.49 31.33 62.95 2007 31.33 65.85 0.00 BlackRock Large Cap Value Investment Division (Class B).. 2004 10.53 11.56 0.00 2005 11.56 11.94 0.00 2006 11.94 13.92 4,445.25 2007 13.92 14.05 4,685.58 2008 14.05 8.92 4,444.82 2009 8.92 9.70 4,229.14 2010 9.70 10.34 4,232.58 2011 10.34 10.33 0.00 2012 10.33 11.52 0.00 BlackRock Legacy Large Cap Growth Investment Division (Class B).............................................. 2004 21.59 23.54 0.00 2005 23.54 24.60 0.00 2006 24.60 25.01 0.00 2007 25.01 28.99 724.68 2008 28.99 17.96 782.39 2009 17.96 24.00 776.94 2010 24.00 28.06 84.22 2011 28.06 24.95 2,429.80 2012 24.95 27.85 2,429.68
393
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ BlackRock Legacy Large Cap Growth Investment Division-- Class B (formerly FI Large Cap Investment Division (5/1/2006)). 2006 $15.89 $16.00 0.00 2007 16.00 16.24 0.00 2008 16.24 8.74 0.00 2009 8.74 9.09 0.00 BlackRock Money Market Investment Division (Class B)..... 2004 18.81 18.65 0.00 2005 18.65 18.73 0.00 2006 18.73 19.17 0.00 2007 19.17 19.66 0.00 2008 19.66 19.74 592.07 2009 19.74 19.37 591.41 2010 19.37 18.96 593.92 2011 18.96 18.56 590.14 2012 18.56 18.16 589.55 Clarion Global Real Estate Investment Division (Class B). 2004 9.99 12.76 6,313.11 2005 12.76 14.15 15,657.67 2006 14.15 19.06 14,390.26 2007 19.06 15.85 15,054.80 2008 15.85 9.05 9,491.92 2009 9.05 11.93 8,879.19 2010 11.93 13.56 8,805.01 2011 13.56 12.53 3,125.28 2012 12.53 15.45 3,232.95 Davis Venture Value Investment Division (Class B)........ 2004 26.60 28.49 629.82 2005 28.49 30.67 3,898.38 2006 30.67 34.32 4,076.30 2007 34.32 35.04 3,126.24 2008 35.04 20.74 2,324.40 2009 20.74 26.72 2,815.91 2010 26.72 29.22 3,240.32 2011 29.22 27.38 2,280.38 2012 27.38 30.17 1,603.64 FI Value Leaders Investment Division (Class B)........... 2004 21.18 23.78 753.43 2005 23.78 25.70 2,653.54 2006 25.70 28.09 2,870.31 2007 28.09 28.57 1,557.81 2008 28.57 17.02 1,647.52 2009 17.02 20.24 1,726.46 2010 20.24 22.64 1,730.81 2011 22.64 20.75 787.04 2012 20.75 23.45 782.73
394
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Harris Oakmark International Investment Division (Class B)............................................. 2004 $ 11.80 $ 13.63 2,368.65 2005 13.63 15.24 2,653.09 2006 15.24 19.22 9,277.08 2007 19.22 18.60 10,095.38 2008 18.60 10.76 8,915.70 2009 10.76 16.33 9,147.99 2010 16.33 18.61 9,112.23 2011 18.61 15.62 7,622.35 2012 15.62 19.75 229.39 Invesco Balanced-Risk Allocation Investment Division (Class B) (4/30/2012)................................. 2012 1.01 1.04 0.00 Invesco Small Cap Growth Investment Division (Class B).. 2004 11.14 11.88 2,324.91 2005 11.88 12.59 1,686.31 2006 12.59 14.07 1,188.29 2007 14.07 15.29 1,154.10 2008 15.29 9.17 1,234.86 2009 9.17 12.01 1,220.13 2010 12.01 14.83 1,175.64 2011 14.83 14.36 0.00 2012 14.36 16.62 0.00 Janus Forty Investment Division (Class B) (4/30/2007)... 2007 120.78 147.43 234.65 2008 147.43 83.68 1,121.71 2009 83.68 117.00 1,852.07 2010 117.00 125.28 1,150.41 2011 125.28 113.37 631.75 2012 113.37 135.92 972.30 Jennison Growth Investment Division (Class B)........... 2005 3.91 4.68 1,088.48 2006 4.68 4.70 1,293.36 2007 4.70 5.12 6,035.81 2008 5.12 3.18 0.00 2009 3.18 4.34 9,356.03 2010 4.34 4.73 9,369.80 2011 4.73 4.64 9,472.23 2012 4.64 5.25 0.00 Jennison Growth Investment Division (formerly Met/Putnam Voyager Investment Division) (Class B)............................................. 2004 4.10 4.25 1,445.15 2005 4.25 3.87 1,462.74 Jennison Growth Investment Division (formerly Oppenheimer Capital Appreciation Investment Division) (Class B) (5/1/2005)........................ 2005 7.70 8.31 0.00 2006 8.31 8.76 0.00 2007 8.76 9.80 247.88 2008 9.80 5.18 613.84 2009 5.18 7.29 611.27 2010 7.29 7.80 617.52 2011 7.80 7.53 0.00 2012 7.53 8.45 0.00
395
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ JPMorgan Global Active Allocation Investment Division (Class B) (4/30/2012).................................. 2012 $ 1.01 $ 1.04 0.00 Legg Mason ClearBridge Aggressive Growth Investment Division (Class B)..................................... 2004 6.44 6.97 897.70 2005 6.97 7.75 668.32 2006 7.75 7.45 1,660.30 2007 7.45 7.46 697.13 2008 7.46 4.45 0.00 2009 4.45 5.79 0.00 2010 5.79 7.01 4.50 2011 7.01 7.09 0.00 2012 7.09 8.22 0.00 Legg Mason ClearBridge Aggressive Growth Investment Division (formerly Legg Mason Value Equity Investment Division) (Class B).............................................. 2006 8.87 9.46 0.00 2007 9.46 8.71 0.00 2008 8.71 3.87 0.00 2009 3.87 5.22 0.00 2010 5.22 5.49 0.00 2011 5.49 5.82 0.00 Legg Mason Value Equity Investment Division (formerly MFS(R) Investors Trust Investment Division) (Class B).............................................. 2004 7.40 8.16 0.00 2005 8.16 8.54 5,906.22 2006 8.54 8.91 5,906.22 Loomis Sayles Small Cap Core Investment Division (Class B).............................................. 2004 21.72 24.49 0.00 2005 24.49 25.57 22.83 2006 25.57 29.13 4,380.90 2007 29.13 31.82 3,455.47 2008 31.82 19.91 2,353.46 2009 19.91 25.32 632.26 2010 25.32 31.53 624.86 2011 31.53 30.96 68.25 2012 30.96 34.63 1,446.16 Loomis Sayles Small Cap Growth Investment Division (Class B).............................................. 2004 8.61 9.49 2,009.35 2005 9.49 9.69 2,072.58 2006 9.69 10.41 4,732.51 2007 10.41 10.63 4,682.46 2008 10.63 6.10 3,410.58 2009 6.10 7.74 3,805.69 2010 7.74 9.96 3,518.46 2011 9.96 10.01 1,965.71 2012 10.01 10.87 1,983.89
396
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Lord Abbett Bond Debenture Investment Division (Class B)................................................ 2004 $15.02 $15.92 892.85 2005 15.92 15.82 1,493.79 2006 15.82 16.90 7,224.03 2007 16.90 17.62 9,642.63 2008 17.62 14.03 8,507.62 2009 14.03 18.79 6,525.51 2010 18.79 20.77 12,010.08 2011 20.77 21.24 5,492.19 2012 21.24 23.48 525.47 Lord Abbett Mid Cap Value Investment Division (Class B).... 2012 22.88 23.41 0.00 Lord Abbett Mid Cap Value Investment Division (Class B) (formerly Neuberger Berman Mid Cap Value Investment Division (Class B))...................................... 2004 17.81 20.67 756.21 2005 20.67 22.65 3,021.80 2006 22.65 24.65 6,181.13 2007 24.65 24.89 8,442.22 2008 24.89 12.79 6,512.16 2009 12.79 18.50 8,349.62 2010 18.50 22.82 9,169.37 2011 22.82 20.85 7,051.81 2012 20.85 23.00 0.00 Met/Artisan Mid Cap Value Investment Division (Class B).... 2004 27.73 29.94 1,714.93 2005 29.94 32.15 6,004.94 2006 32.15 35.30 7,618.24 2007 35.30 32.10 5,771.27 2008 32.10 16.92 5,514.14 2009 16.92 23.38 5,504.89 2010 23.38 26.27 5,136.67 2011 26.27 27.38 4,304.28 2012 27.38 29.90 40.42 Met/Franklin Income Investment Division (Class B) (4/28/2008).............................................. 2008 9.99 7.94 0.00 2009 7.94 9.94 0.00 2010 9.94 10.87 0.44 2011 10.87 10.87 0.00 2012 10.87 11.97 0.00 Met/Franklin Low Duration Total Return Investment Division (Class B) (5/2/2011)..................................... 2011 9.98 9.71 0.00 2012 9.71 9.92 0.00 Met/Franklin Mutual Shares Investment Division (Class B) (4/28/2008).............................................. 2008 9.99 6.56 0.00 2009 6.56 8.02 0.00 2010 8.02 8.72 661.15 2011 8.72 8.48 623.45 2012 8.48 9.46 592.69
397
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Met/Franklin Templeton Founding Strategy Investment Division (Class B) (4/28/2008)....................... 2008 $ 9.99 $ 6.99 0.00 2009 6.99 8.80 198.66 2010 8.80 9.48 2.10 2011 9.48 9.11 0.00 2012 9.11 10.36 0.00 Met/Templeton Growth Investment Division (Class B) (4/28/2008).......................................... 2008 9.99 6.53 0.00 2009 6.53 8.48 0.00 2010 8.48 8.93 0.00 2011 8.93 8.14 0.00 2012 8.14 9.74 0.00 MetLife Aggressive Strategy Investment Division........ 2011 11.62 9.90 4,205.52 2012 9.90 11.31 0.00 MetLife Aggressive Strategy Investment Division (formerly MetLife Aggressive Allocation Investment Division) (Class B).................................. 2005 9.99 11.09 0.00 2006 11.09 12.55 0.00 2007 12.55 12.69 0.00 2008 12.69 7.39 0.00 2009 7.39 9.51 815.66 2010 9.51 10.77 4.28 2011 10.77 11.66 0.00 MetLife Balanced Plus Investment Division (Class B) (4/30/2012).......................................... 2012 9.92 10.33 2,525.77 MetLife Conservative Allocation Investment Division (Class B) (5/1/2005)................................. 2005 9.99 10.24 0.00 2006 10.24 10.72 0.00 2007 10.72 11.07 20,186.61 2008 11.07 9.28 0.00 2009 9.28 10.94 3,778.70 2010 10.94 11.79 3,780.49 2011 11.79 11.91 3,773.57 2012 11.91 12.73 3,771.14 MetLife Conservative to Moderate Allocation Investment Division (Class B) (5/1/2005)........................ 2005 9.99 10.46 0.00 2006 10.46 11.20 20,804.20 2007 11.20 11.49 19,354.68 2008 11.49 8.82 19,521.36 2009 8.82 10.67 1,874.49 2010 10.67 11.65 1,880.58 2011 11.65 11.52 1,874.46 2012 11.52 12.57 1,874.46
398
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ MetLife Mid Cap Stock Index Investment Division (Class B)............................................... 2004 $11.32 $12.61 1,546.17 2005 12.61 13.83 1,808.87 2006 13.83 14.87 1,780.50 2007 14.87 15.64 1,864.19 2008 15.64 9.74 4,056.11 2009 9.74 13.04 3,153.36 2010 13.04 16.08 3,790.91 2011 16.08 15.39 536.80 2012 15.39 17.68 3,224.63 MetLife Moderate Allocation Investment Division (Class B) (5/1/2005).............................................. 2005 9.99 10.69 24,549.58 2006 10.69 11.70 26,232.94 2007 11.70 11.95 36,428.33 2008 11.95 8.34 13,858.43 2009 8.34 10.33 16,629.14 2010 10.33 11.45 9,253.92 2011 11.45 11.05 13,230.64 2012 11.05 12.25 12,773.81 MetLife Moderate to Aggressive Allocation Investment Division (Class B) (5/1/2005)........................... 2005 9.99 10.91 0.00 2006 10.91 12.20 0.00 2007 12.20 12.40 64,118.47 2008 12.40 7.87 14,303.82 2009 7.87 9.95 14,392.89 2010 9.95 11.17 14,466.03 2011 11.17 10.52 14,524.33 2012 10.52 11.88 5,736.71 MetLife Stock Index Investment Division (Class B)......... 2004 30.52 32.91 3,799.27 2005 32.91 33.62 7,968.09 2006 33.62 37.91 5,152.94 2007 37.91 38.94 3,816.74 2008 38.94 23.91 3,839.97 2009 23.91 29.47 4,106.43 2010 29.47 33.02 3,233.81 2011 33.02 32.85 0.00 2012 32.85 37.11 0.00 MFS(R) Research International Investment Division (Class B)............................................... 2004 9.51 10.86 3,570.06 2005 10.86 12.38 3,564.79 2006 12.38 15.34 10,387.44 2007 15.34 17.01 14,044.91 2008 17.01 9.59 8,504.57 2009 9.59 12.35 8,700.89 2010 12.35 13.47 4,491.87 2011 13.47 11.77 684.01 2012 11.77 13.44 180.10
399
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ MFS(R) Total Return Investment Division (Class B)... 2004 $32.35 $35.01 882.32 2005 35.01 35.24 3,087.82 2006 35.24 38.61 4,528.37 2007 38.61 39.34 5,773.91 2008 39.34 29.90 4,461.81 2009 29.90 34.62 4,451.71 2010 34.62 37.20 2,286.08 2011 37.20 37.20 173.39 2012 37.20 40.52 24.74 MFS(R) Value Investment Division (Class B).......... 2004 11.64 12.50 3,329.01 2005 12.50 12.03 3,250.72 2006 12.03 13.88 7,418.87 2007 13.88 13.03 7,428.35 2008 13.03 8.46 5,328.48 2009 8.46 9.98 5,757.66 2010 9.98 10.86 5,621.98 2011 10.86 10.70 145.12 2012 10.70 12.18 13,998.49 MLA Mid Cap Investment Division (formerly Lazard Mid Cap Investment Division) (Class B)......................................... 2004 12.32 13.24 288.66 2005 13.24 14.00 466.97 2006 14.00 15.72 3,759.00 2007 15.72 14.96 320.43 2008 14.96 9.03 355.46 2009 9.03 12.09 332.07 2010 12.09 14.54 303.03 2011 14.54 13.48 0.00 2012 13.48 13.89 0.00 MSCI EAFE(R) Index Investment Division (formerly Morgan Stanley EAFE(R) Index Investment Division) (Class B)............................... 2004 9.17 10.62 3,153.72 2005 10.62 11.73 5,763.70 2006 11.73 14.41 6,628.52 2007 14.41 15.59 10,001.53 2008 15.59 8.81 9,724.14 2009 8.81 11.07 9,961.94 2010 11.07 11.69 9,051.96 2011 11.69 9.99 4,361.82 2012 9.99 11.54 394.12 Morgan Stanley Mid Cap Growth Investment Division (Class B)......................................... 2010 11.66 13.47 3,229.13 2011 13.47 12.27 110.43 2012 12.27 13.13 3,716.18
400
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Morgan Stanley Mid Cap Growth Investment Division (formerly FI Mid Cap Opportunities Investment Division (Class B))............................................... 2004 $13.88 $15.55 2,350.77 2005 15.55 16.24 5,857.29 2006 16.24 17.73 9,926.05 2007 17.73 18.76 6,203.77 2008 18.76 8.18 3,796.56 2009 8.18 10.69 110.80 2010 10.69 11.54 0.00 Neuberger Berman Genesis Investment Division (Class B)..... 2004 15.65 17.52 4,359.43 2005 17.52 17.82 12,692.69 2006 17.82 20.31 7,473.56 2007 20.31 19.14 5,884.16 2008 19.14 11.51 3,872.47 2009 11.51 12.71 1,361.93 2010 12.71 15.09 752.03 2011 15.09 15.59 378.87 2012 15.59 16.74 0.00 Oppenheimer Global Equity Investment Division (Class B).... 2004 12.08 13.87 423.49 2005 13.87 15.74 422.96 2006 15.74 17.93 3,112.03 2007 17.93 18.64 3,673.72 2008 18.64 10.84 4,441.44 2009 10.84 14.84 4,621.79 2010 14.84 16.84 5,002.18 2011 16.84 15.09 3,453.21 2012 15.09 17.90 1,193.23 PIMCO Inflation Protected Bond Investment Division (Class B) (5/1/2006)..................................... 2006 10.75 10.80 0.00 2007 10.80 11.71 5,069.28 2008 11.71 10.67 22,376.85 2009 10.67 12.33 6,319.82 2010 12.33 13.00 5,958.15 2011 13.00 14.14 6,516.18 2012 14.14 15.10 38,689.81 PIMCO Total Return Investment Division (Class B)........... 2004 11.38 11.74 7,647.29 2005 11.74 11.75 11,741.69 2006 11.75 12.02 11,482.64 2007 12.02 12.65 10,848.00 2008 12.65 12.43 7,441.22 2009 12.43 14.36 36,761.24 2010 14.36 15.21 35,756.21 2011 15.21 15.36 25,419.26 2012 15.36 16.42 20,762.62 Pyramis(R) Government Income Investment Division (Class B) (4/30/2012).............................................. 2012 10.69 10.80 2,222.39
401
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ RCM Technology Investment Division (Class B)............... 2004 $ 4.06 $ 4.21 0.00 2005 4.21 4.58 0.00 2006 4.58 4.72 410.94 2007 4.72 6.07 411.12 2008 6.07 3.30 1,692.98 2009 3.30 5.14 1,689.56 2010 5.14 6.42 2,379.91 2011 6.42 5.66 1,684.37 2012 5.66 6.21 1,681.84 Russell 2000(R) Index Investment Division (Class B)........ 2004 12.92 14.72 982.17 2005 14.72 15.03 1,835.32 2006 15.03 17.30 5,663.46 2007 17.30 16.64 5,932.50 2008 16.64 10.80 6,290.14 2009 10.80 13.28 6,808.57 2010 13.28 16.46 6,782.98 2011 16.46 15.42 317.02 2012 15.42 17.51 0.00 Schroders Global Multi-Asset Investment Division (Class B) (4/30/2012).............................................. 2012 1.01 1.06 0.00 SSgA Growth ETF Investment Division (Class B) (5/1/2006)............................................... 2006 10.65 11.30 535.12 2007 11.30 11.68 701.26 2008 11.68 7.66 603.34 2009 7.66 9.68 633.89 2010 9.68 10.82 653.61 2011 10.82 10.37 615.52 2012 10.37 11.67 615.65 SSgA Growth and Income ETF Investment Division (Class B) (5/1/2006)............................................... 2006 10.46 11.05 0.00 2007 11.05 11.40 0.00 2008 11.40 8.36 0.00 2009 8.36 10.22 0.00 2010 10.22 11.23 9,603.71 2011 11.23 11.10 9,600.48 2012 11.10 12.26 0.00 T. Rowe Price Large Cap Growth Investment Division (Class B)................................................ 2004 10.71 11.55 3,366.81 2005 11.55 12.02 3,614.98 2006 12.02 13.28 2,019.19 2007 13.28 14.19 2,956.12 2008 14.19 8.05 1,172.77 2009 8.05 11.27 1,548.19 2010 11.27 12.88 1,543.28 2011 12.88 12.44 777.97 2012 12.44 14.45 773.44
402
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ T. Rowe Price Mid Cap Growth Investment Division (Class B)............................................ 2004 $ 6.12 $ 6.91 5,362.07 2005 6.91 7.75 5,262.26 2006 7.75 8.05 3,714.93 2007 8.05 9.27 21,759.71 2008 9.27 5.46 14,447.13 2009 5.46 7.78 19,265.38 2010 7.78 9.73 11,046.08 2011 9.73 9.36 4,578.85 2012 9.36 10.42 3,867.30 T. Rowe Price Small Cap Growth Investment Division (Class B)............................................ 2004 11.73 12.44 1,004.51 2005 12.44 13.48 9,411.02 2006 13.48 13.68 11,389.90 2007 13.68 14.66 15,229.88 2008 14.66 9.13 11,823.27 2009 9.13 12.40 10,745.82 2010 12.40 16.34 8,544.78 2011 16.34 16.22 5,394.50 2012 16.22 18.40 131.28 Western Asset Management Strategic Bond Opportunities Investment Division (Class B)........................ 2004 17.37 18.32 17,504.30 2005 18.32 18.39 12,141.99 2006 18.39 18.87 4,495.73 2007 18.87 19.15 9,436.63 2008 19.15 15.89 6,559.08 2009 15.89 20.51 3,775.82 2010 20.51 22.58 8,229.08 2011 22.58 23.39 6,404.81 2012 23.39 25.47 0.00 Western Asset Management U.S Government Investment Division (Class B)................................... 2004 14.35 14.62 2,319.32 2005 14.62 14.51 1,648.13 2006 14.51 14.76 1,399.34 2007 14.76 15.03 6,413.77 2008 15.03 14.63 3,913.44 2009 14.63 14.90 3,826.92 2010 14.90 15.39 9,962.75 2011 15.39 15.85 6,137.47 2012 15.85 15.99 0.00 At 2.40 Separate Account Charge: American Funds Bond Investment Division (Class 2)/(e)/. 2006 13.54 14.12 269.62 2007 14.12 14.24 6,467.02 2008 14.24 12.61 4,729.76 2009 12.61 13.86 2,563.34 2010 13.86 14.40 3,334.95 2011 14.40 14.92 110.01 2012 14.92 15.35 117.07
403
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ American Funds Global Small Capitalization Investment Division (Class 2).................................. 2004 $ 15.47 $ 18.25 4,536.96 2005 18.25 22.34 6,321.99 2006 22.34 27.06 11,627.03 2007 27.06 32.07 15,174.30 2008 32.07 14.55 12,056.33 2009 14.55 22.91 12,276.77 2010 22.91 27.39 9,767.04 2011 27.39 21.62 6,193.42 2012 21.62 24.94 2,778.10 American Funds Growth Investment Division (Class 2)... 2004 94.57 103.86 1,088.90 2005 103.86 117.82 2,232.58 2006 117.82 126.79 3,651.93 2007 126.79 139.05 5,257.43 2008 139.05 76.05 5,105.89 2009 76.05 103.51 5,079.17 2010 103.51 119.94 4,406.96 2011 119.94 112.09 2,312.04 2012 112.09 129.00 1,455.43 American Funds Growth-Income Investment Division (Class 2)........................................... 2004 73.60 79.30 2,841.92 2005 79.30 81.94 4,981.05 2006 81.94 92.17 5,563.51 2007 92.17 94.51 5,912.75 2008 94.51 57.34 5,355.24 2009 57.34 73.47 3,607.10 2010 73.47 79.92 3,493.34 2011 79.92 76.60 1,281.31 2012 76.60 87.85 949.66
404 PREFERENCE PLUS SELECT DEFERRED ANNUITIES GROUP II 2.25 SEPARATE ACCOUNT CHARGE
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ AllianceBernstein Global Dynamic Allocation Investment Division (Class B) (4/30/2012).......................... 2012 $ 10.13 $ 10.41 0.00 American Funds(R) Balanced Allocation Investment Division (Class C) (4/28/2008)................................... 2008 10.00 6.97 0.00 2009 6.97 8.81 0.00 2010 8.81 9.66 0.00 2011 9.66 9.25 0.00 2012 9.25 10.26 0.00 American Funds Bond Investment Division+ (Class 2) (5/1/2006).............................................. 2006 13.54 14.12 0.00 2007 14.12 14.24 0.00 2008 14.24 12.61 0.00 2009 12.61 13.86 0.00 2010 13.86 14.40 0.00 2011 14.40 14.92 0.00 2012 14.92 15.35 0.00 American Funds Global Small Capitalization Investment Division+ (Class 2)..................................... 2003 10.32 15.47 7,432.78 2004 15.47 18.25 1,724.22 2005 18.25 22.34 529.95 2006 22.34 27.06 225.68 2007 27.06 32.07 143.60 2008 32.07 14.55 16.15 2009 14.55 22.91 15.75 2010 22.91 27.39 17.22 2011 27.39 21.62 15.24 2012 21.62 24.94 14.95 American Funds(R) Growth Allocation Investment Division (Class C) (4/28/2008)................................... 2008 9.99 6.32 0.00 2009 6.32 8.28 0.00 2010 8.28 9.19 0.00 2011 9.19 8.56 0.00 2012 8.56 9.72 0.00 American Funds Growth Investment Division+ (Class 2)...... 2003 70.80 94.57 6,362.14 2004 94.57 103.86 308.48 2005 103.86 117.82 44.81 2006 117.82 126.79 0.00 2007 126.79 139.05 0.00 2008 139.05 76.05 0.00 2009 76.05 103.51 0.00 2010 103.51 119.94 0.00 2011 119.94 112.09 0.00 2012 112.09 129.00 0.00
405
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ American Funds Growth-Income Investment Division+ (Class 2)................................................ 2003 $56.92 $73.60 4,976.20 2004 73.60 79.30 207.31 2005 79.30 81.94 148.26 2006 81.94 92.17 446.02 2007 92.17 94.51 126.63 2008 94.51 57.34 96.65 2009 57.34 73.47 84.09 2010 73.47 79.92 56.72 2011 79.92 76.60 56.64 2012 76.60 87.85 50.36 American Funds(R) Moderate Allocation Investment Division (Class C) (4/28/2008).................................... 2008 10.01 7.64 0.00 2009 7.64 9.21 0.00 2010 9.21 9.90 0.00 2011 9.90 9.70 0.00 2012 9.70 10.51 0.00 AQR Global Risk Balanced Investment Division (Class B) (4/30/2012).............................................. 2012 11.05 11.39 0.00 Baillie Gifford International Stock Investment Division (formerly Artio International Stock Investment Division) (Class B)................................................ 2004 10.58 12.01 0.00 2005 12.01 13.82 0.00 2006 13.82 15.70 0.00 2007 15.70 16.90 0.00 2008 16.90 9.21 0.00 2009 9.21 10.98 0.00 2010 10.98 11.47 0.00 2011 11.47 8.95 0.00 2012 8.95 10.45 0.00 Barclays Capital Aggregate Bond Index Investment Division (Class B)................................................ 2004 11.84 12.12 1,283.14 2005 12.12 12.07 1,330.12 2006 12.07 12.25 2,296.73 2007 12.25 12.78 475.08 2008 12.78 13.20 384.94 2009 13.20 13.54 3,900.34 2010 13.54 14.00 5,660.58 2011 14.00 14.68 5,706.46 2012 14.68 14.88 8,371.45
406
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ BlackRock Aggressive Growth Investment Division (Class B).............................................. 2004 $29.29 $32.29 0.00 2005 32.29 34.87 0.00 2006 34.87 36.30 0.00 2007 36.30 42.67 57.96 2008 42.67 22.59 81.70 2009 22.59 32.93 65.68 2010 32.93 37.02 63.98 2011 37.02 35.03 59.80 2012 35.03 37.90 59.81 BlackRock Bond Income Investment Division (Class B)...... 2004 36.31 37.40 0.00 2005 37.40 37.36 0.00 2006 37.36 38.04 0.00 2007 38.04 39.43 0.00 2008 39.43 37.14 0.00 2009 37.14 39.65 0.00 2010 39.65 41.90 376.72 2011 41.90 43.55 375.80 2012 43.55 45.68 375.80 BlackRock Diversified Investment Division (Class B)...... 2004 30.36 32.57 0.00 2005 32.57 32.75 0.00 2006 32.75 35.30 0.00 2007 35.30 36.45 0.00 2008 36.45 26.74 0.00 2009 26.74 30.59 0.00 2010 30.59 32.69 0.00 2011 32.69 33.12 0.00 2012 33.12 36.30 0.00 BlackRock Global Tactical Strategies Investment Division (Class B) (4/30/2012).................................. 2012 9.88 10.15 0.00 BlackRock Large Cap Core Investment Division* (Class B).............................................. 2007 63.76 63.94 0.00 2008 63.94 39.19 0.00 2009 39.19 45.67 0.00 2010 45.67 50.22 0.00 2011 50.22 49.23 0.00 2012 49.23 54.58 0.00 BlackRock Large Cap Investment Division (Class B)........ 2004 49.83 54.68 0.00 2005 54.68 55.24 0.00 2006 55.24 61.48 0.00 2007 61.48 64.30 0.00
407
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ BlackRock Large Cap Value Investment Division (Class B).. 2004 $10.51 $11.52 0.00 2005 11.52 11.90 0.00 2006 11.90 13.86 0.00 2007 13.86 13.97 0.00 2008 13.97 8.86 0.00 2009 8.86 9.62 0.00 2010 9.62 10.25 2.91 2011 10.25 10.23 0.00 2012 10.23 11.40 0.00 BlackRock Legacy Large Cap Growth Investment Division (Class B).............................................. 2004 21.39 23.30 607.12 2005 23.30 24.33 0.00 2006 24.33 24.71 0.00 2007 24.71 28.61 86.46 2008 28.61 17.71 102.45 2009 17.71 23.64 91.91 2010 23.64 27.61 966.83 2011 27.61 24.52 1,023.33 2012 24.52 27.35 314.00 BlackRock Legacy Large Cap Growth Investment Division--Class B (formerly FI Large Cap Investment Division (5/1/2006)). 2006 15.74 15.83 0.00 2007 15.83 16.05 0.00 2008 16.05 8.64 0.00 2009 8.64 8.97 0.00 BlackRock Money Market Investment Division (Class B)..... 2004 18.42 18.25 283.74 2005 18.25 18.32 0.00 2006 18.32 18.73 0.00 2007 18.73 19.19 1,231.32 2008 19.19 19.25 967.35 2009 19.25 18.87 1,110.09 2010 18.87 18.45 1,198.15 2011 18.45 18.04 1,202.87 2012 18.04 17.64 1,246.30 Clarion Global Real Estate Investment Division (Class B). 2004 9.99 12.76 0.00 2005 12.76 14.13 0.00 2006 14.13 19.01 388.07 2007 19.01 15.80 388.21 2008 15.80 9.01 332.89 2009 9.01 11.86 414.83 2010 11.86 13.47 416.39 2011 13.47 12.43 105.67 2012 12.43 15.32 96.57
408
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Davis Venture Value Investment Division (Class B)...... 2004 $ 26.35 $ 28.20 0.00 2005 28.20 30.33 0.00 2006 30.33 33.90 0.00 2007 33.90 34.58 0.00 2008 34.58 20.45 0.00 2009 20.45 26.32 151.55 2010 26.32 28.75 155.82 2011 28.75 26.91 155.18 2012 26.91 29.63 154.93 FI Value Leaders Investment Division (Class B)......... 2004 20.95 23.50 0.00 2005 23.50 25.38 0.00 2006 25.38 27.71 0.00 2007 27.71 28.15 0.00 2008 28.15 16.76 0.00 2009 16.76 19.91 0.00 2010 19.91 22.25 0.00 2011 22.25 20.36 0.00 2012 20.36 22.99 0.00 Harris Oakmark International Investment Division (Class B)............................................ 2004 11.77 13.59 0.00 2005 13.59 15.18 0.00 2006 15.18 19.12 0.00 2007 19.12 18.49 0.00 2008 18.49 10.68 0.00 2009 10.68 16.20 34.00 2010 16.20 18.44 2.16 2011 18.44 15.46 0.00 2012 15.46 19.53 0.00 Invesco Balanced-Risk Allocation Investment Division (Class B) (4/30/2012)................................ 2012 1.01 1.04 0.00 Invesco Small Cap Growth Investment Division (Class B). 2004 11.11 11.84 0.00 2005 11.84 12.54 0.00 2006 12.54 14.00 0.00 2007 14.00 15.20 158.66 2008 15.20 9.10 200.03 2009 9.10 11.91 182.42 2010 11.91 14.70 163.69 2011 14.70 14.22 149.24 2012 14.22 16.43 139.70 Janus Forty Investment Division (Class B) (4/30/2007).. 2007 117.79 143.67 17.49 2008 143.67 81.47 21.69 2009 81.47 113.80 23.79 2010 113.80 121.72 18.69 2011 121.72 110.04 18.86 2012 110.04 131.80 17.27
409
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Jennison Growth Investment Division (Class B)............ 2005 $3.89 $4.65 0.00 2006 4.65 4.66 0.00 2007 4.66 5.08 0.00 2008 5.08 3.15 0.00 2009 3.15 4.30 0.00 2010 4.30 4.68 0.00 2011 4.68 4.59 0.00 2012 4.59 5.18 0.00 Jennison Growth Investment Division (formerly Met/Putnam Voyager Investment Division) (Class B).............................................. 2004 4.08 4.23 0.00 2005 4.23 3.85 0.00 Jennison Growth Investment Division (formerly Oppenheimer Capital Appreciation Investment Division) (Class B) (5/1/2005)......................... 2005 7.66 8.27 0.00 2006 8.27 8.71 0.00 2007 8.71 9.73 0.00 2008 9.73 5.14 0.00 2009 5.14 7.22 0.00 2010 7.22 7.73 5.07 2011 7.73 7.45 0.00 2012 7.45 8.36 0.00 JPMorgan Global Active Allocation Investment Division (Class B) (4/30/2012).................................. 2012 1.01 1.04 0.00 Legg Mason ClearBridge Aggressive Growth Investment Division (Class B)..................................... 2004 6.42 6.94 0.00 2005 6.94 7.71 0.00 2006 7.71 7.41 0.00 2007 7.41 7.40 0.00 2008 7.40 4.41 0.00 2009 4.41 5.73 0.00 2010 5.73 6.94 3,514.48 2011 6.94 7.01 3,341.55 2012 7.01 8.12 771.01 Legg Mason ClearBridge Aggressive Growth Investment Division (formerly Legg Mason Value Equity Investment Division) (Class B).............................................. 2006 8.81 9.39 0.00 2007 9.39 8.64 0.00 2008 8.64 3.83 0.00 2009 3.83 5.17 0.00 2010 5.17 5.42 0.00 2011 5.42 5.75 0.00 Legg Mason Value Equity Investment Division (formerly MFS(R) Investors Trust Investment Division) (Class B).............................................. 2004 7.36 8.12 0.00 2005 8.12 8.49 0.00 2006 8.49 8.85 0.00
410
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Loomis Sayles Small Cap Core Investment Division (Class B)............................................. 2004 $21.50 $24.23 0.00 2005 24.23 25.27 0.00 2006 25.27 28.77 0.00 2007 28.77 31.39 77.22 2008 31.39 19.62 94.01 2009 19.62 24.93 88.63 2010 24.93 31.01 861.08 2011 31.01 30.42 867.57 2012 30.42 33.99 254.15 Loomis Sayles Small Cap Growth Investment Division (Class B)............................................. 2004 8.58 9.45 0.00 2005 9.45 9.65 0.00 2006 9.65 10.35 0.00 2007 10.35 10.55 0.00 2008 10.55 6.05 0.00 2009 6.05 7.68 0.00 2010 7.68 9.86 0.00 2011 9.86 9.91 0.00 2012 9.91 10.74 0.00 Lord Abbett Bond Debenture Investment Division (Class B)............................................. 2004 14.90 15.78 0.00 2005 15.78 15.66 0.00 2006 15.66 16.72 0.00 2007 16.72 17.41 0.00 2008 17.41 13.86 0.00 2009 13.86 18.53 53.24 2010 18.53 20.47 54.11 2011 20.47 20.91 50.76 2012 20.91 23.09 49.07 Lord Abbett Mid Cap Value Investment Division (Class B). 2012 22.58 23.08 0.00 Lord Abbett Mid Cap Value Investment Division (Class B) (formerly Neuberger Berman Mid Cap Value Investment Division (Class B))................................... 2004 17.71 20.54 0.00 2005 20.54 22.48 0.00 2006 22.48 24.45 184.65 2007 24.45 24.66 184.82 2008 24.66 12.66 184.10 2009 12.66 18.29 183.84 2010 18.29 22.55 184.80 2011 22.55 20.57 0.00 2012 20.57 22.69 0.00
411
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Met/Artisan Mid Cap Value Investment Division (Class B).... 2004 $27.43 $29.59 0.00 2005 29.59 31.75 0.00 2006 31.75 34.82 86.12 2007 34.82 31.63 86.20 2008 31.63 16.66 85.86 2009 16.66 23.00 85.77 2010 23.00 25.81 86.76 2011 25.81 26.87 0.00 2012 26.87 29.31 0.00 Met/Franklin Income Investment Division (Class B) (4/28/2008).............................................. 2008 9.99 7.93 533.81 2009 7.93 9.92 440.46 2010 9.92 10.84 417.59 2011 10.84 10.83 404.53 2012 10.83 11.91 372.53 Met/Franklin Low Duration Total Return Investment Division (Class B) (5/2/2011)..................................... 2011 9.98 9.71 0.00 2012 9.71 9.91 0.00 Met/Franklin Mutual Shares Investment Division (Class B) (4/28/2008).............................................. 2008 9.99 6.56 0.00 2009 6.56 8.01 0.00 2010 8.01 8.69 0.00 2011 8.69 8.45 0.00 2012 8.45 9.41 0.00 Met/Franklin Templeton Founding Strategy Investment Division (Class B) (4/28/2008)........................... 2008 9.99 6.99 0.00 2009 6.99 8.78 0.00 2010 8.78 9.45 0.00 2011 9.45 9.08 0.00 2012 9.08 10.31 0.00 Met/Templeton Growth Investment Division (Class B) (4/28/2008).............................................. 2008 9.99 6.53 0.00 2009 6.53 8.46 0.00 2010 8.46 8.91 0.00 2011 8.91 8.11 0.00 2012 8.11 9.69 0.00 MetLife Aggressive Strategy Investment Division............ 2011 11.55 9.84 0.00 2012 9.84 11.23 0.00 MetLife Aggressive Strategy Investment Division (formerly MetLife Aggressive Allocation Investment Division) (Class B)...................................... 2005 9.99 11.08 0.00 2006 11.08 12.53 0.00 2007 12.53 12.65 0.00 2008 12.65 7.37 0.00 2009 7.37 9.47 0.00 2010 9.47 10.71 0.00 2011 10.71 11.59 0.00
412
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ MetLife Balanced Plus Investment Division (Class B) (4/30/2012)............................................. 2012 $ 9.91 $10.31 0.00 MetLife Conservative Allocation Investment Division (Class B) (5/1/2005).................................... 2005 9.99 10.24 0.00 2006 10.24 10.70 0.00 2007 10.70 11.04 0.00 2008 11.04 9.24 0.00 2009 9.24 10.89 29,668.04 2010 10.89 11.72 31,683.25 2011 11.72 11.83 31,442.37 2012 11.83 12.63 31,212.47 MetLife Conservative to Moderate Allocation Investment Division (Class B) (5/1/2005)........................... 2005 9.99 10.45 10,357.79 2006 10.45 11.18 9,265.11 2007 11.18 11.46 9,268.63 2008 11.46 8.78 9,265.11 2009 8.78 10.62 29,679.51 2010 10.62 11.58 31,695.39 2011 11.58 11.45 30,050.29 2012 11.45 12.47 28,451.10 MetLife Mid Cap Stock Index Investment Division (Class B)............................................... 2004 11.28 12.56 0.00 2005 12.56 13.76 223.42 2006 13.76 14.77 317.65 2007 14.77 15.53 47.27 2008 15.53 9.66 69.51 2009 9.66 12.92 566.32 2010 12.92 15.91 570.30 2011 15.91 15.22 337.07 2012 15.22 17.46 1,891.46 MetLife Moderate Allocation Investment Division (Class B) (5/1/2005).............................................. 2005 9.99 10.68 0.00 2006 10.68 11.68 0.00 2007 11.68 11.92 0.00 2008 11.92 8.31 0.00 2009 8.31 10.29 0.00 2010 10.29 11.38 0.00 2011 11.38 10.98 0.00 2012 10.98 12.15 0.00 MetLife Moderate to Aggressive Allocation Investment Division (Class B) (5/1/2005)........................... 2005 9.99 10.91 0.00 2006 10.91 12.18 23,530.70 2007 12.18 12.37 24,768.93 2008 12.37 7.84 0.00 2009 7.84 9.90 56,085.00 2010 9.90 11.11 55,628.81 2011 11.11 10.45 55,116.54 2012 10.45 11.79 54,539.66
413
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ MetLife Stock Index Investment Division (Class B). 2004 $30.10 $32.43 163.69 2005 32.43 33.10 955.25 2006 33.10 37.28 1,267.67 2007 37.28 38.26 173.58 2008 38.26 23.47 253.02 2009 23.47 28.89 2,223.53 2010 28.89 32.35 2,495.31 2011 32.35 32.14 1,444.15 2012 32.14 36.28 3,125.96 MFS(R) Research International Investment Division (Class B)....................................... 2004 9.48 10.82 0.00 2005 10.82 12.32 0.00 2006 12.32 15.25 0.00 2007 15.25 16.89 0.00 2008 16.89 9.51 0.00 2009 9.51 12.24 0.00 2010 12.24 13.33 0.00 2011 13.33 11.64 0.00 2012 11.64 13.28 0.00 MFS(R) Total Return Investment Division (Class B). 2004 31.81 34.39 0.00 2005 34.39 34.59 0.00 2006 34.59 37.86 0.00 2007 37.86 38.54 0.00 2008 38.54 29.25 0.00 2009 29.25 33.84 0.00 2010 33.84 36.33 0.00 2011 36.33 36.29 0.00 2012 36.29 39.49 0.00 MFS(R) Value Investment Division (Class B)........ 2004 11.58 12.42 0.00 2005 12.42 11.95 0.00 2006 11.95 13.77 0.00 2007 13.77 12.92 0.00 2008 12.92 8.37 0.00 2009 8.37 9.87 0.00 2010 9.87 10.73 0.00 2011 10.73 10.56 0.00 2012 10.56 12.01 0.00 MLA Mid Cap Investment Division (formerly Lazard Mid Cap Investment Division) (Class B)....................................... 2004 12.29 13.19 0.00 2005 13.19 13.94 0.00 2006 13.94 15.63 0.00 2007 15.63 14.87 0.00 2008 14.87 8.97 0.00 2009 8.97 11.99 0.00 2010 11.99 14.41 0.00 2011 14.41 13.34 0.00 2012 13.34 13.74 0.00
414
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ MSCI EAFE(R) Index Investment Division (formerly Morgan Stanley EAFE(R) Index Investment Division) (Class B).................................... 2004 $ 9.12 $10.55 0.00 2005 10.55 11.65 721.69 2006 11.65 14.29 838.39 2007 14.29 15.44 249.80 2008 15.44 8.72 364.67 2009 8.72 10.95 1,488.00 2010 10.95 11.55 1,739.99 2011 11.55 9.86 1,234.26 2012 9.86 11.38 5,469.63 Morgan Stanley Mid Cap Growth Investment Division (Class B).............................................. 2010 11.50 13.29 0.00 2011 13.29 12.09 0.00 2012 12.09 12.92 0.00 Morgan Stanley Mid Cap Growth Investment Division (formerly FI Mid Cap Opportunities Investment Division (Class B))............................................. 2004 13.78 15.43 0.00 2005 15.43 16.09 0.00 2006 16.09 17.55 0.00 2007 17.55 18.55 0.00 2008 18.55 8.08 0.00 2009 8.08 10.55 0.00 2010 10.55 11.39 0.00 Neuberger Berman Genesis Investment Division (Class B)... 2004 15.59 17.44 0.00 2005 17.44 17.72 0.00 2006 17.72 20.18 74.10 2007 20.18 19.00 74.17 2008 19.00 11.41 73.88 2009 11.41 12.59 73.76 2010 12.59 14.94 74.39 2011 14.94 15.41 0.00 2012 15.41 16.53 0.00 Oppenheimer Global Equity Investment Division (Class B).. 2004 11.99 13.76 0.00 2005 13.76 15.60 0.00 2006 15.60 17.75 0.00 2007 17.75 18.44 0.00 2008 18.44 10.72 0.00 2009 10.72 14.65 0.00 2010 14.65 16.60 0.00 2011 16.60 14.87 0.00 2012 14.87 17.62 0.00
415
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ PIMCO Inflation Protected Bond Investment Division (Class B) (5/1/2006)..................................... 2006 $10.71 $10.76 0.00 2007 10.76 11.65 0.00 2008 11.65 10.61 0.00 2009 10.61 12.24 0.00 2010 12.24 12.90 1,901.84 2011 12.90 14.02 1,642.70 2012 14.02 14.96 414.03 PIMCO Total Return Investment Division (Class B)........... 2004 11.35 11.69 0.00 2005 11.69 11.69 0.00 2006 11.69 11.95 0.00 2007 11.95 12.57 0.00 2008 12.57 12.34 0.00 2009 12.34 14.24 37.84 2010 14.24 15.06 525.12 2011 15.06 15.19 524.61 2012 15.19 16.23 524.61 Pyramis(R) Government Income Investment Division (Class B) (4/30/2012).............................................. 2012 10.68 10.78 0.00 RCM Technology Investment Division (Class B)............... 2004 4.05 4.19 0.00 2005 4.19 4.55 0.00 2006 4.55 4.69 0.00 2007 4.69 6.03 0.00 2008 6.03 3.27 0.00 2009 3.27 5.09 0.00 2010 5.09 6.36 3,805.04 2011 6.36 5.60 3,927.45 2012 5.60 6.14 1,017.82 Russell 2000(R) Index Investment Division (Class B)........ 2004 12.85 14.63 0.00 2005 14.63 14.92 138.96 2006 14.92 17.16 136.11 2007 17.16 16.49 0.00 2008 16.49 10.69 0.00 2009 10.69 13.14 0.00 2010 13.14 16.26 2.20 2011 16.26 15.22 0.00 2012 15.22 17.26 945.92 Schroders Global Multi-Asset Investment Division (Class B) (4/30/2012).............................................. 2012 1.01 1.06 0.00 SSgA Growth ETF Investment Division (Class B) (5/1/2006)............................................... 2006 10.65 11.29 0.00 2007 11.29 11.66 0.00 2008 11.66 7.64 0.00 2009 7.64 9.64 0.00 2010 9.64 10.76 0.00 2011 10.76 10.30 0.00 2012 10.30 11.58 0.00
416
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ SSgA Growth and Income ETF Investment Division (Class B) (5/1/2006)............................................. 2006 $10.46 $11.04 0.00 2007 11.04 11.37 0.00 2008 11.37 8.33 0.00 2009 8.33 10.18 0.00 2010 10.18 11.17 0.00 2011 11.17 11.04 0.00 2012 11.04 12.17 0.00 T. Rowe Price Large Cap Growth Investment Division (Class B).............................................. 2004 10.65 11.48 0.00 2005 11.48 11.94 0.00 2006 11.94 13.17 0.00 2007 13.17 14.06 0.00 2008 14.06 7.97 0.00 2009 7.97 11.15 0.00 2010 11.15 12.73 0.00 2011 12.73 12.28 0.00 2012 12.28 14.24 0.00 T. Rowe Price Mid Cap Growth Investment Division (Class B).............................................. 2004 6.10 6.88 0.00 2005 6.88 7.71 0.00 2006 7.71 8.01 0.00 2007 8.01 9.21 265.21 2008 9.21 5.42 344.24 2009 5.42 7.71 410.15 2010 7.71 9.63 2,885.21 2011 9.63 9.26 2,865.34 2012 9.26 10.29 944.02 T. Rowe Price Small Cap Growth Investment Division (Class B).............................................. 2004 11.64 12.34 0.00 2005 12.34 13.36 0.00 2006 13.36 13.54 0.00 2007 13.54 14.50 0.00 2008 14.50 9.03 0.00 2009 9.03 12.24 0.00 2010 12.24 16.11 1,506.80 2011 16.11 15.98 1,481.37 2012 15.98 18.11 347.31 Western Asset Management Strategic Bond Opportunities Investment Division (Class B).......................... 2004 17.20 18.14 0.00 2005 18.14 18.19 0.00 2006 18.19 18.64 80.44 2007 18.64 18.90 80.52 2008 18.90 15.67 80.20 2009 15.67 20.20 80.11 2010 20.20 22.21 82.21 2011 22.21 22.99 0.00 2012 22.99 25.01 0.00
417
BEGINNING OF NUMBER OF YEAR END OF YEAR ACCUMULATION ACCUMULATION ACCUMULATION UNITS END OF INVESTMENT DIVISION YEAR UNIT VALUE UNIT VALUE YEAR ------------------- ---- ------------ ------------ ------------ Western Asset Management U.S Government Investment Division (Class B)................................... 2004 $ 14.22 $ 14.48 0.00 2005 14.48 14.35 0.00 2006 14.35 14.58 0.00 2007 14.58 14.83 0.00 2008 14.83 14.42 0.00 2009 14.42 14.68 327.92 2010 14.68 15.14 353.52 2011 15.14 15.58 339.24 2012 15.58 15.70 357.23 At 2.50 Separate Account Charge: American Funds Bond Investment Division (Class 2)/(e)/. 2006 13.42 13.99 0.00 2007 13.99 14.09 0.00 2008 14.09 12.46 0.00 2009 12.46 13.68 0.00 2010 13.68 14.21 0.00 2011 14.21 14.70 0.00 2012 14.70 15.11 0.00 American Funds Global Small Capitalization Investment Division (Class 2)................................... 2004 15.38 18.13 0.00 2005 18.13 22.17 0.00 2006 22.17 26.82 114.70 2007 26.82 31.76 190.14 2008 31.76 14.39 236.85 2009 14.39 22.65 319.95 2010 22.65 27.04 280.31 2011 27.04 21.32 191.39 2012 21.32 24.58 187.44 American Funds Growth Investment Division (Class 2).... 2004 92.71 101.71 0.00 2005 101.71 115.27 0.00 2006 115.27 123.92 36.11 2007 123.92 135.77 53.87 2008 135.77 74.18 60.33 2009 74.18 100.86 57.15 2010 100.86 116.75 56.11 2011 116.75 109.00 19.36 2012 109.00 125.32 18.26 American Funds Growth-Income Investment Division (Class 2)............................................ 2004 72.15 77.66 0.00 2005 77.66 80.17 0.00 2006 80.17 90.08 66.47 2007 90.08 92.28 92.69 2008 92.28 55.93 98.58 2009 55.93 71.59 123.67 2010 71.59 77.80 166.80 2011 77.80 74.49 140.96 2012 74.49 85.35 26.60
418 -------- The assets of the Oppenheimer Capital Appreciation Investment Division of the Met Investors Fund were merged into the Jennison Growth Investment Division of the Metropolitan Fund on April 30, 2012. Accumulation Unit Values prior to April 30, 2012 are those of the Oppenheimer Capital Appreciation Investment Division. The assets of the Lord Abbett Mid Cap Value Investment Division (formerly the Neuberger Berman Mid Cap Value Division) of the Metropolitan Fund were merged into the Lord Abbett Mid Cap Value Investment Division of the Met Investors Fund on April 30, 2012. Accumulation Unit Values prior to April 30, 2012 are those of the Lord Abbett Mid Cap Value Investment Division. of the Metropolitan Fund. The assets of Legg Mason Value Equity Investment Division of the Met Investors Fund were merged into the Legg Mason ClearBridge Aggressive Growth Investment Division of the Met Investors Fund on May 2, 2011. Accumulation Unit Values prior to May 2, 2011 are those of the Legg Mason Value Equity Investment Division. The assets of MetLife Aggressive Allocation Investment Division of the Metropolitan Fund were merged into the MetLife Aggressive Strategy Investment Division of the Met Investors Fund on May 2, 2011. Accumulation Unit Values prior to May 2, 2011 are those of the MetLife Aggressive Allocation Investment Division. The assets of FI Mid Cap Opportunities Investment Division of the Metropolitan Fund were merged into the Morgan Stanley Mid Cap Growth Investment Division of the Met Investors Fund on May 3, 2010. Accumulation Unit Values prior to May 3, 2010 are those of FI Mid Cap Opportunities Investment Division. The assets of FI Large Cap Investment Division of the Metropolitan Funds were merged into the BlackRock Legacy Large Cap Growth Investment Division of the Metropolitan Fund on May 1, 2009. Accumulation Unit Values prior to May 1, 2009 are those of the FI Large Cap Investment Division. The assets of BlackRock Large Cap Investment Division (formerly BlackRock Investment Trust Investment Division) of the Metropolitan Fund were merged into the BlackRock Large Cap Core Investment Division of the Met Investors Fund on April 30, 2007. Accumulation Unit Values prior to April 30, 2007 are those of the BlackRock Large Cap Investment Division. The assets of the MFS(R) Investors Trust Division of the Metropolitan Fund were merged into the Legg Mason Value Equity Investment Division of the Met Investors Fund prior to the opening of business on May 1, 2006. Accumulation Unit Values prior to May 1, 2006 are those of MFS(R) Investors Trust Investment Division. The assets in Met/Putnam Voyager Investment Division of the Metropolitan Fund were merged into Jennison Growth Investment Division of the Metropolitan Fund prior to the opening of business on May 2, 2005. The Met/Putnam Voyager Investment Division is no longer available. * We are waiving a portion of the Separate Account charge for the Investment Division investing in the BlackRock Large Cap Core Portfolio. + The Accumulation Unit Values for this American Funds(R) Investment Division are calculated with an additional .15% Separate Account charge which was in effect prior to May 1, 2004. Please see the Table of Expenses for more information. 419 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Contract Owners of Metropolitan Life Separate Account E and Board of Directors of Metropolitan Life Insurance Company We have audited the accompanying statements of assets and liabilities of Metropolitan Life Separate Account E (the "Separate Account") of Metropolitan Life Insurance Company (the "Company") comprising each of the individual Investment Divisions listed in Note 2.A. as of December 31, 2012, the related statements of operations for the respective stated period in the year then ended, the statements of changes in net assets for the respective stated periods in the two years then ended, and the financial highlights in Note 8 for the respective stated periods in the five years then ended. These financial statements and financial highlights are the responsibility of the Separate Account's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Separate Account is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Separate Account's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of investments owned as of December 31, 2012, by correspondence with the custodian or mutual fund companies. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of each of the Investment Divisions constituting the Separate Account of the Company as of December 31, 2012, the results of their operations for the respective stated period in the year then ended, the changes in their net assets for the respective stated periods in the two years then ended, and the financial highlights for the respective stated periods in the five years then ended, in conformity with accounting principles generally accepted in the United States of America. /s/ DELOITTE & TOUCHE LLP Certified Public Accountants Tampa, Florida March 28, 2013 This page is intentionally left blank. METROPOLITAN LIFE SEPARATE ACCOUNT E OF METROPOLITAN LIFE INSURANCE COMPANY STATEMENTS OF ASSETS AND LIABILITIES DECEMBER 31, 2012
AMERICAN FUNDS AMERICAN FUNDS GLOBAL SMALL AMERICAN FUNDS AMERICAN FUNDS BOND CAPITALIZATION GROWTH GROWTH-INCOME INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION ------------------- ------------------- ------------------- ------------------- ASSETS: Investments at fair value............ $ 128,509,433 $ 512,261,360 $ 978,263,072 $ 728,354,546 Due from Metropolitan Life Insurance Company.................. -- -- -- -- ------------------- ------------------- ------------------- ------------------- Total Assets..................... 128,509,433 512,261,360 978,263,072 728,354,546 ------------------- ------------------- ------------------- ------------------- LIABILITIES: Accrued fees......................... 6 7 5 5 Due to Metropolitan Life Insurance Company.................. 3 -- 2 93 ------------------- ------------------- ------------------- ------------------- Total Liabilities................ 9 7 7 98 ------------------- ------------------- ------------------- ------------------- NET ASSETS.............................. $ 128,509,424 $ 512,261,353 $ 978,263,065 $ 728,354,448 =================== =================== =================== =================== CONTRACT OWNERS' EQUITY Net assets from accumulation units... $ 128,297,882 $ 511,959,198 $ 977,706,419 $ 727,946,179 Net assets from contracts in payout.. 211,542 302,155 556,646 408,269 ------------------- ------------------- ------------------- ------------------- Total Net Assets................. $ 128,509,424 $ 512,261,353 $ 978,263,065 $ 728,354,448 =================== =================== =================== ===================
The accompanying notes are an integral part of these financial statements. 1 METROPOLITAN LIFE SEPARATE ACCOUNT E OF METROPOLITAN LIFE INSURANCE COMPANY STATEMENTS OF ASSETS AND LIABILITIES -- (CONTINUED) DECEMBER 31, 2012
CALVERT VP SRI CALVERT VP SRI FIDELITY VIP FIDELITY VIP BALANCED MID CAP GROWTH EQUITY-INCOME FUNDSMANAGER 50% INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION ------------------- ------------------- ------------------- ------------------- ASSETS: Investments at fair value............ $ 51,646,895 $ 12,341,511 $ 81,994,571 $ 28,315,175 Due from Metropolitan Life Insurance Company.................. -- -- -- -- ------------------- ------------------- ------------------- ------------------- Total Assets..................... 51,646,895 12,341,511 81,994,571 28,315,175 ------------------- ------------------- ------------------- ------------------- LIABILITIES: Accrued fees......................... 3 -- 1 -- Due to Metropolitan Life Insurance Company.................. 1 -- -- 2 ------------------- ------------------- ------------------- ------------------- Total Liabilities................ 4 -- 1 2 ------------------- ------------------- ------------------- ------------------- NET ASSETS.............................. $ 51,646,891 $ 12,341,511 $ 81,994,570 $ 28,315,173 =================== =================== =================== =================== CONTRACT OWNERS' EQUITY Net assets from accumulation units... $ 51,646,891 $ 12,341,511 $ 80,840,655 $ 28,315,173 Net assets from contracts in payout.. -- -- 1,153,915 -- ------------------- ------------------- ------------------- ------------------- Total Net Assets................. $ 51,646,891 $ 12,341,511 $ 81,994,570 $ 28,315,173 =================== =================== =================== =================== FIDELITY VIP FIDELITY VIP INVESTMENT GRADE FIDELITY VIP FUNDSMANAGER 60% FIDELITY VIP GROWTH BOND MONEY MARKET INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION ------------------- ------------------- ------------------- ------------------- ASSETS: Investments at fair value............ $ 260,007,963 $ 77,803,882 $ 22,278,308 $ 8,724,753 Due from Metropolitan Life Insurance Company.................. -- -- -- -- ------------------- ------------------- ------------------- ------------------- Total Assets..................... 260,007,963 77,803,882 22,278,308 8,724,753 ------------------- ------------------- ------------------- ------------------- LIABILITIES: Accrued fees......................... -- -- -- -- Due to Metropolitan Life Insurance Company.................. 2 -- -- 1 ------------------- ------------------- ------------------- ------------------- Total Liabilities................ 2 -- -- 1 ------------------- ------------------- ------------------- ------------------- NET ASSETS.............................. $ 260,007,961 $ 77,803,882 $ 22,278,308 $ 8,724,752 =================== =================== =================== =================== CONTRACT OWNERS' EQUITY Net assets from accumulation units... $ 260,007,961 $ 77,803,882 $ 22,278,308 $ 8,724,752 Net assets from contracts in payout.. -- -- -- -- ------------------- ------------------- ------------------- ------------------- Total Net Assets................. $ 260,007,961 $ 77,803,882 $ 22,278,308 $ 8,724,752 =================== =================== =================== =================== MIST ALLIANCEBERNSTEIN MIST AMERICAN GLOBAL DYNAMIC FUNDS BALANCED ALLOCATION ALLOCATION INVESTMENT DIVISION INVESTMENT DIVISION ------------------- ------------------- ASSETS: Investments at fair value............ $ 1,165,993,493 $ 683,639,227 Due from Metropolitan Life Insurance Company.................. -- -- ------------------- ------------------- Total Assets..................... 1,165,993,493 683,639,227 ------------------- ------------------- LIABILITIES: Accrued fees......................... -- 2 Due to Metropolitan Life Insurance Company.................. 1 2 ------------------- ------------------- Total Liabilities................ 1 4 ------------------- ------------------- NET ASSETS.............................. $ 1,165,993,492 $ 683,639,223 =================== =================== CONTRACT OWNERS' EQUITY Net assets from accumulation units... $ 1,165,993,492 $ 683,627,024 Net assets from contracts in payout.. -- 12,199 ------------------- ------------------- Total Net Assets................. $ 1,165,993,492 $ 683,639,223 =================== ===================
The accompanying notes are an integral part of these financial statements. 2 The accompanying notes are an integral part of these financial statements. 3 METROPOLITAN LIFE SEPARATE ACCOUNT E OF METROPOLITAN LIFE INSURANCE COMPANY STATEMENTS OF ASSETS AND LIABILITIES -- (CONTINUED) DECEMBER 31, 2012
MIST AMERICAN MIST AMERICAN MIST AMERICAN FUNDS GROWTH MIST AMERICAN FUNDS MODERATE FUNDS BOND ALLOCATION FUNDS GROWTH ALLOCATION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION ------------------- ------------------- ------------------- ------------------- ASSETS: Investments at fair value............ $ 89,292,267 $ 333,268,566 $ 309,469,423 $ 908,733,320 Due from Metropolitan Life Insurance Company.................. -- -- -- -- ------------------- ------------------- ------------------- ------------------- Total Assets..................... 89,292,267 333,268,566 309,469,423 908,733,320 ------------------- ------------------- ------------------- ------------------- LIABILITIES: Accrued fees......................... 1 4 2 2 Due to Metropolitan Life Insurance Company.................. 1 1 2 2 ------------------- ------------------- ------------------- ------------------- Total Liabilities................ 2 5 4 4 ------------------- ------------------- ------------------- ------------------- NET ASSETS.............................. $ 89,292,265 $ 333,268,561 $ 309,469,419 $ 908,733,316 =================== =================== =================== =================== CONTRACT OWNERS' EQUITY Net assets from accumulation units... $ 89,290,116 $ 333,256,922 $ 309,450,992 $ 908,407,125 Net assets from contracts in payout.. 2,149 11,639 18,427 326,191 ------------------- ------------------- ------------------- ------------------- Total Net Assets................. $ 89,292,265 $ 333,268,561 $ 309,469,419 $ 908,733,316 =================== =================== =================== =================== MIST BLACKROCK MIST AQR GLOBAL GLOBAL TACTICAL MIST BLACKROCK RISK BALANCED STRATEGIES LARGE CAP CORE VARIABLE B INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION ------------------- ------------------- ------------------- -------------------- ASSETS: Investments at fair value............ $ 1,737,315,769 $ 1,603,180,948 $ 616,700,360 $ 12,413,480 Due from Metropolitan Life Insurance Company.................. -- -- -- -- ------------------- ------------------- ------------------- -------------------- Total Assets..................... 1,737,315,769 1,603,180,948 616,700,360 12,413,480 ------------------- ------------------- ------------------- -------------------- LIABILITIES: Accrued fees......................... -- 1 9 -- Due to Metropolitan Life Insurance Company.................. 1 1 5 -- ------------------- ------------------- ------------------- -------------------- Total Liabilities................ 1 2 14 -- ------------------- ------------------- ------------------- -------------------- NET ASSETS.............................. $ 1,737,315,768 $ 1,603,180,946 $ 616,700,346 $ 12,413,480 =================== =================== =================== ==================== CONTRACT OWNERS' EQUITY Net assets from accumulation units... $ 1,737,315,768 $ 1,603,180,946 $ 612,430,735 $ 12,156,282 Net assets from contracts in payout.. -- -- 4,269,611 257,198 ------------------- ------------------- ------------------- -------------------- Total Net Assets................. $ 1,737,315,768 $ 1,603,180,946 $ 616,700,346 $ 12,413,480 =================== =================== =================== ==================== MIST CLARION GLOBAL VARIABLE C REAL ESTATE INVESTMENT DIVISION INVESTMENT DIVISION ------------------- ------------------- ASSETS: Investments at fair value............ $ 1,223,254 $ 245,411,651 Due from Metropolitan Life Insurance Company.................. -- -- ------------------- ------------------- Total Assets..................... 1,223,254 245,411,651 ------------------- ------------------- LIABILITIES: Accrued fees......................... -- 5 Due to Metropolitan Life Insurance Company.................. -- -- ------------------- ------------------- Total Liabilities................ -- 5 ------------------- ------------------- NET ASSETS.............................. $ 1,223,254 $ 245,411,646 =================== =================== CONTRACT OWNERS' EQUITY Net assets from accumulation units... $ 1,223,254 $ 245,301,508 Net assets from contracts in payout.. -- 110,138 ------------------- ------------------- Total Net Assets................. $ 1,223,254 $ 245,411,646 =================== ===================
The accompanying notes are an integral part of these financial statements. 4 The accompanying notes are an integral part of these financial statements. 5 METROPOLITAN LIFE SEPARATE ACCOUNT E OF METROPOLITAN LIFE INSURANCE COMPANY STATEMENTS OF ASSETS AND LIABILITIES -- (CONTINUED) DECEMBER 31, 2012
MIST HARRIS MIST INVESCO MIST DREMAN OAKMARK BALANCED-RISK MIST INVESCO SMALL CAP VALUE INTERNATIONAL ALLOCATION SMALL CAP GROWTH INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION ------------------- ------------------- ------------------- ------------------- ASSETS: Investments at fair value............ $ 16,406,073 $ 476,492,551 $ 262,571,092 $ 38,202,830 Due from Metropolitan Life Insurance Company.................. -- -- -- -- ------------------- ------------------- ------------------- ------------------- Total Assets..................... 16,406,073 476,492,551 262,571,092 38,202,830 ------------------- ------------------- ------------------- ------------------- LIABILITIES: Accrued fees......................... 2 7 -- 13 Due to Metropolitan Life Insurance Company.................. -- 10 1 1 ------------------- ------------------- ------------------- ------------------- Total Liabilities................ 2 17 1 14 ------------------- ------------------- ------------------- ------------------- NET ASSETS.............................. $ 16,406,071 $ 476,492,534 $ 262,571,091 $ 38,202,816 =================== =================== =================== =================== CONTRACT OWNERS' EQUITY Net assets from accumulation units... $ 16,406,071 $ 476,199,995 $ 262,571,091 $ 38,183,032 Net assets from contracts in payout.. -- 292,539 -- 19,784 ------------------- ------------------- ------------------- ------------------- Total Net Assets................. $ 16,406,071 $ 476,492,534 $ 262,571,091 $ 38,202,816 =================== =================== =================== =================== MIST JPMORGAN MIST LEGG MASON GLOBAL ACTIVE CLEARBRIDGE MIST LOOMIS SAYLES MIST JANUS FORTY ALLOCATION AGGRESSIVE GROWTH GLOBAL MARKETS INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION ------------------- ------------------- ------------------- -------------------- ASSETS: Investments at fair value............ $ 379,819,847 $ 177,914,121 $ 93,505,277 $ 28,499,927 Due from Metropolitan Life Insurance Company.................. -- -- -- -- ------------------- ------------------- ------------------- -------------------- Total Assets..................... 379,819,847 177,914,121 93,505,277 28,499,927 ------------------- ------------------- ------------------- -------------------- LIABILITIES: Accrued fees......................... 4 1 6 1 Due to Metropolitan Life Insurance Company.................. 1 -- 9 1 ------------------- ------------------- ------------------- -------------------- Total Liabilities................ 5 1 15 2 ------------------- ------------------- ------------------- -------------------- NET ASSETS.............................. $ 379,819,842 $ 177,914,120 $ 93,505,262 $ 28,499,925 =================== =================== =================== ==================== CONTRACT OWNERS' EQUITY Net assets from accumulation units... $ 379,722,747 $ 177,914,120 $ 93,495,012 $ 28,499,925 Net assets from contracts in payout.. 97,095 -- 10,250 -- ------------------- ------------------- ------------------- -------------------- Total Net Assets................. $ 379,819,842 $ 177,914,120 $ 93,505,262 $ 28,499,925 =================== =================== =================== ==================== MIST LORD ABBETT MIST LORD ABBETT BOND DEBENTURE MID CAP VALUE INVESTMENT DIVISION INVESTMENT DIVISION ------------------- ------------------- ASSETS: Investments at fair value............ $ 320,579,780 $ 454,279,845 Due from Metropolitan Life Insurance Company.................. -- 14 ------------------- ------------------- Total Assets..................... 320,579,780 454,279,859 ------------------- ------------------- LIABILITIES: Accrued fees......................... 6 3 Due to Metropolitan Life Insurance Company.................. 2 -- ------------------- ------------------- Total Liabilities................ 8 3 ------------------- ------------------- NET ASSETS.............................. $ 320,579,772 $ 454,279,856 =================== =================== CONTRACT OWNERS' EQUITY Net assets from accumulation units... $ 320,311,798 $ 453,850,246 Net assets from contracts in payout.. 267,974 429,610 ------------------- ------------------- Total Net Assets................. $ 320,579,772 $ 454,279,856 =================== ===================
The accompanying notes are an integral part of these financial statements. 6 The accompanying notes are an integral part of these financial statements. 7 METROPOLITAN LIFE SEPARATE ACCOUNT E OF METROPOLITAN LIFE INSURANCE COMPANY STATEMENTS OF ASSETS AND LIABILITIES -- (CONTINUED) DECEMBER 31, 2012
MIST MET/FRANKLIN MIST MET/EATON MIST MET/FRANKLIN LOW DURATION MIST MET/FRANKLIN VANCE FLOATING RATE INCOME TOTAL RETURN MUTUAL SHARES INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION ------------------- ------------------- ------------------- ------------------- ASSETS: Investments at fair value............. $ 7,437,902 $ 95,665,396 $ 15,151,483 $ 55,255,620 Due from Metropolitan Life Insurance Company................... -- -- -- -- ------------------- ------------------- ------------------- ------------------- Total Assets...................... 7,437,902 95,665,396 15,151,483 55,255,620 ------------------- ------------------- ------------------- ------------------- LIABILITIES: Accrued fees.......................... 3 5 4 4 Due to Metropolitan Life Insurance Company................... -- 2 2 2 ------------------- ------------------- ------------------- ------------------- Total Liabilities................. 3 7 6 6 ------------------- ------------------- ------------------- ------------------- NET ASSETS............................... $ 7,437,899 $ 95,665,389 $ 15,151,477 $ 55,255,614 =================== =================== =================== =================== CONTRACT OWNERS' EQUITY Net assets from accumulation units.... $ 7,437,899 $ 95,662,026 $ 15,151,477 $ 55,255,614 Net assets from contracts in payout... -- 3,363 -- -- ------------------- ------------------- ------------------- ------------------- Total Net Assets.................. $ 7,437,899 $ 95,665,389 $ 15,151,477 $ 55,255,614 =================== =================== =================== =================== MIST MET/FRANKLIN TEMPLETON FOUNDING MIST MET/TEMPLETON MIST MET/TEMPLETON MIST METLIFE STRATEGY GROWTH INTERNATIONAL BOND AGGRESSIVE STRATEGY INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION ------------------- ------------------- ------------------- -------------------- ASSETS: Investments at fair value............. $ 66,007,941 $ 26,394,026 $ 8,734,809 $ 119,313,923 Due from Metropolitan Life Insurance Company................... -- -- -- -- ------------------- ------------------- ------------------- -------------------- Total Assets...................... 66,007,941 26,394,026 8,734,809 119,313,923 ------------------- ------------------- ------------------- -------------------- LIABILITIES: Accrued fees.......................... 2 4 1 1 Due to Metropolitan Life Insurance Company................... 1 2 1 2 ------------------- ------------------- ------------------- -------------------- Total Liabilities................. 3 6 2 3 ------------------- ------------------- ------------------- -------------------- NET ASSETS............................... $ 66,007,938 $ 26,394,020 $ 8,734,807 $ 119,313,920 =================== =================== =================== ==================== CONTRACT OWNERS' EQUITY Net assets from accumulation units.... $ 65,877,304 $ 26,386,611 $ 8,734,807 $ 117,622,114 Net assets from contracts in payout... 130,634 7,409 -- 1,691,806 ------------------- ------------------- ------------------- -------------------- Total Net Assets.................. $ 66,007,938 $ 26,394,020 $ 8,734,807 $ 119,313,920 =================== =================== =================== ==================== MIST METLIFE MIST METLIFE MULTI-INDEX BALANCED PLUS TARGETED RISK INVESTMENT DIVISION INVESTMENT DIVISION ------------------- ------------------- ASSETS: Investments at fair value............. $ 1,536,558,888 $ 6,903,415 Due from Metropolitan Life Insurance Company................... -- -- ------------------- ------------------- Total Assets...................... 1,536,558,888 6,903,415 ------------------- ------------------- LIABILITIES: Accrued fees.......................... 1 1 Due to Metropolitan Life Insurance Company................... -- 1 ------------------- ------------------- Total Liabilities................. 1 2 ------------------- ------------------- NET ASSETS............................... $ 1,536,558,887 $ 6,903,413 =================== =================== CONTRACT OWNERS' EQUITY Net assets from accumulation units.... $ 1,536,558,887 $ 6,903,413 Net assets from contracts in payout... -- -- ------------------- ------------------- Total Net Assets.................. $ 1,536,558,887 $ 6,903,413 =================== ===================
The accompanying notes are an integral part of these financial statements. 8 The accompanying notes are an integral part of these financial statements. 9 METROPOLITAN LIFE SEPARATE ACCOUNT E OF METROPOLITAN LIFE INSURANCE COMPANY STATEMENTS OF ASSETS AND LIABILITIES -- (CONTINUED) DECEMBER 31, 2012
MIST MFS EMERGING MIST MFS RESEARCH MIST MLA MIST MORGAN STANLEY MARKETS EQUITY INTERNATIONAL MID CAP MID CAP GROWTH INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION ------------------- ------------------- ------------------- ------------------- ASSETS: Investments at fair value............ $ 50,543,252 $ 232,797,253 $ 52,678,945 $ 328,177,572 Due from Metropolitan Life Insurance Company.................. -- -- 2 -- ------------------- ------------------- ------------------- ------------------- Total Assets..................... 50,543,252 232,797,253 52,678,947 328,177,572 ------------------- ------------------- ------------------- ------------------- LIABILITIES: Accrued fees......................... 2 4 7 6 Due to Metropolitan Life Insurance Company.................. 1 11 -- 3 ------------------- ------------------- ------------------- ------------------- Total Liabilities................ 3 15 7 9 ------------------- ------------------- ------------------- ------------------- NET ASSETS.............................. $ 50,543,249 $ 232,797,238 $ 52,678,940 $ 328,177,563 =================== =================== =================== =================== CONTRACT OWNERS' EQUITY Net assets from accumulation units... $ 50,543,249 $ 232,272,654 $ 52,641,528 $ 327,998,531 Net assets from contracts in payout.. -- 524,584 37,412 179,032 ------------------- ------------------- ------------------- ------------------- Total Net Assets................. $ 50,543,249 $ 232,797,238 $ 52,678,940 $ 328,177,563 =================== =================== =================== =================== MIST PIMCO INFLATION PROTECTED MIST PIMCO MIST PIONEER MIST PYRAMIS BOND TOTAL RETURN STRATEGIC INCOME GOVERNMENT INCOME INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION ------------------- ------------------- ------------------- ------------------- ASSETS: Investments at fair value............ $ 697,291,195 $ 1,226,100,483 $ 70,080,767 $ 600,925,085 Due from Metropolitan Life Insurance Company.................. -- 4 -- -- ------------------- ------------------- ------------------- ------------------- Total Assets..................... 697,291,195 1,226,100,487 70,080,767 600,925,085 ------------------- ------------------- ------------------- ------------------- LIABILITIES: Accrued fees......................... 3 4 1 1 Due to Metropolitan Life Insurance Company.................. 4 -- 1 -- ------------------- ------------------- ------------------- ------------------- Total Liabilities................ 7 4 2 1 ------------------- ------------------- ------------------- ------------------- NET ASSETS.............................. $ 697,291,188 $ 1,226,100,483 $ 70,080,765 $ 600,925,084 =================== =================== =================== =================== CONTRACT OWNERS' EQUITY Net assets from accumulation units... $ 696,922,790 $ 1,225,198,531 $ 70,080,765 $ 600,925,084 Net assets from contracts in payout.. 368,398 901,952 -- -- ------------------- ------------------- ------------------- ------------------- Total Net Assets................. $ 697,291,188 $ 1,226,100,483 $ 70,080,765 $ 600,925,084 =================== =================== =================== =================== MIST RCM MIST SCHRODERS TECHNOLOGY GLOBAL MULTI-ASSET INVESTMENT DIVISION INVESTMENT DIVISION ------------------- ------------------- ASSETS: Investments at fair value............ $ 135,782,045 $ 130,034,227 Due from Metropolitan Life Insurance Company.................. -- -- ------------------- ------------------- Total Assets..................... 135,782,045 130,034,227 ------------------- ------------------- LIABILITIES: Accrued fees......................... 8 2 Due to Metropolitan Life Insurance Company.................. 2 -- ------------------- ------------------- Total Liabilities................ 10 2 ------------------- ------------------- NET ASSETS.............................. $ 135,782,035 $ 130,034,225 =================== =================== CONTRACT OWNERS' EQUITY Net assets from accumulation units... $ 135,722,673 $ 130,034,225 Net assets from contracts in payout.. 59,362 -- ------------------- ------------------- Total Net Assets................. $ 135,782,035 $ 130,034,225 =================== ===================
The accompanying notes are an integral part of these financial statements. 10 The accompanying notes are an integral part of these financial statements. 11 METROPOLITAN LIFE SEPARATE ACCOUNT E OF METROPOLITAN LIFE INSURANCE COMPANY STATEMENTS OF ASSETS AND LIABILITIES -- (CONTINUED) DECEMBER 31, 2012
MIST SSGA GROWTH MIST SSGA MIST T. ROWE PRICE MIST THIRD AVENUE AND INCOME ETF GROWTH ETF MID CAP GROWTH SMALL CAP VALUE INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION ------------------- ------------------- ------------------- ------------------- ASSETS: Investments at fair value............ $ 919,015,959 $ 116,064,982 $ 300,330,189 $ 12,367,724 Due from Metropolitan Life Insurance Company.................. -- -- -- -- ------------------- ------------------- ------------------- ------------------- Total Assets..................... 919,015,959 116,064,982 300,330,189 12,367,724 ------------------- ------------------- ------------------- ------------------- LIABILITIES: Accrued fees......................... 3 5 4 3 Due to Metropolitan Life Insurance Company.................. 1 1 2 1 ------------------- ------------------- ------------------- ------------------- Total Liabilities................ 4 6 6 4 ------------------- ------------------- ------------------- ------------------- NET ASSETS.............................. $ 919,015,955 $ 116,064,976 $ 300,330,183 $ 12,367,720 =================== =================== =================== =================== CONTRACT OWNERS' EQUITY Net assets from accumulation units... $ 918,768,776 $ 116,051,800 $ 300,124,203 $ 12,367,720 Net assets from contracts in payout.. 247,179 13,176 205,980 -- ------------------- ------------------- ------------------- ------------------- Total Net Assets................. $ 919,015,955 $ 116,064,976 $ 300,330,183 $ 12,367,720 =================== =================== =================== =================== MSF BAILLIE GIFFORD MSF BARCLAYS CAPITAL MSF BLACKROCK MSF BLACKROCK INTERNATIONAL STOCK AGGREGATE BOND INDEX AGGRESSIVE GROWTH BOND INCOME INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION ------------------- -------------------- ------------------- ------------------- ASSETS: Investments at fair value............ $ 157,488,426 $ 1,150,681,711 $ 439,241,112 $ 513,127,221 Due from Metropolitan Life Insurance Company.................. -- -- -- -- ------------------- -------------------- ------------------- ------------------- Total Assets..................... 157,488,426 1,150,681,711 439,241,112 513,127,221 ------------------- -------------------- ------------------- ------------------- LIABILITIES: Accrued fees......................... 10 4 7 3 Due to Metropolitan Life Insurance Company.................. 4 6 3 2 ------------------- -------------------- ------------------- ------------------- Total Liabilities................ 14 10 10 5 ------------------- -------------------- ------------------- ------------------- NET ASSETS.............................. $ 157,488,412 $ 1,150,681,701 $ 439,241,102 $ 513,127,216 =================== ==================== =================== =================== CONTRACT OWNERS' EQUITY Net assets from accumulation units... $ 157,151,291 $ 1,148,210,099 $ 438,891,558 $ 509,965,255 Net assets from contracts in payout.. 337,121 2,471,602 349,544 3,161,961 ------------------- -------------------- ------------------- ------------------- Total Net Assets................. $ 157,488,412 $ 1,150,681,701 $ 439,241,102 $ 513,127,216 =================== ==================== =================== =================== MSF BLACKROCK MSF BLACKROCK DIVERSIFIED LARGE CAP VALUE INVESTMENT DIVISION INVESTMENT DIVISION ------------------- ------------------- ASSETS: Investments at fair value............ $ 632,285,337 $ 220,191,820 Due from Metropolitan Life Insurance Company.................. -- 13 ------------------- ------------------- Total Assets..................... 632,285,337 220,191,833 ------------------- ------------------- LIABILITIES: Accrued fees......................... 4 4 Due to Metropolitan Life Insurance Company.................. 5 -- ------------------- ------------------- Total Liabilities................ 9 4 ------------------- ------------------- NET ASSETS.............................. $ 632,285,328 $ 220,191,829 =================== =================== CONTRACT OWNERS' EQUITY Net assets from accumulation units... $ 626,904,627 $ 220,150,120 Net assets from contracts in payout.. 5,380,701 41,709 ------------------- ------------------- Total Net Assets................. $ 632,285,328 $ 220,191,829 =================== ===================
The accompanying notes are an integral part of these financial statements. 12 The accompanying notes are an integral part of these financial statements. 13 METROPOLITAN LIFE SEPARATE ACCOUNT E OF METROPOLITAN LIFE INSURANCE COMPANY STATEMENTS OF ASSETS AND LIABILITIES -- (CONTINUED) DECEMBER 31, 2012
MSF BLACKROCK LEGACY LARGE CAP MSF BLACKROCK MSF DAVIS VENTURE MSF FI VALUE GROWTH MONEY MARKET VALUE LEADERS INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION ------------------- ------------------- ------------------- ------------------- ASSETS: Investments at fair value............ $ 164,222,679 $ 88,984,814 $ 562,306,966 $ 62,218,124 Due from Metropolitan Life Insurance Company.................. -- -- -- -- ------------------- ------------------- ------------------- ------------------- Total Assets..................... 164,222,679 88,984,814 562,306,966 62,218,124 ------------------- ------------------- ------------------- ------------------- LIABILITIES: Accrued fees......................... 2 2 7 7 Due to Metropolitan Life Insurance Company.................. -- -- 3 -- ------------------- ------------------- ------------------- ------------------- Total Liabilities................ 2 2 10 7 ------------------- ------------------- ------------------- ------------------- NET ASSETS.............................. $ 164,222,677 $ 88,984,812 $ 562,306,956 $ 62,218,117 =================== =================== =================== =================== CONTRACT OWNERS' EQUITY Net assets from accumulation units... $ 163,437,028 $ 88,405,199 $ 560,241,574 $ 61,784,206 Net assets from contracts in payout.. 785,649 579,613 2,065,382 433,911 ------------------- ------------------- ------------------- ------------------- Total Net Assets................. $ 164,222,677 $ 88,984,812 $ 562,306,956 $ 62,218,117 =================== =================== =================== =================== MSF JENNISON MSF LOOMIS SAYLES MSF LOOMIS SAYLES MSF MET/ARTISAN GROWTH SMALL CAP CORE SMALL CAP GROWTH MID CAP VALUE INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION ------------------- ------------------- ------------------- ------------------- ASSETS: Investments at fair value............ $ 154,053,963 $ 157,335,880 $ 41,493,890 $ 212,603,004 Due from Metropolitan Life Insurance Company.................. -- 3 -- -- ------------------- ------------------- ------------------- ------------------- Total Assets..................... 154,053,963 157,335,883 41,493,890 212,603,004 ------------------- ------------------- ------------------- ------------------- LIABILITIES: Accrued fees......................... 5 8 10 5 Due to Metropolitan Life Insurance Company.................. 8 -- 2 2 ------------------- ------------------- ------------------- ------------------- Total Liabilities................ 13 8 12 7 ------------------- ------------------- ------------------- ------------------- NET ASSETS.............................. $ 154,053,950 $ 157,335,875 $ 41,493,878 $ 212,602,997 =================== =================== =================== =================== CONTRACT OWNERS' EQUITY Net assets from accumulation units... $ 153,771,779 $ 156,454,472 $ 41,459,943 $ 211,891,247 Net assets from contracts in payout.. 282,171 881,403 33,935 711,750 ------------------- ------------------- ------------------- ------------------- Total Net Assets................. $ 154,053,950 $ 157,335,875 $ 41,493,878 $ 212,602,997 =================== =================== =================== =================== MSF MET/DIMENSIONAL MSF METLIFE INTERNATIONAL SMALL CONSERVATIVE COMPANY ALLOCATION INVESTMENT DIVISION INVESTMENT DIVISION ------------------- ------------------- ASSETS: Investments at fair value............ $ 4,719,392 $ 591,422,973 Due from Metropolitan Life Insurance Company.................. -- -- ------------------- ------------------- Total Assets..................... 4,719,392 591,422,973 ------------------- ------------------- LIABILITIES: Accrued fees......................... 2 -- Due to Metropolitan Life Insurance Company.................. 1 3 ------------------- ------------------- Total Liabilities................ 3 3 ------------------- ------------------- NET ASSETS.............................. $ 4,719,389 $ 591,422,970 =================== =================== CONTRACT OWNERS' EQUITY Net assets from accumulation units... $ 4,719,389 $ 591,412,745 Net assets from contracts in payout.. -- 10,225 ------------------- ------------------- Total Net Assets................. $ 4,719,389 $ 591,422,970 =================== ===================
The accompanying notes are an integral part of these financial statements. 14 The accompanying notes are an integral part of these financial statements. 15 METROPOLITAN LIFE SEPARATE ACCOUNT E OF METROPOLITAN LIFE INSURANCE COMPANY STATEMENTS OF ASSETS AND LIABILITIES -- (CONTINUED) DECEMBER 31, 2012
MSF METLIFE MSF METLIFE CONSERVATIVE TO MSF METLIFE MSF METLIFE MODERATE TO MODERATE ALLOCATION MID CAP STOCK INDEX MODERATE ALLOCATION AGGRESSIVE ALLOCATION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION ------------------- ------------------- ------------------- --------------------- ASSETS: Investments at fair value............ $ 1,413,830,342 $ 424,114,370 $ 3,918,217,627 $ 1,645,757,853 Due from Metropolitan Life Insurance Company.................. -- 5 -- -- ------------------- ------------------- ------------------- --------------------- Total Assets..................... 1,413,830,342 424,114,375 3,918,217,627 1,645,757,853 ------------------- ------------------- ------------------- --------------------- LIABILITIES: Accrued fees......................... 4 3 1 2 Due to Metropolitan Life Insurance Company.................. 2 -- 4 1 ------------------- ------------------- ------------------- --------------------- Total Liabilities................ 6 3 5 3 ------------------- ------------------- ------------------- --------------------- NET ASSETS.............................. $ 1,413,830,336 $ 424,114,372 $ 3,918,217,622 $ 1,645,757,850 =================== =================== =================== ===================== CONTRACT OWNERS' EQUITY Net assets from accumulation units... $ 1,413,528,675 $ 423,576,951 $ 3,917,255,801 $ 1,642,423,237 Net assets from contracts in payout.. 301,661 537,421 961,821 3,334,613 ------------------- ------------------- ------------------- --------------------- Total Net Assets................. $ 1,413,830,336 $ 424,114,372 $ 3,918,217,622 $ 1,645,757,850 =================== =================== =================== ===================== MSF METLIFE MSF MFS TOTAL MSF MSCI STOCK INDEX RETURN MSF MFS VALUE EAFE INDEX INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION ------------------- ------------------- ------------------- ------------------- ASSETS: Investments at fair value............ $ 2,620,060,383 $ 138,805,581 $ 293,940,095 $ 476,584,809 Due from Metropolitan Life Insurance Company.................. -- -- -- -- ------------------- ------------------- ------------------- ------------------- Total Assets..................... 2,620,060,383 138,805,581 293,940,095 476,584,809 ------------------- ------------------- ------------------- ------------------- LIABILITIES: Accrued fees......................... 5 3 8 3 Due to Metropolitan Life Insurance Company.................. 24 1 4 4 ------------------- ------------------- ------------------- ------------------- Total Liabilities................ 29 4 12 7 ------------------- ------------------- ------------------- ------------------- NET ASSETS.............................. $ 2,620,060,354 $ 138,805,577 $ 293,940,083 $ 476,584,802 =================== =================== =================== =================== CONTRACT OWNERS' EQUITY Net assets from accumulation units... $ 2,598,195,229 $ 136,599,417 $ 290,185,934 $ 476,258,541 Net assets from contracts in payout.. 21,865,125 2,206,160 3,754,149 326,261 ------------------- ------------------- ------------------- ------------------- Total Net Assets................. $ 2,620,060,354 $ 138,805,577 $ 293,940,083 $ 476,584,802 =================== =================== =================== =================== MSF NEUBERGER MSF OPPENHEIMER BERMAN GENESIS GLOBAL EQUITY INVESTMENT DIVISION INVESTMENT DIVISION ------------------- ------------------- ASSETS: Investments at fair value............ $ 254,522,499 $ 219,397,972 Due from Metropolitan Life Insurance Company.................. -- -- ------------------- ------------------- Total Assets..................... 254,522,499 219,397,972 ------------------- ------------------- LIABILITIES: Accrued fees......................... 12 3 Due to Metropolitan Life Insurance Company.................. 3 3 ------------------- ------------------- Total Liabilities................ 15 6 ------------------- ------------------- NET ASSETS.............................. $ 254,522,484 $ 219,397,966 =================== =================== CONTRACT OWNERS' EQUITY Net assets from accumulation units... $ 254,131,255 $ 219,268,026 Net assets from contracts in payout.. 391,229 129,940 ------------------- ------------------- Total Net Assets................. $ 254,522,484 $ 219,397,966 =================== ===================
The accompanying notes are an integral part of these financial statements. 16 The accompanying notes are an integral part of these financial statements. 17 METROPOLITAN LIFE SEPARATE ACCOUNT E OF METROPOLITAN LIFE INSURANCE COMPANY STATEMENTS OF ASSETS AND LIABILITIES -- (CONCLUDED) DECEMBER 31, 2012
MSF RUSSELL 2000 MSF T. ROWE PRICE MSF T. ROWE PRICE MSF VAN ECK GLOBAL INDEX LARGE CAP GROWTH SMALL CAP GROWTH NATURAL RESOURCES INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION -------------------- -------------------- -------------------- -------------------- ASSETS: Investments at fair value............ $ 272,948,980 $ 196,268,668 $ 284,907,230 $ 41,078,666 Due from Metropolitan Life Insurance Company.................. 20 -- -- -- -------------------- -------------------- -------------------- -------------------- Total Assets..................... 272,949,000 196,268,668 284,907,230 41,078,666 -------------------- -------------------- -------------------- -------------------- LIABILITIES: Accrued fees......................... 6 3 6 2 Due to Metropolitan Life Insurance Company.................. -- 5 11 -- -------------------- -------------------- -------------------- -------------------- Total Liabilities................ 6 8 17 2 -------------------- -------------------- -------------------- -------------------- NET ASSETS.............................. $ 272,948,994 $ 196,268,660 $ 284,907,213 $ 41,078,664 ==================== ==================== ==================== ==================== CONTRACT OWNERS' EQUITY Net assets from accumulation units... $ 272,685,306 $ 190,350,511 $ 284,674,392 $ 41,078,664 Net assets from contracts in payout.. 263,688 5,918,149 232,821 -- -------------------- -------------------- -------------------- -------------------- Total Net Assets................. $ 272,948,994 $ 196,268,660 $ 284,907,213 $ 41,078,664 ==================== ==================== ==================== ==================== MSF WESTERN ASSET MSF WESTERN ASSET MANAGEMENT STRATEGIC MANAGEMENT BOND OPPORTUNITIES U.S. GOVERNMENT MSF ZENITH EQUITY INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION -------------------- ------------------- ------------------- ASSETS: Investments at fair value............ $ 254,116,135 $ 229,960,742 $ 63,578,071 Due from Metropolitan Life Insurance Company.................. -- -- 1 -------------------- ------------------- ------------------- Total Assets..................... 254,116,135 229,960,742 63,578,072 -------------------- ------------------- ------------------- LIABILITIES: Accrued fees......................... 4 6 -- Due to Metropolitan Life Insurance Company.................. 3 4 -- -------------------- ------------------- ------------------- Total Liabilities................ 7 10 -- -------------------- ------------------- ------------------- NET ASSETS.............................. $ 254,116,128 $ 229,960,732 $ 63,578,072 ==================== =================== =================== CONTRACT OWNERS' EQUITY Net assets from accumulation units... $ 253,122,468 $ 229,609,949 $ 58,910,032 Net assets from contracts in payout.. 993,660 350,783 4,668,040 -------------------- ------------------- ------------------- Total Net Assets................. $ 254,116,128 $ 229,960,732 $ 63,578,072 ==================== =================== ===================
The accompanying notes are an integral part of these financial statements. 18 The accompanying notes are an integral part of these financial statements. 19 METROPOLITAN LIFE SEPARATE ACCOUNT E OF METROPOLITAN LIFE INSURANCE COMPANY STATEMENTS OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2012
AMERICAN FUNDS AMERICAN FUNDS GLOBAL SMALL AMERICAN FUNDS AMERICAN FUNDS BOND CAPITALIZATION GROWTH GROWTH-INCOME INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION ------------------- ------------------- ------------------- ------------------- INVESTMENT INCOME: Dividends......................... $ 3,223,956 $ 6,840,450 $ 7,672,969 $ 11,565,185 ------------------- ------------------- ------------------- ------------------- EXPENSES: Mortality and expense risk charges......................... 1,673,840 6,271,864 11,964,748 8,825,354 Administrative charges............ 323,376 1,230,386 2,355,487 1,734,097 ------------------- ------------------- ------------------- ------------------- Total expenses.................. 1,997,216 7,502,250 14,320,235 10,559,451 ------------------- ------------------- ------------------- ------------------- Net investment income (loss).. 1,226,740 (661,800) (6,647,266) 1,005,734 ------------------- ------------------- ------------------- ------------------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions....... -- -- -- -- Realized gains (losses) on sale of investments..................... 266,155 (6,163,348) 14,472,720 5,144,694 ------------------- ------------------- ------------------- ------------------- Net realized gains (losses)... 266,155 (6,163,348) 14,472,720 5,144,694 ------------------- ------------------- ------------------- ------------------- Change in unrealized gains (losses) on investments.................. 3,480,606 84,682,889 139,843,502 99,450,526 ------------------- ------------------- ------------------- ------------------- Net realized and unrealized gains (losses) on investments......... 3,746,761 78,519,541 154,316,222 104,595,220 ------------------- ------------------- ------------------- ------------------- Net increase (decrease) in net assets resulting from operations....... $ 4,973,501 $ 77,857,741 $ 147,668,956 $ 105,600,954 =================== =================== =================== =================== CALVERT VP SRI CALVERT VP SRI FIDELITY VIP FIDELITY VIP BALANCED MID CAP GROWTH EQUITY-INCOME FUNDSMANAGER 50% INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION (a) ------------------- ------------------- ------------------- ----------------------- INVESTMENT INCOME: Dividends......................... $ 631,168 $ -- $ 2,502,988 $ 347,078 ------------------- ------------------- ------------------- ----------------------- EXPENSES: Mortality and expense risk charges......................... 494,803 88,955 642,951 104,671 Administrative charges............ 109,074 23,873 197,788 -- ------------------- ------------------- ------------------- ----------------------- Total expenses.................. 603,877 112,828 840,739 104,671 ------------------- ------------------- ------------------- ----------------------- Net investment income (loss).. 27,291 (112,828) 1,662,249 242,407 ------------------- ------------------- ------------------- ----------------------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions....... -- 1,406,278 5,146,444 73,623 Realized gains (losses) on sale of investments..................... 104,232 439,129 (1,142,990) 148 ------------------- ------------------- ------------------- ----------------------- Net realized gains (losses)... 104,232 1,845,407 4,003,454 73,771 ------------------- ------------------- ------------------- ----------------------- Change in unrealized gains (losses) on investments.................. 4,434,485 (35,037) 6,399,620 (62,811) ------------------- ------------------- ------------------- ----------------------- Net realized and unrealized gains (losses) on investments......... 4,538,717 1,810,370 10,403,074 10,960 ------------------- ------------------- ------------------- ----------------------- Net increase (decrease) in net assets resulting from operations....... $ 4,566,008 $ 1,697,542 $ 12,065,323 $ 253,367 =================== =================== =================== ======================= FIDELITY VIP FUNDSMANAGER 60% FIDELITY VIP GROWTH INVESTMENT DIVISION INVESTMENT DIVISION ------------------- ------------------- INVESTMENT INCOME: Dividends......................... $ 3,647,146 $ 470,242 ------------------- ------------------- EXPENSES: Mortality and expense risk charges......................... 4,755,743 601,221 Administrative charges............ -- 161,578 ------------------- ------------------- Total expenses.................. 4,755,743 762,799 ------------------- ------------------- Net investment income (loss).. (1,108,597) (292,557) ------------------- ------------------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions....... 832,235 -- Realized gains (losses) on sale of investments..................... 709,223 486,197 ------------------- ------------------- Net realized gains (losses)... 1,541,458 486,197 ------------------- ------------------- Change in unrealized gains (losses) on investments.................. 20,145,096 9,885,221 ------------------- ------------------- Net realized and unrealized gains (losses) on investments......... 21,686,554 10,371,418 ------------------- ------------------- Net increase (decrease) in net assets resulting from operations....... $ 20,577,957 $ 10,078,861 =================== ===================
(a) For the period July 23, 2012 to December 31, 2012. (b) For the period April 30, 2012 to December 31, 2012. (c) For the period November 12, 2012 to December 31, 2012. The accompanying notes are an integral part of these financial statements. 20 The accompanying notes are an integral part of these financial statements. 21 METROPOLITAN LIFE SEPARATE ACCOUNT E OF METROPOLITAN LIFE INSURANCE COMPANY STATEMENTS OF OPERATIONS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2012
MIST FIDELITY VIP ALLIANCEBERNSTEIN MIST AMERICAN INVESTMENT GRADE FIDELITY VIP GLOBAL DYNAMIC FUNDS BALANCED BOND MONEY MARKET ALLOCATION ALLOCATION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION ------------------- ------------------- ------------------- ------------------- INVESTMENT INCOME: Dividends......................... $ 512,458 $ 15,908 $ 751,608 $ 11,197,936 ------------------- ------------------- ------------------- ------------------- EXPENSES: Mortality and expense risk charges......................... 163,014 122,694 8,460,380 6,782,850 Administrative charges............ 43,800 18,326 2,136,174 1,663,779 ------------------- ------------------- ------------------- ------------------- Total expenses.................. 206,814 141,020 10,596,554 8,446,629 ------------------- ------------------- ------------------- ------------------- Net investment income (loss).. 305,644 (125,112) (9,844,946) 2,751,307 ------------------- ------------------- ------------------- ------------------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions....... 582,906 -- 16,141 6,795,305 Realized gains (losses) on sale of investments..................... 112,649 -- -- 5,358,773 ------------------- ------------------- ------------------- ------------------- Net realized gains (losses)... 695,555 -- 16,141 12,154,078 ------------------- ------------------- ------------------- ------------------- Change in unrealized gains (losses) on investments.................. 38,191 -- 77,778,755 59,750,875 ------------------- ------------------- ------------------- ------------------- Net realized and unrealized gains (losses) on investments......... 733,746 -- 77,794,896 71,904,953 ------------------- ------------------- ------------------- ------------------- Net increase (decrease) in net assets resulting from operations....... $ 1,039,390 $ (125,112) $ 67,949,950 $ 74,656,260 =================== =================== =================== =================== MIST AMERICAN MIST AMERICAN MIST AMERICAN FUNDS GROWTH MIST AMERICAN FUNDS MODERATE FUNDS BOND ALLOCATION FUNDS GROWTH ALLOCATION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION ------------------- ------------------- ------------------- ------------------- INVESTMENT INCOME: Dividends......................... $ 2,215,320 $ 3,854,583 $ 946,448 $ 18,391,100 ------------------- ------------------- ------------------- ------------------- EXPENSES: Mortality and expense risk charges......................... 914,146 3,346,927 3,031,408 9,275,240 Administrative charges............ 218,238 800,623 745,585 2,257,605 ------------------- ------------------- ------------------- ------------------- Total expenses.................. 1,132,384 4,147,550 3,776,993 11,532,845 ------------------- ------------------- ------------------- ------------------- Net investment income (loss).. 1,082,936 (292,967) (2,830,545) 6,858,255 ------------------- ------------------- ------------------- ------------------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions....... 430,484 -- 74,589 12,023,012 Realized gains (losses) on sale of investments..................... 407,378 6,444,719 3,479,774 7,277,138 ------------------- ------------------- ------------------- ------------------- Net realized gains (losses)... 837,862 6,444,719 3,554,363 19,300,150 ------------------- ------------------- ------------------- ------------------- Change in unrealized gains (losses) on investments.................. 1,074,290 37,485,893 42,616,835 54,196,167 ------------------- ------------------- ------------------- ------------------- Net realized and unrealized gains (losses) on investments......... 1,912,152 43,930,612 46,171,198 73,496,317 ------------------- ------------------- ------------------- ------------------- Net increase (decrease) in net assets resulting from operations....... $ 2,995,088 $ 43,637,645 $ 43,340,653 $ 80,354,572 =================== =================== =================== =================== MIST BLACKROCK MIST AQR GLOBAL GLOBAL TACTICAL RISK BALANCED STRATEGIES INVESTMENT DIVISION INVESTMENT DIVISION ------------------- ------------------- INVESTMENT INCOME: Dividends......................... $ 4,755,774 $ -- ------------------- ------------------- EXPENSES: Mortality and expense risk charges......................... 11,653,107 11,865,956 Administrative charges............ 2,942,998 2,999,539 ------------------- ------------------- Total expenses.................. 14,596,105 14,865,495 ------------------- ------------------- Net investment income (loss).. (9,840,331) (14,865,495) ------------------- ------------------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions....... 5,051,634 16,226 Realized gains (losses) on sale of investments..................... -- -- ------------------- ------------------- Net realized gains (losses)... 5,051,634 16,226 ------------------- ------------------- Change in unrealized gains (losses) on investments.................. 101,946,589 101,463,947 ------------------- ------------------- Net realized and unrealized gains (losses) on investments......... 106,998,223 101,480,173 ------------------- ------------------- Net increase (decrease) in net assets resulting from operations....... $ 97,157,892 $ 86,614,678 =================== ===================
(a) For the period July 23, 2012 to December 31, 2012. (b) For the period April 30, 2012 to December 31, 2012. (c) For the period November 12, 2012 to December 31, 2012. The accompanying notes are an integral part of these financial statements. 22 The accompanying notes are an integral part of these financial statements. 23 METROPOLITAN LIFE SEPARATE ACCOUNT E OF METROPOLITAN LIFE INSURANCE COMPANY STATEMENTS OF OPERATIONS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2012
MIST BLACKROCK MIST CLARION GLOBAL LARGE CAP CORE VARIABLE B VARIABLE C REAL ESTATE INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION ------------------- ------------------- -------------------- ------------------- INVESTMENT INCOME: Dividends.......................... $ 7,474,138 $ 157,852 $ 14,053 $ 4,832,371 ------------------- ------------------- -------------------- ------------------- EXPENSES: Mortality and expense risk charges.......................... 6,142,601 109,033 1,999 2,442,249 Administrative charges............. 1,316,882 -- -- 566,631 ------------------- ------------------- -------------------- ------------------- Total expenses................... 7,459,483 109,033 1,999 3,008,880 ------------------- ------------------- -------------------- ------------------- Net investment income (loss)... 14,655 48,819 12,054 1,823,491 ------------------- ------------------- -------------------- ------------------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions........ -- -- -- -- Realized gains (losses) on sale of investments...................... (9,073,089) (285,497) (606) (6,766,692) ------------------- ------------------- -------------------- ------------------- Net realized gains (losses).... (9,073,089) (285,497) (606) (6,766,692) ------------------- ------------------- -------------------- ------------------- Change in unrealized gains (losses) on investments................... 81,735,276 1,769,469 133,279 55,338,736 ------------------- ------------------- -------------------- ------------------- Net realized and unrealized gains (losses) on investments.......... 72,662,187 1,483,972 132,673 48,572,044 ------------------- ------------------- -------------------- ------------------- Net increase (decrease) in net assets resulting from operations........ $ 72,676,842 $ 1,532,791 $ 144,727 $ 50,395,535 =================== =================== ==================== =================== MIST HARRIS MIST INVESCO MIST DREMAN OAKMARK BALANCED-RISK MIST INVESCO SMALL CAP VALUE INTERNATIONAL ALLOCATION SMALL CAP GROWTH INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION (b) INVESTMENT DIVISION ------------------- ------------------- ----------------------- ------------------- INVESTMENT INCOME: Dividends.......................... $ 97,438 $ 7,037,307 $ 760,045 $ -- ------------------- ------------------- ----------------------- ------------------- EXPENSES: Mortality and expense risk charges.......................... 158,225 4,476,896 840,317 395,677 Administrative charges............. 38,721 1,065,955 205,349 91,184 ------------------- ------------------- ----------------------- ------------------- Total expenses................... 196,946 5,542,851 1,045,666 486,861 ------------------- ------------------- ----------------------- ------------------- Net investment income (loss)... (99,508) 1,494,456 (285,621) (486,861) ------------------- ------------------- ----------------------- ------------------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions........ -- -- 2,752,326 2,367,878 Realized gains (losses) on sale of investments...................... 169,514 (3,011,926) -- 877,002 ------------------- ------------------- ----------------------- ------------------- Net realized gains (losses).... 169,514 (3,011,926) 2,752,326 3,244,880 ------------------- ------------------- ----------------------- ------------------- Change in unrealized gains (losses) on investments................... 1,943,111 110,752,790 3,031,605 2,993,280 ------------------- ------------------- ----------------------- ------------------- Net realized and unrealized gains (losses) on investments.......... 2,112,625 107,740,864 5,783,931 6,238,160 ------------------- ------------------- ----------------------- ------------------- Net increase (decrease) in net assets resulting from operations........ $ 2,013,117 $ 109,235,320 $ 5,498,310 $ 5,751,299 =================== =================== ======================= =================== MIST JPMORGAN GLOBAL ACTIVE MIST JANUS FORTY ALLOCATION INVESTMENT DIVISION INVESTMENT DIVISION (b) ------------------- ----------------------- INVESTMENT INCOME: Dividends.......................... $ 872,727 $ 613,856 ------------------- ----------------------- EXPENSES: Mortality and expense risk charges.......................... 3,822,235 535,032 Administrative charges............. 909,835 131,996 ------------------- ----------------------- Total expenses................... 4,732,070 667,028 ------------------- ----------------------- Net investment income (loss)... (3,859,343) (53,172) ------------------- ----------------------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions........ -- 1,067,588 Realized gains (losses) on sale of investments...................... 4,831,657 -- ------------------- ----------------------- Net realized gains (losses).... 4,831,657 1,067,588 ------------------- ----------------------- Change in unrealized gains (losses) on investments................... 67,185,414 4,304,772 ------------------- ----------------------- Net realized and unrealized gains (losses) on investments.......... 72,017,071 5,372,360 ------------------- ----------------------- Net increase (decrease) in net assets resulting from operations........ $ 68,157,728 $ 5,319,188 =================== =======================
(a) For the period July 23, 2012 to December 31, 2012. (b) For the period April 30, 2012 to December 31, 2012. (c) For the period November 12, 2012 to December 31, 2012. The accompanying notes are an integral part of these financial statements. 24 The accompanying notes are an integral part of these financial statements. 25 METROPOLITAN LIFE SEPARATE ACCOUNT E OF METROPOLITAN LIFE INSURANCE COMPANY STATEMENTS OF OPERATIONS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2012
MIST LEGG MASON CLEARBRIDGE MIST LOOMIS SAYLES MIST LORD ABBETT MIST LORD ABBETT AGGRESSIVE GROWTH GLOBAL MARKETS BOND DEBENTURE MID CAP VALUE INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION (b) ------------------- ------------------- -------------------- ----------------------- INVESTMENT INCOME: Dividends.......................... $ 67,386 $ 656,644 $ 22,567,611 $ -- ------------------- ------------------- -------------------- ----------------------- EXPENSES: Mortality and expense risk charges.......................... 962,118 283,039 3,285,448 3,123,457 Administrative charges............. 221,646 69,502 759,692 712,812 ------------------- ------------------- -------------------- ----------------------- Total expenses................... 1,183,764 352,541 4,045,140 3,836,269 ------------------- ------------------- -------------------- ----------------------- Net investment income (loss)... (1,116,378) 304,103 18,522,471 (3,836,269) ------------------- ------------------- -------------------- ----------------------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions........ -- -- -- -- Realized gains (losses) on sale of investments...................... 1,587,040 427,349 2,160,277 (989,154) ------------------- ------------------- -------------------- ----------------------- Net realized gains (losses).... 1,587,040 427,349 2,160,277 (989,154) ------------------- ------------------- -------------------- ----------------------- Change in unrealized gains (losses) on investments................... 13,460,409 3,035,366 13,383,268 14,947,335 ------------------- ------------------- -------------------- ----------------------- Net realized and unrealized gains (losses) on investments.......... 15,047,449 3,462,715 15,543,545 13,958,181 ------------------- ------------------- -------------------- ----------------------- Net increase (decrease) in net assets resulting from operations........ $ 13,931,071 $ 3,766,818 $ 34,066,016 $ 10,121,912 =================== =================== ==================== ======================= MIST MET/FRANKLIN MIST MET/EATON MIST MET/FRANKLIN LOW DURATION MIST MET/FRANKLIN VANCE FLOATING RATE INCOME TOTAL RETURN MUTUAL SHARES INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION ------------------- ------------------- ------------------- -------------------- INVESTMENT INCOME: Dividends.......................... $ 213,489 $ 4,453,938 $ 194,147 $ 309,282 ------------------- ------------------- ------------------- -------------------- EXPENSES: Mortality and expense risk charges.......................... 65,614 962,743 118,445 553,206 Administrative charges............. 16,370 226,673 28,319 135,322 ------------------- ------------------- ------------------- -------------------- Total expenses................... 81,984 1,189,416 146,764 688,528 ------------------- ------------------- ------------------- -------------------- Net investment income (loss)... 131,505 3,264,522 47,383 (379,246) ------------------- ------------------- ------------------- -------------------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions........ 18,121 1,921,254 -- 9,398,020 Realized gains (losses) on sale of investments...................... 18,901 375,078 18,836 (336,790) ------------------- ------------------- ------------------- -------------------- Net realized gains (losses).... 37,022 2,296,332 18,836 9,061,230 ------------------- ------------------- ------------------- -------------------- Change in unrealized gains (losses) on investments................... 202,510 3,864,031 235,611 (2,341,070) ------------------- ------------------- ------------------- -------------------- Net realized and unrealized gains (losses) on investments.......... 239,532 6,160,363 254,447 6,720,160 ------------------- ------------------- ------------------- -------------------- Net increase (decrease) in net assets resulting from operations........ $ 371,037 $ 9,424,885 $ 301,830 $ 6,340,914 =================== =================== =================== ==================== MIST MET/FRANKLIN TEMPLETON FOUNDING MIST MET/TEMPLETON STRATEGY GROWTH INVESTMENT DIVISION INVESTMENT DIVISION ------------------- ------------------- INVESTMENT INCOME: Dividends.......................... $ 2,525,949 $ 384,594 ------------------- ------------------- EXPENSES: Mortality and expense risk charges.......................... 655,374 251,114 Administrative charges............. 156,513 60,360 ------------------- ------------------- Total expenses................... 811,887 311,474 ------------------- ------------------- Net investment income (loss)... 1,714,062 73,120 ------------------- ------------------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions........ 1,036,131 898,378 Realized gains (losses) on sale of investments...................... 1,095,125 326,580 ------------------- ------------------- Net realized gains (losses).... 2,131,256 1,224,958 ------------------- ------------------- Change in unrealized gains (losses) on investments................... 4,634,029 3,299,357 ------------------- ------------------- Net realized and unrealized gains (losses) on investments.......... 6,765,285 4,524,315 ------------------- ------------------- Net increase (decrease) in net assets resulting from operations........ $ 8,479,347 $ 4,597,435 =================== ===================
(a) For the period July 23, 2012 to December 31, 2012. (b) For the period April 30, 2012 to December 31, 2012. (c) For the period November 12, 2012 to December 31, 2012. The accompanying notes are an integral part of these financial statements. 26 The accompanying notes are an integral part of these financial statements. 27 METROPOLITAN LIFE SEPARATE ACCOUNT E OF METROPOLITAN LIFE INSURANCE COMPANY STATEMENTS OF OPERATIONS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2012
MIST METLIFE MIST MET/TEMPLETON MIST METLIFE MIST METLIFE MULTI-INDEX INTERNATIONAL BOND AGGRESSIVE STRATEGY BALANCED PLUS TARGETED RISK INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION (c) ------------------- ------------------- ------------------- ----------------------- INVESTMENT INCOME: Dividends......................... $ 805,070 $ 781,463 $ 1,340 $ -- ------------------- ------------------- ------------------- ----------------------- EXPENSES: Mortality and expense risk charges......................... 82,129 1,136,845 10,762,309 3,720 Administrative charges............ 20,362 266,923 2,697,217 850 ------------------- ------------------- ------------------- ----------------------- Total expenses.................. 102,491 1,403,768 13,459,526 4,570 ------------------- ------------------- ------------------- ----------------------- Net investment income (loss).. 702,579 (622,305) (13,458,186) (4,570) ------------------- ------------------- ------------------- ----------------------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions....... -- -- -- -- Realized gains (losses) on sale of investments..................... (49,304) (642,177) -- -- ------------------- ------------------- ------------------- ----------------------- Net realized gains (losses)... (49,304) (642,177) -- -- ------------------- ------------------- ------------------- ----------------------- Change in unrealized gains (losses) on investments.................. 311,532 16,987,540 125,203,535 57,330 ------------------- ------------------- ------------------- ----------------------- Net realized and unrealized gains (losses) on investments......... 262,228 16,345,363 125,203,535 57,330 ------------------- ------------------- ------------------- ----------------------- Net increase (decrease) in net assets resulting from operations....... $ 964,807 $ 15,723,058 $ 111,745,349 $ 52,760 =================== =================== =================== ======================= MIST MFS EMERGING MIST MFS RESEARCH MIST MLA MIST MORGAN STANLEY MARKETS EQUITY INTERNATIONAL MID CAP MID CAP GROWTH INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION -------------------- ------------------- ------------------- ------------------- INVESTMENT INCOME: Dividends......................... $ 348,854 $ 4,507,766 $ 249,130 $ -- -------------------- ------------------- ------------------- ------------------- EXPENSES: Mortality and expense risk charges......................... 477,412 2,275,311 585,916 3,477,047 Administrative charges............ 118,220 559,490 137,279 733,490 -------------------- ------------------- ------------------- ------------------- Total expenses.................. 595,632 2,834,801 723,195 4,210,537 -------------------- ------------------- ------------------- ------------------- Net investment income (loss).. (246,778) 1,672,965 (474,065) (4,210,537) -------------------- ------------------- ------------------- ------------------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions....... -- -- -- -- Realized gains (losses) on sale of investments..................... 218,578 (4,954,152) (437,579) 5,317,869 -------------------- ------------------- ------------------- ------------------- Net realized gains (losses)... 218,578 (4,954,152) (437,579) 5,317,869 -------------------- ------------------- ------------------- ------------------- Change in unrealized gains (losses) on investments.................. 7,622,252 36,050,862 3,279,524 25,732,223 -------------------- ------------------- ------------------- ------------------- Net realized and unrealized gains (losses) on investments......... 7,840,830 31,096,710 2,841,945 31,050,092 -------------------- ------------------- ------------------- ------------------- Net increase (decrease) in net assets resulting from operations....... $ 7,594,052 $ 32,769,675 $ 2,367,880 $ 26,839,555 ==================== =================== =================== =================== MIST PIMCO INFLATION PROTECTED MIST PIMCO BOND TOTAL RETURN INVESTMENT DIVISION INVESTMENT DIVISION ------------------- ------------------- INVESTMENT INCOME: Dividends......................... $ 20,250,149 $ 37,644,090 ------------------- ------------------- EXPENSES: Mortality and expense risk charges......................... 6,973,912 12,305,436 Administrative charges............ 1,651,215 2,923,704 ------------------- ------------------- Total expenses.................. 8,625,127 15,229,140 ------------------- ------------------- Net investment income (loss).. 11,625,022 22,414,950 ------------------- ------------------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions....... 39,701,534 -- Realized gains (losses) on sale of investments..................... 1,988,208 4,256,169 ------------------- ------------------- Net realized gains (losses)... 41,689,742 4,256,169 ------------------- ------------------- Change in unrealized gains (losses) on investments.................. (3,829,156) 63,295,829 ------------------- ------------------- Net realized and unrealized gains (losses) on investments......... 37,860,586 67,551,998 ------------------- ------------------- Net increase (decrease) in net assets resulting from operations....... $ 49,485,608 $ 89,966,948 =================== ===================
(a) For the period July 23, 2012 to December 31, 2012. (b) For the period April 30, 2012 to December 31, 2012. (c) For the period November 12, 2012 to December 31, 2012. The accompanying notes are an integral part of these financial statements. 28 The accompanying notes are an integral part of these financial statements. 29 METROPOLITAN LIFE SEPARATE ACCOUNT E OF METROPOLITAN LIFE INSURANCE COMPANY STATEMENTS OF OPERATIONS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2012
MIST PIONEER MIST PYRAMIS MIST RCM MIST SCHRODERS STRATEGIC INCOME GOVERNMENT INCOME TECHNOLOGY GLOBAL MULTI-ASSET INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION (b) ------------------- ------------------- ------------------- ----------------------- INVESTMENT INCOME: Dividends.......................... $ 3,053,983 $ 57,698 $ -- $ 932,203 ------------------- ------------------- ------------------- ----------------------- EXPENSES: Mortality and expense risk charges.......................... 677,650 4,144,586 1,503,090 381,713 Administrative charges............. 162,024 1,020,309 344,470 94,027 ------------------- ------------------- ------------------- ----------------------- Total expenses................... 839,674 5,164,895 1,847,560 475,740 ------------------- ------------------- ------------------- ----------------------- Net investment income (loss)... 2,214,309 (5,107,197) (1,847,560) 456,463 ------------------- ------------------- ------------------- ----------------------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions........ 240,096 450,979 16,822,164 2,099,861 Realized gains (losses) on sale of investments...................... 191,695 1,250 1,268,369 -- ------------------- ------------------- ------------------- ----------------------- Net realized gains (losses).... 431,791 452,229 18,090,533 2,099,861 ------------------- ------------------- ------------------- ----------------------- Change in unrealized gains (losses) on investments................... 3,393,104 11,051,029 (1,639,543) 1,345,384 ------------------- ------------------- ------------------- ----------------------- Net realized and unrealized gains (losses) on investments.......... 3,824,895 11,503,258 16,450,990 3,445,245 ------------------- ------------------- ------------------- ----------------------- Net increase (decrease) in net assets resulting from operations........ $ 6,039,204 $ 6,396,061 $ 14,603,430 $ 3,901,708 =================== =================== =================== ======================= MIST SSGA GROWTH MIST SSGA MIST T. ROWE PRICE MIST THIRD AVENUE AND INCOME ETF GROWTH ETF MID CAP GROWTH SMALL CAP VALUE INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION ------------------- ------------------- ------------------- ------------------- INVESTMENT INCOME: Dividends.......................... $ 20,796,408 $ 2,096,643 $ -- $ -- ------------------- ------------------- ------------------- ------------------- EXPENSES: Mortality and expense risk charges.......................... 8,980,543 1,113,107 3,064,589 104,724 Administrative charges............. 2,219,604 269,432 721,899 28,662 ------------------- ------------------- ------------------- ------------------- Total expenses................... 11,200,147 1,382,539 3,786,488 133,386 ------------------- ------------------- ------------------- ------------------- Net investment income (loss)... 9,596,261 714,104 (3,786,488) (133,386) ------------------- ------------------- ------------------- ------------------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions........ 19,388,892 3,913,871 38,138,266 -- Realized gains (losses) on sale of investments...................... 3,637,464 1,983,442 2,839,861 31,460 ------------------- ------------------- ------------------- ------------------- Net realized gains (losses).... 23,026,356 5,897,313 40,978,127 31,460 ------------------- ------------------- ------------------- ------------------- Change in unrealized gains (losses) on investments................... 61,370,103 6,878,957 (3,413,055) 1,819,753 ------------------- ------------------- ------------------- ------------------- Net realized and unrealized gains (losses) on investments.......... 84,396,459 12,776,270 37,565,072 1,851,213 ------------------- ------------------- ------------------- ------------------- Net increase (decrease) in net assets resulting from operations........ $ 93,992,720 $ 13,490,374 $ 33,778,584 $ 1,717,827 =================== =================== =================== =================== MSF BAILLIE GIFFORD MSF BARCLAYS CAPITAL INTERNATIONAL STOCK AGGREGATE BOND INDEX INVESTMENT DIVISION INVESTMENT DIVISION ------------------- -------------------- INVESTMENT INCOME: Dividends.......................... $ 1,952,493 $ 41,354,169 ------------------- -------------------- EXPENSES: Mortality and expense risk charges.......................... 1,587,178 12,097,196 Administrative charges............. 348,704 2,796,416 ------------------- -------------------- Total expenses................... 1,935,882 14,893,612 ------------------- -------------------- Net investment income (loss)... 16,611 26,460,557 ------------------- -------------------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions........ -- -- Realized gains (losses) on sale of investments...................... (6,791,749) 5,346,141 ------------------- -------------------- Net realized gains (losses).... (6,791,749) 5,346,141 ------------------- -------------------- Change in unrealized gains (losses) on investments................... 32,422,529 (4,740,378) ------------------- -------------------- Net realized and unrealized gains (losses) on investments.......... 25,630,780 605,763 ------------------- -------------------- Net increase (decrease) in net assets resulting from operations........ $ 25,647,391 $ 27,066,320 =================== ====================
(a) For the period July 23, 2012 to December 31, 2012. (b) For the period April 30, 2012 to December 31, 2012. (c) For the period November 12, 2012 to December 31, 2012. The accompanying notes are an integral part of these financial statements. 30 The accompanying notes are an integral part of these financial statements. 31 METROPOLITAN LIFE SEPARATE ACCOUNT E OF METROPOLITAN LIFE INSURANCE COMPANY STATEMENTS OF OPERATIONS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2012
MSF BLACKROCK MSF BLACKROCK MSF BLACKROCK MSF BLACKROCK AGGRESSIVE GROWTH BOND INCOME DIVERSIFIED LARGE CAP VALUE INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION ------------------- ------------------- ------------------- ------------------- INVESTMENT INCOME: Dividends.......................... $ -- $ 13,278,492 $ 14,741,054 $ 3,105,382 ------------------- ------------------- ------------------- ------------------- EXPENSES: Mortality and expense risk charges.......................... 4,670,421 5,325,756 6,840,433 2,278,041 Administrative charges............. 955,206 1,222,558 1,336,571 536,729 ------------------- ------------------- ------------------- ------------------- Total expenses................... 5,625,627 6,548,314 8,177,004 2,814,770 ------------------- ------------------- ------------------- ------------------- Net investment income (loss)... (5,625,627) 6,730,178 6,564,050 290,612 ------------------- ------------------- ------------------- ------------------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions........ -- 3,373,763 -- 34,915,120 Realized gains (losses) on sale of investments...................... 12,013,460 2,721,778 3,099,829 (3,299,841) ------------------- ------------------- ------------------- ------------------- Net realized gains (losses).... 12,013,460 6,095,541 3,099,829 31,615,279 ------------------- ------------------- ------------------- ------------------- Change in unrealized gains (losses) on investments................... 35,370,149 17,177,018 57,467,217 (6,267,847) ------------------- ------------------- ------------------- ------------------- Net realized and unrealized gains (losses) on investments.......... 47,383,609 23,272,559 60,567,046 25,347,432 ------------------- ------------------- ------------------- ------------------- Net increase (decrease) in net assets resulting from operations........ $ 41,757,982 $ 30,002,737 $ 67,131,096 $ 25,638,044 =================== =================== =================== =================== MSF BLACKROCK LEGACY LARGE CAP MSF BLACKROCK MSF DAVIS VENTURE MSF FI VALUE GROWTH MONEY MARKET VALUE LEADERS INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION ------------------- ------------------- ------------------- ------------------- INVESTMENT INCOME: Dividends.......................... $ 167,425 $ -- $ 3,728,316 $ 653,345 ------------------- ------------------- ------------------- ------------------- EXPENSES: Mortality and expense risk charges.......................... 1,706,780 951,215 5,836,239 654,946 Administrative charges............. 432,932 230,714 1,408,126 162,426 ------------------- ------------------- ------------------- ------------------- Total expenses................... 2,139,712 1,181,929 7,244,365 817,372 ------------------- ------------------- ------------------- ------------------- Net investment income (loss)... (1,972,287) (1,181,929) (3,516,049) (164,027) ------------------- ------------------- ------------------- ------------------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions........ -- -- -- -- Realized gains (losses) on sale of investments...................... 3,086,608 -- 6,178,240 (2,114,623) ------------------- ------------------- ------------------- ------------------- Net realized gains (losses).... 3,086,608 -- 6,178,240 (2,114,623) ------------------- ------------------- ------------------- ------------------- Change in unrealized gains (losses) on investments................... 18,441,634 -- 57,738,005 10,408,096 ------------------- ------------------- ------------------- ------------------- Net realized and unrealized gains (losses) on investments.......... 21,528,242 -- 63,916,245 8,293,473 ------------------- ------------------- ------------------- ------------------- Net increase (decrease) in net assets resulting from operations........ $ 19,555,955 $ (1,181,929) $ 60,400,196 $ 8,129,446 =================== =================== =================== =================== MSF JENNISON MSF LOOMIS SAYLES GROWTH SMALL CAP CORE INVESTMENT DIVISION INVESTMENT DIVISION ------------------- ------------------- INVESTMENT INCOME: Dividends.......................... $ 65,969 $ -- ------------------- ------------------- EXPENSES: Mortality and expense risk charges.......................... 1,412,924 1,605,316 Administrative charges............. 330,437 397,323 ------------------- ------------------- Total expenses................... 1,743,361 2,002,639 ------------------- ------------------- Net investment income (loss)... (1,677,392) (2,002,639) ------------------- ------------------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions........ 16,957,762 4,007,637 Realized gains (losses) on sale of investments...................... 443,243 2,606,810 ------------------- ------------------- Net realized gains (losses).... 17,401,005 6,614,447 ------------------- ------------------- Change in unrealized gains (losses) on investments................... (6,078,481) 14,438,005 ------------------- ------------------- Net realized and unrealized gains (losses) on investments.......... 11,322,524 21,052,452 ------------------- ------------------- Net increase (decrease) in net assets resulting from operations........ $ 9,645,132 $ 19,049,813 =================== ===================
(a) For the period July 23, 2012 to December 31, 2012. (b) For the period April 30, 2012 to December 31, 2012. (c) For the period November 12, 2012 to December 31, 2012. The accompanying notes are an integral part of these financial statements. 32 The accompanying notes are an integral part of these financial statements. 33 METROPOLITAN LIFE SEPARATE ACCOUNT E OF METROPOLITAN LIFE INSURANCE COMPANY STATEMENTS OF OPERATIONS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2012
MSF MET/DIMENSIONAL MSF METLIFE MSF LOOMIS SAYLES MSF MET/ARTISAN INTERNATIONAL SMALL CONSERVATIVE SMALL CAP GROWTH MID CAP VALUE COMPANY ALLOCATION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION -------------------- ------------------- ------------------- ------------------- INVESTMENT INCOME: Dividends......................... $ -- $ 1,928,404 $ 99,354 $ 17,446,396 -------------------- ------------------- ------------------- ------------------- EXPENSES: Mortality and expense risk charges......................... 466,565 2,224,238 47,004 5,892,818 Administrative charges............ 105,258 518,483 11,507 1,388,030 -------------------- ------------------- ------------------- ------------------- Total expenses.................. 571,823 2,742,721 58,511 7,280,848 -------------------- ------------------- ------------------- ------------------- Net investment income (loss).. (571,823) (814,317) 40,843 10,165,548 -------------------- ------------------- ------------------- ------------------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions....... -- -- 422,174 14,432,530 Realized gains (losses) on sale of investments..................... 1,379,303 (3,945,332) (63,045) 2,500,628 -------------------- ------------------- ------------------- ------------------- Net realized gains (losses)... 1,379,303 (3,945,332) 359,129 16,933,158 -------------------- ------------------- ------------------- ------------------- Change in unrealized gains (losses) on investments.................. 3,377,539 25,829,066 309,208 14,328,509 -------------------- ------------------- ------------------- ------------------- Net realized and unrealized gains (losses) on investments......... 4,756,842 21,883,734 668,337 31,261,667 -------------------- ------------------- ------------------- ------------------- Net increase (decrease) in net assets resulting from operations....... $ 4,185,019 $ 21,069,417 $ 709,180 $ 41,427,215 ==================== =================== =================== =================== MSF METLIFE MSF METLIFE CONSERVATIVE TO MSF METLIFE MSF METLIFE MODERATE TO MODERATE ALLOCATION MID CAP STOCK INDEX MODERATE ALLOCATION AGGRESSIVE ALLOCATION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION ------------------- ------------------- ------------------- --------------------- INVESTMENT INCOME: Dividends......................... $ 39,733,359 $ 3,444,979 $ 88,637,036 $ 30,986,144 ------------------- ------------------- ------------------- --------------------- EXPENSES: Mortality and expense risk charges......................... 14,389,975 4,224,568 39,613,964 16,848,918 Administrative charges............ 3,424,210 972,398 9,551,413 3,991,491 ------------------- ------------------- ------------------- --------------------- Total expenses.................. 17,814,185 5,196,966 49,165,377 20,840,409 ------------------- ------------------- ------------------- --------------------- Net investment income (loss).. 21,919,174 (1,751,987) 39,471,659 10,145,735 ------------------- ------------------- ------------------- --------------------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions....... 4,282,243 17,271,833 -- -- Realized gains (losses) on sale of investments..................... 8,351,957 4,932,921 16,872,995 4,305,789 ------------------- ------------------- ------------------- --------------------- Net realized gains (losses)... 12,634,200 22,204,754 16,872,995 4,305,789 ------------------- ------------------- ------------------- --------------------- Change in unrealized gains (losses) on investments.................. 96,305,018 39,972,595 364,883,546 193,493,795 ------------------- ------------------- ------------------- --------------------- Net realized and unrealized gains (losses) on investments......... 108,939,218 62,177,349 381,756,541 197,799,584 ------------------- ------------------- ------------------- --------------------- Net increase (decrease) in net assets resulting from operations....... $ 130,858,392 $ 60,425,362 $ 421,228,200 $ 207,945,319 =================== =================== =================== ===================== MSF METLIFE MSF MFS TOTAL STOCK INDEX RETURN INVESTMENT DIVISION INVESTMENT DIVISION ------------------- ------------------- INVESTMENT INCOME: Dividends......................... $ 44,797,401 $ 3,841,350 ------------------- ------------------- EXPENSES: Mortality and expense risk charges......................... 27,218,739 1,349,714 Administrative charges............ 5,874,854 359,351 ------------------- ------------------- Total expenses.................. 33,093,593 1,709,065 ------------------- ------------------- Net investment income (loss).. 11,703,808 2,132,285 ------------------- ------------------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions....... 19,058,670 -- Realized gains (losses) on sale of investments..................... 25,708,796 58,717 ------------------- ------------------- Net realized gains (losses)... 44,767,466 58,717 ------------------- ------------------- Change in unrealized gains (losses) on investments.................. 291,800,764 11,139,859 ------------------- ------------------- Net realized and unrealized gains (losses) on investments......... 336,568,230 11,198,576 ------------------- ------------------- Net increase (decrease) in net assets resulting from operations....... $ 348,272,038 $ 13,330,861 =================== ===================
(a) For the period July 23, 2012 to December 31, 2012. (b) For the period April 30, 2012 to December 31, 2012. (c) For the period November 12, 2012 to December 31, 2012. The accompanying notes are an integral part of these financial statements. 34 The accompanying notes are an integral part of these financial statements. 35 METROPOLITAN LIFE SEPARATE ACCOUNT E OF METROPOLITAN LIFE INSURANCE COMPANY STATEMENTS OF OPERATIONS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2012
MSF MSCI MSF NEUBERGER MSF OPPENHEIMER MSF MFS VALUE EAFE INDEX BERMAN GENESIS GLOBAL EQUITY INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION ------------------- ------------------- ------------------- ------------------- INVESTMENT INCOME: Dividends.......................... $ 5,235,647 $ 13,209,025 $ 696,624 $ 3,230,890 ------------------- ------------------- ------------------- ------------------- EXPENSES: Mortality and expense risk charges.......................... 2,991,911 4,727,623 2,719,485 2,159,967 Administrative charges............. 673,756 1,091,128 600,906 480,330 ------------------- ------------------- ------------------- ------------------- Total expenses................... 3,665,667 5,818,751 3,320,391 2,640,297 ------------------- ------------------- ------------------- ------------------- Net investment income (loss)... 1,569,980 7,390,274 (2,623,767) 590,593 ------------------- ------------------- ------------------- ------------------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions........ 4,025,019 -- -- -- Realized gains (losses) on sale of investments...................... 1,641,232 (2,119,320) (7,774,684) 2,956,134 ------------------- ------------------- ------------------- ------------------- Net realized gains (losses).... 5,666,251 (2,119,320) (7,774,684) 2,956,134 ------------------- ------------------- ------------------- ------------------- Change in unrealized gains (losses) on investments................... 32,844,990 66,509,457 31,782,193 34,846,367 ------------------- ------------------- ------------------- ------------------- Net realized and unrealized gains (losses) on investments.......... 38,511,241 64,390,137 24,007,509 37,802,501 ------------------- ------------------- ------------------- ------------------- Net increase (decrease) in net assets resulting from operations........ $ 40,081,221 $ 71,780,411 $ 21,383,742 $ 38,393,094 =================== =================== =================== =================== MSF RUSSELL 2000 MSF T. ROWE PRICE MSF T. ROWE PRICE MSF VAN ECK GLOBAL INDEX LARGE CAP GROWTH SMALL CAP GROWTH NATURAL RESOURCES INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION ------------------- ------------------- ------------------- ------------------- INVESTMENT INCOME: Dividends.......................... $ 2,725,278 $ 113,876 $ -- $ -- ------------------- ------------------- ------------------- ------------------- EXPENSES: Mortality and expense risk charges.......................... 2,723,884 2,030,600 2,889,564 402,462 Administrative charges............. 616,464 432,961 638,194 99,649 ------------------- ------------------- ------------------- ------------------- Total expenses................... 3,340,348 2,463,561 3,527,758 502,111 ------------------- ------------------- ------------------- ------------------- Net investment income (loss)... (615,070) (2,349,685) (3,527,758) (502,111) ------------------- ------------------- ------------------- ------------------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions........ -- -- 28,332,128 2,745,329 Realized gains (losses) on sale of investments...................... 4,517,799 7,734,292 7,911,997 (537,853) ------------------- ------------------- ------------------- ------------------- Net realized gains (losses).... 4,517,799 7,734,292 36,244,125 2,207,476 ------------------- ------------------- ------------------- ------------------- Change in unrealized gains (losses) on investments................... 32,651,591 24,747,725 5,484,801 (930,623) ------------------- ------------------- ------------------- ------------------- Net realized and unrealized gains (losses) on investments.......... 37,169,390 32,482,017 41,728,926 1,276,853 ------------------- ------------------- ------------------- ------------------- Net increase (decrease) in net assets resulting from operations........ $ 36,554,320 $ 30,132,332 $ 38,201,168 $ 774,742 =================== =================== =================== =================== MSF WESTERN ASSET MSF WESTERN ASSET MANAGEMENT STRATEGIC MANAGEMENT BOND OPPORTUNITIES U.S. GOVERNMENT INVESTMENT DIVISION INVESTMENT DIVISION -------------------- -------------------- INVESTMENT INCOME: Dividends.......................... $ 8,874,403 $ 4,534,879 -------------------- -------------------- EXPENSES: Mortality and expense risk charges.......................... 2,665,712 2,456,321 Administrative charges............. 619,389 577,209 -------------------- -------------------- Total expenses................... 3,285,101 3,033,530 -------------------- -------------------- Net investment income (loss)... 5,589,302 1,501,349 -------------------- -------------------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions........ -- -- Realized gains (losses) on sale of investments...................... 3,195,133 350,010 -------------------- -------------------- Net realized gains (losses).... 3,195,133 350,010 -------------------- -------------------- Change in unrealized gains (losses) on investments................... 15,183,806 2,356,488 -------------------- -------------------- Net realized and unrealized gains (losses) on investments.......... 18,378,939 2,706,498 -------------------- -------------------- Net increase (decrease) in net assets resulting from operations........ $ 23,968,241 $ 4,207,847 ==================== ====================
(a) For the period July 23, 2012 to December 31, 2012. (b) For the period April 30, 2012 to December 31, 2012. (c) For the period November 12, 2012 to December 31, 2012. The accompanying notes are an integral part of these financial statements. 36 The accompanying notes are an integral part of these financial statements. 37 METROPOLITAN LIFE SEPARATE ACCOUNT E OF METROPOLITAN LIFE INSURANCE COMPANY STATEMENTS OF OPERATIONS -- (CONCLUDED) FOR THE YEAR ENDED DECEMBER 31, 2012
MSF ZENITH EQUITY INVESTMENT DIVISION -------------------- INVESTMENT INCOME: Dividends............................................................................................. $ 621,766 -------------------- EXPENSES: Mortality and expense risk charges............................................................................................. 642,700 Administrative charges................................................................................ 270,615 -------------------- Total expenses...................................................................................... 913,315 -------------------- Net investment income (loss)...................................................................... (291,549) -------------------- NET REALIZED AND CHANGE IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions........................................................................... -- Realized gains (losses) on sale of investments......................................................................................... (1,334,514) -------------------- Net realized gains (losses)....................................................................... (1,334,514) -------------------- Change in unrealized gains (losses) on investments...................................................................................... 9,621,752 -------------------- Net realized and change in unrealized gains (losses) on investments............................................................................. 8,287,238 -------------------- Net increase (decrease) in net assets resulting from operations........................................................................... $ 7,995,689 ====================
(a) For the period July 23, 2012 to December 31, 2012. (b) For the period April 30, 2012 to December 31, 2012. (c) For the period November 12, 2012 to December 31, 2012. The accompanying notes are an integral part of these financial statements. 38 This page is intentionally left blank. METROPOLITAN LIFE SEPARATE ACCOUNT E OF METROPOLITAN LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS FOR THE YEARS ENDED DECEMBER 31, 2012 AND 2011
AMERICAN FUNDS GLOBAL AMERICAN FUNDS BOND SMALL CAPITALIZATION AMERICAN FUNDS GROWTH INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION --------------------------------- --------------------------------- -------------------------------- 2012 2011 2012 2011 2012 2011 --------------- ---------------- --------------- --------------- --------------- --------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)................. $ 1,226,740 $ 1,912,904 $ (661,800) $ (722,693) $ (6,647,266) $ (8,942,002) Net realized gains (losses)............... 266,155 (481,200) (6,163,348) (1,937,100) 14,472,720 8,178,841 Change in unrealized gains (losses) on investments............ 3,480,606 4,732,695 84,682,889 (121,022,693) 139,843,502 (55,277,508) --------------- ---------------- --------------- --------------- --------------- --------------- Net increase (decrease) in net assets resulting from operations...... 4,973,501 6,164,399 77,857,741 (123,682,486) 147,668,956 (56,040,669) --------------- ---------------- --------------- --------------- --------------- --------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners................. 4,128,914 4,605,981 22,634,426 38,959,482 36,424,834 39,620,489 Net transfers (including fixed account)......... 572,372 (9,468,083) (33,916,026) (14,713,325) (54,560,994) (45,406,318) Contract charges......... (457,829) (463,334) (2,140,070) (1,922,053) (2,793,517) (2,746,185) Transfers for contract benefits and terminations........... (13,061,612) (13,214,005) (41,100,071) (47,884,031) (91,544,498) (96,681,685) --------------- ---------------- --------------- --------------- --------------- --------------- Net increase (decrease) in net assets resulting from contract transactions......... (8,818,155) (18,539,441) (54,521,741) (25,559,927) (112,474,175) (105,213,699) --------------- ---------------- --------------- --------------- --------------- --------------- Net increase (decrease) in net assets........ (3,844,654) (12,375,042) 23,336,000 (149,242,413) 35,194,781 (161,254,368) NET ASSETS: Beginning of year........ 132,354,078 144,729,120 488,925,353 638,167,766 943,068,284 1,104,322,652 --------------- ---------------- --------------- --------------- --------------- --------------- End of year.............. $ 128,509,424 $ 132,354,078 $ 512,261,353 $ 488,925,353 $ 978,263,065 $ 943,068,284 =============== ================ =============== =============== =============== =============== AMERICAN FUNDS GROWTH-INCOME CALVERT VP SRI BALANCED CALVERT VP SRI MID CAP GROWTH INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION --------------------------------- -------------------------------- -------------------------------- 2012 2011 2012 2011 2012 2011 --------------- ---------------- --------------- --------------- --------------- --------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)................. $ 1,005,734 $ 680,250 $ 27,291 $ 74,111 $ (112,828) $ (115,821) Net realized gains (losses)............... 5,144,694 (497,604) 104,232 (290,776) 1,845,407 1,397,230 Change in unrealized gains (losses) on investments............ 99,450,526 (23,849,987) 4,434,485 1,902,701 (35,037) (1,100,516) --------------- ---------------- --------------- --------------- --------------- --------------- Net increase (decrease) in net assets resulting from operations...... 105,600,954 (23,667,341) 4,566,008 1,686,036 1,697,542 180,893 --------------- ---------------- --------------- --------------- --------------- --------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners................. 30,083,901 52,889,395 2,678,906 2,864,634 686,328 642,249 Net transfers (including fixed account)......... (27,967,310) (10,212,170) (512,039) (1,098,691) (33,010) 390,259 Contract charges......... (2,697,155) (2,239,908) (17,135) (14,863) (1,604) (1,911) Transfers for contract benefits and terminations........... (66,433,364) (65,594,062) (4,972,222) (4,400,030) (1,306,442) (2,147,199) --------------- ---------------- --------------- --------------- --------------- --------------- Net increase (decrease) in net assets resulting from contract transactions......... (67,013,928) (25,156,745) (2,822,490) (2,648,950) (654,728) (1,116,602) --------------- ---------------- --------------- --------------- --------------- --------------- Net increase (decrease) in net assets........ 38,587,026 (48,824,086) 1,743,518 (962,914) 1,042,814 (935,709) NET ASSETS: Beginning of year........ 689,767,422 738,591,508 49,903,373 50,866,287 11,298,697 12,234,406 --------------- ---------------- --------------- --------------- --------------- --------------- End of year.............. $ 728,354,448 $ 689,767,422 $ 51,646,891 $ 49,903,373 $ 12,341,511 $ 11,298,697 =============== ================ =============== =============== =============== =============== FIDELITY VIP EQUITY-INCOME INVESTMENT DIVISION -------------------------------- 2012 2011 --------------- --------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)................. $ 1,662,249 $ 1,141,342 Net realized gains (losses)............... 4,003,454 (2,749,961) Change in unrealized gains (losses) on investments............ 6,399,620 1,511,658 --------------- --------------- Net increase (decrease) in net assets resulting from operations...... 12,065,323 (96,961) --------------- --------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners................. 2,046,429 2,401,575 Net transfers (including fixed account)......... (1,584,690) (1,577,272) Contract charges......... (17,945) (20,303) Transfers for contract benefits and terminations........... (8,699,641) (14,171,358) --------------- --------------- Net increase (decrease) in net assets resulting from contract transactions......... (8,255,847) (13,367,358) --------------- --------------- Net increase (decrease) in net assets........ 3,809,476 (13,464,319) NET ASSETS: Beginning of year........ 78,185,094 91,649,413 --------------- --------------- End of year.............. $ 81,994,570 $ 78,185,094 =============== ===============
(a) For the period July 23, 2012 to December 31, 2012. (b) For the period May 2, 2011 to December 31, 2011. (c) For the period April 30, 2012 to December 31, 2012. (d) For the period November 12, 2012 to December 31, 2012. The accompanying notes are an integral part of these financial statements. 40 The accompanying notes are an integral part of these financial statements. 41 METROPOLITAN LIFE SEPARATE ACCOUNT E OF METROPOLITAN LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEARS ENDED DECEMBER 31, 2012 AND 2011
FIDELITY VIP FUNDSMANAGER 50% FIDELITY VIP FUNDSMANAGER 60% FIDELITY VIP GROWTH INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION ------------------- -------------------------------- -------------------------------- 2012 (a) 2012 2011 2012 2011 --------------- --------------- --------------- --------------- --------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)............. $ 242,407 $ (1,108,597) $ (79,777) $ (292,557) $ (517,744) Net realized gains (losses).............. 73,771 1,541,458 557,081 486,197 (518,647) Change in unrealized gains (losses) on investments............................ (62,811) 20,145,096 (7,937,164) 9,885,221 505,122 --------------- --------------- --------------- --------------- --------------- Net increase (decrease) in net assets resulting from operations............ 253,367 20,577,957 (7,459,860) 10,078,861 (531,269) --------------- --------------- --------------- --------------- --------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners................................. 105,071 109,981 556,880 2,385,678 2,599,413 Net transfers (including fixed account).. 28,032,757 54,494,212 110,365,710 (2,251,319) (2,458,152) Contract charges......................... -- -- -- (3,356) (4,018) Transfers for contract benefits and terminations........................... (76,022) (13,376,586) (4,893,840) (7,160,185) (14,018,654) --------------- --------------- --------------- --------------- --------------- Net increase (decrease) in net assets resulting from contract transactions. 28,061,806 41,227,607 106,028,750 (7,029,182) (13,881,411) --------------- --------------- --------------- --------------- --------------- Net increase (decrease) in net assets.. 28,315,173 61,805,564 98,568,890 3,049,679 (14,412,680) NET ASSETS: Beginning of year........................ -- 198,202,397 99,633,507 74,754,203 89,166,883 --------------- --------------- --------------- --------------- --------------- End of year.............................. $ 28,315,173 $ 260,007,961 $ 198,202,397 $ 77,803,882 $ 74,754,203 =============== =============== =============== =============== =============== FIDELITY VIP INVESTMENT GRADE BOND FIDELITY VIP MONEY MARKET INVESTMENT DIVISION INVESTMENT DIVISION ---------------------------------- -------------------------------- 2012 2011 2012 2011 --------------- ---------------- --------------- --------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)............. $ 305,644 $ 478,696 $ (125,112) $ (162,831) Net realized gains (losses).............. 695,555 716,735 -- -- Change in unrealized gains (losses) on investments............................ 38,191 124,265 -- -- --------------- ---------------- --------------- --------------- Net increase (decrease) in net assets resulting from operations............ 1,039,390 1,319,696 (125,112) (162,831) --------------- ---------------- --------------- --------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners................................. 1,626,125 1,569,362 82,242,105 112,128,554 Net transfers (including fixed account).. 15,385 17,672 (84,085,005) (109,363,322) Contract charges......................... (1,171) (1,524) -- -- Transfers for contract benefits and terminations........................... (1,800,199) (3,661,147) (1,475,274) (2,686,183) --------------- ---------------- --------------- --------------- Net increase (decrease) in net assets resulting from contract transactions. (159,860) (2,075,637) (3,318,174) 79,049 --------------- ---------------- --------------- --------------- Net increase (decrease) in net assets.. 879,530 (755,941) (3,443,286) (83,782) NET ASSETS: Beginning of year........................ 21,398,778 22,154,719 12,168,038 12,251,820 --------------- ---------------- --------------- --------------- End of year.............................. $ 22,278,308 $ 21,398,778 $ 8,724,752 $ 12,168,038 =============== ================ =============== =============== MIST ALLIANCEBERNSTEIN GLOBAL MIST AMERICAN FUNDS DYNAMIC ALLOCATION BALANCED ALLOCATION INVESTMENT DIVISION INVESTMENT DIVISION -------------------------------- -------------------------------- 2012 2011 (b) 2012 2011 --------------- --------------- --------------- --------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)............. $ (9,844,946) $ 335,670 $ 2,751,307 $ (45,493) Net realized gains (losses).............. 16,141 2,726,233 12,154,078 2,539,215 Change in unrealized gains (losses) on investments............................ 77,778,755 2,398,335 59,750,875 (26,212,914) --------------- --------------- --------------- --------------- Net increase (decrease) in net assets resulting from operations............ 67,949,950 5,460,238 74,656,260 (23,719,192) --------------- --------------- --------------- --------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners................................. 483,567,379 413,385,545 33,549,363 110,824,096 Net transfers (including fixed account).. 160,408,963 62,687,480 (8,794,522) 19,902,322 Contract charges......................... (7,597,854) -- (6,379,077) (4,833,472) Transfers for contract benefits and terminations........................... (18,126,672) (1,741,537) (28,341,447) (23,073,710) --------------- --------------- --------------- --------------- Net increase (decrease) in net assets resulting from contract transactions. 618,251,816 474,331,488 (9,965,683) 102,819,236 --------------- --------------- --------------- --------------- Net increase (decrease) in net assets.. 686,201,766 479,791,726 64,690,577 79,100,044 NET ASSETS: Beginning of year........................ 479,791,726 -- 618,948,646 539,848,602 --------------- --------------- --------------- --------------- End of year.............................. $ 1,165,993,492 $ 479,791,726 $ 683,639,223 $ 618,948,646 =============== =============== =============== ===============
(a) For the period July 23, 2012 to December 31, 2012. (b) For the period May 2, 2011 to December 31, 2011. (c) For the period April 30, 2012 to December 31, 2012. (d) For the period November 12, 2012 to December 31, 2012. The accompanying notes are an integral part of these financial statements. 42 The accompanying notes are an integral part of these financial statements. 43 METROPOLITAN LIFE SEPARATE ACCOUNT E OF METROPOLITAN LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEARS ENDED DECEMBER 31, 2012 AND 2011
MIST AMERICAN FUNDS MIST AMERICAN FUNDS BOND GROWTH ALLOCATION MIST AMERICAN FUNDS GROWTH INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION -------------------------------- -------------------------------- -------------------------------- 2012 2011 2012 2011 2012 2011 --------------- --------------- --------------- --------------- --------------- --------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)................. $ 1,082,936 $ 642,517 $ (292,967) $ (580,718) $ (2,830,545) $ (2,310,704) Net realized gains (losses)............... 837,862 294,003 6,444,719 7,429,105 3,554,363 291,118 Change in unrealized gains (losses) on investments............ 1,074,290 2,430,315 37,485,893 (26,279,387) 42,616,835 (15,352,098) --------------- --------------- --------------- --------------- --------------- --------------- Net increase (decrease) in net assets resulting from operations...... 2,995,088 3,366,835 43,637,645 (19,431,000) 43,340,653 (17,371,684) --------------- --------------- --------------- --------------- --------------- --------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners................. 6,824,359 17,470,892 16,703,442 22,562,960 22,040,789 68,751,380 Net transfers (including fixed account)......... 4,697,478 893,819 (11,618,323) (14,464,295) (11,167,666) 26,166,684 Contract charges......... (858,233) (625,233) (2,628,508) (2,458,404) (2,850,873) (1,871,942) Transfers for contract benefits and terminations........... (4,173,223) (3,193,810) (16,310,347) (15,077,691) (11,138,814) (7,621,585) --------------- --------------- --------------- --------------- --------------- --------------- Net increase (decrease) in net assets resulting from contract transactions......... 6,490,381 14,545,668 (13,853,736) (9,437,430) (3,116,564) 85,424,537 --------------- --------------- --------------- --------------- --------------- --------------- Net increase (decrease) in net assets........ 9,485,469 17,912,503 29,783,909 (28,868,430) 40,224,089 68,052,853 NET ASSETS: Beginning of year........ 79,806,796 61,894,293 303,484,652 332,353,082 269,245,330 201,192,477 --------------- --------------- --------------- --------------- --------------- --------------- End of year.............. $ 89,292,265 $ 79,806,796 $ 333,268,561 $ 303,484,652 $ 309,469,419 $ 269,245,330 =============== =============== =============== =============== =============== =============== MIST AMERICAN FUNDS MIST BLACKROCK MODERATE ALLOCATION MIST AQR GLOBAL RISK BALANCED GLOBAL TACTICAL STRATEGIES INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION -------------------------------- -------------------------------- -------------------------------- 2012 2011 2012 2011 (b) 2012 2011 (b) --------------- --------------- --------------- --------------- --------------- --------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)................. $ 6,858,255 $ 2,292,257 $ (9,840,331) $ 6,134,076 $ (14,865,495) $ 2,136,468 Net realized gains (losses)............... 19,300,150 6,758,545 5,051,634 1,769,075 16,226 5,360,049 Change in unrealized gains (losses) on investments............ 54,196,167 (19,966,753) 101,946,589 5,327,552 101,463,947 (6,803,039) --------------- --------------- --------------- --------------- --------------- --------------- Net increase (decrease) in net assets resulting from operations...... 80,354,572 (10,915,951) 97,157,892 13,230,703 86,614,678 693,478 --------------- --------------- --------------- --------------- --------------- --------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners................. 38,958,844 128,104,989 778,030,594 512,377,832 665,601,215 629,143,144 Net transfers (including fixed account)......... (13,050,873) 20,511,116 299,538,879 75,719,475 176,709,034 82,864,472 Contract charges......... (8,554,742) (6,918,596) (9,908,882) -- (10,860,800) -- Transfers for contract benefits and terminations........... (46,203,829) (36,334,226) (26,670,573) (2,160,152) (24,646,275) (2,938,000) --------------- --------------- --------------- --------------- --------------- --------------- Net increase (decrease) in net assets resulting from contract transactions......... (28,850,600) 105,363,283 1,040,990,018 585,937,155 806,803,174 709,069,616 --------------- --------------- --------------- --------------- --------------- --------------- Net increase (decrease) in net assets........ 51,503,972 94,447,332 1,138,147,910 599,167,858 893,417,852 709,763,094 NET ASSETS: Beginning of year........ 857,229,344 762,782,012 599,167,858 -- 709,763,094 -- --------------- --------------- --------------- --------------- --------------- --------------- End of year.............. $ 908,733,316 $ 857,229,344 $ 1,737,315,768 $ 599,167,858 $ 1,603,180,946 $ 709,763,094 =============== =============== =============== =============== =============== =============== MIST BLACKROCK LARGE CAP CORE INVESTMENT DIVISION -------------------------------- 2012 2011 --------------- --------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)................. $ 14,655 $ (454,121) Net realized gains (losses)............... (9,073,089) (15,466,300) Change in unrealized gains (losses) on investments............ 81,735,276 12,686,156 --------------- --------------- Net increase (decrease) in net assets resulting from operations...... 72,676,842 (3,234,265) --------------- --------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners................. 16,618,121 25,161,138 Net transfers (including fixed account)......... (19,633,032) (6,231,167) Contract charges......... (686,182) (464,397) Transfers for contract benefits and terminations........... (60,065,049) (64,881,338) --------------- --------------- Net increase (decrease) in net assets resulting from contract transactions......... (63,766,142) (46,415,764) --------------- --------------- Net increase (decrease) in net assets........ 8,910,700 (49,650,029) NET ASSETS: Beginning of year........ 607,789,646 657,439,675 --------------- --------------- End of year.............. $ 616,700,346 $ 607,789,646 =============== ===============
(a) For the period July 23, 2012 to December 31, 2012. (b) For the period May 2, 2011 to December 31, 2011. (c) For the period April 30, 2012 to December 31, 2012. (d) For the period November 12, 2012 to December 31, 2012. The accompanying notes are an integral part of these financial statements. 44 The accompanying notes are an integral part of these financial statements. 45 METROPOLITAN LIFE SEPARATE ACCOUNT E OF METROPOLITAN LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEARS ENDED DECEMBER 31, 2012 AND 2011
VARIABLE B VARIABLE C MIST CLARION GLOBAL REAL ESTATE INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION -------------------------------- --------------------------------- -------------------------------- 2012 2011 2012 2011 2012 2011 --------------- --------------- ---------------- ---------------- --------------- --------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)................. $ 48,819 $ 30,420 $ 12,054 $ 10,413 $ 1,823,491 $ 5,894,357 Net realized gains (losses)............... (285,497) (458,462) (606) (3,391) (6,766,692) (5,517,197) Change in unrealized gains (losses) on investments............ 1,769,469 358,894 133,279 (3,100) 55,338,736 (15,609,550) --------------- --------------- ---------------- ---------------- --------------- --------------- Net increase (decrease) in net assets resulting from operations...... 1,532,791 (69,148) 144,727 3,922 50,395,535 (15,232,390) --------------- --------------- ---------------- ---------------- --------------- --------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners................. 2,946 1,076 -- -- 10,605,785 16,058,809 Net transfers (including fixed account)......... -- -- -- -- (8,764,482) 2,947,656 Contract charges......... -- -- -- -- (972,403) (792,701) Transfers for contract benefits and terminations........... (1,616,416) (1,703,485) (1,890) (15,916) (19,748,632) (17,651,756) --------------- --------------- ---------------- ---------------- --------------- --------------- Net increase (decrease) in net assets resulting from contract transactions......... (1,613,470) (1,702,409) (1,890) (15,916) (18,879,732) 562,008 --------------- --------------- ---------------- ---------------- --------------- --------------- Net increase (decrease) in net assets........ (80,679) (1,771,557) 142,837 (11,994) 31,515,803 (14,670,382) NET ASSETS: Beginning of year........ 12,494,159 14,265,716 1,080,417 1,092,411 213,895,843 228,566,225 --------------- --------------- ---------------- ---------------- --------------- --------------- End of year.............. $ 12,413,480 $ 12,494,159 $ 1,223,254 $ 1,080,417 $ 245,411,646 $ 213,895,843 =============== =============== ================ ================ =============== =============== MIST INVESCO BALANCED-RISK MIST DREMAN SMALL CAP VALUE MIST HARRIS OAKMARK INTERNATIONAL ALLOCATION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION -------------------------------- --------------------------------- ------------------- 2012 2011 2012 2011 2012 (c) --------------- --------------- ---------------- --------------- --------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)................. $ (99,508) $ 17,128 $ 1,494,456 $ (5,513,695) $ (285,621) Net realized gains (losses)............... 169,514 67,004 (3,011,926) (2,755,023) 2,752,326 Change in unrealized gains (losses) on investments............ 1,943,111 (1,567,033) 110,752,790 (62,286,695) 3,031,605 --------------- --------------- ---------------- --------------- --------------- Net increase (decrease) in net assets resulting from operations...... 2,013,117 (1,482,901) 109,235,320 (70,555,413) 5,498,310 --------------- --------------- ---------------- --------------- --------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners................. 1,134,527 3,849,328 25,860,661 52,450,196 172,718,002 Net transfers (including fixed account)......... (215,121) 2,394,616 (29,468,662) 30,416,989 86,599,927 Contract charges......... (144,438) (87,391) (2,390,120) (1,799,747) (281,918) Transfers for contract benefits and terminations........... (495,656) (282,895) (29,633,134) (29,822,147) (1,963,230) --------------- --------------- ---------------- --------------- --------------- Net increase (decrease) in net assets resulting from contract transactions......... 279,312 5,873,658 (35,631,255) 51,245,291 257,072,781 --------------- --------------- ---------------- --------------- --------------- Net increase (decrease) in net assets........ 2,292,429 4,390,757 73,604,065 (19,310,122) 262,571,091 NET ASSETS: Beginning of year........ 14,113,642 9,722,885 402,888,469 422,198,591 -- --------------- --------------- ---------------- --------------- --------------- End of year.............. $ 16,406,071 $ 14,113,642 $ 476,492,534 $ 402,888,469 $ 262,571,091 =============== =============== ================ =============== =============== MIST INVESCO SMALL CAP GROWTH INVESTMENT DIVISION -------------------------------- 2012 2011 --------------- --------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)................. $ (486,861) $ (482,055) Net realized gains (losses)............... 3,244,880 912,044 Change in unrealized gains (losses) on investments............ 2,993,280 (1,491,318) --------------- --------------- Net increase (decrease) in net assets resulting from operations...... 5,751,299 (1,061,329) --------------- --------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners................. 1,872,613 3,144,653 Net transfers (including fixed account)......... (1,888,576) 1,935,017 Contract charges......... (152,815) (124,306) Transfers for contract benefits and terminations........... (2,846,640) (3,198,790) --------------- --------------- Net increase (decrease) in net assets resulting from contract transactions......... (3,015,418) 1,756,574 --------------- --------------- Net increase (decrease) in net assets........ 2,735,881 695,245 NET ASSETS: Beginning of year........ 35,466,935 34,771,690 --------------- --------------- End of year.............. $ 38,202,816 $ 35,466,935 =============== ===============
(a) For the period July 23, 2012 to December 31, 2012. (b) For the period May 2, 2011 to December 31, 2011. (c) For the period April 30, 2012 to December 31, 2012. (d) For the period November 12, 2012 to December 31, 2012. The accompanying notes are an integral part of these financial statements. 46 The accompanying notes are an integral part of these financial statements. 47 METROPOLITAN LIFE SEPARATE ACCOUNT E OF METROPOLITAN LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEARS ENDED DECEMBER 31, 2012 AND 2011
MIST JPMORGAN GLOBAL ACTIVE MIST LEGG MASON MIST JANUS FORTY ALLOCATION CLEARBRIDGE AGGRESSIVE GROWTH INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION -------------------------------- ------------------- --------------------------------- 2012 2011 2012 (c) 2012 2011 --------------- --------------- ---------------- ---------------- --------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss).............. $ (3,859,343) $ 1,448,208 $ (53,172) $ (1,116,378) $ (775,154) Net realized gains (losses)............... 4,831,657 1,694,032 1,067,588 1,587,040 90,545 Change in unrealized gains (losses) on investments............................. 67,185,414 (34,037,911) 4,304,772 13,460,409 (2,134,269) --------------- --------------- ---------------- ---------------- --------------- Net increase (decrease) in net assets resulting from operations............. 68,157,728 (30,895,671) 5,319,188 13,931,071 (2,818,878) --------------- --------------- ---------------- ---------------- --------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners.................................. 21,578,155 36,842,239 126,473,886 4,924,914 10,021,380 Net transfers (including fixed account)... (12,068,102) (36,925,469) 47,381,333 139,039 49,368,964 Contract charges.......................... (2,455,964) (2,013,612) (118,033) (488,394) (231,580) Transfers for contract benefits and terminations............................ (22,291,894) (20,987,743) (1,142,254) (6,433,723) (4,703,187) --------------- --------------- ---------------- ---------------- --------------- Net increase (decrease) in net assets resulting from contract transactions.. (15,237,805) (23,084,585) 172,594,932 (1,858,164) 54,455,577 --------------- --------------- ---------------- ---------------- --------------- Net increase (decrease) in net assets... 52,919,923 (53,980,256) 177,914,120 12,072,907 51,636,699 NET ASSETS: Beginning of year......................... 326,899,919 380,880,175 -- 81,432,355 29,795,656 --------------- --------------- ---------------- ---------------- --------------- End of year............................... $ 379,819,842 $ 326,899,919 $ 177,914,120 $ 93,505,262 $ 81,432,355 =============== =============== ================ ================ =============== MIST LOOMIS SAYLES GLOBAL MARKETS MIST LORD ABBETT BOND DEBENTURE INVESTMENT DIVISION INVESTMENT DIVISION --------------------------------- --------------------------------- 2012 2011 2012 2011 --------------- --------------- --------------- ---------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss).............. $ 304,103 $ 198,036 $ 18,522,471 $ 14,403,608 Net realized gains (losses)............... 427,349 143,095 2,160,277 2,290,866 Change in unrealized gains (losses) on investments............................. 3,035,366 (1,279,325) 13,383,268 (7,309,571) --------------- --------------- --------------- ---------------- Net increase (decrease) in net assets resulting from operations............. 3,766,818 (938,194) 34,066,016 9,384,903 --------------- --------------- --------------- ---------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners.................................. 1,840,684 7,582,991 16,076,934 21,104,651 Net transfers (including fixed account)... 522,506 4,747,575 3,057,413 2,409,217 Contract charges.......................... (277,738) (150,503) (1,268,476) (1,026,357) Transfers for contract benefits and terminations............................ (1,042,810) (944,464) (30,645,978) (27,440,537) --------------- --------------- --------------- ---------------- Net increase (decrease) in net assets resulting from contract transactions.. 1,042,642 11,235,599 (12,780,107) (4,953,026) --------------- --------------- --------------- ---------------- Net increase (decrease) in net assets... 4,809,460 10,297,405 21,285,909 4,431,877 NET ASSETS: Beginning of year......................... 23,690,465 13,393,060 299,293,863 294,861,986 --------------- --------------- --------------- ---------------- End of year............................... $ 28,499,925 $ 23,690,465 $ 320,579,772 $ 299,293,863 =============== =============== =============== ================ MIST LORD ABBETT MID CAP VALUE MIST MET/EATON VANCE FLOATING RATE INVESTMENT DIVISION INVESTMENT DIVISION ------------------- ---------------------------------- 2012 (c) 2012 2011 ---------------- --------------- --------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss).............. $ (3,836,269) $ 131,505 $ 41,480 Net realized gains (losses)............... (989,154) 37,022 454 Change in unrealized gains (losses) on investments............................. 14,947,335 202,510 (46,618) ---------------- --------------- --------------- Net increase (decrease) in net assets resulting from operations............. 10,121,912 371,037 (4,684) ---------------- --------------- --------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners.................................. 10,440,934 1,186,665 1,709,307 Net transfers (including fixed account)... 459,350,812 143,024 3,394,688 Contract charges.......................... (1,081,365) (42,201) (22,023) Transfers for contract benefits and terminations............................ (24,552,437) (217,550) (386,478) ---------------- --------------- --------------- Net increase (decrease) in net assets resulting from contract transactions.. 444,157,944 1,069,938 4,695,494 ---------------- --------------- --------------- Net increase (decrease) in net assets... 454,279,856 1,440,975 4,690,810 NET ASSETS: Beginning of year......................... -- 5,996,924 1,306,114 ---------------- --------------- --------------- End of year............................... $ 454,279,856 $ 7,437,899 $ 5,996,924 ================ =============== ===============
(a) For the period July 23, 2012 to December 31, 2012. (b) For the period May 2, 2011 to December 31, 2011. (c) For the period April 30, 2012 to December 31, 2012. (d) For the period November 12, 2012 to December 31, 2012. The accompanying notes are an integral part of these financial statements. 48 The accompanying notes are an integral part of these financial statements. 49 METROPOLITAN LIFE SEPARATE ACCOUNT E OF METROPOLITAN LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEARS ENDED DECEMBER 31, 2012 AND 2011
MIST MET/FRANKLIN MIST MET/FRANKLIN INCOME LOW DURATION TOTAL RETURN MIST MET/FRANKLIN MUTUAL SHARES INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION -------------------------------- -------------------------------- --------------------------------- 2012 2011 2012 2011 (b) 2012 2011 --------------- --------------- --------------- --------------- ---------------- ---------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)................. $ 3,264,522 $ 2,172,837 $ 47,383 $ (31,128) $ (379,246) $ 672,881 Net realized gains (losses)............... 2,296,332 2,244,039 18,836 (4,038) 9,061,230 2,548,771 Change in unrealized gains (losses) on investments............ 3,864,031 (4,384,031) 235,611 (44,184) (2,341,070) (4,170,448) --------------- --------------- --------------- --------------- ---------------- ---------------- Net increase (decrease) in net assets resulting from operations...... 9,424,885 32,845 301,830 (79,350) 6,340,914 (948,796) --------------- --------------- --------------- --------------- ---------------- ---------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners................. 7,195,269 13,668,533 3,512,786 2,171,280 3,684,253 7,962,310 Net transfers (including fixed account)......... 2,916,718 17,640,435 5,422,523 4,657,569 (2,581,366) 7,453,138 Contract charges......... (595,974) (398,816) (81,958) (11,327) (423,105) (302,374) Transfers for contract benefits and terminations........... (6,144,784) (4,090,256) (639,371) (102,505) (2,575,565) (2,056,987) --------------- --------------- --------------- --------------- ---------------- ---------------- Net increase (decrease) in net assets resulting from contract transactions......... 3,371,229 26,819,896 8,213,980 6,715,017 (1,895,783) 13,056,087 --------------- --------------- --------------- --------------- ---------------- ---------------- Net increase (decrease) in net assets........ 12,796,114 26,852,741 8,515,810 6,635,667 4,445,131 12,107,291 NET ASSETS: Beginning of year........ 82,869,275 56,016,534 6,635,667 -- 50,810,483 38,703,192 --------------- --------------- --------------- --------------- ---------------- ---------------- End of year.............. $ 95,665,389 $ 82,869,275 $ 15,151,477 $ 6,635,667 $ 55,255,614 $ 50,810,483 =============== =============== =============== =============== ================ ================ MIST MET/FRANKLIN MIST MET/TEMPLETON TEMPLETON FOUNDING STRATEGY MIST MET/TEMPLETON GROWTH INTERNATIONAL BOND INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION -------------------------------- -------------------------------- -------------------------------- 2012 2011 2012 2011 2012 2011 --------------- --------------- --------------- --------------- --------------- --------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)................. $ 1,714,062 $ 266,675 $ 73,120 $ 1,098 $ 702,579 $ 339,642 Net realized gains (losses)............... 2,131,256 1,538,878 1,224,958 172,666 (49,304) 19,083 Change in unrealized gains (losses) on investments............ 4,634,029 (3,784,395) 3,299,357 (2,206,620) 311,532 (521,008) --------------- --------------- --------------- --------------- --------------- --------------- Net increase (decrease) in net assets resulting from operations...... 8,479,347 (1,978,842) 4,597,435 (2,032,856) 964,807 (162,283) --------------- --------------- --------------- --------------- --------------- --------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners................. 3,939,604 3,330,701 1,552,979 3,585,962 388,304 1,977,676 Net transfers (including fixed account)......... (999,738) 1,731,315 (445,135) 3,882,994 652,040 981,155 Contract charges......... (486,666) (448,304) (188,146) (134,668) (91,173) (51,568) Transfers for contract benefits and terminations........... (4,177,877) (3,578,385) (1,157,033) (901,511) (236,909) (130,108) --------------- --------------- --------------- --------------- --------------- --------------- Net increase (decrease) in net assets resulting from contract transactions......... (1,724,677) 1,035,327 (237,335) 6,432,777 712,262 2,777,155 --------------- --------------- --------------- --------------- --------------- --------------- Net increase (decrease) in net assets........ 6,754,670 (943,515) 4,360,100 4,399,921 1,677,069 2,614,872 NET ASSETS: Beginning of year........ 59,253,268 60,196,783 22,033,920 17,633,999 7,057,738 4,442,866 --------------- --------------- --------------- --------------- --------------- --------------- End of year.............. $ 66,007,938 $ 59,253,268 $ 26,394,020 $ 22,033,920 $ 8,734,807 $ 7,057,738 =============== =============== =============== =============== =============== =============== MIST METLIFE AGGRESSIVE STRATEGY INVESTMENT DIVISION --------------------------------- 2012 2011 (b) --------------- --------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)................. $ (622,305) $ (883,430) Net realized gains (losses)............... (642,177) (1,223,379) Change in unrealized gains (losses) on investments............ 16,987,540 (15,025,916) --------------- --------------- Net increase (decrease) in net assets resulting from operations...... 15,723,058 (17,132,725) --------------- --------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners................. 10,482,886 9,235,767 Net transfers (including fixed account)......... (2,064,708) 115,464,716 Contract charges......... (332,332) (193,115) Transfers for contract benefits and terminations........... (6,978,269) (4,891,358) --------------- --------------- Net increase (decrease) in net assets resulting from contract transactions......... 1,107,577 119,616,010 --------------- --------------- Net increase (decrease) in net assets........ 16,830,635 102,483,285 NET ASSETS: Beginning of year........ 102,483,285 -- --------------- --------------- End of year.............. $ 119,313,920 $ 102,483,285 =============== ===============
(a) For the period July 23, 2012 to December 31, 2012. (b) For the period May 2, 2011 to December 31, 2011. (c) For the period April 30, 2012 to December 31, 2012. (d) For the period November 12, 2012 to December 31, 2012. The accompanying notes are an integral part of these financial statements. 50 The accompanying notes are an integral part of these financial statements. 51 METROPOLITAN LIFE SEPARATE ACCOUNT E OF METROPOLITAN LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEARS ENDED DECEMBER 31, 2012 AND 2011
MIST METLIFE MULTI-INDEX MIST MFS EMERGING MIST METLIFE BALANCED PLUS TARGETED RISK MARKETS EQUITY INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION -------------------------------- ------------------- -------------------------------- 2012 2011 (b) 2012 (d) 2012 2011 --------------- --------------- ------------------- --------------- --------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)............. $ (13,458,186) $ (1,371,888) $ (4,570) $ (246,778) $ 30,492 Net realized gains (losses).............. -- -- -- 218,578 72,819 Change in unrealized gains (losses) on investments............................ 125,203,535 (2,485,885) 57,330 7,622,252 (8,862,777) --------------- --------------- ------------------- --------------- --------------- Net increase (decrease) in net assets resulting from operations............ 111,745,349 (3,857,773) 52,760 7,594,052 (8,759,466) --------------- --------------- ------------------- --------------- --------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners................................. 666,323,351 535,878,034 6,046,338 3,302,160 11,252,563 Net transfers (including fixed account).. 191,499,271 72,096,681 828,476 59,643 7,657,130 Contract charges......................... (9,507,105) -- -- (451,084) (293,224) Transfers for contract benefits and terminations........................... (24,967,987) (2,650,934) (24,161) (1,700,666) (1,115,601) --------------- --------------- ------------------- --------------- --------------- Net increase (decrease) in net assets resulting from contract transactions. 823,347,530 605,323,781 6,850,653 1,210,053 17,500,868 --------------- --------------- ------------------- --------------- --------------- Net increase (decrease) in net assets.. 935,092,879 601,466,008 6,903,413 8,804,105 8,741,402 NET ASSETS: Beginning of year........................ 601,466,008 -- -- 41,739,144 32,997,742 --------------- --------------- ------------------- --------------- --------------- End of year.............................. $ 1,536,558,887 $ 601,466,008 $ 6,903,413 $ 50,543,249 $ 41,739,144 =============== =============== =================== =============== =============== MIST MFS RESEARCH INTERNATIONAL MIST MLA MID CAP INVESTMENT DIVISION INVESTMENT DIVISION -------------------------------- -------------------------------- 2012 2011 2012 2011 --------------- --------------- --------------- --------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)............. $ 1,672,965 $ 1,768,451 $ (474,065) $ (304,820) Net realized gains (losses).............. (4,954,152) (4,770,811) (437,579) (562,041) Change in unrealized gains (losses) on investments............................ 36,050,862 (25,538,343) 3,279,524 (3,048,502) --------------- --------------- --------------- --------------- Net increase (decrease) in net assets resulting from operations............ 32,769,675 (28,540,703) 2,367,880 (3,915,363) --------------- --------------- --------------- --------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners................................. 11,826,744 18,801,518 2,377,121 4,885,854 Net transfers (including fixed account).. (12,860,495) (9,007,934) (2,169,211) (49,708) Contract charges......................... (1,005,447) (888,593) (239,774) (198,843) Transfers for contract benefits and terminations........................... (17,232,483) (19,543,264) (7,299,236) (5,216,805) --------------- --------------- --------------- --------------- Net increase (decrease) in net assets resulting from contract transactions. (19,271,681) (10,638,273) (7,331,100) (579,502) --------------- --------------- --------------- --------------- Net increase (decrease) in net assets.. 13,497,994 (39,178,976) (4,963,220) (4,494,865) NET ASSETS: Beginning of year........................ 219,299,244 258,478,220 57,642,160 62,137,025 --------------- --------------- --------------- --------------- End of year.............................. $ 232,797,238 $ 219,299,244 $ 52,678,940 $ 57,642,160 =============== =============== =============== =============== MIST MORGAN STANLEY MIST PIMCO MID CAP GROWTH INFLATION PROTECTED BOND INVESTMENT DIVISION INVESTMENT DIVISION -------------------------------- -------------------------------- 2012 2011 2012 2011 --------------- --------------- --------------- --------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)............. $ (4,210,537) $ (1,955,656) $ 11,625,022 $ 1,853,037 Net realized gains (losses).............. 5,317,869 18,314,342 41,689,742 27,055,692 Change in unrealized gains (losses) on investments............................ 25,732,223 (43,580,440) (3,829,156) 22,722,470 --------------- --------------- --------------- --------------- Net increase (decrease) in net assets resulting from operations............ 26,839,555 (27,221,754) 49,485,608 51,631,199 --------------- --------------- --------------- --------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners................................. 12,705,330 18,132,310 49,932,747 84,786,072 Net transfers (including fixed account).. (12,398,944) (6,689,028) 43,010,771 41,379,883 Contract charges......................... (474,575) (379,356) (4,354,242) (3,086,814) Transfers for contract benefits and terminations........................... (29,933,233) (39,261,624) (48,033,724) (35,371,281) --------------- --------------- --------------- --------------- Net increase (decrease) in net assets resulting from contract transactions. (30,101,422) (28,197,698) 40,555,552 87,707,860 --------------- --------------- --------------- --------------- Net increase (decrease) in net assets.. (3,261,867) (55,419,452) 90,041,160 139,339,059 NET ASSETS: Beginning of year........................ 331,439,430 386,858,882 607,250,028 467,910,969 --------------- --------------- --------------- --------------- End of year.............................. $ 328,177,563 $ 331,439,430 $ 697,291,188 $ 607,250,028 =============== =============== =============== ===============
(a) For the period July 23, 2012 to December 31, 2012. (b) For the period May 2, 2011 to December 31, 2011. (c) For the period April 30, 2012 to December 31, 2012. (d) For the period November 12, 2012 to December 31, 2012. The accompanying notes are an integral part of these financial statements. 52 The accompanying notes are an integral part of these financial statements. 53 METROPOLITAN LIFE SEPARATE ACCOUNT E OF METROPOLITAN LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEARS ENDED DECEMBER 31, 2012 AND 2011
MIST PIMCO TOTAL RETURN MIST PIONEER STRATEGIC INCOME MIST PYRAMIS GOVERNMENT INCOME INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION -------------------------------- -------------------------------- --------------------------------- 2012 2011 2012 2011 2012 2011 (b) --------------- --------------- --------------- --------------- ---------------- ---------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)................. $ 22,414,950 $ 16,053,608 $ 2,214,309 $ 1,441,714 $ (5,107,197) $ 93,399 Net realized gains (losses)............... 4,256,169 37,618,577 431,791 339,011 452,229 1,576,104 Change in unrealized gains (losses) on investments............ 63,295,829 (32,790,032) 3,393,104 (1,046,047) 11,051,029 2,283,413 --------------- --------------- --------------- --------------- ---------------- ---------------- Net increase (decrease) in net assets resulting from operations...... 89,966,948 20,882,153 6,039,204 734,678 6,396,061 3,952,916 --------------- --------------- --------------- --------------- ---------------- ---------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners................. 70,379,304 139,998,412 7,057,045 16,258,528 303,900,909 173,607,003 Net transfers (including fixed account)......... 42,895,576 6,058,753 4,484,300 6,180,173 104,401,909 24,284,908 Contract charges......... (7,178,707) (5,393,953) (485,690) (296,120) (3,426,658) -- Transfers for contract benefits and terminations........... (93,041,261) (87,125,186) (2,478,881) (1,530,939) (10,761,797) (1,430,167) --------------- --------------- --------------- --------------- ---------------- ---------------- Net increase (decrease) in net assets resulting from contract transactions......... 13,054,912 53,538,026 8,576,774 20,611,642 394,114,363 196,461,744 --------------- --------------- --------------- --------------- ---------------- ---------------- Net increase (decrease) in net assets........ 103,021,860 74,420,179 14,615,978 21,346,320 400,510,424 200,414,660 NET ASSETS: Beginning of year........ 1,123,078,623 1,048,658,444 55,464,787 34,118,467 200,414,660 -- --------------- --------------- --------------- --------------- ---------------- ---------------- End of year.............. $ 1,226,100,483 $ 1,123,078,623 $ 70,080,765 $ 55,464,787 $ 600,925,084 $ 200,414,660 =============== =============== =============== =============== ================ ================ MIST SCHRODERS MIST SSGA GROWTH MIST RCM TECHNOLOGY GLOBAL MULTI-ASSET AND INCOME ETF INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION -------------------------------- ------------------- -------------------------------- 2012 2011 2012 (c) 2012 2011 --------------- --------------- ------------------- --------------- --------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)................. $ (1,847,560) $ (1,990,352) $ 456,463 $ 9,596,261 $ 3,004,000 Net realized gains (losses)............... 18,090,533 4,528,821 2,099,861 23,026,356 13,677,791 Change in unrealized gains (losses) on investments............ (1,639,543) (19,441,973) 1,345,384 61,370,103 (22,210,213) --------------- --------------- ------------------- --------------- --------------- Net increase (decrease) in net assets resulting from operations...... 14,603,430 (16,903,504) 3,901,708 93,992,720 (5,528,422) --------------- --------------- ------------------- --------------- --------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners................. 7,144,289 13,991,451 90,866,789 44,021,766 157,482,497 Net transfers (including fixed account)......... (7,230,702) (1,016,006) 36,093,305 14,151,230 109,982,973 Contract charges......... (649,529) (517,513) (79,981) (8,609,093) (5,839,559) Transfers for contract benefits and terminations........... (11,918,924) (13,031,666) (747,596) (35,564,950) (24,463,994) --------------- --------------- ------------------- --------------- --------------- Net increase (decrease) in net assets resulting from contract transactions......... (12,654,866) (573,734) 126,132,517 13,998,953 237,161,917 --------------- --------------- ------------------- --------------- --------------- Net increase (decrease) in net assets........ 1,948,564 (17,477,238) 130,034,225 107,991,673 231,633,495 NET ASSETS: Beginning of year........ 133,833,471 151,310,709 -- 811,024,282 579,390,787 --------------- --------------- ------------------- --------------- --------------- End of year.............. $ 135,782,035 $ 133,833,471 $ 130,034,225 $ 919,015,955 $ 811,024,282 =============== =============== =================== =============== =============== MIST SSGA GROWTH ETF INVESTMENT DIVISION --------------------------------- 2012 2011 --------------- --------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)................. $ 714,104 $ 303,346 Net realized gains (losses)............... 5,897,313 2,063,340 Change in unrealized gains (losses) on investments............ 6,878,957 (5,913,643) --------------- --------------- Net increase (decrease) in net assets resulting from operations...... 13,490,374 (3,546,957) --------------- --------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners................. 9,725,382 11,407,995 Net transfers (including fixed account)......... 3,004,933 9,014,471 Contract charges......... (715,352) (568,402) Transfers for contract benefits and terminations........... (5,210,417) (4,734,284) --------------- --------------- Net increase (decrease) in net assets resulting from contract transactions......... 6,804,546 15,119,780 --------------- --------------- Net increase (decrease) in net assets........ 20,294,920 11,572,823 NET ASSETS: Beginning of year........ 95,770,056 84,197,233 --------------- --------------- End of year.............. $ 116,064,976 $ 95,770,056 =============== ===============
(a) For the period July 23, 2012 to December 31, 2012. (b) For the period May 2, 2011 to December 31, 2011. (c) For the period April 30, 2012 to December 31, 2012. (d) For the period November 12, 2012 to December 31, 2012. The accompanying notes are an integral part of these financial statements. 54 The accompanying notes are an integral part of these financial statements. 55 METROPOLITAN LIFE SEPARATE ACCOUNT E OF METROPOLITAN LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEARS ENDED DECEMBER 31, 2012 AND 2011
MIST T. ROWE PRICE MSF BAILLIE GIFFORD MID CAP GROWTH MIST THIRD AVENUE SMALL CAP VALUE INTERNATIONAL STOCK INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION -------------------------------- --------------------------------- -------------------------------- 2012 2011 2012 2011 2012 2011 --------------- --------------- --------------- --------------- --------------- --------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)................. $ (3,786,488) $ (3,642,125) $ (133,386) $ (11,673) $ 16,611 $ 822,890 Net realized gains (losses)............... 40,978,127 11,783,080 31,460 7,471 (6,791,749) (4,243,528) Change in unrealized gains (losses) on investments............ (3,413,055) (16,760,775) 1,819,753 (1,051,353) 32,422,529 (36,008,767) --------------- --------------- --------------- --------------- --------------- --------------- Net increase (decrease) in net assets resulting from operations...... 33,778,584 (8,619,820) 1,717,827 (1,055,555) 25,647,391 (39,429,405) --------------- --------------- --------------- --------------- --------------- --------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners................. 19,117,110 35,279,068 1,817,623 1,714,359 4,510,201 7,030,950 Net transfers (including fixed account)......... (6,891,637) 1,578,858 (502,102) (326,471) (7,577,921) 1,051,932 Contract charges......... (1,587,808) (1,185,031) (22,494) (17,809) (428,025) (391,596) Transfers for contract benefits and terminations........... (20,552,878) (20,327,845) (606,849) (370,967) (13,728,152) (15,516,089) --------------- --------------- --------------- --------------- --------------- --------------- Net increase (decrease) in net assets resulting from contract transactions......... (9,915,213) 15,345,050 686,178 999,112 (17,223,897) (7,824,803) --------------- --------------- --------------- --------------- --------------- --------------- Net increase (decrease) in net assets........ 23,863,371 6,725,230 2,404,005 (56,443) 8,423,494 (47,254,208) NET ASSETS: Beginning of year........ 276,466,812 269,741,582 9,963,715 10,020,158 149,064,918 196,319,126 --------------- --------------- --------------- --------------- --------------- --------------- End of year.............. $ 300,330,183 $ 276,466,812 $ 12,367,720 $ 9,963,715 $ 157,488,412 $ 149,064,918 =============== =============== =============== =============== =============== =============== MSF BARCLAYS CAPITAL AGGREGATE BOND INDEX MSF BLACKROCK AGGRESSIVE GROWTH MSF BLACKROCK BOND INCOME INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION -------------------------------- --------------------------------- --------------------------------- 2012 2011 2012 2011 2012 2011 --------------- --------------- --------------- ---------------- --------------- ---------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)................. $ 26,460,557 $ 23,788,921 $ (5,625,627) $ (4,656,656) $ 6,730,178 $ 13,245,564 Net realized gains (losses)............... 5,346,141 6,260,260 12,013,460 11,767,838 6,095,541 968,641 Change in unrealized gains (losses) on investments............ (4,740,378) 35,508,667 35,370,149 (26,024,706) 17,177,018 11,150,590 --------------- --------------- --------------- ---------------- --------------- ---------------- Net increase (decrease) in net assets resulting from operations...... 27,066,320 65,557,848 41,757,982 (18,913,524) 30,002,737 25,364,795 --------------- --------------- --------------- ---------------- --------------- ---------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners................. 68,937,477 131,216,486 9,761,447 14,868,532 22,223,783 40,839,610 Net transfers (including fixed account)......... 41,010,095 (37,583,700) (13,289,808) (14,309,119) 6,298,421 (12,254,499) Contract charges......... (5,666,093) (4,599,915) (574,986) (454,999) (1,937,213) (1,480,623) Transfers for contract benefits and terminations........... (95,740,107) (93,887,204) (40,270,013) (46,251,640) (47,208,086) (48,730,575) --------------- --------------- --------------- ---------------- --------------- ---------------- Net increase (decrease) in net assets resulting from contract transactions......... 8,541,372 (4,854,333) (44,373,360) (46,147,226) (20,623,095) (21,626,087) --------------- --------------- --------------- ---------------- --------------- ---------------- Net increase (decrease) in net assets........ 35,607,692 60,703,515 (2,615,378) (65,060,750) 9,379,642 3,738,708 NET ASSETS: Beginning of year........ 1,115,074,009 1,054,370,494 441,856,480 506,917,230 503,747,574 500,008,866 --------------- --------------- --------------- ---------------- --------------- ---------------- End of year.............. $ 1,150,681,701 $ 1,115,074,009 $ 439,241,102 $ 441,856,480 $ 513,127,216 $ 503,747,574 =============== =============== =============== ================ =============== ================ MSF BLACKROCK DIVERSIFIED INVESTMENT DIVISION -------------------------------- 2012 2011 --------------- --------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)................. $ 6,564,050 $ 8,026,572 Net realized gains (losses)............... 3,099,829 (1,793,589) Change in unrealized gains (losses) on investments............ 57,467,217 11,482,045 --------------- --------------- Net increase (decrease) in net assets resulting from operations...... 67,131,096 17,715,028 --------------- --------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners................. 10,671,295 12,843,237 Net transfers (including fixed account)......... (14,441,203) (23,041,359) Contract charges......... (333,068) (289,599) Transfers for contract benefits and terminations........... (65,428,352) (76,364,804) --------------- --------------- Net increase (decrease) in net assets resulting from contract transactions......... (69,531,328) (86,852,525) --------------- --------------- Net increase (decrease) in net assets........ (2,400,232) (69,137,497) NET ASSETS: Beginning of year........ 634,685,560 703,823,057 --------------- --------------- End of year.............. $ 632,285,328 $ 634,685,560 =============== ===============
(a) For the period July 23, 2012 to December 31, 2012. (b) For the period May 2, 2011 to December 31, 2011. (c) For the period April 30, 2012 to December 31, 2012. (d) For the period November 12, 2012 to December 31, 2012. The accompanying notes are an integral part of these financial statements. 56 The accompanying notes are an integral part of these financial statements. 57 METROPOLITAN LIFE SEPARATE ACCOUNT E OF METROPOLITAN LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEARS ENDED DECEMBER 31, 2012 AND 2011
MSF BLACKROCK MSF BLACKROCK LARGE CAP VALUE LEGACY LARGE CAP GROWTH MSF BLACKROCK MONEY MARKET INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION -------------------------------- -------------------------------- -------------------------------- 2012 2011 2012 2011 2012 2011 --------------- --------------- --------------- --------------- --------------- --------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)................. $ 290,612 $ (761,296) $ (1,972,287) $ (2,061,181) $ (1,181,929) $ (1,266,614) Net realized gains (losses)............... 31,615,279 (2,110,608) 3,086,608 2,287,770 -- -- Change in unrealized gains (losses) on investments............ (6,267,847) 4,546,025 18,441,634 (18,309,761) -- -- --------------- --------------- --------------- --------------- --------------- --------------- Net increase (decrease) in net assets resulting from operations...... 25,638,044 1,674,121 19,555,955 (18,083,172) (1,181,929) (1,266,614) --------------- --------------- --------------- --------------- --------------- --------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners................. 13,377,609 21,492,157 9,245,805 24,851,525 11,092,649 12,247,227 Net transfers (including fixed account)......... (8,969,166) 2,849,941 (7,007,031) 11,901,823 4,762,352 17,009,849 Contract charges......... (1,160,004) (905,851) (982,638) (724,651) (591,876) (639,681) Transfers for contract benefits and terminations........... (15,244,060) (14,359,735) (10,985,295) (10,556,249) (12,773,513) (16,071,934) --------------- --------------- --------------- --------------- --------------- --------------- Net increase (decrease) in net assets resulting from contract transactions......... (11,995,621) 9,076,512 (9,729,159) 25,472,448 2,489,612 12,545,461 --------------- --------------- --------------- --------------- --------------- --------------- Net increase (decrease) in net assets........ 13,642,423 10,750,633 9,826,796 7,389,276 1,307,683 11,278,847 NET ASSETS: Beginning of year........ 206,549,406 195,798,773 154,395,881 147,006,605 87,677,129 76,398,280 --------------- --------------- --------------- --------------- --------------- --------------- End of year.............. $ 220,191,829 $ 206,549,406 $ 164,222,677 $ 154,395,881 $ 88,984,812 $ 87,677,129 =============== =============== =============== =============== =============== =============== MSF DAVIS VENTURE VALUE MSF FI VALUE LEADERS MSF JENNISON GROWTH INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION -------------------------------- -------------------------------- -------------------------------- 2012 2011 2012 2011 2012 2011 --------------- --------------- --------------- --------------- --------------- --------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)................. $ (3,516,049) $ (1,723,887) $ (164,027) $ (238,786) $ (1,677,392) $ (887,335) Net realized gains (losses)............... 6,178,240 3,393,728 (2,114,623) (2,860,117) 17,401,005 1,743,271 Change in unrealized gains (losses) on investments............ 57,738,005 (34,352,746) 10,408,096 (1,901,241) (6,078,481) (1,789,305) --------------- --------------- --------------- --------------- --------------- --------------- Net increase (decrease) in net assets resulting from operations...... 60,400,196 (32,682,905) 8,129,446 (5,000,144) 9,645,132 (933,369) --------------- --------------- --------------- --------------- --------------- --------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners................. 23,659,277 48,790,349 1,762,064 2,100,177 9,047,096 8,665,547 Net transfers (including fixed account)......... (25,585,476) (9,991,955) (3,010,670) (1,936,831) 62,639,308 13,265,073 Contract charges......... (2,676,497) (2,241,401) (178,463) (179,344) (809,535) (335,560) Transfers for contract benefits and terminations........... (43,439,960) (44,739,039) (5,329,639) (5,699,592) (9,422,084) (5,546,722) --------------- --------------- --------------- --------------- --------------- --------------- Net increase (decrease) in net assets resulting from contract transactions......... (48,042,656) (8,182,046) (6,756,708) (5,715,590) 61,454,785 16,048,338 --------------- --------------- --------------- --------------- --------------- --------------- Net increase (decrease) in net assets........ 12,357,540 (40,864,951) 1,372,738 (10,715,734) 71,099,917 15,114,969 NET ASSETS: Beginning of year........ 549,949,416 590,814,367 60,845,379 71,561,113 82,954,033 67,839,064 --------------- --------------- --------------- --------------- --------------- --------------- End of year.............. $ 562,306,956 $ 549,949,416 $ 62,218,117 $ 60,845,379 $ 154,053,950 $ 82,954,033 =============== =============== =============== =============== =============== =============== MSF LOOMIS SAYLES SMALL CAP CORE INVESTMENT DIVISION -------------------------------- 2012 2011 --------------- --------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)................. $ (2,002,639) $ (1,974,377) Net realized gains (losses)............... 6,614,447 1,733,783 Change in unrealized gains (losses) on investments............ 14,438,005 (708,103) --------------- --------------- Net increase (decrease) in net assets resulting from operations...... 19,049,813 (948,697) --------------- --------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners................. 6,891,103 11,026,192 Net transfers (including fixed account)......... (7,307,184) (2,419,047) Contract charges......... (627,291) (523,896) Transfers for contract benefits and terminations........... (13,323,254) (13,179,560) --------------- --------------- Net increase (decrease) in net assets resulting from contract transactions......... (14,366,626) (5,096,311) --------------- --------------- Net increase (decrease) in net assets........ 4,683,187 (6,045,008) NET ASSETS: Beginning of year........ 152,652,688 158,697,696 --------------- --------------- End of year.............. $ 157,335,875 $ 152,652,688 =============== ===============
(a) For the period July 23, 2012 to December 31, 2012. (b) For the period May 2, 2011 to December 31, 2011. (c) For the period April 30, 2012 to December 31, 2012. (d) For the period November 12, 2012 to December 31, 2012. The accompanying notes are an integral part of these financial statements. 58 The accompanying notes are an integral part of these financial statements. 59 METROPOLITAN LIFE SEPARATE ACCOUNT E OF METROPOLITAN LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEARS ENDED DECEMBER 31, 2012 AND 2011
MSF LOOMIS SAYLES MSF MET/DIMENSIONAL SMALL CAP GROWTH MSF MET/ARTISAN MID CAP VALUE INTERNATIONAL SMALL COMPANY INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION --------------------------------- --------------------------------- --------------------------------- 2012 2011 2012 2011 2012 2011 --------------- --------------- ---------------- ---------------- --------------- ---------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss).................. $ (571,823) $ (605,468) $ (814,317) $ (877,049) $ 40,843 $ 25,304 Net realized gains (losses)................ 1,379,303 705,937 (3,945,332) (6,225,805) 359,129 190,328 Change in unrealized gains (losses) on investments............. 3,377,539 418,297 25,829,066 18,681,995 309,208 (958,109) --------------- --------------- ---------------- ---------------- --------------- ---------------- Net increase (decrease) in net assets resulting from operations....... 4,185,019 518,766 21,069,417 11,579,141 709,180 (742,477) --------------- --------------- ---------------- ---------------- --------------- ---------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners.................. 1,787,862 1,861,989 8,874,605 11,876,355 291,809 995,572 Net transfers (including fixed account).......... (6,173,151) 5,246,079 (6,921,482) (5,298,073) (143,800) 598,134 Contract charges.......... (98,794) (91,903) (514,202) (433,039) (41,622) (27,252) Transfers for contract benefits and terminations............ (4,576,397) (4,768,447) (22,073,673) (23,161,304) (158,938) (123,999) --------------- --------------- ---------------- ---------------- --------------- ---------------- Net increase (decrease) in net assets resulting from contract transactions.......... (9,060,480) 2,247,718 (20,634,752) (17,016,061) (52,551) 1,442,455 --------------- --------------- ---------------- ---------------- --------------- ---------------- Net increase (decrease) in net assets......... (4,875,461) 2,766,484 434,665 (5,436,920) 656,629 699,978 NET ASSETS: Beginning of year......... 46,369,339 43,602,855 212,168,332 217,605,252 4,062,760 3,362,782 --------------- --------------- ---------------- ---------------- --------------- ---------------- End of year............... $ 41,493,878 $ 46,369,339 $ 212,602,997 $ 212,168,332 $ 4,719,389 $ 4,062,760 =============== =============== ================ ================ =============== ================ MSF METLIFE CONSERVATIVE MSF METLIFE CONSERVATIVE ALLOCATION TO MODERATE ALLOCATION INVESTMENT DIVISION INVESTMENT DIVISION ----------------------------------- --------------------------------- 2012 2011 2012 2011 ---------------- --------------- ---------------- --------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss).................. $ 10,165,548 $ 4,719,364 $ 21,919,174 $ 9,296,873 Net realized gains (losses)................ 16,933,158 2,238,716 12,634,200 3,119,728 Change in unrealized gains (losses) on investments............. 14,328,509 1,399,922 96,305,018 (17,598,815) ---------------- --------------- ---------------- --------------- Net increase (decrease) in net assets resulting from operations....... 41,427,215 8,358,002 130,858,392 (5,182,214) ---------------- --------------- ---------------- --------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners.................. 45,152,634 59,936,167 80,398,812 182,128,575 Net transfers (including fixed account).......... 33,846,260 53,977,848 11,637,886 65,781,537 Contract charges.......... (3,683,769) (2,858,230) (10,188,114) (7,936,969) Transfers for contract benefits and terminations............ (42,068,655) (35,206,478) (90,128,719) (80,650,431) ---------------- --------------- ---------------- --------------- Net increase (decrease) in net assets resulting from contract transactions.......... 33,246,470 75,849,307 (8,280,135) 159,322,712 ---------------- --------------- ---------------- --------------- Net increase (decrease) in net assets......... 74,673,685 84,207,309 122,578,257 154,140,498 NET ASSETS: Beginning of year......... 516,749,285 432,541,976 1,291,252,079 1,137,111,581 ---------------- --------------- ---------------- --------------- End of year............... $ 591,422,970 $ 516,749,285 $ 1,413,830,336 $ 1,291,252,079 ================ =============== ================ =============== MSF METLIFE MID CAP STOCK INDEX MSF METLIFE MODERATE ALLOCATION INVESTMENT DIVISION INVESTMENT DIVISION --------------------------------- --------------------------------- 2012 2011 2012 2011 ---------------- --------------- --------------- ---------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss).................. $ (1,751,987) $ (1,990,547) $ 39,471,659 $ 8,000,674 Net realized gains (losses)................ 22,204,754 21,630,998 16,872,995 3,413,004 Change in unrealized gains (losses) on investments............. 39,972,595 (31,516,016) 364,883,546 (118,620,318) ---------------- --------------- --------------- ---------------- Net increase (decrease) in net assets resulting from operations....... 60,425,362 (11,875,565) 421,228,200 (107,206,640) ---------------- --------------- --------------- ---------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners.................. 24,734,350 38,854,640 190,278,441 553,403,603 Net transfers (including fixed account).......... (11,612,546) (5,485,063) (59,209,096) 112,260,513 Contract charges.......... (1,589,156) (1,227,055) (32,368,642) (25,327,711) Transfers for contract benefits and terminations............ (32,224,225) (32,767,498) (202,785,252) (185,265,104) ---------------- --------------- --------------- ---------------- Net increase (decrease) in net assets resulting from contract transactions.......... (20,691,577) (624,976) (104,084,549) 455,071,301 ---------------- --------------- --------------- ---------------- Net increase (decrease) in net assets......... 39,733,785 (12,500,541) 317,143,651 347,864,661 NET ASSETS: Beginning of year......... 384,380,587 396,881,128 3,601,073,971 3,253,209,310 ---------------- --------------- --------------- ---------------- End of year............... $ 424,114,372 $ 384,380,587 $ 3,918,217,622 $ 3,601,073,971 ================ =============== =============== ================
(a) For the period July 23, 2012 to December 31, 2012. (b) For the period May 2, 2011 to December 31, 2011. (c) For the period April 30, 2012 to December 31, 2012. (d) For the period November 12, 2012 to December 31, 2012. The accompanying notes are an integral part of these financial statements. 60 The accompanying notes are an integral part of these financial statements. 61 METROPOLITAN LIFE SEPARATE ACCOUNT E OF METROPOLITAN LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEARS ENDED DECEMBER 31, 2012 AND 2011
MSF METLIFE MODERATE TO AGGRESSIVE ALLOCATION MSF METLIFE STOCK INDEX MSF MFS TOTAL RETURN INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION -------------------------------- -------------------------------- -------------------------------- 2012 2011 2012 2011 2012 2011 --------------- --------------- --------------- --------------- --------------- --------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)................. $ 10,145,735 $ 2,144,016 $ 11,703,808 $ 9,036,820 $ 2,132,285 $ 1,988,904 Net realized gains (losses)............... 4,305,789 (257,933) 44,767,466 18,365,146 58,717 (1,111,920) Change in unrealized gains (losses) on investments............ 193,493,795 (82,743,124) 291,800,764 (11,976,865) 11,139,859 492,473 --------------- --------------- --------------- --------------- --------------- --------------- Net increase (decrease) in net assets resulting from operations...... 207,945,319 (80,857,041) 348,272,038 15,425,101 13,330,861 1,369,457 --------------- --------------- --------------- --------------- --------------- --------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners................. 87,592,538 94,940,334 90,668,945 159,101,184 6,381,015 8,318,101 Net transfers (including fixed account)......... (79,068,221) (31,249,710) (82,985,870) (54,441,859) (1,660,593) (1,380,207) Contract charges......... (11,140,623) (10,609,515) (6,748,459) (5,550,786) (409,180) (330,006) Transfers for contract benefits and terminations........... (80,281,104) (80,191,387) (240,389,751) (249,593,455) (14,171,809) (14,944,165) --------------- --------------- --------------- --------------- --------------- --------------- Net increase (decrease) in net assets resulting from contract transactions......... (82,897,410) (27,110,278) (239,455,135) (150,484,916) (9,860,567) (8,336,277) --------------- --------------- --------------- --------------- --------------- --------------- Net increase (decrease) in net assets........ 125,047,909 (107,967,319) 108,816,903 (135,059,815) 3,470,294 (6,966,820) NET ASSETS: Beginning of year........ 1,520,709,941 1,628,677,260 2,511,243,451 2,646,303,266 135,335,283 142,302,103 --------------- --------------- --------------- --------------- --------------- --------------- End of year.............. $ 1,645,757,850 $ 1,520,709,941 $ 2,620,060,354 $ 2,511,243,451 $ 138,805,577 $ 135,335,283 =============== =============== =============== =============== =============== =============== MSF MFS VALUE MSF MSCI EAFE INDEX MSF NEUBERGER BERMAN GENESIS INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION -------------------------------- -------------------------------- -------------------------------- 2012 2011 2012 2011 2012 2011 --------------- --------------- --------------- --------------- --------------- --------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)................. $ 1,569,980 $ 489,550 $ 7,390,274 $ 4,622,718 $ (2,623,767) $ (1,651,073) Net realized gains (losses)............... 5,666,251 (771,664) (2,119,320) 1,636,721 (7,774,684) (11,750,296) Change in unrealized gains (losses) on investments............ 32,844,990 (703,266) 66,509,457 (69,561,112) 31,782,193 25,875,010 --------------- --------------- --------------- --------------- --------------- --------------- Net increase (decrease) in net assets resulting from operations...... 40,081,221 (985,380) 71,780,411 (63,301,673) 21,383,742 12,473,641 --------------- --------------- --------------- --------------- --------------- --------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners................. 14,849,756 19,849,634 28,464,168 46,545,815 8,111,926 10,261,552 Net transfers (including fixed account)......... (3,944,431) (1,240,023) (14,832,837) 20,763,713 (10,762,557) (13,442,941) Contract charges......... (989,870) (719,847) (1,985,135) (1,609,533) (481,774) (451,851) Transfers for contract benefits and terminations........... (27,089,474) (26,071,270) (35,302,974) (36,072,546) (27,373,516) (29,480,656) --------------- --------------- --------------- --------------- --------------- --------------- Net increase (decrease) in net assets resulting from contract transactions......... (17,174,019) (8,181,506) (23,656,778) 29,627,449 (30,505,921) (33,113,896) --------------- --------------- --------------- --------------- --------------- --------------- Net increase (decrease) in net assets........ 22,907,202 (9,166,886) 48,123,633 (33,674,224) (9,122,179) (20,640,255) NET ASSETS: Beginning of year........ 271,032,881 280,199,767 428,461,169 462,135,393 263,644,663 284,284,918 --------------- --------------- --------------- --------------- --------------- --------------- End of year.............. $ 293,940,083 $ 271,032,881 $ 476,584,802 $ 428,461,169 $ 254,522,484 $ 263,644,663 =============== =============== =============== =============== =============== =============== MSF OPPENHEIMER GLOBAL EQUITY INVESTMENT DIVISION -------------------------------- 2012 2011 --------------- --------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)................. $ 590,593 $ 1,427,400 Net realized gains (losses)............... 2,956,134 2,711,222 Change in unrealized gains (losses) on investments............ 34,846,367 (25,269,443) --------------- --------------- Net increase (decrease) in net assets resulting from operations...... 38,393,094 (21,130,821) --------------- --------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners................. 8,178,017 15,780,525 Net transfers (including fixed account)......... (12,363,260) 3,636,534 Contract charges......... (743,403) (584,716) Transfers for contract benefits and terminations........... (15,642,935) (19,404,129) --------------- --------------- Net increase (decrease) in net assets resulting from contract transactions......... (20,571,581) (571,786) --------------- --------------- Net increase (decrease) in net assets........ 17,821,513 (21,702,607) NET ASSETS: Beginning of year........ 201,576,453 223,279,060 --------------- --------------- End of year.............. $ 219,397,966 $ 201,576,453 =============== ===============
(a) For the period July 23, 2012 to December 31, 2012. (b) For the period May 2, 2011 to December 31, 2011. (c) For the period April 30, 2012 to December 31, 2012. (d) For the period November 12, 2012 to December 31, 2012. The accompanying notes are an integral part of these financial statements. 62 The accompanying notes are an integral part of these financial statements. 63 METROPOLITAN LIFE SEPARATE ACCOUNT E OF METROPOLITAN LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONCLUDED) FOR THE YEARS ENDED DECEMBER 31, 2012 AND 2011
MSF T. ROWE PRICE MSF T. ROWE PRICE MSF RUSSELL 2000 INDEX LARGE CAP GROWTH SMALL CAP GROWTH INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION -------------------------------- --------------------------------- -------------------------------- 2012 2011 2012 2011 2012 2011 --------------- --------------- ---------------- ---------------- --------------- --------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)................. $ (615,070) $ (807,274) $ (2,349,685) $ (2,302,784) $ (3,527,758) $ (3,438,620) Net realized gains (losses)............... 4,517,799 3,720,824 7,734,292 4,920,269 36,244,125 10,695,895 Change in unrealized gains (losses) on investments............ 32,651,591 (16,165,693) 24,747,725 (6,874,835) 5,484,801 (6,549,932) --------------- --------------- ---------------- ---------------- --------------- --------------- Net increase (decrease) in net assets resulting from operations...... 36,554,320 (13,252,143) 30,132,332 (4,257,350) 38,201,168 707,343 --------------- --------------- ---------------- ---------------- --------------- --------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners................. 15,375,496 20,490,122 8,872,447 6,108,434 13,711,065 21,942,313 Net transfers (including fixed account)......... (9,049,918) (8,430,152) 3,361,951 (4,168,617) (7,211,093) 4,699,938 Contract charges......... (763,111) (630,785) (398,694) (352,198) (758,758) (523,750) Transfers for contract benefits and terminations........... (22,646,386) (24,716,116) (20,579,760) (18,407,429) (24,156,578) (25,824,691) --------------- --------------- ---------------- ---------------- --------------- --------------- Net increase (decrease) in net assets resulting from contract transactions......... (17,083,919) (13,286,931) (8,744,056) (16,819,810) (18,415,364) 293,810 --------------- --------------- ---------------- ---------------- --------------- --------------- Net increase (decrease) in net assets........ 19,470,401 (26,539,074) 21,388,276 (21,077,160) 19,785,804 1,001,153 NET ASSETS: Beginning of year........ 253,478,593 280,017,667 174,880,384 195,957,544 265,121,409 264,120,256 --------------- --------------- ---------------- ---------------- --------------- --------------- End of year.............. $ 272,948,994 $ 253,478,593 $ 196,268,660 $ 174,880,384 $ 284,907,213 $ 265,121,409 =============== =============== ================ ================ =============== =============== MSF VAN ECK MSF WESTERN ASSET MANAGEMENT MSF WESTERN ASSET GLOBAL NATURAL RESOURCES STRATEGIC BOND OPPORTUNITIES MANAGEMENT U.S. GOVERNMENT INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION -------------------------------- --------------------------------- -------------------------------- 2012 2011 2012 2011 2012 2011 --------------- --------------- ---------------- --------------- --------------- --------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)................. $ (502,111) $ (64,217) $ 5,589,302 $ 9,809,292 $ 1,501,349 $ 95,483 Net realized gains (losses)............... 2,207,476 2,979,987 3,195,133 2,685,564 350,010 8,382,398 Change in unrealized gains (losses) on investments............ (930,623) (9,826,380) 15,183,806 (604,578) 2,356,488 1,018,684 --------------- --------------- ---------------- --------------- --------------- --------------- Net increase (decrease) in net assets resulting from operations...... 774,742 (6,910,610) 23,968,241 11,890,278 4,207,847 9,496,565 --------------- --------------- ---------------- --------------- --------------- --------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners................. 2,071,819 10,973,817 7,182,614 7,748,617 10,479,429 18,992,601 Net transfers (including fixed account)......... 4,288,138 7,740,528 3,236,689 (15,213,571) 4,251,221 (8,730,097) Contract charges......... (441,040) (260,778) (627,965) (619,207) (1,091,350) (959,871) Transfers for contract benefits and terminations........... (1,198,738) (659,912) (28,542,548) (30,317,278) (23,308,896) (23,246,845) --------------- --------------- ---------------- --------------- --------------- --------------- Net increase (decrease) in net assets resulting from contract transactions......... 4,720,179 17,793,655 (18,751,210) (38,401,439) (9,669,596) (13,944,212) --------------- --------------- ---------------- --------------- --------------- --------------- Net increase (decrease) in net assets........ 5,494,921 10,883,045 5,217,031 (26,511,161) (5,461,749) (4,447,647) NET ASSETS: Beginning of year........ 35,583,743 24,700,698 248,899,097 275,410,258 235,422,481 239,870,128 --------------- --------------- ---------------- --------------- --------------- --------------- End of year.............. $ 41,078,664 $ 35,583,743 $ 254,116,128 $ 248,899,097 $ 229,960,732 $ 235,422,481 =============== =============== ================ =============== =============== =============== MSF ZENITH EQUITY INVESTMENT DIVISION --------------------------------- 2012 2011 --------------- ---------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)................. $ (291,549) $ (214,903) Net realized gains (losses)............... (1,334,514) (2,272,347) Change in unrealized gains (losses) on investments............ 9,621,752 (973,507) --------------- ---------------- Net increase (decrease) in net assets resulting from operations...... 7,995,689 (3,460,757) --------------- ---------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners................. 717,440 748,333 Net transfers (including fixed account)......... (1,240,064) (1,205,437) Contract charges......... (73,219) (82,022) Transfers for contract benefits and terminations........... (10,325,987) (10,961,347) --------------- ---------------- Net increase (decrease) in net assets resulting from contract transactions......... (10,921,830) (11,500,473) --------------- ---------------- Net increase (decrease) in net assets........ (2,926,141) (14,961,230) NET ASSETS: Beginning of year........ 66,504,213 81,465,443 --------------- ---------------- End of year.............. $ 63,578,072 $ 66,504,213 =============== ================
(a) For the period July 23, 2012 to December 31, 2012. (b) For the period May 2, 2011 to December 31, 2011. (c) For the period April 30, 2012 to December 31, 2012. (d) For the period November 12, 2012 to December 31, 2012. The accompanying notes are an integral part of these financial statements. 64 The accompanying notes are an integral part of these financial statements. 65 METROPOLITAN LIFE SEPARATE ACCOUNT E OF METROPOLITAN LIFE INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS 1. ORGANIZATION Metropolitan Life Separate Account E (the "Separate Account"), a separate account of Metropolitan Life Insurance Company (the "Company"), was established by the Company's Board of Directors on September 27, 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 New York State Department of Financial Services. The Separate Account is divided into Investment Divisions, each of which is treated as an individual accounting entity for financial reporting purposes. Each Investment Division invests in shares of the corresponding fund, series, or portfolio (with the same name) of registered investment management companies (the "Trusts"), which are presented below: American Funds Insurance Series ("American Funds") Calvert Variable Series, Inc. ("Calvert") Fidelity Variable Insurance Products ("Fidelity VIP") Met Investors Series Trust ("MIST")* Metropolitan Series Fund ("MSF")* *See Note 5 for a discussion of additional information on related party transactions. The assets of each of the Investment Divisions of the Separate Account are registered in the name of the Company. Under applicable insurance law, the assets and liabilities of the Separate Account are clearly identified and distinguished from the Company's other assets and liabilities. The portion of the Separate Account's assets applicable to the Contracts is not chargeable with liabilities arising out of any other business the Company may conduct. 2. LIST OF INVESTMENT DIVISIONS A. Purchase payments, less any applicable charges, applied to the Separate Account are invested in one or more Investment Divisions in accordance with the selection made by the contract owner. The following Investment Divisions had net assets as of December 31, 2012: American Funds Bond Investment Division MIST American Funds Growth Allocation Investment American Funds Global Small Capitalization Division (a) Investment Division MIST American Funds Growth Investment Division American Funds Growth Investment Division MIST American Funds Moderate Allocation American Funds Growth-Income Investment Division Investment Division (a) Calvert VP SRI Balanced Investment Division MIST AQR Global Risk Balanced Investment Division Calvert VP SRI Mid Cap Growth Investment Division MIST BlackRock Global Tactical Strategies Investment Fidelity VIP Equity-Income Investment Division Division Fidelity VIP FundsManager 50% Investment Division (b) MIST BlackRock Large Cap Core Investment Fidelity VIP FundsManager 60% Investment Division Division (a) Fidelity VIP Growth Investment Division Variable B Investment Division (c) Fidelity VIP Investment Grade Bond Investment Variable C Investment Division (c) Division MIST Clarion Global Real Estate Investment Fidelity VIP Money Market Investment Division (a) Division (a) MIST AllianceBernstein Global Dynamic Allocation MIST Dreman Small Cap Value Investment Division Investment Division MIST Harris Oakmark International Investment MIST American Funds Balanced Allocation Division (a) Investment Division (a) MIST Invesco Balanced-Risk Allocation Investment MIST American Funds Bond Investment Division Division (b)
66 METROPOLITAN LIFE SEPARATE ACCOUNT E OF METROPOLITAN LIFE INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 2. LIST OF INVESTMENT DIVISIONS -- (CONTINUED) MIST Invesco Small Cap Growth Investment MIST SSgA Growth ETF Investment Division (a) Division (a) MIST T. Rowe Price Mid Cap Growth Investment MIST Janus Forty Investment Division (a) Division (a) MIST JPMorgan Global Active Allocation Investment MIST Third Avenue Small Cap Value Investment Division (b) Division MIST Legg Mason ClearBridge Aggressive Growth MSF Baillie Gifford International Stock Investment Investment Division (a) Division (a) MIST Loomis Sayles Global Markets Investment MSF Barclays Capital Aggregate Bond Index Division Investment Division (a) MIST Lord Abbett Bond Debenture Investment MSF BlackRock Aggressive Growth Investment Division (a) Division (a) MIST Lord Abbett Mid Cap Value Investment MSF BlackRock Bond Income Investment Division (a) Division (a)(b) MSF BlackRock Diversified Investment Division (a) MIST Met/Eaton Vance Floating Rate Investment MSF BlackRock Large Cap Value Investment Division Division (a) MIST Met/Franklin Income Investment Division MSF BlackRock Legacy Large Cap Growth Investment MIST Met/Franklin Low Duration Total Return Division (a) Investment Division MSF BlackRock Money Market Investment MIST Met/Franklin Mutual Shares Investment Division (a) Division MSF Davis Venture Value Investment Division (a) MIST Met/Franklin Templeton Founding Strategy MSF FI Value Leaders Investment Division (a) Investment Division MSF Jennison Growth Investment Division (a) MIST Met/Templeton Growth Investment Division MSF Loomis Sayles Small Cap Core Investment MIST Met/Templeton International Bond Investment Division (a) Division MSF Loomis Sayles Small Cap Growth Investment MIST MetLife Aggressive Strategy Investment Division (a) Division (a) MSF Met/Artisan Mid Cap Value Investment MIST MetLife Balanced Plus Investment Division Division (a) MIST MetLife Multi-Index Targeted Risk Investment MSF Met/Dimensional International Small Company Division (b) Investment Division MIST MFS Emerging Markets Equity Investment MSF MetLife Conservative Allocation Investment Division Division (a) MIST MFS Research International Investment MSF MetLife Conservative to Moderate Allocation Division (a) Investment Division (a) MIST MLA Mid Cap Investment Division (a) MSF MetLife Mid Cap Stock Index Investment MIST Morgan Stanley Mid Cap Growth Investment Division (a) Division (a) MSF MetLife Moderate Allocation Investment MIST PIMCO Inflation Protected Bond Investment Division (a) Division (a) MSF MetLife Moderate to Aggressive Allocation MIST PIMCO Total Return Investment Division (a) Investment Division (a) MIST Pioneer Strategic Income Investment Division MSF MetLife Stock Index Investment Division (a) MIST Pyramis Government Income Investment MSF MFS Total Return Investment Division (a) Division MSF MFS Value Investment Division (a) MIST RCM Technology Investment Division (a) MSF MSCI EAFE Index Investment Division (a) MIST Schroders Global Multi-Asset Investment MSF Neuberger Berman Genesis Investment Division (b) Division (a) MIST SSgA Growth and Income ETF Investment MSF Oppenheimer Global Equity Investment Division (a) Division (a)
67 METROPOLITAN LIFE SEPARATE ACCOUNT E OF METROPOLITAN LIFE INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 2. LIST OF INVESTMENT DIVISIONS -- (CONCLUDED) MSF Russell 2000 Index Investment Division (a) MSF Western Asset Management Strategic Bond MSF T. Rowe Price Large Cap Growth Investment Opportunities Investment Division (a) Division (a) MSF Western Asset Management U.S. Government MSF T. Rowe Price Small Cap Growth Investment Investment Division (a) Division (a) MSF Zenith Equity Investment Division MSF Van Eck Global Natural Resources Investment Division
(a) This Investment Division invests in two or more share classes within the underlying fund or portfolio of the Trusts. (b) This Investment Division began operations during the year ended December 31, 2012. (c) Variable B Investment Division and Variable C Investment Division only invest in the BlackRock Large Cap Core Portfolio. B. The following Investment Divisions had no net assets as of December 31, 2012: MIST MetLife Defensive Strategy Investment Division* Variable D Investment Division *This Investment Division commenced on April 30, 2012. 3. PORTFOLIO CHANGES The following Investment Divisions ceased operations during the year ended December 31, 2012: MIST Oppenheimer Capital Appreciation Investment Division MSF Lord Abbett Mid Cap Value Investment Division The operations of the Investment Divisions were affected by the following changes that occurred during the year ended December 31, 2012: NAME CHANGES: Former Name New Name (MIST) Lazard Mid Cap Portfolio (MIST) MLA Mid Cap Portfolio (MSF) Artio International Stock Portfolio (MSF) Baillie Gifford International Stock Portfolio (MSF) Morgan Stanley EAFE Index Portfolio (MSF) MSCI EAFE Index Portfolio (MSF) Neuberger Berman Mid Cap Value Portfolio (MSF) Lord Abbett Mid Cap Value Portfolio
MERGERS: Former Portfolio New Portfolio (MIST) Oppenheimer Capital Appreciation Portfolio (MSF) Jennison Growth Portfolio (MSF) Lord Abbett Mid Cap Value Portfolio (MIST) Lord Abbett Mid Cap Value Portfolio
4. SIGNIFICANT ACCOUNTING POLICIES BASIS OF ACCOUNTING The financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") applicable for variable annuity separate accounts registered as unit investment trusts. 68 METROPOLITAN LIFE SEPARATE ACCOUNT E OF METROPOLITAN LIFE INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 4. SIGNIFICANT ACCOUNTING POLICIES -- (CONTINUED) SECURITY TRANSACTIONS Security transactions are recorded on a trade date basis. Realized gains and losses on the sales of investments are computed on the basis of the average cost of the investment sold. Income from dividends and realized gain distributions are recorded on the ex-distribution date. SECURITY VALUATION An Investment Division's investment in shares of a fund, series, or portfolio of the Trusts is valued at fair value based on the closing net asset value ("NAV") or price per share as determined by the Trusts as of the end of the year. All changes in fair value are recorded as changes in unrealized gains (losses) on investments in the statements of operations of the applicable Investment Divisions. The Separate Account defines fair value as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The Separate Account prioritizes the inputs to fair valuation techniques and allows for the use of unobservable inputs to the extent that observable inputs are not available. The Separate Account has categorized its assets based on the priority of the inputs to the respective valuation technique. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets (Level 1) and the lowest priority to unobservable inputs (Level 3). An asset's classification within the fair value hierarchy is based on the lowest level of significant input to its valuation. The input levels are as follows: Level 1 Unadjusted quoted prices in active markets for identical assets that the Separate Account has the ability to access. Level 2 Observable inputs other than quoted prices in Level 1 that are observable either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market or prices for similar instruments. Level 3 Unobservable inputs that are supported by little or no market activity and are significant to the fair value of the assets, representing the Separate Account's own assumptions about the assumptions a market participant would use in valuing the asset, and based on the best information available. Each Investment Division invests in shares of open-end mutual funds which calculate a daily NAV based on the fair value of the underlying securities in their portfolios. As a result, and as required by law, shares of open-end mutual funds are purchased and redeemed at their quoted daily NAV as reported by the Trusts at the close of each business day. On that basis, the inputs used to value all shares held by the Separate Account, which are measured at fair value on a recurring basis, are classified as Level 2. There were no transfers between Level 1 and Level 2, and no activity in Level 3 during the year. FEDERAL INCOME TAXES The operations of the Separate Account form a part of the total operations of the Company and are not taxed separately. The Company is taxed as a life insurance company under the provisions of the Internal Revenue Code ("IRC"). Under the current provisions of the IRC, the Company does not expect to incur federal income taxes on the earnings of the Separate Account to the extent the earnings are credited under the Contracts. Accordingly, no charge is currently being made to the Separate Account for federal income taxes. The Company will periodically review the status of this policy in the event of changes in the tax law. A charge may be made in future years for any federal income taxes that would be attributable to the 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 between 3.0 and 6.0 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. 69 METROPOLITAN LIFE SEPARATE ACCOUNT E OF METROPOLITAN LIFE INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 4. SIGNIFICANT ACCOUNTING POLICIES -- (CONCLUDED) 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, and are reported as contract transactions on the statements of changes in net assets of the applicable Investment Divisions. NET TRANSFERS Funds transferred by the contract owner into or out of Investment Divisions within the Separate Account or into or out of the fixed account (an investment option in the Company's general account) are recorded on a net basis as net transfers in the statements of changes in net assets of the applicable Investment Divisions. USE OF ESTIMATES The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect amounts reported herein. Actual results could differ from these estimates. ADOPTION OF NEW ACCOUNTING PRONOUNCEMENT Effective January 1, 2012, the Separate Account adopted new guidance regarding fair value measurements that establishes common requirements for measuring fair value and for disclosing information about fair value measurements in accordance with GAAP and International Financial Reporting Standards. Some of the amendments clarify the Financial Accounting Standards Board's intent on the application of existing fair value measurement requirements. Other amendments change a particular principle or requirement for measuring fair value or for disclosing information about fair value measurements. The adoption did not have an impact on the Separate Account's financial statements. 5. EXPENSES AND RELATED PARTY TRANSACTIONS The following annual Separate Account charges paid to the Company are asset-based charges and assessed through a daily reduction in unit values, which are recorded as expenses in the accompanying statements of operations of the applicable Investment Divisions: Mortality and Expense Risk -- The mortality risk assumed by the Company is the risk that those insured may die sooner than anticipated and therefore, the Company will pay an aggregate amount of death benefits greater than anticipated. The expense risk assumed is the risk that expenses incurred in issuing and administering the 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. 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. Earnings Preservation Benefit -- For an additional charge, the Company will provide this additional death benefit. Enhanced Stepped-Up Provision -- For an additional charge, the total death benefit payable may be increased based on the greater of the account balance or highest annual contract anniversary value in the contract or the greater of the account balance, annual increase amount or highest annual contract anniversary value in the contract. Guaranteed Withdrawal Benefit for Life -- For a charge that includes the Mortality and Expense Risk charge and a guaranteed withdrawal benefit, the Company will guarantee the periodic return on the investment for life of a single annuitant or joint annuitants. 70 METROPOLITAN LIFE SEPARATE ACCOUNT E OF METROPOLITAN LIFE INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 5. EXPENSES AND RELATED PARTY TRANSACTIONS -- (CONCLUDED) The table below represents the range of effective annual rates for each respective charge for the year ended December 31, 2012. ------------------------------------------------------------------------------------------------------------------------------ Mortality and Expense Risk 0.00% - 2.05% ------------------------------------------------------------------------------------------------------------------------------ Administrative 0.20% - 0.50% ------------------------------------------------------------------------------------------------------------------------------ Earnings Preservation Benefit 0.25% ------------------------------------------------------------------------------------------------------------------------------ Enhanced Stepped-Up Provision 0.10% - 0.35% ------------------------------------------------------------------------------------------------------------------------------ Guaranteed Withdrawal Benefit for Life 1.90% - 2.05% ------------------------------------------------------------------------------------------------------------------------------
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. The range of the effective rates disclosed above excludes any waivers granted to certain Investment Divisions. The following optional rider charges paid to the Company are charged at each contract anniversary date through the redemption of units, which are recorded as contract charges in the accompanying statements of changes in net assets of the applicable Investment Divisions: 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. Lifetime Withdrawal Guarantee -- For an additional charge, the Company will guarantee the periodic return on the investment for life. Guaranteed Withdrawal Benefit -- For an additional charge, the Company will guarantee the periodic return on the investment. Guaranteed Minimum Income Benefit -- For an additional charge, the Company will guarantee a minimum payment regardless of market conditions. Enhanced Death Benefit -- For an additional charge, the amount of the death benefit will be the greater of the account value or the death benefit base. Enhanced Guaranteed Withdrawal Benefit -- For an additional charge, the Company will guarantee that at least the entire amount of purchase payments will be returned through a series of withdrawals without annuitizing. The table below represents the range of effective annual rates for each respective charge for the year ended December 31, 2012: ----------------------------------------------------------------------------------------------------------------------------- Guaranteed Minimum Accumulation Benefit 0.75% ----------------------------------------------------------------------------------------------------------------------------- Lifetime Withdrawal Guarantee 0.50% - 1.80% ----------------------------------------------------------------------------------------------------------------------------- Guaranteed Withdrawal Benefit 0.50% - 0.95% ----------------------------------------------------------------------------------------------------------------------------- Guaranteed Minimum Income Benefit 0.35% - 1.50% ----------------------------------------------------------------------------------------------------------------------------- Enhanced Death Benefit 0.60% - 1.50% ----------------------------------------------------------------------------------------------------------------------------- Enhanced Guaranteed Withdrawal Benefit 0.55% - 1.00% -----------------------------------------------------------------------------------------------------------------------------
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 which ranges from $15 to $30 is assessed on an annual basis for Contracts, which may be waived if the Contract reaches a certain asset size or under certain circumstances. In addition, most Contracts impose a surrender charge which ranges from 0% to 10%, if the contract is partially or fully surrendered within the specified surrender charge period. These charges are paid to the Company, assessed through the redemption of units, and recorded as contract charges in the accompanying statements of changes in net assets of the applicable Investment Divisions. MetLife Advisers, LLC, which acts in the capacity of investment adviser to the portfolios of the MIST and MSF Trusts, is an affiliate of the Company. 71 METROPOLITAN LIFE SEPARATE ACCOUNT E OF METROPOLITAN LIFE INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 6. STATEMENTS OF INVESTMENTS
AS OF DECEMBER 31, 2012 --------------------------------- SHARES COST ($) -------------- -------------- American Funds Bond Investment Division....................... 11,504,873 127,198,088 American Funds Global Small Capitalization Investment Division........................................ 25,793,623 526,925,551 American Funds Growth Investment Division..................... 16,183,012 838,169,950 American Funds Growth-Income Investment Division.............. 19,046,929 658,255,823 Calvert VP SRI Balanced Investment Division................... 27,054,424 49,913,419 Calvert VP SRI Mid Cap Growth Investment Division............. 377,878 10,154,140 Fidelity VIP Equity-Income Investment Division................ 4,112,065 90,699,501 Fidelity VIP FundsManager 50% Investment Division (a)......... 2,668,725 28,377,986 Fidelity VIP FundsManager 60% Investment Division............. 24,904,977 240,354,845 Fidelity VIP Growth Investment Division....................... 1,850,271 72,722,574 Fidelity VIP Investment Grade Bond Investment Division........ 1,705,843 21,909,472 Fidelity VIP Money Market Investment Division................. 8,724,753 8,724,753 MIST AllianceBernstein Global Dynamic Allocation Investment Division........................................ 108,971,354 1,085,816,403 MIST American Funds Balanced Allocation Investment Division........................................ 65,482,681 577,417,120 MIST American Funds Bond Investment Division.................. 8,471,752 84,176,499 MIST American Funds Growth Allocation Investment Division..... 33,260,336 258,612,992 MIST American Funds Growth Investment Division................ 30,399,747 248,322,488 MIST American Funds Moderate Allocation Investment Division........................................ 86,463,661 783,178,433 MIST AQR Global Risk Balanced Investment Division............. 150,808,661 1,630,041,628 MIST BlackRock Global Tactical Strategies Investment Division........................................ 154,300,380 1,508,520,040 MIST BlackRock Large Cap Core Investment Division............. 63,664,530 665,952,178 Variable B Investment Division................................ 1,278,422 13,739,265 Variable C Investment Division................................ 125,979 1,360,122 MIST Clarion Global Real Estate Investment Division........... 21,421,087 275,243,063 MIST Dreman Small Cap Value Investment Division............... 1,095,930 14,360,333 MIST Harris Oakmark International Investment Division......... 32,073,275 442,272,896 MIST Invesco Balanced-Risk Allocation Investment Division (b).................................... 25,030,609 259,539,487 MIST Invesco Small Cap Growth Investment Division............. 2,497,369 32,265,264 MIST Janus Forty Investment Division.......................... 5,090,086 324,269,279 MIST JPMorgan Global Active Allocation Investment Division (b).................................... 16,944,202 173,609,349 MIST Legg Mason ClearBridge Aggressive Growth Investment Division........................................ 10,279,774 80,514,885 MIST Loomis Sayles Global Markets Investment Division......... 2,200,767 25,249,766 MIST Lord Abbett Bond Debenture Investment Division........... 24,065,172 290,350,302 MIST Lord Abbett Mid Cap Value Investment Division (b)........ 26,079,401 439,332,510 MIST Met/Eaton Vance Floating Rate Investment Division........ 699,051 7,254,446 MIST Met/Franklin Income Investment Division.................. 9,033,560 89,862,507 MIST Met/Franklin Low Duration Total Return Investment Division........................................ 1,503,123 14,960,055 MIST Met/Franklin Mutual Shares Investment Division........... 7,280,055 56,865,261 MIST Met/Franklin Templeton Founding Strategy Investment Division........................................ 6,328,662 54,290,538 MIST Met/Templeton Growth Investment Division................. 2,663,373 22,849,929 FOR THE YEAR ENDED DECEMBER 31, 2012 --------------------------------- COST OF PROCEEDS PURCHASES ($) FROM SALES ($) --------------- --------------- American Funds Bond Investment Division....................... 12,511,671 20,103,113 American Funds Global Small Capitalization Investment Division........................................ 14,087,223 69,270,763 American Funds Growth Investment Division..................... 17,871,525 136,992,948 American Funds Growth-Income Investment Division.............. 19,031,180 85,039,373 Calvert VP SRI Balanced Investment Division................... 2,694,085 5,489,293 Calvert VP SRI Mid Cap Growth Investment Division............. 2,334,555 1,695,837 Fidelity VIP Equity-Income Investment Division................ 9,181,908 10,629,062 Fidelity VIP FundsManager 50% Investment Division (a)......... 28,436,498 58,660 Fidelity VIP FundsManager 60% Investment Division............. 51,218,163 10,266,919 Fidelity VIP Growth Investment Division....................... 1,426,773 8,748,506 Fidelity VIP Investment Grade Bond Investment Division........ 3,462,112 2,733,425 Fidelity VIP Money Market Investment Division................. 37,250,681 40,693,967 MIST AllianceBernstein Global Dynamic Allocation Investment Division........................................ 608,423,009 -- MIST American Funds Balanced Allocation Investment Division........................................ 43,171,015 43,590,104 MIST American Funds Bond Investment Division.................. 16,175,486 8,171,692 MIST American Funds Growth Allocation Investment Division..... 20,463,775 34,610,493 MIST American Funds Growth Investment Division................ 14,839,273 20,711,798 MIST American Funds Moderate Allocation Investment Division........................................ 53,775,804 63,745,153 MIST AQR Global Risk Balanced Investment Division............. 1,036,201,319 -- MIST BlackRock Global Tactical Strategies Investment Division........................................ 791,953,904 -- MIST BlackRock Large Cap Core Investment Division............. 21,091,458 84,842,984 Variable B Investment Division................................ 360,996 1,925,648 Variable C Investment Division................................ 14,768 4,604 MIST Clarion Global Real Estate Investment Division........... 11,400,185 28,456,470 MIST Dreman Small Cap Value Investment Division............... 2,085,862 1,906,061 MIST Harris Oakmark International Investment Division......... 33,627,087 67,763,897 MIST Invesco Balanced-Risk Allocation Investment Division (b).................................... 259,539,487 -- MIST Invesco Small Cap Growth Investment Division............. 6,244,222 7,378,637 MIST Janus Forty Investment Division.......................... 26,947,778 46,044,934 MIST JPMorgan Global Active Allocation Investment Division (b).................................... 173,609,349 -- MIST Legg Mason ClearBridge Aggressive Growth Investment Division........................................ 12,695,972 15,670,535 MIST Loomis Sayles Global Markets Investment Division......... 6,485,747 5,139,007 MIST Lord Abbett Bond Debenture Investment Division........... 39,209,220 33,466,869 MIST Lord Abbett Mid Cap Value Investment Division (b)........ 483,821,006 43,499,342 MIST Met/Eaton Vance Floating Rate Investment Division........ 2,884,933 1,665,373 MIST Met/Franklin Income Investment Division.................. 23,055,003 14,498,014 MIST Met/Franklin Low Duration Total Return Investment Division........................................ 13,157,192 4,895,839 MIST Met/Franklin Mutual Shares Investment Division........... 14,212,887 7,089,913 MIST Met/Franklin Templeton Founding Strategy Investment Division........................................ 9,260,122 8,234,626 MIST Met/Templeton Growth Investment Division................. 5,814,778 5,080,636
(a) For the period July 23, 2012 to December 31, 2012. (b) For the period April 30, 2012 to December 31, 2012. (c) For the period November 12, 2012 to December 31, 2012. 72 METROPOLITAN LIFE SEPARATE ACCOUNT E OF METROPOLITAN LIFE INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 6. STATEMENTS OF INVESTMENTS -- (CONTINUED)
AS OF DECEMBER 31, 2012 --------------------------------- SHARES COST ($) -------------- -------------- MIST Met/Templeton International Bond Investment Division........................................ 740,238 8,701,281 MIST MetLife Aggressive Strategy Investment Division.......... 11,425,409 117,352,299 MIST MetLife Balanced Plus Investment Division................ 143,603,634 1,413,841,239 MIST MetLife Multi-Index Targeted Risk Investment Division (c).................................... 679,470 6,846,084 MIST MFS Emerging Markets Equity Investment Division.......... 4,620,041 45,592,218 MIST MFS Research International Investment Division........... 22,652,940 253,331,789 MIST MLA Mid Cap Investment Division.......................... 4,705,494 54,770,936 MIST Morgan Stanley Mid Cap Growth Investment Division........ 28,021,513 286,261,886 MIST PIMCO Inflation Protected Bond Investment Division....... 59,288,181 661,548,567 MIST PIMCO Total Return Investment Division................... 96,615,994 1,141,178,255 MIST Pioneer Strategic Income Investment Division............. 6,093,980 66,040,642 MIST Pyramis Government Income Investment Division............ 54,382,361 587,590,643 MIST RCM Technology Investment Division....................... 31,591,130 134,085,902 MIST Schroders Global Multi-Asset Investment Division (b)..... 12,325,519 128,688,844 MIST SSgA Growth and Income ETF Investment Division........... 76,519,402 816,552,704 MIST SSgA Growth ETF Investment Division...................... 10,004,631 101,938,392 MIST T. Rowe Price Mid Cap Growth Investment Division......... 32,457,790 272,955,924 MIST Third Avenue Small Cap Value Investment Division......... 775,892 11,080,468 MSF Baillie Gifford International Stock Investment Division... 17,079,655 186,549,293 MSF Barclays Capital Aggregate Bond Index Investment Division........................................ 100,780,126 1,087,213,277 MSF BlackRock Aggressive Growth Investment Division........... 15,336,699 342,624,920 MSF BlackRock Bond Income Investment Division................. 4,490,922 478,808,487 MSF BlackRock Diversified Investment Division................. 36,110,547 589,913,794 MSF BlackRock Large Cap Value Investment Division............. 22,618,242 245,604,368 MSF BlackRock Legacy Large Cap Growth Investment Division........................................ 5,864,337 137,384,748 MSF BlackRock Money Market Investment Division................ 889,848 88,984,815 MSF Davis Venture Value Investment Division................... 17,025,060 494,345,145 MSF FI Value Leaders Investment Division...................... 414,747 69,953,050 MSF Jennison Growth Investment Division....................... 13,245,876 153,427,450 MSF Loomis Sayles Small Cap Core Investment Division.......... 639,665 133,630,621 MSF Loomis Sayles Small Cap Growth Investment Division........ 3,798,467 35,469,168 MSF Met/Artisan Mid Cap Value Investment Division............. 1,086,949 227,391,597 MSF Met/Dimensional International Small Company Investment Division........................................ 342,233 4,821,958 MSF MetLife Conservative Allocation Investment Division....... 49,845,783 542,522,167 MSF MetLife Conservative to Moderate Allocation Investment Division........................................ 117,287,560 1,254,998,273 MSF MetLife Mid Cap Stock Index Investment Division........... 29,520,514 367,791,435 MSF MetLife Moderate Allocation Investment Division........... 328,116,274 3,472,276,718 MSF MetLife Moderate to Aggressive Allocation Investment Division........................................ 140,263,612 1,511,862,750 MSF MetLife Stock Index Investment Division................... 79,416,695 2,337,060,531 MSF MFS Total Return Investment Division...................... 994,120 134,049,376 MSF MFS Value Investment Division............................. 21,398,000 267,861,235 MSF MSCI EAFE Index Investment Division....................... 41,173,024 469,495,747 MSF Neuberger Berman Genesis Investment Division.............. 19,412,931 292,294,695 MSF Oppenheimer Global Equity Investment Division............. 13,229,482 182,999,226 FOR THE YEAR ENDED DECEMBER 31, 2012 -------------------------------- COST OF PROCEEDS PURCHASES ($) FROM SALES ($) ------------- -------------- MIST Met/Templeton International Bond Investment Division........................................ 2,512,959 1,098,121 MIST MetLife Aggressive Strategy Investment Division.......... 14,168,896 13,683,633 MIST MetLife Balanced Plus Investment Division................ 809,889,344 -- MIST MetLife Multi-Index Targeted Risk Investment Division (c).................................... 6,846,084 -- MIST MFS Emerging Markets Equity Investment Division.......... 5,341,027 4,377,755 MIST MFS Research International Investment Division........... 12,939,635 30,538,385 MIST MLA Mid Cap Investment Division.......................... 3,942,220 11,747,419 MIST Morgan Stanley Mid Cap Growth Investment Division........ 11,038,368 45,350,347 MIST PIMCO Inflation Protected Bond Investment Division....... 146,140,658 54,258,575 MIST PIMCO Total Return Investment Division................... 126,068,127 90,598,282 MIST Pioneer Strategic Income Investment Division............. 17,822,124 6,790,949 MIST Pyramis Government Income Investment Division............ 389,580,139 121,995 MIST RCM Technology Investment Division....................... 31,412,893 29,093,188 MIST Schroders Global Multi-Asset Investment Division (b)..... 128,688,844 -- MIST SSgA Growth and Income ETF Investment Division........... 90,463,166 47,479,084 MIST SSgA Growth ETF Investment Division...................... 33,206,186 21,773,684 MIST T. Rowe Price Mid Cap Growth Investment Division......... 53,541,720 29,105,186 MIST Third Avenue Small Cap Value Investment Division......... 1,320,039 767,257 MSF Baillie Gifford International Stock Investment Division... 6,733,061 23,940,374 MSF Barclays Capital Aggregate Bond Index Investment Division........................................ 139,241,702 104,239,792 MSF BlackRock Aggressive Growth Investment Division........... 7,059,038 57,058,015 MSF BlackRock Bond Income Investment Division................. 49,072,209 59,591,316 MSF BlackRock Diversified Investment Division................. 21,292,854 84,260,128 MSF BlackRock Large Cap Value Investment Division............. 48,851,936 25,641,858 MSF BlackRock Legacy Large Cap Growth Investment Division........................................ 8,822,454 20,523,886 MSF BlackRock Money Market Investment Division................ 41,938,747 40,630,998 MSF Davis Venture Value Investment Division................... 10,734,138 62,292,825 MSF FI Value Leaders Investment Division...................... 3,940,873 10,861,584 MSF Jennison Growth Investment Division....................... 96,184,892 19,449,751 MSF Loomis Sayles Small Cap Core Investment Division.......... 10,247,114 22,608,735 MSF Loomis Sayles Small Cap Growth Investment Division........ 2,718,764 12,351,101 MSF Met/Artisan Mid Cap Value Investment Division............. 11,416,027 32,865,044 MSF Met/Dimensional International Small Company Investment Division........................................ 1,309,572 899,111 MSF MetLife Conservative Allocation Investment Division....... 95,785,122 37,940,600 MSF MetLife Conservative to Moderate Allocation Investment Division........................................ 113,874,299 95,953,023 MSF MetLife Mid Cap Stock Index Investment Division........... 40,628,141 45,799,898 MSF MetLife Moderate Allocation Investment Division........... 161,919,221 226,532,135 MSF MetLife Moderate to Aggressive Allocation Investment Division........................................ 72,938,466 145,690,153 MSF MetLife Stock Index Investment Division................... 130,745,497 339,438,127 MSF MFS Total Return Investment Division...................... 11,201,501 18,929,794 MSF MFS Value Investment Division............................. 25,954,379 37,533,416 MSF MSCI EAFE Index Investment Division....................... 39,777,703 56,044,218 MSF Neuberger Berman Genesis Investment Division.............. 5,595,775 38,725,480 MSF Oppenheimer Global Equity Investment Division............. 11,927,360 31,908,355
(a) For the period July 23, 2012 to December 31, 2012. (b) For the period April 30, 2012 to December 31, 2012. (c) For the period November 12, 2012 to December 31, 2012. 73 METROPOLITAN LIFE SEPARATE ACCOUNT E OF METROPOLITAN LIFE INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 6. STATEMENTS OF INVESTMENTS -- (CONCLUDED)
AS OF DECEMBER 31, 2012 -------------------------------- SHARES COST ($) ------------- -------------- MSF Russell 2000 Index Investment Division.................... 18,944,569 230,363,068 MSF T. Rowe Price Large Cap Growth Investment Division........ 11,148,874 148,856,222 MSF T. Rowe Price Small Cap Growth Investment Division........ 16,557,400 222,000,585 MSF Van Eck Global Natural Resources Investment Division...... 3,199,273 46,793,436 MSF Western Asset Management Strategic Bond Opportunities Investment Division........................................ 18,251,515 223,861,365 MSF Western Asset Management U.S. Government Investment Division........................................ 18,693,860 225,187,375 MSF Zenith Equity Investment Division......................... 184,407 67,431,973 FOR THE YEAR ENDED DECEMBER 31, 2012 --------------------------------- COST OF PROCEEDS PURCHASES ($) FROM SALES ($) -------------- --------------- MSF Russell 2000 Index Investment Division.................... 20,136,055 37,835,065 MSF T. Rowe Price Large Cap Growth Investment Division........ 24,080,384 35,174,140 MSF T. Rowe Price Small Cap Growth Investment Division........ 41,785,804 35,396,820 MSF Van Eck Global Natural Resources Investment Division...... 11,174,761 4,211,367 MSF Western Asset Management Strategic Bond Opportunities Investment Division........................................ 23,554,583 36,716,515 MSF Western Asset Management U.S. Government Investment Division........................................ 19,388,453 27,556,718 MSF Zenith Equity Investment Division......................... 2,368,591 13,581,949
(a) For the period July 23, 2012 to December 31, 2012. (b) For the period April 30, 2012 to December 31, 2012. (c) For the period November 12, 2012 to December 31, 2012. 74 This page is intentionally left blank. METROPOLITAN LIFE SEPARATE ACCOUNT E OF METROPOLITAN LIFE INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 7. SCHEDULES OF UNITS FOR THE YEARS ENDED DECEMBER 31, 2012 AND 2011:
AMERICAN FUNDS GLOBAL AMERICAN FUNDS BOND SMALL CAPITALIZATION AMERICAN FUNDS GROWTH INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION -------------------------- -------------------------- --------------------------- 2012 2011 2012 2011 2012 2011 ------------ ------------ ------------ ------------ ------------- ------------- Units beginning of year.......... 7,776,072 8,896,331 20,869,442 21,870,431 6,775,576 7,571,854 Units issued and transferred from other funding options.... 1,294,094 1,356,161 2,280,060 4,626,048 582,815 914,304 Units redeemed and transferred to other funding options...... (1,806,685) (2,476,420) (4,513,715) (5,627,037) (1,329,079) (1,710,582) ------------ ------------ ------------ ------------ ------------- ------------- Units end of year................ 7,263,481 7,776,072 18,635,787 20,869,442 6,029,312 6,775,576 ============ ============ ============ ============ ============= ============= AMERICAN FUNDS CALVERT VP SRI GROWTH-INCOME CALVERT VP SRI BALANCED MID CAP GROWTH INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION -------------------------- -------------------------- -------------------------- 2012 2011 2012 2011 2012 2011 ------------ ------------- ------------ ------------ ------------ ------------ Units beginning of year.......... 7,279,154 7,599,619 1,762,417 1,850,748 338,107 371,121 Units issued and transferred from other funding options.... 845,722 1,332,035 152,782 142,931 40,083 50,570 Units redeemed and transferred to other funding options...... (1,605,529) (1,652,500) (238,662) (231,262) (58,853) (83,584) ------------ ------------- ------------ ------------ ------------ ------------ Units end of year................ 6,519,347 7,279,154 1,676,537 1,762,417 319,337 338,107 ============ ============= ============ ============ ============ ============
FIDELITY VIP FIDELITY VIP FIDELITY VIP EQUITY-INCOME FUNDSMANAGER 50% FUNDSMANAGER 60% INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION --------------------------- ------------------- -------------------------- 2012 2011 2012 (a) 2012 2011 ------------ ------------ ------------ ------------- ------------ Units beginning of year.......... 4,479,503 5,189,262 -- 20,820,080 10,055,976 Units issued and transferred from other funding options.... 171,820 228,952 2,534,046 5,611,397 11,360,209 Units redeemed and transferred to other funding options...... (739,794) (938,711) (47,605) (1,477,245) (596,105) ------------ ------------ ------------ ------------- ------------ Units end of year................ 3,911,529 4,479,503 2,486,441 24,954,232 20,820,080 ============ ============ ============ ============= ============ FIDELITY VIP INVESTMENT FIDELITY VIP FIDELITY VIP GROWTH GRADE BOND MONEY MARKET INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION -------------------------- -------------------------- -------------------------- 2012 2011 2012 2011 2012 2011 ------------ ------------ ------------ ------------ ------------- ------------ Units beginning of year.......... 1,783,529 2,111,729 691,358 761,081 786,743 766,151 Units issued and transferred from other funding options.... 82,916 111,010 122,670 127,620 7,746,136 10,767,743 Units redeemed and transferred to other funding options...... (232,486) (439,210) (127,869) (197,343) (7,983,987) (10,747,151) ------------ ------------ ------------ ------------ ------------- ------------ Units end of year................ 1,633,959 1,783,529 686,159 691,358 548,892 786,743 ============ ============ ============ ============ ============= ============
MIST ALLIANCEBERNSTEIN MIST AMERICAN FUNDS GLOBAL DYNAMIC ALLOCATION BALANCED ALLOCATION MIST AMERICAN FUNDS BOND INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION --------------------------- --------------------------- --------------------------- 2012 2011 (b) 2012 2011 2012 2011 ------------ ------------- ------------ ------------- ------------ ------------- Units beginning of year........... 49,226,036 -- 64,521,397 54,397,965 7,359,866 5,961,314 Units issued and transferred from other funding options..... 66,910,567 49,933,655 6,555,285 17,985,030 2,420,909 3,681,706 Units redeemed and transferred to other funding options....... (6,100,527) (707,619) (7,513,622) (7,861,598) (1,829,460) (2,283,154) ------------ ------------- ------------ ------------- ------------ ------------- Units end of year................. 110,036,076 49,226,036 63,563,060 64,521,397 7,951,315 7,359,866 ============ ============= ============ ============= ============ ============= MIST AMERICAN FUNDS MIST AMERICAN MIST AMERICAN FUNDS GROWTH ALLOCATION FUNDS GROWTH MODERATE ALLOCATION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION -------------------------- -------------------------- -------------------------- 2012 2011 2012 2011 2012 2011 ------------ ------------ ------------ ------------ ------------ ------------ Units beginning of year........... 34,204,304 35,239,687 30,941,763 21,779,384 85,202,020 75,010,392 Units issued and transferred from other funding options..... 4,136,839 6,621,024 5,324,914 13,871,732 7,327,964 21,099,474 Units redeemed and transferred to other funding options....... (5,598,243) (7,656,407) (5,586,083) (4,709,353) (9,994,461) (10,907,846) ------------ ------------ ------------ ------------ ------------ ------------ Units end of year................. 32,742,900 34,204,304 30,680,594 30,941,763 82,535,523 85,202,020 ============ ============ ============ ============ ============ ============
MIST AQR GLOBAL MIST BLACKROCK GLOBAL MIST BLACKROCK RISK BALANCED TACTICAL STRATEGIES LARGE CAP CORE INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION -------------------------- --------------------------- --------------------------- 2012 2011 (b) 2012 2011 (b) 2012 2011 ------------ ------------ ------------ ------------- ------------ ------------- Units beginning of year........... 56,432,487 -- 74,095,325 -- 20,393,863 20,665,064 Units issued and transferred from other funding options..... 100,576,032 57,034,923 91,329,287 75,032,567 1,856,662 3,888,249 Units redeemed and transferred to other funding options....... (7,139,626) (602,436) (10,151,738) (937,242) (3,582,693) (4,159,450) ------------ ------------ ------------ ------------- ------------ ------------- Units end of year................. 149,868,893 56,432,487 155,272,874 74,095,325 18,667,832 20,393,863 ============ ============ ============ ============= ============ ============= MIST CLARION VARIABLE B VARIABLE C GLOBAL REAL ESTATE INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION -------------------------- -------------------------- -------------------------- 2012 2011 2012 2011 2012 2011 ------------ ------------ ------------ ------------ ------------ ------------ Units beginning of year........... 86,527 103,828 6,155 6,244 16,016,738 15,981,514 Units issued and transferred from other funding options..... 5,170 850 -- -- 2,348,265 3,423,382 Units redeemed and transferred to other funding options....... (12,210) (18,151) (11) (89) (3,586,719) (3,388,158) ------------ ------------ ------------ ------------ ------------ ------------ Units end of year................. 79,487 86,527 6,144 6,155 14,778,284 16,016,738 ============ ============ ============ ============ ============ ============
(a) For the period July 23, 2012 to December 31, 2012. (b) For the period May 2, 2011 to December 31, 2011. (c) For the period April 30, 2012 to December 31, 2012. (d) For the period November 12, 2012 to December 31, 2012. 76 77 METROPOLITAN LIFE SEPARATE ACCOUNT E OF METROPOLITAN LIFE INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 7. SCHEDULES OF UNITS -- (CONTINUED) FOR THE YEARS ENDED DECEMBER 31, 2012 AND 2011:
MIST DREMAN MIST HARRIS OAKMARK MIST INVESCO SMALL CAP VALUE INTERNATIONAL BALANCED-RISK ALLOCATION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION --------------------------- --------------------------- ------------------------ 2012 2011 2012 2011 2012 (c) ------------ ------------- ------------ ------------- ------------- Units beginning of year........... 1,077,146 657,621 24,605,233 22,318,089 -- Units issued and transferred from other funding options..... 275,802 635,165 4,633,553 7,985,226 257,675,648 Units redeemed and transferred to other funding options....... (253,881) (215,640) (6,664,519) (5,698,082) (7,349,767) ------------ ------------- ------------ ------------- ------------- Units end of year................. 1,099,067 1,077,146 22,574,267 24,605,233 250,325,881 ============ ============= ============ ============= ============= MIST INVESCO MIST JPMORGAN SMALL CAP GROWTH MIST JANUS FORTY GLOBAL ACTIVE ALLOCATION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION -------------------------- -------------------------- ------------------------ 2012 2011 2012 2011 2012 (c) ------------ ------------ ------------ ------------ ------------- Units beginning of year........... 2,324,510 2,311,559 2,221,380 2,367,336 -- Units issued and transferred from other funding options..... 470,334 916,018 488,726 604,963 174,607,084 Units redeemed and transferred to other funding options....... (661,911) (903,067) (580,951) (750,919) (5,332,678) ------------ ------------ ------------ ------------ ------------- Units end of year................. 2,132,933 2,324,510 2,129,155 2,221,380 169,274,406 ============ ============ ============ ============ =============
MIST LEGG MASON CLEARBRIDGE MIST LOOMIS SAYLES MIST LORD ABBETT AGGRESSIVE GROWTH GLOBAL MARKETS BOND DEBENTURE INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION --------------------------- --------------------------- --------------------------- 2012 2011 2012 2011 2012 2011 ------------- ------------- ------------- ------------- ------------- ------------ Units beginning of year........... 10,567,586 3,935,646 1,855,860 1,021,819 14,072,935 14,565,687 Units issued and transferred from other funding options..... 3,135,922 9,744,680 743,857 1,469,364 2,555,225 3,423,502 Units redeemed and transferred to other funding options....... (3,356,948) (3,112,740) (665,848) (635,323) (3,334,307) (3,916,254) ------------- ------------- ------------- ------------- ------------- ------------ Units end of year................. 10,346,560 10,567,586 1,933,869 1,855,860 13,293,853 14,072,935 ============= ============= ============= ============= ============= ============ MIST LORD ABBETT MIST MET/EATON VANCE MIST MET/FRANKLIN MID CAP VALUE FLOATING RATE INCOME INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION ------------------- --------------------------- --------------------------- 2012 (C) 2012 2011 2012 2011 ------------- ------------ ------------- ------------- ------------- Units beginning of year........... -- 581,745 127,652 7,386,050 5,033,319 Units issued and transferred from other funding options..... 20,382,431 300,624 646,952 2,698,163 4,744,184 Units redeemed and transferred to other funding options....... (2,780,163) (201,745) (192,859) (2,405,997) (2,391,453) ------------- ------------ ------------- ------------- ------------- Units end of year................. 17,602,268 680,624 581,745 7,678,216 7,386,050 ============= ============ ============= ============= =============
MIST MET/FRANKLIN MIST MET/FRANKLIN MIST MET/FRANKLIN TEMPLETON LOW DURATION TOTAL RETURN MUTUAL SHARES FOUNDING STRATEGY INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION --------------------------- --------------------------- --------------------------- 2012 2011 (b) 2012 2011 2012 2011 ------------- ------------- ------------- ------------- ------------- ------------ Units beginning of year........... 678,926 -- 5,791,350 4,333,640 6,295,740 6,203,619 Units issued and transferred from other funding options..... 1,682,490 872,602 1,126,555 2,722,869 890,335 1,570,872 Units redeemed and transferred to other funding options....... (857,820) (193,676) (1,319,613) (1,265,159) (1,069,246) (1,478,751) ------------- ------------- ------------- ------------- ------------- ------------ Units end of year................. 1,503,596 678,926 5,598,292 5,791,350 6,116,829 6,295,740 ============= ============= ============= ============= ============= ============ MIST MET/TEMPLETON MIST MET/TEMPLETON MIST METLIFE GROWTH INTERNATIONAL BOND AGGRESSIVE STRATEGY INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION --------------------------- --------------------------- --------------------------- 2012 2011 2012 2011 2012 2011 (b) ------------- ------------- ------------- ------------- ------------- ------------ Units beginning of year........... 2,619,413 1,927,337 586,262 363,350 9,693,030 -- Units issued and transferred from other funding options..... 891,401 1,392,110 190,431 410,962 1,937,566 11,291,503 Units redeemed and transferred to other funding options....... (903,902) (700,034) (133,645) (188,050) (1,860,800) (1,598,473) ------------- ------------- ------------- ------------- ------------- ------------ Units end of year................. 2,606,912 2,619,413 643,048 586,262 9,769,796 9,693,030 ============= ============= ============= ============= ============= ============
MIST METLIFE MULTI-INDEX MIST MFS EMERGING MIST METLIFE BALANCED PLUS TARGETED RISK MARKETS EQUITY INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION --------------------------- ------------------- -------------------------- 2012 2011 (b) 2012 (d) 2012 2011 ------------ ------------- ------------ ------------ ------------ Units beginning of year........... 64,032,367 -- -- 4,108,037 2,608,505 Units issued and transferred from other funding options..... 89,719,058 64,979,961 6,840,315 1,018,318 2,154,412 Units redeemed and transferred to other funding options....... (7,297,931) (947,594) (31,416) (889,619) (654,880) ------------ ------------- ------------ ------------ ------------ Units end of year................. 146,453,494 64,032,367 6,808,899 4,236,736 4,108,037 ============ ============= ============ ============ ============ MIST MFS RESEARCH MIST MORGAN STANLEY INTERNATIONAL MIST MLA MID CAP MID CAP GROWTH INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION -------------------------- -------------------------- --------------------------- 2012 2011 2012 2011 2012 2011 ------------ ------------ ------------ ------------ ------------ ------------- Units beginning of year........... 19,673,406 20,874,325 4,027,371 4,081,305 23,184,585 24,873,224 Units issued and transferred from other funding options..... 2,239,537 3,802,664 575,981 962,912 2,531,911 4,016,812 Units redeemed and transferred to other funding options....... (4,235,096) (5,003,583) (1,058,966) (1,016,846) (4,741,015) (5,705,451) ------------ ------------ ------------ ------------ ------------ ------------- Units end of year................. 17,677,847 19,673,406 3,544,386 4,027,371 20,975,481 23,184,585 ============ ============ ============ ============ ============ =============
(a) For the period July 23, 2012 to December 31, 2012. (b) For the period May 2, 2011 to December 31, 2011. (c) For the period April 30, 2012 to December 31, 2012. (d) For the period November 12, 2012 to December 31, 2012. 78 79 METROPOLITAN LIFE SEPARATE ACCOUNT E OF METROPOLITAN LIFE INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 7. SCHEDULES OF UNITS -- (CONTINUED) FOR THE YEARS ENDED DECEMBER 31, 2012 AND 2011:
MIST PIMCO INFLATION MIST PIONEER PROTECTED BOND MIST PIMCO TOTAL RETURN STRATEGIC INCOME INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION -------------------------- -------------------------- -------------------------- 2012 2011 2012 2011 2012 2011 ------------ ------------ ------------ ------------ ------------ ------------ Units beginning of year........... 39,768,473 33,648,714 69,538,746 67,513,724 2,135,286 1,345,150 Units issued and transferred from other funding options..... 12,798,628 17,584,975 14,884,385 22,014,158 884,420 1,370,699 Units redeemed and transferred to other funding options....... (10,187,550) (11,465,216) (14,566,447) (19,989,136) (565,032) (580,563) ------------ ------------ ------------ ------------ ------------ ------------ Units end of year................. 42,379,551 39,768,473 69,856,684 69,538,746 2,454,674 2,135,286 ============ ============ ============ ============ ============ ============ MIST PYRAMIS MIST SCHRODERS GOVERNMENT INCOME MIST RCM TECHNOLOGY GLOBAL MULTI-ASSET INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION --------------------------- --------------------------- ------------------- 2012 2011 (b) 2012 2011 2012 (c) ------------- ------------- ------------- ------------- ------------ Units beginning of year........... 18,617,176 -- 21,582,783 21,798,046 -- Units issued and transferred from other funding options..... 42,564,339 19,525,713 5,128,162 9,310,510 125,006,866 Units redeemed and transferred to other funding options....... (6,371,812) (908,537) (7,185,657) (9,525,773) (3,384,417) ------------- ------------- ------------- ------------- ------------ Units end of year................. 54,809,703 18,617,176 19,525,288 21,582,783 121,622,449 ============= ============= ============= ============= ============
MIST SSGA GROWTH AND MIST T. ROWE PRICE INCOME ETF MIST SSGA GROWTH ETF MID CAP GROWTH INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION -------------------------- --------------------------- --------------------------- 2012 2011 2012 2011 2012 2011 ------------ ------------ ------------ ------------- ------------ ------------- Units beginning of year........... 69,044,794 49,243,201 8,738,265 7,423,121 28,074,170 26,424,580 Units issued and transferred from other funding options..... 9,650,667 27,020,206 3,233,040 4,159,250 5,030,132 9,489,958 Units redeemed and transferred to other funding options....... (8,489,812) (7,218,613) (2,649,622) (2,844,106) (6,333,801) (7,840,368) ------------ ------------ ------------ ------------- ------------ ------------- Units end of year................. 70,205,649 69,044,794 9,321,683 8,738,265 26,770,501 28,074,170 ============ ============ ============ ============= ============ ============= MIST THIRD AVENUE MSF BAILLIE GIFFORD MSF BARCLAYS CAPITAL SMALL CAP VALUE INTERNATIONAL STOCK AGGREGATE BOND INDEX INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION -------------------------- -------------------------- --------------------------- 2012 2011 2012 2011 2012 2011 ------------ ------------ ------------ ------------ ------------- ------------ Units beginning of year........... 611,373 553,242 14,325,010 15,081,511 67,360,242 67,541,233 Units issued and transferred from other funding options..... 138,841 139,572 1,353,198 2,223,813 14,038,032 17,480,170 Units redeemed and transferred to other funding options....... (99,475) (81,441) (2,933,480) (2,980,314) (13,722,960) (17,661,161) ------------ ------------ ------------ ------------ ------------- ------------ Units end of year................. 650,739 611,373 12,744,728 14,325,010 67,675,314 67,360,242 ============ ============ ============ ============ ============= ============
MSF BLACKROCK MSF BLACKROCK MSF BLACKROCK AGGRESSIVE GROWTH BOND INCOME DIVERSIFIED INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION --------------------------- --------------------------- --------------------------- 2012 2011 2012 2011 2012 2011 ------------- ------------ ------------- ------------ ------------ ------------- Units beginning of year........... 12,356,496 13,591,177 13,863,749 14,977,082 18,361,628 20,865,957 Units issued and transferred from other funding options..... 838,461 1,304,655 1,718,390 2,235,579 784,232 845,517 Units redeemed and transferred to other funding options....... (2,006,067) (2,539,336) (2,665,723) (3,348,912) (2,668,427) (3,349,846) ------------- ------------ ------------- ------------ ------------ ------------- Units end of year................. 11,188,890 12,356,496 12,916,416 13,863,749 16,477,433 18,361,628 ============= ============ ============= ============ ============ ============= MSF BLACKROCK MSF BLACKROCK LEGACY MSF BLACKROCK LARGE CAP VALUE LARGE CAP GROWTH MONEY MARKET INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION --------------------------- --------------------------- --------------------------- 2012 2011 2012 2011 2012 2011 ------------ ------------- ------------- ------------- ------------- ------------ Units beginning of year........... 18,527,061 17,848,335 10,497,393 10,566,230 7,581,515 7,489,620 Units issued and transferred from other funding options..... 3,128,157 5,752,391 1,159,171 2,872,411 3,155,623 5,471,086 Units redeemed and transferred to other funding options....... (4,131,615) (5,073,665) (2,143,017) (2,941,248) (4,155,109) (5,379,191) ------------ ------------- ------------- ------------- ------------- ------------ Units end of year................. 17,523,603 18,527,061 9,513,547 10,497,393 6,582,029 7,581,515 ============ ============= ============= ============= ============= ============
MSF DAVIS VENTURE VALUE MSF FI VALUE LEADERS MSF JENNISON GROWTH INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION --------------------------- --------------------------- --------------------------- 2012 2011 2012 2011 2012 2011 ------------- ------------ ------------ ------------- ------------- ------------- Units beginning of year........... 23,022,534 24,503,478 4,767,521 5,386,863 15,846,735 12,651,183 Units issued and transferred from other funding options..... 1,831,314 3,657,253 320,195 519,911 15,949,377 8,635,917 Units redeemed and transferred to other funding options....... (4,070,617) (5,138,197) (892,353) (1,139,253) (7,622,847) (5,440,365) ------------- ------------ ------------ ------------- ------------- ------------- Units end of year................. 20,783,231 23,022,534 4,195,363 4,767,521 24,173,265 15,846,735 ============= ============ ============ ============= ============= ============= MSF LOOMIS SAYLES MSF LOOMIS SAYLES MSF MET/ARTISAN SMALL CAP CORE SMALL CAP GROWTH MID CAP VALUE INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION --------------------------- --------------------------- --------------------------- 2012 2011 2012 2011 2012 2011 ------------- ------------- ------------- ------------ ------------ ------------- Units beginning of year........... 7,753,152 8,483,306 4,424,648 4,256,184 9,138,238 10,171,808 Units issued and transferred from other funding options..... 630,485 1,299,042 561,427 1,809,520 966,064 1,286,453 Units redeemed and transferred to other funding options....... (1,630,151) (2,029,196) (1,333,869) (1,641,056) (2,021,989) (2,320,023) ------------- ------------- ------------- ------------ ------------ ------------- Units end of year................. 6,753,486 7,753,152 3,652,206 4,424,648 8,082,313 9,138,238 ============= ============= ============= ============ ============ =============
(a) For the period July 23, 2012 to December 31, 2012. (b) For the period May 2, 2011 to December 31, 2011. (c) For the period April 30, 2012 to December 31, 2012. (d) For the period November 12, 2012 to December 31, 2012. 80 81 METROPOLITAN LIFE SEPARATE ACCOUNT E OF METROPOLITAN LIFE INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 7. SCHEDULES OF UNITS -- (CONCLUDED) FOR THE YEARS ENDED DECEMBER 31, 2012 AND 2011:
MSF MET/DIMENSIONAL MSF METLIFE MSF METLIFE CONSERVATIVE INTERNATIONAL SMALL COMPANY CONSERVATIVE ALLOCATION TO MODERATE ALLOCATION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION --------------------------- --------------------------- --------------------------- 2012 2011 2012 2011 2012 2011 ------------ ------------ ------------- ------------ ------------- ------------- Units beginning of year........... 284,129 194,434 40,920,905 34,931,385 105,687,728 92,893,969 Units issued and transferred from other funding options..... 76,259 173,804 10,391,240 15,179,052 15,333,313 29,413,098 Units redeemed and transferred to other funding options....... (76,859) (84,109) (7,870,981) (9,189,532) (15,896,985) (16,619,339) ------------ ------------ ------------- ------------ ------------- ------------- Units end of year................. 283,529 284,129 43,441,164 40,920,905 105,124,056 105,687,728 ============ ============ ============= ============ ============= ============= MSF METLIFE MSF METLIFE MSF METLIFE MODERATE MID CAP STOCK INDEX MODERATE ALLOCATION TO AGGRESSIVE ALLOCATION INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION -------------------------- --------------------------- --------------------------- 2012 2011 2012 2011 2012 2011 ------------ ------------ ------------- ------------- ------------- ------------- Units beginning of year........... 23,078,700 23,301,277 307,124,843 270,336,724 136,308,678 138,767,656 Units issued and transferred from other funding options..... 3,950,201 6,331,509 27,022,083 75,515,483 11,376,066 15,206,687 Units redeemed and transferred to other funding options....... (5,135,519) (6,554,086) (35,328,087) (38,727,364) (18,288,367) (17,665,665) ------------ ------------ ------------- ------------- ------------- ------------- Units end of year................. 21,893,382 23,078,700 298,818,839 307,124,843 129,396,377 136,308,678 ============ ============ ============= ============= ============= =============
MSF METLIFE STOCK INDEX MSF MFS TOTAL RETURN MSF MFS VALUE INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION --------------------------- --------------------------- --------------------------- 2012 2011 2012 2011 2012 2011 ------------ ------------- ------------ ------------- ------------ ------------- Units beginning of year........... 64,969,064 69,017,391 6,944,475 7,658,769 22,395,513 23,312,590 Units issued and transferred from other funding options..... 6,623,452 9,598,802 547,775 634,545 3,611,574 4,671,544 Units redeemed and transferred to other funding options....... (12,419,465) (13,647,129) (1,513,754) (1,348,839) (4,975,142) (5,588,621) ------------ ------------- ------------ ------------- ------------ ------------- Units end of year................. 59,173,051 64,969,064 5,978,496 6,944,475 21,031,945 22,395,513 ============ ============= ============ ============= ============ ============= MSF NEUBERGER MSF OPPENHEIMER MSF MSCI EAFE INDEX BERMAN GENESIS GLOBAL EQUITY INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION -------------------------- -------------------------- -------------------------- 2012 2011 2012 2011 2012 2011 ------------ ------------ ------------ ------------ ------------ ------------ Units beginning of year........... 38,516,192 36,009,259 16,685,101 18,897,311 11,458,967 11,471,149 Units issued and transferred from other funding options..... 6,587,704 9,430,480 1,474,144 1,954,420 1,481,210 2,552,540 Units redeemed and transferred to other funding options....... (8,385,196) (6,923,547) (3,437,634) (4,166,630) (2,535,408) (2,564,722) ------------ ------------ ------------ ------------ ------------ ------------ Units end of year................. 36,718,700 38,516,192 14,721,611 16,685,101 10,404,769 11,458,967 ============ ============ ============ ============ ============ ============
MSF T. ROWE PRICE MSF T. ROWE PRICE MSF RUSSELL 2000 INDEX LARGE CAP GROWTH SMALL CAP GROWTH INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION --------------------------- --------------------------- --------------------------- 2012 2011 2012 2011 2012 2011 ------------ ------------- ------------ ------------- ------------- ------------- Units beginning of year........... 14,971,453 15,715,274 12,337,838 13,494,657 14,031,031 14,000,629 Units issued and transferred from other funding options..... 3,097,031 3,866,036 2,965,900 2,183,137 2,267,606 4,272,993 Units redeemed and transferred to other funding options....... (4,048,298) (4,609,857) (3,516,345) (3,339,956) (3,144,024) (4,242,591) ------------ ------------- ------------ ------------- ------------- ------------- Units end of year................. 14,020,186 14,971,453 11,787,393 12,337,838 13,154,613 14,031,031 ============ ============= ============ ============= ============= ============= MSF WESTERN ASSET MSF WESTERN MSF VAN ECK GLOBAL MANAGEMENT STRATEGIC ASSET MANAGEMENT NATURAL RESOURCES BOND OPPORTUNITIES U.S. GOVERNMENT INVESTMENT DIVISION INVESTMENT DIVISION INVESTMENT DIVISION -------------------------- -------------------------- -------------------------- 2012 2011 2012 2011 2012 2011 ------------ ------------ ------------ ------------ ------------ ------------ Units beginning of year........... 2,291,756 1,309,383 11,333,345 13,288,962 14,053,184 15,023,442 Units issued and transferred from other funding options..... 905,275 1,504,512 1,681,775 1,681,261 2,410,173 3,579,419 Units redeemed and transferred to other funding options....... (585,357) (522,139) (2,669,330) (3,636,878) (3,314,841) (4,549,677) ------------ ------------ ------------ ------------ ------------ ------------ Units end of year................. 2,611,674 2,291,756 10,345,790 11,333,345 13,148,516 14,053,184 ============ ============ ============ ============ ============ ============
MSF ZENITH EQUITY INVESTMENT DIVISION --------------------------- 2012 2011 ------------- ------------- Units beginning of year............ 3,127,103 3,651,183 Units issued and transferred from other funding options...... 144,946 133,676 Units redeemed and transferred to other funding options........ (614,929) (657,756) ------------- ------------- Units end of year.................. 2,657,120 3,127,103 ============= =============
(a) For the period July 23, 2012 to December 31, 2012. (b) For the period May 2, 2011 to December 31, 2011. (c) For the period April 30, 2012 to December 31, 2012. (d) For the period November 12, 2012 to December 31, 2012. 82 83 METROPOLITAN LIFE SEPARATE ACCOUNT E OF METROPOLITAN LIFE INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 8. FINANCIAL HIGHLIGHTS The Company sells a number of variable annuity products which have unique combinations of features and fees, some of which directly affect the unit values of the Investment Divisions. Differences in the fee structures result in a variety of unit values, expense ratios, and total returns. The following table is a summary of unit values and units outstanding for the Contracts, net investment income ratios, and expense ratios, excluding expenses for the underlying fund, series, or portfolio, for the respective stated periods in the five years ended December 31, 2012:
AS OF DECEMBER 31 -------------------------------------------------- UNIT VALUE LOWEST TO NET UNITS HIGHEST ($) ASSETS ($) ------------- ---------------- --------------- American Funds Bond 2012 7,263,481 15.00 - 20.21 128,509,424 Investment Division 2011 7,776,072 14.60 - 19.30 132,354,078 2010 8,896,331 14.11 - 18.31 144,729,120 2009 9,420,222 13.60 - 17.31 146,076,081 2008 9,086,361 12.39 - 15.47 126,975,777 American Funds Global Small 2012 18,635,787 2.81 - 31.78 512,261,353 Capitalization Investment 2011 20,869,442 2.41 - 27.10 488,925,353 Division 2010 21,870,431 3.03 - 33.77 638,167,766 2009 22,146,914 2.52 - 27.79 528,416,498 2008 21,297,918 1.59 - 17.36 315,284,802 American Funds Growth 2012 6,029,312 15.10 - 207.87 978,263,065 Investment Division 2011 6,775,576 12.97 - 177.66 943,068,284 2010 7,571,854 13.72 - 186.99 1,104,322,652 2009 8,261,553 11.70 - 158.74 1,020,275,073 2008 8,477,946 8.50 - 114.72 752,066,110 American Funds 2012 6,519,347 11.07 - 141.56 728,354,448 Growth-Income Investment 2011 7,279,154 9.58 - 121.41 689,767,422 Division 2010 7,599,619 9.91 - 124.60 738,591,508 2009 7,531,106 9.04 - 112.66 664,724,752 2008 7,608,552 7.00 - 86.49 510,830,623 Calvert VP SRI Balanced 2012 1,676,537 24.33 - 32.31 51,646,891 Investment Division 2011 1,762,417 22.36 - 29.60 49,903,373 2010 1,850,748 21.72 - 28.66 50,866,287 2009 1,901,894 19.68 - 25.89 47,408,049 2008 1,958,099 15.95 - 20.92 39,625,750 Calvert VP SRI Mid Cap 2012 319,337 38.64 - 38.65 12,341,511 Growth Investment Division 2011 338,107 33.41 - 33.42 11,298,697 2010 371,121 32.96 - 32.97 12,234,406 2009 370,911 25.31 9,388,607 2008 377,930 19.35 7,315,009 Fidelity VIP Equity-Income 2012 3,911,529 6.34 - 51.32 81,994,570 Investment Division 2011 4,479,503 5.48 - 44.17 78,185,094 2010 5,189,262 5.50 - 44.15 91,649,413 2009 6,023,263 4.84 - 38.71 88,951,615 2008 7,160,081 3.77 - 30.01 77,071,469 Fidelity VIP FundsManager 2012 2,486,441 11.31 - 11.42 28,315,173 50% Investment Division (Commenced 7/23/2012) FOR THE YEAR ENDED DECEMBER 31 ------------------------------------------------------ INVESTMENT(1) EXPENSE RATIO(2) TOTAL RETURN(3) INCOME LOWEST TO LOWEST TO RATIO (%) HIGHEST (%) HIGHEST (%) -------------- ----------------- ------------------ American Funds Bond 2012 2.43 0.50 - 2.55 2.71 - 4.69 Investment Division 2011 2.88 0.50 - 2.55 3.44 - 5.42 2010 2.96 0.50 - 2.55 3.76 - 5.75 2009 3.27 0.50 - 2.55 9.76 - 11.88 2008 5.10 0.50 - 2.30 (11.63) - (9.95) American Funds Global Small 2012 1.34 0.50 - 2.55 15.19 - 17.41 Capitalization Investment 2011 1.34 0.50 - 2.55 (21.18) - (19.67) Division 2010 1.73 0.50 - 2.55 19.33 - 21.62 2009 0.29 0.50 - 2.55 57.24 - 60.26 2008 -- 0.50 - 2.30 (54.18) - (53.87) American Funds Growth 2012 0.78 0.50 - 2.55 14.91 - 17.13 Investment Division 2011 0.60 0.50 - 2.55 (6.68) - (4.89) 2010 0.71 0.50 - 2.55 15.70 - 17.91 2009 0.67 0.50 - 2.55 35.90 - 38.52 2008 0.81 0.50 - 2.30 (44.66) - (44.39) American Funds 2012 1.59 0.50 - 2.55 14.51 - 16.72 Growth-Income Investment 2011 1.54 0.50 - 2.55 (4.30) - (2.47) Division 2010 1.51 0.50 - 2.55 8.62 - 10.71 2009 1.65 0.50 - 2.55 27.94 - 30.40 2008 1.67 0.50 - 2.30 (38.81) - (38.31) Calvert VP SRI Balanced 2012 1.21 0.50 - 1.55 8.80 - 9.96 Investment Division 2011 1.29 0.50 - 1.55 2.96 - 4.04 2010 1.43 0.50 - 1.55 10.37 - 11.54 2009 2.21 0.50 - 1.55 23.36 - 24.67 2008 2.49 0.50 - 1.55 (32.39) - (32.17) Calvert VP SRI Mid Cap 2012 -- 0.95 15.65 Growth Investment Division 2011 -- 0.95 1.37 2010 -- 0.95 30.24 2009 -- 0.95 30.77 - 30.78 2008 -- 0.95 - 1.35 (37.80) Fidelity VIP Equity-Income 2012 3.08 0.95 - 1.35 15.73 - 16.20 Investment Division 2011 2.34 0.95 - 1.35 (0.38) - 0.03 2010 1.80 0.95 - 1.35 13.62 - 14.07 2009 2.29 0.95 - 1.35 28.45 - 28.99 2008 2.30 0.95 - 1.35 (43.39) - (43.20) Fidelity VIP FundsManager 2012 2.68 1.90 - 2.05 4.04 - 4.11 50% Investment Division (Commenced 7/23/2012)
84 METROPOLITAN LIFE SEPARATE ACCOUNT E OF METROPOLITAN LIFE INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 8. FINANCIAL HIGHLIGHTS -- (CONTINUED)
AS OF DECEMBER 31 -------------------------------------------------- UNIT VALUE LOWEST TO NET UNITS HIGHEST ($) ASSETS ($) ------------- ----------------- --------------- Fidelity VIP FundsManager 2012 24,954,232 10.37 - 10.45 260,007,961 60% Investment Division 2011 20,820,080 9.48 - 9.54 198,202,397 (Commenced 10/15/2009) 2010 10,055,976 9.88 - 9.93 99,633,507 2009 28,017 8.87 - 8.90 248,942 Fidelity VIP Growth 2012 1,633,959 47.61 - 47.62 77,803,882 Investment Division 2011 1,783,529 41.91 74,754,203 2010 2,111,729 42.22 - 42.23 89,166,883 2009 2,292,307 34.32 - 34.33 78,687,001 2008 2,438,573 27.01 65,868,936 Fidelity VIP Investment 2012 686,159 32.46 - 32.47 22,278,308 Grade Bond 2011 691,358 30.95 21,398,778 Investment Division 2010 761,081 29.11 22,154,719 2009 794,594 27.26 21,659,031 2008 730,222 23.78 17,363,022 Fidelity VIP Money Market 2012 548,892 10.71 - 16.72 8,724,752 Investment Division 2011 786,743 10.92 - 16.86 12,168,038 2010 766,151 11.14 - 17.00 12,251,820 2009 942,138 11.34 - 17.12 15,639,330 2008 864,063 17.15 14,823,280 MIST AllianceBernstein 2012 110,036,076 10.41 - 10.61 1,165,993,492 Global Dynamic Allocation 2011 49,226,036 9.70 - 9.75 479,791,726 Investment Division (Commenced 5/2/2011) MIST American Funds 2012 63,563,060 10.24 - 11.22 683,639,223 Balanced Allocation 2011 64,521,397 9.23 - 9.92 618,948,646 Investment Division 2010 54,397,965 9.65 - 10.17 539,848,602 (Commenced 4/28/2008) 2009 30,034,186 8.81 - 9.11 269,080,901 2008 9,087,721 6.97 - 7.06 63,741,086 MIST American Funds Bond 2012 7,951,315 10.74 - 11.31 89,292,265 Investment Division 2011 7,359,866 10.47 - 10.90 79,806,796 (Commenced 11/7/2008 2010 5,961,314 10.12 - 10.43 61,894,293 and began transactions in 2009) 2009 1,987,475 9.79 - 9.94 19,704,304 MIST American Funds Growth 2012 32,742,900 9.70 - 10.56 333,268,561 Allocation Investment 2011 34,204,304 8.55 - 9.14 303,484,652 Division 2010 35,239,687 9.18 - 9.64 332,353,082 (Commenced 4/28/2008) 2009 32,850,723 8.28 - 8.54 276,545,341 2008 15,561,108 6.32 - 6.40 99,006,699 MIST American Funds Growth 2012 30,680,594 9.63 - 10.14 309,469,419 Investment Division 2011 30,941,763 8.39 - 8.74 269,245,330 (Commenced 11/7/2008 2010 21,779,384 9.00 - 9.27 201,192,477 and began transactions in 2009) 2009 8,205,983 7.78 - 7.92 64,876,014 MIST American Funds 2012 82,535,523 10.49 - 11.42 908,733,316 Moderate Allocation 2011 85,202,020 9.69 - 10.36 857,229,344 Investment Division 2010 75,010,392 9.89 - 10.39 762,782,012 (Commenced 4/28/2008) 2009 46,032,309 9.21 - 9.50 431,332,093 2008 15,201,857 7.64 - 7.74 116,911,851 FOR THE YEAR ENDED DECEMBER 31 ----------------------------------------------------- INVESTMENT(1) EXPENSE RATIO(2) TOTAL RETURN(3) INCOME LOWEST TO LOWEST TO RATIO (%) HIGHEST (%) HIGHEST (%) ------------- ---------------- ----------------- Fidelity VIP FundsManager 2012 1.50 1.90 - 2.05 9.33 - 9.49 60% Investment Division 2011 1.89 1.90 - 2.05 (4.01) - (3.87) (Commenced 10/15/2009) 2010 2.44 1.90 - 2.05 11.32 - 11.49 2009 1.19 1.90 - 2.05 0.07 - 0.09 Fidelity VIP Growth 2012 0.58 0.95 13.60 - 13.61 Investment Division 2011 0.34 0.95 (0.74) 2010 0.28 0.95 23.00 - 23.01 2009 0.45 0.95 27.08 - 27.09 2008 0.78 0.95 - 1.35 (47.67) Fidelity VIP Investment 2012 2.35 0.95 4.90 Grade Bond 2011 3.16 0.95 6.32 - 6.33 Investment Division 2010 3.50 0.95 6.79 2009 8.79 0.95 14.63 - 14.64 2008 4.32 0.95 - 1.35 (4.15) Fidelity VIP Money Market 2012 0.13 0.95 - 2.05 (1.93) - (0.81) Investment Division 2011 0.10 0.95 - 2.05 (1.94) - (0.83) 2010 0.17 0.95 - 2.05 (1.82) - (0.70) 2009 0.72 0.95 - 2.05 (0.39) - (0.22) 2008 3.01 0.95 - 1.35 2.08 MIST AllianceBernstein 2012 0.09 1.15 - 2.30 2.79 - 8.82 Global Dynamic Allocation 2011 0.98 1.15 - 2.00 (3.01) - (2.47) Investment Division (Commenced 5/2/2011) MIST American Funds 2012 1.68 0.50 - 2.30 10.93 - 13.06 Balanced Allocation 2011 1.26 0.50 - 2.30 (4.34) - (2.43) Investment Division 2010 1.00 0.50 - 2.30 9.61 - 11.67 (Commenced 4/28/2008) 2009 -- 0.50 - 2.30 26.39 - 29.21 2008 6.96 0.50 - 2.30 (30.30) - (29.40) MIST American Funds Bond 2012 2.55 1.15 - 2.25 2.57 - 3.71 Investment Division 2011 2.15 1.15 - 2.25 3.44 - 4.58 (Commenced 11/7/2008 2010 1.53 1.15 - 2.25 3.74 - 4.89 and began transactions in 2009) 2009 -- 1.15 - 2.05 9.85 - 10.84 MIST American Funds Growth 2012 1.20 0.50 - 2.30 13.50 - 15.58 Allocation Investment 2011 1.12 0.50 - 2.30 (6.89) - (5.21) Division 2010 0.88 0.50 - 2.30 10.91 - 12.92 (Commenced 4/28/2008) 2009 -- 0.50 - 2.30 31.00 - 33.36 2008 7.24 0.50 - 2.30 (36.80) - (36.00) MIST American Funds Growth 2012 0.32 1.15 - 2.25 14.79 - 16.06 Investment Division 2011 0.34 1.15 - 2.25 (6.71) - (5.69) (Commenced 11/7/2008 2010 0.18 1.15 - 2.25 15.69 - 16.97 and began transactions in 2009) 2009 -- 1.15 - 2.25 35.80 - 37.30 MIST American Funds 2012 2.04 0.50 - 2.30 8.31 - 10.28 Moderate Allocation 2011 1.54 0.50 - 2.30 (2.08) - (0.31) Investment Division 2010 1.41 0.50 - 2.30 7.40 - 9.36 (Commenced 4/28/2008) 2009 -- 0.50 - 2.30 20.59 - 22.79 2008 6.90 0.50 - 2.30 (23.60) - (22.60)
85 METROPOLITAN LIFE SEPARATE ACCOUNT E OF METROPOLITAN LIFE INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 8. FINANCIAL HIGHLIGHTS -- (CONTINUED)
AS OF DECEMBER 31 -------------------------------------------------- UNIT VALUE LOWEST TO NET UNITS HIGHEST ($) ASSETS ($) ------------- ----------------- --------------- MIST AQR Global Risk 2012 149,868,893 11.38 - 11.61 1,737,315,768 Balanced Investment Division 2011 56,432,487 10.56 - 10.62 599,167,858 (Commenced 5/2/2011) MIST BlackRock Global 2012 155,272,874 10.17 - 10.34 1,603,180,946 Tactical Strategies 2011 74,095,325 9.53 - 9.58 709,763,094 Investment Division (Commenced 5/2/2011) MIST BlackRock Large Cap 2012 18,667,832 7.12 - 91.54 616,700,346 Core Investment Division 2011 20,393,863 6.37 - 81.12 607,789,646 2010 20,665,064 6.44 - 81.32 657,439,675 2009 21,088,063 5.80 - 72.68 639,219,543 2008 22,354,205 4.93 - 61.28 589,682,261 Variable B Investment 2012 79,487 46.73 - 164.31 12,413,480 Division 2011 86,527 39.85 - 145.99 12,494,159 2010 103,828 39.93 - 146.66 14,265,716 2009 122,189 35.69 - 131.40 15,078,294 2008 142,021 30.10 - 111.12 14,787,926 Variable C Investment 2012 6,144 164.31 - 213.98 1,223,254 Division 2011 6,155 145.99 - 188.23 1,080,417 2010 6,244 146.66 - 187.23 1,092,411 2009 6,758 131.40 - 166.08 1,044,718 2008 9,309 111.12 - 139.06 1,191,340 MIST Clarion Global Real 2012 14,778,284 2.89 - 17.84 245,411,646 Estate Investment Division 2011 16,016,738 2.31 - 14.23 213,895,843 2010 15,981,514 2.46 - 15.15 228,566,225 2009 16,166,181 2.14 - 13.11 201,669,413 2008 16,424,718 1.60 - 9.78 154,233,055 MIST Dreman Small Cap Value 2012 1,099,067 14.06 - 15.07 16,406,071 Investment Division 2011 1,077,146 12.44 - 13.21 14,113,642 (Commenced 11/7/2008 2010 657,621 14.17 - 14.91 9,722,885 and began transactions in 2009) 2009 238,413 12.13 - 12.65 2,992,834 MIST Harris Oakmark 2012 22,574,267 2.19 - 23.79 476,492,534 International Investment 2011 24,605,233 1.71 - 18.49 402,888,469 Division 2010 22,318,089 2.02 - 21.68 422,198,591 2009 18,765,510 1.76 - 18.71 304,862,337 2008 16,641,709 1.15 - 12.13 169,380,762 MIST Invesco Balanced-Risk 2012 250,325,881 1.04 - 1.05 262,571,091 Allocation Investment Division (Commenced 4/30/2012) MIST Invesco Small Cap 2012 2,132,933 1.82 - 20.01 38,202,816 Growth Investment Division 2011 2,324,510 1.56 - 17.01 35,466,935 2010 2,311,559 1.60 - 17.28 34,771,690 2009 2,575,281 1.28 - 13.77 30,768,907 2008 2,229,587 0.97 - 10.34 19,921,697 FOR THE YEAR ENDED DECEMBER 31 ----------------------------------------------------- INVESTMENT(1) EXPENSE RATIO(2) TOTAL RETURN(3) INCOME LOWEST TO LOWEST TO RATIO (%) HIGHEST (%) HIGHEST (%) ------------- ---------------- ----------------- MIST AQR Global Risk 2012 0.40 1.15 - 2.30 3.03 - 9.29 Balanced Investment Division 2011 3.41 1.15 - 2.00 2.12 - 2.70 (Commenced 5/2/2011) MIST BlackRock Global 2012 -- 1.15 - 2.15 6.81 - 7.89 Tactical Strategies 2011 1.51 1.15 - 2.00 (4.68) - (4.14) Investment Division (Commenced 5/2/2011) MIST BlackRock Large Cap 2012 1.18 0.42 - 2.22 (0.33) - 12.84 Core Investment Division 2011 1.10 (0.08) - 2.30 (2.02) - 0.54 2010 1.33 (0.08) - 2.30 9.90 - 12.73 2009 1.76 0.50 - 2.30 16.49 - 18.60 2008 0.68 0.50 - 2.30 (38.14) - (36.07) Variable B Investment 2012 1.22 (0.08) - 0.92 12.55 - 17.29 Division 2011 1.12 (0.08) - 1.00 (0.46) - (0.21) 2010 1.36 (0.08) - 1.00 11.62 - 11.89 2009 1.65 1.00 18.25 - 18.55 2008 0.71 1.00 (37.74) - (37.59) Variable C Investment 2012 1.19 (0.08) - 0.92 12.55 - 13.68 Division 2011 1.10 (0.08) - 1.00 (0.46) - 0.54 2010 1.37 (0.08) - 1.00 11.62 - 12.73 2009 1.62 1.00 18.25 - 19.43 2008 0.73 1.00 (37.74) - (37.12) MIST Clarion Global Real 2012 2.07 0.50 - 2.30 23.11 - 25.48 Estate Investment Division 2011 3.87 0.50 - 2.30 (7.73) - (5.89) 2010 8.23 0.50 - 2.30 13.47 - 15.53 2009 3.29 0.50 - 2.30 31.67 - 34.24 2008 1.70 0.50 - 2.30 (42.03) - (41.96) MIST Dreman Small Cap Value 2012 0.63 1.15 - 2.05 13.01 - 14.03 Investment Division 2011 1.42 1.15 - 2.05 (12.18) - (11.38) (Commenced 11/7/2008 2010 0.58 1.15 - 2.05 16.83 - 17.89 and began transactions in 2009) 2009 0.18 1.15 - 2.05 26.17 - 27.30 MIST Harris Oakmark 2012 1.61 0.50 - 2.30 26.30 - 28.63 International Investment 2011 -- 0.50 - 2.30 (16.20) - (14.54) Division 2010 1.89 0.50 - 2.30 13.77 - 15.92 2009 7.37 0.50 - 2.30 51.54 - 54.46 2008 1.70 0.50 - 2.30 (41.62) - (41.17) MIST Invesco Balanced-Risk 2012 0.62 1.15 - 2.30 3.06 - 3.86 Allocation Investment Division (Commenced 4/30/2012) MIST Invesco Small Cap 2012 -- 0.50 - 2.30 15.53 - 17.64 Growth Investment Division 2011 -- 0.50 - 2.30 (3.33) - (1.57) 2010 -- 0.50 - 2.30 23.32 - 25.55 2009 -- 0.50 - 2.30 30.78 - 33.15 2008 -- 0.50 - 2.30 (39.75) - (39.03)
86 METROPOLITAN LIFE SEPARATE ACCOUNT E OF METROPOLITAN LIFE INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 8. FINANCIAL HIGHLIGHTS -- (CONTINUED)
AS OF DECEMBER 31 -------------------------------------------------- UNIT VALUE LOWEST TO NET UNITS HIGHEST ($) ASSETS ($) ------------- ----------------- --------------- MIST Janus Forty Investment 2012 2,129,155 129.79 - 331.03 379,819,842 Division 2011 2,221,380 108.42 - 271.25 326,899,919 2010 2,367,336 119.99 - 294.59 380,880,175 2009 2,084,776 112.23 - 270.33 309,364,810 2008 1,337,831 80.39 - 175.43 140,033,926 MIST JPMorgan Global Active 2012 169,274,406 1.05 177,914,120 Allocation Investment Division (Commenced 4/30/2012) MIST Legg Mason ClearBridge 2012 10,346,560 0.92 - 14.58 93,505,262 Aggressive Growth Investment 2011 10,567,586 0.78 - 12.38 81,432,355 Division 2010 3,935,646 0.77 - 12.07 29,795,656 2009 3,431,934 0.63 - 9.83 21,068,292 2008 3,430,823 0.48 - 7.43 15,633,985 MIST Loomis Sayles Global 2012 1,933,869 13.80 - 14.86 28,499,925 Markets Investment Division 2011 1,855,860 12.07 - 12.85 23,690,465 (Commenced 11/7/2008 2010 1,021,819 12.54 - 13.20 13,393,060 and began transactions in 2009) 2009 277,759 10.60 - 10.94 3,025,890 MIST Lord Abbett Bond 2012 13,293,853 2.66 - 30.92 320,579,772 Debenture Investment Division 2011 14,072,935 2.39 - 27.52 299,293,863 2010 14,565,687 2.32 - 26.47 294,861,986 2009 14,237,429 2.08 - 23.55 257,209,965 2008 13,513,284 1.54 - 17.31 175,523,561 MIST Lord Abbett Mid Cap Value 2012 17,602,268 2.62 - 29.57 454,279,856 Investment Division (Commenced 4/30/2012) MIST Met/Eaton Vance 2012 680,624 10.70 - 10.96 7,437,899 Floating Rate Investment 2011 581,745 10.17 - 10.33 5,996,924 Division (Commenced 5/3/2010) 2010 127,652 10.18 - 10.24 1,306,114 MIST Met/Franklin Income 2012 7,678,216 1.25 - 12.94 95,665,389 Investment Division 2011 7,386,050 1.12 - 11.56 82,869,275 (Commenced 4/28/2008) 2010 5,033,319 10.84 - 11.37 56,016,534 2009 2,693,910 9.92 - 10.22 27,160,816 2008 1,062,043 7.94 - 8.01 8,486,992 MIST Met/Franklin Low 2012 1,503,596 9.94 - 10.21 15,151,477 Duration Total Return 2011 678,926 9.72 - 9.80 6,635,667 Investment Division (Commenced 5/2/2011) MIST Met/Franklin Mutual 2012 5,598,292 9.40 - 10.23 55,255,614 Shares Investment Division 2011 5,791,350 8.44 - 9.02 50,810,483 (Commenced 4/28/2008) 2010 4,333,640 8.69 - 9.12 38,703,192 2009 2,188,969 8.01 - 8.25 17,828,821 2008 696,867 6.57 - 6.64 4,602,420 FOR THE YEAR ENDED DECEMBER 31 ----------------------------------------------------- INVESTMENT(1) EXPENSE RATIO(2) TOTAL RETURN(3) INCOME LOWEST TO LOWEST TO RATIO (%) HIGHEST (%) HIGHEST (%) ------------- ---------------- ----------------- MIST Janus Forty Investment 2012 0.24 0.50 - 2.30 19.72 - 22.04 Division 2011 1.69 0.50 - 2.30 (9.64) - (7.92) 2010 1.59 0.50 - 2.30 6.91 - 8.97 2009 -- 0.50 - 2.30 39.61 - 42.29 2008 4.92 0.50 - 2.30 (43.31) - (42.40) MIST JPMorgan Global Active 2012 0.78 1.15 - 2.05 3.23 - 3.85 Allocation Investment Division (Commenced 4/30/2012) MIST Legg Mason ClearBridge 2012 0.07 0.95 - 2.30 15.80 - 17.69 Aggressive Growth Investment 2011 0.02 0.95 - 2.30 (9.19) - 2.58 Division 2010 0.03 0.95 - 2.30 20.97 - 22.89 2009 0.06 0.95 - 2.30 29.92 - 32.20 2008 0.01 0.95 - 2.30 (39.54) - (39.24) MIST Loomis Sayles Global 2012 2.37 1.15 - 2.25 14.32 - 15.59 Markets Investment Division 2011 2.22 1.15 - 2.25 (3.67) - (2.61) (Commenced 11/7/2008 2010 2.23 1.15 - 2.25 19.30 - 20.62 and began transactions in 2009) 2009 0.16 1.15 - 2.00 38.04 - 39.22 MIST Lord Abbett Bond 2012 7.19 0.50 - 2.30 10.37 - 12.38 Debenture Investment Division 2011 5.99 0.50 - 2.30 2.09 - 3.94 2010 6.21 0.50 - 2.30 10.40 - 12.40 2009 7.15 0.50 - 2.30 33.66 - 36.09 2008 4.30 0.50 - 2.30 (19.79) - (19.00) MIST Lord Abbett Mid Cap Value 2012 -- 0.50 - 2.30 1.67 - 2.93 Investment Division (Commenced 4/30/2012) MIST Met/Eaton Vance 2012 3.27 1.15 - 2.05 5.14 - 6.10 Floating Rate Investment 2011 2.13 1.15 - 2.05 (0.06) - 0.84 Division (Commenced 5/3/2010) 2010 -- 1.15 - 2.05 1.81 - 2.42 MIST Met/Franklin Income 2012 4.87 0.50 - 2.30 9.92 - 11.93 Investment Division 2011 4.33 0.50 - 2.30 (0.18) - 1.63 (Commenced 4/28/2008) 2010 3.76 0.50 - 2.30 9.28 - 11.26 2009 -- 0.50 - 2.30 24.92 - 27.19 2008 4.42 0.95 - 2.30 (20.60) - (19.90) MIST Met/Franklin Low 2012 1.69 0.50 - 2.05 2.27 - 3.87 Duration Total Return 2011 -- 0.95 - 2.05 (2.63) - (1.92) Investment Division (Commenced 5/2/2011) MIST Met/Franklin Mutual 2012 0.57 0.50 - 2.30 11.31 - 13.35 Shares Investment Division 2011 2.71 0.50 - 2.30 (2.81) - (1.03) (Commenced 4/28/2008) 2010 -- 0.50 - 2.30 8.51 - 10.46 2009 -- 0.50 - 2.30 22.05 - 24.27 2008 5.65 0.50 - 2.30 (34.30) - (33.60)
87 METROPOLITAN LIFE SEPARATE ACCOUNT E OF METROPOLITAN LIFE INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 8. FINANCIAL HIGHLIGHTS -- (CONTINUED)
AS OF DECEMBER 31 --------------------------------------------------- UNIT VALUE LOWEST TO NET UNITS HIGHEST ($) ASSETS ($) ------------- ----------------- ---------------- MIST Met/Franklin Templeton 2012 6,116,829 10.41 - 11.20 66,007,938 Founding Strategy 2011 6,295,740 9.07 - 9.69 59,253,268 Investment Division 2010 6,203,619 9.44 - 9.91 60,196,783 (Commenced 4/28/2008) 2009 5,631,074 8.78 - 9.05 50,292,640 2008 2,808,700 7.01 - 7.06 19,766,948 MIST Met/Templeton Growth 2012 2,606,912 1.02 - 10.53 26,394,020 Investment Division 2011 2,619,413 8.18 - 8.66 22,033,920 (Commenced 4/28/2008) 2010 1,927,337 8.96 - 9.34 17,633,999 2009 1,114,271 8.50 - 8.72 9,591,357 2008 329,768 6.54 - 6.61 2,167,857 MIST Met/Templeton 2012 643,048 13.22 - 13.64 8,734,807 International Bond 2011 586,262 11.80 - 12.07 7,057,738 Investment Division 2010 363,350 12.08 - 12.25 4,442,866 (Commenced 5/4/2009) 2009 64,135 10.85 - 10.92 699,311 MIST MetLife Aggressive 2012 9,769,796 11.19 - 12.85 119,313,920 Strategy Investment Division 2011 9,693,030 9.81 - 11.06 102,483,285 (Commenced 5/2/2011) MIST MetLife Balanced Plus 2012 146,453,494 10.31 - 10.51 1,536,558,887 Investment Division 2011 64,032,367 9.35 - 9.40 601,466,008 (Commenced 5/2/2011) MIST MetLife Multi-Index 2012 6,808,899 1.01 6,903,413 Targeted Risk Investment Division (Commenced 11/12/2012) MIST MFS Emerging Markets 2012 4,236,736 11.16 - 12.02 50,543,249 Equity Investment Division 2011 4,108,037 9.61 - 10.22 41,739,144 (Commenced 11/7/2008 2010 2,608,505 12.08 - 12.72 32,997,742 and began transactions in 2009) 2009 922,163 10.07 - 10.41 9,547,667 MIST MFS Research International 2012 17,677,847 1.50 - 16.57 232,797,238 Investment Division 2011 19,673,406 1.30 - 14.30 219,299,244 2010 20,874,325 1.48 - 16.11 258,478,220 2009 23,007,961 1.34 - 14.57 245,592,968 2008 23,286,391 1.03 - 19.76 184,318,026 MIST MLA Mid Cap 2012 3,544,386 1.52 - 16.73 52,678,940 Investment Division 2011 4,027,371 1.46 - 15.97 57,642,160 2010 4,081,305 1.57 - 16.94 62,137,025 2009 4,007,439 1.29 - 13.86 49,807,030 2008 4,047,265 0.96 - 10.18 36,431,561 MIST Morgan Stanley Mid Cap 2012 20,975,481 1.49 - 17.06 328,177,563 Growth Investment Division 2011 23,184,585 1.38 - 15.69 331,439,430 (Commenced 5/3/2010) 2010 24,873,224 1.51 - 16.94 386,858,882 MIST PIMCO Inflation 2012 42,379,551 14.89 - 17.89 697,291,188 Protected Bond 2011 39,768,473 13.97 - 16.47 607,250,028 Investment Division 2010 33,648,714 12.86 - 14.87 467,910,969 2009 24,705,878 12.21 - 13.86 322,661,010 2008 16,609,891 10.58 - 11.78 186,022,258 FOR THE YEAR ENDED DECEMBER 31 ------------------------------------------------------- INVESTMENT(1) EXPENSE RATIO(2) TOTAL RETURN(3) INCOME LOWEST TO LOWEST TO RATIO (%) HIGHEST (%) HIGHEST (%) -------------- ---------------- ------------------ MIST Met/Franklin Templeton 2012 4.02 0.50 - 2.05 13.76 - 15.54 Founding Strategy 2011 1.72 0.50 - 2.30 (3.99) - (2.25) Investment Division 2010 -- 0.50 - 2.30 7.54 - 9.49 (Commenced 4/28/2008) 2009 -- 0.50 - 2.30 25.64 - 27.92 2008 3.23 0.95 - 2.30 (29.90) - (29.40) MIST Met/Templeton Growth 2012 1.58 0.50 - 2.30 19.42 - 21.60 Investment Division 2011 1.28 0.50 - 2.05 (8.79) - (7.36) (Commenced 4/28/2008) 2010 1.01 0.50 - 2.05 5.48 - 7.12 2009 0.02 0.50 - 2.05 29.92 - 31.97 2008 1.01 0.50 - 2.30 (34.60) - (33.90) MIST Met/Templeton 2012 9.92 1.15 - 2.00 12.01 - 12.97 International Bond 2011 6.74 1.15 - 2.00 (2.30) - (1.47) Investment Division 2010 0.46 1.15 - 2.00 11.30 - 12.25 (Commenced 5/4/2009) 2009 -- 1.15 - 2.00 8.53 - 9.15 MIST MetLife Aggressive 2012 0.69 0.50 - 2.30 14.07 - 16.16 Strategy Investment Division 2011 -- 0.50 - 2.30 (14.87) - (13.84) (Commenced 5/2/2011) MIST MetLife Balanced Plus 2012 -- 1.15 - 2.30 4.01 - 11.81 Investment Division 2011 0.29 1.15 - 2.00 (6.52) - (6.00) (Commenced 5/2/2011) MIST MetLife Multi-Index 2012 -- 1.15 - 1.80 2.59 - 2.68 Targeted Risk Investment Division (Commenced 11/12/2012) MIST MFS Emerging Markets 2012 0.74 1.15 - 2.25 16.24 - 17.53 Equity Investment Division 2011 1.34 1.15 - 2.25 (20.51) - (19.64) (Commenced 11/7/2008 2010 0.84 1.15 - 2.25 20.90 - 22.24 and began transactions in 2009) 2009 0.16 1.15 - 2.05 65.54 - 67.02 MIST MFS Research International 2012 1.98 0.50 - 2.30 14.04 - 16.12 Investment Division 2011 1.96 0.50 - 2.30 (12.74) - (11.15) 2010 1.81 0.50 - 2.30 8.88 - 10.85 2009 3.18 0.50 - 2.30 28.57 - 30.91 2008 1.73 0.50 - 2.30 (43.41) - 1.39 MIST MLA Mid Cap 2012 0.44 0.50 - 2.30 2.88 - 4.76 Investment Division 2011 0.76 0.50 - 2.30 (7.42) - (5.75) 2010 0.89 0.50 - 2.30 20.07 - 22.25 2009 1.18 0.50 - 2.30 33.65 - 36.08 2008 1.00 0.50 - 2.30 (38.85) - (38.23) MIST Morgan Stanley Mid Cap 2012 -- 0.50 - 2.30 6.78 - 8.73 Growth Investment Division 2011 0.71 0.50 - 2.30 (9.03) - (7.26) (Commenced 5/3/2010) 2010 -- 0.50 - 2.30 15.85 - 16.84 MIST PIMCO Inflation 2012 3.01 0.50 - 2.30 6.64 - 8.62 Protected Bond 2011 1.61 0.50 - 2.30 8.62 - 10.77 Investment Division 2010 2.26 0.50 - 2.30 5.32 - 7.31 2009 3.28 0.50 - 2.30 15.37 - 17.60 2008 3.60 0.50 - 2.30 (9.03) - (7.24)
88 METROPOLITAN LIFE SEPARATE ACCOUNT E OF METROPOLITAN LIFE INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 8. FINANCIAL HIGHLIGHTS -- (CONTINUED)
AS OF DECEMBER 31 -------------------------------------------------- UNIT VALUE LOWEST TO NET UNITS HIGHEST ($) ASSETS ($) ------------- ----------------- --------------- MIST PIMCO Total Return 2012 69,856,684 1.81 - 19.99 1,226,100,483 Investment Division 2011 69,538,746 1.68 - 18.38 1,123,078,623 2010 67,513,724 1.65 - 17.91 1,048,658,444 2009 53,386,890 1.54 - 16.64 745,981,638 2008 41,057,029 1.32 - 14.17 488,023,782 MIST Pioneer Strategic Income 2012 2,454,674 24.83 - 29.35 70,080,765 Investment Division 2011 2,135,286 22.75 - 26.64 55,464,787 (Commenced 11/7/2008 2010 1,345,150 22.44 - 26.04 34,118,467 and began transactions in 2009) 2009 323,516 20.44 - 23.51 7,426,917 MIST Pyramis Government 2012 54,809,703 10.80 - 10.99 600,925,084 Income Investment Division 2011 18,617,176 10.71 - 10.77 200,414,660 (Commenced 5/2/2011) MIST RCM Technology 2012 19,525,288 0.68 - 17.40 135,782,035 Investment Division 2011 21,582,783 0.62 - 15.62 133,833,471 2010 21,798,046 0.70 - 17.48 151,310,709 2009 20,279,891 0.55 - 13.76 114,450,499 2008 14,885,344 0.35 - 8.73 53,261,194 MIST Schroders Global 2012 121,622,449 1.06 - 1.07 130,034,225 Multi-Asset Investment Division (Commenced 4/30/2012) MIST SSgA Growth and Income 2012 70,205,649 12.14 - 13.83 919,015,955 ETF Investment Division 2011 69,044,794 11.01 - 12.32 811,024,282 2010 49,243,201 11.14 - 12.25 579,390,787 2009 17,209,210 10.16 - 10.97 182,595,296 2008 1,018,446 8.32 - 8.83 8,767,451 MIST SSgA Growth ETF 2012 9,321,683 11.55 - 13.16 116,064,976 Investment Division 2011 8,738,265 10.27 - 11.50 95,770,056 2010 7,423,121 10.74 - 11.81 84,197,233 2009 5,430,802 9.63 - 10.39 54,665,570 2008 867,152 7.63 - 8.09 6,844,874 MIST T. Rowe Price Mid Cap 2012 26,770,501 1.15 - 19.50 300,330,183 Growth Investment Division 2011 28,074,170 1.02 - 17.28 276,466,812 2010 26,424,580 1.05 - 17.69 269,741,582 2009 24,198,838 0.84 - 13.94 191,894,410 2008 22,042,286 0.58 - 9.65 118,146,449 MIST Third Avenue Small Cap 2012 650,739 18.24 - 20.40 12,367,720 Value Investment Division 2011 611,373 15.70 - 17.38 9,963,715 2010 553,242 17.52 - 19.19 10,020,158 2009 506,685 14.84 - 16.09 7,743,513 2008 420,511 11.92 - 12.78 5,140,445 MSF Baillie Gifford 2012 12,744,728 1.34 - 15.88 157,488,412 International Stock 2011 14,325,010 1.14 - 13.42 149,064,918 Investment Division 2010 15,081,511 1.44 - 16.90 196,319,126 2009 15,981,027 1.36 - 15.91 197,024,423 2008 17,118,077 1.13 - 13.15 171,501,812 FOR THE YEAR ENDED DECEMBER 31 ----------------------------------------------------- INVESTMENT(1) EXPENSE RATIO(2) TOTAL RETURN(3) INCOME LOWEST TO LOWEST TO RATIO (%) HIGHEST (%) HIGHEST (%) ------------- ---------------- ------------------ MIST PIMCO Total Return 2012 3.16 0.50 - 2.30 6.77 - 8.85 Investment Division 2011 2.72 0.50 - 2.30 0.83 - 2.76 2010 3.43 0.50 - 2.30 5.71 - 7.71 2009 6.78 0.50 - 2.30 15.34 - 17.63 2008 3.85 0.50 - 2.30 (1.49) - (0.07) MIST Pioneer Strategic Income 2012 4.73 1.15 - 2.05 9.18 - 10.17 Investment Division 2011 4.31 1.15 - 2.05 1.36 - 2.28 (Commenced 11/7/2008 2010 3.53 1.15 - 2.05 9.77 - 10.76 and began transactions in 2009) 2009 0.48 1.15 - 2.05 30.07 - 31.25 MIST Pyramis Government 2012 0.01 1.15 - 2.15 0.94 - 1.96 Income Investment Division 2011 0.95 1.15 - 2.00 7.14 - 7.75 (Commenced 5/2/2011) MIST RCM Technology 2012 -- 0.50 - 2.30 9.56 - 11.56 Investment Division 2011 -- 0.50 - 2.30 (12.02) - (10.34) 2010 -- 0.50 - 2.30 24.79 - 27.08 2009 -- 0.50 - 2.30 55.36 - 58.17 2008 13.65 0.50 - 2.30 (45.31) - 7.25 MIST Schroders Global 2012 1.65 1.15 - 2.30 5.04 - 5.86 Multi-Asset Investment Division (Commenced 4/30/2012) MIST SSgA Growth and Income 2012 2.35 0.50 - 2.30 10.27 - 12.28 ETF Investment Division 2011 1.66 0.50 - 2.30 (1.23) - 0.56 2010 1.07 0.50 - 2.30 9.69 - 11.68 2009 1.00 0.50 - 2.30 22.04 - 24.27 2008 1.56 0.50 - 2.30 (26.82) - (25.42) MIST SSgA Growth ETF 2012 1.93 0.50 - 2.30 12.40 - 14.46 Investment Division 2011 1.59 0.50 - 2.30 (4.36) - (2.62) 2010 1.40 0.50 - 2.30 11.56 - 13.58 2009 1.01 0.50 - 2.30 26.17 - 28.45 2008 1.50 0.50 - 2.30 (34.51) - (33.31) MIST T. Rowe Price Mid Cap 2012 -- 0.50 - 2.30 11.08 - 13.11 Growth Investment Division 2011 -- 0.50 - 2.30 (3.88) - (2.14) 2010 -- 0.50 - 2.30 24.78 - 27.04 2009 -- 0.50 - 2.30 42.12 - 44.74 2008 0.02 0.50 - 2.30 (40.82) - (40.21) MIST Third Avenue Small Cap 2012 -- 0.50 - 1.55 16.16 - 17.40 Value Investment Division 2011 1.05 0.50 - 1.55 (10.38) - (9.44) 2010 1.13 0.50 - 1.55 18.05 - 19.30 2009 1.12 0.50 - 1.55 24.51 - 25.82 2008 0.72 0.50 - 1.55 (30.90) - (30.20) MSF Baillie Gifford 2012 1.27 0.65 - 2.30 16.64 - 18.74 International Stock 2011 1.71 0.65 - 2.30 (21.95) - (20.39) Investment Division 2010 1.50 0.65 - 2.30 4.43 - 6.52 2009 0.60 0.95 - 2.30 19.12 - 21.03 2008 3.04 0.95 - 2.30 (44.65) - (44.61)
89 METROPOLITAN LIFE SEPARATE ACCOUNT E OF METROPOLITAN LIFE INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 8. FINANCIAL HIGHLIGHTS -- (CONTINUED)
AS OF DECEMBER 31 -------------------------------------------------- UNIT VALUE LOWEST TO NET UNITS HIGHEST ($) ASSETS ($) ------------- ----------------- --------------- MSF Barclays Capital 2012 67,675,314 1.69 - 19.06 1,150,681,701 Aggregate Bond Index 2011 67,360,242 1.65 - 18.49 1,115,074,009 Investment Division 2010 67,541,233 1.56 - 17.32 1,054,370,494 2009 60,512,287 1.50 - 16.47 901,723,219 2008 53,280,392 1.45 - 15.77 761,920,074 MSF BlackRock Aggressive 2012 11,188,890 14.31 - 57.22 439,241,102 Growth Investment Division 2011 12,356,496 13.09 - 52.05 441,856,480 2010 13,591,177 13.70 - 54.17 506,917,230 2009 14,747,259 12.07 - 47.42 479,958,097 2008 15,776,330 8.20 - 32.04 344,820,349 MSF BlackRock Bond Income 2012 12,916,416 6.40 - 76.37 513,127,216 Investment Division 2011 13,863,749 6.03 - 71.54 503,747,574 2010 14,977,082 5.73 - 67.64 500,008,866 2009 15,377,793 5.36 - 62.90 442,133,515 2008 16,836,670 4.97 - 57.90 424,475,862 MSF BlackRock Diversified 2012 16,477,433 14.88 - 55.00 632,285,328 Investment Division 2011 18,361,628 13.37 - 49.41 634,685,560 2010 20,865,957 13.00 - 48.05 703,823,057 2009 23,518,536 11.97 - 44.24 732,160,930 2008 26,879,083 10.30 - 38.07 719,674,176 MSF BlackRock Large Cap 2012 17,523,603 1.27 - 13.74 220,191,829 Value Investment Division 2011 18,527,061 0.81 - 12.12 206,549,406 2010 17,848,335 1.12 - 11.94 195,798,773 2009 16,843,730 1.04 - 11.01 171,711,377 2008 15,206,819 0.95 - 9.97 139,910,970 MSF BlackRock Legacy Large 2012 9,513,547 3.36 - 37.60 164,222,677 Cap Growth Investment 2011 10,497,393 2.98 - 33.13 154,395,881 Division 2010 10,566,230 3.32 - 36.65 147,006,605 2009 11,310,287 2.81 - 30.83 114,584,021 2008 12,006,106 2.08 - 22.70 70,886,323 MSF BlackRock Money Market 2012 6,582,029 2.45 - 24.28 88,984,812 Investment Division 2011 7,581,515 2.48 - 24.59 87,677,129 2010 7,489,620 2.52 - 24.90 76,398,280 2009 9,055,515 2.55 - 25.21 78,480,535 2008 13,377,855 2.58 - 25.45 93,712,881 MSF Davis Venture Value 2012 20,783,231 3.65 - 40.74 562,306,956 Investment Division 2011 23,022,534 3.28 - 36.35 549,949,416 2010 24,503,478 3.46 - 38.17 590,814,367 2009 24,861,457 3.13 - 34.34 500,253,145 2008 26,126,308 2.40 - 26.21 366,248,175 MSF FI Value Leaders 2012 4,195,363 1.01 - 32.45 62,218,117 Investment Division 2011 4,767,521 2.52 - 28.24 60,845,379 2010 5,386,863 2.72 - 30.32 71,561,113 2009 6,197,829 2.40 - 26.67 69,067,926 2008 7,122,172 2.00 - 22.06 61,290,542 FOR THE YEAR ENDED DECEMBER 31 ----------------------------------------------------- INVESTMENT(1) EXPENSE RATIO(2) TOTAL RETURN(3) INCOME LOWEST TO LOWEST TO RATIO (%) HIGHEST (%) HIGHEST (%) ------------- ---------------- ----------------- MSF Barclays Capital 2012 3.58 0.50 - 2.30 1.26 - 3.23 Aggregate Bond Index 2011 3.44 0.50 - 2.30 4.85 - 6.82 Investment Division 2010 3.52 0.50 - 2.30 3.30 - 5.37 2009 5.60 0.50 - 2.30 2.59 - 4.49 2008 4.54 0.50 - 2.30 4.32 - 5.13 MSF BlackRock Aggressive 2012 -- 0.95 - 2.30 8.16 - 9.93 Growth Investment Division 2011 0.27 0.95 - 2.30 (5.44) - (3.91) 2010 0.06 0.95 - 2.30 12.38 - 14.22 2009 0.18 0.95 - 2.30 45.67 - 48.03 2008 -- 0.95 - 2.30 (53.22) - (46.23) MSF BlackRock Bond Income 2012 2.59 0.50 - 2.30 4.83 - 6.85 Investment Division 2011 3.88 0.50 - 2.30 3.89 - 5.88 2010 3.80 0.50 - 2.30 5.61 - 7.64 2009 6.79 0.50 - 2.30 6.70 - 8.76 2008 5.20 0.50 - 2.30 (4.61) - (4.14) MSF BlackRock Diversified 2012 2.28 0.95 - 2.30 2.13 - 11.32 Investment Division 2011 2.43 0.95 - 2.30 1.24 - 2.83 2010 1.90 0.95 - 2.30 6.83 - 8.62 2009 5.14 0.95 - 2.30 14.34 - 16.20 2008 2.84 0.95 - 2.30 (25.52) - (25.50) MSF BlackRock Large Cap 2012 1.42 0.50 - 2.30 11.37 - 13.40 Value Investment Division 2011 0.92 0.50 - 2.30 (1.37) - 2.11 2010 0.86 0.50 - 2.30 6.45 - 8.38 2009 1.35 0.50 - 2.30 8.53 - 10.51 2008 0.61 0.50 - 2.30 (35.81) - (35.39) MSF BlackRock Legacy Large 2012 0.10 0.50 - 2.30 11.47 - 13.63 Cap Growth Investment 2011 0.03 0.50 - 2.30 (11.22) - (9.54) Division 2010 0.07 0.50 - 2.30 16.75 - 19.05 2009 0.39 0.50 - 2.30 33.41 - 35.90 2008 0.29 0.50 - 2.30 (37.35) - (31.38) MSF BlackRock Money Market 2012 -- 0.95 - 2.30 (2.29) - (0.94) Investment Division 2011 -- 0.95 - 2.30 (2.26) - (0.94) 2010 -- 0.95 - 2.30 (2.28) - (0.93) 2009 0.33 0.95 - 2.30 (2.03) - (0.52) 2008 2.62 0.95 - 2.30 1.48 - 1.57 MSF Davis Venture Value 2012 0.66 0.50 - 2.30 10.04 - 12.13 Investment Division 2011 0.98 0.50 - 2.30 (6.44) - (4.65) 2010 0.86 0.50 - 2.30 9.17 - 11.27 2009 1.35 0.50 - 2.30 28.66 - 31.14 2008 1.19 0.50 - 2.30 (40.30) - (39.83) MSF FI Value Leaders 2012 1.04 0.50 - 2.30 0.73 - 14.89 Investment Division 2011 0.95 0.50 - 2.30 (8.51) - (6.85) 2010 1.45 0.50 - 2.30 11.68 - 13.71 2009 2.64 0.50 - 2.30 18.72 - 20.88 2008 1.74 0.50 - 2.30 (39.76) - (39.41)
90 METROPOLITAN LIFE SEPARATE ACCOUNT E OF METROPOLITAN LIFE INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 8. FINANCIAL HIGHLIGHTS -- (CONTINUED)
AS OF DECEMBER 31 -------------------------------------------------- UNIT VALUE LOWEST TO NET UNITS HIGHEST ($) ASSETS ($) ------------- ----------------- --------------- MSF Jennison Growth 2012 24,173,265 0.60 - 15.21 154,053,950 Investment Division 2011 15,846,735 0.52 - 13.26 82,954,033 2010 12,651,183 0.53 - 13.32 67,839,064 2009 10,221,743 0.48 - 12.05 48,019,094 2008 7,367,023 0.35 - 8.69 23,825,643 MSF Loomis Sayles Small Cap 2012 6,753,486 4.19 - 47.14 157,335,875 Core Investment Division 2011 7,753,152 3.71 - 41.46 152,652,688 2010 8,483,306 3.74 - 41.52 158,697,696 2009 9,510,756 2.97 - 32.81 134,569,722 2008 10,338,609 2.31 - 25.38 102,115,332 MSF Loomis Sayles Small Cap 2012 3,652,206 1.19 - 14.40 41,493,878 Growth Investment Division 2011 4,424,648 1.09 - 13.07 46,369,339 2010 4,256,184 1.08 - 12.81 43,602,855 2009 4,562,561 0.83 - 9.82 36,176,490 2008 4,490,130 0.65 - 7.63 27,534,390 MSF Met/Artisan Mid Cap 2012 8,082,313 3.71 - 41.38 212,602,997 Value Investment Division 2011 9,138,238 3.36 - 37.27 212,168,332 2010 10,171,808 3.19 - 35.17 217,605,252 2009 11,496,387 2.81 - 30.80 210,520,522 2008 13,047,548 2.01 - 21.92 163,902,675 MSF Met/Dimensional 2012 283,529 16.15 - 16.73 4,719,389 International Small Company 2011 284,129 13.97 - 14.35 4,062,760 Investment Division 2010 194,434 17.02 - 17.34 3,362,782 (Commenced 11/7/2008 and 2009 76,087 14.17 - 14.31 1,087,279 began transactions in 2009) MSF MetLife Conservative 2012 43,441,164 12.59 - 14.45 591,422,970 Allocation Investment 2011 40,920,905 11.80 - 13.30 516,749,285 Division 2010 34,931,385 11.69 - 12.95 432,541,976 2009 25,915,327 10.87 - 11.83 295,306,945 2008 17,373,413 9.23 - 9.86 166,398,948 MSF MetLife Conservative to 2012 105,124,056 12.43 - 14.27 1,413,830,336 Moderate Allocation 2011 105,687,728 11.41 - 12.87 1,291,252,079 Investment Division 2010 92,893,969 11.56 - 12.80 1,137,111,581 2009 73,016,806 10.60 - 11.53 811,434,046 2008 55,768,665 8.77 - 9.37 507,403,971 MSF MetLife Mid Cap Stock 2012 21,893,382 1.95 - 21.73 424,114,372 Index Investment Division 2011 23,078,700 1.69 - 19.40 384,380,587 2010 23,301,277 1.75 - 19.13 396,881,128 2009 23,602,002 1.41 - 15.26 319,741,957 2008 22,949,647 1.04 - 11.21 232,486,143 MSF MetLife Moderate 2012 298,818,839 12.11 - 13.91 3,918,217,622 Allocation Investment 2011 307,124,843 10.95 - 12.34 3,601,073,971 Division 2010 270,336,724 11.36 - 12.58 3,253,209,310 2009 197,414,896 10.27 - 11.17 2,125,104,855 2008 140,869,174 8.30 - 8.87 1,213,561,775 FOR THE YEAR ENDED DECEMBER 31 ----------------------------------------------------- INVESTMENT(1) EXPENSE RATIO(2) TOTAL RETURN(3) INCOME LOWEST TO LOWEST TO RATIO (%) HIGHEST (%) HIGHEST (%) ------------- ---------------- ----------------- MSF Jennison Growth 2012 0.05 0.50 - 2.30 (4.18) - 14.69 Investment Division 2011 0.11 0.95 - 2.30 (2.06) - (0.42) 2010 0.45 0.95 - 2.30 8.78 - 10.58 2009 0.08 0.95 - 2.30 36.39 - 38.70 2008 2.33 0.95 - 2.30 (36.98) - (36.36) MSF Loomis Sayles Small Cap 2012 -- 0.50 - 2.30 11.66 - 13.70 Core Investment Division 2011 0.04 0.50 - 2.30 (1.94) - (0.16) 2010 0.03 0.50 - 2.30 24.32 - 26.57 2009 0.12 0.50 - 2.30 26.97 - 29.28 2008 -- 0.50 - 2.30 (36.89) - (36.36) MSF Loomis Sayles Small Cap 2012 -- 0.50 - 2.30 8.36 - 10.34 Growth Investment Division 2011 -- 0.50 - 2.30 0.41 - 2.23 2010 -- 0.50 - 2.30 28.37 - 30.68 2009 -- 0.50 - 2.30 26.72 - 29.03 2008 -- 0.50 - 2.30 (41.96) - (41.71) MSF Met/Artisan Mid Cap 2012 0.89 0.50 - 2.30 9.03 - 11.02 Value Investment Division 2011 0.87 0.50 - 2.30 4.08 - 5.96 2010 0.68 0.50 - 2.30 12.15 - 14.19 2009 0.99 0.50 - 2.30 37.98 - 40.49 2008 0.24 0.50 - 2.30 (46.83) - (46.41) MSF Met/Dimensional 2012 2.17 1.15 - 2.00 15.56 - 16.55 International Small Company 2011 1.91 1.15 - 2.00 (17.91) - (17.21) Investment Division 2010 1.16 1.15 - 2.00 20.16 - 21.19 (Commenced 11/7/2008 and 2009 -- 1.15 - 2.00 39.89 - 41.08 began transactions in 2009) MSF MetLife Conservative 2012 3.12 0.50 - 2.30 6.68 - 8.63 Allocation Investment 2011 2.29 0.50 - 2.30 0.91 - 2.74 Division 2010 3.47 0.50 - 2.30 7.55 - 9.50 2009 2.96 0.50 - 2.30 17.79 - 19.91 2008 0.94 0.50 - 2.30 (16.32) - (14.85) MSF MetLife Conservative to 2012 2.89 0.50 - 2.30 8.91 - 10.90 Moderate Allocation 2011 2.04 0.50 - 2.30 (1.24) - 0.55 Investment Division 2010 3.28 0.50 - 2.30 8.99 - 10.97 2009 3.04 0.50 - 2.30 20.87 - 23.06 2008 1.08 0.50 - 2.30 (23.41) - (21.98) MSF MetLife Mid Cap Stock 2012 0.84 0.50 - 2.30 14.65 - 16.74 Index Investment Division 2011 0.77 0.50 - 2.30 (4.41) - (2.53) 2010 0.88 0.50 - 2.30 23.14 - 25.37 2009 1.65 0.50 - 2.30 33.67 - 36.09 2008 1.30 0.50 - 2.30 (39.01) - (37.35) MSF MetLife Moderate 2012 2.31 0.50 - 2.30 10.65 - 12.67 Allocation Investment 2011 1.50 0.50 - 2.30 (3.61) - (1.86) Division 2010 2.43 0.50 - 2.30 10.60 - 12.61 2009 2.71 0.50 - 2.30 23.65 - 25.90 2008 0.80 0.50 - 2.30 (30.31) - (28.98)
91 METROPOLITAN LIFE SEPARATE ACCOUNT E OF METROPOLITAN LIFE INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 8. FINANCIAL HIGHLIGHTS -- (CONTINUED)
AS OF DECEMBER 31 -------------------------------------------------- UNIT VALUE LOWEST TO NET UNITS HIGHEST ($) ASSETS ($) ------------- ----------------- --------------- MSF MetLife Moderate to 2012 129,396,377 11.75 - 13.49 1,645,757,850 Aggressive Allocation 2011 136,308,678 10.42 - 11.75 1,520,709,941 Investment Division 2010 138,767,656 11.08 - 12.27 1,628,677,260 2009 140,559,044 9.88 - 10.75 1,456,360,305 2008 120,035,284 7.83 - 8.37 975,444,229 MSF MetLife Stock Index 2012 59,173,051 4.45 - 53.96 2,620,060,354 Investment Division 2011 64,969,064 3.91 - 46.98 2,511,243,451 2010 69,017,391 3.90 - 46.46 2,646,303,266 2009 71,097,931 3.45 - 40.78 2,393,363,534 2008 73,669,152 2.78 - 32.55 1,978,067,366 MSF MFS Total Return 2012 5,978,496 5.35 - 61.91 138,805,577 Investment Division 2011 6,944,475 4.86 - 55.90 135,335,283 2010 7,658,769 4.81 - 54.99 142,302,103 2009 8,470,625 4.43 - 50.34 133,692,456 2008 9,513,697 3.79 - 42.76 117,792,924 MSF MFS Value Investment 2012 21,031,945 1.38 - 17.15 293,940,083 Division 2011 22,395,513 1.20 - 14.91 271,032,881 2010 23,312,590 1.21 - 14.99 280,199,767 2009 22,877,144 1.10 - 13.64 249,421,604 2008 23,729,130 0.93 - 10.00 216,469,833 MSF MSCI EAFE Index 2012 36,718,700 1.29 - 17.03 476,584,802 Investment Division 2011 38,516,192 1.11 - 14.53 428,461,169 2010 36,009,259 1.29 - 16.76 462,135,393 2009 33,890,643 1.21 - 15.64 407,182,564 2008 32,911,652 0.96 - 12.27 309,589,902 MSF Neuberger Berman 2012 14,721,611 1.90 - 20.58 254,522,484 Genesis Investment Division 2011 16,685,101 1.75 - 18.85 263,644,663 2010 18,897,311 1.68 - 17.96 284,284,918 2009 21,389,031 1.40 - 14.87 265,456,589 2008 23,715,736 1.26 - 13.25 259,092,609 MSF Oppenheimer Global 2012 10,404,769 16.31 - 22.58 219,397,966 Equity Investment Division 2011 11,458,967 13.63 - 18.76 201,576,453 2010 11,471,149 15.07 - 20.63 223,279,060 2009 11,212,707 13.16 - 17.92 190,851,984 2008 11,151,246 9.53 - 12.89 137,369,852 MSF Russell 2000 Index 2012 14,020,186 1.96 - 22.12 272,948,994 Investment Division 2011 14,971,453 1.71 - 19.16 253,478,593 2010 15,715,274 1.81 - 20.12 280,017,667 2009 16,192,484 1.45 - 15.97 230,205,898 2008 16,294,895 1.17 - 12.78 184,129,597 MSF T. Rowe Price Large Cap 2012 11,787,393 14.15 - 18.25 196,268,660 Growth Investment Division 2011 12,337,838 12.20 - 15.46 174,880,384 2010 13,494,657 12.65 - 15.75 195,957,544 2009 14,615,966 11.09 - 13.56 183,761,502 2008 14,856,276 7.93 - 9.53 132,037,051 FOR THE YEAR ENDED DECEMBER 31 ----------------------------------------------------- INVESTMENT(1) EXPENSE RATIO(2) TOTAL RETURN(3) INCOME LOWEST TO LOWEST TO RATIO (%) HIGHEST (%) HIGHEST (%) ------------- ---------------- ----------------- MSF MetLife Moderate to 2012 1.92 0.50 - 2.30 12.75 - 14.81 Aggressive Allocation 2011 1.42 0.50 - 2.30 (5.96) - (4.25) Investment Division 2010 2.14 0.50 - 2.30 12.10 - 14.13 2009 2.49 0.50 - 2.30 26.16 - 28.46 2008 0.60 0.50 - 2.30 (36.65) - (35.47) MSF MetLife Stock Index 2012 1.70 0.50 - 2.30 2.28 - 15.01 Investment Division 2011 1.60 0.50 - 2.30 (0.67) - 1.18 2010 1.69 0.50 - 2.30 11.89 - 14.08 2009 2.63 0.50 - 2.30 23.06 - 25.42 2008 1.90 0.50 - 2.30 (38.08) - (37.57) MSF MFS Total Return 2012 2.74 0.50 - 2.30 8.76 - 10.75 Investment Division 2011 2.63 0.50 - 2.30 (0.16) - 1.65 2010 2.91 0.50 - 2.30 7.30 - 9.25 2009 4.16 0.50 - 2.30 15.61 - 17.71 2008 3.58 0.50 - 2.30 (23.12) - (22.75) MSF MFS Value Investment 2012 1.80 0.50 - 2.30 2.89 - 15.89 Division 2011 1.44 0.50 - 2.30 (1.65) - 0.14 2010 1.31 0.50 - 2.30 8.66 - 10.63 2009 -- 0.50 - 2.30 17.83 - 19.98 2008 1.94 0.50 - 2.30 (34.51) - (34.04) MSF MSCI EAFE Index 2012 2.90 0.50 - 2.30 15.33 - 17.56 Investment Division 2011 2.30 0.50 - 2.30 (14.63) - (13.06) 2010 2.56 0.50 - 2.30 5.46 - 7.50 2009 4.12 0.50 - 2.30 25.36 - 27.84 2008 2.79 0.50 - 2.30 (42.86) - (42.61) MSF Neuberger Berman 2012 0.27 0.50 - 2.30 7.25 - 9.20 Genesis Investment Division 2011 0.67 0.50 - 2.30 3.11 - 4.98 2010 0.43 0.50 - 2.30 10.18 - 20.74 2009 1.00 0.50 - 2.30 10.27 - 12.28 2008 0.42 0.50 - 2.30 (39.13) - (38.86) MSF Oppenheimer Global 2012 1.53 0.65 - 2.30 18.41 - 20.73 Equity Investment Division 2011 1.88 0.65 - 2.30 (10.48) - (8.82) 2010 1.45 0.65 - 2.30 13.29 - 15.48 2009 2.42 0.65 - 2.30 36.62 - 39.41 2008 2.09 0.65 - 2.30 (41.32) - (40.93) MSF Russell 2000 Index 2012 1.03 0.50 - 2.30 13.40 - 15.59 Investment Division 2011 0.96 0.50 - 2.30 (6.46) - (4.71) 2010 1.00 0.50 - 2.30 23.70 - 26.10 2009 1.91 0.50 - 2.30 22.81 - 25.20 2008 1.15 0.50 - 2.30 (34.64) - (33.99) MSF T. Rowe Price Large Cap 2012 0.06 0.50 - 2.30 (1.73) - 18.20 Growth Investment Division 2011 0.04 0.50 - 2.30 (3.57) - (1.75) 2010 0.17 0.50 - 2.30 14.08 - 16.30 2009 0.48 0.50 - 2.30 39.79 - 42.51 2008 0.47 0.50 - 2.30 (43.19) - (42.28)
92 METROPOLITAN LIFE SEPARATE ACCOUNT E OF METROPOLITAN LIFE INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONCLUDED) 8. FINANCIAL HIGHLIGHTS -- (CONCLUDED)
AS OF DECEMBER 31 ------------------------------------------------ UNIT VALUE LOWEST TO NET UNITS HIGHEST ($) ASSETS ($) ------------- ---------------- --------------- MSF T. Rowe Price Small Cap 2012 13,154,613 17.45 - 23.91 284,907,213 Growth Investment Division 2011 14,031,031 15.25 - 20.73 265,121,409 2010 14,000,629 15.22 - 20.54 264,120,256 2009 12,978,831 11.44 - 15.33 184,207,700 2008 13,211,532 8.98 - 11.11 136,853,170 MSF Van Eck Global Natural 2012 2,611,674 15.22 - 15.80 41,078,664 Resources Investment Division 2011 2,291,756 15.14 - 15.58 35,583,743 (Commenced 5/4/2009) 2010 1,309,383 18.55 - 18.92 24,700,698 2009 379,256 14.68 - 14.83 5,613,926 MSF Western Asset 2012 10,345,790 3.08 - 34.39 254,116,128 Management Strategic Bond 2011 11,333,345 2.80 - 31.05 248,899,097 Opportunities Investment 2010 13,288,962 2.67 - 29.49 275,410,258 Division 2009 13,614,452 2.40 - 26.35 251,254,370 2008 15,406,849 1.84 - 20.08 206,957,543 MSF Western Asset 2012 13,148,516 1.93 - 21.59 229,960,732 Management U.S. Government 2011 14,053,184 1.90 - 21.05 235,422,481 Investment Division 2010 15,023,442 1.82 - 20.10 239,870,128 2009 14,375,216 1.75 - 19.15 216,669,959 2008 13,590,779 1.69 - 18.49 192,871,484 MSF Zenith Equity 2012 2,657,120 23.93 63,578,072 Investment Division 2011 3,127,103 21.27 66,504,213 2010 3,651,183 22.31 81,465,443 2009 4,320,085 19.81 85,598,366 2008 5,123,370 15.40 78,903,521 FOR THE YEAR ENDED DECEMBER 31 --------------------------------------------------- INVESTMENT(1) EXPENSE RATIO(2) TOTAL RETURN(3) INCOME LOWEST TO LOWEST TO RATIO (%) HIGHEST (%) HIGHEST (%) ------------- ---------------- ----------------- MSF T. Rowe Price Small Cap 2012 -- 0.50 - 2.30 13.26 - 15.42 Growth Investment Division 2011 -- 0.50 - 2.30 (0.86) - 1.11 2010 -- 0.50 - 2.30 31.60 - 34.02 2009 0.27 0.50 - 2.30 35.49 - 38.07 2008 -- 0.50 - 2.30 (37.77) - (36.66) MSF Van Eck Global Natural 2012 -- 1.15 - 2.05 0.49 - 1.40 Resources Investment Division 2011 1.07 1.15 - 2.05 (18.36) - (17.63) (Commenced 5/4/2009) 2010 0.23 1.15 - 2.05 26.41 - 27.55 2009 -- 1.15 - 2.05 35.13 - 35.96 MSF Western Asset 2012 3.49 0.50 - 2.30 8.75 - 10.77 Management Strategic Bond 2011 5.01 0.50 - 2.30 3.43 - 5.45 Opportunities Investment 2010 5.95 0.50 - 2.30 9.90 - 12.00 Division 2009 6.51 0.50 - 2.30 28.90 - 31.36 2008 4.04 0.50 - 2.30 (15.98) - (15.67) MSF Western Asset 2012 1.92 0.50 - 2.30 0.69 - 2.70 Management U.S. Government 2011 1.33 0.50 - 2.30 2.88 - 4.83 Investment Division 2010 2.49 0.50 - 2.30 3.09 - 5.12 2009 4.26 0.50 - 2.30 1.71 - 3.56 2008 4.26 0.50 - 2.30 (1.74) - (1.02) MSF Zenith Equity 2012 0.92 1.35 12.51 Investment Division 2011 1.06 1.35 (4.68) 2010 1.61 1.35 12.61 2009 5.89 1.35 28.65 2008 2.74 1.35 (39.35)
1 These amounts represent the dividends, excluding distributions of capital gains, received by the Investment Division from the underlying fund, series, or portfolio, net of management fees assessed by the fund manager, divided by the average net assets, regardless of share class, if any. These ratios exclude those expenses, such as mortality and expense risk charges, that are assessed against 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 Investment Division is affected by the timing of the declaration of dividends by the underlying fund, series, or portfolio in which the Investment Division invests. The investment income ratio is calculated as a weighted average ratio since the Investment Division may invest in two or more share classes, within the underlying fund, series, or portfolio of the Trusts which may have unique investment income ratios. 2 These amounts represent annualized contract expenses of each of the applicable Investment Divisions, consisting primarily of mortality and expense risk charges, for each period indicated. The ratios include only those expenses that result in a direct reduction to unit values. Charges made directly to contract owner accounts through the redemption of units and expenses of the underlying fund, series, or portfolio have been excluded. 3 These amounts represent the total return for the period indicated, including changes in the value of the underlying fund, series, or portfolio, and expenses assessed through the reduction of unit values. These ratios do not include any expenses assessed through the redemption of units. The total return is calculated for each period indicated or from the effective date through the end of the reporting period. The total return is presented as a range of minimum to maximum returns, based on the minimum and maximum returns within each product grouping of the applicable Investment Division. 93 This page is intentionally left blank. INDEPENDENT AUDITORS' REPORT To the Board of Directors and Stockholder of Metropolitan Life Insurance Company: We have audited the accompanying consolidated financial statements of Metropolitan Life Insurance Company and its subsidiaries (the "Company"), which comprise the consolidated balance sheets as of December 31, 2012 and 2011, and the related consolidated statements of operations, comprehensive income, equity, and cash flows for each of the three years in the period ended December 31, 2012, and the related notes to the consolidated financial statements. Management's Responsibility for the Consolidated Financial Statements Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of consolidated financial statements that are free from material misstatement, whether due to fraud or error. Auditors' Responsibility Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company's preparation and fair presentation of the consolidated financial statements in order to design 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. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of Metropolitan Life Insurance Company and its subsidiaries as of December 31, 2012 and 2011, and the results of their operations and their cash flows for each of the three years in the period ended December 31, 2012, in accordance with accounting principles generally accepted in the United States of America. Emphasis of Matter As discussed in Note 1, the Company changed its method of accounting for deferred policy acquisition costs as required by accounting guidance adopted on January 1, 2012. In addition, as discussed in Note 2, the Company reorganized its segments in 2012. Our opinion is not modified with respect to these matters. /s/ DELOITTE & TOUCHE LLP DELOITTE & TOUCHE LLP New York, New York April 2, 2013 F-1 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Consolidated Balance Sheets December 31, 2012 and 20110 (In millions, except share and per share data)
2012 2011 ------------ ------------ Assets Investments: Fixed maturity securities available-for-sale, at estimated fair value (amortized cost: $164,757 and $154,376, respectively; includes $170 and $0, respectively, relating to variable interest entities).................................................................. $ 183,676 $ 168,178 Equity securities available-for-sale, at estimated fair value (cost: $1,541 and $1,379, respectively)................................................................................ 1,499 1,278 Trading and fair value option securities, at estimated fair value (includes $659 and $473, respectively, of actively traded securities; and $41 and $117, respectively, relating to variable interest entities).................................................................. 752 697 Mortgage loans (net of valuation allowances of $304 and $393, respectively).................... 44,657 43,880 Policy loans................................................................................... 8,364 8,314 Real estate and real estate joint ventures (includes $10 and $15, respectively, relating to variable interest entities).................................................................. 6,837 5,891 Other limited partnership interests (includes $165 and $152, respectively, relating to variable interest entities).................................................................. 4,508 4,334 Short-term investments, principally at estimated fair value.................................... 6,881 6,140 Other invested assets, principally at estimated fair value (includes $81 and $98, respectively, relating to variable interest entities)........................................ 12,479 12,478 ------------ ------------ Total investments............................................................................ 269,653 251,190 Cash and cash equivalents, principally at estimated fair value (includes $31 and $70, respectively, relating to variable interest entities).......................................... 1,401 2,089 Accrued investment income (includes $2 and $1, respectively, relating to variable interest entities)...................................................................................... 2,242 2,219 Premiums, reinsurance and other receivables (includes $4 and $10, respectively, relating to variable interest entities).................................................................... 24,721 27,981 Deferred policy acquisition costs and value of business acquired................................ 5,832 6,341 Other assets (includes $4 and $4, respectively, relating to variable interest entities)......... 4,444 4,233 Separate account assets......................................................................... 120,971 106,678 ------------ ------------ Total assets................................................................................. $ 429,264 $ 400,731 ============ ============ Liabilities and Equity Liabilities Future policy benefits.......................................................................... $ 113,986 $ 109,333 Policyholder account balances................................................................... 94,716 88,856 Other policy-related balances................................................................... 5,663 5,876 Policyholder dividends payable.................................................................. 610 659 Policyholder dividend obligation................................................................ 3,828 2,919 Payables for collateral under securities loaned and other transactions.......................... 22,461 20,280 Short-term debt................................................................................. 100 101 Long-term debt (includes $124 and $116, respectively, at estimated fair value, relating to variable interest entities).................................................................... 2,345 2,248 Current income tax payable...................................................................... 161 123 Deferred income tax liability (includes $2 and $0, respectively, at estimated fair value, relating to variable interest entities)........................................................ 3,036 2,324 Other liabilities (includes $22 and $42, respectively, relating to variable interest entities).. 33,941 36,614 Separate account liabilities.................................................................... 120,971 106,678 ------------ ------------ Total liabilities............................................................................ 401,818 376,011 ------------ ------------ Contingencies, Commitments and Guarantees (Note 17) Equity Metropolitan Life Insurance Company stockholder's equity: Common stock, par value $0.01 per share; 1,000,000,000 shares authorized; 494,466,664 shares issued and outstanding at December 31, 2012 and 2011......................................... 5 5 Additional paid-in capital..................................................................... 14,510 14,506 Retained earnings.............................................................................. 8,631 6,973 Accumulated other comprehensive income (loss).................................................. 4,008 3,054 ------------ ------------ Total Metropolitan Life Insurance Company stockholder's equity............................... 27,154 24,538 Noncontrolling interests........................................................................ 292 182 ------------ ------------ Total equity................................................................................. 27,446 24,720 ------------ ------------ Total liabilities and equity................................................................. $ 429,264 $ 400,731 ============ ============
See accompanying notes to the consolidated financial statements. F-2 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Consolidated Statements of Operations For the Years Ended December 31, 2012, 2011 and 2010 (In millions)
2012 2011 2010 ---------- ---------- ---------- Revenues Premiums............................................................. $ 19,880 $ 18,288 $ 18,519 Universal life and investment-type product policy fees............... 2,239 2,202 2,075 Net investment income................................................ 11,852 11,615 11,581 Other revenues....................................................... 1,730 1,808 1,725 Net investment gains (losses): Other-than-temporary impairments on fixed maturity securities....... (214) (244) (510) Other-than-temporary impairments on fixed maturity securities transferred to other comprehensive income (loss).................. 22 17 150 Other net investment gains (losses)................................. (138) 359 190 ---------- ---------- ---------- Total net investment gains (losses)............................... (330) 132 (170) Net derivative gains (losses)....................................... 675 1,578 (266) ---------- ---------- ---------- Total revenues.................................................. 36,046 35,623 33,464 ---------- ---------- ---------- Expenses Policyholder benefits and claims..................................... 22,269 20,681 20,707 Interest credited to policyholder account balances................... 2,390 2,372 2,523 Policyholder dividends............................................... 1,295 1,355 1,443 Other expenses....................................................... 6,394 6,471 6,282 ---------- ---------- ---------- Total expenses.................................................. 32,348 30,879 30,955 ---------- ---------- ---------- Income (loss) from continuing operations before provision for income tax................................................................ 3,698 4,744 2,509 Provision for income tax expense (benefit)........................... 1,055 1,460 769 ---------- ---------- ---------- Income (loss) from continuing operations, net of income tax.......... 2,643 3,284 1,740 Income (loss) from discontinued operations, net of income tax........ 40 61 31 ---------- ---------- ---------- Net income (loss)................................................... 2,683 3,345 1,771 Less: Net income (loss) attributable to noncontrolling interests..... 2 (8) (3) ---------- ---------- ---------- Net income (loss) attributable to Metropolitan Life Insurance Company............................................................ $ 2,681 $ 3,353 $ 1,774 ========== ========== ==========
See accompanying notes to the consolidated financial statements. F-3 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Consolidated Statements of Comprehensive Income For the Years Ended December 31, 2012, 2011 and 2010 (In millions)
2012 2011 2010 ---------- ---------- ---------- Net income (loss) attributable to Metropolitan Life Insurance Company.......................................................... $ 2,681 $ 3,353 $ 1,774 Net income (loss) attributable to noncontrolling interests......... 2 (8) (3) ---------- ---------- ---------- Net income (loss).................................................. 2,683 3,345 1,771 Other comprehensive income (loss): Unrealized investment gains (losses), net of related offsets...... 2,502 2,567 4,470 Unrealized gains (losses) on derivatives.......................... (241) 1,203 182 Foreign currency translation adjustments.......................... (30) 6 (29) Defined benefit plans adjustment.................................. (766) (671) 161 ---------- ---------- ---------- Other comprehensive income (loss), before income tax.............. 1,465 3,105 4,784 Income tax (expense) benefit related to items of other comprehensive income (loss)..................................... (511) (1,074) (1,676) ---------- ---------- ---------- Other comprehensive income (loss), net of income tax.............. 954 2,031 3,108 ---------- ---------- ---------- Comprehensive income (loss)........................................ 3,637 5,376 4,879 Less: Comprehensive income (loss) attributable to noncontrolling interest, net of income tax...................................... 2 (8) 3 ---------- ---------- ---------- Comprehensive income (loss) attributable to Metropolitan Life Insurance Company, excluding cumulative effect of change in accounting principle............................................. 3,635 5,384 4,876 Cumulative effect of change in accounting principle, net of income tax.............................................................. -- -- 10 ---------- ---------- ---------- Comprehensive income (loss) attributable to Metropolitan Life Insurance Company................................................ $ 3,635 $ 5,384 $ 4,886 ========== ========== ==========
See accompanying notes to the consolidated financial statements. F-4 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Consolidated Statements of Equity For the Year Ended December 31, 2012 (In millions)
Additional Common Paid-in Retained Stock Capital Earnings ------- ----------- ---------- Balance at December 31, 2011............... $ 5 $ 14,506 $ 6,973 Capital contributions from MetLife, Inc. (Note 13)................................. 3 Excess tax benefits related to stock-based compensation.............................. 1 Dividends on common stock.................. (1,023) Change in equity of noncontrolling interests................................. Net income (loss).......................... 2,681 Other comprehensive income (loss), net of income tax............................. -------- ----------- ---------- Balance at December 31, 2012............... $ 5 $ 14,510 $ 8,631 ======== =========== ==========
Accumulated Other Comprehensive Income (Loss) -------------------------------------------------------- Net Foreign Defined Total Unrealized Other-Than- Currency Benefit Metropolitan Life Investment Temporary Translation Plans Insurance Company Gains (Losses) Impairments Adjustments Adjustment Stockholder's Equity --------------- ------------ ------------ -------------- --------------------- Balance at December 31, 2011............... $ 5,185 $ (317) $ 37 $ (1,851) $ 24,538 Capital contributions from MetLife, Inc. (Note 13)................................. 3 Excess tax benefits related to stock-based compensation.............................. 1 Dividends on common stock.................. (1,023) Change in equity of noncontrolling interests................................. Net income (loss).......................... 2,681 Other comprehensive income (loss), net of income tax............................. 1,312 159 (19) (498) 954 --------------- ------------ ------------ -------------- --------------------- Balance at December 31, 2012............... $ 6,497 $ (158) $ 18 $ (2,349) $ 27,154 =============== ============ ============ ============== =====================
Noncontrolling Total Interests Equity --------------- ----------- Balance at December 31, 2011............... $ 182 $ 24,720 Capital contributions from MetLife, Inc. (Note 13)................................. 3 Excess tax benefits related to stock-based compensation.............................. 1 Dividends on common stock.................. (1,023) Change in equity of noncontrolling interests................................. 108 108 Net income (loss).......................... 2 2,683 Other comprehensive income (loss), net of income tax............................. 954 --------------- ----------- Balance at December 31, 2012............... $ 292 $ 27,446 =============== ===========
See accompanying notes to the consolidated financial statements. F-5 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Consolidated Statements of Equity -- (Continued) For the Year Ended December 31, 2011 (In millions)
Common Additional Retained Stock Paid-in Capital Earnings ------- --------------- --------- Balance at December 31, 2010......... $ 5 $ 14,445 $ 4,941 Capital contributions from MetLife, Inc. (Note 13)...................... 50 Excess tax benefits related to stock- based compensation.................. 11 Dividends on common stock............ (1,321) Change in equity of noncontrolling interests........................... Net income (loss).................... 3,353 Other comprehensive income (loss), net of income tax................... ---------- --------------- --------- Balance at December 31, 2011......... $ 5 $ 14,506 $ 6,973 ========== =============== =========
Accumulated Other Comprehensive Income (Loss) ---------------------------------------------------------- Net Foreign Defined Total Unrealized Other-Than- Currency Benefit Metropolitan Life Investment Temporary Translation Plans Insurance Company Gains (Losses) Impairments Adjustments Adjustment Stockholder's Equity --------------- ------------ ------------ ---------------- --------------------- Balance at December 31, 2010......... $ 2,672 $ (254) $ 34 $ (1,429) $ 20,414 Capital contributions from MetLife, Inc. (Note 13)...................... 50 Excess tax benefits related to stock- based compensation.................. 11 Dividends on common stock............ (1,321) Change in equity of noncontrolling interests........................... Net income (loss).................... 3,353 Other comprehensive income (loss), net of income tax................... 2,513 (63) 3 (422) 2,031 --------------- ------------ ------------ ---------------- --------------------- Balance at December 31, 2011......... $ 5,185 $ (317) $ 37 $ (1,851) $ 24,538 =============== ============ ============ ================ =====================
Noncontrolling Total Interests Equity --------------- ----------- Balance at December 31, 2010......... $ 148 $ 20,562 Capital contributions from MetLife, Inc. (Note 13)...................... 50 Excess tax benefits related to stock- based compensation.................. 11 Dividends on common stock............ (1,321) Change in equity of noncontrolling interests........................... 42 42 Net income (loss).................... (8) 3,345 Other comprehensive income (loss), net of income tax................... 2,031 --------------- ----------- Balance at December 31, 2011......... $ 182 $ 24,720 =============== ===========
See accompanying notes to the consolidated financial statements. F-6 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Consolidated Statements of Equity -- (Continued) For the Year Ended December 31, 2010 (In millions)
Additional Common Paid-in Retained Stock Capital Earnings ------- ----------- ---------- Balance at December 31, 2009............... $ 5 $ 14,438 $ 4,817 Cumulative effect of change in accounting principle, net of income tax (Note 1)..... (1,009) -------- ----------- ---------- Balance at January 1, 2010................. 5 14,438 3,808 Cumulative effect of change in accounting principle, net of income tax (Note 1)..... (10) Capital contributions from MetLife, Inc. (Note 13)................................. 3 Excess tax benefits related to stock-based compensation.............................. 4 Dividends on common stock.................. (631) Change in equity of noncontrolling interests................................. Net income (loss).......................... 1,774 Other comprehensive income (loss), net of income tax................................ -------- ----------- ---------- Balance at December 31, 2010............... $ 5 $ 14,445 $ 4,941 ======== =========== ==========
Accumulated Other Comprehensive Income (Loss) ------------------------------------------------------ Net Foreign Defined Total Unrealized Other-Than- Currency Benefit Metropolitan Life Investment Temporary Translation Plans Insurance Company Gains (Losses) Impairments Adjustments Adjustment Stockholder's Equity --------------- ------------ ------------ ------------ --------------------- Balance at December 31, 2009............... $ (265) $ (341) $ 51 $ (1,527) $ 17,178 Cumulative effect of change in accounting principle, net of income tax (Note 1)..... (6) (1) (1,016) ---------- ---------- ----------- ------------ --------------- Balance at January 1, 2010................. (271) (341) 50 (1,527) 16,162 Cumulative effect of change in accounting principle, net of income tax (Note 1)..... 10 -- Capital contributions from MetLife, Inc. (Note 13)................................. 3 Excess tax benefits related to stock-based compensation.............................. 4 Dividends on common stock.................. (631) Change in equity of noncontrolling interests................................. Net income (loss).......................... 1,774 Other comprehensive income (loss), net of income tax................................ 2,933 87 (16) 98 3,102 --------------- ------------ ------------ ------------ --------------------- Balance at December 31, 2010............... $ 2,672 $ (254) $ 34 $ (1,429) $ 20,414 =============== ============ ============ ============ =====================
Noncontrolling Total Interests Equity --------------- --------- Balance at December 31, 2009............... $ 291 $ 17,469 Cumulative effect of change in accounting principle, net of income tax (Note 1)..... (1,016) ------------ --------- Balance at January 1, 2010................. 291 16,453 Cumulative effect of change in accounting principle, net of income tax (Note 1)..... -- Capital contributions from MetLife, Inc. (Note 13)................................. 3 Excess tax benefits related to stock-based compensation.............................. 4 Dividends on common stock.................. (631) Change in equity of noncontrolling interests................................. (146) (146) Net income (loss).......................... (3) 1,771 Other comprehensive income (loss), net of income tax................................ 6 3,108 --------------- --------- Balance at December 31, 2010............... $ 148 $ 20,562 =============== =========
See accompanying notes to the consolidated financial statements. F-7 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Consolidated Statements of Cash Flows For the Years Ended December 31, 2012, 2011 and 2010 (In millions)
2012 2011 2010 ----------- ---------- ---------- Cash flows from operating activities Net income (loss)........................................................................ $ 2,683 $ 3,345 $ 1,771 Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation and amortization expenses................................................. 416 407 394 Amortization of premiums and accretion of discounts associated with investments, net... (698) (683) (709) (Gains) losses on investments and derivatives and from sales of businesses, net........ (188) (1,735) 380 (Income) loss from equity method investments, net of dividends or distributions........ 42 269 116 Interest credited to policyholder account balances..................................... 2,390 2,372 2,523 Universal life and investment-type product policy fees................................. (2,239) (2,202) (2,075) Change in trading and fair value option securities..................................... (100) 20 (14) Change in accrued investment income.................................................... 22 14 (117) Change in premiums, reinsurance and other receivables.................................. (422) (208) (377) Change in deferred policy acquisition costs and value of business acquired, net........ 359 150 169 Change in income tax................................................................... (28) 527 727 Change in other assets................................................................. 361 767 283 Change in insurance-related liabilities and policy-related balances.................... 1,915 2,587 2,469 Change in other liabilities............................................................ 170 726 684 Other, net............................................................................. (147) (125) (120) ----------- ---------- ---------- Net cash provided by operating activities................................................ 4,536 6,231 6,104 ----------- ---------- ---------- Cash flows from investing activities Sales, maturities and repayments of: Fixed maturity securities............................................................. 52,889 53,325 49,828 Equity securities..................................................................... 245 816 520 Mortgage loans........................................................................ 8,668 8,152 4,853 Real estate and real estate joint ventures............................................ 721 1,058 241 Other limited partnership interests................................................... 585 754 383 Purchases of: Fixed maturity securities............................................................. (62,136) (54,038) (57,961) Equity securities..................................................................... (393) (278) (157) Mortgage loans........................................................................ (9,448) (10,443) (5,820) Real estate and real estate joint ventures............................................ (1,447) (980) (539) Other limited partnership interests................................................... (660) (658) (614) Cash received in connection with freestanding derivatives.............................. 634 1,011 712 Cash paid in connection with freestanding derivatives.................................. (443) (695) (920) Issuances of loans to affiliates....................................................... -- (525) -- Net change in policy loans............................................................. (50) (44) (171) Net change in short-term investments................................................... (567) (3,816) 841 Net change in other invested assets.................................................... (791) (562) 149 Net change in property, equipment and leasehold improvements........................... (71) (104) (138) Other, net............................................................................. -- 7 (7) ----------- ---------- ---------- Net cash used in investing activities.................................................... $ (12,264) $ (7,020) $ (8,800) ----------- ---------- ----------
See accompanying notes to the consolidated financial statements. F-8 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Consolidated Statements of Cash Flows -- (Continued) For the Years Ended December 31, 2012, 2011 and 2010 (In millions)
2012 2011 2010 ----------- ----------- ----------- Cash flows from financing activities Policyholder account balances: Deposits............................................................................ $ 61,647 $ 55,586 $ 44,481 Withdrawals......................................................................... (56,373) (57,078) (43,381) Net change in payables for collateral under securities loaned and other transactions. 2,181 3,266 2,352 Net change in short-term debt........................................................ (1) (1) (217) Long-term debt issued................................................................ 79 110 188 Long-term debt repaid................................................................ (81) (1,411) (324) Dividends on common stock............................................................ (1,023) (1,151) (232) Capital contribution................................................................. -- 47 -- Other, net........................................................................... 611 25 (33) ----------- ----------- ----------- Net cash provided by (used in) financing activities.................................... 7,040 (607) 2,834 ----------- ----------- ----------- Change in cash and cash equivalents.................................................... (688) (1,396) 138 Cash and cash equivalents, beginning of year........................................... 2,089 3,485 3,347 ----------- ----------- ----------- Cash and cash equivalents, end of year................................................. $ 1,401 $ 2,089 $ 3,485 =========== =========== =========== Supplemental disclosures of cash flow information: Net cash paid for: Interest............................................................................ $ 151 $ 196 $ 217 =========== =========== =========== Income tax.......................................................................... $ 842 $ 701 $ 183 =========== =========== =========== Non-cash transactions: Purchase money mortgage loans on sales of real estate joint ventures................ $ -- $ -- $ 2 =========== =========== =========== Capital contributions from MetLife, Inc............................................. $ 3 $ 3 $ 3 =========== =========== =========== Dividends to MetLife, Inc........................................................... $ -- $ 170 $ 399 =========== =========== =========== Real estate and real estate joint ventures acquired in satisfaction of debt......... $ 264 $ 151 $ 58 =========== =========== ===========
See accompanying notes to the consolidated financial statements. F-9 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements 1. Business, Basis of Presentation and Summary of Significant Accounting Policies Business Metropolitan Life Insurance Company and its subsidiaries (collectively, "MLIC" or the "Company") is a leading provider of insurance, annuities and employee benefit programs throughout the United States. The Company offers life insurance and annuities to individuals, as well as group insurance and retirement & savings products and services to corporations and other institutions. Metropolitan Life Insurance Company is a wholly-owned subsidiary of MetLife, Inc. The Company is organized into three segments: Retail; Group, Voluntary & Worksite Benefits; and Corporate Benefit Funding. See Note 2 for information on the reorganization of the Company's segments during 2012, which were retrospectively applied. Basis of Presentation The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires management to adopt accounting policies and make estimates and assumptions that affect amounts reported in the consolidated financial statements. In applying these policies and estimates, management makes subjective and complex judgments that frequently require assumptions about matters that are inherently uncertain. Many of these policies, estimates and related judgments are common in the insurance and financial services industries; others are specific to the Company's business and operations. Actual results could differ from estimates. Consolidation The accompanying consolidated financial statements include the accounts of Metropolitan Life Insurance Company and its subsidiaries, as well as partnerships and joint ventures in which the Company has control, and variable interest entities ("VIEs") for which the Company is the primary beneficiary. Intercompany accounts and transactions have been eliminated. Since the Company is a member of a controlled group of affiliated companies, its results may not be indicative of those of a stand-alone entity. Discontinued Operations The results of operations of a component of the Company that has either been disposed of or is classified as held-for-sale are reported in discontinued operations if certain criteria are met. In order to qualify for a discontinued operation, the operations and cash flows of the component have been or will be eliminated from the ongoing operations of the Company, and the Company will not have any significant continuing involvement in the operations of the component after the disposal transaction. 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 F-10 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) reports separately, as assets and liabilities, investments held in separate accounts and liabilities of the separate accounts if: . such separate accounts are legally recognized; . assets supporting the contract liabilities are legally insulated from the Company's general account liabilities; . investments are directed by the contractholder; and . all investment performance, net of contract fees and assessments, is passed through to the contractholder. The Company reports separate account assets at their fair value, which is based on the estimated fair values of the underlying assets comprising the individual separate account portfolios. Investment performance (including investment income, net investment gains (losses) and changes in unrealized gains (losses)) and the corresponding amounts credited to contractholders of such separate accounts are offset within the same line in the consolidated statements of operations. Separate accounts credited with a contractual investment return are combined on a line-by-line basis with the Company's general account assets, liabilities, revenues and expenses and the accounting for these investments is consistent with the methodologies described herein for similar financial instruments held within the general account. The Company's revenues reflect fees charged to the separate accounts, including mortality charges, risk charges, policy administration fees, investment management fees and surrender charges. Such fees are included in universal life and investment-type product policy fees in the consolidated statements of operations. Reclassifications Certain amounts in the prior years' consolidated financial statements and related footnotes thereto have been reclassified to conform with the current year presentation as discussed throughout the Notes to the Consolidated Financial Statements. See "-- Adoption of New Accounting Pronouncements" for discussion of accounting pronouncements adopted in 2012, which were retrospectively applied. Summary of Significant Accounting Policies The following are the Company's significant accounting policies with references to notes providing additional information on such policies and critical accounting estimates relating to such policies. -------------------------------------------------------------------------------------------------------- Accounting Policy Note -------------------------------------------------------------------------------------------------------- Insurance 4 -------------------------------------------------------------------------------------------------------- Deferred Policy Acquisition Costs, Value of Business Acquired and Other Policy-Related Intangibles 5 -------------------------------------------------------------------------------------------------------- Reinsurance 6 -------------------------------------------------------------------------------------------------------- Investments 8 -------------------------------------------------------------------------------------------------------- Derivatives 9 -------------------------------------------------------------------------------------------------------- Fair Value 10 -------------------------------------------------------------------------------------------------------- Goodwill 11 -------------------------------------------------------------------------------------------------------- Employee Benefit Plans 15 -------------------------------------------------------------------------------------------------------- Income Tax 16 -------------------------------------------------------------------------------------------------------- Litigation Contingencies 17 --------------------------------------------------------------------------------------------------------
F-11 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) Insurance Future Policy Benefit Liabilities and Policyholder Account Balances The Company establishes liabilities for amounts payable under insurance policies. Generally, amounts are payable over an extended period of time and related liabilities are calculated as the present value of future expected benefits to be paid reduced by the present value of future expected premiums. Such liabilities are established based on methods and underlying assumptions in accordance with GAAP and applicable actuarial standards. Principal assumptions used in the establishment of liabilities for future policy benefits are mortality, morbidity, policy lapse, renewal, retirement, disability incidence, disability terminations, investment returns, inflation, expenses and other contingent events as appropriate to the respective product type. These assumptions are established at the time the policy is issued and are intended to estimate the experience for the period the policy benefits are payable. Utilizing these assumptions, liabilities are established on a block of business basis. For long duration insurance contracts, assumptions such as mortality, morbidity and interest rates are "locked in" upon the issuance of new business. However, significant adverse changes in experience on such contracts may require the establishment of premium deficiency reserves. Such reserves are determined based on the then current assumptions and do not include a provision for adverse deviation. Premium deficiency reserves may also be established for short duration contracts to provide for expected future losses. These reserves are based on actuarial estimates of the amount of loss inherent in that period, including losses incurred for which claims have not been reported. The provisions for unreported claims are calculated using studies that measure the historical length of time between the incurred date of a claim and its eventual reporting to the Company. Anticipated investment income is considered in the calculation of premium deficiency losses for short duration contracts. Liabilities for universal and variable life secondary guarantees and paid-up guarantees are determined by estimating the expected value of death benefits payable when the account balance is projected to be zero and recognizing those benefits ratably over the accumulation period based on total expected assessments. The assumptions used in estimating the secondary and paid-up guarantee liabilities are consistent with those used for amortizing deferred policy acquisition costs ("DAC"), and are thus subject to the same variability and risk as further discussed herein. The assumptions of investment performance and volatility for variable products are consistent with historical experience of appropriate underlying equity indices, such as the Standard & Poor's Ratings Services ("S&P") 500 Index. The benefits used in calculating the liabilities are based on the average benefits payable over a range of scenarios. The Company regularly reviews its estimates of liabilities for future policy benefits and compares them with its actual experience. Differences result in changes to the liability balances with related charges or credits to benefit expenses in the period in which the changes occur. Policyholder account balances ("PABs") relate to contract or contract features where the Company has no significant insurance risk. The Company issues certain variable annuity products with guaranteed minimum benefits that provide the policyholder a minimum return based on their initial deposit (i.e., the benefit base) less withdrawals. These guarantees are accounted for as insurance liabilities or as embedded derivatives depending on how and when the benefit is paid. Specifically, a guarantee is accounted for as an embedded derivative if a guarantee is paid without requiring (i) the occurrence of specific insurable event, or (ii) the policyholder to annuitize. Alternatively, a guarantee is accounted for as an insurance liability if the guarantee is paid only upon either (i) the occurrence of a F-12 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) specific insurable event, or (ii) annuitization. In certain cases, a guarantee may have elements of both an insurance liability and an embedded derivative and in such cases the guarantee is split and accounted for under both models. Guarantees accounted for as insurance liabilities in future policy benefits include guaranteed minimum death benefits ("GMDBs"), the portion of guaranteed minimum income benefits ("GMIBs") that require annuitization, and the life-contingent portion of guaranteed minimum withdrawal benefits ("GMWBs"). Guarantees accounted for as embedded derivatives in PABs include the non life-contingent portion of GMWB, guaranteed minimum accumulation benefits ("GMABs") and the portion of GMIB that do not require annuitization. At inception, the Company attributes to the embedded derivative a portion of the projected future guarantee fees to be collected from the policyholder equal to the present value of projected future guaranteed benefits. Any additional fees represent "excess" fees and are reported in universal life and investment-type product policy fees. Other Policy-Related Balances Other policy-related balances include policy and contract claims, unearned revenue liabilities, premiums received in advance, policyholder dividends due and unpaid and policyholder dividends left on deposit. The liability for policy and contract claims generally relates to incurred but not reported death, disability, long-term care ("LTC") and dental claims, as well as claims which have been reported but not yet settled. The liability for these claims is based on the Company's estimated ultimate cost of settling all claims. The Company derives estimates for the development of incurred but not reported claims principally from analyses of historical patterns of claims by business line. The methods used to determine these estimates are continually reviewed. Adjustments resulting from this continuous review process and differences between estimates and payments for claims are recognized in policyholder benefits and claims expense in the period in which the estimates are changed or payments are made. The unearned revenue liability relates to universal life-type and investment-type products and represents policy charges for services to be provided in future periods. The charges are deferred as unearned revenue and amortized using the product's estimated gross profits and margins, similar to DAC as discussed further herein. Such amortization is recorded in universal life and investment-type product policy fees. The Company accounts for the prepayment of premiums on its individual life, group life and health contracts as premium received in advance and applies the cash received to premiums when due. Recognition of Insurance Revenues and Deposits Premiums related to traditional life and annuity policies with life contingencies are recognized as revenues when due from policyholders. Policyholder benefits and expenses are provided to recognize profits over the estimated lives of the insurance policies. When premiums are due over a significantly shorter period than the period over which benefits are provided, any excess profit is deferred and recognized into earnings in a constant relationship to insurance in-force or, for annuities, the amount of expected future policy benefit payments. Premiums related to non-medical health and disability contracts are recognized on a pro rata basis over the applicable contract term. F-13 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) Deposits related to universal life-type and investment-type products are credited to PABs. Revenues from such contracts consist of fees for mortality, policy administration and surrender charges and are recorded in universal life and investment-type product policy fees in the period in which services are provided. Amounts that are charged to earnings include interest credited and benefit claims incurred in excess of related PABs. Premiums, policy fees, policyholder benefits and expenses are presented net of reinsurance. Deferred Policy Acquisition Costs, Value of Business Acquired and Other Policy-Related Intangibles The Company incurs significant costs in connection with acquiring new and renewal insurance business. Costs that are related directly to the successful acquisition or renewal of insurance contracts are capitalized as DAC. Such costs include: . incremental direct costs of contract acquisition, such as commissions; . the portion of an employee's total compensation and benefits related to time spent selling, underwriting or processing the issuance of new and renewal insurance business only with respect to actual policies acquired or renewed; and . other essential direct costs that would not have been incurred had a policy not been acquired or renewed. All other acquisition-related costs, including those related to general advertising and solicitation, market research, agent training, product development, unsuccessful sales and underwriting efforts, as well as all indirect costs, are expensed as incurred. Value of business acquired ("VOBA") is an intangible asset resulting from a business combination that represents the excess of book value over the estimated fair value of acquired insurance, annuity, and investment-type contracts in-force at the acquisition date. The estimated fair value of the acquired liabilities is based on projections, by each block of business, of future policy and contract charges, premiums, mortality and morbidity, separate account performance, surrenders, operating expenses, investment returns, nonperformance risk adjustment and other factors. Actual experience on the purchased business may vary from these projections. DAC and VOBA are amortized as follows: ----------------------------------------------------------------------------- Products: In proportion to the following over estimated lives of the contracts: ----------------------------------------------------------------------------- . Non-participating and Historic actual and expected future non-dividend-paying traditional gross premiums. contracts: . Term insurance . Non-participating whole life insurance . Traditional group life insurance . Non-medical health insurance ----------------------------------------------------------------------------- . Participating, dividend-paying Actual and expected future gross traditional contracts margins. ----------------------------------------------------------------------------- . Fixed and variable universal life Actual and expected future gross contracts profits. . Fixed and variable deferred annuity contracts ----------------------------------------------------------------------------- F-14 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) See Note 5 for additional information on DAC and VOBA amortization. The recovery of DAC and VOBA is dependent upon the future profitability of the related business. DAC and VOBA are aggregated in the consolidated financial statements for reporting purposes. The Company generally has two different types of sales inducements which are included in other assets: (i) the policyholder receives a bonus whereby the policyholder's initial account balance is increased by an amount equal to a specified percentage of the customer's deposit; and (ii) the policyholder receives a higher interest rate using a dollar cost averaging method than would have been received based on the normal general account interest rate credited. The Company defers sales inducements and amortizes them over the life of the policy using the same methodology and assumptions used to amortize DAC. The amortization of sales inducements is included in policyholder benefits and claims. Each year, or more frequently if circumstances indicate a potential recoverability issue exists, the Company reviews deferred sales inducements to determine the recoverability of the asset. Value of distribution agreements acquired ("VODA") is reported in other assets and represents the present value of expected future profits associated with the expected future business derived from the distribution agreements acquired as part of a business combination. Value of customer relationships acquired ("VOCRA") is also reported in other assets and represents the present value of the expected future profits associated with the expected future business acquired through existing customers of the acquired company or business. The VODA and VOCRA associated with past business combinations are amortized over useful lives ranging from 10 to 30 years and such amortization is included in other expenses. Each year, or more frequently if circumstances indicate a possible impairment exists, the Company reviews VODA and VOCRA to determine whether the asset is impaired. Reinsurance For each of its reinsurance agreements, the Company determines whether the agreement provides indemnification against loss or liability relating to insurance risk in accordance with applicable accounting standards. Cessions under reinsurance agreements do not discharge the Company's obligations as the primary insurer. The Company reviews all contractual features, 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 reinsurance agreement. 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. For prospective reinsurance of short-duration contracts that meet the criteria for reinsurance accounting, amounts paid (received) are recorded as ceded (assumed) premiums and ceded (assumed) unearned premiums and are reflected as a component of premiums, reinsurance and other receivables (future policy benefits). Such amounts are amortized through earned premiums over the remaining contract period in proportion to the amount of insurance protection provided. For retroactive reinsurance of short-duration contracts that meet the criteria of reinsurance accounting, amounts paid (received) in excess of the related insurance liabilities ceded (assumed) are F-15 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) recognized immediately as a loss and are reported in the appropriate line item within the consolidated statement of operations. Any gain on such retroactive agreement is deferred and is amortized as part of DAC, primarily using the recovery method. Ceded policyholder and contract related liabilities, other than those currently due, are reported gross on the consolidated balance sheet. Amounts currently recoverable under reinsurance agreements are included in premiums, reinsurance and other receivables and amounts currently payable are included in other liabilities. Assets and liabilities relating to reinsurance agreements with the same reinsurer may be recorded net on the consolidated balance sheet, if a right of offset exists within the reinsurance agreement. In the event that reinsurers do not meet their obligations to the Company under the terms of the reinsurance agreements, reinsurance recoverable balances could become uncollectible. In such instances, reinsurance recoverable balances are stated net of allowances for uncollectible reinsurance. The funds withheld liability represents amounts withheld by the Company in accordance with the terms of the reinsurance agreements. The Company withholds the funds rather than transferring the underlying investments and, as a result, records funds withheld liability within other liabilities. The Company recognizes interest on funds withheld, included in other expenses, at rates defined by the terms of the agreement which may be contractually specified or directly related to the investment portfolio. Premiums, fees and policyholder benefits and claims include amounts assumed under reinsurance agreements and are net of reinsurance ceded. Amounts received from reinsurers for policy administration are reported in other revenues. With respect to GMIBs, a portion of the directly written GMIBs are accounted for as insurance liabilities, but the associated reinsurance agreements contain embedded derivatives. These embedded derivatives are included in premiums, reinsurance and other receivables with changes in estimated fair value reported in net derivative gains (losses). If the Company determines that a reinsurance agreement does not expose the reinsurer to a reasonable possibility of a significant loss from insurance risk, the Company records the agreement using the deposit method of accounting. Deposits received are included in other liabilities and deposits made are included within premiums, reinsurance and other receivables. As amounts are paid or received, consistent with the underlying contracts, the deposit assets or liabilities are adjusted. Interest on such deposits is recorded as other revenues or other expenses, as appropriate. Periodically, the Company evaluates the adequacy of the expected payments or recoveries and adjusts the deposit asset or liability through other revenues or other expenses, as appropriate. Investments Net Investment Income Income on investments is reported within net investment income, unless otherwise stated herein. Fixed Maturity and Equity Securities The majority of the Company's fixed maturity and equity securities are classified as available-for-sale ("AFS") and are reported at their estimated fair value. Unrealized investment gains and losses on these securities are recorded as a separate component of other comprehensive income (loss) ("OCI"), net of policyholder-related amounts and deferred income taxes. All security transactions are recorded on a trade date basis. Investment gains and losses on sales are determined on a specific identification basis. F-16 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) Interest income on fixed maturity securities is recognized when earned using an effective yield method giving effect to amortization of premiums and accretion of discounts. Prepayment fees are recognized when earned. Dividends on equity securities are recognized when declared. The Company periodically evaluates fixed maturity and equity securities for impairment. The assessment of whether impairments have occurred is based on management's case-by-case evaluation of the underlying reasons for the decline in estimated fair value and an analysis of the gross unrealized losses by severity and/or age. The analysis of gross unrealized losses is described further in Note 8 "-- Evaluation of AFS Securities for OTTI and Evaluating Temporarily Impaired AFS Securities." For fixed maturity securities in an unrealized loss position, an other-than-temporary impairment ("OTTI") is recognized in earnings when it is anticipated that the amortized cost will not be recovered. When either: (i) the Company has the intent to sell the security; or (ii) it is more likely than not that the Company will be required to sell the security before recovery, the OTTI recognized in earnings is the entire difference between the security's amortized cost and estimated fair value. If neither of these conditions exist, the difference between the amortized cost of the security and the present value of projected future cash flows expected to be collected is recognized as an OTTI in earnings ("credit loss"). If the estimated fair value is less than the present value of projected future cash flows expected to be collected, this portion of OTTI related to other-than-credit factors ("noncredit loss") is recorded in OCI. Adjustments are not made for subsequent recoveries in value. With respect to equity securities, the Company considers in its OTTI analysis its intent and ability to hold a particular equity security for a period of time sufficient to allow for the recovery of its estimated fair value to an amount equal to or greater than cost. If a sale decision is made for an equity security and recovery to an amount at least equal to cost prior to the sale is not expected, the security will be deemed to be other-than-temporarily impaired in the period that the sale decision was made and an OTTI loss will be recorded in earnings. The OTTI loss recognized is the entire difference between the security's cost and its estimated fair value with a corresponding charge to earnings. Trading and Fair Value Option Securities Trading and fair value option securities are stated at estimated fair value and include investments for which the fair value option ("FVO") has been elected ("FVO Securities") and investments that are actively purchased and sold ("Actively Traded Securities"). Actively Traded Securities principally include fixed maturity securities and short sale agreement liabilities, which are included in other liabilities. FVO Securities include: . fixed maturity and equity securities held-for-investment by the general account to support asset and liability matching strategies for certain insurance products; and . securities held by consolidated securitization entities ("CSEs") (former qualifying special purpose entities), with changes in estimated fair value subsequent to consolidation included in net investment gains (losses). Changes in estimated fair value of these securities subsequent to purchase are included in net investment income, except for certain securities included in FVO Securities where changes are included in net investment gains (losses). F-17 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) Mortgage Loans The Company disaggregates its mortgage loan investments into three portfolio segments: commercial, agricultural, and residential. The accounting and valuation allowance policies that are applicable to all portfolio segments are presented below and policies related to each of the portfolio segments are included in Note 8. Mortgage loans are stated at unpaid principal balance, adjusted for any unamortized premium or discount, deferred fees or expenses, and are net of valuation allowances. Interest income and prepayment fees are recognized when earned. Interest is accrued on the principal amount of the loan based on the loan's contractual interest rate, while amortization of premiums and discounts is recognized using the effective yield method. Gains and losses from sales of loans and increases or decreases to valuation allowances are recorded 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 contractual interest rate. Generally, accrued interest is capitalized on the policy's anniversary date. Valuation allowances are not established for policy loans, as they are fully collateralized by the cash surrender value of the underlying insurance policies. Any unpaid principal or interest on the loan is deducted from the cash surrender value or the death benefit prior to settlement of the insurance policy. Real Estate Real estate held-for-investment is stated at cost less accumulated depreciation. Depreciation is provided on a straight-line basis over the estimated useful life of the asset (typically 20 to 55 years). Rental income associated with such real estate is recognized on a straight-line basis over the term of the respective leases. The Company periodically reviews its real estate held-for-investment for impairment and tests for recoverability whenever events or changes in circumstances indicate the carrying value may not be recoverable and exceeds its estimated fair value. Properties whose carrying values are greater than their undiscounted cash flows are written down to their estimated fair value, which is generally computed using the present value of expected future cash flows discounted at a rate commensurate with the underlying risks. Real estate for which the Company commits to a plan to sell within one year and actively markets in its current condition for a reasonable price in comparison to its estimated fair value is classified as held for sale. Real estate held-for-sale is stated at the lower of depreciated cost or estimated fair value less expected disposition costs and is not depreciated. Real estate acquired upon foreclosure 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 ownership interest or more than a minor influence over the joint venture's or partnership's operations, but does not have a controlling financial interest. Equity method investment income is recognized as earned by the investee. The Company records its share of earnings using a three-month lag methodology for instances where the timely financial information is not available and the contractual agreements provide for the delivery of the investees' financial information after the end of the Company's reporting period. F-18 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) The Company uses the cost method of accounting for investments in which it has virtually no influence over the joint venture's or the partnership's operations. Based on the nature and structure of these investments, they do not meet the characteristics of an equity security in accordance with applicable accounting standards. The Company recognizes distributions on cost method investments as earned or received. In addition to the investees performing regular evaluations for the impairment of underlying investments, the Company routinely evaluates these investments for impairments. For equity method investees, the Company considers financial and other information provided by the investee, other known information and inherent risks in the underlying investments, as well as future capital commitments, in determining whether an impairment has occurred. The Company considers its cost method investments for OTTI when the carrying value of such investments exceeds the net asset value ("NAV"). The Company takes into consideration the severity and duration of this excess when determining whether the cost method investment is other-than-temporarily impaired. When an OTTI has occurred, the impairment loss is recorded within net investment gains (losses). Short-term Investments Short-term investments include securities and other investments with remaining maturities of one year or less, but greater than three months, at the time of purchase and are stated at estimated fair value or amortized cost, which approximates estimated fair value. Short-term investments also include investments in affiliated money market pools. Other Invested Assets Other invested assets consist principally of the following: . Freestanding derivatives with positive estimated fair values are described in "-- Derivatives" below. . Tax credit partnerships derive their primary source of investment return in the form of income tax credits. Where tax credits are guaranteed by a creditworthy third party, the investment is accounted for under the effective yield method. Otherwise, the investment is accounted for under the equity method. . Loans to affiliates are stated at unpaid principal balance, adjusted for any unamortized premium or discount. . Leveraged leases are recorded net of non-recourse debt. The Company recognizes income on the leveraged leases by applying the leveraged lease's estimated rate of return to the net investment in the lease. The Company regularly reviews residual values and impairs them to expected values. . Funds withheld represent a receivable for amounts contractually withheld by ceding companies in accordance with reinsurance agreements. The Company recognizes interest on funds withheld at rates defined by the terms of the agreement which may be contractually specified or directly related to the underlying investments. . Joint venture investments that engage in insurance underwriting activities are accounted for under the equity method. Securities Lending Program Securities lending transactions, whereby blocks of securities, which are included in fixed maturity securities, equity securities, and short-term investments, are loaned to third parties, primarily brokerage firms and F-19 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) commercial banks, and are treated as financing arrangements and the associated liability is recorded at the amount of cash received. The Company obtains collateral at the inception of the loan, usually cash, in an amount generally equal to 102% of the estimated fair value of the securities loaned, and maintains it at a level greater than or equal to 100% for the duration of the loan. The Company is liable to return to the counterparties the cash collateral received. Security collateral on deposit from counterparties in connection with the securities lending transactions may not be sold or repledged, unless the counterparty is in default, and is not reflected in the consolidated financial statements. The Company monitors the estimated fair value of the securities loaned on a daily basis with additional collateral obtained as necessary. Income and expenses associated with securities lending transactions are reported as investment income and investment expense, respectively, within net investment income. Derivatives Freestanding Derivatives Freestanding derivatives are carried in the Company's consolidated balance sheets either as assets within other invested assets or as liabilities within other liabilities at estimated fair value. The Company does not offset the fair value amounts recognized for derivatives executed with the same counterparty under the same master netting agreement. Accruals on derivatives are generally recorded in accrued investment income or within other liabilities. However, accruals that are not scheduled to settle within one year are included with the derivatives carrying value in other invested assets or other liabilities. If a derivative is not designated as an accounting hedge or its use in managing risk does not qualify for hedge accounting, changes in the estimated fair value of the derivative are reported in net derivative gains (losses) except as follows: ------------------------------------------------------------------------------- Statement of Operations Presentation: Derivative: ------------------------------------------------------------------------------- Net investment income . Economic hedges of equity method investments in joint ventures . All derivatives held in relation to trading portfolios ------------------------------------------------------------------------------- Hedge Accounting To qualify for hedge accounting, at the inception of the hedging relationship, the Company formally documents its risk management objective and strategy for undertaking the hedging transaction, as well as its designation of the hedge. Hedge designation and financial statement presentation of changes in estimated fair value of the hedging derivatives are as follows: . Fair value hedge (a hedge of the estimated fair value of a recognized asset or liability) - in net derivative gains (losses), consistent with the change in fair value of the hedged item attributable to the designated risk being hedged. . Cash flow hedge (a hedge of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability)--effectiveness in OCI (deferred gains or losses on the derivative are reclassified into the consolidated statement of operations when the Company's earnings are affected by the variability in cash flows of the hedged item); ineffectiveness in net derivative gains (losses). F-20 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) The change in estimated fair values of the hedging derivatives are exclusive of any accruals that are separately reported in the consolidated statement of operations within interest income or interest expense to match the location of the hedged item. In its hedge documentation, the Company sets forth how the hedging instrument is expected to hedge the designated risks related to the hedged item and sets forth the method that will be used to retrospectively and prospectively assess the hedging instrument's effectiveness and the method that will be used to measure ineffectiveness. A derivative designated as a hedging instrument must be assessed as being highly effective in offsetting the designated risk of the hedged item. Hedge effectiveness is formally assessed at inception and at least quarterly throughout the life of the designated hedging relationship. Assessments of hedge effectiveness and measurements of ineffectiveness are also subject to interpretation and estimation and different interpretations or estimates may have a material effect on the amount reported in net income. The Company discontinues hedge accounting prospectively when: (i) it is determined that the derivative is no longer highly effective in offsetting changes in the estimated fair value or cash flows of a hedged item; (ii) the derivative expires, is sold, terminated, or exercised; (iii) it is no longer probable that the hedged forecasted transaction will occur; or (iv) the derivative is de-designated as a hedging instrument. When hedge accounting is discontinued because it is determined that the derivative is not highly effective in offsetting changes in the estimated fair value or cash flows of a hedged item, the derivative continues to be carried in the consolidated balance sheets at its estimated fair value, with changes in estimated fair value recognized in net derivative gains (losses). The carrying value of the hedged recognized asset or liability under a fair value hedge is no longer adjusted for changes in its estimated fair value due to the hedged risk, and the cumulative adjustment to its carrying value is amortized into income over the remaining life of the hedged item. Provided the hedged forecasted transaction is still probable of occurrence, the changes in estimated fair value of derivatives recorded in OCI related to discontinued cash flow hedges are released into the consolidated statements of operations when the Company's earnings are affected by the variability in cash flows of the hedged item. When hedge accounting is discontinued because it is no longer probable that the forecasted transactions will occur on the anticipated date or within two months of that date, the derivative continues to be carried in the consolidated balance sheets at its estimated fair value, with changes in estimated fair value recognized currently in net derivative gains (losses). Deferred gains and losses of a derivative recorded in OCI pursuant to the discontinued cash flow hedge of a forecasted transaction that is no longer probable are recognized immediately in net derivative gains (losses). In all other situations in which hedge accounting is discontinued, the derivative is carried at its estimated fair value in the consolidated balance sheets, with changes in its estimated fair value recognized in the current period as net derivative gains (losses). Embedded Derivatives The Company sells variable annuities and purchases certain investments that contain embedded derivatives. The Company assesses each identified embedded derivative to determine whether it is required to be bifurcated. The embedded derivative is bifurcated from the host contract and accounted for as a freestanding derivative if: . the combined instrument is not accounted for in its entirety at fair value with changes in fair value recorded in earnings; F-21 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) . the terms of the embedded derivative are not clearly and closely related to the economic characteristics of the host contract; and . a separate instrument with the same terms as the embedded derivative would qualify as a derivative instrument. Such embedded derivatives are carried in the consolidated balance sheets at estimated fair value with the host contract and changes in their estimated fair value are generally reported in net derivative gains (losses). If the Company is unable to properly identify and measure an embedded derivative for separation from its host contract, the entire contract is carried on the balance sheet at estimated fair value, with changes in estimated fair value recognized in the current period in net investment gains (losses) or net investment income. Additionally, the Company may elect to carry an entire contract on the balance sheet at estimated fair value, with changes in estimated fair value recognized in the current period in net investment gains (losses) or net investment income if that contract contains an embedded derivative that requires bifurcation. At inception, the Company attributes to the embedded derivative a portion of the projected future guarantee fees to be collected from the policyholder equal to the present value of projected future guaranteed benefits. Any additional fees represent "excess" fees and are reported in universal life and investment-type product policy fees. Fair Value Certain assets and liabilities are measured at estimated fair value in the Company's consolidated balance sheets. In addition, the notes to these consolidated financial statements include further disclosures of estimated fair values. The Company defines fair value as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. In most cases, the exit price and the transaction (or entry) price will be the same at initial recognition. Subsequent to initial recognition, fair values are based on unadjusted quoted prices for identical assets or liabilities in active markets that are readily and regularly obtainable. When such quoted prices are not available, fair values are based on quoted prices in markets that are not active, quoted prices for similar but not identical assets or liabilities, or other observable inputs. If these inputs are not available, or observable inputs are not determinative, unobservable inputs and/or adjustments to observable inputs requiring management judgment are used to determine the fair value of assets and liabilities. Goodwill Goodwill, which is included in other assets, represents the future economic benefits arising from net assets acquired in a business combination that are not individually identified and recognized. Goodwill is calculated as the excess of cost over the estimated fair value of such net assets acquired, is not amortized, and is tested for impairment based on a fair value approach at least annually or more frequently if events or circumstances indicate that there may be justification for conducting an interim test. The Company performs its annual goodwill impairment testing during the third quarter of each year based upon data as of the close of the second quarter. Goodwill associated with a business acquisition is not tested for impairment during the year the business is acquired unless there is a significant identified impairment event. The impairment test is performed at the reporting unit level, which is the operating segment or a business one level below the operating segment, if discrete financial information is prepared and regularly reviewed by management at that level. For purposes of goodwill impairment testing, if the carrying value of a reporting unit F-22 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) exceeds its estimated fair value, there may be an indication of impairment. In such instances, the implied fair value of the goodwill is determined in the same manner as the amount of goodwill that would be determined in a business combination. The excess of the carrying value of goodwill over the implied fair value of goodwill would be recognized as an impairment and recorded as a charge against net income. On an ongoing basis, the Company evaluates potential triggering events that may affect the estimated fair value of the Company's reporting units to assess whether any goodwill impairment exists. Deteriorating or adverse market conditions for certain reporting units may have an impact on the estimated fair value of these reporting units and could result in future impairments of goodwill. Employee Benefit Plans The Company sponsors and administers various qualified and non-qualified defined benefit pension plans and other postretirement employee benefit plans covering eligible employees and sales representatives who meet specified eligibility requirements of the sponsor and its participating affiliates. A December 31 measurement date is used for all of the Company's defined benefit pension and other postretirement benefit plans. The Company recognizes the funded status of the projected pension benefit obligation ("PBO") for pension benefits and the accumulated pension benefit obligation ("APBO") for other postretirement benefits for each of its plans. The Company recognizes an expense for differences between actual experience and estimates over the average future service period of participants. The actuarial gains or losses, prior service costs and credits not yet included in net periodic benefit costs are charged to accumulated OCI ("AOCI"), net of income tax. The Company also sponsors defined contribution plans for substantially all U.S. employees under which a portion of participant contributions is matched. Applicable matching contributions are made each payroll period. Accordingly, the Company recognizes compensation cost for current matching contributions. As all contributions are transferred currently as earned to the defined contribution plans, no liability for matching contributions is recognized in the consolidated balance sheets. Income Tax Metropolitan Life Insurance Company and its includable subsidiaries join with MetLife, Inc. and its includable subsidiaries in filing a consolidated U.S. life and non-life federal income tax return in accordance with the provisions of the Internal Revenue Code of 1986, as amended (the "Code"). Metropolitan Life Insurance Company and its includable subsidiaries participate in a tax sharing agreement with MetLife, Inc. The Company's accounting for income taxes represents management's best estimate of various events and transactions. Deferred tax assets and liabilities resulting from temporary differences between the financial reporting and tax bases of assets and liabilities are measured at the balance sheet date using enacted tax rates expected to apply to taxable income in the years the temporary differences are expected to reverse. The realization of deferred tax assets depends upon the existence of sufficient taxable income within the carryback or carryforward periods under the tax law in the applicable tax jurisdiction. Valuation allowances are established when management determines, based on available information, that it is more likely than not that deferred income tax assets will not be realized. Factors in management's determination include the performance F-23 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) of the business and its ability to generate capital gains. 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: . future taxable income exclusive of reversing temporary differences and carryforwards; . future reversals of existing taxable temporary differences; . taxable income in prior carryback years; and . tax planning strategies. The Company may be required to change its provision for income taxes in certain circumstances. Examples of such circumstances include when estimates used in determining valuation allowances on deferred tax assets significantly change or when receipt of new information indicates the need for adjustment in valuation allowances. Additionally, future events, such as changes in tax laws, tax regulations, or interpretations of such laws or 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. The Company determines whether it is more likely than not that a tax position will be sustained upon examination by the appropriate taxing authorities before any part of the benefit can be recorded in the financial statements. A tax position is measured at the largest amount of benefit that is greater than 50% likely of being realized upon settlement. Unrecognized tax benefits due to tax uncertainties that do not meet the threshold are included within other liabilities and are charged to earnings in the period that such determination is made. The Company classifies interest recognized as interest expense and penalties recognized as a component of income tax. Litigation Contingencies The Company is a party to a number of legal actions and is involved in a number of regulatory investigations. Given the inherent unpredictability of these matters, it is difficult to estimate the impact on the Company's financial position. Liabilities are established when it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. Except as otherwise disclosed in Note 17, legal costs are recognized in other expenses as incurred. On a quarterly and annual basis, the Company reviews relevant information with respect to liabilities for litigation, regulatory investigations and litigation-related contingencies to be reflected in the Company's consolidated financial statements. Other Accounting Policies Stock-Based Compensation Stock-based compensation recognized in the Company's consolidated results of operations is allocated from MetLife, Inc. The accounting policies described below represent those that MetLife, Inc. applies in determining such allocated expenses. MetLife, Inc. grants certain employees and directors stock-based compensation awards under various plans that are subject to specific vesting conditions. The cost of all stock-based transactions is measured at fair value at grant date and recognized over the period during which a grantee is required to provide services in exchange for F-24 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) the award. Although the terms of MetLife, Inc.'s stock-based plans do not accelerate vesting upon retirement, or the attainment of retirement eligibility, the requisite service period subsequent to attaining such eligibility is considered nonsubstantive. Accordingly, MetLife, Inc. recognizes compensation expense related to stock-based awards over the shorter of the requisite service period or the period to attainment of retirement eligibility. An estimation of future forfeitures of stock-based awards is incorporated into the determination of compensation expense when recognizing expense over the requisite service period. Cash and Cash Equivalents The Company considers all highly liquid securities and other investments purchased with an original or remaining maturity of three months or less at the date of purchase to be cash equivalents. Cash equivalents are stated at amortized cost, which approximates estimated fair value. Property, Equipment, Leasehold Improvements and Computer Software Property, equipment and leasehold improvements, which are included in other assets, are stated at cost, less accumulated depreciation and amortization. Depreciation is determined using the straight-line method over the estimated useful lives of the assets, as appropriate. The estimated life is generally 40 years for company occupied real estate property, from five to 10 years for leasehold improvements, and from three to seven years for all other property and equipment. The cost basis of the property, equipment and leasehold improvements was $1.7 billion at both December 31, 2012 and 2011. Accumulated depreciation and amortization of property, equipment and leasehold improvements was $1.0 billion and $999 million at December 31, 2012 and 2011, respectively. Related depreciation and amortization expense was $121 million, $118 million and $111 million for the years ended December 31, 2012, 2011 and 2010, 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 $902 million and $1.6 billion at December 31, 2012 and 2011, respectively. Accumulated amortization of capitalized software was $611 million and $1.2 billion at December 31, 2012 and 2011, respectively. Related amortization expense was $143 million, $145 million and $132 million for the years ended December 31, 2012, 2011 and 2010, respectively. Other Revenues Other revenues include, in addition to items described elsewhere herein, advisory fees, broker-dealer commissions and fees, administrative service fees, and changes in account value relating to corporate-owned life insurance ("COLI"). Such fees and commissions are recognized in the period in which services are performed. Under certain COLI contracts, if the Company reports certain unlikely adverse results in its consolidated financial statements, withdrawals would not be immediately available and would be subject to market value adjustment, which could result in a reduction of the account value. Policyholder Dividends Policyholder dividends are approved annually by Metropolitan Life Insurance Company and its insurance subsidiaries' boards of directors. The aggregate amount of policyholder dividends is related to actual interest, mortality, morbidity and expense experience for the year, as well as management's judgment as to the F-25 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) appropriate level of statutory surplus to be retained by Metropolitan Life Insurance Company and its insurance subsidiaries. Foreign Currency Assets, liabilities and operations of foreign affiliates and subsidiaries, if any, are recorded based on the functional currency of each entity. The determination of the functional currency is made based on the appropriate economic and management indicators. The local currencies of foreign operations are the functional currencies. Assets and liabilities of foreign affiliates and subsidiaries, if any, are translated from the functional currency to U.S. dollars at the exchange rates in effect at each year-end and income and expense accounts are translated at the average exchange rates during the year. The resulting translation adjustments are charged or credited directly to OCI, net of applicable taxes. Gains and losses from foreign currency transactions, including the effect of re-measurement of monetary assets and liabilities to the appropriate functional currency, are reported as part of net investment gains (losses) in the period in which they occur. Adoption of New Accounting Pronouncements On January 1, 2012, the Company adopted new guidance regarding accounting for DAC, which was retrospectively applied. The guidance specifies that only costs related directly to successful acquisition of new or renewal contracts can be capitalized as DAC; all other acquisition-related costs must be expensed as incurred. As a result, certain sales manager compensation and administrative costs previously capitalized by the Company will no longer be deferred. The following table presents the effects of the retrospective application of the adoption of such new accounting guidance to the Company's previously reported consolidated balance sheet:
As Previously Reported Adjustment As Adjusted ------------------------ ------------------- ------------------- December 31, 2011 December 31, 2011 December 31, 2011 ------------------------ ------------------- ------------------- (In millions) Assets Other invested assets, principally at estimated fair value................................................ $ 12,505 $ (27) $ 12,478 Deferred policy acquisition costs and value of business acquired (1)................................ $ 7,779 $ (1,438) $ 6,341 Liabilities Deferred income tax liability......................... $ 2,827 $ (503) $ 2,324 Equity Retained earnings..................................... $ 8,077 $ (1,104) $ 6,973 Accumulated other comprehensive income (loss)......... $ 2,912 $ 142 $ 3,054 Total Metropolitan Life Insurance Company stockholder's equity................................. 25,500 (962) 24,538 Total equity.......................................... $ 25,682 $ (962) $ 24,720
-------- (1)VOBA was not impacted by the adoption of this guidance. F-26 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) The following table presents the effects of the retrospective application of the adoption of such new accounting guidance to the Company's previously reported consolidated statements of operations:
As Previously Reported Adjustment As Adjusted --------------------------- ------------------------ ------------------------ Years Ended December 31, Years Ended December 31, Years Ended December 31, --------------------------- ------------------------ ------------------------ 2011 2010 2011 2010 2011 2010 ------------- ------------- ---------- ------- -------- -------- (In millions) Revenues Net investment income.............. $ 11,621 (1) $ 11,586 (1) $ (6) $ (5) $11,615 $11,581 Expenses Other expenses..................... $ 6,414 $ 6,259 $ 57 $ 23 $ 6,471 $ 6,282 Income (loss) from continuing operations before provision for income tax........................ $ 4,807 (1) $ 2,537 (1) $ (63) $ (28) $ 4,744 $ 2,509 Provision for income tax expense (benefit)......................... $ 1,479 (1) $ 776 (1) $ (19) $ (7) $ 1,460 $ 769 Income (loss) from continuing operations, net of income tax..... $ 3,328 (1) $ 1,761 (1) $ (44) $ (21) $ 3,284 $ 1,740 Net income (loss).................. $ 3,389 $ 1,792 $ (44) $ (21) $ 3,345 $ 1,771 Net income (loss) attributable to Metropolitan Life Insurance Company........................... $ 3,397 $ 1,795 $ (44) $ (21) $ 3,353 $ 1,774
-------- (1)Amounts in the table above differ from the amounts previously reported in the consolidated statements of operations and comprehensive income due to the inclusion of the impact of discontinued real estate operations of $4 million ($6 million net investment income, net of $2 million income tax) and $5 million ($7 million net investment income, net of $2 million income tax) for the years ended December 31, 2011 and 2010, respectively. The following table presents the effects of the retrospective application of the adoption of such new accounting guidance to the Company's previously reported consolidated statements of cash flows:
As Previously Reported Adjustment As Adjusted -------------------------- ------------------------ -------------------------- Years Ended December 31, Years Ended December 31, Years Ended December 31, -------------------------- ------------------------ -------------------------- 2011 2010 2011 2010 2011 2010 ------------- ------------ ------------ ----------- ------------- ------------ (In millions) Cash flows from operating activities Net income (loss)............................ $ 3,389 $ 1,792 $ (44) $ (21) $ 3,345 $ 1,771 Change in deferred policy acquisition costs and value of business acquired, net......... $ 94 $ 147 $ 56 $ 22 $ 150 $ 169 Change in income tax......................... $ 547 $ 735 $ (20) $ (8) $ 527 $ 727 Cash flows from investing activities Net change in other invested assets.......... $ (570) $ 142 $ 8 $ 7 $ (562) $ 149
On January 1, 2012, the Company adopted new guidance regarding comprehensive income, which was retrospectively applied, that provides companies with the option to present the total of comprehensive income, components of net income, and the components of OCI either in a single continuous statement of comprehensive income or in two separate but consecutive statements in annual financial statements. The standard eliminates the option to present components of OCI as part of the statement of changes in stockholder's equity. The Company adopted the two-statement approach for annual financial statements. F-27 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) Effective January 1, 2012, the Company adopted new guidance on goodwill impairment testing that simplifies how an entity tests goodwill for impairment. This new guidance allows an entity to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value as a basis for determining whether it needs to perform the quantitative two-step goodwill impairment test. Only if an entity determines, based on qualitative assessment, that it is more likely than not that a reporting unit's fair value is less than its carrying value will it be required to calculate the fair value of the reporting unit. The qualitative assessment is optional and the Company is permitted to bypass it for any reporting unit in any period and begin its impairment analysis with the quantitative calculation. In 2012, the Company proceeded to Step 1 of the two-step impairment analysis for all of the Company's reporting units. The Company is permitted to perform the qualitative assessment in any subsequent period. Effective January 1, 2012, the Company adopted new guidance regarding fair value measurements that establishes common requirements for measuring fair value and for disclosing information about fair value measurements in accordance with GAAP and International Financial Reporting Standards. Some of the amendments clarify the Financial Accounting Standards Board's ("FASB") intent on the application of existing fair value measurement requirements. Other amendments change a particular principle or requirement for measuring fair value or for disclosing information about fair value measurements. The adoption did not have a material impact on the Company's consolidated financial statements other than the expanded disclosures in Note 10. Effective July 1, 2010, the Company adopted guidance regarding accounting for embedded credit derivatives within structured securities. This guidance clarifies the type of embedded credit derivative that is exempt from embedded derivative bifurcation requirements. Specifically, embedded credit derivatives resulting only from subordination of one financial instrument to another continue to qualify for the scope exception. Embedded credit derivative features other than subordination must be analyzed to determine whether they require bifurcation and separate accounting. As a result of the adoption of this guidance, the Company elected FVO for certain structured securities that were previously accounted for as fixed maturity securities. Upon adoption, the Company reclassified $50 million of securities from fixed maturity securities to trading and FVO securities. These securities had cumulative unrealized losses of $10 million, net of income tax, which was recognized as a cumulative effect adjustment to decrease retained earnings with a corresponding increase to AOCI as of July 1, 2010. Effective January 1, 2010, the Company adopted guidance related to financial instrument transfers and consolidation of VIEs. The financial instrument transfer guidance eliminates the concept of a qualified special purpose entity ("QSPE"), eliminates the guaranteed mortgage securitization exception, changes the criteria for achieving sale accounting when transferring a financial asset and changes the initial recognition of retained beneficial interests. The revised consolidation guidance changed the definition of the primary beneficiary, as well as the method of determining whether an entity is a primary beneficiary of a VIE from a quantitative model to a qualitative model. Under the qualitative VIE consolidation model, the entity that has both the ability to direct the most significant activities of the VIE and the obligation to absorb losses or receive benefits that could potentially be significant to the VIE is considered to be the primary beneficiary. The guidance requires a continuous reassessment, as well as enhanced disclosures, including the effects of a company's involvement with VIEs on its financial statements. As a result of the adoption of the amended VIE consolidation guidance, the Company consolidated certain former QSPEs that were previously accounted for as equity security collateralized debt obligations. The Company also elected FVO for all of the consolidated assets and liabilities of these entities. Upon consolidation, the Company recorded $278 million of securities classified as trading and FVO securities and $232 million of F-28 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) long-term debt based on estimated fair values at January 1, 2010 and de-recognized less than $1 million in equity securities. The consolidation also resulted in an increase in retained earnings of $30 million, net of income tax, at January 1, 2010. For the year ended December 31, 2010, the Company recorded $15 million of net investment income on the consolidated assets, $15 million of interest expense in other expenses on the related long-term debt, and ($30) million in net investment gains (losses) to remeasure the assets and liabilities at their estimated fair values. Future Adoption of New Accounting Pronouncements In March 2013, the FASB issued new guidance regarding foreign currency (Accounting Standards Update ("ASU") 2013-05, Foreign Currency Matters (Topic 830): Parent's Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity), effective prospectively for fiscal years and interim reporting periods within those years beginning after December 15, 2013. The amendments require an entity that ceases to have a controlling financial interest in a subsidiary or group of assets within a foreign entity to apply the guidance in Subtopic 830-30, Foreign Currency Matters--Translation of Financial Statements, to release any related cumulative translation adjustment into net income. Accordingly, the cumulative translation adjustment should be released into net income only if the sale or transfer results in the complete or substantially complete liquidation of the foreign entity in which the subsidiary or group of assets had resided. For an equity method investment that is a foreign entity, the partial sale guidance in section 830-30-40, Derecognition, still applies. As such, a pro rata portion of the cumulative translation adjustment should be released into net income upon a partial sale of such an equity method investment. The Company is currently evaluating the impact of this guidance on its consolidated financial statements. In February 2013, the FASB issued new guidance regarding liabilities (ASU 2013-04, Liabilities (Topic 405): Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation Is Fixed at the Reporting Date), effective retrospectively for fiscal years beginning after December 15, 2013 and interim periods within those years. The amendments require an entity to measure obligations resulting from joint and several liability arrangements for which the total amount of the obligation within the scope of the guidance is fixed at the reporting date, as the sum of the amount the reporting entity agreed to pay on the basis of its arrangement among its co-obligors and any additional amount the reporting entity expects to pay on behalf of its co-obligors. In addition the amendments require an entity to disclose the nature and amount of the obligation as well as other information about the obligations. The Company is currently evaluating the impact of this guidance on its consolidated financial statements. In January 2013, the FASB issued new guidance regarding comprehensive income (ASU 2013-02, Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income), effective prospectively for fiscal years beginning after December 15, 2012. The amendments require an entity to provide information about the amounts reclassified out of AOCI by component. In addition, an entity is required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of AOCI by the respective line items of net income but only if the amount reclassified is required under GAAP to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under GAAP to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures required under GAAP that provide additional detail about those amounts. The Company is currently evaluating the impact of this guidance on its consolidated financial statements. F-29 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) In January 2013, the FASB issued new guidance regarding balance sheet offsetting disclosures (ASU 2013-01, Balance Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities ("ASU 2013-01")), effective for fiscal years and interim periods within those years beginning on or after January 1, 2013. The amendments in ASU 2013-01 clarify that the scope of ASU 2011-11 (as defined below), applies to derivatives, including bifurcated embedded derivatives, repurchase and reverse repurchase agreements, and securities borrowing and lending transactions. The Company is currently evaluating the impact of this guidance on its consolidated financial statements. In December 2011, the FASB issued new guidance regarding balance sheet offsetting disclosures (ASU 2011-11, Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities ("ASU 2011-11")), effective for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods. The guidance will be applied retrospectively for all comparative periods presented. The guidance requires an entity to disclose information about offsetting and related arrangements to enable users of its financial statements to understand the effects of those arrangements on its financial position. Entities are required to disclose both gross information and net information about both instruments and transactions eligible for offset in the statement of financial position and instruments and transactions subject to an agreement similar to a master netting arrangement. The objective of the guidance is to facilitate comparison between those entities that prepare their financial statements on the basis of GAAP and those entities that prepare their financial statements on the basis of International Financial Reporting Standards. The Company is currently evaluating the impact of this guidance on its consolidated financial statements and related disclosures. In July 2011, the FASB issued new guidance on other expenses (ASU 2011-06, Other Expenses (Topic 720): Fees Paid to the Federal Government by Health Insurers), effective for calendar years beginning after December 31, 2013. The objective of this standard is to address how health insurers should recognize and classify in their income statements fees mandated by the Patient Protection and Affordable Care Act, as amended by the Health Care and Education Reconciliation Act. The amendments in this standard specify that the liability for the fee should be estimated and recorded in full once the entity provides qualifying health insurance in the applicable calendar year in which the fee is payable with a corresponding deferred cost that is amortized to expense using the straight-line method of allocation unless another method better allocates the fee over the calendar year that it is payable. The Company is currently evaluating the impact of this guidance on its consolidated financial statements. 2. Segment Information As announced in November 2011, MetLife, Inc. reorganized its business into three broad geographic regions. As a result, during 2012, the Company reorganized into three segments: Retail; Group, Voluntary & Worksite Benefits; and Corporate Benefit Funding. In addition, the Company reports certain of its results of operations in Corporate & Other. Prior period results have been revised in connection with these changes. Retail The Retail segment offers a broad range of protection products and services and a variety of annuities to individuals and employees of corporations and other institutions, and is organized into two businesses: Life & Other and Annuities. Life & Other insurance products and services include variable life, universal life, term life and whole life products. Additionally, through broker-dealer affiliates, the Company offers a full range of mutual funds and other securities products. Life & Other products and services also include individual disability income products. Annuities include a variety of variable and fixed annuities which provide for both asset accumulation and asset distribution needs. F-30 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) Group, Voluntary & Worksite Benefits The Group, Voluntary & Worksite Benefits segment offers a broad range of protection products and services to individuals and corporations, as well as other institutions and their respective employees, and is organized into two businesses: Group and Voluntary & Worksite. Group insurance products and services include variable life, universal life and term life products. Group insurance products and services also include dental, group short- and long-term disability and accidental death & dismemberment coverages. The Voluntary & Worksite business includes LTC, prepaid legal plans and critical illness products. Corporate Benefit Funding The Corporate Benefit Funding segment offers a broad range of annuity and investment products, including guaranteed interest products and other stable value products, income annuities, and separate account contracts for the investment management of defined benefit and defined contribution plan assets. This segment also includes certain products to fund postretirement benefits and company-, bank- or trust-owned life insurance used to finance non-qualified benefit programs for executives. Corporate & Other Corporate & Other contains the excess capital not allocated to the segments, enterprise-wide strategic initiative restructuring charges, various start-up and certain run-off entities, as well as interest expense related to the majority of the Company's outstanding debt and expenses associated with certain legal proceedings and income tax audit issues. Corporate & Other also includes the elimination of intersegment amounts, which generally relate to intersegment loans, which bear interest rates commensurate with related borrowings. Financial Measures and Segment Accounting Policies Operating earnings is the measure of segment profit or loss the Company uses to evaluate segment performance and allocate resources. Consistent with GAAP guidance for segment reporting, operating earnings is the Company's measure of segment performance and is reported below. Operating earnings should not be viewed as a substitute for GAAP income (loss) from continuing operations, net of income tax. The Company believes the presentation of operating earnings as the Company measures it for management purposes enhances the understanding of its performance by highlighting the results of operations and the underlying profitability drivers of the business. Operating earnings is defined as operating revenues less operating expenses, both net of income tax. Operating revenues excludes net investment gains (losses) and net derivative gains (losses). The following additional adjustments are made to GAAP revenues, in the line items indicated, in calculating operating revenues: . Universal life and investment-type product policy fees excludes the amortization of unearned revenue related to net investment gains (losses) and net derivative gains (losses) and certain variable annuity GMIB fees ("GMIB Fees"); and . Net investment income: (i) includes amounts for scheduled periodic settlement payments and amortization of premium on derivatives that are hedges of investments but do not qualify for hedge accounting treatment, (ii) includes income from discontinued real estate operations, and (iii) excludes certain amounts related to securitization entities that are VIEs consolidated under GAAP. F-31 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) The following adjustments are made to GAAP expenses, in the line items indicated, in calculating operating expenses: . Policyholder benefits and claims and policyholder dividends excludes: (i) changes in the policyholder dividend obligation related to net investment gains (losses) and net derivative gains (losses), (ii) amounts associated with periodic crediting rate adjustments based on the total return of a contractually referenced pool of assets, (iii) benefits and hedging costs related to GMIBs ("GMIB Costs"), and (iv) market value adjustments associated with surrenders or terminations of contracts ("Market Value Adjustments"); . Interest credited to policyholder account balances includes adjustments for scheduled periodic settlement payments and amortization of premium on derivatives that are hedges of PABs but do not qualify for hedge accounting treatment; . Amortization of DAC and VOBA excludes amounts related to: (i) net investment gains (losses) and net derivative gains (losses), (ii) GMIB Fees and GMIB Costs, and (iii) Market Value Adjustments; . Interest expense on debt excludes certain amounts related to securitization entities that are VIEs consolidated under GAAP; and . Other expenses excludes costs related to noncontrolling interests and goodwill impairments. 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, 2012, 2011 and 2010 and at December 31, 2012 and 2011. The segment accounting policies are the same as those used to prepare the Company's consolidated financial statements, except for operating earnings adjustments as defined above. In addition, segment accounting policies include the method of capital allocation described below. Economic capital is an internally developed risk capital model, the purpose of which is to measure the risk in the business and to provide a basis upon which capital is deployed. The economic capital model accounts for the unique and specific nature of the risks inherent in MetLife, Inc.'s and the Company's business. MetLife, Inc.'s economic capital model aligns segment allocated equity with emerging standards and consistent risk principles. Segment net investment income is credited or charged based on the level of allocated equity; however, changes in allocated equity do not impact the Company's consolidated net investment income, operating earnings or income (loss) from continuing operations, net of income tax. F-32 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued)
Operating Earnings ----------------------------------------------------- Group, Voluntary, Corporate & Worksite Benefit Corporate Total Year Ended December 31, 2012 Retail Benefits Funding & Other Total Adjustments Consolidated ------------------------------------------- ---------- ---------- ---------- --------- ---------- ----------- ------------ (In millions) Revenues Premiums................................... $ 3,997 $ 13,274 $ 2,608 $ 1 $ 19,880 $ -- $ 19,880 Universal life and investment-type product policy fees............................... 1,332 663 194 -- 2,189 50 2,239 Net investment income...................... 5,384 1,680 4,519 554 12,137 (285) 11,852 Other revenues............................. 265 398 252 815 1,730 -- 1,730 Net investment gains (losses).............. -- -- -- -- -- (330) (330) Net derivative gains (losses).............. -- -- -- -- -- 675 675 ---------- --------- ---------- --------- ---------- -------- --------- Total revenues........................... 10,978 16,015 7,573 1,370 35,936 110 36,046 ---------- --------- ---------- --------- ---------- -------- --------- Expenses Policyholder benefits and claims and policyholder dividends.................... 6,294 12,580 4,552 (1) 23,425 139 23,564 Interest credited to policyholder account balances.................................. 1,002 167 1,192 -- 2,361 29 2,390 Capitalization of DAC...................... (584) (24) (24) -- (632) -- (632) Amortization of DAC and VOBA............... 656 29 12 2 699 292 991 Interest expense on debt................... 5 1 9 133 148 4 152 Other expenses............................. 2,341 1,901 438 1,196 5,876 7 5,883 ---------- --------- ---------- --------- ---------- -------- --------- Total expenses........................... 9,714 14,654 6,179 1,330 31,877 471 32,348 ---------- --------- ---------- --------- ---------- -------- --------- Provision for income tax expense (benefit). 442 477 488 (236) 1,171 (116) 1,055 ---------- --------- ---------- --------- ---------- --------- Operating earnings......................... $ 822 $ 884 $ 906 $ 276 2,888 ========== ========= ========== ========= Adjustments to: Total revenues........................... 110 Total expenses........................... (471) Provision for income tax (expense) benefit................................. 116 ---------- Income (loss) from continuing operations, net of income tax......................... $ 2,643 $ 2,643 ========== ========= Group, Voluntary Corporate & Worksite Benefit Corporate At December 31, 2012 Retail Benefits Funding & Other Total ------------------------------------------- ---------- ---------- ---------- --------- ---------- (In millions) Total assets............................... $ 171,050 $ 41,362 $ 183,856 $ 32,996 $ 429,264 Separate account assets.................... $ 50,572 $ 532 $ 69,867 $ -- $ 120,971 Separate account liabilities............... $ 50,572 $ 532 $ 69,867 $ -- $ 120,971
F-33 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued)
Operating Earnings --------------------------------------------------- Group, Voluntary, Corporate & Worksite Benefit Corporate Total Year Ended December 31, 2011 Retail Benefits Funding & Other Total Adjustments Consolidated ------------------------------------------- ---------- ---------- --------- --------- --------- ----------- ------------ (In millions) Revenues Premiums................................... $ 4,022 $ 12,487 $ 1,778 $ 1 $ 18,288 $ -- $ 18,288 Universal life and investment-type product policy fees............................... 1,334 630 197 -- 2,161 41 2,202 Net investment income...................... 5,363 1,682 4,312 385 11,742 (127) 11,615 Other revenues............................. 226 374 242 966 1,808 -- 1,808 Net investment gains (losses).............. -- -- -- -- -- 132 132 Net derivative gains (losses).............. -- -- -- -- -- 1,578 1,578 ---------- --------- --------- -------- --------- --------- --------- Total revenues........................... 10,945 15,173 6,529 1,352 33,999 1,624 35,623 ---------- --------- --------- -------- --------- --------- --------- Expenses Policyholder benefits and claims and policyholder dividends.................... 6,425 11,880 3,683 4 21,992 44 22,036 Interest credited to policyholder account balances.................................. 1,000 178 1,140 -- 2,318 54 2,372 Capitalization of DAC...................... (622) (84) (18) -- (724) -- (724) Amortization of DAC and VOBA............... 681 95 14 1 791 84 875 Interest expense on debt................... 5 -- 8 172 185 9 194 Other expenses............................. 2,564 1,837 472 1,247 6,120 6 6,126 ---------- --------- --------- -------- --------- --------- --------- Total expenses........................... 10,053 13,906 5,299 1,424 30,682 197 30,879 ---------- --------- --------- -------- --------- --------- --------- Provision for income tax expense (benefit)................................. 314 445 432 (229) 962 498 1,460 ---------- --------- --------- -------- --------- --------- Operating earnings......................... $ 578 $ 822 $ 798 $ 157 2,355 ========== ========= ========= ======== Adjustments to: Total revenues........................... 1,624 Total expenses........................... (197) Provision for income tax (expense) benefit................................. (498) --------- Income (loss) from continuing operations, net of income tax......................... $ 3,284 $ 3,284 ========= ========= Group, Voluntary, Corporate & Worksite Benefit Corporate At December 31, 2011 Retail Benefits Funding & Other Total ------------------------------------------- ---------- ---------- --------- --------- --------- (In millions) Total assets............................... $ 160,164 $ 42,603 $ 164,244 $ 33,720 $ 400,731 Separate account assets.................... $ 43,229 $ 478 $ 62,971 $ -- $ 106,678 Separate account liabilities............... $ 43,229 $ 478 $ 62,971 $ -- $ 106,678
F-34 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued)
Operating Earnings ------------------------------------------------- Group, Voluntary, Corporate & Worksite Benefit Corporate Total Year Ended December 31, 2010 Retail Benefits Funding & Other Total Adjustments Consolidated ------------------------------------------- -------- ---------- --------- --------- --------- ----------- ------------ (In millions) Revenues Premiums................................... $ 4,125 $ 12,691 $ 1,702 $ 1 $ 18,519 $ -- $ 18,519 Universal life and investment-type product policy fees............................... 1,228 616 196 -- 2,040 35 2,075 Net investment income...................... 5,675 1,617 4,156 141 11,589 (8) 11,581 Other revenues............................. 163 358 240 964 1,725 -- 1,725 Net investment gains (losses).............. -- -- -- -- -- (170) (170) Net derivative gains (losses).............. -- -- -- -- -- (266) (266) -------- --------- -------- -------- --------- --------- --------- Total revenues........................... 11,191 15,282 6,294 1,106 33,873 (409) 33,464 -------- --------- -------- -------- --------- --------- --------- Expenses Policyholder benefits and claims and policyholder dividends.................... 6,504 12,122 3,511 (18) 22,119 31 22,150 Interest credited to policyholder account balances.................................. 1,026 192 1,252 -- 2,470 53 2,523 Capitalization of DAC...................... (530) (97) (13) -- (640) -- (640) Amortization of DAC and VOBA............... 593 96 15 1 705 104 809 Interest expense on debt................... 5 -- 8 189 202 15 217 Other expenses............................. 2,411 1,843 459 1,181 5,894 2 5,896 -------- --------- -------- -------- --------- --------- --------- Total expenses........................... 10,009 14,156 5,232 1,353 30,750 205 30,955 -------- --------- -------- -------- --------- --------- --------- Provision for income tax expense (benefit)................................. 415 395 371 (208) 973 (204) 769 -------- --------- -------- -------- --------- --------- Operating earnings......................... $ 767 $ 731 $ 691 $ (39) 2,150 ======== ========= ======== ======== Adjustments to: Total revenues........................... (409) Total expenses........................... (205) Provision for income tax (expense) benefit................................. 204 --------- Income (loss) from continuing operations, net of income tax............. $ 1,740 $ 1,740 ========= =========
Net investment income is based upon the actual results of each segment's specifically identifiable investment 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. The following table presents total premiums, universal life and investment-type product policy fees and other revenues by major product groups of the Company's segments, as well as Corporate & Other:
Years Ended December 31, ----------------------------- 2012 2011 2010 --------- --------- --------- (In millions) Life insurance (1)............ $ 17,224 $ 16,209 $ 16,204 Accident and health insurance. 6,458 5,940 5,982 Non-insurance................. 167 149 133 --------- --------- --------- Total........................ $ 23,849 $ 22,298 $ 22,319 ========= ========= =========
-------- (1) Includes annuities and corporate benefit funding products. F-35 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) Revenues derived from one external customer were $2.5 billion, $2.4 billion and $2.2 billion for the years ended December 31, 2012, 2011 and 2010, respectively, which represented 11%, 11% and 10%, respectively, of consolidated premiums, universal life and investment-type product policy fees and other revenues. Revenues derived from any other customer did not exceed 10% of consolidated premiums, universal life and investment-type product policy fees and other revenues for the years ended December 31, 2012, 2011 and 2010. Substantially all of the Company's consolidated premiums, universal life & investment-type product policy fees and other revenues originated in the U.S. 3. Discontinued Operations The following table summarizes the amounts that have been reflected as discontinued operations in the consolidated statements of operations. Income (loss) from discontinued operations includes real estate classified as held-for-sale or sold.
Years ended December 31, ----------------------- 2012 2011 2010 ------- ------- ------- (In millions) Total revenues.......................................................... $ 62 $ 105 $ 37 Total expenses.......................................................... -- -- -- ------- ------- ------- Income (loss) before provision for income tax........................... 62 105 37 Provision for income tax expense (benefit).............................. 22 37 12 ------- ------- ------- Income (loss) from operations of discontinued operations, net of income tax................................................................... 40 68 25 Gain (loss) on disposal of operations, net of income tax................ -- (7) 6 ------- ------- ------- Income (loss) from discontinued operations, net of income tax........... $ 40 $ 61 $ 31 ======= ======= =======
4. Insurance Insurance Liabilities Insurance liabilities, including affiliated insurance liabilities on reinsurance assumed and ceded, are comprised of future policy benefits, PABs and other policy-related balances. Information regarding insurance liabilities by segment, as well as Corporate & Other, was as follows at:
December 31, ------------------------- 2012 2011 ------------ ------------ (In millions) Retail............................... $ 92,322 $ 92,352 Group, Voluntary & Worksite Benefits. 28,517 27,480 Corporate Benefit Funding............ 93,051 83,752 Corporate & Other.................... 475 481 ------------ ------------ Total............................... $ 214,365 $ 204,065 ============ ============
See Note 2 for information on the reorganization of the Company's segments during 2012, which was retrospectively applied. See Note 6 for discussion of affiliated reinsurance liabilities included in the table above. F-36 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) Future policy benefits are measured as follows: Product Type: Measurement Assumptions: ------------------------------------------------------------------- Participating life Aggregate of (i) net level premium reserves for death and endowment policy benefits (calculated based upon the non-forfeiture interest rate, ranging from 3% to 7%, and mortality rates guaranteed in calculating the cash surrender values described in such contracts); and (ii) the liability for terminal dividends. ------------------------------------------------------------------- Non-participating life Aggregate of the present value of expected future benefit payments and related expenses less the present value of expected future net premiums. Assumptions as to mortality and persistency are based upon the Company's experience when the basis of the liability is established. Interest rate assumptions for the aggregate future policy benefit liabilities range from 2% to 10%. ------------------------------------------------------------------- Individual and group Present value of expected future traditional fixed annuities payments. Interest rate assumptions after annuitization used in establishing such liabilities range from 1% to 11%. ------------------------------------------------------------------- Non-medical health The net level premium method and insurance assumptions as to future morbidity, withdrawals and interest, which provide a margin for adverse deviation. Interest rate assumptions used in establishing such liabilities range from 4% to 7%. ------------------------------------------------------------------- Disabled lives Present value of benefits method and experience assumptions as to claim terminations, expenses and interest. Interest rate assumptions used in establishing such liabilities range from 2% to 8%. ------------------------------------------------------------------- Participating business represented 5% and 6% of the Company's life insurance in-force at December 31, 2012 and 2011, respectively. Participating policies represented 29%, 32% and 32% of gross life insurance premiums for the years ended December 31, 2012, 2011 and 2010, respectively. PABs are equal to: (i) policy account values, which consist of an accumulation of gross premium payments; (ii) credited interest, ranging from 1% to 13%, less expenses, mortality charges and withdrawals; and (iii) fair value adjustments relating to business combinations. F-37 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) Guarantees The Company issues variable annuity products with guaranteed minimum benefits. The non-life contingent portion of GMWBs and the portion of certain GMIBs that does not require annuitization are accounted for as embedded derivatives in PABs and are further discussed in Note 9. Guarantees accounted for as insurance liabilities include: Guarantee: Measurement Assumptions: ------------------------------------------------------------------------------------ GMDBs . A return of purchase payment upon . Present value of expected death death even if the account value is benefits in excess of the reduced to zero. projected account balance recognizing the excess ratably over the accumulation period based on the present value of total expected assessments. ------------------------------------------------------------------------------------ . An enhanced death benefit may be . Assumptions are consistent with available for an additional fee. those used for amortizing DAC, and are thus subject to the same variability and risk. . Investment performance and volatility assumptions are consistent with the historical experience of the appropriate underlying equity index, such as the S&P 500 Index. . Benefit assumptions are based on the average benefits payable over a range of scenarios. ------------------------------------------------------------------------------------ GMIBs . After a specified period of time . Present value of expected income determined at the time of issuance benefits in excess of the of the variable annuity contract, projected account balance at any a minimum accumulation of purchase future date of annuitization and payments, even if the account recognizing the excess ratably value is reduced to zero, that can over the accumulation period based be annuitized to receive a monthly on present value of total expected income stream that is not less assessments. than a specified amount. . Certain contracts also provide for . Assumptions are consistent with a guaranteed lump sum return of those used for estimating GMDBs purchase premium in lieu of the liabilities. annuitization benefit. . Calculation incorporates an assumption for the percentage of the potential annuitizations that may be elected by the contractholder. ------------------------------------------------------------------------------------ GMWBs. . A return of purchase payment via . Expected value of the life partial withdrawals, even if the contingent payments and expected account value is reduced to zero, assessments using assumptions provided that cumulative consistent with those used for withdrawals in a contract year do estimating the GMDBs liabilities. not exceed a certain limit. . Certain contracts include guaranteed withdrawals that are life contingent.
F-38 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) The Company also issues annuity contracts that apply a lower rate of funds deposited if the contractholder elects to surrender the contract for cash and a higher rate if the contractholder elects to annuitize ("two tier annuities"). These guarantees include benefits that are payable in the event of death, maturity or at annuitization. Additionally, the Company issues universal and variable life contracts where the Company contractually guarantees to the contractholder a secondary guarantee or a guaranteed paid-up benefit. Information regarding the liabilities for guarantees (excluding base policy liabilities and embedded derivatives) relating to annuity and universal and variable life contracts was as follows:
Universal and Variable Annuity Contracts Life Contracts ---------------- --------------------- Secondary Paid-Up GMDBs GMIBs Guarantees Guarantees Total ------- -------- ---------- ---------- -------- (In millions) Direct Balance at January 1, 2010................................................. $ 57 $ 89 $ 67 $ 21 $ 234 Incurred guaranteed benefits............................................... 10 24 179 28 241 Paid guaranteed benefits................................................... (6) -- -- -- (6) ------- -------- ------- ------- -------- Balance at December 31, 2010............................................... 61 113 246 49 469 Incurred guaranteed benefits............................................... 30 45 15 9 99 Paid guaranteed benefits................................................... (7) -- -- -- (7) ------- -------- ------- ------- -------- Balance at December 31, 2011............................................... 84 158 261 58 561 Incurred guaranteed benefits............................................... 31 174 79 10 294 Paid guaranteed benefits................................................... (6) -- -- -- (6) ------- -------- ------- ------- -------- Balance at December 31, 2012............................................... $ 109 $ 332 $ 340 $ 68 $ 849 ======= ======== ======= ======= ======== Ceded Balance at January 1, 2010................................................. $ 37 $ 28 $ 44 $ 8 $ 117 Incurred guaranteed benefits............................................... 13 8 165 26 212 Paid guaranteed benefits................................................... (6) -- -- -- (6) ------- -------- ------- ------- -------- Balance at December 31, 2010............................................... 44 36 209 34 323 Incurred guaranteed benefits............................................... 25 16 3 7 51 Paid guaranteed benefits................................................... (7) -- -- -- (7) ------- -------- ------- ------- -------- Balance at December 31, 2011............................................... 62 52 212 41 367 Incurred guaranteed benefits............................................... 30 58 53 6 147 Paid guaranteed benefits................................................... (6) -- -- -- (6) ------- -------- ------- ------- -------- Balance at December 31, 2012............................................... $ 86 $ 110 $ 265 $ 47 $ 508 ======= ======== ======= ======= ======== Net Balance at January 1, 2010................................................. $ 20 $ 61 $ 23 $ 13 $ 117 Incurred guaranteed benefits............................................... (3) 16 14 2 29 Paid guaranteed benefits................................................... -- -- -- -- -- ------- -------- ------- ------- -------- Balance at December 31, 2010............................................... 17 77 37 15 146 Incurred guaranteed benefits............................................... 5 29 12 2 48 Paid guaranteed benefits................................................... -- -- -- -- -- ------- -------- ------- ------- -------- Balance at December 31, 2011............................................... 22 106 49 17 194 Incurred guaranteed benefits............................................... 1 116 26 4 147 Paid guaranteed benefits................................................... -- -- -- -- -- ------- -------- ------- ------- -------- Balance at December 31, 2012............................................... $ 23 $ 222 $ 75 $ 21 $ 341 ======= ======== ======= ======= ========
F-39 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) Account balances of contracts with insurance guarantees were invested in separate account asset classes as follows at:
December 31, ------------------- 2012 2011 --------- --------- (In millions) Fund Groupings: Equity.......... $ 19,623 $ 18,240 Balanced........ 19,235 14,368 Bond............ 4,771 4,221 Specialty....... 852 787 Money Market.... 192 211 --------- --------- Total.......... $ 44,673 $ 37,827 ========= =========
Based on the type of guarantee, the Company defines net amount at risk ("NAR") as listed below. These amounts include direct business, but exclude offsets from hedging or reinsurance, if any. Variable Annuity Guarantees In the Event of Death Defined as the guaranteed minimum death benefit less the total contract account value, as of the balance sheet date. It represents the amount of the claim that the Company would incur if death claims were filed on all contracts on the balance sheet date. At Annuitization Defined as the amount (if any) that would be required to be added to the total contract account value to purchase a lifetime income stream, based on current annuity rates, equal to the minimum amount provided under the guaranteed benefit. This amount represents the Company's potential economic exposure to such guarantees in the event all contractholders were to annuitize on the balance sheet date, even though the contracts contain terms that only allow annuitization of the guaranteed amount after the 10th anniversary of the contract, which not all contractholders have achieved. Two Tier Annuities Defined as the excess of the upper tier, adjusted for a profit margin, less the lower tier, as of the balance sheet date. These contracts apply a lower rate of funds if the contractholder elects to surrender the contract for cash and a higher rate if the contractholder elects to annuitize. Universal and Variable Life Contracts Defined as the guarantee amount less the account value, as of the balance sheet date. It represents the amount of the claim that the Company would incur if death claims were filed on all contracts on the balance sheet date. F-40 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) Information regarding the types of guarantees relating to annuity contracts and universal and variable life contracts was as follows at:
December 31, -------------------------------------------------------------- 2012 2011 --------------------------- ------------------------------- In the At In the Event of Death Annuitization Event of Death At Annuitization -------------- ------------- -------------- ---------------- (In millions) Annuity Contracts (1) Variable Annuity Guarantees Total contract account value..... $ 55,469 $ 24,229 $ 48,671 $ 18,378 Separate account value............. $ 43,327 $ 22,963 $ 36,327 $ 17,024 Net amount at risk.. $ 902 $ 845 (2) $ 1,894 $ 413 (2) Average attained age of contractholders... 64 years 60 years 63 years 60 years Two Tier Annuities General account value............. N/A $ 274 N/A $ 276 Net amount at risk.. N/A $ 48 N/A $ 49 Average attained age of contractholders... N/A 64 years N/A 63 years December 31, -------------------------------------------------------------- 2012 2011 --------------------------- ------------------------------- Secondary Paid-Up Secondary Paid-Up Guarantees Guarantees Guarantees Guarantees -------------- ------------- -------------- ---------------- (In millions) Universal and Variable Life Contracts (1) Account value (general and separate account). $ 6,958 $ 1,163 $ 6,535 $ 1,206 Net amount at risk.. $ 85,216 $ 9,299 $ 88,999 $ 9,977 Average attained age of policyholders..... 52 years 59 years 51 years 58 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 Company had previously disclosed the NAR based on the excess of the benefit base over the contractholder's total contract account value on the balance sheet date. Such amounts were $1.9 billion and $2.6 billion at December 31, 2012 and 2011, respectively. The Company has provided, in the table above, the NAR as defined above. The Company believes that this definition is more representative of the potential economic exposures of these guarantees as the contractholders do not have access to this difference other than through annuitization. Obligations Under Funding Agreements The Company issues fixed and floating rate funding agreements, which are denominated in either U.S. dollars or foreign currencies, to certain special purpose entities ("SPEs") that have issued either debt securities or commercial paper for which payment of interest and principal is secured by such funding agreements. During the years ended December 31, 2012, 2011 and 2010, the Company issued $24.7 billion, $27.4 billion and $15.0 billion, respectively, and repaid $21.5 billion, $28.2 billion and $12.3 billion, respectively, of such funding agreements. At December 31, 2012 and 2011, liabilities for funding agreements outstanding, which are included in PABs, were $23.9 billion and $20.1 billion, respectively. F-41 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) Metropolitan Life Insurance Company and General American Life Insurance Company ("GALIC"), a subsidiary, are members of the Federal Home Loan Bank ("FHLB"). Holdings of FHLB common stock by branch, included in equity securities, were as follows at:
December 31, ------------- 2012 2011 ------ ------ (In millions) FHLB of New York... $ 736 $ 658 FHLB of Des Moines. $ 55 $ 31
The Company has also entered into funding agreements. The liability for funding agreements is included in PABs. Information related to the funding agreements was as follows at:
Liability Collateral ------------------- -------------------------- December 31, ---------------------------------------------- 2012 2011 2012 2011 --------- --------- ------------ ------------- (In millions) FHLB of New York (1)... $ 13,512 $ 11,655 $ 14,611(2) $ 13,002 (2) Farmer Mac (3)......... $ 2,550 $ 2,550 $ 2,929 $ 2,927 FHLB of Des Moines (1). $ 1,000 $ 475 $ 1,298(2) $ 662 (2)
-------- (1)Represents funding agreements issued to the FHLB in exchange for cash and for which the FHLB has been granted a lien on certain assets, which are in the custody of the FHLB, including residential mortgage-backed securities ("RMBS"), to collateralize obligations under advances evidenced by funding agreements. The Company is permitted to withdraw any portion of the collateral in the custody of the FHLB as long as there is no event of default and the remaining qualified collateral is sufficient to satisfy the collateral maintenance level. Upon any event of default by the Company, the FHLB's recovery on the collateral is limited to the amount of the Company's liability to the FHLB. (2)Advances are collateralized by mortgage-backed securities. The amount of collateral presented is at estimated fair value. (3)Represents funding agreements issued to certain SPEs that have issued debt securities for which payment of interest and principal is secured by such funding agreements, and such debt securities are also guaranteed as to payment of interest and principal by the Federal Agricultural Mortgage Corporation, a federally chartered instrumentality of the U.S. ("Farmer Mac"). The obligations under these funding agreements are secured by a pledge of certain eligible agricultural real estate mortgage loans and may, under certain circumstances, be secured by other qualified collateral. The amount of collateral presented is at carrying value. F-42 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) Liabilities for Unpaid Claims and Claim Expenses Information regarding the liabilities for unpaid claims and claim expenses relating to group accident and non-medical health policies and contracts, which are reported in future policy benefits and other policy-related balances, was as follows:
Years Ended December 31, -------------------------- 2012 2011 2010 -------- -------- -------- (In millions) Balance at January 1,............................. $ 6,622 $ 6,539 $ 6,302 Less: Reinsurance recoverables.................. 324 448 354 -------- -------- -------- Net balance at January 1,......................... 6,298 6,091 5,948 -------- -------- -------- Incurred related to: Current year.................................... 4,320 3,856 3,733 Prior years..................................... (42) (79) 13 -------- -------- -------- Total incurred................................. 4,278 3,777 3,746 -------- -------- -------- Paid related to: Current year.................................... (2,626) (2,282) (2,244) Prior years..................................... (1,425) (1,288) (1,359) -------- -------- -------- Total paid..................................... (4,051) (3,570) (3,603) -------- -------- -------- Net balance at December 31,....................... 6,525 6,298 6,091 Add: Reinsurance recoverables..................... 301 324 448 -------- -------- -------- Balance at December 31,........................... $ 6,826 $ 6,622 $ 6,539 ======== ======== ========
During 2012 and 2011, claims and claim adjustment expenses associated with prior years decreased by $42 million and $79 million, respectively, due to improved loss ratios for non-medical health claim liabilities. During 2010, claims and claim adjustment expenses associated with prior years increased by $13 million due to differences between the actual benefits paid and expected benefits owed during those periods. Separate Accounts Separate account assets and liabilities include two categories of account types: pass-through separate accounts totaling $71.7 billion and $62.7 billion at December 31, 2012 and 2011, respectively, for which the policyholder assumes all investment risk, and separate accounts for which the Company contractually guarantees either a minimum return or account value to the policyholder which totaled $49.3 billion and $44.0 billion at December 31, 2012 and 2011, respectively. The latter category consisted primarily of funding agreements and participating close-out contracts. The average interest rate credited on these contracts was 2.80% and 3.12% at December 31, 2012 and 2011, respectively. For the years ended December 31, 2012, 2011 and 2010, there were no investment gains (losses) on transfers of assets from the general account to the separate accounts. 5. Deferred Policy Acquisition Costs, Value of Business Acquired and Other Policy-Related Intangibles See Note 1 for a description of capitalized acquisition costs. F-43 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) Non-Participating and Non-Dividend-Paying Traditional Contracts The Company amortizes DAC and VOBA related to these contracts (term insurance, non-participating whole life insurance, traditional group life insurance, and non-medical health insurance) over the appropriate premium paying period in proportion to the actual historic and expected future gross premiums that were set at contract issue. The expected premiums are based upon the premium requirement of each policy and assumptions for mortality, morbidity, persistency and investment returns at policy issuance, or policy acquisition (as it relates to VOBA), include provisions for adverse deviation, and are consistent with the assumptions used to calculate future policyholder benefit liabilities. These assumptions are not revised after policy issuance or acquisition unless the DAC or VOBA balance is deemed to be unrecoverable from future expected profits. Absent a premium deficiency, variability in amortization after policy issuance or acquisition is caused only by variability in premium volumes. Participating, Dividend-Paying Traditional Contracts The Company amortizes DAC and VOBA related to these contracts over the estimated lives of the contracts in proportion to actual and expected future gross margins. The amortization includes interest based on rates in effect at inception or acquisition of the contracts. The future gross margins are dependent principally on investment returns, policyholder dividend scales, mortality, persistency, expenses to administer the business, creditworthiness of reinsurance counterparties and certain economic variables, such as inflation. For participating contracts within the closed block (dividend-paying traditional contracts) future gross margins are also dependent upon changes in the policyholder dividend obligation. See Note 7. Of these factors, the Company anticipates that investment returns, expenses, persistency and other factor changes, as well as policyholder dividend scales are reasonably likely to impact significantly the rate of DAC and VOBA amortization. Each reporting period, the Company updates the estimated gross margins with the actual gross margins for that period. When the actual gross margins change from previously estimated gross margins, the cumulative DAC and VOBA amortization is re-estimated and adjusted by a cumulative charge or credit to current operations. When actual gross margins exceed those previously estimated, the DAC and VOBA amortization will increase, resulting in a current period charge to earnings. The opposite result occurs when the actual gross margins are below the previously estimated gross margins. Each reporting period, the Company also updates the actual amount of business in-force, which impacts expected future gross margins. When expected future gross margins are below those previously estimated, the DAC and VOBA amortization will increase, resulting in a current period charge to earnings. The opposite result occurs when the expected future gross margins are above the previously estimated expected future gross margins. Each period, the Company also reviews the estimated gross margins for each block of business to determine the recoverability of DAC and VOBA balances. Fixed and Variable Universal Life Contracts and Fixed and Variable Deferred Annuity Contracts The Company amortizes DAC and VOBA related to these contracts over the estimated lives of the contracts in proportion to actual and expected future gross profits. The amortization includes interest based on rates in effect at inception or acquisition of the contracts. The amount of future gross profits is dependent principally upon returns in excess of the amounts credited to policyholders, mortality, persistency, interest crediting rates, expenses to administer the business, creditworthiness of reinsurance counterparties, the effect of any hedges used and certain economic variables, such as inflation. Of these factors, the Company anticipates that investment returns, expenses and persistency are reasonably likely to 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 F-44 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) cumulative DAC and VOBA amortization is re-estimated and adjusted by a cumulative charge or credit to current operations. When actual gross profits exceed those previously estimated, the DAC and VOBA amortization will increase, resulting in a current period charge to earnings. The opposite result occurs when the actual gross profits are below the previously estimated gross profits. Each reporting period, the Company also updates the actual amount of business remaining in-force, which impacts expected future gross profits. When expected future gross profits are below those previously estimated, the DAC and VOBA amortization will increase, resulting in a current period charge to earnings. The opposite result occurs when the expected future gross profits are above the previously estimated expected future gross profits. Each period, the Company also reviews the estimated gross profits for each block of business to determine the recoverability of DAC and VOBA balances. Factors Impacting Amortization Separate account rates of return on variable universal life contracts and variable deferred annuity contracts affect in-force account balances on such contracts each reporting period, which can result in significant fluctuations in amortization of DAC and VOBA. Returns that are higher than the Company's long-term expectation produce higher account balances, which increases the Company's future fee expectations and decreases future benefit payment expectations on minimum death and living benefit guarantees, resulting in higher expected future gross profits. The opposite result occurs when returns are lower than the Company's long-term expectation. The Company's practice to determine the impact of gross profits resulting from returns on separate accounts assumes that long-term appreciation in equity markets is not changed by short-term market fluctuations, but is only changed when sustained interim deviations are expected. The Company monitors these events and only changes the assumption when its long-term expectation changes. The Company also periodically reviews other long-term assumptions underlying the projections of estimated gross margins and profits. These assumptions primarily relate to investment returns, policyholder dividend scales, interest crediting rates, mortality, persistency and expenses to administer business. Management annually updates assumptions used in the calculation of estimated gross margins and profits which may have significantly changed. If the update of assumptions causes expected future gross margins and profits to increase, DAC and VOBA amortization will decrease, resulting in a current period increase to earnings. The opposite result occurs when the assumption update causes expected future gross margins and profits to decrease. Periodically, the Company modifies product benefits, features, rights or coverages that occur by the exchange of a contract for a new contract, or by amendment, endorsement, or rider to a contract, or by election or coverage within a contract. If such modification, referred to as an internal replacement, substantially changes the contract, the associated DAC or VOBA is written off immediately through income and any new deferrable costs associated with the replacement contract are deferred. If the modification does not substantially change the contract, the DAC or VOBA amortization on the original contract will continue and any acquisition costs associated with the related modification are expensed. Amortization of DAC and VOBA is attributed to both investment gains and losses and to other expenses for the amount of gross margins or profits originating from transactions other than investment gains and losses. Unrealized investment gains and losses represent the amount of DAC and VOBA that would have been amortized if such gains and losses had been recognized. F-45 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) Information regarding DAC and VOBA was as follows:
Years Ended December 31, -------------------------- 2012 2011 2010 -------- -------- -------- (In millions) DAC Balance at January 1,................................................. $ 6,244 $ 6,640 $ 7,639 Capitalizations....................................................... 632 724 640 Amortization related to: Net investment gains (losses)....................................... (270) (88) (108) Other expenses...................................................... (709) (777) (687) -------- -------- -------- Total amortization................................................. (979) (865) (795) -------- -------- -------- Unrealized investment gains (losses).................................. (145) (255) (844) -------- -------- -------- Balance at December 31,............................................... 5,752 6,244 6,640 -------- -------- -------- VOBA Balance at January 1,................................................. 97 115 136 Amortization related to: Other expenses...................................................... (12) (10) (14) -------- -------- -------- Total amortization................................................. (12) (10) (14) -------- -------- -------- Unrealized investment gains (losses).................................. (5) (8) (7) -------- -------- -------- Balance at December 31,............................................... 80 97 115 -------- -------- -------- Total DAC and VOBA Balance at December 31,............................................... $ 5,832 $ 6,341 $ 6,755 ======== ======== ========
See Note 1 for information on the retrospective application of the adoption of new accounting guidance related to DAC. See Note 2 for information on the reorganization of the Company's segments during 2012, which was retrospectively applied. Information regarding total DAC and VOBA by segment, as well as Corporate & Other, was as follows at:
December 31, ----------------- 2012 2011 -------- -------- (In millions) Retail................................................................ $ 5,407 $ 5,921 Group, Voluntary & Worksite Benefits.................................. 337 342 Corporate Benefit Funding............................................. 88 76 Corporate & Other..................................................... -- 2 -------- -------- Total............................................................... $ 5,832 $ 6,341 ======== ========
F-46 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) Information regarding other policy-related intangibles was as follows:
Years Ended December 31, ------------------------ 2012 2011 2010 ------ ------ ------ (In millions) Deferred Sales Inducements Balance at January 1,...... $ 184 $ 190 $ 173 Capitalization............. 22 29 42 Amortization............... (26) (35) (25) ------ ------ ------ Balance at December 31,.... $ 180 $ 184 $ 190 ====== ====== ====== VODA and VOCRA Balance at January 1,...... $ 378 $ 400 $ 412 Acquisitions............... -- -- 7 Amortization............... (25) (22) (19) ------ ------ ------ Balance at December 31,.... $ 353 $ 378 $ 400 ====== ====== ====== Accumulated amortization... $ 104 $ 79 $ 57 ====== ====== ======
The estimated future amortization expense to be reported in other expenses for the next five years is as follows:
VOBA VODA and VOCRA ------- -------------- (In millions) 2013.......................... $ 11 $ 28 2014.......................... $ 9 $ 30 2015.......................... $ 8 $ 30 2016.......................... $ 4 $ 30 2017.......................... $ 5 $ 28
6. Reinsurance The Company enters into reinsurance agreements primarily as a purchaser for reinsurance for its various insurance products and also as a provider of reinsurance for some insurance products issued by affiliated and unaffiliated companies. The Company participates in reinsurance activities in order to limit losses, minimize exposure to significant risks and provide additional capacity for future growth. Accounting for reinsurance requires extensive use of assumptions and estimates, particularly related to the future performance of the underlying business and the potential impact of counterparty credit risks. The Company periodically reviews actual and anticipated experience compared to the aforementioned assumptions used to establish assets and liabilities relating to ceded and assumed reinsurance and evaluates the financial strength of counterparties to its reinsurance agreements using criteria similar to that evaluated in the security impairment process discussed in Note 8. For its individual life insurance products, the Company has historically reinsured the mortality risk primarily on an excess of retention basis or on a quota share basis. The Company currently reinsures 90% of the mortality F-47 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) risk in excess of $2 million for most products and reinsures up to 90% of the mortality risk for certain other products. In addition to reinsuring mortality risk as described above, the Company reinsures other risks, as well as specific coverages. Placement of reinsurance is done primarily on an automatic basis and also on a facultative basis for risks with specified characteristics. On a case by case basis, the Company may retain up to $20 million per life and reinsure 100% of amounts in excess of the amount the Company retains. The Company evaluates its reinsurance programs routinely and may increase or decrease its retention at any time. For other policies within the Group, Voluntary and Worksite Benefits segment, the Company generally retains most of the risk and only cedes particular risks on certain client arrangements. The Company's Retail Annuities business assumes 90% of the fixed annuities issued by several affiliates. The Company also reinsures 100% of the living and death benefit guarantees issued in connection with its variable annuities issued since 2004 to an affiliated reinsurer and certain portions of the living and death benefit guarantees issued in connection with its variable annuities issued prior to 2004 to affiliated and unaffiliated reinsurers. Under these reinsurance agreements, the Company pays a reinsurance premium generally based on fees associated with the guarantees collected from policyholders, and receives reimbursement for benefits paid or accrued in excess of account values, subject to certain limitations. The value of the embedded derivatives on the ceded risk is determined using a methodology consistent with the guarantees directly written by the Company with the exception of the input for nonperformance risk that reflects the credit of the reinsurer. The Company's Corporate Benefit Funding segment periodically engages in reinsurance activities, as considered appropriate. The impact of these activities on the financial results of this segment has not been significant. The Company has exposure to catastrophes, which could contribute to significant fluctuations in the Company's results of operations. The Company uses excess of retention and quota share reinsurance agreements to provide greater diversification of risk and minimize exposure to larger risks. The Company reinsures its business through a diversified group of well-capitalized, highly rated reinsurers. The Company analyzes recent trends in arbitration and litigation outcomes in disputes, if any, with its reinsurers. The Company monitors ratings and evaluates the financial strength of its reinsurers by analyzing their financial statements. In addition, the reinsurance recoverable balance due from each reinsurer is evaluated as part of the overall monitoring process. Recoverability of reinsurance recoverable balances is evaluated based on these analyses. The Company generally secures large reinsurance recoverable balances with various forms of collateral, including secured trusts, funds withheld accounts and irrevocable letters of credit. These reinsurance recoverable balances are stated net of allowances for uncollectible reinsurance, which at December 31, 2012 and 2011, were not significant. The Company has secured certain reinsurance recoverable balances with various forms of collateral, including secured trusts, funds withheld accounts and irrevocable letters of credit. The Company had $2.4 billion and $2.3 billion of unsecured unaffiliated reinsurance recoverable balances at December 31, 2012 and 2011, respectively. At December 31, 2012, the Company had $5.4 billion of net unaffiliated ceded reinsurance recoverables. Of this total, $4.4 billion, or 82%, were with the Company's five largest unaffiliated ceded reinsurers, including $1.8 billion of net unaffiliated ceded reinsurance recoverables which were unsecured. At December 31, 2011, the Company had $5.4 billion of net unaffiliated ceded reinsurance recoverables. Of this total, $4.2 billion, or 78%, were with the Company's five largest unaffiliated ceded reinsurers, including $1.6 billion of net unaffiliated ceded reinsurance recoverables which were unsecured. F-48 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) The Company has reinsured with an unaffiliated third-party reinsurer 49.25% of the closed block through a modified coinsurance agreement. The Company accounts for this agreement under the deposit method of accounting. The Company, having the right of offset, has offset the modified coinsurance deposit with the deposit recoverable. The amounts in the consolidated statements of operations include the impact of reinsurance. Information regarding the significant effects of reinsurance was as follows:
Years Ended December 31, ----------------------------- 2012 2011 2010 --------- --------- --------- (In millions) Premiums: Direct premiums............................................... $ 19,821 $ 18,435 $ 18,793 Reinsurance assumed........................................... 1,350 1,240 1,155 Reinsurance ceded............................................. (1,291) (1,387) (1,429) --------- --------- --------- Net premiums................................................. $ 19,880 $ 18,288 $ 18,519 ========= ========= ========= Universal life and investment-type product policy fees: Direct universal life and investment-type product policy fees. $ 2,763 $ 2,686 $ 2,627 Reinsurance assumed........................................... 39 38 13 Reinsurance ceded............................................. (563) (522) (565) --------- --------- --------- Net universal life and investment-type product policy fees... $ 2,239 $ 2,202 $ 2,075 ========= ========= ========= Other revenues: Direct other revenues......................................... $ 887 $ 836 $ 750 Reinsurance assumed........................................... (6) (6) (5) Reinsurance ceded............................................. 849 978 980 --------- --------- --------- Net other revenues........................................... $ 1,730 $ 1,808 $ 1,725 ========= ========= ========= Policyholder benefits and claims: Direct policyholder benefits and claims....................... $ 22,677 $ 21,100 $ 21,246 Reinsurance assumed........................................... 1,208 1,069 1,235 Reinsurance ceded............................................. (1,616) (1,488) (1,774) --------- --------- --------- Net policyholder benefits and claims......................... $ 22,269 $ 20,681 $ 20,707 ========= ========= ========= Other expenses: Direct other expenses......................................... $ 5,328 $ 5,280 $ 5,167 Reinsurance assumed........................................... 479 458 462 Reinsurance ceded............................................. 587 733 653 --------- --------- --------- Net other expenses........................................... $ 6,394 $ 6,471 $ 6,282 ========= ========= =========
F-49 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) The amounts in the consolidated balance sheets include the impact of reinsurance. Information regarding the significant effects of reinsurance was as follows at:
December 31, --------------------------------------------------------------------------------- 2012 2011 ---------------------------------------- ---------------------------------------- Total Total Balance Balance Direct Assumed Ceded Sheet Direct Assumed Ceded Sheet ---------- -------- --------- ---------- ---------- -------- --------- ---------- (In millions) Assets: Premiums, reinsurance and other receivables...................... $ 1,613 $ 480 $ 22,628 $ 24,721 $ 1,383 $ 485 $ 26,113 $ 27,981 Deferred policy acquisition costs and value of business acquired......................... 5,685 460 (313) 5,832 6,337 386 (382) 6,341 ---------- -------- --------- ---------- ---------- -------- --------- ---------- Total assets.................... $ 7,298 $ 940 $ 22,315 $ 30,553 $ 7,720 $ 871 $ 25,731 $ 34,322 ========== ======== ========= ========== ========== ======== ========= ========== Liabilities: Future policy benefits............ $ 112,264 $ 1,722 $ -- $ 113,986 $ 107,713 $ 1,620 $ -- $ 109,333 Policyholder account balances..... 94,454 262 -- 94,716 88,557 299 -- 88,856 Other policy-related balances..... 5,401 291 (29) 5,663 5,631 294 (49) 5,876 Other liabilities................. 9,544 7,327 17,070 33,941 8,068 7,574 20,972 36,614 ---------- -------- --------- ---------- ---------- -------- --------- ---------- Total liabilities............... $ 221,663 $ 9,602 $ 17,041 $ 248,306 $ 209,969 $ 9,787 $ 20,923 $ 240,679 ========== ======== ========= ========== ========== ======== ========= ==========
Reinsurance agreements that do not expose the Company to a reasonable possibility of a significant loss from insurance risk are recorded using the deposit method of accounting. The deposit assets on reinsurance were $13.9 billion and $17.9 billion at December 31, 2012 and 2011, respectively. The deposit liabilities on reinsurance were $6.9 billion and $7.0 billion at December 31, 2012 and 2011, respectively. Related Party Reinsurance Transactions The Company has reinsurance agreements with certain of MetLife, Inc.'s subsidiaries, including Exeter Reassurance Company Ltd. ("Exeter"), First MetLife Investors Insurance Company, MetLife Insurance Company of Connecticut ("MICC"), MetLife Investors USA Insurance Company, MetLife Investors Insurance Company, MetLife Reinsurance Company of Charleston ("MRC"), MetLife Reinsurance Company of Vermont and Metropolitan Tower Life Insurance Company, all of which are related parties. F-50 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) Information regarding the significant effects of affiliated reinsurance included in the consolidated statements of operations was as follows:
Years Ended December 31, -------------------------- 2012 2011 2010 -------- -------- -------- (In millions) Premiums: Reinsurance assumed............................................................. $ 319 $ 169 $ 88 Reinsurance ceded............................................................... (54) (51) (63) -------- -------- -------- Net premiums.................................................................. $ 265 $ 118 $ 25 ======== ======== ======== Universal life and investment-type product policy fees: Reinsurance assumed............................................................. $ 39 $ 38 $ 13 Reinsurance ceded............................................................... (216) (170) (230) -------- -------- -------- Net universal life and investment-type product policy fees.................... $ (177) $ (132) $ (217) ======== ======== ======== Other revenues: Reinsurance assumed............................................................. $ (6) $ (7) $ (5) Reinsurance ceded............................................................... 790 916 908 -------- -------- -------- Net other revenues............................................................ $ 784 $ 909 $ 903 ======== ======== ======== Policyholder benefits and claims: Reinsurance assumed............................................................. $ 334 $ 175 $ 112 Reinsurance ceded............................................................... (177) (121) (129) -------- -------- -------- Net policyholder benefits and claims.......................................... $ 157 $ 54 $ (17) ======== ======== ======== Other expenses: Reinsurance assumed............................................................. $ 357 $ 352 $ 362 Reinsurance ceded............................................................... 789 914 824 -------- -------- -------- Net other expenses............................................................ $ 1,146 $ 1,266 $ 1,186 ======== ======== ========
Information regarding the significant effects of affiliated reinsurance included in the consolidated balance sheets was as follows at:
December 31, ------------------------------------- 2012 2011 ------------------ ------------------ Assumed Ceded Assumed Ceded -------- --------- -------- --------- (In millions) Assets: Premiums, reinsurance and other receivables (1)......... $ 85 $ 16,925 $ 44 $ 20,469 Deferred policy acquisition costs and value of business acquired.............................................. 435 (266) 359 (286) -------- --------- -------- --------- Total assets........................................... $ 520 $ 16,659 $ 403 $ 20,183 ======== ========= ======== ========= Liabilities: Future policy benefits.................................. $ 567 $ -- $ 442 $ -- Policyholder account balances........................... 251 -- 266 -- Other policy-related balances........................... 57 (29) 59 (49) Other liabilities (1)................................... 6,906 14,652 7,114 18,707 -------- --------- -------- --------- Total liabilities...................................... $ 7,781 $ 14,623 $ 7,881 $ 18,658 ======== ========= ======== =========
F-51 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) (1)Effective in June 2012, the Company recaptured 10% of the 40.75% of the closed block liabilities that were ceded to MRC on a coinsurance with funds withheld basis. In connection with this partial recapture, the Company recognized a decrease of $3.9 billion in the deposit receivable included within premiums, reinsurance and other receivables as well as an offsetting decrease of $3.9 billion in the funds withheld included within other liabilities at December 31, 2012. MLIC ceded two blocks of business to two affiliates on a 75% coinsurance with funds withheld basis. Certain contractual features of these agreements qualify as embedded derivatives, which are separately accounted for at estimated fair value on the Company's consolidated balance sheets. The embedded derivatives related to the funds withheld associated with these reinsurance agreements are included within other liabilities and increased the funds withheld balance by $29 million and $20 million at December 31, 2012 and 2011, respectively. Net derivative gains (losses) associated with these embedded derivatives were ($9) million, ($29) million and $9 million for the years ended December 31, 2012, 2011 and 2010, respectively. The Company ceded risks to an affiliate related to guaranteed minimum benefit guarantees written directly by the Company. These ceded reinsurance agreements contain embedded derivatives and changes in their fair value are included within net derivative gains (losses). The embedded derivatives associated with the cessions are included within premiums, reinsurance and other receivables and were assets of $1.4 billion and $1.2 billion at December 31, 2012 and 2011, respectively. Net derivative gains (losses) associated with the embedded derivatives were $14 million, $727 million and ($66) million for the years ended December 31, 2012, 2011 and 2010, respectively. Certain contractual features of the closed block agreement with MRC create an embedded derivative, which is separately accounted for at estimated fair value on the Company's consolidated balance sheets. The embedded derivative related to the funds withheld associated with this reinsurance agreement was included within other liabilities and increased the funds withheld balance by $1.4 billion and $1.5 billion at December 31, 2012 and 2011, respectively. Net derivative gains (losses) associated with the embedded derivative were $135 million, ($811) million and ($596) million for the years ended December 31, 2012, 2011 and 2010, respectively. The Company has secured certain reinsurance recoverable balances with various forms of collateral, including secured trusts, funds withheld accounts and irrevocable letters of credit. The Company had $2.1 billion and $1.5 billion of unsecured affiliated reinsurance recoverable balances at December 31, 2012 and 2011, respectively. Affiliated reinsurance agreements that do not expose the Company to a reasonable possibility of a significant loss from insurance risk are recorded using the deposit method of accounting. The deposit assets on affiliated reinsurance were $11.8 billion and $15.7 billion at December 31, 2012 and 2011, respectively. The deposit liabilities on affiliated reinsurance were $6.8 billion and $6.9 billion at December 31, 2012 and 2011, respectively. 7. Closed Block On April 7, 2000 (the "Demutualization Date"), Metropolitan Life Insurance Company converted from a mutual life insurance company to a stock life insurance company and became a wholly-owned subsidiary of MetLife, Inc. The conversion was pursuant to an order by the New York Superintendent of Insurance (the "Superintendent") approving Metropolitan Life Insurance Company's plan of reorganization, as amended (the "Plan"). On the Demutualization Date, Metropolitan Life Insurance Company established a closed block for the F-52 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) benefit of holders of certain individual life insurance policies of Metropolitan Life Insurance Company. Assets have been allocated to the closed block in an amount that has been determined to produce cash flows which, together with anticipated revenues from the policies included in the closed block, are reasonably expected to be sufficient to support obligations and liabilities relating to these policies, including, but not limited to, provisions for the payment of claims and certain expenses and taxes, and to provide for the continuation of policyholder dividend scales in effect for 1999, if the experience underlying such dividend scales continues, and for appropriate adjustments in such scales if the experience changes. At least annually, the Company compares actual and projected experience against the experience assumed in the then-current dividend scales. Dividend scales are adjusted periodically to give effect to changes in experience. The closed block assets, the cash flows generated by the closed block assets and the anticipated revenues from the policies in the closed block will benefit only the holders of the policies in the closed block. To the extent that, over time, cash flows from the assets allocated to the closed block and claims and other experience related to the closed block are, in the aggregate, more or less favorable than what was assumed when the closed block was established, total dividends paid to closed block policyholders in the future may be greater than or less than the total dividends that would have been paid to these policyholders if the policyholder dividend scales in effect for 1999 had been continued. Any cash flows in excess of amounts assumed will be available for distribution over time to closed block policyholders and will not be available to stockholders. If the closed block has insufficient funds to make guaranteed policy benefit payments, such payments will be made from assets outside of the closed block. The closed block will continue in effect as long as any policy in the closed block remains in-force. The expected life of the closed block is over 100 years. The Company uses the same accounting principles to account for the participating policies included in the closed block as it used prior to the Demutualization Date. However, the Company establishes a policyholder dividend obligation for earnings that will be paid to policyholders as additional dividends as described below. The excess of closed block liabilities over closed block assets at the Demutualization Date (adjusted to eliminate the impact of related amounts in AOCI) represents the estimated maximum future earnings from the closed block expected to result from operations attributed to the closed block after income taxes. Earnings of the closed block are recognized in income over the period the policies and contracts in the closed block remain in-force. Management believes that over time the actual cumulative earnings of the closed block will approximately equal the expected cumulative earnings due to the effect of dividend changes. If, over the period the closed block remains in existence, the actual cumulative earnings of the closed block are greater than the expected cumulative earnings of the closed block, the Company will pay the excess of the actual cumulative earnings of the closed block over the expected cumulative earnings to closed block policyholders as additional policyholder dividends unless offset by future unfavorable experience of the closed block and, accordingly, will recognize only the expected cumulative earnings in income with the excess recorded as a policyholder dividend obligation. If over such period, the actual cumulative earnings of the closed block are less than the expected cumulative earnings of the closed block, the Company will recognize only the actual earnings in income. However, the Company may change policyholder dividend scales in the future, which would be intended to increase future actual earnings until the actual cumulative earnings equal the expected cumulative earnings. Experience within the closed block, in particular mortality and investment yields, as well as realized and unrealized gains and losses, directly impact the policyholder dividend obligation. Amortization of the closed block DAC, which resides outside of the closed block, is based upon cumulative actual and expected earnings within the closed block. Accordingly, the Company's net income continues to be sensitive to the actual performance of the closed block. F-53 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) Closed block assets, liabilities, revenues and expenses are combined on a line-by-line basis with the assets, liabilities, revenues and expenses outside the closed block based on the nature of the particular item. Information regarding the closed block liabilities and assets designated to the closed block was as follows:
December 31, ------------------- 2012 2011 --------- --------- (In millions) Closed Block Liabilities Future policy benefits............................................................ $ 42,586 $ 43,169 Other policy-related balances..................................................... 298 358 Policyholder dividends payable.................................................... 466 514 Policyholder dividend obligation.................................................. 3,828 2,919 Other liabilities................................................................. 602 613 --------- --------- Total closed block liabilities................................................. 47,780 47,573 --------- --------- Assets Designated to the Closed Block Investments: Fixed maturity securities available-for-sale, at estimated fair value............ 30,546 30,407 Equity securities available-for-sale, at estimated fair value.................... 41 35 Mortgage loans................................................................... 6,192 6,206 Policy loans..................................................................... 4,670 4,657 Real estate and real estate joint ventures....................................... 459 364 Other invested assets............................................................ 953 857 --------- --------- Total investments.............................................................. 42,861 42,526 Cash and cash equivalents......................................................... 381 249 Accrued investment income......................................................... 481 509 Premiums, reinsurance and other receivables....................................... 107 109 Current income tax recoverable.................................................... 2 53 Deferred income tax assets........................................................ 319 362 --------- --------- Total assets designated to the closed block.................................. 44,151 43,808 --------- --------- Excess of closed block liabilities over assets designated to the closed block..... 3,629 3,765 --------- --------- Amounts included in accumulated other comprehensive income (loss): Unrealized investment gains (losses), net of income tax.......................... 2,891 2,394 Unrealized gains (losses) on derivatives, net of income tax...................... 9 11 Allocated to policyholder dividend obligation, net of income tax................. (2,488) (1,897) --------- --------- Total amounts included in accumulated other comprehensive income (loss)........... 412 508 --------- --------- Maximum future earnings to be recognized from closed block assets and liabilities.............................................................. $ 4,041 $ 4,273 ========= =========
F-54 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) Information regarding the closed block policyholder dividend obligation was as follows:
Years Ended December 31, --------------------------- 2012 2011 2010 ---------- -------- ------- (In millions) Balance at January 1,........................................................... $ 2,919 $ 876 $ -- Change in unrealized investment and derivative gains (losses)................... 909 2,043 876 ---------- -------- ------- Balance at December 31,......................................................... $ 3,828 $ 2,919 $ 876 ========== ======== =======
Information regarding the closed block revenues and expenses was as follows:
Years Ended December 31, -------------------------- 2012 2011 2010 -------- -------- -------- (In millions) Revenues Premiums................................................................. $ 2,139 $ 2,306 $ 2,461 Net investment income.................................................... 2,188 2,231 2,292 Net investment gains (losses)............................................ 61 32 39 Net derivative gains (losses)............................................ (12) 8 (27) -------- -------- -------- Total revenues........................................................ 4,376 4,577 4,765 -------- -------- -------- Expenses Policyholder benefits and claims......................................... 2,783 2,991 3,115 Policyholder dividends................................................... 1,072 1,137 1,235 Other expenses........................................................... 179 193 199 -------- -------- -------- Total expenses........................................................ 4,034 4,321 4,549 -------- -------- -------- Revenues, net of expenses before provision for income tax expense (benefit).............................................................. 342 256 216 Provision for income tax expense (benefit)............................... 120 89 71 -------- -------- -------- Revenues, net of expenses and provision for income tax expense (benefit) from continuing operations............................................. 222 167 145 Revenues, net of expenses and provision for income tax expense (benefit) from discontinued operations........................................... 10 1 1 -------- -------- -------- Revenues, net of expenses and provision for income tax expense (benefit).............................................................. $ 232 $ 168 $ 146 ======== ======== ========
Metropolitan Life Insurance Company charges the closed block with federal income taxes, state and local premium taxes and other additive state or local taxes, as well as investment management expenses relating to the closed block as provided in the Plan. Metropolitan Life Insurance Company also charges the closed block for expenses of maintaining the policies included in the closed block. 8. Investments See Note 10 for information about the fair value hierarchy for investments and the related valuation methodologies. F-55 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) Investment Risks and Uncertainties Investments are exposed to the following primary sources of risk: credit, interest rate, liquidity, market valuation, currency and real estate risk. The financial statement risks, stemming from such investment risks, are those associated with the determination of estimated fair values, the diminished ability to sell certain investments in times of strained market conditions, the recognition of impairments, the recognition of income on certain investments and the potential consolidation of VIEs. The use of different methodologies, assumptions and inputs relating to these financial statement risks may have a material effect on the amounts presented within the consolidated financial statements. The determination of valuation allowances and impairments is highly subjective and is based upon periodic evaluations and assessments of known and inherent risks associated with the respective asset class. Such evaluations and assessments are revised as conditions change and new information becomes available. The recognition of income on certain investments (e.g. structured securities, including mortgage-backed securities, asset-backed securities ("ABS"), certain structured investment transactions and trading and FVO securities) is dependent upon certain factors such as prepayments and defaults, and changes in such factors could result in changes in amounts to be earned. Fixed Maturity and Equity Securities AFS Fixed Maturity and Equity Securities AFS by Sector The following table presents the fixed maturity and equity securities AFS by sector. The unrealized loss amounts presented below include the noncredit loss component of OTTI losses. Redeemable preferred stock is reported within U.S. corporate and foreign corporate fixed maturity securities and non-redeemable preferred stock is reported within equity securities. Included within fixed maturity securities are structured securities including RMBS, CMBS and ABS.
December 31, 2012 December 31, 2011 --------------------------------------------- --------------------------------------------- Gross Unrealized Gross Unrealized Cost or ------------------------- Estimated Cost or ------------------------- Estimated Amortized Temporary OTTI Fair Amortized Temporary OTTI Fair Cost Gains Losses Losses Value Cost Gains Losses Losses Value --------- -------- --------- ------ --------- --------- -------- --------- ------ --------- (In millions) Fixed Maturity Securities: U.S. corporate............. $ 59,587 $ 7,717 $ 304 $ -- $ 67,000 $ 56,298 $ 6,113 $ 715 $ -- $ 61,696 U.S. Treasury and agency... 28,252 4,408 9 -- 32,651 21,572 4,272 -- -- 25,844 Foreign corporate (1)...... 27,231 3,128 126 (1) 30,234 27,298 2,400 551 1 29,146 RMBS....................... 23,792 1,716 226 257 25,025 25,445 1,564 766 524 25,719 CMBS....................... 9,264 559 37 -- 9,786 8,750 473 114 4 9,105 ABS (1).................... 8,025 205 105 -- 8,125 6,589 156 166 (7) 6,586 State and political subdivision............... 5,554 1,184 18 -- 6,720 5,387 842 47 -- 6,182 Foreign government......... 3,052 1,086 3 -- 4,135 3,037 915 52 -- 3,900 --------- -------- --------- ------ --------- --------- -------- --------- ------ --------- Total fixed maturity securities............... $ 164,757 $ 20,003 $ 828 $ 256 $ 183,676 $ 154,376 $ 16,735 $ 2,411 $ 522 $ 168,178 ========= ======== ========= ====== ========= ========= ======== ========= ====== ========= Equity Securities: Common..................... $ 1,013 $ 33 $ 5 $ -- $ 1,041 $ 830 $ 32 $ 6 $ -- $ 856 Non-redeemable preferred... 528 41 111 -- 458 549 11 138 -- 422 --------- -------- --------- ------ --------- --------- -------- --------- ------ --------- Total equity securities... $ 1,541 $ 74 $ 116 $ -- $ 1,499 $ 1,379 $ 43 $ 144 $ -- $ 1,278 ========= ======== ========= ====== ========= ========= ======== ========= ====== =========
F-56 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) -------- (1)OTTI losses, as presented above, represent the noncredit portion of OTTI losses that is included in AOCI. OTTI losses include both the initial recognition of noncredit losses, and the effects of subsequent increases and decreases in estimated fair value for those fixed maturity securities that were previously noncredit loss impaired. The noncredit loss component of OTTI losses for foreign corporate securities was in an unrealized gain position of $1 million at December 31, 2012 and $7 million for ABS at December 31, 2011, due to increases in estimated fair value subsequent to initial recognition of noncredit losses on such securities. See also "-- Net Unrealized Investment Gains (Losses)." The Company held non-income producing fixed maturity securities with an estimated fair value of $41 million and $7 million with unrealized gains (losses) of $6 million and ($3) million at December 31, 2012 and 2011, respectively. Methodology for Amortization of Discount or Premium on Structured Securities Amortization of the discount or premium on structured securities considers the estimated timing and amount of prepayments of the underlying loans. Actual prepayment experience is periodically reviewed and effective yields are recalculated when differences arise between the originally anticipated and the actual prepayments received and currently anticipated. Prepayment assumptions for single class and multi-class mortgage-backed and ABS are estimated using inputs obtained from third-party specialists and based on management's knowledge of the current market. For credit-sensitive mortgage-backed and ABS and certain prepayment-sensitive securities, the effective yield is recalculated on a prospective basis. For all other mortgage-backed and ABS, the effective yield is recalculated on a retrospective basis. Maturities of Fixed Maturity Securities The amortized cost and estimated fair value of fixed maturity securities, by contractual maturity date, were as follows at:
December 31, ------------------------------------------- 2012 2011 --------------------- --------------------- Estimated Estimated Amortized Fair Amortized Fair Cost Value Cost Value ---------- ---------- ---------- ---------- (In millions) Due in one year or less........................... $ 12,671 $ 12,796 $ 8,089 $ 8,159 Due after one year through five years............. 30,187 32,160 26,375 27,486 Due after five years through ten years............ 34,983 40,009 34,660 38,517 Due after ten years............................... 45,835 55,775 44,468 52,606 ---------- ---------- ---------- ---------- Subtotal........................................ 123,676 140,740 113,592 126,768 Structured securities (RMBS, CMBS and ABS)........ 41,081 42,936 40,784 41,410 ---------- ---------- ---------- ---------- Total fixed maturity securities................ $ 164,757 $ 183,676 $ 154,376 $ 168,178 ========== ========== ========== ==========
Actual maturities may differ from contractual maturities due to the exercise of call or prepayment options. Fixed maturity securities not due at a single maturity date have been presented in the year of final contractual maturity. RMBS, CMBS and ABS are shown separately, as they are not due at a single maturity. F-57 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) Continuous Gross Unrealized Losses for Fixed Maturity and Equity Securities AFS by Sector The following table presents the estimated fair value and gross unrealized losses of fixed maturity and equity securities AFS in an unrealized loss position, aggregated by sector and by length of time that the securities have been in a continuous unrealized loss position. The unrealized loss amounts include the noncredit component of OTTI loss.
December 31, 2012 December 31, 2011 ----------------------------------------- ----------------------------------------- Equal to or Greater Equal to or Greater Less than 12 Months than 12 Months Less than 12 Months than 12 Months -------------------- -------------------- -------------------- -------------------- Estimated Gross Estimated Gross Estimated Gross Estimated Gross Fair Unrealized Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses Value Losses --------- ---------- --------- ---------- --------- ---------- --------- ---------- (In millions, except number of securities) Fixed Maturity Securities: U.S. corporate................... $ 2,567 $ 58 $ 2,507 $ 246 $ 5,669 $ 204 $ 3,170 $ 511 U.S. Treasury and agency......... 1,576 9 -- -- 2,189 -- -- -- Foreign corporate................ 758 34 1,381 91 4,560 334 1,258 218 RMBS............................. 639 18 3,098 465 2,647 407 3,241 883 CMBS............................. 727 5 308 32 709 66 365 52 ABS.............................. 1,246 22 697 83 2,557 45 608 114 State and political subdivision..................... 92 1 103 17 31 -- 169 47 Foreign government............... 106 1 27 2 499 44 88 8 -------- ------ -------- ------ --------- -------- -------- -------- Total fixed maturity securities.................... $ 7,711 $ 148 $ 8,121 $ 936 $ 18,861 $ 1,100 $ 8,899 $ 1,833 ======== ====== ======== ====== ========= ======== ======== ======== Equity Securities: Common........................... $ 62 $ 5 $ 1 $ -- $ 4 $ 6 $ -- $ -- Non-redeemable preferred......... -- -- 190 111 126 14 238 124 -------- ------ -------- ------ --------- -------- -------- -------- Total equity securities........ $ 62 $ 5 $ 191 $ 111 $ 130 $ 20 $ 238 $ 124 ======== ====== ======== ====== ========= ======== ======== ======== Total number of securities in an unrealized loss position........ 622 637 1,412 819 ======== ======== ========= ========
Evaluation of AFS Securities for OTTI and Evaluating Temporarily Impaired AFS Securities Evaluation and Measurement Methodologies Management considers a wide range of factors about the security issuer and uses its best judgment in evaluating the cause of the decline in the estimated fair value of the security and in assessing the prospects for near-term recovery. Inherent in management's evaluation of the security are assumptions and estimates about the operations of the issuer and its future earnings potential. Considerations used in the impairment evaluation process include, but are not limited to: (i) the length of time and the extent to which the estimated fair value has been below cost or amortized cost; (ii) the potential for impairments 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) with respect to fixed maturity securities, whether the F-58 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) Company has the intent to sell or will more likely than not be required to sell a particular security before the decline in estimated fair value below amortized cost recovers; (vii) with respect to structured securities, changes in forecasted cash flows after considering the quality of underlying collateral, expected prepayment speeds, current and forecasted loss severity, consideration of the payment terms of the underlying assets backing a particular security, and the payment priority within the tranche structure of the security; and (viii) other subjective factors, including concentrations and information obtained from regulators and rating agencies. The methodology and significant inputs used to determine the amount of credit loss on fixed maturity securities are as follows: . The Company calculates the recovery value by performing a discounted cash flow analysis based on the present value of future cash flows. The discount rate is generally the effective interest rate of the security prior to impairment. . When determining collectability and the period over which value is expected to recover, the Company applies considerations utilized in its overall impairment evaluation process which incorporates information regarding the specific security, fundamentals of the industry and geographic area in which the security issuer operates, and overall macroeconomic conditions. Projected future cash flows are estimated using assumptions derived from management's best estimates of likely scenario-based outcomes after giving consideration to a variety of variables that include, but are not limited to: payment terms of the security; the likelihood that the issuer can service the interest and principal payments; the quality and amount of any credit enhancements; the security's position within the capital structure of the issuer; possible corporate restructurings or asset sales by the issuer; and changes to the rating of the security or the issuer by rating agencies. . Additional considerations are made when assessing the unique features that apply to certain structured securities including, but not limited to: the quality of underlying collateral, expected prepayment speeds; current and forecasted loss severity, consideration of the payment terms of the underlying loans or assets backing a particular security, and the payment priority within the tranche structure of the security. . When determining the amount of the credit loss for U.S. and foreign corporate securities, foreign government securities and state and political subdivision securities, the estimated fair value is considered the recovery value when available information does not indicate that another value is more appropriate. When information is identified that indicates a recovery value other than estimated fair value, management considers in the determination of recovery value the same considerations utilized in its overall impairment evaluation process as described in (ii) above, as well as private and public sector programs to restructure such securities. With respect to securities that have attributes of debt and equity (perpetual hybrid securities), consideration is given in the OTTI analysis as to whether there has been any deterioration in the credit of the issuer and the likelihood of recovery in value of the securities that are in a severe and extended unrealized loss position. Consideration is also given as to whether any perpetual hybrid securities, with an unrealized loss, regardless of credit rating, have deferred any dividend payments. When an OTTI loss has occurred, the OTTI loss is the entire difference between the perpetual hybrid security's cost and its estimated fair value with a corresponding charge to earnings. F-59 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) The cost or amortized cost of fixed maturity and equity securities is adjusted for OTTI in the period in which the determination is made. The Company does not change the revised cost basis for subsequent recoveries in value. In periods subsequent to the recognition of OTTI on a fixed maturity security, the Company accounts for the impaired security as if it had been purchased on the measurement date of the impairment. Accordingly, the discount (or reduced premium) based on the new cost basis is accreted over the remaining term of the fixed maturity security in a prospective manner based on the amount and timing of estimated future cash flows. Current Period Evaluation Based on the Company's current evaluation of its AFS securities in an unrealized loss position in accordance with its impairment policy, and the Company's current intentions and assessments (as applicable to the type of security) about holding, selling and any requirements to sell these securities, the Company has concluded that these securities are not other-than-temporarily impaired at December 31, 2012. Future OTTI will depend primarily on economic fundamentals, issuer performance (including changes in the present value of future cash flows expected to be collected), changes in credit ratings, changes in collateral valuation, changes in interest rates and changes in credit spreads. If economic fundamentals or any of the above factors deteriorate, additional OTTI may be incurred in upcoming periods. Gross unrealized losses on fixed maturity securities in an unrealized loss position decreased $1.8 billion during the year ended December 31, 2012 from $2.9 billion to $1.1 billion. The decline in, or improvement in, gross unrealized losses for the year ended December 31, 2012, was primarily attributable to narrowing credit spreads and a decrease in interest rates. At December 31, 2012, $389 million of the total $1.1 billion of gross unrealized losses were from 102 fixed maturity securities with an unrealized loss position of 20% or more of amortized cost for six months or greater. Investment Grade Fixed Maturity Securities Of the $1.1 billion of gross unrealized losses on fixed maturity securities with an unrealized loss of 20% or more of amortized cost for six months or greater, $172 million, or 44%, are related to gross unrealized losses on 50 investment grade fixed maturity securities. Unrealized losses on investment grade fixed maturity securities are principally related to widening credit spreads or rising interest rates since purchase. Below Investment Grade Fixed Maturity Securities Of the $1.1 billion of gross unrealized losses on fixed maturity securities with an unrealized loss of 20% or more of amortized cost for six months or greater, $217 million, or 56%, are related to gross unrealized losses on 52 below investment grade fixed maturity securities. Unrealized losses on below investment grade fixed maturity securities are principally related to non-agency RMBS (primarily alternative residential mortgage loans and sub-prime residential mortgage loans), ABS (primarily collateralized debt obligations) and U.S and foreign corporate securities (primarily financial services industry securities) and are the result of significantly wider credit spreads resulting from higher risk premiums since purchase, largely due to economic and market uncertainties including concerns over the financial services industry sector, unemployment levels and valuations of residential real estate supporting non-agency RMBS. Management evaluates these U.S. and foreign corporate securities based on factors such as expected cash flows and the financial condition and F-60 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) near-term and long-term prospects of the issuer; and evaluates non-agency RMBS and ABS based on actual and projected cash flows after considering the quality of underlying collateral, expected prepayment speeds, current and forecasted loss severity, consideration of the payment terms of the underlying assets backing a particular security, and the payment priority within the tranche structure of the security. Equity Securities Equity securities in an unrealized loss position decreased $28 million during the year ended December 31, 2012 from $144 million to $116 million. Of the $116 million, $99 million were from 13 equity securities with gross unrealized losses of 20% or more of cost for 12 months or greater, of which 90% were financial services industry investment grade non-redeemable preferred stock, of which 75% were rated A, AA, or AAA. Trading and FVO Securities See Note 10 for tables that present the four categories of securities that comprise trading and FVO securities. See "-- Net Investment Income" and "-- Net Investment Gains (Losses)" for the net investment income recognized on trading and FVO securities and the related changes in estimated fair value subsequent to purchase included in net investment income and net investment gains (losses) for securities still held as of the end of the respective years, as applicable. Mortgage Loans Mortgage Loans by Portfolio Segment Mortgage loans are summarized as follows at:
December 31, ------------------------------------------ 2012 2011 -------------------- -------------------- Carrying % of Carrying % of Value Total Value Total ------------- ------ ------------- ------ (In millions) (In millions) Mortgage loans: Commercial............................ $ 33,369 74.7 % $ 32,774 74.7 % Agricultural.......................... 11,487 25.7 11,498 26.2 Residential........................... 105 0.3 1 -- --------- ------ --------- ------ Subtotal (1)......................... 44,961 100.7 44,273 100.9 Valuation allowances.................. (304) (0.7) (393) (0.9) --------- ------ --------- ------ Total mortgage loans, net............ $ 44,657 100.0 % $ 43,880 100.0 % ========= ====== ========= ======
-------- (1)In 2012, the Company purchased $1.2 billion, $191 million and $105 million of commercial, agricultural and residential mortgage loans, respectively, of which $1.2 billion and $191 million of commercial and agricultural mortgage loans, respectively, were purchased at estimated fair value from an affiliate, MetLife Bank, National Association ("MetLife Bank"). The Company purchased $64 million of commercial mortgage loans during the year ended December 31, 2011. F-61 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) Mortgage Loans and Valuation Allowance by Portfolio Segment The carrying value prior to valuation allowance ("recorded investment") in mortgage loans, by portfolio segment, by method of evaluation of credit loss, and the related valuation allowances, by type of credit loss, were as follows:
December 31, ------------------------------------------------------------------------------------------- 2012 2011 --------------------------------------------- --------------------------------------------- Commercial Agricultural Residential Total Commercial Agricultural Residential Total ---------- ------------ ----------- --------- ---------- ------------ ----------- --------- (In millions) Mortgage loans: Evaluated individually for credit losses............... $ 441 $ 181 $ -- $ 622 $ 73 $ 159 $ -- $ 232 Evaluated collectively for credit losses............... 32,928 11,306 105 44,339 32,701 11,339 1 44,041 ---------- ------------ ----------- --------- ---------- ------------ ----------- --------- Total mortgage loans........ 33,369 11,487 105 44,961 32,774 11,498 1 44,273 ---------- ------------ ----------- --------- ---------- ------------ ----------- --------- Valuation allowances: Specific credit losses....... 84 21 -- 105 44 45 -- 89 Non-specifically identified credit losses............... 172 27 -- 199 274 30 -- 304 ---------- ------------ ----------- --------- ---------- ------------ ----------- --------- Total valuation allowances................. 256 48 -- 304 318 75 -- 393 ---------- ------------ ----------- --------- ---------- ------------ ----------- --------- Mortgage loans, net of valuation allowance................. $ 33,113 $ 11,439 $ 105 $ 44,657 $ 32,456 $ 11,423 $ 1 $ 43,880 ========== ============ =========== ========= ========== ============ =========== =========
Valuation Allowance Rollforward by Portfolio Segment The changes in the valuation allowance, by portfolio segment, were as follows:
Commercial Agricultural Total ---------- ------------ -------- (In millions) Balance at January 1, 2010.............. $ 492 $ 102 $ 594 Provision (release)..................... (39) 12 (27) Charge-offs, net of recoveries.......... (12) (33) (45) ---------- ------------ -------- Balance at December 31, 2010............ 441 81 522 Provision (release)..................... (111) (2) (113) Charge-offs, net of recoveries.......... (12) (4) (16) ---------- ------------ -------- Balance at December 31, 2011............ 318 75 393 Provision (release)..................... (50) 2 (48) Charge-offs, net of recoveries.......... (12) (24) (36) Transfer to held-for-sale............... -- (5) (5) ---------- ------------ -------- Balance at December 31, 2012............ $ 256 $ 48 $ 304 ========== ============ ========
F-62 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) Valuation Allowance Methodology Mortgage loans are considered to be impaired when it is probable that, based upon current information and events, the Company will be unable to collect all amounts due under the loan agreement. Specific valuation allowances are established using the same methodology for all three portfolio segments as the excess carrying value of a loan over either (i) the present value of expected future cash flows discounted at the loan's original effective interest rate, (ii) the estimated fair value of the loan's underlying collateral if the loan is in the process of foreclosure or otherwise collateral dependent, or (iii) the loan's observable market price. A common evaluation framework is used for establishing non-specific valuation allowances for all loan portfolio segments; however, a separate non-specific valuation allowance is calculated and maintained for each loan portfolio segment that is based on inputs unique to each loan portfolio segment. Non-specific valuation allowances are established for pools of loans with similar risk characteristics where a property-specific or market-specific risk has not been identified, but for which the Company expects to incur a credit loss. These evaluations are based upon several loan portfolio segment-specific factors, including the Company's experience for loan losses, defaults and loss severity, and loss expectations for loans with similar risk characteristics. These evaluations are revised as conditions change and new information becomes available. Commercial and Agricultural Mortgage Loan Portfolio Segments The Company typically uses several years of historical experience in establishing non-specific valuation allowances which captures multiple economic cycles. For evaluations of commercial loans, in addition to historical experience, management considers factors that include the impact of a rapid change to the economy, which may not be reflected in the loan portfolio, and recent loss and recovery trend experience as compared to historical loss and recovery experience. For evaluations of agricultural loans, in addition to historical experience, management considers factors that include increased stress in certain sectors, which may be evidenced by higher delinquency rates, or a change in the number of higher risk loans. On a quarterly basis, management incorporates the impact of these current market events and conditions on historical experience in determining the non-specific valuation allowance established for each portfolio segment. All commercial loans are reviewed on an ongoing basis which may include an analysis of the property financial statements and rent roll, lease rollover analysis, property inspections, market analysis, estimated valuations of the underlying collateral, loan-to-value ratios, debt service coverage ratios, and tenant creditworthiness. All agricultural loans are monitored on an ongoing basis. The monitoring process focuses on higher risk loans, which include those that are classified as restructured, potentially delinquent, delinquent or in foreclosure, as well as loans with higher loan-to-value ratios and lower debt service coverage ratios. The monitoring process for agricultural loans is generally similar to the commercial loan monitoring process, with a focus on higher risk loans, including reviews on a geographic and property-type basis. Higher risk loans are reviewed individually on an ongoing basis for potential credit loss and specific valuation allowances are established using the methodology described above for all loan portfolio segments. Quarterly, the remaining loans are reviewed on a pool basis by aggregating groups of loans that have similar risk characteristics for potential credit loss, and non-specific valuation allowances are established as described above using inputs that are unique to each segment of the loan portfolio. For commercial loans, the primary credit quality indicator is the debt service coverage ratio, which compares a property's net operating income to amounts needed to service the principal and interest due under the loan. Generally, the lower the debt service coverage ratio, the higher the risk of experiencing a credit loss. The Company also reviews the loan-to-value ratio of its commercial loan portfolio. Loan-to-value ratios F-63 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) compare the unpaid principal balance of the loan to the estimated fair value of the underlying collateral. Generally, the higher the loan-to-value ratio, the higher the risk of experiencing a credit loss. The debt service coverage ratio and loan-to-value ratio, as well as the values utilized in calculating these ratios, are updated annually, on a rolling basis, with a portion of the loan portfolio updated each quarter. For agricultural loans, the Company's primary credit quality indicator is the loan-to-value ratio. The values utilized in calculating this ratio are developed in connection with the ongoing review of the agricultural loan portfolio and are routinely updated. Additionally, the Company focuses the monitoring process on higher risk loans, including reviews on a geographic and property-type basis. Residential Mortgage Loan Portfolio Segment The Company's residential loan portfolio is comprised primarily of closed end, amortizing residential loans. For evaluations of residential loans, the key inputs of expected frequency and expected loss reflect current market conditions, with expected frequency adjusted, when appropriate, for differences from market conditions and the Company's historical experience. In contrast to the commercial and agricultural loan portfolios, residential loans are smaller-balance homogeneous loans that are collectively evaluated for impairment. Non-specific valuation allowances are established using the evaluation framework described above for pools of loans with similar risk characteristics from inputs that are unique to the residential segment of the loan portfolio. Loan specific valuation allowances are only established on residential loans when they have been restructured and are established using the methodology described above for all loan portfolio segments. For residential loans, the Company's primary credit quality indicator is whether the loan is performing or non-performing. The Company generally defines non-performing residential loans as those that are 90 or more days past due and/or in non-accrual status which is assessed monthly. Generally, non-performing residential loans have a higher risk of experiencing a credit loss. Credit Quality of Commercial Mortgage Loans Information about the credit quality of commercial mortgage loans is presented below at:
Recorded Investment ------------------------------------------------- Debt Service Coverage Ratios -------------------------------- % of Estimated % of > 1.20x 1.00x - 1.20x < 1.00x Total Total Fair Value Total --------- ------------- -------- --------- ------ ------------- ------ (In millions) (In millions) December 31, 2012: Loan-to-value ratios: Less than 65%......... $ 24,906 $ 452 $ 575 $ 25,933 77.7 % $ 27,894 78.8 % 65% to 75%............ 4,254 641 108 5,003 15.0 5,218 14.7 76% to 80%............ 448 123 259 830 2.5 863 2.4 Greater than 80%...... 847 501 255 1,603 4.8 1,451 4.1 --------- -------- -------- --------- ------ --------- ------ Total................ $ 30,455 $ 1,717 $ 1,197 $ 33,369 100.0 % $ 35,426 100.0 % ========= ======== ======== ========= ====== ========= ====== December 31, 2011: Loan-to-value ratios: Less than 65%......... $ 20,510 $ 389 $ 332 $ 21,231 64.8 % $ 22,547 66.1 % 65% to 75%............ 6,919 237 268 7,424 22.6 7,734 22.6 76% to 80%............ 950 98 200 1,248 3.8 1,251 3.7 Greater than 80%...... 1,880 674 317 2,871 8.8 2,588 7.6 --------- -------- -------- --------- ------ --------- ------ Total................ $ 30,259 $ 1,398 $ 1,117 $ 32,774 100.0 % $ 34,120 100.0 % ========= ======== ======== ========= ====== ========= ======
F-64 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) Credit Quality of Agricultural Mortgage Loans Information about the credit quality of agricultural mortgage loans is presented below at:
December 31, ---------------------------------------------- 2012 2011 ---------------------- ---------------------- Recorded % of Recorded % of Investment Total Investment Total ------------- -------- ------------- -------- (In millions) (In millions) Loan-to-value ratios: Less than 65%......... $ 10,628 92.5 % $ 10,378 90.2 % 65% to 75%............ 514 4.5 732 6.4 76% to 80%............ 92 0.8 12 0.1 Greater than 80%...... 253 2.2 376 3.3 ------------- -------- ------------- -------- Total................ $ 11,487 100.0 % $ 11,498 100.0 % ============= ======== ============= ========
The estimated fair value of agricultural mortgage loans was $11.8 billion and $11.9 billion at December 31, 2012 and 2011, respectively. Credit Quality of Residential Mortgage Loans All residential mortgage loans were performing at both December 31, 2012 and 2011; accordingly, residential mortgage loan data is not presented in the following past due, impaired and troubled debt restructuring tables. The estimated fair value of residential mortgage loans was $109 million and $1 million at December 31, 2012 and 2011, respectively. Past Due and Interest Accrual Status of Mortgage Loans The Company has a high quality, well performing mortgage loan portfolio, with 99% of all mortgage loans classified as performing at both December 31, 2012 and 2011. The Company defines delinquent mortgage loans consistent with industry practice, when interest and principal payments are past due as follows: commercial and residential mortgage loans -- 60 days; and agricultural mortgage loans -- 90 days. The recorded investment in mortgage loans, prior to valuation allowances, past due according to these aging categories, greater than 90 days past due and still accruing interest and in nonaccrual status, by portfolio segment, were as follows at:
Greater than 90 Days Past Due Past Due and Still Accruing Interest ----------------------------------- ----------------------------------- December 31, 2012 December 31, 2011 December 31, 2012 December 31, 2011 ----------------- ----------------- ----------------- ----------------- (In millions) Commercial.............................. $ -- $ 63 $ -- $ -- Agricultural............................ 116 139 53 27 ----------------- ----------------- ----------------- ----------------- Total................................. $ 116 $ 202 $ 53 $ 27 ================= ================= ================= =================
Nonaccrual Status ----------------------------------- December 31, 2012 December 31, 2011 ----------------- ----------------- Commercial.............................. $ 83 $ 63 Agricultural............................ 67 150 ----------------- ----------------- Total................................. $ 150 $ 213 ================= =================
F-65 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) Impaired Mortgage Loans Information regarding impaired mortgage loans, including those modified in a troubled debt restructuring, by portfolio segment, were as follows at and for the periods ended:
Loans without Loans with a Valuation Allowance a Valuation Allowance All Impaired Loans ---------------------------------------- -------------------- -------------------------------------- Unpaid Unpaid Unpaid Average Principal Recorded Valuation Carrying Principal Recorded Principal Carrying Recorded Interest December 31, Balance Investment Allowances Value Balance Investment Balance Value Investment Income ------------------- --------- ---------- ---------- -------- --------- ---------- --------- -------- ---------- -------- (In millions) 2012: Commercial.......... $ 367 $ 359 $ 84 $ 275 $ 82 $ 82 $ 449 $ 357 $ 384 $ 11 Agricultural........ 110 107 21 86 79 74 189 160 201 8 --------- ---------- ---------- -------- --------- ---------- --------- -------- ---------- -------- Total.............. $ 477 $ 466 $ 105 $ 361 $ 161 $ 156 $ 638 $ 517 $ 585 $ 19 ========= ========== ========== ======== ========= ========== ========= ======== ========== ======== 2011: Commercial.......... $ 73 $ 73 $ 44 $ 29 $ 225 $ 209 $ 298 $ 238 $ 257 $ 5 Agricultural........ 160 159 45 114 62 60 222 174 239 3 --------- ---------- ---------- -------- --------- ---------- --------- -------- ---------- -------- Total.............. $ 233 $ 232 $ 89 $ 143 $ 287 $ 269 $ 520 $ 412 $ 496 $ 8 ========= ========== ========== ======== ========= ========== ========= ======== ========== ========
Unpaid principal balance is generally prior to any charge-offs. Interest income recognized is primarily cash basis income. The average recorded investment for commercial and agricultural mortgage loans was $126 million and $259 million, respectively, for the year ended December 31, 2010; and interest income recognized for commercial and agricultural mortgage loans was $4 million and $8 million, respectively, for the year ended December 31, 2010. Mortgage Loans Modified in a Troubled Debt Restructuring For a small portion of the mortgage loan portfolio, classified as troubled debt restructurings, concessions are granted related to borrowers experiencing financial difficulties. Generally, the types of concessions include: reduction of the contractual interest rate, extension of the maturity date at an interest rate lower than current market interest rates, and/or a reduction of accrued interest. The amount, timing and extent of the concession granted is considered in determining any impairment or changes in the specific valuation allowance recorded with the restructuring. Through the continuous monitoring process, a specific valuation allowance may have been recorded prior to the quarter when the mortgage loan is modified in a troubled debt restructuring. Accordingly, the carrying value (after specific valuation allowance) before and after modification through a troubled debt restructuring may not change significantly, or may increase if the expected recovery is higher than the pre-modification recovery assessment. The number of mortgage loans and carrying value after specific valuation allowance of mortgage loans modified during the period in a troubled debt restructuring were as follows:
For the Years Ended December 31, ------------------------------------------------------------------------------- 2012 2011 --------------------------------------- --------------------------------------- Number of Number of Mortgage Carrying Value after Specific Mortgage Carrying Value after Specific Loans Valuation Allowance Loans Valuation Allowance --------- ----------------------------- --------- ----------------------------- Pre- Post- Pre- Post- Modification Modification Modification Modification ------------ ------------ ------------ ------------ (In millions) (In millions) Commercial... 1 $ 168 $ 152 4 $ 125 $ 87 Agricultural. 5 17 16 9 40 40 --------- ------------ ------------ --------- ------------ ------------ Total...... 6 $ 185 $ 168 13 $ 165 $ 127 ========= ============ ============ ========= ============ ============
F-66 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) There were no mortgage loans during the previous 12 months modified in a troubled debt restructuring with a subsequent payment default at December 31, 2012. During the 12 months ended December 31, 2011, the Company had three agricultural mortgage loans, with a carrying value after specific valuation allowance of $11 million, modified in a troubled debt restructuring with a subsequent payment default. Payment default is determined in the same manner as delinquency status -- when interest and principal payments are past due. Other Invested Assets Other invested assets is comprised primarily of freestanding derivatives with positive estimated fair values (see Note 9), tax credit partnerships, loans to affiliates (see "-- Related Party Investment Transactions") and leveraged leases. Leveraged Leases Investment in leveraged leases, included in other invested assets, consisted of the following:
December 31, ------------------- 2012 2011 -------- ---------- (In millions) Rental receivables, net......... $ 1,465 $ 1,761 Estimated residual values....... 927 1,110 -------- ---------- Subtotal....................... 2,392 2,871 Unearned income................. (834) (1,039) -------- ---------- Investment in leveraged leases. $ 1,558 $ 1,832 ======== ==========
Rental receivables are generally due in periodic installments. The payment periods range from one to 15 years, but in certain circumstances, are as long as 33 years. For rental receivables, the primary credit quality indicator is whether the rental receivable is performing or non-performing, which is assessed monthly. The Company generally defines non-performing rental receivables as those that are 90 days or more past due. At December 31, 2012 and 2011, all rental receivables were performing. The deferred income tax liability related to leveraged leases was $1.4 billion and $1.3 billion at December 31, 2012 and 2011, respectively. The components of income from investment in leveraged leases, excluding net investment gains (losses) were as follows:
Years Ended December 31, ------------------------ 2012 2011 2010 ------ ------ ------ (In millions) Income from investment in leveraged leases........ $ 34 $ 101 $ 102 Less: Income tax expense on leveraged leases...... (12) (35) (36) ------ ------ ------ Investment income after income tax from investment in leveraged leases.................. $ 22 $ 66 $ 66 ====== ====== ======
F-67 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) Cash Equivalents The carrying value of cash equivalents, which includes securities and other investments with an original or remaining maturity of three months or less at the time of purchase, was $1.1 billion and $1.2 billion at December 31, 2012 and 2011, respectively. Net Unrealized Investment Gains (Losses) The components of net unrealized investment gains (losses), included in AOCI, were as follows:
Years Ended December 31, ---------------------------- 2012 2011 2010 --------- --------- -------- (In millions) Fixed maturity securities............................................... $ 19,120 $ 14,266 $ 6,189 Fixed maturity securities with noncredit OTTI losses in accumulated other comprehensive income (loss)..................................... (256) (522) (419) --------- --------- -------- Total fixed maturity securities...................................... 18,864 13,744 5,770 Equity securities....................................................... (13) (98) (66) Derivatives............................................................. 1,052 1,293 90 Short-term investments.................................................. (2) (10) (13) Other................................................................... 18 45 48 --------- --------- -------- Subtotal............................................................. 19,919 14,974 5,829 --------- --------- -------- Amounts allocated from: Insurance liability loss recognition................................... (5,120) (3,495) (426) DAC and VOBA related to noncredit OTTI losses recognized in accumulated other comprehensive income (loss)........................ 12 33 27 DAC and VOBA........................................................... (1,231) (1,102) (833) Policyholder dividend obligation....................................... (3,828) (2,919) (876) --------- --------- -------- Subtotal............................................................. (10,167) (7,483) (2,108) Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in accumulated other comprehensive income (loss)........... 86 172 138 Deferred income tax benefit (expense)................................... (3,498) (2,794) (1,440) --------- --------- -------- Net unrealized investment gains (losses)................................ 6,340 4,869 2,419 Net unrealized investment gains (losses) attributable to noncontrolling interests............................................................. (1) (1) (1) --------- --------- -------- Net unrealized investment gains (losses) attributable to Metropolitan Life Insurance Company................................................ $ 6,339 $ 4,868 $ 2,418 ========= ========= ========
F-68 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) The changes in fixed maturity securities with noncredit OTTI losses included in AOCI were as follows:
Years Ended December 31, -------------------------- 2012 2011 -------- -------- (In millions) Balance, January 1,............................... $ (522) $ (419) Noncredit OTTI losses recognized (1).............. (22) (17) Securities sold with previous noncredit OTTI loss. 122 85 Subsequent changes in estimated fair value........ 166 (171) -------- -------- Balance, December 31,............................. $ (256) $ (522) ======== ========
-------- (1)Noncredit OTTI losses recognized, net of DAC, were ($26) million and ($16) million for the years ended December 31, 2012 and 2011, respectively. The changes in net unrealized investment gains (losses) were as follows:
Years Ended December 31, ------------------------------ 2012 2011 2010 ---------- ---------- -------- (In millions) Balance, beginning of period............................................ $ 4,868 $ 2,418 $ (612) Cumulative effect of change in accounting principles, net of income tax. -- -- 10 Fixed maturity securities on which noncredit OTTI losses have been recognized............................................................ 266 (103) 155 Unrealized investment gains (losses) during the year.................... 4,679 9,248 6,650 Unrealized investment gains (losses) relating to: Insurance liability gain (loss) recognition............................ (1,625) (3,069) (426) DAC and VOBA related to noncredit OTTI losses recognized in accumulated other comprehensive income (loss)........................ (21) 6 (22) DAC and VOBA........................................................... (129) (269) (829) Policyholder dividend obligation....................................... (909) (2,043) (876) Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in accumulated other comprehensive income (loss).......... (86) 34 (46) Deferred income tax benefit (expense).................................. (704) (1,354) (1,580) ---------- ---------- -------- Net unrealized investment gains (losses)................................ 6,339 4,868 2,424 Net unrealized investment gains (losses) attributable to noncontrolling interests............................................................. -- -- (6) ---------- ---------- -------- Balance, end of period.................................................. $ 6,339 $ 4,868 $ 2,418 ========== ========== ======== Change in net unrealized investment gains (losses)...................... $ 1,471 $ 2,450 $ 3,036 Change in net unrealized investment gains (losses) attributable to noncontrolling interests.............................................. -- -- (6) ---------- ---------- -------- Change in net unrealized investment gains (losses) attributable to Metropolitan Life Insurance Company.................................... $ 1,471 $ 2,450 $ 3,030 ========== ========== ========
Concentrations of Credit Risk There were no investments in any counterparty that were greater than 10% of the Company's equity, other than the U.S. government and its agencies at both December 31, 2012 and 2011. F-69 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) Securities Lending As described in Note 1, the Company participates in a securities lending program. Elements of the securities lending program are presented below at:
December 31, ------------------- 2012 2011 --------- --------- (In millions) Securities on loan: (1) Amortized cost........................ $ 16,224 $ 13,595 Estimated fair value.................. $ 18,564 $ 15,726 Cash collateral on deposit from counterparties (2).................... $ 19,036 $ 15,870 Security collateral on deposit from counterparties (3).................... $ 46 $ 188 Reinvestment portfolio -- estimated fair value............................ $ 19,392 $ 15,803
-------- (1)Included within fixed maturity securities, equity securities and short-term investments. (2)Included within payables for collateral under securities loaned and other transactions. (3)Security collateral on deposit from counterparties may not be sold or repledged, unless the counterparty is in default, and is not reflected in the consolidated financial statements. Invested Assets on Deposit and Pledged as Collateral Invested assets on deposit and pledged as collateral are presented below at estimated fair value for cash and cash equivalents, short-term investments, fixed maturity and equity securities, and trading and FVO securities, and at carrying value for mortgage loans.
December 31, ----------------- 2012 2011 -------- -------- (In millions) Invested assets on deposit (regulatory deposits)............ $ 1,555 $ 976 Invested assets pledged as collateral (1)................... 19,812 17,280 -------- -------- Total invested assets on deposit and pledged as collateral. $ 21,367 $ 18,256 ======== ========
-------- (1)The Company has pledged fixed maturity securities, mortgage loans and cash and cash equivalents in connection with various agreements and transactions, including funding agreements (see Note 4) and derivative transactions (see Note 9). Purchased Credit Impaired Investments Investments acquired with evidence of credit quality deterioration since origination and for which it is probable at the acquisition date that the Company will be unable to collect all contractually required payments are classified as purchased credit impaired ("PCI") investments. For each investment, the excess of the cash flows expected to be collected as of the acquisition date over its acquisition-date fair value is referred to as the accretable yield and is recognized as net investment income on an effective yield basis. If subsequently, based on current information and events, it is probable that there is a significant increase in cash flows previously expected to be collected or if actual cash flows are significantly greater than cash flows previously expected to be collected, the accretable yield is adjusted prospectively. The excess of the contractually required payments (including interest) as of the acquisition date over the cash flows expected to be collected as of the acquisition F-70 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) date is referred to as the nonaccretable difference, and this amount is not expected to be realized as net investment income. Decreases in cash flows expected to be collected can result in OTTI (see Note 1). The Company's PCI fixed maturity securities were as follows at:
December 31, ----------------- 2012 2011 -------- -------- (In millions) Outstanding principal and interest balance (1)........................... $ 4,335 $ 3,708 Carrying value (2)...................... $ 3,441 $ 2,675
-------- (1)Represents the contractually required payments, which is the sum of contractual principal, whether or not currently due, and accrued interest. (2)Estimated fair value plus accrued interest. The following table presents information about PCI fixed maturity securities acquired during the periods indicated:
Years Ended December 31, -------------------------- 2012 2011 -------- -------- (In millions) Contractually required payments (including interest).................. $ 1,911 $ 4,260 Cash flows expected to be collected (1). $ 1,436 $ 3,603 Fair value of investments acquired...... $ 936 $ 2,140
-------- (1)Represents undiscounted principal and interest cash flow expectations at the date of acquisition. The following table presents activity for the accretable yield on PCI fixed maturity securities for:
Years Ended December 31, -------------------------- 2012 2011 --------- -------- (In millions) Accretable yield, January 1,............ $ 1,978 $ 436 Investments purchased................... 500 1,463 Accretion recognized in earnings........ (181) (97) Disposals............................... (84) -- Reclassification (to) from nonaccretable difference.............. 144 176 --------- -------- Accretable yield, December 31,.......... $ 2,357 $ 1,978 ========= ========
Collectively Significant Equity Method Investments The Company holds investments in real estate joint ventures, real estate funds and other limited partnership interests consisting of leveraged buy-out funds, hedge funds, private equity funds, joint ventures and other funds. The portion of these investments accounted for under the equity method had a carrying value of $7.5 billion at December 31, 2012. The Company's maximum exposure to loss related to these equity method investments is limited to the carrying value of these investments plus unfunded commitments of $1.9 billion at December 31, 2012. Except for certain real estate joint ventures, the Company's investments in real estate funds and other limited partnership interests are generally of a passive nature in that the Company does not participate in the management of the entities. F-71 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) As described in Note 1, the Company generally records its share of earnings in its equity method investments using a three-month lag methodology and within net investment income. Aggregate net investment income from these equity method investments exceeded 10% of the Company's consolidated pre-tax income (loss) from continuing operations for two of the three most recent annual periods: 2011 and 2010. The Company is providing the following aggregated summarized financial data for such equity method investments, for the most recent annual periods, in order to provide comparative information. This aggregated summarized financial data does not represent the Company's proportionate share of the assets, liabilities, or earnings of such entities. The aggregated summarized financial data presented below reflects the latest available financial information and is as of, and for, the years ended December 31, 2012, 2011 and 2010. Aggregate total assets of these entities totaled $259.4 billion and $229.7 billion at December 31, 2012 and 2011, respectively. Aggregate total liabilities of these entities totaled $22.2 billion at both December 31, 2012 and 2011. Aggregate net income (loss) of these entities totaled $16.5 billion, $8.4 billion and $16.5 billion for the years ended December 31, 2012, 2011 and 2010, respectively. Aggregate net income (loss) from the underlying entities in which the Company invests is primarily comprised of investment income, including recurring investment income and realized and unrealized investment gains (losses). Variable Interest Entities The Company has invested in certain structured transactions that are VIEs. In certain instances, the Company holds both the power to direct the most significant activities of the entity, as well as an economic interest in the entity and, as such, is deemed to be the primary beneficiary or consolidator of the entity. The determination of the VIE's primary beneficiary requires an evaluation of the contractual and implied rights and obligations associated with each party's relationship with or involvement in the entity, an estimate of the entity's expected losses and expected residual returns and the allocation of such estimates to each party involved in the entity. The Company generally uses a qualitative approach to determine whether it is the primary beneficiary. However, for VIEs that are investment companies or apply measurement principles consistent with those utilized by investment companies, the primary beneficiary is based on a risks and rewards model and is defined as the entity that will absorb a majority of a VIE's expected losses, receive a majority of a VIE's expected residual returns if no single entity absorbs a majority of expected losses, or both. The Company reassesses its involvement with VIEs on a quarterly basis. The use of different methodologies, assumptions and inputs in the determination of the primary beneficiary could have a material effect on the amounts presented within the consolidated financial statements. Consolidated VIEs The following table presents the total assets and total liabilities relating to VIEs for which the Company has concluded that it is the primary beneficiary and which are consolidated at December 31, 2012 and 2011. Creditors or beneficial interest holders of VIEs where the Company is the primary beneficiary have no recourse to the general credit of the Company, as the Company's obligation to the VIEs is limited to the amount of its committed investment. F-72 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued)
December 31, ------------------------------------- 2012 2011 ------------------ ------------------ Total Total Total Total Assets Liabilities Assets Liabilities ------ ----------- ------ ----------- (In millions) Other limited partnership interests..... $ 189 $ 1 $ 203 $ 1 CSEs (assets (primarily securities) and liabilities (primarily debt)) (1)..... 51 50 146 138 Fixed maturity securities (2)........... 172 83 -- -- Other invested assets................... 85 -- 102 1 Real estate joint ventures.............. 11 14 16 18 ------ ------ ------ ------ Total................................. $ 508 $ 148 $ 467 $ 158 ====== ====== ====== ======
-------- (1)The Company consolidates former QSPEs that are structured as collateralized debt obligations. The assets of these entities can only be used to settle their respective liabilities, and under no circumstances is the Company liable for any principal or interest shortfalls should any arise. The assets and liabilities of these CSEs are primarily trading and FVO securities and long-term debt, respectively, and to a lesser extent include cash and cash equivalents and other liabilities. The Company's exposure was limited to that of its remaining investment in the former QSPEs of less than $1 million at estimated fair value at both December 31, 2012 and 2011. The long-term debt bears interest primarily at variable rates, payable on a bi-annual basis. Interest expense related to these obligations, included in other expenses, was $4 million, $9 million and $15 million for the years ended December 31, 2012, 2011 and 2010, respectively. (2)The Company consolidates certain fixed maturity securities purchased in an investment vehicle which was partially funded with affiliated long-term debt. The long-term debt bears interest primarily at variable rates, payable on a bi-annual basis. Interest expense related to these obligations, included in other expenses, was $1 million for the year ended December 31, 2012. There was no interest expense for both the years ended December 31, 2011 and 2010. Unconsolidated VIEs The carrying amount and maximum exposure to loss relating to VIEs in which the Company holds a significant variable interest but is not the primary beneficiary and which have not been consolidated were as follows at:
December 31, ------------------------------------------- 2012 2011 --------------------- --------------------- Maximum Maximum Carrying Exposure Carrying Exposure Amount to Loss (1) Amount to Loss (1) --------- ----------- --------- ----------- (In millions) Fixed maturity securities AFS: Structured securities (RMBS, CMBS and ABS) (2)............................. $ 42,936 $ 42,936 $ 41,410 $ 41,410 U.S. and foreign corporate............ 2,566 2,566 2,379 2,379 Other limited partnership interests..... 2,966 3,880 2,537 3,259 Other invested assets................... 1,068 1,381 745 1,140 Real estate joint ventures.............. 34 40 32 49 --------- --------- --------- --------- Total................................ $ 49,570 $ 50,803 $ 47,103 $ 48,237 ========= ========= ========= =========
-------- (1)The maximum exposure to loss relating to fixed maturity securities is equal to their carrying amounts or the carrying amounts of retained interests. The maximum exposure to loss relating to other limited partnership F-73 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) interests and real estate joint ventures is equal to the carrying amounts plus any unfunded commitments of the Company. For certain of its investments in other invested assets, the Company's return is in the form of income tax credits which are guaranteed by creditworthy third parties. For such investments, the maximum exposure to loss is equal to the carrying amounts plus any unfunded commitments, reduced by income tax credits guaranteed by third parties of $315 million and $264 million at December 31, 2012 and 2011, respectively. Such a maximum loss would be expected to occur only upon bankruptcy of the issuer or investee. (2)For these variable interests, the Company's involvement is limited to that of a passive investor. As described in Note 17, the Company makes commitments to fund partnership investments in the normal course of business. Excluding these commitments, the Company did not provide financial or other support to investees designated as VIEs during the years ended December 31, 2012, 2011 and 2010. Net Investment Income The components of net investment income were as follows:
Years Ended December 31, ----------------------------- 2012 2011 2010 --------- --------- --------- (In millions) Investment income: Fixed maturity securities........................................ $ 8,295 $ 8,225 $ 8,147 Equity securities................................................ 68 73 89 Trading and FVO securities -- Actively Traded Securities and FVO general account securities (1)................................. 77 29 72 Mortgage loans................................................... 2,528 2,401 2,258 Policy loans..................................................... 451 479 515 Real estate and real estate joint ventures....................... 593 493 329 Other limited partnership interests.............................. 555 435 684 Cash, cash equivalents and short-term investments................ 19 12 15 International joint ventures..................................... (2) (1) 9 Other............................................................ 7 112 111 --------- --------- --------- Subtotal..................................................... 12,591 12,258 12,229 Less: Investment expenses...................................... 743 652 663 --------- --------- --------- Subtotal, net................................................ 11,848 11,606 11,566 --------- --------- --------- FVO CSEs -- interest income: Securities..................................................... 4 9 15 --------- --------- --------- Net investment income...................................... $ 11,852 $ 11,615 $ 11,581 ========= ========= =========
-------- (1)Changes in estimated fair value subsequent to purchase for securities still held as of the end of the respective years included in net investment income were $44 million, $2 million and $30 million for the years ended December 31, 2012, 2011, and 2010, respectively. See "-- Variable Interest Entities" for discussion of CSEs. See "-- Related Party Investment Transactions" for discussion of affiliated net investment income and investment expenses. F-74 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) Net Investment Gains (Losses) Components of Net Investment Gains (Losses) The components of net investment gains (losses) were as follows:
Years Ended December 31, ------------------------ 2012 2011 2010 -------- ------ -------- (In millions) Total gains (losses) on fixed maturity securities: Total OTTI losses recognized -- by sector and industry: U.S. and foreign corporate securities -- by industry: Utility................................ $ (29) $ -- $ (1) Finance................................ (21) (37) (117) Consumer............................... (19) (40) (20) Communications......................... (18) (26) (10) Industrial............................. (4) (8) -- Transportation......................... (1) -- -- -------- ------ -------- Total U.S. and foreign corporate securities......................... (92) (111) (148) RMBS................................... (70) (78) (87) CMBS................................... (28) (9) (59) ABS.................................... (2) (28) (66) Foreign government..................... -- (1) -- -------- ------ -------- OTTI losses on fixed maturity securities recognized in earnings........ (192) (227) (360) Fixed maturity securities -- net gains (losses) on sales and disposals.... 16 107 129 -------- ------ -------- Total gains (losses) on fixed maturity securities.................. (176) (120) (231) -------- ------ -------- Total gains (losses) on equity securities: Total OTTI losses recognized -- by sector: Common................................... (7) (8) (4) Non-redeemable preferred................. -- (33) (3) -------- ------ -------- OTTI losses on equity securities recognized in earnings................... (7) (41) (7) Equity securities - net gains (losses) on sales and disposals.......... 15 44 77 -------- ------ -------- Total gains (losses) on equity securities............................. 8 3 70 -------- ------ -------- Trading and FVO securities -- FVO general account securities -- changes in estimated fair value subsequent to consolidation............................. 11 (2) -- Mortgage loans.............................. 84 133 59 Real estate and real estate joint ventures.................................. (27) 133 (33) Other limited partnership interests......... (35) 11 (5) Other investment portfolio gains (losses).................................. (192) (4) 36 -------- ------ -------- Subtotal -- investment portfolio gains (losses)......................... (327) 154 (104) -------- ------ -------- FVO CSEs -- changes in estimated fair value subsequent to consolidation: Securities................................ -- -- (78) Long-term debt -- related to securities............................... (7) (8) 48 Non-investment portfolio gains (losses)..... 4 (14) (36) -------- ------ -------- Subtotal FVO CSEs and non-investment portfolio gains (losses)............... (3) (22) (66) -------- ------ -------- Total net investment gains (losses).... $ (330) $ 132 $ (170) ======== ====== ========
F-75 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) See "-- Variable Interest Entities" for discussion of CSEs. See "-- Related Party Investment Transactions" for discussion of affiliated net investment gains (losses) related to transfers of invested assets to affiliates. Gains (losses) from foreign currency transactions included within net investment gains (losses) were $2 million, $21 million and $18 million for the years ended December 31, 2012, 2011 and 2010, respectively. Sales or Disposals and Impairments of Fixed Maturity and Equity Securities Proceeds from sales or disposals of fixed maturity and equity securities and the components of fixed maturity and equity securities net investment gains (losses) are as shown in the table below. Investment gains and losses on sales of securities are determined on a specific identification basis.
Years Ended December 31, ----------------------------------------------------------------------- 2012 2011 2010 2012 2011 2010 2012 2011 2010 -------- -------- -------- ----- ----- ----- -------- -------- -------- Fixed Maturity Securities Equity Securities Total -------------------------- ----------------- -------------------------- (In millions) Proceeds..................................... $ 29,472 $ 34,015 $ 30,817 $ 126 $ 771 $ 429 $ 29,598 $ 34,786 $ 31,246 ======== ======== ======== ===== ===== ===== ======== ======== ======== Gross investment gains....................... $ 327 $ 445 $ 544 $ 23 $ 86 $ 88 $ 350 $ 531 $ 632 -------- -------- -------- ----- ----- ----- -------- -------- -------- Gross investment losses...................... (311) (338) (415) (8) (42) (11) (319) (380) (426) -------- -------- -------- ----- ----- ----- -------- -------- -------- Total OTTI losses recognized in earnings: Credit-related.............................. (125) (183) (334) -- -- -- (125) (183) (334) Other (1)................................... (67) (44) (26) (7) (41) (7) (74) (85) (33) -------- -------- -------- ----- ----- ----- -------- -------- -------- Total OTTI losses recognized in earnings.. (192) (227) (360) (7) (41) (7) (199) (268) (367) -------- -------- -------- ----- ----- ----- -------- -------- -------- Net investment gains (losses)............. $ (176) $ (120) $ (231) $ 8 $ 3 $ 70 $ (168) $ (117) $ (161) ======== ======== ======== ===== ===== ===== ======== ======== ========
-------- (1)Other OTTI losses recognized in earnings include impairments on (i) equity securities, (ii) perpetual hybrid securities classified within fixed maturity securities where the primary reason for the impairment was the severity and/or the duration of an unrealized loss position and (iii) fixed maturity securities where there is an intent to sell or it is more likely than not that the Company will be required to sell the security before recovery of the decline in estimated fair value. Credit Loss Rollforward The table below presents a rollforward of the cumulative credit loss component of OTTI loss recognized in earnings on fixed maturity securities still held for which a portion of the OTTI loss was recognized in OCI:
Years Ended December 31, -------------------------- 2012 2011 -------- -------- (In millions) Balance, at January 1,.................................................................... $ 316 $ 330 Additions: Initial impairments -- credit loss OTTI recognized on securities not previously impaired. 38 33 Additional impairments -- credit loss OTTI recognized on securities previously impaired.. 45 68 Reductions: Sales (maturities, pay downs or prepayments) during the period of securities previously impaired as credit loss OTTI............................................................ (95) (82) Securities impaired to net present value of expected future cash flows................... (17) (24) Increases in cash flows -- accretion of previous credit loss OTTI........................ (2) (9) -------- -------- Balance, at December 31,.................................................................. $ 285 $ 316 ======== ========
F-76 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) Related Party Investment Transactions In the normal course of business, the Company transfers invested assets, primarily consisting of fixed maturity securities, to and from affiliates. Invested assets transferred to and from affiliates were as follows:
Years Ended December 31, ------------------------ 2012 2011 2010 ----- ------ ------ (In millions) Estimated fair value of invested assets transferred to affiliates............. $ 4 $ 170 $ 444 Amortized cost of invested assets transferred to affiliates............. $ 4 $ 164 $ 431 Net investment gains (losses) recognized on transfers............... $ -- $ 6 $ 13 Estimated fair value of invested assets transferred from affiliates........... $ -- $ 132 $ 582
The Company purchased from MetLife Bank, an affiliate, $1.5 billion of fixed maturity securities, at estimated fair value, for cash during the year ended December 31, 2012. See "-- Mortgage Loans" for information on additional purchases from this affiliate. The Company has affiliated loans outstanding, which are included in other invested assets, totaling $1.5 billion at both December 31, 2012 and 2011. At December 31, 2011, the loans were outstanding with Exeter, an affiliate. During 2012, MetLife, Inc. assumed this affiliated debt from Exeter. One loan matured on September 30, 2012 and was replaced by a new loan on October 1, 2012. The loans which bear interest at a fixed rate, payable semiannually are due as follows: $500 million at 6.44% due on June 30, 2014, $250 million at 3.57% due on October 1, 2019, $250 million at 7.44% due on September 30, 2016, $150 million at 5.64% due July 15, 2021 and $375 million at 5.86% due December 16, 2021. Net investment income from these loans was $93 million, $69 million and $59 million for the years ended December 31, 2012, 2011 and 2010, respectively. The Company has a loan outstanding to Exeter, which is included in other invested assets, totaling $75 million at both December 31, 2012 and 2011. This loan is due on December 30, 2014 and bears interest on a weighted average of 6.80%. Net investment income from this loan was $5 million for each of the years ended December 31, 2012, 2011 and 2010, respectively. The Company provides investment administrative services to certain affiliates. The related investment administrative service charges to these affiliates were $158 million, $164 million and $107 million for the years ended December 31, 2012, 2011 and 2010, respectively. The Company also had additional affiliated net investment income of $4 million, $3 million and $16 million for the years ended December 31, 2012, 2011 and 2010, respectively. 9. Derivatives Accounting for Derivatives See Note 1 for a description of the Company's accounting policies for derivatives and Note 10 for information about the fair value hierarchy for derivatives. Derivative Strategies The Company is exposed to various risks relating to its ongoing business operations, including interest rate, foreign currency exchange rate, credit and equity market. The Company uses a variety of strategies to manage these risks, including the use of derivatives. F-77 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) Derivatives are financial instruments whose values are derived from interest rates, foreign currency exchange rates, credit spreads and/or other financial indices. Derivatives may be exchange-traded or contracted in the over-the-counter ("OTC") market. The types of derivatives the Company uses include swaps, forwards, futures and option contracts. To a lesser extent, the Company uses credit default swaps and structured interest rate swaps to synthetically replicate investment risks and returns which are not readily available in the cash market. The Company also purchases certain securities, issues certain insurance policies and investment contracts and engages in certain reinsurance agreements that have embedded derivatives. Interest Rate Derivatives The Company uses a variety of interest rate derivatives to reduce its exposure to changes in interest rates, including interest rate swaps, caps, floors, swaptions and forwards. Interest rate swaps are used by the Company primarily to reduce market risks from changes in interest rates and to alter interest rate exposure arising from mismatches between assets and liabilities (duration mismatches). In an interest rate swap, the Company agrees with another party to exchange, at specified intervals, the difference between fixed rate and floating rate interest amounts as calculated by reference to an agreed notional amount. The Company utilizes interest rate swaps in fair value, cash flow and non-qualifying hedging relationships. The Company uses structured interest rate swaps to synthetically create investments that are either more expensive to acquire or otherwise unavailable in the cash markets. These transactions are a combination of a derivative and a cash instrument such as a U.S. Treasury, agency, or other fixed maturity security. Structured interest rate swaps are included in interest rate swaps. Structured interest rate swaps are not designated as hedging instruments The Company purchases interest rate caps and floors primarily to protect its floating rate liabilities against rises in interest rates above a specified level, and against interest rate exposure arising from mismatches between assets and liabilities, as well as to protect its minimum rate guarantee liabilities against declines in interest rates below a specified level, respectively. In certain instances, the Company locks in the economic impact of existing purchased caps and floors by entering into offsetting written caps and floors. The Company utilizes interest rate caps and floors in non-qualifying hedging relationships. Swaptions are used by the Company to hedge interest rate risk associated with the Company's long-term liabilities and invested assets. A swaption is an option to enter into a swap with a forward starting effective date. In certain instances, the Company locks in the economic impact of existing purchased swaptions by entering into offsetting written swaptions. The Company pays a premium for purchased swaptions and receives a premium for written swaptions. The Company utilizes swaptions in non-qualifying hedging relationships. Swaptions are included in interest rate options. The Company enters into interest rate forwards to buy and sell securities. The price is agreed upon at the time of the contract and payment for such a contract is made at a specified future date. The Company utilizes interest rate forwards in cash flow and non-qualifying hedging relationships. To a lesser extent the Company uses interest rate futures in non-qualifying hedging relationships. Foreign Currency Exchange Rate Derivatives The Company uses foreign currency exchange rate derivatives including foreign currency swaps and foreign currency forwards to reduce the risk from fluctuations in foreign currency exchange rates associated with its F-78 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) assets and liabilities denominated in foreign currencies. In a foreign currency swap transaction, the Company agrees with another party to exchange, at specified intervals, the difference between one currency and another at a fixed exchange rate, generally set at inception, calculated by reference to an agreed upon notional amount. The notional amount of each currency is exchanged at the inception and termination of the currency swap by each party. The Company utilizes foreign currency swaps in fair value, cash flow and non-qualifying hedging relationships. In a foreign currency forward transaction, the Company agrees with another party to deliver a specified amount of an identified currency at a specified future date. The price is agreed upon at the time of the contract and payment for such a contract is made at the specified future date. The Company utilizes foreign currency forwards in non-qualifying hedging relationships. To a lesser extent the Company uses currency options in non-qualifying hedging relationships. Credit Derivatives Credit default swaps are primarily used to synthetically create credit investments that are either more expensive to acquire or otherwise unavailable in the cash markets. These transactions are a combination of a derivative and one or more cash instruments such as U.S. Treasury securities, agency securities or other fixed maturity securities. The Company also enters into certain credit default swaps held in relation to trading portfolios for the purpose of generating profits on short-term differences in price. These credit default swaps are not designated as hedging instruments. The Company also uses credit default swaps to economically hedge against credit-related changes in the value of its investments. The Company utilizes credit default swaps in non-qualifying hedging relationships. Equity Derivatives To a lesser extent, the Company uses equity index options in non-qualifying hedging relationships. F-79 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) Primary Risks Managed by Derivatives The following table presents the gross notional amount, estimated fair value and primary underlying risk exposure of the Company's derivatives, excluding embedded derivatives, held at:
December 31, ------------------------------------------------------------- 2012 2011 ------------------------------- ----------------------------- Estimated Fair Value Estimated Fair Value Notional -------------------- Notional -------------------- Primary Underlying Risk Exposure Amount Assets Liabilities Amount Assets Liabilities - -------------------------------- ---------- -------- ----------- -------- -------- ----------- (In millions) Derivatives Designated as Hedging Instruments Fair value hedges: Interest rate swaps..... Interest rate............. $ 4,824 $ 1,893 $ 79 $ 4,259 $ 1,849 $ 86 Foreign currency swaps.. Foreign currency exchange rate............. 3,064 332 71 2,622 312 79 ---------- -------- -------- -------- -------- -------- Subtotal............................................. 7,888 2,225 150 6,881 2,161 165 ---------- -------- -------- -------- -------- -------- Cash flow hedges: Interest rate swaps..... Interest rate............. 2,984 606 -- 2,875 852 -- Interest rate forwards.. Interest rate............. 265 58 -- 345 81 -- Foreign currency swaps.. Foreign currency exchange rate............. 7,595 198 246 5,135 314 160 Credit forwards......... Credit.................... -- -- -- 20 4 -- ---------- -------- -------- -------- -------- -------- Subtotal............................................. 10,844 862 246 8,375 1,251 160 ---------- -------- -------- -------- -------- -------- Total qualifying hedges............................ 18,732 3,087 396 15,256 3,412 325 ---------- -------- -------- -------- -------- -------- Derivatives Not Designated or Not Qualifying as Hedging Instruments Interest rate swaps....... Interest rate............. 41,008 1,978 854 28,935 1,908 866 Interest rate floors...... Interest rate............. 33,870 737 493 13,290 789 14 Interest rate caps........ Interest rate............. 40,434 63 -- 38,532 83 -- Interest rate futures..... Interest rate............. 2,476 -- 10 2,675 6 2 Interest rate options..... Interest rate............. 4,862 336 2 4,624 326 -- Interest rate forwards.... Interest rate............. -- -- -- 500 -- 14 Synthetic GICs............ Interest rate............. 4,162 -- -- 4,454 -- -- Foreign currency swaps.... Foreign currency exchange rate............. 6,411 137 532 5,392 241 410 Foreign currency forwards. Foreign currency exchange rate............. 2,131 16 26 2,014 81 -- Currency options.......... Foreign currency exchange rate............. 129 1 -- -- -- -- Credit default swaps...... Credit.................... 7,693 62 19 7,765 90 81 Equity options............ Equity market............. 630 1 -- 135 -- -- ---------- -------- -------- -------- -------- -------- Total non-designated or non-qualifying derivatives......................................... 143,806 3,331 1,936 108,316 3,524 1,387 ---------- -------- -------- -------- -------- -------- Total................................................ $ 162,538 $ 6,418 $ 2,332 $123,572 $ 6,936 $ 1,712 ========== ======== ======== ======== ======== ========
The estimated fair value of all derivatives in an asset position is reported within other invested assets in the consolidated balance sheets and the estimated fair value of all derivatives in a liability position is reported within other liabilities in the consolidated balance sheets. Net Derivative Gains (Losses) The components of net derivative gains (losses) were as follows:
Years Ended December 31, ------------------------ 2012 2011 2010 ------ -------- -------- (In millions) Derivatives and hedging gains (losses) (1).................................... $ 77 $ 2,040 $ 353 Embedded derivatives.................... 598 (462) (619) ------ -------- -------- Total net derivative gains (losses).... $ 675 $ 1,578 $ (266) ====== ======== ========
-------- (1)Includes foreign currency transaction gains (losses) on hedged items in cash flow and non-qualifying hedging relationships, which are not presented elsewhere in this note. F-80 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) The following table presents earned income on derivatives for the:
Years Ended December 31, ------------------------ 2012 2011 2010 ------ ------ ------ (In millions) Qualifying hedges: Net investment income................. $ 108 $ 96 $ 82 Interest credited to policyholder account balances..................... 146 173 196 Non-qualifying hedges: Net investment income................. (6) (8) (4) Net derivative gains (losses)......... 314 179 53 ------ ------ ------ Total................................ $ 562 $ 440 $ 327 ====== ====== ======
Non-Qualifying Derivatives and Derivatives for Purposes Other Than Hedging The following table presents the amount and location of gains (losses) recognized in income for derivatives that were not designated or qualifying as hedging instruments:
Net Net Derivative Investment Gains (Losses) Income (1) -------------- ---------- (In millions) For the Year Ended December 31, 2012: Interest rate derivatives............... $ (83) $ -- Foreign currency exchange rate derivatives........................... (252) -- Credit derivatives...................... 33 (15) Equity derivatives...................... -- (12) -------------- ---------- Total................................. $ (302) $ (27) ============== ========== For the Year Ended December 31, 2011: Interest rate derivatives............... $ 1,679 $ -- Foreign currency exchange rate derivatives........................... 103 -- Credit derivatives...................... 13 5 Equity derivatives...................... -- (14) -------------- ---------- Total................................. $ 1,795 $ (9) -------------- ========== For the Year Ended December 31, 2010: Interest rate derivatives............... $ 149 $ -- Foreign currency exchange rate derivatives........................... 106 -- Credit derivatives...................... 28 (2) Equity derivatives...................... 13 (17) -------------- ---------- Total................................. $ 296 $ (19) ============== ==========
-------- (1)Changes in estimated fair value related to economic hedges of equity method investments in joint ventures, and changes in estimated fair value related to derivatives held in relation to trading portfolios. F-81 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) Fair Value Hedges The Company designates and accounts for the following as fair value hedges when they have met the requirements of fair value hedging: (i) interest rate swaps to convert fixed rate assets and liabilities to floating rate assets and liabilities; and (ii) foreign currency swaps to hedge the foreign currency fair value exposure of foreign currency denominated assets and liabilities. The Company recognizes gains and losses on derivatives and the related hedged items in fair value hedges within net derivative gains (losses). The following table presents the amount of such net derivative gains (losses):
Net Derivative Net Derivative Ineffectiveness Gains (Losses) Gains (Losses) Recognized in Derivatives in Fair Value Hedged Items in Fair Value Recognized Recognized for Net Derivative Hedging Relationships Hedging Relationships for Derivatives Hedged Items Gains (Losses) ------------------------- ----------------------------------- --------------- -------------- --------------- (In millions) For the Year Ended December 31, 2012: Interest rate swaps: Fixed maturity securities.......... $ 2 $ (3) $ (1) Policyholder liabilities (1)....... (72) 89 17 Foreign currency swaps: Foreign-denominated fixed maturity securities......................... (1) 1 -- Foreign-denominated PABs (2)....... 32 (41) (9) ----------- ------------- ---------- Total..................................................... $ (39) $ 46 $ 7 =========== ============= ========== For the Year Ended December 31, 2011: Interest rate swaps: Fixed maturity securities.......... $ (18) $ 18 $ -- Policyholder liabilities (1)....... 1,019 (994) 25 Foreign currency swaps: Foreign-denominated fixed maturity securities......................... 1 3 4 Foreign-denominated PABs (2)....... 28 (55) (27) ----------- ------------- ---------- Total..................................................... $ 1,030 $ (1,028) $ 2 =========== ============= ========== For the Year Ended December 31, 2010: Interest rate swaps: Fixed maturity securities.......... $ (13) $ 15 $ 2 Policyholder liabilities (1)....... 153 (150) 3 Foreign currency swaps: Foreign-denominated fixed maturity securities......................... 13 (13) -- Foreign-denominated PABs (2)....... 47 (34) 13 ----------- ------------- ---------- Total..................................................... $ 200 $ (182) $ 18 =========== ============= ==========
-------- (1)Fixed rate liabilities reported in PABs or future policy benefits. (2)Fixed rate or floating rate liabilities. All components of each derivative's gain or loss were included in the assessment of hedge effectiveness. Cash Flow Hedges The Company designates and accounts for the following as cash flow hedges when they have met the requirements of cash flow hedging: (i) interest rate swaps to convert floating rate assets and liabilities to fixed rate assets and liabilities; (ii) foreign currency swaps to hedge the foreign currency cash flow exposure of foreign currency denominated assets and liabilities; (iii) interest rate forwards and credit forwards to lock in the price to be paid for forward purchases of investments; and (iv) interest rate swaps and interest rate forwards to hedge the forecasted purchases of fixed-rate investments. In certain instances, the Company discontinued cash flow hedge accounting because the forecasted transactions were no longer probable of occurring. Because certain of the forecasted transactions also were not F-82 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) probable of occurring within two months of the anticipated date, the Company reclassified $1 million, $3 million and $9 million from AOCI into net derivative gains (losses) for the years ended December 31, 2012, 2011 and 2010, respectively, related to such discontinued cash flow hedges. At December 31, 2012 and 2011, the maximum length of time over which the Company was hedging its exposure to variability in future cash flows for forecasted transactions did not exceed eight years and nine years, respectively. At December 31, 2012 and 2011, the balance in AOCI associated with cash flow hedges was $1.1 billion and $1.3 billion, respectively. The following table presents the effects of derivatives in cash flow hedging relationships on the consolidated statements of operations and the consolidated statements of equity:
Amount of Gains (Losses) Amount and Location of Gains Amount and Location Deferred in Accumulated (Losses) Reclassified from of Gains (Losses) Derivatives in Cash Flow Other Comprehensive Income Accumulated Other Comprehensive Recognized in Income (Loss) Hedging Relationships (Loss) on Derivatives Income (Loss) into Income (Loss) on Derivatives ------------------------ -------------------------- --------------------------------------- --------------------------- (Effective Portion) (Effective Portion) (Ineffective Portion) -------------------------- --------------------------------------- --------------------------- Net Derivative Net Investment Other Net Derivative Gains (Losses) Income Expenses Gains (Losses) -------------- -------------- --------- --------------------------- (In millions) For the Year Ended December 31, 2012: Interest rate swaps...... $ (55) $ 3 $ 4 $ -- $ 1 Interest rate forwards... (1) -- 2 -- -- Foreign currency swaps... (187) (7) (5) -- (5) Credit forwards.......... -- -- 1 -- -- -------------------------- -------------- -------------- --------- --------------------------- Total.................. $ (243) $ (4) $ 2 $ -- $ (4) ========================== ============== ============== ========= =========================== For the Year Ended December 31, 2011: Interest rate swaps...... $ 919 $ -- $ 1 $ -- $ 1 Interest rate forwards... 128 22 2 -- 2 Foreign currency swaps... 166 7 (5) -- 1 Credit forwards.......... 18 1 -- -- -- -------------------------- -------------- -------------- --------- --------------------------- Total.................. $ 1,231 $ 30 $ (2) $ -- $ 4 ========================== ============== ============== ========= =========================== For the Year Ended December 31, 2010: Interest rate swaps...... $ 90 $ -- $ -- $ 1 $ 3 Interest rate forwards... (35) 10 3 -- (1) Foreign currency swaps... 74 (56) (6) -- -- Credit forwards.......... 5 -- -- -- -- -------------------------- -------------- -------------- --------- --------------------------- Total.................. $ 134 $ (46) $ (3) $ 1 $ 2 ========================== ============== ============== ========= ===========================
All components of each derivative's gain or loss were included in the assessment of hedge effectiveness. At December 31, 2012, ($4) million of deferred net gains (losses) on derivatives in AOCI was expected to be reclassified to earnings within the next 12 months. Credit Derivatives In connection with synthetically created credit investment transactions and credit default swaps held in relation to the trading portfolio, the Company writes credit default swaps for which it receives a premium to insure credit risk. Such credit derivatives are included within the non-qualifying derivatives and derivatives for purposes other than hedging table. If a credit event occurs, as defined by the contract, the contract may be cash settled or it may F-83 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) be settled gross by the Company paying the counterparty the specified swap notional amount in exchange for the delivery of par quantities of the referenced credit obligation. The Company's maximum amount at risk, assuming the value of all referenced credit obligations is zero, was $6.2 billion and $5.4 billion at December 31, 2012 and 2011, respectively. The Company can terminate these contracts at any time through cash settlement with the counterparty at an amount equal to the then current fair value of the credit default swaps. At December 31, 2012 and 2011, the Company would have received $50 million and paid $29 million, respectively, to terminate all of these contracts. The following table presents the estimated fair value, maximum amount of future payments and weighted average years to maturity of written credit default swaps at:
December 31, ----------------------------------------------------------------------------- 2012 2011 -------------------------------------- -------------------------------------- Maximum Maximum Estimated Amount Estimated Amount Fair Value of Future Weighted Fair Value of Future Weighted of Credit Payments under Average of Credit Payments under Average Rating Agency Designation of Referenced Default Credit Default Years to Default Credit Default Years to Credit Obligations (1) Swaps Swaps (2) Maturity (3) Swaps Swaps (2) Maturity (3) --------------------------------------- ---------- -------------- ------------ ---------- -------------- ------------ (In millions) (In millions) Aaa/Aa/A Single name credit default swaps (corporate)........................ $ 7 573 2.5 $ 3 $ 488 3.1 Credit default swaps referencing indices............................ 31 2,064 2.1 (1) 2,150 3.0 ---------- -------------- ---------- -------------- Subtotal............................ 38 2,637 2.2 2 2,638 3.0 ---------- -------------- ---------- -------------- Baa Single name credit default swaps (corporate)........................ 4 835 3.2 (10) 750 3.6 Credit default swaps referencing indices............................ 6 2,469 4.9 (19) 1,959 4.9 ---------- -------------- ---------- -------------- Subtotal............................ 10 3,304 4.5 (29) 2,709 4.5 ---------- -------------- ---------- -------------- Ba Single name credit default swaps (corporate)........................ -- 25 2.7 -- 25 3.5 Credit default swaps referencing indices............................ -- -- -- -- -- -- ---------- -------------- ---------- -------------- Subtotal............................ -- 25 2.7 -- 25 3.5 ---------- -------------- ---------- -------------- B Single name credit default swaps (corporate)........................ -- -- -- -- -- -- Credit default swaps referencing indices............................ 2 264 4.9 (2) 25 4.8 ---------- -------------- ---------- -------------- Subtotal............................. 2 264 4.9 (2) 25 4.8 ---------- -------------- ---------- -------------- Total................................ $ 50 $ 6,230 3.5 $ (29) $ 5,397 3.8 ========== ============== ========== ==============
-------- (1)The rating agency designations are based on availability and the midpoint of the applicable ratings among Moody's Investors Service ("Moody's"), S&P and Fitch Ratings. If no rating is available from a rating agency, then an internally developed rating is used. (2)Assumes the value of the referenced credit obligations is zero. F-84 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) (3)The weighted average years to maturity of the credit default swaps is calculated based on weighted average notional amounts. The Company has also entered into credit default swaps to purchase credit protection on certain of the referenced credit obligations in the table above. As a result, the maximum amounts of potential future recoveries available to offset the $6.2 billion and $5.4 billion from the table above were $120 million and $80 million at December 31, 2012 and 2011, respectively. Written credit default swaps held in relation to the trading portfolio amounted to $10 million in notional and $0 in fair value at December 31, 2012. Written credit default swaps held in relation to the trading portfolio amounted to $10 million in notional and ($1) million in fair value at December 31, 2011. Credit Risk on Freestanding Derivatives The Company may be exposed to credit-related losses in the event of nonperformance by counterparties to derivatives. Generally, the current credit exposure of the Company's derivatives is limited to the net positive estimated fair value of derivatives at the reporting date after taking into consideration the existence of netting agreements and any collateral received pursuant to credit support annexes. The Company manages its credit risk related to OTC derivatives by entering into transactions with creditworthy counterparties, maintaining collateral arrangements and through the use of master agreements that provide for netting of payments by product and currency for periodic settlements and a single net payment to be made by one party 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 derivatives. See Note 10 for a description of the impact of credit risk on the valuation of derivatives. The Company enters into various collateral arrangements which require both the pledging and accepting of collateral in connection with its OTC derivatives. At December 31, 2012 and 2011, the Company was obligated to return cash collateral under its control of $3.4 billion and $4.4 billion, respectively. This cash collateral is included in cash and cash equivalents or in short-term investments and the obligation to return it is included in payables for collateral under securities loaned and other transactions in the consolidated balance sheets. At December 31, 2012 and 2011, the Company had received collateral consisting of various securities with a fair market value of $1.2 billion and $768 million, respectively, which were held in separate custodial accounts. Subject to certain constraints, the Company is permitted by contract to sell or repledge this collateral, but at December 31, 2012, none of the collateral had been sold or repledged. The Company's collateral arrangements for its OTC derivatives generally require the counterparty in a net liability position, after considering the effect of netting agreements, to pledge collateral when the fair value of that counterparty's derivatives reaches a pre-determined threshold. Certain of these arrangements also include credit-contingent provisions that provide for a reduction of these thresholds (on a sliding scale that converges toward zero) in the event of downgrades in the credit ratings of the Company and/or the counterparty. In addition, certain of the Company's netting agreements for derivatives contain provisions that require both the Company and the counterparty to maintain a specific investment grade credit rating from each of Moody's and S&P. If a party's credit ratings were to fall below that specific investment grade credit rating, that party would be in violation of these provisions, and the other party to the derivatives could terminate the transactions and demand immediate settlement and payment based on such party's reasonable valuation of the derivatives. F-85 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) The following table presents the estimated fair value of the Company's OTC derivatives that are in a net liability position after considering the effect of netting agreements, together with the estimated fair value and balance sheet location of the collateral pledged. The table also presents the incremental collateral that the Company would be required to provide if there was a one notch downgrade in the Company's credit rating at the reporting date or if the Company's credit rating sustained a downgrade to a level that triggered full overnight collateralization or termination of the derivative position at the reporting date. Derivatives that are not subject to collateral agreements are not included in the scope of this table.
Estimated Fair Value of Fair Value of Incremental Collateral Collateral Provided: Provided Upon: ---------------------------- ------------------------------------ Downgrade in the One Notch Company's Credit Rating Downgrade to a Level that Triggers Estimated in the Full Overnight Fair Value of Company's Collateralization or Derivatives in Net Fixed Maturity Credit Termination Liability Position (1) Securities (2) Cash (3) Rating of the Derivative Position ---------------------- -------------- ------------- --------- -------------------------- (In millions) December 31, 2012: Derivatives subject to credit- contingent provisions........... $ 263 $ 261 $ -- $ -- $ 1 Derivatives not subject to credit- contingent provisions........... -- -- 1 -- -- ---------------------- -------------- ------------- --------- -------------------------- Total............................ $ 263 $ 261 $ 1 $ -- $ 1 ====================== ============== ============= ========= ========================== December 31, 2011: Derivatives subject to credit- contingent provisions........... $ 151 $ 94 $ -- $ 25 $ 64 Derivatives not subject to credit- contingent provisions........... -- -- -- -- -- ---------------------- -------------- ------------- --------- -------------------------- Total............................ $ 151 $ 94 $ -- $ 25 $ 64 ====================== ============== ============= ========= ==========================
-------- (1)After taking into consideration the existence of netting agreements. (2)Included in fixed maturity securities in the consolidated balance sheets. Subject to certain constraints, the counterparties are permitted by contract to sell or repledge this collateral. (3)Included in premiums, reinsurance and other receivables in the consolidated balance sheets. The Company also has exchange-traded futures, which require the pledging of collateral. At both December 31, 2012 and 2011, the Company did not pledge any securities collateral for exchange-traded futures. At December 31, 2012 and 2011, the Company provided cash collateral for exchange-traded futures of $35 million and $37 million, respectively, which is included in premiums, reinsurance and other receivables. Embedded Derivatives The Company issues certain products or purchases certain investments that contain embedded derivatives that are required to be separated from their host contracts and accounted for as freestanding derivatives. These host contracts principally include: variable annuities with guaranteed minimum benefits, including GMWBs, GMABs F-86 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) and certain GMIBs; affiliated ceded reinsurance of guaranteed minimum benefits related to GMWBs, GMABs and certain GMIBs; funds withheld on ceded reinsurance and affiliated funds withheld on ceded reinsurance; funding agreements with equity or bond indexed crediting rates; and certain debt and equity securities. The following table presents the estimated fair value and balance sheet location of the Company's embedded derivatives that have been separated from their host contracts at:
December 31, ----------------- Balance Sheet Location 2012 2011 -------------------------------- -------- -------- (In millions) Net embedded derivatives within asset host contracts: Ceded guaranteed minimum benefits...................... Premiums, reinsurance and other receivables..................... $ 1,362 $ 1,163 Options embedded in debt or equity securities............................................ Investments..................... (55) (15) -------- -------- Net embedded derivatives within asset host contracts................................ $ 1,307 $ 1,148 ======== ======== Net embedded derivatives within liability host contracts: Direct guaranteed minimum benefits..................... PABs............................ $ (92) $ 307 Funds withheld on ceded reinsurance.................... Other liabilities............... 1,563 1,646 Other.................................................. PABs............................ 16 17 -------- -------- Net embedded derivatives within liability host contracts............................ $ 1,487 $ 1,970 ======== ========
The following table presents changes in estimated fair value related to embedded derivatives:
Years Ended December 31, ------------------------ 2012 2011 2010 ------ -------- -------- (In millions) Net derivative gains (losses) (1), (2). $ 598 $ (462) $ (619)
-------- (1)The valuation of direct guaranteed minimum benefits includes a nonperformance risk adjustment. The amounts included in net derivative gains (losses) in connection with this adjustment were ($71) million, $88 million and ($43) million for the years ended December 31, 2012, 2011 and 2010, respectively. In addition, the valuation of ceded guaranteed minimum benefits includes a nonperformance risk adjustment. The amounts included in net derivative gains (losses) in connection with this adjustment were $122 million, ($219) million and $82 million for the years ended December 31, 2012, 2011 and 2010, respectively. (2)See Note 6 for discussion of affiliated net derivative gains (losses) included in the table above. 10. Fair Value When developing estimated fair values, the Company considers three broad valuation techniques: (i) the market approach, (ii) the income approach, and (iii) the cost approach. The Company determines the most appropriate valuation technique to use, given what is being measured and the availability of sufficient inputs, F-87 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) giving priority to observable inputs. The Company categorizes its assets and liabilities measured at estimated fair value into a three-level hierarchy, based on the significant input with the lowest level in its valuation. The input levels are as follows: Level 1 Unadjusted quoted prices in active markets for identical assets or liabilities. The Company defines active markets based on average trading volume for equity securities. The size of the bid/ask spread is used as an indicator of market activity for fixed maturity securities. Level 2 Quoted prices in markets that are not active or inputs that are observable either directly or indirectly. These inputs can include quoted prices for similar assets or liabilities other than quoted prices in Level 1, quoted prices in markets that are not active, or other significant inputs that are observable or can be derived principally from or corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 Unobservable inputs that are supported by little or no market activity and are significant to the determination of estimated fair value of the assets or liabilities. Unobservable inputs reflect the reporting entity's own assumptions about the assumptions that market participants would use in pricing the asset or liability. Financial markets are susceptible to severe events evidenced by rapid depreciation in asset values accompanied by a reduction in asset liquidity. The Company's ability to sell securities, or the price ultimately realized for these securities, depends upon the demand and liquidity in the market and increases the use of judgment in determining the estimated fair value of certain securities. Considerable judgment is often required in interpreting market data to develop estimates of fair value, and the use of different assumptions or valuation methodologies may have a material effect on the estimated fair value amounts. F-88 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) Recurring Fair Value Measurements The assets and liabilities measured at estimated fair value on a recurring basis, including those items for which the Company has elected the FVO, were determined as described below. These estimated fair values and their corresponding placement in the fair value hierarchy are summarized as follows:
December 31, 2012 -------------------------------------------- Fair Value Hierarchy ---------------------------- Total Estimated Level 1 Level 2 Level 3 Fair Value --------- --------- -------- --------------- (In millions) Assets: Fixed maturity securities: U.S. corporate............................................. $ -- $ 61,540 $ 5,460 $ 67,000 U.S. Treasury and agency................................... 17,653 14,927 71 32,651 Foreign corporate.......................................... -- 27,180 3,054 30,234 RMBS....................................................... -- 23,323 1,702 25,025 CMBS....................................................... -- 9,384 402 9,786 ABS........................................................ -- 6,202 1,923 8,125 State and political subdivision............................ -- 6,720 -- 6,720 Foreign government......................................... -- 3,853 282 4,135 --------- --------- -------- --------------- Total fixed maturity securities.......................... 17,653 153,129 12,894 183,676 --------- --------- -------- --------------- Equity securities: Common stock............................................... 189 792 60 1,041 Non-redeemable preferred stock............................. -- 177 281 458 --------- --------- -------- --------------- Total equity securities.................................. 189 969 341 1,499 --------- --------- -------- --------------- Trading and FVO securities: Actively Traded Securities................................. 7 646 6 659 FVO general account securities............................. -- 26 26 52 FVO securities held by CSEs................................ -- 41 -- 41 --------- --------- -------- --------------- Total trading and FVO securities......................... 7 713 32 752 --------- --------- -------- --------------- Short-term investments (1)................................... 2,565 3,936 252 6,753 Derivative assets: (2) Interest rate.............................................. -- 5,613 58 5,671 Foreign currency exchange rate............................. -- 646 38 684 Credit..................................................... -- 29 33 62 Equity market.............................................. -- 1 -- 1 --------- --------- -------- --------------- Total derivative assets.................................. -- 6,289 129 6,418 --------- --------- -------- --------------- Net embedded derivatives within asset host contracts (3)..... -- -- 1,362 1,362 Separate account assets (4).................................. 24,237 95,794 940 120,971 --------- --------- -------- --------------- Total assets............................................ $ 44,651 $ 260,830 $ 15,950 $ 321,431 ========= ========= ======== =============== Liabilities: Derivative liabilities: (2) Interest rate.............................................. $ 10 $ 1,428 $ -- $ 1,438 Foreign currency exchange rate............................. -- 874 1 875 Credit..................................................... -- 19 -- 19 Equity market.............................................. -- -- -- -- --------- --------- -------- --------------- Total derivative liabilities............................. 10 2,321 1 2,332 --------- --------- -------- --------------- Net embedded derivatives within liability host contracts (3). -- 16 1,471 1,487 Long-term debt of CSEs....................................... -- -- 44 44 Trading liabilities (5)...................................... 163 -- -- 163 --------- --------- -------- --------------- Total liabilities....................................... $ 173 $ 2,337 $ 1,516 $ 4,026 ========= ========= ======== ===============
F-89 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued)
December 31, 2011 ------------------------------------------------ Fair Value Hierarchy -------------------------------- Total Estimated Level 1 Level 2 Level 3 Fair Value ---------- ---------- ---------- --------------- (In millions) Assets: Fixed maturity securities: U.S. corporate............................................. $ -- $ 56,777 $ 4,919 $ 61,696 U.S. Treasury and agency................................... 11,450 14,369 25 25,844 Foreign corporate.......................................... -- 26,888 2,258 29,146 RMBS....................................................... -- 25,028 691 25,719 CMBS....................................................... -- 8,886 219 9,105 ABS........................................................ -- 5,440 1,146 6,586 State and political subdivision............................ -- 6,182 -- 6,182 Foreign government......................................... -- 3,609 291 3,900 ---------- ---------- ---------- --------------- Total fixed maturity securities.......................... 11,450 147,179 9,549 168,178 ---------- ---------- ---------- --------------- Equity securities: Common stock............................................... 79 673 104 856 Non-redeemable preferred stock............................. -- 129 293 422 ---------- ---------- ---------- --------------- Total equity securities.................................. 79 802 397 1,278 ---------- ---------- ---------- --------------- Trading and FVO securities: Actively Traded Securities................................. -- 473 -- 473 FVO general account securities............................. -- 93 14 107 FVO securities held by CSEs................................ -- 117 -- 117 ---------- ---------- ---------- --------------- Total trading and FVO securities......................... -- 683 14 697 ---------- ---------- ---------- --------------- Short-term investments (1)................................... 1,641 4,364 134 6,139 Derivative assets: (2) Interest rate.............................................. 6 5,807 81 5,894 Foreign currency exchange rate............................. -- 892 56 948 Credit..................................................... -- 71 23 94 Equity market.............................................. -- -- -- -- ---------- ---------- ---------- --------------- Total derivative assets.................................. 6 6,770 160 6,936 ---------- ---------- ---------- --------------- Net embedded derivatives within asset host contracts (3)..... -- -- 1,163 1,163 Separate account assets (4).................................. 22,445 83,151 1,082 106,678 ---------- ---------- ---------- --------------- Total assets............................................ $ 35,621 $ 242,949 $ 12,499 $ 291,069 ========== ========== ========== =============== Liabilities: Derivative liabilities: (2) Interest rate.............................................. $ 2 $ 966 $ 14 $ 982 Foreign currency exchange rate............................. -- 649 -- 649 Credit..................................................... -- 59 22 81 Equity market.............................................. -- -- -- -- ---------- ---------- ---------- --------------- Total derivative liabilities............................. 2 1,674 36 1,712 ---------- ---------- ---------- --------------- Net embedded derivatives within liability host contracts (3). -- 17 1,953 1,970 Long-term debt of CSEs....................................... -- -- 116 116 Trading liabilities (5)...................................... 124 3 -- 127 ---------- ---------- ---------- --------------- Total liabilities....................................... $ 126 $ 1,694 $ 2,105 $ 3,925 ========== ========== ========== ===============
-------- (1)Short-term investments as presented in the tables above differ from the amounts presented in the consolidated balance sheets because certain short-term investments are not measured at estimated fair value on a recurring basis. F-90 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) (2)Derivative assets are presented within other invested assets in the consolidated balance sheets and derivative liabilities are presented within other liabilities in the consolidated balance sheets. The amounts are presented gross in the tables above to reflect the presentation in the consolidated balance sheets, but are presented net for purposes of the rollforward in the Fair Value Measurements Using Significant Unobservable Inputs (Level 3) tables. (3)Net embedded derivatives within asset host contracts are presented within premiums, reinsurance and other receivables in the consolidated balance sheets. Net embedded derivatives within liability host contracts are presented within PABs and other liabilities in the consolidated balance sheets. At December 31, 2012, fixed maturity securities and equity securities included embedded derivatives of $0 and ($55) million, respectively. At December 31, 2011, fixed maturity securities and equity securities included embedded derivatives of less than $1 million and ($15) million, respectively. (4)Investment performance related to separate account assets is fully offset by corresponding amounts credited to contractholders whose liability is reflected within separate account liabilities. Separate account liabilities are set equal to the estimated fair value of separate account assets. (5)Trading liabilities are presented within other liabilities in the consolidated balance sheets. The following describes the valuation methodologies used to measure assets and liabilities at fair value. The description includes the valuation techniques and key inputs for each category of assets or liabilities that are classified within Level 2 and Level 3 of the fair value hierarchy. Investments Valuation Controls and Procedures On behalf of the Company and MetLife, Inc.'s Chief Investment Officer and Chief Financial Officer, a pricing and valuation committee that is independent of the trading and investing functions and comprised of senior management provides oversight of control systems and valuation policies for securities, mortgage loans and derivatives. On a monthly basis, this committee reviews and approves new transaction types and markets, ensures that observable market prices and market-based parameters are used for valuation, wherever possible, and determines that judgmental valuation adjustments, when applied, are based upon established policies and are applied consistently over time. This committee also provides oversight of the selection of independent third party pricing providers and the controls and procedures to evaluate third party pricing. Periodically, the Chief Accounting Officer reports to the Audit Committee of MetLife, Inc.'s Board of Directors regarding compliance with fair value accounting standards. The Company reviews its valuation methodologies on an ongoing basis and revises those methodologies when necessary based on changing market conditions. Assurance is gained on the overall reasonableness and consistent application of input assumptions, valuation methodologies and compliance with fair value accounting standards through controls designed to ensure valuations represent an exit price. Several controls are utilized, including certain monthly controls, which include, but are not limited to, analysis of portfolio returns to corresponding benchmark returns, comparing a sample of executed prices of securities sold to the fair value estimates, comparing fair value estimates to management's knowledge of the current market, reviewing the bid/ask spreads to assess activity, comparing prices from multiple independent pricing services and ongoing due diligence to confirm that independent pricing services use market-based parameters. The process includes a determination of the observability of inputs used in estimated fair values received from F-91 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) independent pricing services or brokers by assessing whether these inputs can be corroborated by observable market data. The Company ensures that prices received from independent brokers, also referred to herein as "consensus pricing," represent a reasonable estimate of fair value by reviewing such pricing with the Company's knowledge of the current market dynamics and current pricing for similar financial instruments. While independent non-binding broker quotations are utilized, they are not used for a significant portion of the portfolio. For example, fixed maturity securities priced using independent non-binding broker quotations represent 0.5% of the total estimated fair value of fixed maturity securities and 7% of the total estimated fair value of Level 3 fixed maturity securities. The Company also applies a formal process to challenge any prices received from independent pricing services that are not considered representative of estimated fair value. If prices received from independent pricing services are not considered reflective of market activity or representative of estimated fair value, independent non-binding broker quotations are obtained, or an internally developed valuation is prepared. Internally developed valuations of current estimated fair value, which reflect internal estimates of liquidity and nonperformance risks, compared with pricing received from the independent pricing services, did not produce material differences in the estimated fair values for the majority of the portfolio; accordingly, overrides were not material. This is, in part, because internal estimates of liquidity and nonperformance risks are generally based on available market evidence and estimates used by other market participants. In the absence of such market-based evidence, management's best estimate is used. Securities, Short-term Investments, Long-term Debt of CSEs and Trading Liabilities When available, the estimated fair value of these investments is based on quoted prices in active markets that are readily and regularly obtainable. Generally, these are the most liquid of the Company's securities holdings and valuation of these securities does not involve management's judgment. When quoted prices in active markets are not available, the determination of estimated fair value is based on market standard valuation methodologies, giving priority to observable inputs. The significant inputs to the market standard valuation methodologies for certain types of securities with reasonable levels of price transparency are inputs that are observable in the market or can be derived principally from, or corroborated by, observable market data. When observable inputs are not available, the market standard valuation methodologies rely on inputs that are significant to the estimated fair value that are not observable in the market or cannot be derived principally from, or corroborated by, observable market data. These unobservable inputs can be based in large part on management's judgment or estimation and cannot be supported by reference to market activity. Even though these inputs are unobservable, management believes they are consistent with what other market participants would use when pricing such securities and are considered appropriate given the circumstances. The estimated fair value of FVO securities held by CSEs, long-term debt of CSEs and trading liabilities is determined on a basis consistent with the methodologies described herein for securities. The Company consolidates certain securitization entities that hold securities that have been accounted for under the FVO and classified within trading and FVO securities. Level 2 Valuation Techniques and Key Inputs This level includes fixed maturity securities and equity securities priced principally by independent pricing services using observable inputs. Trading and FVO securities and short-term investments within this level are of a similar nature and class to the Level 2 fixed maturity securities and equity securities. F-92 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) U.S. corporate and foreign corporate securities These securities are principally valued using the market and income approaches. Valuations are based primarily on quoted prices in markets that are not active, or using matrix pricing or other similar techniques that use standard market observable inputs such as benchmark yields, spreads off benchmark yields, new issuances, issuer rating, duration, and trades of identical or comparable securities. Investment grade privately placed securities are valued using discounted cash flow methodologies using standard market observable inputs, and inputs derived from, or corroborated by, market observable data including market yield curve, duration, call provisions, observable prices and spreads for similar publicly traded or privately traded issues that incorporate the credit quality and industry sector of the issuer. This level also includes certain below investment grade privately placed fixed maturity securities priced by independent pricing services that use observable inputs. U.S. Treasury and agency securities These securities are principally valued using the market approach. Valuation is based primarily on quoted prices in markets that are not active or using matrix pricing or other similar techniques using standard market observable inputs such as benchmark U.S. Treasury yield curve, the spread off the U.S. Treasury yield curve for the identical security and comparable securities that are actively traded. Structured securities comprised of RMBS, CMBS and ABS These securities are principally valued using the market and income approaches. Valuation is based primarily on matrix pricing, discounted cash flow methodologies or other similar techniques using standard market inputs including spreads for actively traded securities, spreads off benchmark yields, expected prepayment speeds and volumes, current and forecasted loss severity, rating, weighted average coupon, weighted average maturity, average delinquency rates, geographic region, debt-service coverage ratios and issuance-specific information, including, but not limited to: collateral type, payment terms of the underlying assets, payment priority within the tranche, structure of the security, deal performance and vintage of loans. State and political subdivision and foreign government securities These securities are principally valued using the market approach. Valuation is based primarily on matrix pricing or other similar techniques using standard market observable inputs including benchmark U.S. Treasury yield or other yields, issuer ratings, broker-dealer quotes, issuer spreads and reported trades of similar securities, including those within the same sub-sector or with a similar maturity or credit rating. Common and non-redeemable preferred stock These securities are principally valued using the market approach where market quotes are available but are not considered actively traded. Valuation is based principally on observable inputs including quoted prices in markets that are not considered active. Level 3 Valuation Techniques and Key Inputs: In general, fixed maturity securities and equity securities classified within Level 3 use many of the same valuation techniques and inputs as described in the Level 2 Valuation Techniques and Key Inputs. However, if F-93 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) key inputs are unobservable, or if the investments are less liquid and there is very limited trading activity, the investments are generally classified as Level 3. The use of independent non-binding broker quotations to value investments generally indicates there is a lack of liquidity or a lack of transparency in the process to develop the valuation estimates, generally causing these investments to be classified in Level 3. Trading and FVO securities and short-term investments within this level are of a similar nature and class to the Level 3 securities described below; accordingly, the valuation techniques and significant market standard observable inputs used in their valuation are also similar to those described below. U.S. corporate and foreign corporate securities These securities, including financial services industry hybrid securities classified within fixed maturity securities, are principally valued using the market approach. Valuations are based primarily on matrix pricing or other similar techniques that utilize unobservable inputs or inputs that cannot be derived principally from, or corroborated by, observable market data, including illiquidity premium, delta spread adjustments or spreads over below investment grade curves to reflect industry trends or specific credit-related issues; and inputs including quoted prices for identical or similar securities that are less liquid and based on lower levels of trading activity than securities classified in Level 2. Certain valuations are based on independent non-binding broker quotations. Structured securities comprised of RMBS, CMBS and ABS These securities are principally valued using the market and income approaches. Valuation is based primarily on matrix pricing, discounted cash flow methodologies or other similar techniques that utilize inputs that are unobservable or cannot be derived principally from, or corroborated by, observable market data, including spreads over below investment grade curves to reflect industry trends on specific credit-related issues. Below investment grade securities, alternative residential mortgage loan RMBS and sub-prime RMBS included in this level are valued based on inputs including quoted prices for identical or similar securities that are less liquid and based on lower levels of trading activity than securities classified in Level 2. Certain of these valuations are based on independent non-binding broker quotations. Foreign government securities These securities are principally valued using the market approach. Valuation is based primarily on independent non-binding broker quotations and inputs including quoted prices for identical or similar securities that are less liquid and based on lower levels of trading activity than securities classified in Level 2. Common and non-redeemable preferred stock These securities, including privately held securities and financial services industry hybrid securities classified within equity securities, are principally valued using the market and income approaches. Valuations are based primarily on matrix pricing, discounted cash flow methodologies or other similar techniques using inputs such as comparable credit rating and issuance structure. Certain of these securities are valued based on inputs including quoted prices for identical or similar securities that are less liquid and based on lower levels of trading activity than securities classified in Level 2 and independent non-binding broker quotations. F-94 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) Separate Account Assets Separate account assets are carried at estimated fair value and reported as a summarized total on the consolidated balance sheets. The estimated fair value of separate account assets is based on the estimated fair value of the underlying assets. Assets within the Company's separate accounts include: mutual funds, fixed maturity securities, equity securities, derivatives, hedge funds, other limited partnership interests, short-term investments and cash and cash equivalents. Level 2 Valuation Techniques and Key Inputs: These assets are comprised of investments that are similar in nature to the instruments described under "--Securities, Short-term Investments, Long-term Debt of CSEs and Trading Liabilities" and "-- Derivatives -- Freestanding Derivatives." Also included are certain mutual funds and hedge funds without readily determinable fair values as prices are not published publicly. Valuation of the mutual funds and hedge funds is based upon quoted prices or reported NAVs provided by the fund managers. Level 3 Valuation Techniques and Key Inputs: These assets are comprised of investments that are similar in nature to the instruments described under "--Securities, Short-term Investments, Long-term Debt of CSEs and Trading Liabilities" and "-- Derivatives -- Freestanding Derivatives." Separate account assets within this level also include other limited partnership interests. Other limited partnership interests are valued giving consideration to the value of the underlying holdings of the partnerships and by applying a premium or discount, if appropriate, for factors such as liquidity, bid/ask spreads, the performance record of the fund manager or other relevant variables which may impact the exit value of the particular partnership interest. Derivatives The estimated fair value of derivatives is determined through the use of quoted market prices for exchange-traded derivatives, or through the use of pricing models for OTC derivatives. The determination of estimated fair value, when quoted market values are not available, is based on market standard valuation methodologies and inputs that management believes are consistent with what other market participants would use when pricing such instruments. Derivative valuations can be affected by changes in interest rates, foreign currency exchange rates, financial indices, credit spreads, default risk, nonperformance risk, volatility, liquidity and changes in estimates and assumptions used in the pricing models. The valuation controls and procedures for derivatives are described in "-- Investments." The significant inputs to the pricing models for most OTC derivatives are inputs that are observable in the market or can be derived principally from, or corroborated by, observable market data. Significant inputs that are observable generally include: interest rates, foreign currency exchange rates, interest rate curves, credit curves and volatility. However, certain OTC derivatives may rely on inputs that are significant to the estimated fair value that are not observable in the market or cannot be derived principally from, or corroborated by, observable market data. Significant inputs that are unobservable generally include references to emerging market currencies and inputs that are outside the observable portion of the interest rate curve, credit curve, volatility or other relevant market measure. These unobservable inputs may involve significant management judgment or estimation. Even though unobservable, these inputs are based on assumptions deemed appropriate given the circumstances and management believes they are consistent with what other market participants would use when pricing such instruments. F-95 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) The credit risk of both the counterparty and the Company are considered in determining the estimated fair value for all OTC derivatives, and any potential credit adjustment is based on the net exposure by counterparty after taking into account the effects of netting agreements and collateral arrangements. The Company values its derivatives using the standard swap curve which includes a spread to the risk free rate. This credit spread is appropriate for those parties that execute trades at pricing levels consistent with the standard swap curve. As the Company and its significant derivative counterparties consistently execute trades at such pricing levels, additional credit risk adjustments are not currently required in the valuation process. The Company's ability to consistently execute at such pricing levels is in part due to the netting agreements and collateral arrangements that are in place with all of its significant derivative counterparties. An evaluation of the requirement to make additional credit risk adjustments is performed by the Company each reporting period. Most inputs for OTC derivatives are mid-market inputs but, in certain cases, bid level inputs are used when they are deemed more representative of exit value. Market liquidity, as well as the use of different methodologies, assumptions and inputs, may have a material effect on the estimated fair values of the Company's derivatives and could materially affect net income. Freestanding Derivatives Level 2 Valuation Techniques and Key Inputs: This level includes all types of derivatives utilized by the Company with the exception of exchange-traded derivatives included within Level 1 and those derivatives with unobservable inputs as described in Level 3. These derivatives are principally valued using the income approach. Interest rate Non-option-based. -- Valuations are based on present value techniques, which utilize significant inputs that may include the swap yield curve and London Interbank Offered Rate ("LIBOR") basis curves. Option-based. -- Valuations are based on option pricing models, which utilize significant inputs that may include the swap yield curve, LIBOR basis curves and interest rate volatility. Foreign currency exchange rate Non-option-based. -- Valuations are based on present value techniques, which utilize significant inputs that may include the swap yield curve, LIBOR basis curves, currency spot rates and cross currency basis curves. Credit Non-option-based. -- Valuations are based on present value techniques, which utilize significant inputs that may include the swap yield curve, credit curves and recovery rates. Equity market Option-based. -- Valuations are based on option pricing models, which utilize significant inputs that may include the swap yield curve, spot equity index levels, dividend yield curves and equity volatility. F-96 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) Level 3 Valuation Techniques and Key Inputs: These derivatives are principally valued using the income approach. Valuations of non-option-based derivatives utilize present value techniques, whereas valuations of option-based derivatives utilize option pricing models. These valuation methodologies generally use the same inputs as described in the corresponding sections above for Level 2 measurements of derivatives. However, these derivatives result in Level 3 classification because one or more of the significant inputs are not observable in the market or cannot be derived principally from, or corroborated by, observable market data. Interest rate Non-option-based. -- Significant unobservable inputs may include the extrapolation beyond observable limits of the swap yield curve and LIBOR basis curves. Foreign currency exchange rate Non-option-based. -- Significant unobservable inputs may include the extrapolation beyond observable limits of the swap yield curve, LIBOR basis curves, cross currency basis curves and currency correlation. Credit Non-option-based. -- Significant unobservable inputs may include credit spreads, repurchase rates and the extrapolation beyond observable limits of the swap yield curve and credit curves. Certain of these derivatives are valued based on independent non-binding broker quotations. Embedded Derivatives Embedded derivatives principally include certain direct variable annuity guarantees, certain affiliated ceded reinsurance agreements related to such variable annuity guarantees, equity or bond indexed crediting rates within certain funding agreements and those related to ceded funds withheld on reinsurance. Embedded derivatives are recorded at estimated fair value with changes in estimated fair value reported in net income. The Company issues certain variable annuity products with guaranteed minimum benefits. GMWBs, GMABs and certain GMIBs are embedded derivatives, which are measured at estimated fair value separately from the host variable annuity contract, with changes in estimated fair value reported in net derivative gains (losses). These embedded derivatives are classified within PABs in the consolidated balance sheets. The fair value of these embedded derivatives, estimated as the present value of projected future benefits minus the present value of projected future fees using actuarial and capital market assumptions including expectations concerning policyholder behavior, is calculated by the Company's actuarial department. The calculation is based on in-force business, and is performed using standard actuarial valuation software which projects future cash flows from the embedded derivative over multiple risk neutral stochastic scenarios using observable risk free rates. Capital market assumptions, such as risk free rates and implied volatilities, are based on market prices for publicly traded instruments to the extent that prices for such instruments are observable. Implied volatilities beyond the observable period are extrapolated based on observable implied volatilities and historical volatilities. Actuarial assumptions, including mortality, lapse, withdrawal and utilization, are unobservable and are reviewed at least annually based on actuarial studies of historical experience. F-97 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) The valuation of these guarantee liabilities includes nonperformance risk adjustments and adjustments for a risk margin related to non-capital market inputs. The nonperformance adjustment is determined by taking into consideration publicly available information relating to spreads in the secondary market for MetLife, Inc.'s debt, including related credit default swaps. These observable spreads are then adjusted, as necessary, to reflect the priority of these liabilities and the claims paying ability of the issuing insurance subsidiaries compared to MetLife, Inc. Risk margins are established to capture the non-capital market risks of the instrument which represent the additional compensation a market participant would require to assume the risks related to the uncertainties of such actuarial assumptions as annuitization, premium persistency, partial withdrawal and surrenders. The establishment of risk margins requires the use of significant management judgment, including assumptions of the amount and cost of capital needed to cover the guarantees. These guarantees may be more costly than expected in volatile or declining equity markets. Market conditions including, but not limited to, changes in interest rates, equity indices, market volatility and foreign currency exchange rates; changes in nonperformance risk; and variations in actuarial assumptions regarding policyholder behavior, mortality and risk margins related to non-capital market inputs, may result in significant fluctuations in the estimated fair value of the guarantees that could materially affect net income. The Company ceded the risk associated with certain of the GMIBs, GMABs and GMWBs previously described. In addition to ceding risks associated with guarantees that are accounted for as embedded derivatives, the Company also ceded directly written GMIBs that are accounted for as insurance (i.e., not as embedded derivatives) but where the reinsurance agreement contains an embedded derivative. These embedded derivatives are included within premiums, reinsurance and other receivables in the consolidated balance sheets with changes in estimated fair value reported in net derivative gains (losses). The value of the embedded derivatives on the ceded risk is determined using a methodology consistent with that described previously for the guarantees directly written by the Company with the exception of the input for nonperformance risk that reflects the credit of the reinsurer. The estimated fair value of the embedded derivatives within funds withheld related to certain ceded reinsurance is determined based on the change in estimated fair value of the underlying assets held by the Company in a reference portfolio backing the funds withheld liability. The estimated fair value of the underlying assets is determined as previously described in "-- Investments -- Securities, Short-term Investments, Long-term Debt of CSEs and Trading Liabilities." The estimated fair value of these embedded derivatives is included, along with their funds withheld hosts, in other liabilities in the consolidated balance sheets with changes in estimated fair value recorded in net derivative gains (losses). Changes in the credit spreads on the underlying assets, interest rates and market volatility may result in significant fluctuations in the estimated fair value of these embedded derivatives that could materially affect net income. The estimated fair value of the embedded equity and bond indexed derivatives contained in certain funding agreements is determined using market standard swap valuation models and observable market inputs, including a nonperformance risk adjustment. The estimated fair value of these embedded derivatives are included, along with their funding agreements host, within PABs with changes in estimated fair value recorded in net derivative gains (losses). Changes in equity and bond indices, interest rates and the Company's credit standing may result in significant fluctuations in the estimated fair value of these embedded derivatives that could materially affect net income. F-98 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) Embedded Derivatives Within Asset and Liability Host Contracts Level 3 Valuation Techniques and Key Inputs: Direct Guaranteed Minimum Benefits These embedded derivatives are principally valued using the income approach. Valuations are based on option pricing techniques, which utilize significant inputs that may include swap yield curve, currency exchange rates and implied volatilities. These embedded derivatives result in Level 3 classification because one or more of the significant inputs are not observable in the market or cannot be derived principally from, or corroborated by, observable market data. Significant unobservable inputs generally include: the extrapolation beyond observable limits of the swap yield curve and implied volatilities, actuarial assumptions for policyholder behavior and mortality and the potential variability in policyholder behavior and mortality, nonperformance risk and cost of capital for purposes of calculating the risk margin. Reinsurance Ceded on Certain Guaranteed Minimum Benefits These embedded derivatives are principally valued using the income approach. The valuation techniques and significant market standard unobservable inputs used in their valuation are similar to those described above in "-- Direct Guaranteed Minimum Benefits" and also include counterparty credit spreads. Embedded Derivatives Within Funds Withheld Related to Certain Ceded Reinsurance These embedded derivatives are principally valued using the income approach. The valuations are based on present value techniques, which utilize significant inputs that may include the swap yield curve and the fair value of assets within the reference portfolio. These embedded derivatives result in Level 3 classification because one or more of the significant inputs are not observable in the market or cannot be derived principally from, or corroborated by, observable market data. Significant unobservable inputs generally include the fair value of certain assets within the reference portfolio which are not observable in the market and cannot be derived principally from, or corroborated by, observable market data. Transfers between Levels Overall, transfers between levels occur when there are changes in the observability of inputs and market activity. Transfers into or out of any level are assumed to occur at the beginning of the period. Transfers between Levels 1 and 2: During 2012, there were no transfers between Levels 1 and 2 for assets and liabilities measured at estimated fair value and still held at December 31, 2012. During 2011, transfers between Levels 1 and 2 were not significant for assets and liabilities measured at estimated fair value and still held at December 31, 2011. Transfers into or out of Level 3: Transfers into or out of Level 3 are presented in the tables which follow. Assets and liabilities are transferred into Level 3 when a significant input cannot be corroborated with market observable data. This F-99 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) occurs when market activity decreases significantly and underlying inputs cannot be observed, current prices are not available, and/or when there are significant variances in quoted prices, thereby affecting transparency. Assets and liabilities are transferred out of Level 3 when circumstances change such that a significant input can be corroborated with market observable data. This may be due to a significant increase in market activity, a specific event, or one or more significant input(s) becoming observable. Transfers into Level 3 for fixed maturity securities and separate account assets were due primarily to a lack of trading activity, decreased liquidity and credit ratings downgrades (e.g., from investment grade to below investment grade) which have resulted in decreased transparency of valuations and an increased use of independent non-binding broker quotations and unobservable inputs, such as illiquidity premiums, delta spread adjustments, or spreads from below investment grade curves. Transfers out of Level 3 for fixed maturity securities and separate account assets resulted primarily from increased transparency of both new issuances that, subsequent to issuance and establishment of trading activity, became priced by independent pricing services and existing issuances that, over time, the Company was able to obtain pricing from, or corroborate pricing received from, independent pricing services with observable inputs or increases in market activity and upgraded credit ratings. F-100 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) Assets and Liabilities Measured at Fair Value Using Significant Unobservable Inputs (Level 3) The following table presents certain quantitative information about the significant unobservable inputs used in the fair value measurement for the more significant asset and liability classes measured at fair value on a recurring basis using significant unobservable inputs (Level 3) at December 31, 2012.
Valuation Techniques Significant Unobservable Inputs Range -------------------------------------------------------------------------------------- Fixed maturity securities: U.S. corporate and foreign corporate Matrix pricing Delta spread adjustments (1) (50) - 500 Illiquidity premium (1) 30 - 30 Spreads from below investment grade curves (1) (144) - 779 Offered quotes (2) -- - 178 Market pricing Quoted prices (2) (1,416) - 830 Consensus pricing Offered quotes (2) 35 - 105 -------------------------------------------------------------------------------------- RMBS Matrix pricing and discounted Spreads from below investment cash flow grade curves (1) 9 - 2,980 Market pricing Quoted prices (2) 13 - 100 Consensus pricing Offered quotes (2) 28 - 100 -------------------------------------------------------------------------------------- CMBS Matrix pricing and discounted Spreads from below investment cash flow grade curves (1) 35 - 4,750 Market pricing Quoted prices (2) 100 - 104 -------------------------------------------------------------------------------------- ABS Matrix pricing and discounted Spreads from below investment cash flow grade curves (1) -- - 1,829 Market pricing Quoted prices (2) 40 - 102 Consensus pricing Offered quotes (2) -- - 111 -------------------------------------------------------------------------------------- Foreign government Matrix pricing and discounted Spreads from below investment cash flow grade curves (1) 111 - 111 Market pricing Quoted prices (2) 77 - 101 Consensus pricing Offered quotes (2) 82 - 158 -------------------------------------------------------------------------------------- Derivatives: Interest rate Present value techniques Swap yield (1) 186 - 332 -------------------------------------------------------------------------------------- Foreign currency exchange rate Present value techniques Swap yield (1) 647 - 795 Currency correlation 43% - 57% -------------------------------------------------------------------------------------- Credit Present value techniques Credit spreads (1) 100 - 100 Consensus pricing Offered quotes (3) -------------------------------------------------------------------------------------- Embedded derivatives: Direct and ceded guaranteed minimum Option pricing techniques Mortality rates: benefits Ages 0 - 40 0% - 0.10% Ages 41 - 60 0.05% - 0.64% Ages 61 - 115 0.32% - 100% Lapse rates: Durations 1 - 10 0.50% - 100% Durations 11 - 20 3% - 100% Durations 21 - 116 3% - 100% Utilization rates (4) 20% - 50% Withdrawal rates 0.07% - 10% Long-term equity volatilities 17.40% - 25% Nonperformance risk spread 0.10% - 0.67% --------------------------------------------------------------------------------------
Weighted Valuation Techniques Significant Unobservable Inputs Average --------------------------------------------------------------------------- Fixed maturity securities: U.S. corporate and foreign corporate Matrix pricing Delta spread adjustments (1) 84 Illiquidity premium (1) Spreads from below investment grade curves (1) 205 Offered quotes (2) Market pricing Quoted prices (2) 138 Consensus pricing Offered quotes (2) --------------------------------------------------------------------------- RMBS Matrix pricing and discounted Spreads from below investment cash flow grade curves (1) 541 Market pricing Quoted prices (2) 99 Consensus pricing Offered quotes (2) --------------------------------------------------------------------------- CMBS Matrix pricing and discounted Spreads from below investment cash flow grade curves (1) 486 Market pricing Quoted prices (2) 102 --------------------------------------------------------------------------- ABS Matrix pricing and discounted Spreads from below investment cash flow grade curves (1) 105 Market pricing Quoted prices (2) 99 Consensus pricing Offered quotes (2) --------------------------------------------------------------------------- Foreign government Matrix pricing and discounted Spreads from below investment cash flow grade curves (1) 111 Market pricing Quoted prices (2) 87 Consensus pricing Offered quotes (2) --------------------------------------------------------------------------- Derivatives: Interest rate Present value techniques Swap yield (1) --------------------------------------------------------------------------- Foreign currency exchange rate Present value techniques Swap yield (1) Currency correlation --------------------------------------------------------------------------- Credit Present value techniques Credit spreads (1) Consensus pricing Offered quotes (3) --------------------------------------------------------------------------- Embedded derivatives: Direct and ceded guaranteed minimum Option pricing techniques Mortality rates: benefits Ages 0 - 40 Ages 41 - 60 Ages 61 - 115 Lapse rates: Durations 1 - 10 Durations 11 - 20 Durations 21 - 116 Utilization rates (4) Withdrawal rates Long-term equity volatilities Nonperformance risk spread ---------------------------------------------------------------------------
(1)For this unobservable input, range and weighted average are presented in basis points. F-101 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) (2)For this unobservable input, range and weighted average are presented in accordance with the market convention for fixed maturity securities of dollars per hundred dollars of par. (3)At December 31, 2012, independent non-binding broker quotations were used in the determination of less than 1% of the total net derivative estimated fair value. (4)This range is attributable to certain GMIBs and lifetime withdrawal benefits. The following is a summary of the valuation techniques and significant unobservable inputs used in the fair value measurement for other assets and liabilities classified within Level 3. These assets and liabilities are subject to the controls described under "-- Investments - Valuation Controls and Procedures." Generally, all other classes of securities including those within separate account assets and embedded derivatives within funds withheld related to certain ceded reinsurance use the same valuation techniques and significant unobservable inputs as previously described for Level 3 fixed maturity securities. This includes matrix pricing and discounted cash flow methodologies, inputs such as quoted prices for identical or similar securities that are less liquid and based on lower levels of trading activity than securities classified in Level 2, as well as independent non-binding broker quotations. The long-term debt of CSEs is valued using independent non-binding broker quotations and internal models including matrix pricing and discounted cash flow methodologies using current interest rates. The sensitivity of the estimated fair value to changes in the significant unobservable inputs for these assets and liabilities is similar in nature to that described below. The valuation techniques and significant unobservable inputs used in the fair value measurement for the more significant assets measured at estimated fair value on a nonrecurring basis and determined using significant unobservable inputs (Level 3) are summarized in "-- Nonrecurring Fair Value Measurements" and Note 11. A description of the sensitivity of the estimated fair value to changes in the significant unobservable inputs for certain of the major asset and liability classes described above is as follows: Securities Significant spread widening in isolation will adversely impact the overall valuation, while significant spread tightening will lead to substantial valuation increases. Significant increases (decreases) in expected default rates in isolation would result in substantially lower (higher) valuations. Significant increases (decreases) in offered quotes in isolation would result in substantially higher (lower) valuations. For U.S. and foreign corporate securities, significant increases (decreases) in illiquidity premiums in isolation would result in substantially lower (higher) valuations. For RMBS, CMBS and ABS, changes in the assumptions used for the probability of default is accompanied by a directionally similar change in the assumption used for the loss severity and a directionally opposite change in the assumptions used for prepayment rates. Interest rate derivatives Significant increases (decreases) in the unobservable portion of the swap yield curve in isolation will result in substantial valuation changes. Foreign currency exchange rate derivatives Significant increases (decreases) in the unobservable portion of the swap yield curve in isolation will result in substantial valuation changes. Increases (decreases) in currency correlation in isolation will increase (decrease) the significance of the change in valuations. F-102 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) Credit derivatives Credit derivatives with significant unobservable inputs are primarily comprised of credit default swaps written by the Company. Significant credit spread widening in isolation will result in substantially higher adverse valuations, while significant spread tightening will result in substantially lower adverse valuations. Significant increases (decreases) in offered quotes in isolation will result in substantially higher (lower) valuations. Direct and ceded guaranteed minimum benefits For any increase (decrease) in mortality and lapse rates, the fair value of the guarantees will decrease (increase). For any increase (decrease) in utilization and volatility, the fair value of the guarantees will increase (decrease). Specifically for GMWBs, for any increase (decrease) in withdrawal rates, the fair value of the guarantees will increase (decrease). Specifically for GMABs and GMIBs, for any increase (decrease) in withdrawal rates, the fair value of the guarantees will decrease (increase). The following tables summarize the change of all assets and (liabilities) measured at estimated fair value on a recurring basis using significant unobservable inputs (Level 3), including realized and unrealized gains (losses) of all assets and (liabilities) and realized and unrealized gains (losses) of all assets and (liabilities) still held at the end of the respective periods:
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) ------------------------------------------------------------------------------ Fixed Maturity Securities: ------------------------------------------------------------------------------ U.S. State and U.S. Treasury Foreign Political Foreign Corporate and Agency Corporate RMBS CMBS ABS Subdivision Government --------- ---------- --------- -------- ------ -------- ----------- ---------- (In millions) Year Ended December 31, 2012: Balance, January 1,...................... $ 4,919 $ 25 $ 2,258 $ 691 $ 219 $ 1,146 $ -- $ 291 Total realized/unrealized gains (losses) included in: Net income (loss): (1), (2)............. Net investment income................. 7 -- 6 27 -- 1 -- 5 Net investment gains (losses)......... (2) -- (52) (5) (7) (1) -- (5) Net derivative gains (losses)......... -- -- -- -- -- -- -- -- Other comprehensive income (loss)....... 173 -- 142 220 (3) (3) -- 19 Purchases (3)............................ 1,282 47 1,213 892 268 953 -- 2 Sales (3)................................ (848) (1) (489) (242) (167) (157) -- (55) Issuances (3)............................ -- -- -- -- -- -- -- -- Settlements (3).......................... -- -- -- -- -- -- -- -- Transfers into Level 3 (4)............... 559 -- 99 131 104 4 -- 25 Transfers out of Level 3 (4)............. (630) -- (123) (12) (12) (20) -- -- --------- ---------- --------- -------- ------ -------- ----------- ---------- Balance, December 31,.................... $ 5,460 $ 71 $ 3,054 $ 1,702 $ 402 $ 1,923 $ -- $ 282 ========= ========== ========= ======== ====== ======== =========== ========== Changes in unrealized gains (losses) included in net income (loss): (5) Net investment income................. $ 4 $ -- $ 5 $ 27 $ -- $ 1 $ -- $ 5 Net investment gains (losses)......... $ (3) $ -- $ (13) $ (2) $ -- $ -- $ -- $ -- Net derivative gains (losses)......... $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ --
F-103 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued)
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) ----------------------------------------------------------------------- Equity Securities: Trading and FVO Securities: --------------------- ------------------------ Non- FVO redeemable Actively General Separate Common Preferred Traded Account Short-term Account Stock Stock Securities Securities Investments Assets (6) ------ ---------- ---------- ---------- ----------- ---------- (In millions) Year Ended December 31, 2012: Balance, January 1,............................... $ 104 $ 293 $ -- $ 14 $ 134 $ 1,082 Total realized/unrealized gains (losses) included in: Net income (loss): (1), (2)...................... Net investment income........................... -- -- -- 12 -- -- Net investment gains (losses)................... 7 (1) -- -- -- 84 Net derivative gains (losses)................... -- -- -- -- -- -- Other comprehensive income (loss)................ (7) 16 -- -- (19) -- Purchases (3)..................................... 10 5 6 -- 246 171 Sales (3)......................................... (24) (32) -- -- (106) (379) Issuances (3)..................................... -- -- -- -- -- 2 Settlements (3)................................... -- -- -- -- -- (1) Transfers into Level 3 (4)........................ 1 -- -- -- 5 24 Transfers out of Level 3 (4)...................... (31) -- -- -- (8) (43) ------ ---------- ---------- ---------- ----------- ---------- Balance, December 31,............................. $ 60 $ 281 $ 6 $ 26 $ 252 $ 940 ====== ========== ========== ========== =========== ========== Changes in unrealized gains (losses) included in net income (loss): (5) Net investment income........................... $ -- $ -- $ -- $ 12 $ -- $ -- Net investment gains (losses)................... $ (4) $ -- $ -- $ -- $ -- $ -- Net derivative gains (losses)................... $ -- $ -- $ -- $ -- $ -- $ --
F-104 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued)
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) ----------------------------------------------------------------------- Net Derivatives: (7) ---------------------------------------- Foreign Currency Net Interest Exchange Equity Embedded Long-term Rate Rate Credit Market Derivatives (8) Debt of CSEs --------- -------- -------- -------- --------------- ------------ (In millions) Year Ended December 31, 2012: Balance, January 1,............................... $ 67 $ 56 $ 1 $ -- $ (790) $ (116) Total realized/unrealized gains (losses) included in: Net income (loss): (1), (2)...................... Net investment income........................... -- -- -- -- -- -- Net investment gains (losses)................... -- -- -- -- -- (7) Net derivative gains (losses)................... 17 (19) 38 -- 629 -- Other comprehensive income (loss)................ (1) -- -- -- -- -- Purchases (3)..................................... -- -- -- -- -- -- Sales (3)......................................... -- -- -- -- -- -- Issuances (3)..................................... -- -- (3) -- -- -- Settlements (3)................................... (25) -- (3) -- 52 79 Transfers into Level 3 (4)........................ -- -- -- -- -- -- Transfers out of Level 3 (4)...................... -- -- -- -- -- -- --------- -------- -------- -------- --------------- ------------ Balance, December 31,............................. $ 58 $ 37 $ 33 $ -- $ (109) $ (44) ========= ======== ======== ======== =============== ============ Changes in unrealized gains (losses) included in net income (loss): (5) Net investment income........................... $ -- $ -- $ -- $ -- $ -- $ -- Net investment gains (losses)................... $ -- $ -- $ -- $ -- $ -- $ (7) Net derivative gains (losses)................... $ -- $ (19) $ 36 $ -- $ 636 $ --
F-105 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued)
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) -------------------------------------------------------------------------------------- Fixed Maturity Securities: -------------------------------------------------------------------------------------- U.S. State and U.S. Treasury Foreign Political Foreign Corporate and Agency Corporate RMBS CMBS ABS Subdivision Government ---------- ---------- ---------- ---------- -------- ---------- ----------- ---------- (In millions) Year Ended December 31, 2011: Balance, January 1,........... $ 5,063 $ 44 $ 2,796 $ 1,985 $ 161 $ 1,514 $ 1 $ 171 Total realized/unrealized gains (losses) included in: Net income (loss): (1), (2).. Net investment income....... 4 -- 7 10 -- 2 -- 6 Net investment gains (losses)................... (15) -- 16 (10) (1) (12) -- -- Net derivative gains (losses)................... -- -- -- -- -- -- -- -- Other comprehensive income (loss)...................... 258 2 (24) (52) 28 42 -- 17 Purchases (3)................. 789 -- 915 78 106 670 -- 118 Sales (3)..................... (653) (1) (1,129) (127) (86) (370) -- (21) Issuances (3)................. -- -- -- -- -- -- -- -- Settlements (3)............... -- -- -- -- -- -- -- -- Transfers into Level 3 (4).... 122 -- 155 -- 11 11 -- -- Transfers out of Level 3 (4).. (649) (20) (478) (1,193) -- (711) (1) -- ---------- ---------- ---------- ---------- -------- ---------- ----------- ---------- Balance, December 31,......... $ 4,919 $ 25 $ 2,258 $ 691 $ 219 $ 1,146 $ -- $ 291 ========== ========== ========== ========== ======== ========== =========== ========== Changes in unrealized gains (losses) included in net income (loss): (5) Net investment income....... $ 4 $ -- $ 5 $ 11 $ -- $ 2 $ -- $ 5 Net investment gains (losses)................... $ (27) $ -- $ (22) $ (10) $ -- $ (9) $ -- $ -- Net derivative gains (losses)................... $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ --
F-106 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued)
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) ------------------------------------------------------------------------- Equity Securities: Trading and FVO Securities: ---------------------- ------------------------- Non- FVO redeemable Actively General Separate Common Preferred Traded Account Short-term Account Stock Stock Securities Securities Investments Assets (6) -------- ---------- ---------- ---------- ----------- ---------- (In millions) Year Ended December 31, 2011: Balance, January 1,............................... $ 79 $ 633 $ 10 $ 50 $ 379 $ 1,509 Total realized/unrealized gains (losses) included in: Net income (loss): (1), (2)...................... Net investment income........................... -- -- -- (6) 1 -- Net investment gains (losses)................... 11 (45) -- -- (1) 101 Net derivative gains (losses)................... -- -- -- -- -- -- Other comprehensive income (loss)................ 11 1 -- -- -- -- Purchases (3)..................................... 22 2 -- -- 134 188 Sales (3)......................................... (20) (298) (8) (30) (379) (482) Issuances (3)..................................... -- -- -- -- -- -- Settlements (3)................................... -- -- -- -- -- -- Transfers into Level 3 (4)........................ 1 -- -- -- -- 18 Transfers out of Level 3 (4)...................... -- -- (2) -- -- (252) -------- ---------- ---------- ---------- ----------- ---------- Balance, December 31,............................. $ 104 $ 293 $ -- $ 14 $ 134 $ 1,082 ======== ========== ========== ========== =========== ========== Changes in unrealized gains (losses) included in net income (loss): (5) Net investment income............................ $ -- $ -- $ -- $ (6) $ 1 $ -- Net investment gains (losses).................... $ (6) $ (16) $ -- $ -- $ (1) $ -- Net derivative gains (losses).................... $ -- $ -- $ -- $ -- $ -- $ --
F-107 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued)
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) ----------------------------------------------------------------------- Net Derivatives: (7) ---------------------------------------- Foreign Currency Net Interest Exchange Equity Embedded Long-term Rate Rate Credit Market Derivatives (8) Debt of CSEs -------- -------- ------ ------- --------------- ------------ (In millions) Year Ended December 31, 2011: Balance, January 1,............................... $ (23) $ 46 $ 33 $ -- $ (382) $ (184) Total realized/unrealized gains (losses) included in: Net income (loss): (1), (2)...................... Net investment income........................... -- -- -- -- -- -- Net investment gains (losses)................... -- -- -- -- -- (8) Net derivative gains (losses)................... (7) 10 (33) -- (458) -- Other comprehensive income (loss)................ 130 -- 14 -- -- -- Purchases (3)..................................... -- -- -- -- -- -- Sales (3)......................................... -- -- -- -- -- -- Issuances (3)..................................... -- -- (2) -- -- -- Settlements (3)................................... (33) -- (11) -- 50 76 Transfers into Level 3 (4)........................ -- -- -- -- -- -- Transfers out of Level 3 (4)...................... -- -- -- -- -- -- -------- -------- ------ ------- --------------- ------------ Balance, December 31,............................. $ 67 $ 56 $ 1 $ -- $ (790) $ (116) ======== ======== ====== ======= =============== ============ Changes in unrealized gains (losses) included in net income (loss): (5) Net investment income........................... $ -- $ -- $ -- $ -- $ -- $ -- Net investment gains (losses)................... $ -- $ -- $ -- $ -- $ -- $ (8) Net derivative gains (losses)................... $ -- $ (13) $ 10 $(32) $ -- $ (454)
F-108 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued)
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) --------------------------------------------------------------------------- Fixed Maturity Securities: --------------------------------------------------------------------------- U.S. State and U.S. Treasury Foreign Political Foreign Corporate and Agency Corporate RMBS CMBS ABS Subdivision Government --------- ---------- --------- -------- ----- ------ ----------- ---------- (In millions) Year Ended December 31, 2010: Balance, January 1,............................... $ 4,674 $ -- $ 3,456 $ 2,290 $ 87 $ 958 $ 20 $ 249 Total realized/unrealized gains (losses) included in: Net income (loss): (1), (2)...................... Net investment income........................... 17 -- (1) 63 2 5 -- 5 Net investment gains (losses)................... (10) -- (32) (47) (2) (33) -- (1) Net derivative gains (losses)................... -- -- -- -- -- -- -- -- Other comprehensive income (loss)................ 184 -- 179 234 50 113 -- 16 Purchases, sales, issuances and settlements (3)... (400) 22 (709) (420) (21) 581 2 15 Transfers into Level 3 (4)........................ 751 22 351 57 45 29 -- -- Transfers out of Level 3 (4)...................... (153) -- (448) (192) -- (139) (21) (113) --------- ---------- --------- -------- ----- ------ ----------- ---------- Balance, December 31,............................. $ 5,063 $ 44 $ 2,796 $ 1,985 $ 161 $1,514 $ 1 $ 171 ========= ========== ========= ======== ===== ====== =========== ========== Changes in unrealized gains (losses) included in net income (loss): (5) Net investment income........................... $ 8 $ -- $ (2) $ 62 $ 1 $ 5 $ -- $ 5 Net investment gains (losses)................... $ (32) $ -- $ (43) $ (26) $ (2) $ (23) $ -- $ -- Net derivative gains (losses)................... $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ --
F-109 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued)
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) ------------------------------------------------------------------------- Equity Securities: Trading and FVO Securities: - ---------------------- ------------------------- Non- FVO redeemable Actively General Separate Common Preferred Traded Account Short-term Account Stock Stock Securities Securities Investments Assets (6) ------- ---------- ---------- ---------- ----------- ---------- (In millions) Year Ended December 31, 2010: Balance, January 1,............................... $ 64 $ 793 $ 32 $ 51 $ 8 $ 1,583 Total realized/unrealized gains (losses) included in: Net income (loss): (1), (2)...................... Net investment income........................... -- -- -- 10 1 -- Net investment gains (losses)................... (1) 30 -- -- -- 142 Net derivative gains (losses)................... -- -- -- -- -- -- Other comprehensive income (loss)................ -- 2 -- -- -- -- Purchases, sales, issuances and settlements (3)... 16 (192) (22) (30) 370 (31) Transfers into Level 3 (4)........................ 1 -- -- 37 -- 46 Transfers out of Level 3 (4)...................... (1) -- -- (18) -- (231) ------- ---------- ---------- ---------- ----------- ---------- Balance, December 31,............................. $ 79 $ 633 $ 10 $ 50 $ 379 $ 1,509 ======= ========== ========== ========== =========== ========== Changes in unrealized gains (losses) included in net income (loss): (5) Net investment income........................... $ -- $ -- $ -- $ 13 $ 1 $ -- Net investment gains (losses)................... $ (2) $ (3) $ -- $ -- $ -- $ -- Net derivative gains (losses)................... $ -- $ -- $ -- $ -- $ -- $ --
F-110 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued)
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) ----------------------------------------------------------------------- Net Derivatives: (7) ---------------------------------------- Foreign Currency Net Long-term Interest Exchange Equity Embedded Debt of Rate Rate Credit Market Derivatives (8) CSEs (9) -------- -------- ------ ------ --------------- ---------- (In millions) Year Ended December 31, 2010: Balance, January 1,............................... $ -- $ 53 $ 37 $ 2 $ 166 $ -- Total realized/unrealized gains (losses) included in: Net income (loss): (1), (2)...................... Net investment income........................... -- -- -- -- -- -- Net investment gains (losses)................... -- -- -- -- -- 48 Net derivative gains (losses)................... 23 28 2 (2) (588) -- Other comprehensive income (loss)................ (36) -- 1 -- -- -- Purchases, sales, issuances and settlements (3)... (10) (35) (7) -- 40 (232) Transfers into Level 3 (4)........................ -- -- -- -- -- -- Transfers out of Level 3 (4)...................... -- -- -- -- -- -- -------- -------- ------ ------ --------------- ---------- Balance, December 31,............................. $ (23) $ 46 $ 33 $ -- $ (382) $ (184) ======== ======== ====== ====== =============== ========== Changes in unrealized gains (losses) included in net income (loss): (5) Net investment income........................... $ -- $ -- $ -- $ -- $ -- $ -- Net investment gains (losses)................... $ -- $ -- $ -- $ -- $ -- $ 48 Net derivative gains (losses)................... $ 23 $ 21 $ 3 $ (2) $ (584) $ --
-------- (1)Amortization of premium/discount is included within net investment income. Impairments charged to net income (loss) on securities are included in net investment gains (losses). Lapses associated with net embedded derivatives are included in net derivative gains (losses). (2)Interest and dividend accruals, as well as cash interest coupons and dividends received, are excluded from the rollforward. (3)The amount reported within purchases, sales, issuances and settlements is the purchase or issuance price and the sales or settlement proceeds based upon the actual date purchased or issued and sold or settled, F-111 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) respectively. Items purchased/issued and sold/settled in the same period are excluded from the rollforward. Fees attributed to embedded derivatives are included in settlements. (4)Gains and losses, in net income (loss) and OCI, are calculated assuming transfers into and/or out of Level 3 occurred at the beginning of the period. Items transferred into and then out of Level 3 in the same period are excluded from the rollforward. (5)Relates to assets and liabilities still held at the end of the respective periods. (6)Investment performance related to separate account assets is fully offset by corresponding amounts credited to contractholders within separate account liabilities. Therefore, such changes in estimated fair value are not recorded in net income. For the purpose of this disclosure, these changes are presented within net investment gains (losses). (7)Freestanding derivative assets and liabilities are presented net for purposes of the rollforward. (8)Embedded derivative assets and liabilities are presented net for purposes of the rollforward. (9)The long-term debt of the CSEs consolidated as of January 1, 2010 is reported within the purchases, sales, issuances and settlements caption of the rollforward. Fair Value Option The following table presents information for long-term debt held by CSEs, which are accounted for under the FVO, and were initially measured at fair value.
December 31, ---------------- 2012 2011 - ------- -------- (In millions) Contractual principal balance............................................. $ 60 $ 138 Difference between estimated fair value and contractual principal balance. (16) (22) ------- -------- Carrying value at estimated fair value (1)............................... $ 44 $ 116 ======= ========
-------- (1)Changes in estimated fair value are recognized in net investment gains (losses). Interest expense is recognized in other expenses. F-112 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) Nonrecurring Fair Value Measurements The following table presents information for assets measured at estimated fair value on a nonrecurring basis during the periods presented; that is, they are not measured at fair value on a recurring basis but are subject to fair value adjustments only in certain circumstances (for example, when there is evidence of impairment). The estimated fair values for these assets were determined using significant unobservable inputs (Level 3).
Years Ended December 31, ------------------------------------------------------------------------------------------- 2012 2011 2010 --------------------------------- --------------------------------- ----------------------- Carrying Carrying Carrying Carrying Carrying Carrying Value Value Value Value Value Value Prior to After Gains Prior to After Gains Prior to After Measurement Measurement (Losses) Measurement Measurement (Losses) Measurement Measurement ----------- ----------- --------- ----------- ----------- --------- ----------- ----------- (In millions) Mortgage loans, net (1)........ $ 377 $ 361 $ (16) $ 168 $ 143 $ (25) $ 176 $ 160 Other limited partnership interests (2)................. $ 78 $ 48 $ (30) $ 11 $ 8 $ (3) $ 3 $ 1 Real estate joint ventures (3). $ 12 $ 8 $ (4) $ -- $ -- $ -- $ 8 $ 3 Goodwill (4)................... $ 10 $ -- $ (10) $ -- $ -- $ -- $ -- $ --
---------- ---------- Gains (Losses) --------- Mortgage loans, net (1)........ $ (16) Other limited partnership interests (2)................. $ (2) Real estate joint ventures (3). $ (5) Goodwill (4)................... $ --
-------- (1)The carrying value after measurement has been adjusted for the excess of the carrying value prior to measurement over the estimated fair value. Estimated fair values for impaired mortgage loans are based on independent broker quotations or valuation models using unobservable inputs or, if the loans are in foreclosure or are otherwise determined to be collateral dependent, are based on the estimated fair value of the underlying collateral or the present value of the expected future cash flows. (2)These investments were accounted for using the cost method. Estimated fair value is determined from information provided in the financial statements of the underlying entities including NAV data. These investments include private equity and debt funds that typically invest primarily in various strategies including domestic and international leveraged buyout funds; power, energy, timber and infrastructure development funds; venture capital funds; and below investment grade debt and mezzanine debt funds. Distributions will be generated from investment gains, from operating income from the underlying investments of the funds and from liquidation of the underlying assets of the funds. It is estimated that the underlying assets of the funds will be liquidated over the next two to 10 years. Unfunded commitments for these investments at both December 31, 2012 and 2011 were not significant. (3)These investments were accounted for using the cost method. Estimated fair value is determined from information provided in the financial statements of the underlying entities including NAV data. These investments include several real estate funds that typically invest primarily in commercial real estate. Distributions will be generated from investment gains, from operating income from the underlying investments of the funds and from liquidation of the underlying assets of the funds. It is estimated that the underlying assets of the funds will be liquidated over the next two to 10 years. Unfunded commitments for these investments at both December 31, 2012 and 2011 were not significant. (4)As discussed in Note 11, in 2012, the Company recorded an impairment of goodwill associated with the Retail Annuities reporting unit. F-113 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) Fair Value of Financial Instruments Carried at Other Than Fair Value The following tables provide fair value information for financial instruments that are carried on the balance sheet at amounts other than fair value. These tables exclude the following financial instruments: cash and cash equivalents, accrued investment income, payables for collateral under securities loaned and other transactions, short-term debt and those short-term investments that are not securities, such as time deposits, and therefore are not included in the three level hierarchy table disclosed in the "-- Recurring Fair Value Measurements" section. The estimated fair value of these financial instruments, which are primarily classified in Level 2 and, to a lesser extent, in Level 1, approximate carrying value as they are short-term in nature such that the Company believes there is minimal risk of material changes in interest rates or credit quality. The tables below also exclude financial instruments reported at estimated fair value on a recurring basis. See "-- Recurring Fair Value Measurements." All remaining balance sheet amounts excluded from the table below are not considered financial instruments subject to this disclosure. The carrying values and estimated fair values for such financial instruments, and their corresponding placement in the fair value hierarchy, are summarized as follows at:
December 31, 2012 -------------------------------------------------------------- Fair Value Hierarchy -------------------------------------------------------------- Carrying Total Estimated Value Level 1 Level 2 Level 3 Fair Value ---------- ----------- ----------- ----------- --------------- (In millions) Assets: Mortgage loans, net......................... $ 44,657 $ -- $ -- $ 47,365 $ 47,365 Policy loans................................ $ 8,364 $ -- $ 793 $ 9,470 $ 10,263 Real estate joint ventures.................. $ 52 $ -- $ -- $ 68 $ 68 Other limited partnership interests......... $ 1,048 $ -- $ -- $ 1,161 $ 1,161 Other invested assets....................... $ 2,014 $ 93 $ 1,885 $ 152 $ 2,130 Premiums, reinsurance and other receivables................................ $ 14,172 $ -- $ 37 $ 15,129 $ 15,166 Liabilities: PABs........................................ $ 71,611 $ -- $ -- $ 75,189 $ 75,189 Long-term debt.............................. $ 2,276 $ -- $ 2,713 $ -- $ 2,713 Other liabilities........................... $ 19,865 $ -- $ 171 $ 20,488 $ 20,659 Separate account liabilities................ $ 51,985 $ -- $ 51,985 $ -- $ 51,985 Commitments: (1) Mortgage loan commitments................... $ -- $ -- $ -- $ 10 $ 10 Commitments to fund bank credit facilities, bridge loans and private corporate bond investments................................ $ -- $ -- $ 13 $ -- $ 13
F-114 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued)
December 31, 2011 --------------------------- Carrying Estimated Value Fair Value ------------- ------------- (In millions) Assets: Mortgage loans, net................................................................. $ 43,880 $ 46,013 Policy loans........................................................................ $ 8,314 $ 10,279 Real estate joint ventures.......................................................... $ 59 $ 73 Other limited partnership interests................................................. $ 1,207 $ 1,517 Other invested assets............................................................... $ 1,996 $ 2,032 Premiums, reinsurance and other receivables......................................... $ 18,127 $ 19,276 Liabilities: PABs................................................................................ $ 65,606 $ 68,360 Long-term debt...................................................................... $ 2,106 $ 2,408 Other liabilities................................................................... $ 23,963 $ 24,637 Separate account liabilities........................................................ $ 45,467 $ 45,467 Commitments: (1) Mortgage loan commitments........................................................... $ -- $ 3 Commitments to fund bank credit facilities, bridge loans and private corporate bond investments........................................................................ $ -- $ 38
-------- (1)Commitments are off-balance sheet obligations. Negative estimated fair values represent off-balance sheet liabilities. See Note 17 for additional information on these off-balance sheet obligations. The methods, assumptions and significant valuation techniques and inputs used to estimate the fair value of financial instruments are summarized as follows: Mortgage Loans The estimated fair value of mortgage loans is primarily determined by estimating expected future cash flows and discounting them using current interest rates for similar mortgage loans with similar credit risk. Policy Loans Policy loans with fixed interest rates are classified within Level 3. The estimated fair values for these loans are determined using a discounted cash flow model applied to groups of similar policy loans determined by the nature of the underlying insurance liabilities. Cash flow estimates are developed by applying a weighted-average interest rate to the outstanding principal balance of the respective group of policy loans and an estimated average maturity determined through experience studies of the past performance of policyholder repayment behavior for similar loans. These cash flows are discounted using current risk-free interest rates with no adjustment for borrower credit risk as these loans are fully collateralized by the cash surrender value of the underlying insurance policy. Policy loans with variable interest rates are classified within Level 2 and the estimated fair value approximates carrying value due to the absence of borrower credit risk and the short time period between interest rate resets, which presents minimal risk of a material change in estimated fair value due to changes in market interest rates. F-115 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) Real Estate Joint Ventures and Other Limited Partnership Interests The amounts disclosed in the preceding tables consist of those investments accounted for using the cost method. The estimated fair values for such cost method investments are generally based on the Company's share of the NAV as provided in the financial statements of the investees. In certain circumstances, management may adjust the NAV by a premium or discount when it has sufficient evidence to support applying such adjustments. Other Invested Assets Other invested assets within the preceding tables are principally comprised of loans to affiliates and funds withheld. The estimated fair value of loans to affiliates is determined by discounting the expected future cash flows using market interest rates currently available for instruments with similar terms and remaining maturities. For funds withheld, the Company evaluates the specific facts and circumstances of each instrument to determine the appropriate estimated fair values. These estimated fair values were not materially different from the recognized carrying values. Premiums, Reinsurance and Other Receivables Premiums, reinsurance and other receivables in the preceding tables are principally comprised of certain amounts recoverable under reinsurance agreements, amounts on deposit with financial institutions to facilitate daily settlements related to certain derivatives and amounts receivable for securities sold but not yet settled. Amounts recoverable under ceded reinsurance agreements, which the Company has determined do not transfer significant risk such that they are accounted for using the deposit method of accounting, have been classified as Level 3. The valuation is based on discounted cash flow methodologies using significant unobservable inputs. The estimated fair value is determined using interest rates determined to reflect the appropriate credit standing of the assuming counterparty. The amounts on deposit for derivative settlements, classified within Level 2, essentially represent the equivalent of demand deposit balances and amounts due for securities sold are generally received over short periods such that the estimated fair value approximates carrying value. PABs PABs in the preceding tables include investment contracts. Embedded derivatives on investment contracts and certain variable annuity guarantees accounted for as embedded derivatives are excluded from this caption in the preceding tables as they are separately presented in "-- Recurring Fair Value Measurements." The investment contracts primarily include certain funding agreements, fixed deferred annuities, modified guaranteed annuities, fixed term payout annuities and total control accounts. The valuation of these investment contracts is based on discounted cash flow methodologies using significant unobservable inputs. The estimated fair value is determined using current market risk-free interest rates adding a spread to reflect the nonperformance risk in the liability. Long-term Debt The estimated fair value of long-term debt is principally determined using market standard valuation methodologies. Valuations are based primarily on quoted prices in markets that are not active or using matrix F-116 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) pricing that use standard market observable inputs such as quoted prices in markets that are not active and observable yields and spreads in the market. Instruments valued using discounted cash flow methodologies use standard market observable inputs including market yield curve, duration, observable prices and spreads for similar publicly traded or privately traded issues. Capital leases, which are not required to be disclosed at estimated fair value, are excluded from the preceding tables. Other Liabilities Other liabilities consist primarily of interest and dividends payable, amounts due for securities purchased but not yet settled, funds withheld amounts payable, which are contractually withheld by the Company in accordance with the terms of the reinsurance agreements, and amounts payable under certain ceded and assumed reinsurance agreements, which are recorded using the deposit method of accounting. The Company evaluates the specific terms, facts and circumstances of each instrument to determine the appropriate estimated fair values, which are not materially different from the carrying values, with the exception of certain deposit type reinsurance payables. For such payables, the estimated fair value is determined as the present value of expected future cash flows, which are discounted using an interest rate determined to reflect the appropriate credit standing of the assuming counterparty. Separate Account Liabilities Separate account liabilities included in the preceding tables represent those balances due to policyholders under contracts that are classified as investment contracts. Separate account liabilities classified as investment contracts primarily represent variable annuities with no significant mortality risk to the Company such that the death benefit is equal to the account balance, funding agreements related to group life contracts and certain contracts that provide for benefit funding. Since separate account liabilities are fully funded by cash flows from the separate account assets which are recognized at estimated fair value as described in the section "-- Recurring Fair Value Measurements," the value of those assets approximates the estimated fair value of the related separate account liabilities. The valuation techniques and inputs for separate account liabilities are similar to those described for separate account assets. Mortgage Loan Commitments and Commitments to Fund Bank Credit Facilities, Bridge Loans and Private Corporate Bond Investments The estimated fair values for mortgage loan commitments that will be held for investment and commitments to fund bank credit facilities, bridge loans and private corporate bonds that will be held for investment reflected in the above tables represent the difference between the discounted expected future cash flows using interest rates that incorporate current credit risk for similar instruments on the reporting date and the principal amounts of the commitments. 11. Goodwill Goodwill, which is included in other assets, is the excess of cost over the estimated fair value of net assets acquired. Goodwill is not amortized but is tested for impairment at least annually or more frequently if events or F-117 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) circumstances, such as adverse changes in the business climate, indicate that there may be justification for conducting an interim test. Step 1 of the goodwill impairment process requires a comparison of the fair value of a reporting unit to its carrying value. In performing the Company's goodwill impairment tests, the estimated fair values of the reporting units are first determined using a market multiple valuation approach. When further corroboration is required, the Company uses a discounted cash flow valuation approach. For reporting units which are particularly sensitive to market assumptions, such as the Retail Annuities and Life & Other reporting units, the Company may use additional valuation methodologies to estimate the reporting units' fair values. The market multiple valuation approach utilizes market multiples of companies with similar businesses and the projected operating earnings of the reporting unit. The discounted cash flow valuation approach requires judgments about revenues, operating earnings projections, capital market assumptions and discount rates. The key inputs, judgments and assumptions necessary in determining estimated fair value of the reporting units include projected operating earnings, current book value, the level of economic capital required to support the mix of business, long-term growth rates, comparative market multiples, the account value of in-force business, projections of new and renewal business, as well as margins on such business, the level of interest rates, credit spreads, equity market levels, and the discount rate that the Company believes is appropriate for the respective reporting unit. The estimated fair values of the Retail Annuities and Life & Other reporting units are particularly sensitive to equity market levels. The valuation methodologies utilized are subject to key judgments and assumptions that are sensitive to change. Estimates of fair value are inherently uncertain and represent only management's reasonable expectation regarding future developments. These estimates and the judgments and assumptions upon which the estimates are based will, in all likelihood, differ in some respects from actual future results. Declines in the estimated fair value of the Company's reporting units could result in goodwill impairments in future periods which could materially adversely affect the Company's results of operations or financial position. A discontinued cash flow valuation was performed for the Retail Annuities reporting unit that resulted in a fair value of the reporting unit less than the carrying value, indicating a potential for goodwill impairment. The growing concern regarding an extended period of low interest rates was reflected in the fair value estimate, particularly on the returns a market buyer would assume on the fixed income portion of separate account annuity products. While performing the Step 2 analysis, which compares the implied fair value of goodwill with the carrying value of that goodwill in the reporting unit to calculate the amount of goodwill impairment, the Company considered similar analysis performed on the Retail Annuities reporting unit of its parent company, MetLife, Inc., and determined that all of the recorded goodwill associated with the Company's Retail Annuities reporting unit was not recoverable. A non-cash charge of $10 million, which had no impact on income taxes, was recorded for the impairment of the entire goodwill balance in other expenses in the consolidated statements of operations for the year ended December 31, 2012. In addition, the Company performed its annual goodwill impairment tests of its other reporting units and concluded that the fair values of all such reporting units were in excess of their carrying values and, therefore, their goodwill was not impaired. As discussed in Note 2, during 2012, the Company reorganized its business. In connection with this reorganization, $105 million of goodwill at December 31, 2009 was reallocated to the Retail segment and Group, F-118 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) Voluntary & Worksite Benefits segment in the amounts of $37 million and $68 million, respectively. The reorganization had no impact on goodwill for the Corporate Benefit Funding segment and Corporate & Other. There were no acquisitions, dispositions or impairments of goodwill for both the years ended December 31, 2011 and 2010. Information regarding goodwill by segment, as well as Corporate & Other, was as follows:
Group, Voluntary & Corporate Worksite Benefit Corporate Retail Benefits Funding & Other Total --------- ----------- --------- --------- -------- (In millions) Balance at December 31, 2011 Goodwill..................... $ 37 $ 68 $ 2 $ 4 $ 111 Accumulated impairment....... -- -- -- -- -- --------- ------- ------- ------- -------- Total goodwill, net......... $ 37 $ 68 $ 2 $ 4 $ 111 Impairments.................. $ (10) $ -- $ -- $ -- $ (10) Balance at December 31, 2012 Goodwill..................... 37 68 2 4 111 Accumulated impairment....... (10) -- -- -- (10) --------- ------- ------- ------- -------- Total goodwill, net.......... $ 27 $ 68 $ 2 $ 4 $ 101 ========= ======= ======= ======= ========
12. Long-term and Short-term Debt Long-term and short-term debt outstanding was as follows:
Interest Rates (1) ---------------------- December 31, Weighted ----------------- Range Average Maturity 2012 2011 ------------- -------- ----------- -------- -------- (In millions) Surplus notes -- affiliated.... 3.00% - 7.38% 6.52% 2014 - 2037 $ 1,099 $ 1,099 Surplus notes.................. 7.63% - 7.88% 7.84% 2015 - 2025 700 700 Mortgage loans -- affiliated... 2.17% - 7.26% 5.40% 2015 - 2020 306 307 Senior notes -- affiliated (2). 1.03% - 3.09% 2.23% 2021 - 2022 80 -- Other notes.................... 0.22% - 8.00% 1.72% 2016 - 2027 91 -- Capital lease obligations...... 25 26 -------- -------- Total long-term debt (3)....... 2,301 2,132 Total short-term debt.......... 100 101 -------- -------- Total......................... $ 2,401 $ 2,233 ======== ========
-------- (1)Range of interest rates and weighted average interest rates are for the year ended December 31, 2012. (2)During 2012, a consolidated VIE issued $80 million of long-term debt to an affiliate. See Note 8. (3)Excludes $44 million and $116 million at December 31, 2012 and 2011, respectively, of long-term debt relating to CSEs. See Note 8. The aggregate maturities of long-term debt at December 31, 2012 for the next five years and thereafter are $1 million in 2013, $220 million in 2014, $502 million in 2015, $5 million in 2016, $5 million in 2017 and $1.6 billion thereafter. F-119 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) Capital lease obligations and mortgage loans are collateralized and rank highest in priority, followed by unsecured senior debt which consists of senior notes and other notes. Payments of interest and principal on the Company's surplus notes are subordinate to all other obligations. Payments of interest and principal on surplus notes may be made only with the prior approval of the insurance department of the state of domicile. Certain of the Company's debt instruments, credit facilities and committed facilities contain various administrative, reporting, legal and financial covenants. The Company believes it was in compliance with all such covenants at December 31, 2012. Surplus Notes -- Affiliated In April 2011, Metropolitan Life Insurance Company repaid in cash a $775 million surplus note issued to MetLife, Inc., with an original maturity of December 2011. The early redemption was approved by the Superintendent. In December 2010, Metropolitan Life Insurance Company repaid in cash a $300 million surplus note issued to MetLife, Inc. with an original maturity of 2011. The early redemption was approved by the Superintendent. In November 2010, Metropolitan Life Insurance Company issued a $188 million surplus note to MetLife Mexico, S.A., an affiliate, maturing in 2015 with an interest rate of 3.0%. Capital Notes -- Affiliated In December 2011, Metropolitan Life Insurance Company repaid in cash $500 million of capital notes issued to MetLife, Inc. Mortgage Loans -- Affiliated In December 2011, a wholly-owned real estate subsidiary of the Company issued a note for $110 million to MICC. This affiliated mortgage loan is secured by real estate held by the Company for investment. This note bears interest at a rate of one-month LIBOR plus 1.95%, which is payable quarterly through maturity in 2015. Short-term Debt Short-term debt with original maturities of one year or less consisted entirely of commercial paper. During the years ended December 31, 2012, 2011 and 2010, the weighted average interest rate on short-term debt was 0.17%, 0.16% and 0.21%, respectively. During the years ended December 31, 2012, 2011 and 2010, the average daily balance of short-term debt was $119 million, $102 million and $311 million, respectively, and the average days outstanding was 40 days, 44 days and 29 days, respectively. Interest Expense Interest expense related to the Company's indebtedness included in other expenses was $148 million, $185 million and $202 million for the years ended December 31, 2012, 2011 and 2010, respectively. These amounts include $89 million, $125 million and $143 million of interest expense related to affiliated debt for the years ended December 31, 2012, 2011 and 2010, respectively. Such amounts do not include interest expense on long-term debt related to CSEs. See Note 8. Credit and Committed Facilities The Company maintains unsecured credit facilities and a committed facility, which aggregated $4.0 billion and $500 million, respectively, at December 31, 2012. When drawn upon, these facilities bear interest at varying rates in accordance with the respective agreements. F-120 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) Credit Facilities The unsecured credit facilities are used for general corporate purposes, to support the borrowers' commercial paper program and for the issuance of letters of credit. Total fees expensed by the Company associated with these credit facilities were $3 million, $6 million and $8 million for the years ended December 31, 2012, 2011 and 2010, respectively, and are included in other expenses. Information on these credit facilities at December 31, 2012 was as follows:
Letter of Credit Unused Borrower(s) Expiration Capacity Issuances (1) Drawdowns Commitments ---------------------------------------- ------------------ -------- ------------- --------- ----------- (In millions) MetLife, Inc. and MetLife Funding, Inc.. September 2017 (2) $ 1,000 $ 365 $ -- $ 635 MetLife, Inc. and MetLife Funding, Inc.. August 2016 3,000 2,203 -- 797 -------- -------- ------- -------- Total.................................. $ 4,000 $ 2,568 $ -- $ 1,432 ======== ======== ======= ========
-------- (1)MetLife, Inc. and MetLife Funding, Inc. are severally liable for their respective obligations under such unsecured credit facilities. MetLife Funding, Inc. is not an applicant under letters of credit outstanding as of December 31, 2012 and is not responsible for any reimbursement obligations under such letters of credit. (2)In September 2012, MetLife, Inc. and MetLife Funding, Inc. entered into a $1.0 billion five-year credit agreement which amended and restated the three-year agreement dated October 2010. All borrowings under the 2012 five-year credit agreement must be repaid by September 2017, except that letters of credit outstanding on that date may remain outstanding until no later than September 2018. The Company incurred costs of $2 million related to the amended and restated credit facility, which have been capitalized and included in other assets. These costs will be amortized over the remaining term of the amended and restated credit facility. Committed Facility The committed facility is used for collateral for certain of the Company's affiliated reinsurance liabilities. Total fees expensed by the Company associated with this committed facility were $3 million, $3 million and $4 million for the years ended December 31, 2012, 2011 and 2010, respectively, and are included in other expenses. Information on the committed facility at December 31, 2012 was as follows:
Letter of Credit Unused Account Party/Borrower(s) Expiration Capacity Issuances Drawdowns Commitments ------------------------------------------- ---------- -------- --------- --------- ----------- (In millions) Exeter Reassurance Company, Ltd., MetLife, Inc. & Missouri Reinsurance, Inc......... June 2016 $ 500 $ 490 (1) $ -- $ 10
-------- (1)Missouri Reinsurance, Inc., a subsidiary of Metropolitan Life Insurance Company, had outstanding $390 million in letters of credit at December 31, 2012. F-121 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 13. Equity Capital Contributions During the year ended December 31, 2011, United MetLife Insurance Company Limited ("United"), an insurance underwriting joint venture of the Company accounted for under the equity method, merged with Sino-US MetLife Insurance Company Limited ("Sino"), another insurance underwriting joint venture of an affiliate of the Company. The Company's ownership interest in the merged entity, Sino-US United MetLife Insurance Company Limited ("Sino-United") was determined based on its contributed capital and share of undistributed earnings of United compared to the contributed capital and undistributed earnings of all other owners of United and Sino. Since both of the joint ventures were under common ownership both prior to and subsequent to the merger, the Company's investment in Sino-United is based on the carrying value of its investment in United. Pursuant to the merger, the Company entered into an agreement whereby the affiliate will pay an amount to the Company based on the relative fair values of their respective investments in Sino-United. Accordingly, upon completion of the estimation of fair value, $47 million, representing a capital contribution, was received during the year ended December 31, 2011. The Company's investment in Sino-United is accounted for under the equity method and is included in other invested assets. During each of the years ended December 31, 2012, 2011 and 2010, MetLife, Inc. contributed $3 million in the form of payment of line of credit fees on the Company's behalf. Stock-Based Compensation Plans Overview The stock-based compensation expense recognized by the Company is related to awards payable in shares of MetLife, Inc. common stock ("Shares"), or options to purchase MetLife, Inc. common stock. The Company does not issue any awards payable in its common stock or options to purchase its common stock. Description of Plans for Employees and Agents -- General Terms The MetLife, Inc. 2000 Stock Incentive Plan, as amended (the "2000 Stock Plan") authorized the granting of awards to employees and agents in the form of options ("Stock Options") to buy Shares that either qualify as incentive Stock Options under Section 422A of the Code or are non-qualified. By December 31, 2009 all awards under the 2000 Stock Plan had either vested or been forfeited. No awards have been made under the 2000 Stock Plan since 2005. Under the MetLife, Inc. 2005 Stock and Incentive Compensation Plan (the "2005 Stock Plan"), awards granted to employees and agents may be in the form of Stock Options, Stock Appreciation Rights, Restricted Stock or Restricted Stock Units, Performance Shares or Performance Share Units, Cash-Based Awards and Stock-Based Awards (each as defined in the 2005 Stock Plan with reference to Shares). The aggregate number of shares authorized for issuance under the 2005 Stock Plan is 68,000,000, plus those shares available but not utilized under the 2000 Stock Plan and those shares utilized under the 2000 Stock Plan that are recovered due to forfeiture of Stock Options. Each share issued under the 2005 Stock Plan in connection with a Stock Option or Stock Appreciation Right reduces the number of Shares remaining for issuance under that plan by one, and each Share issued under the 2005 Stock Plan in connection with awards other than Stock F-122 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) Options or Stock Appreciation Rights reduces the number of Shares remaining for issuance under that plan by 1.179 Shares. At December 31, 2012, the aggregate number of Shares remaining available for issuance pursuant to the 2005 Stock Plan was 24,715,318. Stock Option exercises and other awards settled in Shares are satisfied through the issuance of Shares held in treasury by MetLife, Inc. or by the issuance of new Shares. Of MetLife, Inc.'s stock-based compensation expense for the years ended December 31, 2012, 2011 and 2010, 76%, 70% and 79%, respectively, was allocated to the Company. No expense amounts related to stock-based awards to MetLife, Inc. non-management directors were allocated to the Company. This allocation represents substantially all stock-based compensation recognized in the Company's consolidated results of operations. Accordingly, this discussion addresses MetLife, Inc.'s practices for recognizing expense for awards under the 2000 Stock Plan and 2005 Stock Plan (together, the "Incentive Plans"). References to compensation expense in this note refer to the Company's allocated portion of that expense. All other references relevant to awards under the Incentive Plans pertain to all awards under those plans. Compensation expense related to awards under the 2005 Stock Plan is recognized based on the number of awards expected to vest, which represents the awards granted less expected forfeitures over the life of the award, as estimated at the date of grant. Unless a material deviation from the assumed forfeiture rate is observed during the term in which the awards are expensed, any adjustment necessary to reflect differences in actual experience is recognized in the period the award becomes payable or exercisable. Compensation expense related to awards under the 2005 Stock Plan is principally related to the issuance of Stock Options, Performance Shares and Restricted Stock Units. The majority of the awards granted by MetLife, Inc. each year under the 2005 Stock Plan are made in the first quarter of each year. Compensation Expense Related to Stock-Based Compensation The components of compensation expense related to stock-based compensation were as follows:
Years Ended December 31, ------------------------- 2012 2011 2010 -------- -------- ------- (In millions) Stock Options.............. $ 52 $ 48 $ 39 Performance Shares (1)..... 53 37 19 Restricted Stock Units..... 22 15 9 -------- -------- ------- Total compensation expense. $ 127 $ 100 $ 67 ======== ======== ======= Income tax benefit......... $ 44 $ 35 $ 23 ======== ======== =======
-------- (1)Performance Shares expected to vest and the related compensation expenses may be further adjusted by the performance factor most likely to be achieved, as estimated by management, at the end of the performance period. At December 31, 2012, the Company's allocated portion of expense for Stock Options, Performance Shares and Restricted Stock Units was 84%, 66% and 83%, respectively. F-123 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) The following table presents MetLife, Inc.'s total unrecognized compensation expense related to stock-based compensation and the expected weighted average period over which these expenses will be recognized at:
December 31, 2012 ------------------------------ Weighted Average Expense Period ------------- ---------------- (In millions) (Years) Stock Options.......... $ 56 1.74 Performance Shares..... $ 52 1.65 Restricted Stock Units. $ 28 1.73
Equity Awards Stock Options Stock Options are the contingent right of award holders to purchase Shares at a stated price for a limited time. All Stock Options have an exercise price equal to the closing price of a Share reported on the New York Stock Exchange on the date of grant, and have a maximum term of 10 years. The vast majority of Stock Options granted have become or will become exercisable at a rate of one-third of each award on each of the first three anniversaries of the grant date. Other Stock Options have become or will become exercisable on the third anniversary of the grant date. Vesting is subject to continued service, except for employees who are retirement eligible and in certain other limited circumstances. A summary of the activity related to Stock Options for the year ended December 31, 2012 was as follows:
Weighted Average Remaining Aggregate Shares Under Weighted Average Contractual Intrinsic Option Exercise Price Term Value (1) ------------ ---------------- ----------- ------------- (Years) (In millions) Outstanding at January 1, 2012....................... 34,713,526 $ 40.22 5.35 $ -- Granted.............................................. 6,247,050 $ 37.91 Exercised............................................ (3,817,301) $ 28.44 Expired.............................................. (1,017,994) $ 47.35 Forfeited............................................ (972,210) $ 40.23 ------------ Outstanding at December 31, 2012..................... 35,153,071 $ 40.89 5.50 $ 51 ============ ================ =========== ============= Expected to vest at a future date as of December 31, 2012............................................... 34,684,396 $ 40.94 5.41 $ 51 ============ ================ =========== ============= Exercisable at December 31, 2012..................... 24,530,711 $ 41.36 4.16 $ 50 ============ ================ =========== =============
-------- (1)The aggregate intrinsic value was computed using the closing Share price on December 31, 2012 of $32.94 and December 30, 2011 of $31.18, as applicable. The fair value of Stock Options is estimated on the date of grant using a binomial lattice model. Significant assumptions used in MetLife, Inc.'s binomial lattice model, which are further described below, include: expected volatility of the price of Shares; risk-free rate of return; expected dividend yield on Shares; exercise multiple; and the post-vesting termination rate. F-124 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) Expected volatility is based upon an analysis of historical prices of Shares and call options on Shares traded on the open market. MetLife, Inc. uses a weighted-average of the implied volatility for publicly-traded call options with the longest remaining maturity nearest to the money as of each valuation date and the historical volatility, calculated using monthly closing prices of Shares. MetLife, Inc. chose a monthly measurement interval for historical volatility as it believes this better depicts the nature of employee option exercise decisions being based on longer-term trends in the price of the underlying Shares rather than on daily price movements. The binomial lattice model used by MetLife, Inc. incorporates different risk-free rates based on the imputed forward rates for U.S. Treasury Strips for each year over the contractual term of the option. The table below presents the full range of rates that were used for options granted during the respective periods. Dividend yield is determined based on historical dividend distributions compared to the price of the underlying Shares as of the valuation date and held constant over the life of the Stock Option. The binomial lattice model used by MetLife, Inc. incorporates the contractual term of the Stock Options and then factors in expected exercise behavior and a post-vesting termination rate, or the rate at which vested options are exercised or expire prematurely due to termination of employment, to derive an expected life. Exercise behavior in the binomial lattice model used by MetLife, Inc. is expressed using an exercise multiple, which reflects the ratio of exercise price to the strike price of Stock Options granted at which holders of the Stock Options are expected to exercise. The exercise multiple is derived from actual historical exercise activity. The post-vesting termination rate is determined from actual historical exercise experience and expiration activity under the Incentive Plans. The following table presents the weighted average assumptions, with the exception of risk-free rate, which is expressed as a range, used to determine the fair value of Stock Options issued:
Years Ended December 31, ----------------------------------- 2012 2011 2010 ----------- ----------- ----------- Dividend yield........................................... 1.95% 1.65% 2.11% Risk-free rate of return................................. 0.21%-4.17% 0.29%-5.51% 0.35%-5.88% Expected volatility...................................... 35.59% 32.64% 34.41% Exercise multiple........................................ 1.58 1.69 1.75 Post-vesting termination rate............................ 3.14% 3.36% 3.64% Contractual term (years)................................. 10 10 10 Expected life (years).................................... 7 7 7 Weighted average exercise price of stock options granted. $37.91 $45.16 $35.06 Weighted average fair value of stock options granted..... $11.33 $14.27 $11.29
MetLife, Inc. deducts 35% of the compensation amount of a Stock Option from its income on its tax return. The compensation amount is the price of shares on the date the Stock Option is exercised less the exercise price of the Stock Option. This tax benefit is allocated to the subsidiary of MetLife, Inc. that is the current or former employer of the associate, or is or was the principal for the non-employee insurance agent, who exercised the Stock Option. F-125 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) The following table presents a summary of Stock Option exercise activity:
Years Ended December 31, ------------------------ 2012 2011 2010 - -------- ------- ------- (In millions) Total intrinsic value of stock options exercised......... $ 29 $ 41 $ 22 Cash received from exercise of stock options............. $ 109 $ 88 $ 52 Income tax benefit realized from stock options exercised. $ 10 $ 13 $ 8
Performance Shares Performance Shares are units that, if they vest, are multiplied by a performance factor to produce a number of final Performance Shares which are payable in Shares. Performance Shares are accounted for as equity awards, but are not credited with dividend-equivalents for actual dividends paid on Shares during the performance period. Accordingly, the estimated fair value of Performance Shares is based upon the closing price of a Share on the date of grant, reduced by the present value of estimated dividends to be paid on that stock during the performance period. Performance Share awards normally vest in their entirety at the end of the three-year performance period. Vesting is subject to continued service, except for employees who are retirement eligible and in certain other limited circumstances. Vested Performance Shares are multiplied by a performance factor of 0.0 to 2.0 based on MetLife, Inc.'s adjusted income, total shareholder return, and performance in change in annual net operating earnings and total shareholder return compared to the performance of its competitors, each measured with respect to the applicable three-year performance period or portions thereof. The performance factor was 1.13 for the January 1, 2009 -- December 31, 2011 performance period. Restricted Stock Units Restricted Stock Units are units that, if they vest, are payable in an equal number of Shares. Restricted Stock Units are accounted for as equity awards, but are not credited with dividend-equivalents for actual dividends paid on Shares during the performance period. Accordingly, the estimated fair value of Restricted Stock Units is based upon the closing price of Shares on the date of grant, reduced by the present value of estimated dividends to be paid on that stock during the performance period. The vast majority of Restricted Stock Units normally vest in their entirety on the third anniversary of their grant date. Other Restricted Stock Units normally vest in their entirety on the fifth anniversary of their grant date. Vesting is subject to continued service, except for employees who are retirement eligible and in certain other limited circumstances. F-126 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) The following table presents a summary of Performance Share and Restricted Stock Unit activity for the year ended December 31, 2012:
Performance Shares Restricted Stock Units ---------------------------- -------------------------- Weighted Average Weighted Average Grant Date Grant Date Shares Fair Value Units Fair Value ----------- ---------------- --------- ---------------- Outstanding at January 1, 2012.......... 5,024,094 $ 31.50 1,562,849 $ 34.74 Granted................................. 2,042,133 $ 35.38 971,304 $ 35.39 Forfeited............................... (452,590) $ 37.36 (171,475) $ 37.62 Payable (1)............................. (1,791,609) $ 20.71 (282,530) $ 21.88 ----------- --------- Outstanding at December 31, 2012........ 4,822,028 $ 36.93 2,080,148 $ 36.55 =========== ================ ========= ================ Expected to vest at a future date as of December 31, 2012..................... 4,817,941 $ 36.98 2,080,148 $ 36.55 =========== ================ ========= ================
-------- (1)Includes both Shares paid and Shares deferred for later payment. Performance Share amounts above represent aggregate initial target awards and do not reflect potential increases or decreases resulting from the performance factor determined after the end of the respective performance periods. At December 31, 2012, the three year performance period for the 2010 Performance Share grants was completed, but the performance factor had not yet been calculated. Included in the immediately preceding table are 1,347,025 outstanding Performance Shares to which the 2010-2012 performance factor will be applied. The factor will be determined in the second quarter of 2013. Statutory Equity and Income Each U.S. insurance company's state of domicile imposes risk-based capital ("RBC") requirements that were developed by the National Association of Insurance Commissioners ("NAIC"). Regulatory compliance is determined by a ratio of a company's total adjusted capital, calculated in the manner prescribed by the NAIC ("TAC") to its authorized control level RBC, calculated in the manner prescribed by the NAIC ("ACL RBC"). Companies below specific trigger points or ratios are classified within certain levels, each of which requires specified corrective action. The minimum level of TAC before corrective action commences is twice ACL RBC ("Company Action RBC"). TAC for Metropolitan Life Insurance Company and each of its insurance subsidiaries was in excess of four times Company Action RBC for all periods presented. Metropolitan Life Insurance Company and its insurance subsidiaries prepare statutory-basis financial statements in accordance with statutory accounting practices prescribed or permitted by the insurance department of their respective state of domicile. The NAIC has adopted the Codification of Statutory Accounting Principles ("Statutory Codification"). Statutory Codification is intended to standardize regulatory accounting and reporting to state insurance departments. However, statutory accounting principles continue to be established by individual state laws and permitted practices. Modifications by the various state insurance departments may impact the effect of Statutory Codification on the statutory capital and surplus of Metropolitan Life Insurance Company and its insurance subsidiaries. Statutory accounting principles differ from GAAP primarily by charging policy acquisition costs to expense as incurred, establishing future policy benefit liabilities using different actuarial assumptions, reporting surplus notes as surplus instead of debt, reporting of reinsurance agreements and valuing securities on a different basis. F-127 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) In addition, certain assets are not admitted under statutory accounting principles and are charged directly to surplus. The most significant assets not admitted by the Company are net deferred income tax assets resulting from temporary differences between statutory accounting principles basis and tax basis not expected to reverse and become recoverable within three years. Statutory net income (loss) of Metropolitan Life Insurance Company, a New York domiciled insurer, was $1.3 billion, $2.0 billion and $2.1 billion for the years ended December 31, 2012, 2011 and 2010, respectively. Statutory capital and surplus was $14.3 billion and $13.5 billion at December 31, 2012 and 2011, respectively. All such amounts are derived from the statutory-basis financial statements as filed with the New York State Department of Financial Services. Statutory net income (loss) of New England Life Insurance Company ("NELICO"), a Massachusetts domiciled insurer, was $79 million, $63 million and $33 million for the years ended December 31, 2012, 2011 and 2010, respectively. Statutory capital and surplus was $539 million and $529 million at December 31, 2012 and 2011, respectively. All such amounts are derived from the statutory-basis financial statements as filed with the Massachusetts State Division of Insurance. Statutory net income (loss) of GALIC, a Missouri domiciled insurer, was $19 million, $128 million and $64 million for the years ended December 31, 2012, 2011 and 2010, respectively. Statutory capital and surplus was $873 million and $825 million at December 31, 2012 and 2011, respectively. All such amounts are derived from the statutory-basis financial statements as filed with the Missouri State Department of Insurance. Dividend Restrictions Under New York State Insurance Law, Metropolitan Life Insurance Company is permitted, without prior insurance regulatory clearance, to pay stockholder dividends to MetLife, Inc. as long as the aggregate amount of all such dividends in any calendar year does not exceed the lesser of: (i) 10% of its surplus to policyholders as of the end of the immediately preceding calendar year; or (ii) its statutory net gain from operations for the immediately preceding calendar year (excluding realized capital gains). Metropolitan Life Insurance Company will be permitted to pay a dividend to MetLife, Inc. in excess of the lesser of such two amounts only if it files notice of its intention to declare such a dividend and the amount thereof with the Superintendent and the Superintendent either approves the distribution of the dividend or does not disapprove the dividend within 30 days of its filing. Under New York State Insurance Law, the Superintendent has broad discretion in determining whether the financial condition of a stock life insurance company would support the payment of such dividends to its stockholders. During the year ended December 31, 2012, Metropolitan Life Insurance Company paid a dividend of $1.0 billion. During the year ended December 31, 2011, Metropolitan Life Insurance Company paid a dividend of $1.3 billion, of which $170 million was a transfer of securities. During the year ended December 31, 2010, Metropolitan Life Insurance Company paid a dividend of $631 million, of which $399 million was a transfer of securities. Based on amounts at December 31, 2012, Metropolitan Life Insurance Company could pay a stockholder dividend in 2013 of $1.4 billion without prior approval of the Superintendent. Under Massachusetts State Insurance Law, NELICO is permitted, without prior insurance regulatory clearance, to pay a stockholder dividend to Metropolitan Life Insurance Company as long as the aggregate amount of all such dividends, when aggregated with all other dividends paid in the preceding 12 months, does not exceed the greater of: (i) 10 % of its surplus to policyholders at the end of the immediately preceding calendar year; or (ii) its statutory net gain from operations for the immediately preceding calendar year. NELICO will be permitted to pay a dividend to Metropolitan Life Insurance Company in excess of the greater of such two F-128 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) amounts only if it files notice of the declaration of such a dividend and the amount thereof with the Massachusetts Commissioner of Insurance (the "Massachusetts Commissioner") and the Massachusetts Commissioner either approves the distribution of the dividend or does not disapprove the distribution within 30 days of its filing. In addition, any dividend that exceeds unassigned funds (surplus) as of the last filed annual statutory statement requires insurance regulatory approval. Under Massachusetts State Insurance Law, the Massachusetts Commissioner has broad discretion in determining whether the financial condition of a stock life insurance company would support the payment of such dividends to its stockholders. During the years ended December 31, 2012, 2011 and 2010, NELICO paid a dividend of $46 million, $107 million and $84 million, respectively. Based on amounts at December 31, 2012, NELICO could pay a stockholder dividend in 2013 of $77 million without prior approval of the Massachusetts Commissioner. Under Missouri State Insurance Law, GALIC is permitted, without prior insurance regulatory clearance, to pay a stockholder dividend to Metropolitan Life Insurance Company as long as the amount of 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 net realized capital gains). GALIC will be permitted to pay a cash dividend to Metropolitan Life Insurance Company in excess of the greater of such two amounts only if it files notice of the declaration of such a dividend and the amount thereof with the Missouri Director of Insurance (the "Missouri Director") and the Missouri Director either approves the distribution of the dividend or does not disapprove the distribution within 30 days of its filing. In addition, any dividend that exceeds earned surplus (defined by the Company as "unassigned funds (surplus)") as of the last filed annual statutory statement requires insurance regulatory approval. Under Missouri State Insurance Law, the Missouri Director has broad discretion in determining whether the financial condition of a stock life insurance company would support the payment of such dividends to its stockholders. During the year ended December 31, 2012, GALIC did not pay dividends to Metropolitan Life Insurance Company. During the year ended December 31, 2011, GALIC paid an extraordinary cash dividend to GenAmerica Financial, LLC ("GenAmerica"), its former parent, of $183 million and GenAmerica subsequently paid an ordinary dividend to Metropolitan Life Insurance Company of $183 million. During the year ended December 31, 2010, GALIC paid a dividend to GenAmerica, which was subsequently paid by GenAmerica to Metropolitan Life Insurance Company, of $149 million. Based on amounts at December 31, 2012, GALIC could pay a stockholder dividend in 2013 of $86 million without prior approval of the Missouri Director. For the years ended December 31, 2012, 2011 and 2010, Metropolitan Life Insurance Company received dividends from non-insurance subsidiaries of $87 million, $518 million and $248 million, respectively. F-129 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) Other Comprehensive Income (Loss) The following table sets forth the balance and changes in AOCI including reclassification adjustments required for the years ended December 31, 2012, 2011 and 2010 in OCI that are included as part of net income for the current year that have been reported as a part of OCI in the current or prior year:
Years Ended December 31, -------------------------------- 2012 2011 2010 ---------- ---------- ---------- (In millions) Holding gains (losses) on investments arising during the year...................... $ 4,825 $ 9,190 $ 7,350 Income tax effect of holding gains (losses)........................................ (1,688) (3,219) (2,568) Reclassification adjustments for recognized holding (gains) losses included in current year income............................................................... 120 (45) (545) Income tax effect of reclassification adjustments.................................. (42) 16 190 Allocation of holding (gains) losses on investments relating to other policyholder amounts........................................................................... (2,684) (5,375) (2,153) Income tax effect of allocation of holding (gains) losses to other policyholder amounts........................................................................... 940 1,883 752 ---------- ---------- ---------- Net unrealized investment gains (losses), net of income tax........................ 1,471 2,450 3,026 Foreign currency translation adjustments, net of income tax expense (benefit) of ($11) million, $3 million and ($13) million.................................... (19) 3 (16) Defined benefit plans adjustment, net of income tax expense (benefit) of ($268) million, ($249) million and $63 million................................. (498) (422) 98 ---------- ---------- ---------- Other comprehensive income (loss), net of income tax............................... 954 2,031 3,108 Other comprehensive income (loss) attributable to noncontrolling interests......... -- -- (6) ---------- ---------- ---------- Other comprehensive income (loss) attributable to Metropolitan Life Insurance Company, excluding cumulative effect of change in accounting principle............ 954 2,031 3,102 Cumulative effect of change in accounting principle, net of income tax expense (benefit) of $0, $0 and $6 million (see Note 1)................................... -- -- 10 ---------- ---------- ---------- Other comprehensive income (loss) attributable to Metropolitan Life Insurance Company........................................................................... $ 954 $ 2,031 $ 3,112 ========== ========== ==========
14. Other Expenses Information on other expenses was as follows:
Years Ended December 31, ---------------------------- 2012 2011 2010 -------- -------- -------- (In millions) Compensation............................................... $ 2,426 $ 2,260 $ 2,230 Pension, postretirement and postemployment benefit costs... 285 330 331 Commissions................................................ 769 724 651 Volume-related costs....................................... 241 196 173 Affiliated interest costs on ceded and assumed reinsurance. 1,209 1,393 1,386 Capitalization of DAC...................................... (632) (724) (640) Amortization of DAC and VOBA............................... 991 875 809 Interest expense on debt and debt issuance costs........... 152 194 217 Premium taxes, licenses and fees........................... 294 302 288 Professional services...................................... 946 832 743 Rent, net of sublease income............................... 123 129 147 Other...................................................... (410) (40) (53) -------- -------- -------- Total other expenses..................................... $ 6,394 $ 6,471 $ 6,282 ======== ======== ========
F-130 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) Capitalization of DAC and Amortization of DAC and VOBA See Note 1 for information on the retrospective application of the adoption of new accounting guidance related to DAC. See Note 5 for additional information on DAC and VOBA including impacts of capitalization and amortization. See also Note 7 for a description of the DAC amortization impact associated with the closed block. Interest Expense on Debt and Debt Issuance Costs Interest expense on debt and debt issuance costs includes interest expense (see Note 12) and interest expense related to CSEs (see Note 8). Affiliated Expenses Commissions, capitalization of DAC and amortization of DAC and VOBA include the impact of affiliated reinsurance transactions. See Notes 6, 12 and 18 for a discussion of affiliated expenses included in the table above. Restructuring Charges MetLife, Inc. commenced in 2012 an enterprise-wide strategic initiative. This global strategy focuses on leveraging MetLife, Inc. and its subsidiaries' scale to improve the value they provide to customers and shareholders in order to reduce costs, enhance revenues, achieve efficiencies and reinvest in their technology, platforms and functionality to improve their current operations and develop new capabilities. These restructuring charges are included in other expenses. As the expenses relate to an enterprise-wide initiative, they are reported in Corporate & Other. Estimated restructuring costs may change as management continues to execute this enterprise-wide strategic initiative. Such restructuring charges, primarily related to severance, which were allocated to the Company were as follows:
Year Ended December 31, 2012 ------------------------------ (In millions) Balance at January 1,.............................................. $ -- Restructuring charges.............................................. 119 Cash payments...................................................... (97) ------------------------------ Balance at December 31,............................................ $ 22 ============================== Total restructuring charges incurred since inception of initiative. $ 119 ==============================
Management anticipates further restructuring charges including severance, lease and asset impairments, through the year ending December 31, 2014. However, such restructuring plans were not sufficiently developed to enable MetLife, Inc. to make an estimate of such restructuring charges at December 31, 2012. F-131 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 15. Employee Benefit Plans Pension and Other Postretirement Benefit Plans The Company sponsors and administers various U.S. qualified and non-qualified defined benefit pension plans and other postretirement employee benefit plans covering employees and sales representatives who meet specified eligibility requirements. Pension benefits are provided utilizing either a traditional formula or cash balance formula. The traditional formula provides benefits based upon years of credited service and final average earnings. The cash balance formula utilizes hypothetical or notional accounts which credit participants with benefits equal to a percentage of eligible pay, as well as earnings credits, determined annually based upon the average annual rate of interest on 30-year U.S. Treasury securities, for each account balance. At December 31, 2012, the majority of active participants were accruing benefits under the cash balance formula; however, approximately 90% of the Company's obligations result from benefits calculated with the traditional formula. The non-qualified pension plans provide supplemental benefits in excess of limits applicable to a qualified plan. Participating affiliates are allocated a proportionate share of net expense related to the plans as well as contributions made to the plans. The Company also provides certain postemployment benefits and certain postretirement medical and life insurance benefits for retired employees. Employees of the Company who were hired prior to 2003 (or, in certain cases, rehired during or after 2003) and meet age and service criteria while working for the Company may become eligible for these other postretirement benefits, at various levels, in accordance with the applicable plans. Virtually all retirees, or their beneficiaries, contribute a portion of the total costs of postretirement medical benefits. Employees hired after 2003 are not eligible for any employer subsidy for postretirement medical benefits. Participating affiliates are allocated a proportionate share of net expense and contributions related to the postemployment and other postretirement plans. F-132 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) Obligations and Funded Status
Other Pension Postretirement Benefits (1) Benefits --------------------- ------------------- December 31, ----------------------------------------- 2012 2011 2012 2011 ---------- ---------- ---------- -------- (In millions) Change in benefit obligations: Benefit obligations at January 1,..................... $ 7,867 $ 6,690 $ 2,106 $ 1,819 Service costs........................................ 197 165 36 16 Interest costs....................................... 384 384 103 107 Plan participants' contributions..................... -- -- 29 28 Net actuarial (gains) losses......................... 944 897 261 269 Plan amendments, change in benefits, and other (2)... -- 128 -- -- Net transfer in (out) of controlled group............ -- (12) -- -- Benefits paid........................................ (455) (385) (133) (133) ---------- ---------- ---------- -------- Benefit obligations at December 31,................... 8,937 7,867 2,402 2,106 ---------- ---------- ---------- -------- Change in plan assets: Fair value of plan assets at January 1,............... 6,699 5,976 1,240 1,184 Actual return on plan assets......................... 695 787 105 81 Plan amendments, change in benefits, and other (2)... -- 110 -- -- Plan participants' contributions..................... -- -- 29 28 Employer contributions............................... 451 223 79 80 Net transfer in (out) of controlled group............ -- (12) -- -- Benefits paid........................................ (455) (385) (133) (133) ---------- ---------- ---------- -------- Fair value of plan assets at December 31,............. 7,390 6,699 1,320 1,240 ---------- ---------- ---------- -------- Over (under) funded status at December 31,........... $ (1,547) $ (1,168) $ (1,082) $ (866) ========== ========== ========== ======== Amounts recognized in the consolidated balance sheets consist of: Other assets......................................... $ -- $ -- $ -- $ -- Other liabilities.................................... (1,547) (1,168) (1,082) (866) ---------- ---------- ---------- -------- Net amount recognized.............................. $ (1,547) $ (1,168) $ (1,082) $ (866) ========== ========== ========== ======== Accumulated other comprehensive (income) loss: Net actuarial (gains) losses......................... $ 2,918 $ 2,403 $ 796 $ 621 Prior service costs (credit)......................... 23 29 (74) (179) ---------- ---------- ---------- -------- Accumulated other comprehensive (income) loss, before income tax................................ $ 2,941 $ 2,432 $ 722 $ 442 ========== ========== ========== ======== Accumulated Benefit Obligation........................ $ 8,381 $ 7,438 N/A N/A ========== ==========
-------- (1)Includes non-qualified unfunded plans, for which the aggregate projected benefit obligation was $1.1 billion and $997 million at December 31, 2012 and 2011, respectively. (2)During 2011, the Company became the sole sponsor of a certain qualified defined pension plan. Accordingly, the Company transitioned its accounting for that plan from a multiemployer to a single employer plan as of December 31, 2011. F-133 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) The aggregate pension accumulated benefit obligation and aggregate fair value of plan assets for pension benefit plans with accumulated benefit obligations in excess of plan assets was as follows:
December 31, ----------------- 2012 2011 -------- -------- (In millions) Projected benefit obligations... $ 1,282 $ 1,129 Accumulated benefit obligations. $ 1,127 $ 1,011 Fair value of plan assets....... $ 123 $ 110
Information for pension and other postretirement benefit plans with a projected benefit obligation in excess of plan assets were as follows:
Other Pension Postretirement Benefits Benefits ----------------- ----------------- December 31, ----------------------------------- 2012 2011 2012 2011 -------- -------- -------- -------- (In millions) Projected benefit obligations. $ 8,937 $ 7,867 $ 2,402 $ 2,106 Fair value of plan assets..... $ 7,390 $ 6,699 $ 1,320 $ 1,240
Net Periodic Benefit Costs Net periodic benefit cost is determined using management estimates and actuarial assumptions to derive service cost, interest cost, and expected return on plan assets for a particular year. Net periodic benefit cost also includes the applicable amortization of net actuarial gains (losses) and amortization of any prior service cost (credit). The obligations and expenses associated with these plans require an extensive use of assumptions such as the discount rate, expected rate of return on plan assets, rate of future compensation increases, healthcare cost trend rates, as well as assumptions regarding participant demographics such as rate and age of retirements, withdrawal rates and mortality. Management, in consultation with its external consulting actuarial firms, determines these assumptions based upon a variety of factors such as historical performance of the plan and its assets, currently available market and industry data and expected benefit payout streams. The assumptions used may differ materially from actual results due to, among other factors, changing market and economic conditions and changes in participant demographics. These differences may have a significant effect on the Company's consolidated financial statements and liquidity. Net periodic pension costs and net periodic other postretirement benefit plan costs are comprised of the following: . Service Costs -- Service costs are the increase in the projected (expected) PBO resulting from benefits payable to employees of the Company on service rendered during the current year. . Interest Costs -- Interest costs are the time value adjustment on the projected (expected) PBO at the end of each year. . Settlement and Curtailment Costs -- The aggregate amount of net gains (losses) recognized in net periodic benefit costs due to settlements and curtailments. Settlements result from actions that relieve/ F-134 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) eliminate the plan's responsibility for benefit obligations or risks associated with the obligations or assets used for the settlement. Curtailments result from an event that significantly reduces/eliminates plan participants' expected years of future services or benefit accruals. . Expected Return on Plan Assets -- Expected return on plan assets is the assumed return earned by the accumulated pension and other postretirement fund assets in a particular year. . Amortization of Net Actuarial Gains (Losses) -- Actuarial gains and losses result from differences between the actual experience and the expected experience on pension and other postretirement plan assets or projected (expected) PBO during a particular period. These gains and losses are accumulated and, to the extent they exceed 10% of the greater of the PBO or the fair value of plan assets, the excess is amortized into pension and other postretirement benefit costs over the expected service years of the employees. . Amortization of Prior Service Costs (Credit) -- These costs relate to the recognition of increases or decreases in pension and other postretirement benefit obligation due to amendments in plans or initiation of new plans. These increases or decreases in obligation are recognized in AOCI at the time of the amendment. These costs are then amortized to pension and other postretirement benefit costs over the expected service years of the employees affected by the change. The Company's proportionate share of components of net periodic benefit costs and other changes in plan assets and benefit obligations recognized in OCI were as follows:
Pension Benefits Other Postretirement Benefits ----------------------- ----------------------------- Years Ended December 31, ----------------------------------------------------- 2012 2011 2010 2012 2011 2010 ------- ------- ------- ------- ------- ------ (In millions) Net Periodic Benefit Costs: Service costs................................... $ 190 $ 165 $ 150 $ 30 $ 16 $ 17 Interest costs.................................. 374 384 375 95 107 111 Settlement and curtailment costs................ -- -- 8 -- -- -- Expected return on plan assets.................. (448) (423) (422) (75) (76) (79) Amortization of net actuarial (gains) losses.... 182 189 192 52 42 38 Amortization of prior service costs (credit).... 6 3 6 (95) (108) (83) ------- ------- ------- ------- ------- ------ Total net periodic benefit costs (credit)..... 304 318 309 7 (19) 4 ------- ------- ------- ------- ------- ------ Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Loss): Net actuarial (gains) losses.................... 705 532 24 232 264 49 Prior service costs (credit).................... -- 18 -- -- -- (81) Amortization of net actuarial gains (losses).... (189) (189) (192) (57) (42) (38) Amortization of prior service (costs) credit.... (6) (3) (6) 104 108 83 ------- ------- ------- ------- ------- ------ Total recognized in other comprehensive income (loss)............................... 510 358 (174) 279 330 13 ------- ------- ------- ------- ------- ------ Total recognized in net periodic benefit costs and other comprehensive income (loss).................................... $ 814 $ 676 $ 135 $ 286 $ 311 $ 17 ======= ======= ======= ======= ======= ======
F-135 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) For the year ended December 31, 2012, included within OCI were other changes in plan assets and benefit obligations associated with pension benefits of $510 million and other postretirement benefits of $279 million for an aggregate reduction in OCI of $789 million before income tax and $512 million, net of income tax. The estimated net actuarial (gains) losses and prior service costs (credit) for the pension plans and the defined benefit other postretirement benefit plans that will be amortized from AOCI into net periodic benefit costs over the next year are $216 million and $6 million, and $73 million and ($75) million, respectively. The Medicare Modernization Act of 2003 created various subsidies for sponsors of retiree drug programs. Two common ways of providing subsidies were the Retiree Drug Subsidy ("RDS") and Medicare Part D Prescription Drug Plans ("PDP"). From 2006 through 2010, the Company applied for and received the RDS each year. The RDS program provides the subsidy through cash payments made by Medicare to the Company, resulting in smaller net claims paid by the Company. A summary of the reduction to the APBO and the related reduction to the components of net periodic other postretirement benefits plan costs resulting from receipt of the RDS is presented below. As of January 1, 2011, as a result of changes made under the Patient Protection and Affordable Care Act of 2010, the Company, no longer applies for the RDS. Instead it has joined PDP and will indirectly receive Medicare subsidies in the form of smaller gross benefit payments for prescription drug coverage.
December 31, 2010 ------------------- (In millions) Cumulative reduction in other postretirement benefits obligations: Balance at January 1,............................................. $ 247 Service costs..................................................... 3 Interest costs.................................................... 16 Net actuarial (gains) losses...................................... (255) Expected prescription drug subsidy................................ (11) -------------- Balance at December 31,........................................... $ -- ==============
Year Ended December 31, 2010 ------------------- (In millions) Reduction in net periodic other postretirement benefit costs: Service costs................................................ $ 3 Interest costs............................................... 16 Amortization of net actuarial (gains) losses................. 10 -------------- Total reduction in net periodic benefit costs.............. $ 29 ==============
The Company did not receive subsidies for the year ended December 31, 2012. The Company received subsidies of $3 million and $8 million for the years ended December 31, 2011 and 2010, respectively. Assumptions Assumptions used in determining benefit obligations were as follows:
Pension Benefits Other Postretirement Benefits ---------------------- ---------------------------- December 31, ---------------------------------------------------- 2012 2011 2012 2011 ---------- ---------- ---- ---- Weighted average discount rate.......... 4.20% 4.95% 4.20% 4.95% Rate of compensation increase........... 3.50%-7.50% 3.50%-7.50% N/A N/A
F-136 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) Assumptions used in determining net periodic benefit costs were as follows:
Pension Benefits Other Postretirement Benefits ----------------------------------- ----------------------------- December 31, ---------------------------------------------------------------- 2012 2011 2010 2012 2011 2010 ----------- ----------- ----------- ----- ---- ---- Weighted average discount rate.... 4.95% 5.80% 6.25% 4.95% 5.80% 6.25% Weighted average expected rate of return onplan assets............ 7.00% 7.25% 8.00% 6.26% 7.25% 7.20% Rate of compensation increase..... 3.50%-7.50% 3.50%-7.50% 3.50%-7.50% N/A N/A N/A
The weighted average discount rate is determined annually based on the yield, measured on a yield to worst basis, of a hypothetical portfolio constructed of high quality debt instruments available on the valuation date, which would provide the necessary future cash flows to pay the aggregate projected benefit obligation when due. The weighted average expected rate of return on plan assets is based on anticipated performance of the various asset sectors in which the plan invests, weighted by target allocation percentages. Anticipated future performance is based on long-term historical returns of the plan assets by sector, adjusted for the Company's long-term expectations on the performance of the markets. While the precise expected rate of return derived using this approach will fluctuate from year to year, the Company's policy is to hold this long-term assumption constant as long as it remains within reasonable tolerance from the derived rate. The weighted average expected rate of return on plan assets for use in that plan's valuation in 2013 is currently anticipated to be 6.25% for pension benefits and 5.75% for other postretirement benefits. The assumed healthcare costs trend rates used in measuring the APBO and net periodic benefit costs were as follows:
December 31, -------------------------------------------------------------------------- 2012 2011 -------------------------------------- ----------------------------------- 7.8% in 2013, gradually 7.3% in 2012, gradually decreasing each year until 2094 decreasing each year until 2083 reaching the ultimate rate of 4.4% for reaching the ultimate rate of 4.3%. Pre-and Post-Medicare Pre-Medicare and 4.6% for eligible claims..... Post-Medicare.
Assumed healthcare costs trend rates may have a significant effect on the amounts reported for healthcare plans. A 1% change in assumed healthcare costs trend rates would have the following effects as of December 31, 2012:
One Percent One Percent Increase Decrease ------------ ------------ (In millions) Effect on total of service and interest costs components.............. $ 17 $ (14) Effect of accumulated postretirement benefit obligations.............. $ 309 $ (252)
F-137 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) Plan Assets The pension and other postretirement benefit plan assets are categorized into a three-level fair value hierarchy, as defined in Note 10, based upon the significant input with the lowest level in its valuation. The following summarizes the types of assets included within the three-level fair value hierarchy presented below. Level 1 This category includes investments in fixed maturity securities, equity securities, derivative assets, and short-term investments which have unadjusted quoted market prices in active markets for identical assets and liabilities. Level 2 This category includes certain separate accounts that are primarily invested in liquid and readily marketable securities. The estimated fair value of such separate account is based upon reported NAV provided by fund managers and this value represents the amount at which transfers into and out of the respective separate account are effected. These separate accounts provide reasonable levels of price transparency and can be corroborated through observable market data. Certain separate accounts are invested in investment partnerships designated as hedge funds. The values for these separate accounts is determined monthly based on the NAV of the underlying hedge fund investment. Additionally, such hedge funds generally contain lock out or other waiting period provisions for redemption requests to be filled. While the reporting and redemption restrictions may limit the frequency of trading activity in separate accounts invested in hedge funds, the reported NAV, and thus the referenced value of the separate account, provides a reasonable level of price transparency that can be corroborated through observable market data. Directly held investments are primarily invested in U.S. and foreign government and corporate securities. Level 3 This category includes separate accounts that are invested in fixed maturity securities, equity securities, derivative assets and other investments that provide little or no price transparency due to the infrequency with which the underlying assets trade and generally require additional time to liquidate in an orderly manner. Accordingly, the values for separate accounts invested in these alternative asset classes are based on inputs that cannot be readily derived from or corroborated by observable market data. The Company provides employees with benefits under various Employee Retirement Income Security Act of 1974 ("ERISA") benefit plans. These include qualified pension plans, postretirement medical plans and certain retiree life insurance coverage. The assets of the Company's qualified pension plans are held in insurance group annuity contracts, and the vast majority of the assets of the postretirement medical plan and backing the retiree life coverage are held in insurance contracts. All of these contracts are issued by the Company and the assets under the contracts are held in insurance separate accounts that have been established by the Company. The underlying assets of the separate accounts are principally comprised of cash and cash equivalents, short term investments, fixed maturity and equity securities, derivatives, real estate, private equity investments and hedge fund investments. The insurance contract provider engages investment management firms ("Managers") to serve as sub-advisors for the separate accounts based on the specific investment needs and requests identified by the plan fiduciary. These Managers have portfolio management discretion over the purchasing and selling of securities and other F-138 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) investment assets pursuant to the respective investment management agreements and guidelines established for each insurance separate account. The assets of the qualified pension plans and postretirement medical plans (the "Invested Plans") are well diversified across multiple asset categories and across a number of different Managers, with the intent of minimizing risk concentrations within any given asset category or with any given Manager. The Invested Plans, other than those held in participant directed investment accounts, are managed in accordance with investment policies consistent with the longer-term nature of related benefit obligations and within prudent risk parameters. Specifically, investment policies are oriented toward (i) maximizing the Invested Plan's funded status; (ii) minimizing the volatility of the Invested Plan's funded status; (iii) generating asset returns that exceed liability increases; and (iv) targeting rates of return in excess of a custom benchmark and industry standards over appropriate reference time periods. These goals are expected to be met through identifying appropriate and diversified asset classes and allocations, ensuring adequate liquidity to pay benefits and expenses when due and controlling the costs of administering and managing the Invested Plan's investments. Independent investment consultants are periodically used to evaluate the investment risk of Invested Plan's assets relative to liabilities, analyze the economic and portfolio impact of various asset allocations and management strategies and to recommend asset allocations. Derivative contracts may be used to reduce investment risk, to manage duration and to replicate the risk/return profile of an asset or asset class. Derivatives may not be used to leverage a portfolio in any manner, such as to magnify exposure to an asset, asset class, interest rates or any other financial variable. Derivatives are also prohibited for use in creating exposures to securities, currencies, indices or any other financial variable that are otherwise restricted. The table below summarizes the actual weighted average allocation of the fair value of total plan assets by asset class at December 31 for the years indicated and the approved target allocation by major asset class at December 31, 2012 for the Invested Plans:
Pension Postretirement Medical -------------------------- -------------------------- Actual Allocation Actual Allocation ----------------- ----------------- Target 2012 2011 Target 2012 2011 -------- ------- ------- -------- ------- ------- Asset Class: Fixed maturity securities (1)..................... 75% 69% 61% 70% 63% 62% Equity securities (2)............................. 12% 21% 24% 30% 37% 37% Alternative securities (3)........................ 13% 10% 15% 0% --% 1% ------- ------- ------- ------- Total assets..................................... 100% 100% 100% 100% ======= ======= ======= =======
Postretirement Life ------------------------- Actual Allocation ---------------- Target 2012 2011 -------- -------- ------- Asset Class: Fixed maturity securities (1)..................... 0% -- % --% Equity securities (2)............................. 0% -- % --% Alternative securities (3)........................ 100% 100% 100% -------- ------- Total assets..................................... 100% 100% ======== =======
---------- (1)Fixed maturity securities include ABS, collateralized mortgage obligations, corporate, federal agency, foreign bonds, mortgage-backed securities, municipals, preferred stocks and U.S. government bonds. Certain prior year amounts have been reclassified from alternative securities into fixed maturity securities to conform to the current year presentation. (2)Equity securities primarily include common stock of U.S. companies. (3)Alternative securities primarily include derivative assets, money market securities, short-term investments and other investments. Postretirement life's target and actual allocation of plan assets are all in short-term investments. F-139 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) The pension and postretirement plan assets measured at estimated fair value on a recurring basis were determined as described in "-- Plan Assets." These estimated fair values and their corresponding placement in the fair value hierarchy are summarized as follows:
December 31, 2012 ------------------------------------------------------------------------ Pension Benefits Other Postretirement Benefits ----------------------------------- ------------------------------------ Fair Value Measurements at Fair Value Measurements at Reporting Date Using Reporting Date Using ------------------------- -------------------------- Total Total Estimated Estimated Fair Fair Level 1 Level 2 Level 3 Value Level 1 Level 2 Level 3 Value -------- -------- ------- --------- ------- ------- ------- --------- (In millions) Assets: Fixed maturity securities: Corporate................. $ -- $ 2,119 $ 18 $ 2,137 $ -- $ 165 $ 4 $ 169 U.S. government bonds..... 1,082 150 -- 1,232 175 3 -- 178 Foreign bonds............. -- 714 7 721 -- 51 -- 51 Federal agencies.......... 1 314 -- 315 -- 26 -- 26 Municipals................ -- 242 -- 242 -- 70 1 71 Other (1)................. -- 460 7 467 -- 55 3 58 -------- -------- ------ -------- ------ ------ ---- -------- Total fixed maturity securities............. 1,083 3,999 32 5,114 175 370 8 553 -------- -------- ------ -------- ------ ------ ---- -------- Equity securities: Common stock - domestic... 1,024 36 129 1,189 249 1 -- 250 Common stock - foreign.... 339 -- -- 339 83 -- -- 83 -------- -------- ------ -------- ------ ------ ---- -------- Total equity securities.. 1,363 36 129 1,528 332 1 -- 333 -------- -------- ------ -------- ------ ------ ---- -------- Other investments........... -- 110 419 529 -- -- -- -- Short-term investments...... -- 200 -- 200 -- 432 -- 432 Money market securities..... 2 9 -- 11 1 -- -- 1 Derivative assets........... -- 7 1 8 -- 1 -- 1 -------- -------- ------ -------- ------ ------ ---- -------- Total assets............. $ 2,448 $ 4,361 $ 581 $ 7,390 $ 508 $ 804 $ 8 $ 1,320 ======== ======== ====== ======== ====== ====== ==== ========
F-140 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued)
December 31, 2011 ------------------------------------------------------------------------ Pension Benefits Other Postretirement Benefits - ----------------------------------- ------------------------------------ Fair Value Measurements at Fair Value Measurements at Reporting Date Using Reporting Date Using - ------------------------- -------------------------- Total Total Estimated Estimated Fair Fair Level 1 Level 2 Level 3 Value Level 1 Level 2 Level 3 Value -------- -------- ------- --------- ------- ------- ------- --------- (In millions) Assets: Fixed maturity securities: Corporate............................. $ -- $ 1,820 $ 30 $ 1,850 $ -- $ 139 $ 4 $ 143 U.S. government bonds................. 949 176 -- 1,125 160 1 -- 161 Foreign bonds......................... -- 200 5 205 -- 13 -- 13 Federal agencies...................... 1 270 -- 271 -- 29 -- 29 Municipals............................ -- 174 -- 174 -- 59 1 60 Other (1)............................. -- 445 2 447 -- 84 5 89 -------- -------- ------ -------- ------ ------ ----- -------- Total fixed maturity securities...... 950 3,085 37 4,072 160 325 10 495 -------- -------- ------ -------- ------ ------ ----- -------- Equity securities: Common stock - domestic............... 1,082 36 194 1,312 240 2 -- 242 Common stock - foreign................ 271 -- -- 271 55 -- -- 55 -------- -------- ------ -------- ------ ------ ----- -------- Total equity securities.............. 1,353 36 194 1,583 295 2 -- 297 -------- -------- ------ -------- ------ ------ ----- -------- Other investments....................... -- 65 501 566 -- -- -- -- Short-term investments.................. 4 378 -- 382 6 435 -- 441 Money market securities................. 2 -- -- 2 -- 1 -- 1 Derivative assets....................... 28 9 4 41 -- -- 1 1 Other receivables....................... -- 45 -- 45 -- 4 -- 4 Securities receivable................... -- 8 -- 8 -- 1 -- 1 -------- -------- ------ -------- ------ ------ ----- -------- Total assets......................... $ 2,337 $ 3,626 $ 736 $ 6,699 $ 461 $ 768 $ 11 $ 1,240 ======== ======== ====== ======== ====== ====== ===== ========
---------- (1)Other primarily includes mortgage-backed securities, collateralized mortgage obligations, and ABS. The prior year amounts have been reclassified into fixed maturity securities to conform to the current year presentation. F-141 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) A rollforward of all pension and other postretirement benefit plan assets measured at estimated fair value on a recurring basis using significant unobservable (Level 3) inputs was as follows:
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) -------------------------------------------------------------------------------------------------------- Pension Benefits Other Postretirement Benefits - -------------------------------------------------------------- ----------------------------------------- Fixed Maturity Equity Fixed Maturity Securities: Securities: Securities: - --------------------------- ----------- ------------------------------ Common Foreign Stock- Other Derivative Derivative Corporate Bonds Other (1) Domestic Investments Assets Corporate Municipals Other (1) Assets --------- ------- --------- ----------- ----------- ---------- --------- ---------- --------- ---------- (In millions) Year Ended December 31, 2012: Balance, January 1,. $ 30 $ 5 $ 2 $ 194 $ 501 $ 4 $ 4 $ 1 $ 5 $ 1 Realized gains (losses)........... -- -- -- (25) 52 4 -- -- (2) 2 Unrealized gains (losses)........... (1) 8 1 9 (38) (6) -- -- 2 (2) Purchases, sales, issuances and settlements, net... (11) (6) 4 (49) (96) (1) -- -- (2) (1) Transfers into and/or out of Level 3............ -- -- -- -- -- -- -- -- -- -- --------- ------- --------- ----------- ----------- ---------- --------- ---------- --------- ---------- Balance, December 31,....... $ 18 $ 7 $ 7 $ 129 $ 419 $ 1 $ 4 $ 1 $ 3 $ -- ========= ======= ========= =========== =========== ========== ========= ========== ========= ========== Fair Value Measurements Using Significant Unobservable Inputs (Level 3) -------------------------------------------------------------------------------------------------------- Pension Benefits Other Postretirement Benefits - -------------------------------------------------------------- ----------------------------------------- Fixed Maturity Equity Fixed Maturity Securities: Securities: Securities: - --------------------------- ----------- ------------------------------ Common Foreign Stock- Other Derivative Derivative Corporate Bonds Other (1) Domestic Investments Assets Corporate Municipals Other (1) Assets --------- ------- --------- ----------- ----------- ---------- --------- ---------- --------- ---------- (In millions) Year Ended December 31, 2011: Balance, January 1,. $ 45 $ 4 $ 2 $ 228 $ 446 $ (1) $ 4 $ 1 $ 6 $ -- Realized gains (losses)........... -- -- (1) (57) 80 1 -- -- (1) -- Unrealized gains (losses)........... (3) (2) 1 110 42 6 -- -- 1 1 Purchases, sales, issuances and settlements, net... (13) 3 (1) (87) (67) (2) -- -- (1) -- Transfers into and/or out of Level 3............ 1 -- 1 -- -- -- -- -- -- -- --------- ------- --------- ----------- ----------- ---------- --------- ---------- --------- ---------- Balance, December 31,....... $ 30 $ 5 $ 2 $ 194 $ 501 $ 4 $ 4 $ 1 $ 5 $ 1 ========= ======= ========= =========== =========== ========== ========= ========== ========= ==========
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) --------------------------------------------------------------------------------------------- Pension Benefits Other Postretirement Benefits - -------------------------------------------------------------- ------------------------------ Fixed Maturity Equity Fixed Maturity Securities: Securities: Securities: - --------------------------- ----------- ------------------------------ Common Foreign Stock- Other Derivative Corporate Bonds Other (1) Domestic Investments Assets Corporate Municipals Other (1) --------- ------- --------- ----------- ----------- ---------- --------- ---------- --------- (In millions) Year Ended December 31, 2010: Balance, January 1,. $ 64 $ 5 $ 66 $ 229 $ 354 $ -- $ -- $ -- $ 9 Realized gains (losses)........... -- -- (11) -- 74 2 -- -- (4) Unrealized gains (losses)........... 7 1 13 (2) (4) (2) 1 -- 1 Purchases, sales, issuances and settlements, net... (17) (2) (67) 1 22 (1) -- -- (1) Transfers into and/or out of Level 3............ (9) -- 1 -- -- -- 3 1 1 --------- ------- --------- ----------- ----------- ---------- --------- ---------- --------- Balance, December 31,....... $ 45 $ 4 $ 2 $ 228 $ 446 $ (1) $ 4 $ 1 $ 6 ========= ======= ========= =========== =========== ========== ========= ========== =========
---------- (1)Other includes ABS and collateralized mortgage obligations. F-142 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) Expected Future Contributions and Benefit Payments It is the Company's practice to make contributions to the qualified pension plan to comply with minimum funding requirements of ERISA. In accordance with such practice, no contributions are required for 2013. The Company expects to make discretionary contributions to the qualified pension plan of $202 million in 2013. For information on employer contributions, see "--Obligations and Funded Status." Benefit payments due under the non-qualified pension plans are primarily funded from the Company's general assets as they become due under the provision of the plans, therefore benefit payments equal employer contributions. The Company expects to make contributions of $61 million to fund the benefit payments in 2013. Postretirement benefits are either: (i) not vested under law; (ii) a non-funded obligation of the Company; or (iii) both. Current regulations do not require funding for these benefits. The Company uses its general assets, net of participant's contributions, to pay postretirement medical claims as they come due in lieu of utilizing any plan assets. The Company expects to make contributions of $78 million towards benefit obligations in 2013 to pay postretirement medical claims. As noted previously, the Company no longer expects to receive the RDS under the Medicare Modernization Act of 2003 to partially offset payment of such benefits. Instead, the gross benefit payments that will be made under the PDP will already reflect subsidies. Gross benefit payments for the next 10 years, which reflect expected future service where appropriate, are expected to be as follows:
Other Pension Postretirement Benefits Benefits ------------ -------------- (In millions) 2013.............................................. $ 422 $ 113 2014.............................................. $ 457 $ 116 2015.............................................. $ 452 $ 118 2016.............................................. $ 468 $ 119 2017.............................................. $ 493 $ 120 2018-2022......................................... $ 2,705 $ 617
Additional Information As previously discussed, most of the assets of the pension and other postretirement benefit plans are held in group annuity and life insurance contracts issued by the Company. Total revenues from these contracts recognized in the consolidated statements of operations were $54 million, $47 million and $46 million for the years ended December 31, 2012, 2011 and 2010, respectively, and included policy charges and net investment income from investments backing the contracts and administrative fees. Total investment income (loss), including realized and unrealized gains (losses), credited to the account balances was $867 million, $885 million and $767 million for the years ended December 31, 2012, 2011 and 2010, respectively. The terms of these contracts are consistent in all material respects with those the Company offers to unaffiliated parties that are similarly situated. F-143 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) Defined Contribution Plans The Company sponsors defined contribution plans for substantially all Company employees under which a portion of employee contributions are matched. The Company contributed $83 million, $73 million and $72 million for the years ended December 31, 2012, 2011 and 2010, respectively. 16. Income Tax The provision for income tax from continuing operations was as follows:
Years Ended December 31, ------------------------ 2012 2011 2010 - -------- -------- ------ (In millions) Current: Federal.......................................... $ 675 $ 551 $ 304 State and local.................................. 2 2 4 Foreign.......................................... 176 116 46 -------- -------- ------ Subtotal....................................... 853 669 354 -------- -------- ------ Deferred: Federal.......................................... 346 769 346 Foreign.......................................... (144) 22 69 -------- -------- ------ Subtotal....................................... 202 791 415 -------- -------- ------ Provision for income tax expense (benefit)... $ 1,055 $ 1,460 $ 769 ======== ======== ======
The reconciliation of the income tax provision at the U.S. statutory rate to the provision for income tax as reported for continuing operations was as follows:
Years Ended December 31, ------------------------ 2012 2011 2010 -------- -------- ------ (In millions) Tax provision at U.S. statutory rate.... $ 1,294 $ 1,660 $ 878 Tax effect of: Tax-exempt investment income.......... (118) (102) (100) State and local income tax............ 2 3 1 Prior year tax........................ 10 10 48 Tax credits........................... (160) (119) (72) Foreign tax rate differential......... 3 2 (2) Change in valuation allowance......... 13 -- 13 Other, net............................ 11 6 3 -------- -------- ------ Provision for income tax expense (benefit).......................... $ 1,055 $ 1,460 $ 769 ======== ======== ======
F-144 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (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 at:
December 31, --------------------- 2012 2011 ---------- ---------- (In millions) Deferred income tax assets: Policyholder liabilities and receivables.................. $ 2,495 $ 2,558 Net operating loss carryforwards.......................... 35 26 Employee benefits......................................... 1,075 840 Capital loss carryforwards................................ 17 11 Tax credit carryforwards.................................. 372 249 Litigation-related and government mandated................ 175 200 Other..................................................... 198 94 ---------- ---------- Total gross deferred income tax assets................... 4,367 3,978 Less: Valuation allowance................................. 52 38 ---------- ---------- Total net deferred income tax assets..................... 4,315 3,940 ---------- ---------- Deferred income tax liabilities: Investments, including derivatives........................ 2,283 1,754 DAC....................................................... 1,629 1,876 Net unrealized investment gains........................... 3,412 2,617 Other..................................................... 27 17 ---------- ---------- Total deferred income tax liabilities.................... 7,351 6,264 ---------- ---------- Net deferred income tax asset (liability)................ $ (3,036) $ (2,324) ========== ==========
The following table sets forth the domestic, state, and foreign net operating and capital loss carryforwards for tax purposes at December 31, 2012:
Net Operating Loss Capital Loss Carryforwards Carryforwards ------------------------------- ------------------------------- Amount Expiration Amount Expiration ------------- ----------------- ------------- ----------------- (In millions) (In millions) Domestic................................ $ 30 Beginning in 2018 $ -- N/A Foreign................................. $ 70 Beginning in 2027 $ 50 Beginning in 2014
Tax credit carryforwards of $372 million at December 31, 2012 will expire beginning in 2021. The Company has recorded a valuation allowance increase related to tax benefits of $7 million related to certain state and foreign net operating loss carryforwards and an increase of $7 million related to certain foreign capital 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 and capital loss carryforwards and certain state net operating loss carryforwards will not be realized. The tax benefit will be recognized when management believes that it is more likely than not that these deferred income tax assets are realizable. The Company files income tax returns with the U.S. federal government and various state and local jurisdictions, as well as foreign jurisdictions. The Company is under continuous examination by the Internal F-145 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) Revenue Service ("IRS") and other tax authorities in jurisdictions in which the Company has significant business operations. The income tax years under examination vary by jurisdiction and subsidiary. The Company is no longer subject to U.S. federal, state and local, or foreign income tax examinations in major taxing jurisdictions for years prior to 2003, except for 2000 through 2002 where the IRS has disallowed certain tax credits claimed and the Company continues to protest. The IRS audit cycle for the years 2003 through 2006, which began in April 2010, is expected to conclude in 2013. The Company's liability for unrecognized tax benefits may increase or decrease in the next 12 months. A reasonable estimate of the increase or decrease cannot be made at this time. However, the Company continues to believe that the ultimate resolution of the pending issues will not result in a material change to its consolidated financial statements, although the resolution of income tax matters could impact the Company's effective tax rate for a particular future period A reconciliation of the beginning and ending amount of unrecognized tax benefits was as follows:
Years Ended December 31, -------------------------- 2012 2011 2010 -------- -------- -------- (In millions) Balance at January 1,.................................................... $ 525 $ 499 $ 592 Additions for tax positions of prior years............................... 27 26 2 Reductions for tax positions of prior years.............................. (5) -- (54) Additions for tax positions of current year.............................. -- 1 2 Reductions for tax positions of current year............................. -- (1) (1) Settlements with tax authorities......................................... (15) -- (31) Lapses of statutes of limitations........................................ -- -- (11) -------- -------- -------- Balance at December 31,.................................................. $ 532 $ 525 $ 499 ======== ======== ======== Unrecognized tax benefits that, if recognized would impact the effective rate................................................................... $ 466 $ 459 $ 432 ======== ======== ========
The Company classifies interest accrued related to unrecognized tax benefits in interest expense, included within other expenses, while penalties are included in income tax expense. Interest was as follows:
Years Ended December 31, ---------------------- 2012 2011 2010 ------ ------- ------- (In millions) Interest recognized in the consolidated statements of operations................................................ $ 8 $ 27 $ 27 December 31, --------------- 2012 2011 ------- ------- (In millions) Interest included in other liabilities in the consolidated balance sheets............................................................. $ 211 $ 203
F-146 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) The Company had no penalties for the years ended December 31, 2012, 2011 and 2010. The U.S. Treasury Department and the IRS have indicated that they intend to address through regulations the methodology to be followed in determining the dividends received deduction ("DRD"), related to variable life insurance and annuity contracts. The DRD reduces the amount of dividend income subject to tax and is a significant component of the difference between the actual tax expense and expected amount determined using the federal statutory tax rate of 35%. Any regulations that the IRS ultimately proposes for issuance in this area will be subject to public notice and comment, at which time insurance companies and other interested parties will have the opportunity to raise legal and practical questions about the content, scope and application of such regulations. As a result, the ultimate timing and substance of any such regulations are unknown at this time. For the years ended December 31, 2012 and 2011, the Company recognized an income tax benefit of $70 million and $69 million, respectively, related to the separate account DRD. The 2012 benefit included a benefit of $2 million related to a true-up of the 2011 tax return. The 2011 benefit included a benefit of $4 million related to a true-up of the 2010 tax return. 17. Contingencies, Commitments and Guarantees Contingencies Litigation The Company is a defendant in a large number of litigation matters. In some of the matters, very large and/or indeterminate amounts, including punitive and treble damages, are sought. Modern pleading practice in the U.S. permits considerable variation in the assertion of monetary damages or other relief. Jurisdictions may permit claimants not to specify the monetary damages sought or may permit claimants to state only that the amount sought is sufficient to invoke the jurisdiction of the trial court. In addition, jurisdictions may permit plaintiffs to allege monetary damages in amounts well exceeding reasonably possible verdicts in the jurisdiction for similar matters. This variability in pleadings, together with the actual experience of the Company in litigating or resolving through settlement numerous claims over an extended period of time, demonstrates to management that the monetary relief which may be specified in a lawsuit or claim bears little relevance to its merits or disposition value. Due to the vagaries of litigation, the outcome of a litigation matter and the amount or range of potential loss at particular points in time may normally be difficult to ascertain. Uncertainties can include how fact finders will evaluate documentary evidence and the credibility and effectiveness of witness testimony, and how trial and appellate courts will apply the law in the context of the pleadings or evidence presented, whether by motion practice, or at trial or on appeal. Disposition valuations are also subject to the uncertainty of how opposing parties and their counsel will themselves view the relevant evidence and applicable law. The Company establishes liabilities for litigation and regulatory loss contingencies when it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. Liabilities have been established for a number of the matters noted below. It is possible that some of the matters could require the Company to pay damages or make other expenditures or establish accruals in amounts that could not be estimated at December 31, 2012. While the potential future charges could be material in the particular quarterly or annual periods in which they are recorded, based on information currently known to management, management does not believe any such charges are likely to have a material effect on the Company's financial position. F-147 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) Matters as to Which an Estimate Can Be Made For some of the matters disclosed below, the Company is able to estimate a reasonably possible range of loss. For such matters where a loss is believed to be reasonably possible, but not probable, no accrual has been made. As of December 31, 2012, the Company estimates the aggregate range of reasonably possible losses in excess of amounts accrued for these matters to be $0 to $235 million. Matters as to Which an Estimate Cannot Be Made For other matters disclosed below, the Company is not currently able to estimate the reasonably possible loss or range of loss. The Company is often unable to estimate the possible loss or range of loss until developments in such matters have provided sufficient information to support an assessment of the range of possible loss, such as quantification of a damage demand from plaintiffs, discovery from other parties and investigation of factual allegations, rulings by the court on motions or appeals, analysis by experts, and the progress of settlement negotiations. On a quarterly and annual basis, the Company reviews relevant information with respect to litigation contingencies and updates its accruals, disclosures and estimates of reasonably possible losses or ranges of loss based on such reviews. Asbestos-Related Claims Metropolitan Life Insurance Company is and has been a defendant in a large number of asbestos-related suits filed primarily in state courts. These suits principally allege that the plaintiff or plaintiffs suffered personal injury resulting from exposure to asbestos and seek both actual and punitive damages. Metropolitan Life Insurance Company has never engaged in the business of manufacturing, producing, distributing or selling asbestos or asbestos-containing products nor has Metropolitan Life Insurance Company issued liability or workers' compensation insurance to companies in the business of manufacturing, producing, distributing or selling asbestos or asbestos-containing products. The lawsuits principally have focused on allegations with respect to certain research, publication and other activities of one or more of Metropolitan Life Insurance Company's employees during the period from the 1920's through approximately the 1950's and allege that Metropolitan Life Insurance Company learned or should have learned of certain health risks posed by asbestos and, among other things, improperly publicized or failed to disclose those health risks. Metropolitan Life Insurance Company believes that it should not have legal liability in these cases. The outcome of most asbestos litigation matters, however, is uncertain and can be impacted by numerous variables, including differences in legal rulings in various jurisdictions, the nature of the alleged injury and factors unrelated to the ultimate legal merit of the claims asserted against Metropolitan Life Insurance Company. Metropolitan Life Insurance Company employs a number of resolution strategies to manage its asbestos loss exposure, including seeking resolution of pending litigation by judicial rulings and settling individual or groups of claims or lawsuits under appropriate circumstances. Claims asserted against Metropolitan Life Insurance Company have included negligence, intentional tort and conspiracy concerning the health risks associated with asbestos. Metropolitan Life Insurance Company's defenses (beyond denial of certain factual allegations) include that: (i) Metropolitan Life Insurance Company owed no duty to the plaintiffs-- it had no special relationship with the plaintiffs and did not manufacture, produce, distribute or sell the asbestos products that allegedly injured plaintiffs; (ii) plaintiffs did not rely on any actions of Metropolitan Life Insurance Company; (iii) Metropolitan Life Insurance Company's conduct was not the cause of the plaintiffs' injuries; (iv) plaintiffs' exposure occurred after the dangers of asbestos were known; and (v) the applicable time with respect to filing suit has expired. During the course of the litigation, certain trial F-148 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) courts have granted motions dismissing claims against Metropolitan Life Insurance Company, while other trial courts have denied Metropolitan Life Insurance Company's motions to dismiss. There can be no assurance that Metropolitan Life Insurance Company will receive favorable decisions on motions in the future. While most cases brought to date have settled, Metropolitan Life Insurance Company intends to continue to defend aggressively against claims based on asbestos exposure, including defending claims at trials. The approximate total number of asbestos personal injury claims pending against Metropolitan Life Insurance Company as of the dates indicated, the approximate number of new claims during the years ended on those dates and the approximate total settlement payments made to resolve asbestos personal injury claims at or during those years are set forth in the following table:
December 31, -------------------------------------- 2012 2011 2010 --------- --------- --------- (In millions, except number of claims) Asbestos personal injury claims at year end................. 65,812 66,747 68,513 Number of new claims during the year........................ 5,303 4,972 5,670 Settlement payments during the year (1)..................... $ 36.4 $ 34.2 $ 34.9
-------- (1)Settlement payments represent payments made by Metropolitan Life Insurance Company during the year in connection with settlements made in that year and in prior years. Amounts do not include Metropolitan Life Insurance Company's attorneys' fees and expenses and do not reflect amounts received from insurance carriers. In 2009, Metropolitan Life Insurance Company received 3,910 new claims, ending the year with a total of 68,804 claims, and paid $37.6 million for settlements reached in 2009 and prior years. In 2008, Metropolitan Life Insurance Company received 5,063 new claims, ending the year with a total of 74,027 claims, and paid $99 million for settlements reached in 2008 and prior years. In 2007, Metropolitan Life Insurance Company received 7,161 new claims, ending the year with a total of 79,717 claims, and paid $28.2 million for settlements reached in 2007 and prior years. In 2006, Metropolitan Life Insurance Company received 7,870 new claims, ending the year with a total of 87,070 claims, and paid $35.5 million for settlements reached in 2006 and prior years. In 2005, Metropolitan Life Insurance Company received 18,500 new claims, ending the year with a total of 100,250 claims, and paid $74.3 million for settlements reached in 2005 and prior years. In 2004, Metropolitan Life Insurance Company received 23,900 new claims, ending the year with a total of 108,000 claims, and paid $85.5 million for settlements reached in 2004 and prior years. In 2003, Metropolitan Life Insurance Company received 58,750 new claims, ending the year with a total of 111,700 claims, and paid $84.2 million for settlements reached in 2003 and prior years. The number of asbestos cases that may be brought, the aggregate amount of any liability that Metropolitan Life Insurance Company may incur, and the total amount paid in settlements in any given year are uncertain and may vary significantly from year to year. The ability of Metropolitan Life Insurance Company to estimate its ultimate asbestos exposure is subject to considerable uncertainty, and the conditions impacting its liability can be dynamic and subject to change. The availability of reliable data is limited and it is difficult to predict the numerous variables that can affect liability estimates, including the number of future claims, the cost to resolve claims, the disease mix and severity of disease in pending and future claims, the impact of the number of new claims filed in a particular jurisdiction and variations in the law in the jurisdictions in which claims are filed, the possible impact of tort reform efforts, the willingness of courts to allow plaintiffs to pursue claims against Metropolitan Life Insurance Company when F-149 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) exposure to asbestos took place after the dangers of asbestos exposure were well known, and the impact of any possible future adverse verdicts and their amounts. The ability to make estimates regarding ultimate asbestos exposure declines significantly as the estimates relate to years further in the future. In the Company's judgment, there is a future point after which losses cease to be probable and reasonably estimable. It is reasonably possible that the Company's total exposure to asbestos claims may be materially greater than the asbestos liability currently accrued and that future charges to income may be necessary. While the potential future charges could be material in the particular quarterly or annual periods in which they are recorded, based on information currently known by management, management does not believe any such charges are likely to have a material effect on the Company's financial position. The Company believes adequate provision has been made in its consolidated financial statements for all probable and reasonably estimable losses for asbestos-related claims. Metropolitan Life Insurance Company's recorded asbestos liability is based on its estimation of the following elements, as informed by the facts presently known to it, its understanding of current law and its past experiences: (i) the probable and reasonably estimable liability for asbestos claims already asserted against Metropolitan Life Insurance Company, including claims settled but not yet paid; (ii) the probable and reasonably estimable liability for asbestos claims not yet asserted against Metropolitan Life Insurance Company, but which Metropolitan Life Insurance Company believes are reasonably probable of assertion; and (iii) the legal defense costs associated with the foregoing claims. Significant assumptions underlying Metropolitan Life Insurance Company's analysis of the adequacy of its recorded liability with respect to asbestos litigation include: (i) the number of future claims; (ii) the cost to resolve claims; and (iii) the cost to defend claims. Metropolitan Life Insurance Company reevaluates on a quarterly and annual basis its exposure from asbestos litigation, including studying its claims experience, reviewing external literature regarding asbestos claims experience in the United States, assessing relevant trends impacting asbestos liability and considering numerous variables that can affect its asbestos liability exposure on an overall or per claim basis. These variables include bankruptcies of other companies involved in asbestos litigation, legislative and judicial developments, the number of pending claims involving serious disease, the number of new claims filed against it and other defendants and the jurisdictions in which claims are pending. As previously disclosed, in 2002 Metropolitan Life Insurance Company increased its recorded liability for asbestos related claims by $402 million from $820 million to $1.2 billion. Based upon its regular reevaluation of its exposure from asbestos litigation, Metropolitan Life Insurance Company has updated its liability analysis for asbestos-related claims through December 31, 2012. Regulatory Matters The Company receives and responds to subpoenas or other inquiries from state regulators, including state insurance commissioners; state attorneys general or other state governmental authorities; federal regulators, including the U.S. Securities and Exchange Commission ("SEC"); federal governmental authorities, including congressional committees; and the Financial Industry Regulatory Authority ("FINRA") seeking a broad range of information. The issues involved in information requests and regulatory matters vary widely. The Company cooperates in these inquiries. United States of America v. EME Homer City Generation, L.P., et al. (W.D. Pa., filed January 4, 2011). On January 4, 2011, the U.S. commenced a civil action in United States District Court for the Western District of Pennsylvania against EME Homer City Generation L.P. ("EME Homer City"), Homer City OL6 LLC, and other defendants regarding the operations of the Homer City Generating Station, an electricity generating facility. At F-150 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) the time the action was commenced, Homer City OL6 LLC, an entity owned by Metropolitan Life Insurance Company, was a passive investor with a non-controlling interest in the electricity generating facility, which was solely operated by the lessee, EME Homer City. In a 2012 transaction, ownership of the electricity generating facility was transferred to Homer City Generation, L.P., and Homer City OL6 LLC was merged into Homer City Generation, L.P. Metropolitan Life Insurance Company is a limited partner in Homer City Generation, L.P. The complaint sought injunctive relief and assessment of civil penalties for alleged violations of the federal Clean Air Act and Pennsylvania's State Implementation Plan. The alleged violations were the subject of Notices of Violations ("NOVs") that the Environmental Protection Agency ("EPA") issued to EME Homer City, Homer City OL6 LLC, and others in June 2008 and May 2010. On January 7, 2011, the United States District Court for the Western District of Pennsylvania granted the motion by the Pennsylvania Department of Environmental Protection and the State of New York to intervene in the lawsuit as additional plaintiffs. On February 16, 2011, the State of New Jersey filed an Intervenor's Complaint in the lawsuit. On October 12, 2011, the court issued an order dismissing the U.S.'s lawsuit with prejudice. The Government entities have appealed from the order granting defendants' motion to dismiss. EME Homer City acknowledged its obligation to indemnify the owners of the electricity generating facility for any claims relating to the NOVs. The Sierra Club, which in a February 13, 2012 letter to the operator and owners of the electricity generating facility had stated its intent to sue for alleged violations of the Clean Air Act, subsequently indicated that it does not intend to commence suit. As a result of the change in the ownership structure, the parties to the proceeding no longer include a subsidiary of Metropolitan Life Insurance Company. In the Matter of Chemform, Inc. Site, Pompano Beach, Broward County, Florida. In July 2010, the EPA advised Metropolitan Life Insurance Company that it believed payments were due under two settlement agreements, known as "Administrative Orders on Consent," that New England Mutual Life Insurance Company ("New England Mutual") signed in 1989 and 1992 with respect to the cleanup of a Superfund site in Florida (the "Chemform Site"). The EPA originally contacted Metropolitan Life Insurance Company (as successor to New England Mutual) and a third party in 2001, and advised that they owed additional clean-up costs for the Chemform Site. The matter was not resolved at that time. The EPA is requesting payment of an amount under $1 million from Metropolitan Life Insurance Company and such third party for past costs and an additional amount for future environmental testing costs at the Chemform Site. In June 2012, the EPA, Metropolitan Life Insurance Company and the third party executed an Administrative Order on Consent under which Metropolitan Life Insurance Company and the third party have agreed to be responsible for certain environmental testing at the Chemform site. The Company estimates that its costs for the environmental testing will not exceed $100,000. The June 2012 Administrative Order on Consent does not resolve the EPA's claim for past clean-up costs. The EPA may seek additional costs if the environmental testing identifies issues. The Company estimates that the aggregate cost to resolve this matter will not exceed $1 million. Metco Site, Hicksville, Nassau County, New York. On February 22, 2012, the New York State Department of Environmental Conservation ("Department of Environmental Conservation") issued a notice to Metropolitan Life Insurance Company, as purported successor in interest to New England Mutual, that it is a potentially responsible party with respect to hazardous substances and hazardous waste located on a property that New England Mutual owned for a time in 1978. Metropolitan Life Insurance Company has responded to the Department of Environmental Conservation and asserted that it is not a potentially responsible party under the law. Sales Practices Regulatory Matters. Regulatory authorities in a small number of states and FINRA, and occasionally the SEC, have had investigations or inquiries relating to sales of individual life insurance policies or annuities or other products by Metropolitan Life Insurance Company, NELICO, GALIC, and New England Securities Corporation. These investigations often focus on the conduct of particular financial services F-151 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) representatives and the sale of unregistered or unsuitable products or the misuse of client assets. Over the past several years, these and a number of investigations by other regulatory authorities were resolved for monetary payments and certain other relief, including restitution payments. The Company may continue to resolve investigations in a similar manner. The Company believes adequate provision has been made in its consolidated financial statements for all probable and reasonably estimable losses for these sales practices related investigations or inquiries. Unclaimed Property Inquiries and Related Litigation In April 2012, MetLife, Inc., for itself and on behalf of entities including Metropolitan Life Insurance Company, reached agreements with representatives of the U.S. jurisdictions that were conducting audits of MetLife, Inc. and certain of its affiliates, including Metropolitan Life Insurance Company, for compliance with unclaimed property laws, and with state insurance regulators directly involved in a multistate targeted market conduct examination relating to claim-payment practices and compliance with unclaimed property laws. As of year-end 2012, the unclaimed property regulators of 39 states and the District of Columbia, and the insurance regulators of 48 states and the District of Columbia have accepted the respective agreements. Pursuant to the agreements, the Company will, among other things, take specified action to identify liabilities under life insurance, annuity, and retained asset contracts, to adopt specified procedures for seeking to contact and pay owners of the identified liabilities, and, to the extent that it is unable to locate such owners, to escheat these amounts with interest at a specified rate to the appropriate states. Additionally, the Company has agreed to accelerate the final date of certain industrial life policies and to escheat unclaimed benefits of such policies. Pursuant to the agreement to resolve the market conduct examination, MetLife, Inc. made a $40 million multistate examination payment, of which the Company's share is $33 million, to be allocated among the settling states. In the third quarter of 2011, Metropolitan Life Insurance Company incurred a $110 million after tax charge to increase reserves in connection with the Company's use of the U.S. Social Security Administration's Death Master File and similar databases to identify potential life insurance claims that had not been presented to the Company. In the first quarter of 2012, the Company recorded a $47 million after tax charge for the multistate examination payment and the expected acceleration of benefit payments to policyholders under the settlements. On September 20, 2012, the West Virginia Treasurer filed an action against Metropolitan Life Insurance Company in West Virginia state court (West Virginia ex rel. John D. Perdue v. Metropolitan Life Insurance Company, Circuit Court of Putnam County, Civil Action No. 12-C-295) alleging that the Company violated the West Virginia Uniform Unclaimed Property Act, seeking to compel compliance with the Act, and seeking payment of unclaimed property, interest, and penalties. On November 21, 2012 and January 9, 2013, the Treasurer filed substantially identical suits against NELICO and GALIC, respectively. At least one other jurisdiction is pursuing a similar market conduct examination concerning compliance with unclaimed property statutes. It is possible that other jurisdictions may pursue similar examinations, audits, or lawsuits and that such actions may result in additional payments to beneficiaries, additional escheatment of funds deemed abandoned under state laws, administrative penalties, interest, and/or further changes to the Company's procedures. The Company is not currently able to estimate these additional possible costs. Total Asset Recovery Services, LLC on behalf of the State of Minnesota v. MetLife, Inc., et. al. (District Court, County of Hennepin, MN, filed January 31, 2011). Alleging that MetLife, Inc. and another company violated the Minnesota Uniform Disposition of Unclaimed Property Act by failing to escheat to Minnesota benefits of 584 life insurance contracts, the Relator brought an action under the Minnesota False Claims Act seeking to recover damages on behalf of Minnesota. The action was sealed by court order until March 22, 2012. The Relator alleged that the aggregate damages, including statutory damages and treble damages, are $228 million. The Relator did not allocate this claimed damage amount between MetLife, Inc. and the other defendant. On December 31, 2012, the court granted motions by MetLife, Inc. and the other defendant to dismiss the action. F-152 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) Total Asset Recovery Services, LLC on behalf of the State of Florida v. MetLife, Inc., et. al. (Cir. Ct. Leon County, FL, filed October 27, 2010). Alleging that MetLife, Inc. and two other companies have violated the Florida Disposition of Unclaimed Property law by failing to escheat to Florida benefits of 9,022 life insurance contracts, the Relator has brought an action under the Florida False Claims act seeking to recover damages on behalf of Florida. The action has been sealed by court order until December 17, 2012. The relator alleges that the aggregate damages, including statutory damages and treble damages, are $3.2 billion. The Relator does not allocate this claimed damage amount between MetLife, Inc. and the other defendants. The Relator also bases its damage calculation in part on its assumption that the average face amount of the subject policies is $120,000. MetLife, Inc. strongly disputes this assumption, the Relator's alleged damages amounts, and other allegations in the complaint. On December 14, 2012, the Florida Attorney General apprised the court that the State of Florida declined to intervene in the action and noted that the allegations in the complaint ". . . are very similar (if not identical) to those raised in regulatory investigations of the defendants that predated the filing of the action" and that those regulatory investigations have been resolved. The Company intends to defend this action vigorously. Total Control Accounts Litigation Metropolitan Life Insurance Company is a defendant in a consolidated lawsuit related to its use of retained asset accounts, known as Total Control Accounts ("TCA"), as a settlement option for death benefits. Keife, et al. v. Metropolitan Life Insurance Company (D. Nev., filed in state court on July 30, 2010 and removed to federal court on September 7, 2010); and Simon v. Metropolitan Life Insurance Company. (D. Nev., filed November 3, 2011). These consolidated putative class action lawsuits raise breach of contract claims arising from Metropolitan Life Insurance Company's use of the TCA to pay life insurance benefits under the Federal Employees' Group Life Insurance program. On March 8, 2013, the court granted Metropolitan Life Insurance Company's motion for summary judgment. Plaintiffs have appealed that decision to the United States Court of Appeals for the Ninth Circuit. Various state regulators have also taken actions with respect to retained asset accounts. The New York Department of Financial Services issued a circular letter on March 29, 2012 stating that an insurer should only use a retained asset account when a policyholder or beneficiary affirmatively chooses to receive life insurance proceeds through such an account and providing for certain disclosures to a beneficiary, including that payment by a single check is an option. In connection with a market conduct exam, Metropolitan Life Insurance Company entered into a consent order with the Minnesota Department of Commerce regarding the Company's use of TCAs as a default option. The Company is unable to estimate the reasonably possible loss or range of loss arising from the TCA matters. Other Litigation Merrill Haviland, et al. v. Metropolitan Life Insurance Company (E.D. Mich., removed to federal court on July 22, 2011). This lawsuit was filed by 45 retired General Motors ("GM") employees against Metropolitan Life Insurance Company and the amended complaint includes claims for conversion, unjust enrichment, breach of contract, fraud, intentional infliction of emotional distress, fraudulent insurance acts, unfair trade practices, and ERISA claims based upon GM's 2009 reduction of the employees' life insurance coverage under GM's ERISA-governed plan. The complaint includes a count seeking class action status. Metropolitan Life Insurance Company is the insurer of GM's group life insurance plan and administers claims under the plan. According to the complaint, Metropolitan Life Insurance Company had previously provided plaintiffs with a "written guarantee" that their life insurance benefits under the GM plan would not be reduced for the rest of their lives. On June 26, F-153 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 2012, the district court granted Metropolitan Life Insurance Company's motion to dismiss the complaint. Plaintiffs have appealed that decision to the United States Court of Appeals for the Sixth Circuit. McGuire v. Metropolitan Life Insurance Company (E.D. Mich., filed February 22, 2012). This lawsuit was filed by the fiduciary for the Union Carbide Employees' Pension Plan and alleges that Metropolitan Life Insurance Company, which issued annuity contracts to fund some of the benefits the Plan provides, engaged in transactions that ERISA prohibits and violated duties under ERISA and federal common law by determining that no dividends were payable with respect to the contracts from and after 1999. On September 26, 2012, the court denied Metropolitan Life Insurance Company's motion to dismiss the complaint. The parties have begun discovery. Sales Practices Claims. Over the past several years, the Company has faced numerous claims, including class action lawsuits, alleging improper marketing or sales of individual life insurance policies, annuities, mutual funds or other products. Some of the current cases seek substantial damages, including punitive and treble damages and attorneys' fees. The Company continues to vigorously defend against the claims in these matters. The Company believes adequate provision has been made in its consolidated financial statements for all probable and reasonably estimable losses for sales practices matters. Sun Life Assurance Company of Canada v. Metropolitan Life Ins. Co. (Super. Ct., Ontario, October 2006). In 2006, Sun Life Assurance Company of Canada ("Sun Life"), as successor to the purchaser of Metropolitan Life Insurance Company's Canadian operations, filed this lawsuit in Toronto, seeking a declaration that Metropolitan Life Insurance Company remains liable for "market conduct claims" related to certain individual life insurance policies sold by Metropolitan Life Insurance Company and that have been transferred to Sun Life. Sun Life had asked that the court require Metropolitan Life Insurance Company to indemnify Sun Life for these claims pursuant to indemnity provisions in the sale agreement for the sale of Metropolitan Life Insurance Company's Canadian operations entered into in June of 1998. In January 2010, the court found that Sun Life had given timely notice of its claim for indemnification but, because it found that Sun Life had not yet incurred an indemnifiable loss, granted Metropolitan Life Insurance Company's motion for summary judgment. Both parties appealed. In September 2010, Sun Life notified Metropolitan Life Insurance Company that a purported class action lawsuit was filed against Sun Life in Toronto, Kang v. Sun Life Assurance Co. (Super. Ct., Ontario, September 2010), alleging sales practices claims regarding the same individual policies sold by Metropolitan Life Insurance Company and transferred to Sun Life. An amended class action complaint in that case was served on Sun Life, again without naming Metropolitan Life Insurance Company as a party. On August 30, 2011, Sun Life notified Metropolitan Life Insurance Company that a purported class action lawsuit was filed against Sun Life in Vancouver, Alamwala v. Sun Life Assurance Co. (Sup. Ct., British Columbia, August 2011), alleging sales practices claims regarding certain of the same policies sold by Metropolitan Life Insurance Company and transferred to Sun Life. Sun Life contends that Metropolitan Life Insurance Company is obligated to indemnify Sun Life for some or all of the claims in these lawsuits. The Company is unable to estimate the reasonably possible loss or range of loss arising from this litigation. Summary Putative or certified class action litigation and other litigation and claims and assessments against the Company, in addition to those discussed previously and those otherwise provided for in the Company's consolidated financial statements, have arisen in the course of the Company's business, including, but not limited to, in connection with its activities as an insurer, employer, investor, investment advisor and taxpayer. Further, state insurance regulatory authorities and other federal and state authorities regularly make inquiries and conduct investigations concerning the Company's compliance with applicable insurance and other laws and regulations. F-154 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) It is not possible to predict the ultimate outcome of all pending investigations and legal proceedings. In some of the matters referred to previously, very large and/or indeterminate amounts, including punitive and treble damages, are sought. Although in light of these considerations it is possible that an adverse outcome in certain cases could have a material effect upon the Company's financial position, based on information currently known by the Company's management, in its opinion, the outcomes of such pending investigations and legal proceedings are not likely to have such an effect. However, given the large and/or indeterminate amounts sought in certain of these matters and the inherent unpredictability of litigation, it is possible that an adverse outcome in certain matters could, from time to time, have a material effect on the Company's consolidated net income or cash flows in particular quarterly or annual periods. Insolvency Assessments Most of the jurisdictions in which the Company is admitted to transact business require insurers doing business within the jurisdiction to participate in guaranty associations, which are organized to pay contractual benefits owed pursuant to insurance policies issued by impaired, insolvent or failed insurers. These associations levy assessments, up to prescribed limits, on all member insurers in a particular state on the basis of the proportionate share of the premiums written by member insurers in the lines of business in which the impaired, insolvent or failed insurer engaged. Some states permit member insurers to recover assessments paid through full or partial premium tax offsets. Assets and liabilities held for insolvency assessments were as follows:
December 31, --------------- 2012 2011 ------- ------- (In millions) Other Assets: Premium tax offset for future undiscounted assessments....... $ 85 $ 63 Premium tax offsets currently available for paid assessments. 12 13 ------- ------- $ 97 $ 76 ======= ======= Other Liabilities: Insolvency assessments....................................... $ 136 $ 113 ======= =======
Commitments Leases In accordance with industry practice, certain of the Company's income from lease agreements with retail tenants are contingent upon the level of the tenants' revenues. Additionally, the Company, as lessee, has entered into various lease and sublease agreements for office space, information technology and other equipment. Future minimum rental and sublease income, and minimum gross rental payments relating to these lease agreements are as follows:
Gross Rental Sublease Rental Income Income Payments -------- -------- -------- (In millions) 2013....... $ 345 $ 18 $ 181 2014....... $ 331 $ 15 $ 143 2015....... $ 291 $ 15 $ 133 2016....... $ 220 $ 15 $ 119 2017....... $ 180 $ 15 $ 103 Thereafter. $ 750 $ 80 $ 847
F-155 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (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 $2.2 billion and $2.5 billion at December 31, 2012 and 2011, 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 $2.7 billion and $2.3 billion at December 31, 2012 and 2011, respectively. Commitments to Fund Bank Credit Facilities, Bridge Loans and Private Corporate Bond Investments The Company commits to lend funds under bank credit facilities, bridge loans and private corporate bond investments. The amounts of these unfunded commitments were $971 million and $986 million at December 31, 2012 and 2011, respectively. 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 ranging from less than $1 million to $800 million, with a cumulative maximum of $1.0 billion, while in other cases such limitations are not specified or applicable. Since certain of these obligations are not subject to limitations, the Company does not believe that it is possible to determine the maximum potential amount that could become due under these guarantees in the future. Management believes that it is unlikely the Company will have to make any material payments under these indemnities, guarantees, or commitments. In addition, the Company indemnifies its directors and officers as provided in its charters and by-laws. Also, the Company indemnifies its agents for liabilities incurred as a result of their representation of the Company's interests. Since these indemnities are generally not subject to limitation with respect to duration or amount, the Company does not believe that it is possible to determine the maximum potential amount that could become due under these indemnities in the future. The Company's recorded liabilities were $4 million at both December 31, 2012 and 2011, for indemnities, guarantees and commitments. F-156 Metropolitan Life Insurance Company (A Wholly-Owned Subsidiary of MetLife, Inc.) Notes to the Consolidated Financial Statements -- (Continued) 18. Related Party Transactions Service Agreements The Company has entered into various agreements with affiliates for services necessary to conduct its activities. Typical services provided under these agreements include personnel, policy administrative functions and distribution services. For certain agreements, charges are based on various performance measures or activity-based costing. The bases for such charges are modified and adjusted by management when necessary or appropriate to reflect fairly and equitably the actual incidence of cost incurred by the Company and/or affiliate. Expenses and fees incurred with affiliates related to these agreements, recorded in other expenses, were $2.6 billion, $2.8 billion and $2.7 billion for the years ended December 31, 2012, 2011 and 2010, respectively. Revenues received from affiliates related to these agreements recorded in universal life and investment-type product policy fees were $108 million, $94 million and $84 million for the years ended December 31, 2012, 2011 and 2010, respectively. Revenues received from affiliates related to these agreements recorded in other revenues were $113 million, $46 million and $34 million for the years ended December 31, 2012, 2011 and 2010, respectively. The Company also entered into agreements with affiliates to provide additional services necessary to conduct the affiliates' activities. Typical services provided under these agreements include management, policy administrative functions, investment advice and distribution services. Expenses incurred by the Company related to these agreements, included in other expenses, were $1.6 billion, $1.6 billion and $1.2 billion for the years ended December 31, 2012, 2011 and 2010, respectively, and were reimbursed to the Company by these affiliates. The Company had net payables to affiliates of $346 million and $238 million at December 31, 2012 and 2011, respectively, related to the items discussed above. These payables exclude affiliated reinsurance balances discussed in Note 6. See Notes 4, 8 and 12 for additional related party transactions. F-157 PART C OTHER INFORMATION ITEM 24. FINANCIAL STATEMENTS AND EXHIBITS (a) The financial statements and financial highlights comprising each of the Investment Divisions of the Separate Account and the report of Independent Registered Public Accounting Firm thereto are contained in the Separate Account's Annual Report and are included in the Statement of Additional Information. The financial statements of the Separate Account include: (1) Statements of Assets and Liabilities as of December 31, 2012 (2) Statements of Operations for the year ended December 31, 2012 (3) Statements of Changes in Net Assets for the years ended December 31, 2012 and 2011 (4) Notes to the Financial Statements (b) The consolidated financial statements of Metropolitan Life Insurance Company and subsidiaries and Independent Auditors' Report, are included in the Statement of Additional Information. The consolidated financial statements of Metropolitan Life Insurance Company and subsidiaries include: (1) Consolidated Balance Sheets as of December 31, 2012 and 2011 (2) Consolidated Statements of Operations for the years ended December 31, 2012, 2011 and 2010 (3) Consolidated Statements of Comprehensive Income for the years ended December 31, 2012, 2011 and 2010 (4) Consolidated Statements of Equity for the years ended December 31, 2012, 2011 and 2010 (4) Consolidated Statements of Cash Flows for the years ended December 31, 2012, 2011 and 2010 (5) Notes to the Consolidated Financial Statements (B) EXHIBITS (1) -- Resolution of the Board of Directors of Metropolitan Life establishing Separate Account E.(1) (2) -- Not applicable. (3)(a) -- Principal Underwriting Agreement with MetLife Investors Distribution Company (18) (b) -- Form of Metropolitan Life Insurance Company Sales Agreement.(13) (b)(i) -- Form of Retail Sales Agreement (MLIDC Retail Sales Agreement 7-1-05)(LTC). (13) (ii) -- Form of Enterprise Selling Agreement 02-10 (MetLife Investors Distribution Company Sales Agreement). (21) (iii) -- Form of Enterprise Selling Agreement 09-12 (MetLife Investors Distribution Company Sales Agreement). (26) (c) -- Participation Agreement--New England Zenith Fund. (3) (d) -- Participation Agreement--American Funds Insurance Series. (2) (d)(i) -- Participation Agreement--American Funds Insurance Series - Summary (22) (e) -- Participation Agreement--Met Investors Series Trust. (4) (3)(e)(i) First Amendment to the Participation Agreement. (23) (3)(e)(ii) Second Amendment to the Participation Agreement. (23) (3)(e)(iii) Amendment to each of the Participation Agreements currently in effect between Met Investors Series Trust, MetLife Advisers, LLC, MetLife Investors Distribution Company and Metropolitan Life Insurance Company, MetLife Insurance Company of Connecticut, MetLife Investors USA Insurance Company, MetLife Investors Insurance Company, First MetLife Investors Insurance Company, New England Life Insurance Company and General American Life Insurance Company effective April 30, 2010. (24) (f) -- Participation Agreement--Metropolitan Series Fund. (16) (3)(f)(i) Amendment to each of the Participation Agreements currently in effect between Metropolitan Series Fund, MetLife Advisers, LLC, MetLife Investors Distribution Company and Metropolitan Life Insurance Company, Metropolitan Tower Life Insurance Company, MetLife Insurance Company of Connecticut, MetLife Investors USA Insurance Company, MetLife Investors Insurance Company, First MetLife Investors Insurance Company, New England Life Insurance Company and General American Life Insurance Company effective April 30, 2010. (24) (4) -- Form of Deferred Annuity Contract. (2) (a) -- ROTH Individual Retirement Annuity Endorsement--Form ML- 446.2 (9/02). (5) (b) -- 401(a)/403(a) Plan Endorsement. Form ML-401.2(9/02). (5) (c) -- Individual Retirement Annuity Endorsement. Form ML-408.2 (9/02). (6) (d) -- SIMPLE Individual Retirement Annuity Endorsement. Form: ML-439.1 (9/02). (5) (e) -- Tax Sheltered Annuity Endorsement. Form ML-398.2 (9/02). (5) (f) -- Guaranteed Minimum Income Benefit Rider--Living Benefit ML-560-1 (03/03). (10) (g) -- Guaranteed Withdrawal Benefit Rider. (9) (h) -- Guaranteed Minimum Income Benefit Form ML-560-2 (5/05). (6) (i) -- Enhanced Dollar Cost Averaging Rider Form ML-510-1 (5/05). (6) (j) -- Non-Qualified Annuity Endorsement Form ML-NQ (11/04)-I. (9) (k) -- Guaranteed Withdrawal Benefit Endorsement. Form ML-GWB (11/05) E. (10) (l) -- Designated Beneficiary Non-Qualified Annuity Endorsement. Form ML-NQ (11/05)-I. (10) (m) -- Guaranteed Minimum Accumulation Benefit Rider. Form ML-670-1 (11/05). (10) (n) -- Guaranteed Withdrawal Benefit Rider. Form ML-670-2 (11/05) (Enhanced). (10) (o) -- Lifetime Withdrawal Guarantee Benefit Rider. Form MLI-690-1.24 (7/04). (12) (i) -- Lifetime Withdrawal Guarantee Benefit Rider - Specifications Form 8028-4 (11/05). (12) (p) -- Lifetime Guaranteed Withdrawal Benefit Rider ML-690-4 (4/08). (17) (i) -- Lifetime Guaranteed Withdrawal Benefit - Contract Schedule (ML-ELGWB (4-08)). (14) (q) -- Guaranteed Minimum Income Benefit Rider - Living Benefit - ML-560-4 (4/08). (17) (i) -- Guaranteed Minimum Income Benefit - Contract Schedule (ML-EGMIB(4-08)). (14) (r) -- Guaranteed Minimum Death Benefit (GMDB)Rider ML-640-1 (4/08). (17) (i) -- Guaranteed Minimum Death Benefit - Contract Schedule (ML-EDB(4-08)). (14) (5) -- Application Form for the Deferred Annuity. (2) (5)(a) -- Variable Annuity Application Preference Plus Select(R) PPS APP (06/06)LWG (04/07) with Arizona Free Look and: . Required Information PPS ADMIN (04/07) eF . Statement of Client Information SOCI-VA (04/07) eF . Compensation Disclosure Notice MPL 1651-000 COMPDISC-ADG (08/06) eF . Customer Privacy Notice ANN CPN(01/05) eF . Opting Out of Information Sharing ANN OPT OUT (01/05) eF. (15) (5)(b) -- Variable Annuity Application Preference Plus Select(R) Form PPS APP (04/08) GMDB (04/08). (19) (6)(a) -- Amended and Restated Charter of Metropolitan Life.(4) (b) -- Amended and Restated By-Laws of Metropolitan Life.(8) (7) -- Automatic Reinsurance Agreement between Metropolitian Life Insurance Company and Exeter Reassurance Company, LTD. effective December 1, 2004. Agreement No. 17258. (14) i. Amendment No. 1 as of May 1, 2005. (14) ii. Amendment No. 2 as of November 1, 2005 (14) iii. Amendment No. 3 as of June 12, 2006 (14) iv. Amendment No. 4 as of February 26, 2007 (14) v. Amendment No. 5 as of June 30, 2007 (14) vi. Amendment No. 6 as of July 16, 2007 (14) vii. Amendment No. 7, as of April 28, 2008 (25) viii. Amendment No. 8, as of July 1, 2008 (25) ix. Amendment No. 9 as of July 14, 2008 (25) x. Amendment No. 10 dated October 10, 2008, as of November 10, 2008 (25) xi. Amendment no. 11 as of February 20, 2009 (25) xii. Amendment No. 12 as of May 4, 2009 (25) xiii. Amendment No. 13 as of July 10, 2009 (25) xiv. Amendment No. 14 as of July 19, 2010 (25) xv. Amendment No. 15 as of December 31, 2010 (25) xvi. Amendment No. 16 as of April 29, 2011 (25) xii. Amendment No. 17 as of October 10, 2011 (25) xiii. Amendment No. 18 as of April 1, 2012 (27) xiv. Amendment No. 19 as of September 30, 2012 (27) xv. Amendment No. 20 as of July 1, 2012 (27) (8) -- Not applicable. (9) -- Opinion and consent of counsel as to the legality of the securities being registered.(2) (10) -- Consent of Independent Registered Public Accounting Firm. (28) (11) -- Not applicable. (12) -- Not applicable. (13) -- Powers of Attorney. (20)(28) ------------------ 1. Filed with Post-Effective Amendment No. 19 to Registration Statement No. 2-90380/811-4001 for Metropolitan Life Separate Account E on Form N-4 on February 27, 1996. As incorporated herein by reference. C-1 2. Filed with Pre-Effective Amendment No.1 to this Registration Statement on August 3, 2001. 3. Filed with Post-Effective Amendment No. 10 to Registration Statement No. 33-57320 for Metropolitan Life Separate Account UL on Form S-6 on September 18, 2000. As incorporated herein by reference. 4. Filed with Registration Statement No. 333-83716/811-4001 for Metropolitan Life Separate Account E on Form N-4 on March 5, 2002. As incorporated herein by reference. 5. Filed with Post-Effective Amendment No. 2 to this Registration Statement on April 10, 2003. 6. Filed with Post-Effective Amendment No. 7 to this Registration Statement on April 8, 2005. 7. Filed with Post-Effective Amendment No. 4 to this Registration Statement on April 20, 2004. 8. Filed with Amendment No. 16 to this Registration Statement No. 333- 52366/811-4001 for Metropolitan Life Separate Account E on Form N-4 on January 16, 2008. 9. Filed with Post-Effective Amendment No. 6 to this Registration Statement on May 18, 2004. 10. Filed with Post-Effective Amendment No. 8 to this Registration Statement on July 29, 2005. 11. Filed with Post-Effective Amendment No. 9 to this Registration Statement on October 14, 2005. 12. Filed with Post-Effective Amendment No. 12 to this Registration Statement on April 5, 2006. 13. Filed with Post-Effective Amendment No. 30 to Registration Statement Number 002-90380/811-4001 on for Metropolitan Life Insurance Company on Form N-4 on October 22, 2003. As incorporated herein by reference. 14. Filed with Post-Effective Amendment No. 18 to this Registration Statement on March 31, 2008. 15. Filed with Post Effective Amendment No. 15 to this Registration Statement on July 12, 2007. 16. Filed with Post-Effective Amendment No. 9 to Registration Statement 333-83716/811-4001 for Metropolitan Life Separate Account E on September 10, 2007. As incorporated herein by reference. 17. Filed with Post-Effective Amendment No. 17 to this Registration Statement on January 17, 2008. 18. Filed with Post-Effective Amendment No. 3 to Registration Statement No. 333-133675/811-07534 for Paragon Separate Account B on Form N-6 on February 6, 2008. As incorporated herein by reference. 19. Filed with Post-Effective Amendment No. 19 to this Registration Statement on April 17, 2008. 20. Filed with Post-Effective Amendment No. 24 to this Registration Statement on April 17, 2012. Powers of Attorney for Lulu C. Wang, Catherine R. Kinney, Alfred F. Kelly, Jr., Peter M. Carlson, Sylvia Mathews Burwell, Cheryl W. Grise, R. Glenn Hubbard, Steven A. Kandarian, John M. Keane, James M. Kilts, Hugh B. Price and Kenton J. Sicchitano. 21. Filed with Post-Effective Amendment No. 14 to Registration Statement File No. 333 83716 for Metropolitan Life Separate Account E on Form N-4 on April 13, 2010. As incorporated herein by reference. 22. Filed with Post Effective Amendment No. 15 to Registration Statement File No. 333-83716 for Metropolitan Life Separate Account E on Form N-4 on April 12, 2011. As incorporated herein by reference. 23. Filed with Post-Effective Amendment No. 2 to Registration Statement File No. 333-153109/811-04001 for Metropolitan Life Separate Account E on Form N-4 on June 26, 2009. As incorporated herein by reference. 24. Filed with Post-Effective Amendment No. 16 to Registration Statement File No. 333-83716/811-04001 for Metropolitan Life Separate Account E on Form N-4 on April 12, 2012. As incorporated herein by reference. 25. Filed with Post-Effective Amendment No. 3 to Registration Statement File No. 333-176654/811-04001 for Metropolitan Life Separate Account E on Form N-4 on April 12, 2012. As incorporated herein by reference. 26. Filed with Post-Effective Amendment No. 17 to Registration Statement File No. 333-83716/811-04001 for Metropolitan Life Separate Account E on Form N-4 on April 11, 2013. As incorporated herein by reference. 27. Filed with Post-Effective Amendment No. 12 to Registration Statement File No. 333-176654/811-04001 for Metropolitan Life Separate Account E on Form N-4 on April 11, 2013. As incorporated herein by reference. 28. Filed herewith, Power of Attorney for John C.R. Hele. C-2 ITEM 25. DIRECTORS AND OFFICERS OF DEPOSITOR
NAME, PRINCIPAL OCCUPATION AND BUSINESS ADDRESS POSITION AND OFFICES WITH DEPOSITOR ----------------------------------------------- ----------------------------------- Steven A. Kandarian Director, Chairman, President MetLife, Inc and Metropolitan Life and Chief Executive Officer Insurance Company 1095 Avenue of the Americas New York, NY 10036 Sylvia Mathews Burwell Director President, Wal-Mart Foundation Corporate Affairs 702 Southwest 8th Street Pole D-48 Bentonville, AR 72716 Cheryl W. Grise Director MetLife, Inc. and Metropolitan Life Insurance Company 200 Park Avenue New York, NY 10166 R. Glenn Hubbard Director Dean and Russell L. Carson Professor of Finance and Economics Graduate School of Business Columbia University Uris Hall- Rm 101 3022 Broadway New York, NY 10027-6902 John M. Keane Director Senior Managing Director Keane Advisors, LLC 2020 K Street, N.W. Washington, DC 10580 Alfred F. Kelly, Jr. Director CEO of the NY/NJ 2014 Super Bowl Host Committee Metlife Stadium One MetLife Stadium Drive East Rutherford, NJ 07073 James M. Kilts Director Founding Partner Centerview Capital 3 Greenwich Office Park, 2nd Floor Greenwich, CT 06831 Catherine R. Kinney Director MetLife, Inc, and Metropolitan Life Insurance Company 200 Park Avenue New York, NY 10166 Hugh B. Price Director Senior Fellow Brookings Institution 1775 Massachusetts Avenue, N.W. Washington, DC 20036 David Satcher Director Director of Satcher Health Leadership Institute and Center of Excellence on Health Disparities Morehouse School of Medicine 720 Westview Drive, S.W. Suite 238 Atlanta, GA 30310-1495 Kenton J. Sicchitano Director MetLife, Inc, and Metropolitan Life Insurance Company 200 Park Avenue New York, NY 10166 Lulu C. Wang Director Chief Executive Officer Tupelo Capital Management LLC 340 Modison Avenue 19th Floor New York, NY 10173
Set forth below is a list of certain principal officers of MetLife. The principal business address of each officer of MetLife is 200 Park Avenue, New York, New York 10166
NAME POSITION WITH METLIFE ------------------------ --------------------------------------------------------- Steven A. Kandarian Director, Chairman, President and Chief Executive Officer Christopher G. Townsend President, Asia Michel A. Khalaf President, Europe/Middle East/Africa Division William J. Wheeler President, The Americas John C.R. Hele Executive Vice President and Chief Financial Officer Peter M. Carlson Executive Vice President and Chief Accounting Officer Steven J. Goulart Executive Vice President and Chief Investment Officer Ricardo A. Anzaldua Executive Vice President and General Counsel Frans Hijkoop Executive Vice President and Chief Human Resources Officer Beth M. Hirschhorn Executive Vice President of Global Brand, Marketing and Communications Maria R. Morris Executive Vice President, Global Employee Benefits Martin J. Lippert Executive Vice President, Global Technology and Operations
C-3 ITEM 26. PERSONS CONTROLLED BY OR UNDER COMMON CONTROL WITH THE DEPOSITOR OR REGISTRANT. The registrant is a separate account of Metropolitan Life Insurance Company under the New York Insurance law. Under said law the assets allocated to the separate account are the property of Metropolitan Life Insurance Company, which is a wholly-owned subsidiary of MetLife, Inc. The following outline indicates those persons who are controlled by or under common control with Metropolitan Life Insurance Company: C-4 ORGANIZATIONAL STRUCTURE OF METLIFE, INC. AND SUBSIDIARIES AS OF DECEMBER 31, 2012 The following is a list of subsidiaries of MetLife, Inc. updated as of December 31, 2012. Those entities which are listed at the left margin (labeled with capital letters) are direct subsidiaries of MetLife, Inc. Unless otherwise indicated, each entity which is indented under another entity is a subsidiary of that other entity and, therefore, an indirect subsidiary of MetLife, Inc. Certain inactive subsidiaries have been omitted from the MetLife, Inc. organizational listing. The voting securities (excluding directors' qualifying shares, if any) of the subsidiaries listed are 100% owned by their respective parent corporations, unless otherwise indicated. The jurisdiction of domicile of each subsidiary listed is set forth in the parenthetical following such subsidiary. A. MetLife Group, Inc. (NY) B. MetLife Bank, National Association (USA) 1. MetLife Home Loans LLC (DE) C. Exeter Reassurance Company, Ltd. (Cayman Islands) D. Metropolitan Tower Life Insurance Company (DE) 1. EntreCap Real Estate II LLC (DE) a) PREFCO Dix-Huit LLC (CT) b) PREFCO X Holdings LLC (CT) c) PREFCO Ten Limited Partnership (CT) - a 99.9% limited partnership interest of PREFCO Ten Limited Partnership is held by EntreCap Real Estate II LLC and 0.1% general partnership is held by PREFCO X Holdings LLC. d) PREFCO Vingt LLC (CT) e) PREFCO Twenty Limited Partnership (CT) - a 99% limited partnership interest of PREFCO Twenty Limited Partnership is held by EntreCap Real Estate II LLC and 1% general partnership is held by PREFCO Vingt LLC. 2. Plaza Drive Properties, LLC (DE) 3. MTL Leasing, LLC (DE) a) PREFCO IX Realty LLC (CT) b) PREFCO XIV Holdings LLC (CT) c) PREFCO Fourteen Limited Partnership (CT) - a 99.9% limited partnership interest of PREFCO Fourteen Limited Partnership is held by MTL Leasing, LLC and 0.1% general partnership is held by PREFCO XIV Holdings LLC. d) 1320 Venture LLC (DE) e) 1320 GP LLC (DE) f) 1320 Owner LP (DE) - a 99.9% limited partnership of 1320 Owner LP is held by 1320 Venture LLC and 0.1% general partnership is held by 1320 GP LLC. 4. MetLife Reinsurance Company of Delaware (DE) E. MetLife Chile Inversiones SpA (Chile) - 70.4345328853% of MetLife Chile Inversiones SpA is owned by MetLife, Inc., 26.6071557459% by American Life Insurance Company ("ALICO"), 2.9583113284% is owned by Inversiones MetLife Holdco Dos Limitada and 0.0000000404% is owned by Natilportem Holdings, Inc. 1. MetLife Chile Seguros de Vida S.A. (Chile) - 99.9969% of MetLife Chile Seguros de Vida S.A. is held by MetLife Chile Inversiones SpA and 0.0031% by International Technical and Advisory Services Limited. a) MetLife Chile Administradora de Mutuos Hipotecarios S.A. (Chile) - 99.99% of MetLife Chile Administradora de Mutuos Hipotecarios S.A. is owned by MetLife Chile Seguros de Vida S.A. and 0.01% is owned by MetLife Chile Inversiones SpA. 2. Legal Chile S.A. (Chile) - 51% of Legal Chile S.A. is owned by MetLife Chile Inversiones SpA and the remaining interest is owned by a third party. a) Legalgroup S.A. (Chile) - 99% of Legalgroup S.A. is owned by Legal Chile S.A. and the remaining interest is owned by a third party. F. Metropolitan Life Seguros de Vida S.A. (Uruguay) - 99.9994% of Metropolitan Life Seguros de Vida S.A. is owned by MetLife, Inc. and 0.0006% is owned by Oscar Schmidt. G. MetLife Securities, Inc. (DE) H. Enterprise General Insurance Agency, Inc. (DE) 1 I. Metropolitan Property and Casualty Insurance Company (RI) 1. Metropolitan General Insurance Company (RI) 2. Metropolitan Casualty Insurance Company (RI) 3. Metropolitan Direct Property and Casualty Insurance Company (RI) 4. Met P&C Managing General Agency, Inc. (TX) 5. MetLife Auto & Home Insurance Agency, Inc. (RI) 6. Metropolitan Group Property and Casualty Insurance Company (RI) a) Metropolitan Reinsurance Company (U.K.) Limited (United Kingdom) 7. Metropolitan Lloyds, Inc. (TX) a) Metropolitan Lloyds Insurance Company of Texas (TX)- Metropolitan Lloyds Insurance Company of Texas, an affiliated association, provides automobile, homeowner and related insurance for the Texas market. It is an association of individuals designated as underwriters. Metropolitan Lloyds, Inc., a subsidiary of Metropolitan Property and Casualty Insurance Company, serves as the attorney-in-fact and manages the association. 8. Economy Fire & Casualty Company (IL) a) Economy Preferred Insurance Company (IL) b) Economy Premier Assurance Company (IL) J. MetLife Investors Insurance Company (MO) K. First MetLife Investors Insurance Company (NY) L. Walnut Street Securities, Inc. (MO) M. Newbury Insurance Company, Limited (Bermuda) N. MetLife Investors Group, Inc. (DE) 1. MetLife Investors Distribution Company (MO) 2. MetLife Advisers, LLC (MA) 2 O. MetLife International Holdings, Inc. (DE) 1. MetLife Mexico Cares, S.A. de C.V. (Mexico) a) Fundacion MetLife Mexico, A.C. (Mexico) 2. Natiloportem Holdings, Inc. (DE) a) Servicios Administrativos Gen, S.A. de C.V. (Mexico) i) MLA Comercial, S.A. de C.V. (Mexico) 99% is owned by Servicios Administrativos Gen, S.A. de C.V. and 1% is owned by MetLife Mexico Cares, S.A. de C.V. ii) MLA Servicios, S.A. de C.V. (Mexico) 99% is owned by Servicios Administrativos Gen, S.A. de C.V. and 1% is owned by MetLife Mexico Cares, S.A. de C.V. 3. MetLife India Insurance Company Limited (India)- 26% is owned by MetLife International Holdings, Inc. and 74% is owned by third parties. 4. Metropolitan Life Insurance Company of Hong Kong Limited (Hong Kong)- 99.99935% is owned by MetLife International Holdings, Inc. and 0.00065% is owned by Natiloporterm Holdings, Inc. 5. MetLife Seguros de Vida S.A. (Argentina)- 96.7372% is owned by MetLife International Holdings, Inc. and 3.2628% is owned by Natiloportem Holdings, Inc. 6. Metropolitan Life Seguros e Previdencia Privada S.A. (Brazil)- 66.6617540% is owned by MetLife International Holdings, Inc., 33.3382457% is owned by MetLife Worldwide Holdings, Inc. and 0.0000003% is owned by Natiloportem Holdings, Inc. 7. MetLife Global, Inc. (DE) 8. MetLife Administradora de Fundos Multipatrocinados Ltda. (Brazil) - 99.999998% of MetLife Administradora de Fundos Multipatrocinados Ltda. is owned by MetLife International Holdings, Inc. and 0.000002% by Natiloportem Holdings, Inc. 9. MetLife Services Limited (United Kingdom) 10. MetLife Seguros de Retiro S.A. (Argentina) - 96.8488% is owned by MetLife International Holdings, Inc. and 3.1512% is owned by Natiloportem Holdings, Inc. 11. Best Market S.A. (Argentina) - 5% of the shares are held by Natiloportem Holdings, Inc. and 95% is owned by MetLife International Holdings Inc. 12. Compania Previsional MetLife S.A. (Brazil) - 95.46% is owned by MetLife International Holdings, Inc. and 4.54% is owned by Natiloportem Holdings, Inc. a) MetLife Servicios S.A. (Argentina) - 18.87% of the shares of MetLife Servicios S.A. are held by Compania Previsional MetLife S.A., 79.88% is owned by MetLife Seguros de Vida S.A., 0.99% is held by Natiloportem Holdings, Inc. and 0.26% is held by MetLife Seguros de Retiro S.A. 13. MetLife Worldwide Holdings, Inc. (DE) a) MetLife Direct Co., LTD. (Japan) b) MetLife Limited (Hong Kong) 14. MetLife International Limited, LLC (DE) 15. MetLife Planos Odontologicos Ltda. (Brazil) - 99.999% is owned by MetLife International Holdings, Inc. and 0.001% is owned by Natiloportem Holdings, Inc. 16. MetLife Ireland Holdings One Limited (Ireland) a) MetLife Global Holdings Corporation S.A. de C.V. (Mexico) - 98.9% is owned by MetLife Ireland Holdings One Limited and 1.1% is owned by MetLife International Limited, LLC. i) MetLife Ireland Treasury Limited (Ireland) a) MetLife General Insurance Limited (Australia) b) MetLife Insurance Limited (Australia) 1) The Direct Call Centre PTY Limited (Australia) 2) MetLife Investments PTY Limited (Australia) aa) MetLife Insurance and Investment Trust (Australia) - MetLife Insurance and Investment Trust is a trust vehicle, the trustee of which is MetLife Investments PTY Limited ("MIPL"). MIPL is a wholly owned subsidiary of MetLife Insurance Limited. ii) Metropolitan Global Management, LLC (DE) - 99.7% is owned by MetLife Global Holdings Corporation, S.A. de C.V. and 0.3% is owned by MetLife International Holdings, Inc. a) MetLife Pensiones Mexico S.A. (Mexico)- 97.4738% is owned by Metropolitan Global Management, LLC and 2.5262% is owned by MetLife International Holdings, Inc. b) MetLife Mexico Servicios, S.A. de C.V. (Mexico) - 98% is owned by Metropolitan Global Management, LLC and 2% is owned by MetLife International Holdings, Inc. c) MetLife Mexico S.A. (Mexico)- 99.050271% is owned by Metropolitan Global Management, LLC and 0.949729% is owned by MetLife International Holdings, Inc. 1) MetLife Afore, S.A. de C.V. (Mexico)- 99.99% is owned by MetLife Mexico S.A. and 0.01% is owned by MetLife Pensiones Mexico S.A. aa) Met1 SIEFORE, S.A. de C.V. (Mexico)- 99.99% is owned by MetLife Afore, S.A. de C.V. and 0.01% is owned by MetLife Mexico S.A. bb) Met2 SIEFORE, S.A. de C.V. (Mexico)- 99.99% is owned by MetLife Afore, S.A. de C.V. and 0.01% is owned by MetLife Mexico S.A. cc) MetA SIEFORE Adicional, S.A. de C.V. (Mexico)- 99.99% is owned by MetLife Afore, S.A. de C.V. and 0.01% is owned by MetLife Mexico S.A. dd) Met3 SIEFORE Basica, S.A. de C.V. (Mexico) - 99.99% is owned by MetLife Afore, S.A. de C.V. and 0.01% is owned by MetLife Mexico S.A. ee) Met4 SIEFORE, S.A. de C.V. (Mexico) - 99.99% is owned by MetLife Afore, S.A. de C.V. and 0.01% is owned by MetLife Mexico S.A. ff) Met5 SIEFORE, S.A. de C.V. (Mexico) - 99.99% is owned by MetLife Afore, S.A. de C.V. and 0.01% is owned by MetLife Mexico S.A. 2) ML Capacitacion Comercial S.A. de C.V. (Mexico) - 99% is owned by MetLife Mexico S.A. and 1% is owned by MetLife Mexico Cares, S.A. de C.V. d) MetLife Saengmyoung Insurance Co. Ltd. (also known as MetLife Insurance Company of Korea Limited (South Korea)- 14.64% is owned by MetLife Mexico, S.A. and 85.36% is owned by Metropolitan Global Management, LLC. 17. Inversiones Metlife Holdco Dos Limitada (Chile)- 99% is owned by Metlife International Holdings, Inc. and 1% is owned by Natiloportem Holdings, Inc. 18. MetLife Asia Pacific Limited (Hong Kong) P. Metropolitan Life Insurance Company (NY) 1. 334 Madison Euro Investments, Inc. (DE) 2. St. James Fleet Investments Two Limited (Cayman Islands) a) Park Twenty Three Investments Company (United Kingdom) i) Convent Station Euro Investments Four Company (United Kingdom) aa) OMI MLIC Investments Limited (Cayman Islands) 3. CRB Co., Inc. (MA) 4. MLIC Asset Holdings II LLC (DE) a) El Conquistador MAH II LLC (DE) 3 5. CC Holdco Manager (DE) 6. Alternative Fuel I, LLC (DE) 7. Transmountain Land & Livestock Company (MT) 8. MetPark Funding, Inc. (DE) 9. HPZ Assets LLC (DE) 10. Missouri Reinsurance, Inc. (Cayman Islands) 11. Metropolitan Tower Realty Company, Inc. (DE) a) Midtown Heights, LLC (DE) 12. MetLife Real Estate Cayman Company (Cayman Islands) 13. MetCanada Investments Ltd. (Canada) 14. MetLife Private Equity Holdings, LLC (DE) 15. 23rd Street Investments, Inc. (DE) a) MetLife Capital Credit L.P. (DE)- 1% General Partnership interest is held by 23rd Street Investments, Inc. and 99% Limited Partnership interest is held by Metropolitan Life Insurance Company. b) MetLife Capital, Limited Partnership (DE)- 1% General Partnership interest is held by 23rd Street Investments, Inc. and 99% Limited Partnership interest is held by Metropolitan Life Insurance Company. 16. Hyatt Legal Plans, Inc. (DE) a) Hyatt Legal Plans of Florida, Inc. (FL) 17. MetLife Holdings, Inc. (DE) a) MetLife Credit Corp. (DE) b) MetLife Funding, Inc. (DE) 4 18. MetLife Investments Asia Limited (Hong Kong) 19. MetLife Investments Limited (United Kingdom)- 23rd Street Investments, Inc. holds one share of MetLife Investments Limited. 20. MetLife Latin America Asesorias e Inversiones Limitada (Chile)- 23rd Street Investments, Inc. holds 0.01% of MetLife Latin America Asesorias e Inversiones Limitada. 21. New England Life Insurance Company (MA) a) New England Securities Corporation (MA) 22. General American Life Insurance Company (MO) a) GALIC Holdings LLC (DE) 5 23. Corporate Real Estate Holdings, LLC (DE) 24. Ten Park SPC (Cayman Islands) - 1% voting control of Ten Park SPC is held by 23rd Street Investments, Inc. 25. MetLife Tower Resources Group, Inc. (DE) 26. Headland-Pacific Palisades, LLC (CA) 27. Headland Properties Associates (CA) - 1% is owned by Headland-Pacific Palisades, LLC and 99% is owned by Metropolitan Life Insurance Company. 28. WFP 1000 Holding Company GP, LLC (DE) 29. White Oak Royalty Company (OK) 30. 500 Grant Street GP LLC (DE) 31. 500 Grant Street Associates Limited Partnership (CT) - 99% of 500 Grant Street Associates Limited Partnership is held by Metropolitan Life Insurance Company and 1% by 500 Grant Street GP LLC. 32. MetLife Canada/MetVie Canada (Canada) 33. MetLife Retirement Services LLC (NJ) a) MetLife Investment Funds Services LLC (NJ) i) MetLife Associates LLC (DE) 34. Euro CL Investments LLC (DE) 35. MEX DF Properties, LLC (DE) 36. MSV Irvine Property, LLC (DE) - 4% of MSV Irvine Property, LLC is owned by Metropolitan Tower Realty Company, Inc. and 96% is owned by Metropolitan Life Insurance Company 37. MetLife Properties Ventures, LLC (DE) a) Citypoint Holdings II Limited (United Kingdom) 38. Housing Fund Manager, LLC (DE) a) MTC Fund I, LLC (DE) 0.01% of MTC Fund I, LLC is held by Housing Fund Manager, LLC. - Housing Fund Manager, LLC is the managing member LLC and the remaining interests are held by a third party member. b) MTC Fund II, LLC (DE) - 0.01% of MTC Fund II, LLC is held by Housing Fund Manager, LLC. - Housing Fund Manager, LLC is the managing member LLC and the remaining interests are held by a third party member. c) MTC Fund III, LLC (DE) - 0.01% of MTC Fund III, LLC is held by Housing Fund Manager, LLC. - Housing Fund Manager, LLC is the managing member LLC and the remaining interests are held by a third party member. 39. MLIC Asset Holdings LLC (DE) 40. 85 Broad Street Mezzanine LLC (DE) a) 85 Broad Street LLC (DE) 41. The Building at 575 Fifth Avenue Mezzanine LLC (DE) a) The Building at 575 Fifth LLC (DE) 42. CML Columbia Park Fund I, LLC (DE)- 10% of membership interest is held by MetLife Insurance Company of Connecticut and 90% membership interest is held by Metropolitan Life Insurance Company. 43. Para-Met Plaza Associates (FL)- 75% of the General Partnership is held by Metropolitan Life Insurance Company and 25% of the General Partnership is held by Metropolitan Tower Realty Company, Inc. 44. MLIC CB Holdings LLC (DE) 45. Met II Office Mezzanine LLC (FL) - 10.4167% of the membership interest is owned by Metropolitan Tower Life Insurance Company and 89.5833% is owned by Metropolitan Life Insurance Company. a) Met II Office, LLC (FL) 46. The Worthington Series Trust (DE) 47. MetLife CC Member, LLC (DE) - 63.415% of MetLife CC Member, LLC is held by Metropolitan Life Insurance Company, 17.073% by MetLife Investors USA Insurance Company, 14.634% by MetLife Insurance Company of Connecticut and 4.878% by General American Life Insurance Company. 48. Oconee Hotel Company, LLC (DE) 49. Oconee Land Company, LLC (DE) a) Oconee Land Development Company, LLC (DE) b) Oconee Golf Company, LLC (DE) c) Oconee Marina Company, LLC (DE) 50. 1201 TAB Manager, LLC (DE) 51. MetLife 1201 TAB Member, LLC (DE) - 66.67% of MetLife 1201 TAB Member, LLC is owned by Metropolitan Life Insurance Company, 18.18% is owned by MetLife Investors USA Insurance Company, 12.12% is owned by MetLife Insurance Company of Connecticut and 3.03% is owned by Metropolitan Property and Casualty Insurance Company. 52. MetLife LHH Member, LLC (DE) - 69.23% of MetLife LHH Member, LLC is owned by Metropolitan Life Insurance Company, 19.78% is owned by MetLife Investors USA Insurance Company and 10.99% is owned by New England Life Insurance Company. 53. Ashton Southend GP, LLC (DE) 54. Tremont Partners, LP (DE) - 99.9% LP interest of Tremont Partners, LP is owned by Metropolitan Life Insurance Company and 0.1% GP interest is owned by Ashton Southend GP, LLC. 55. Riverway Residential, LP (DE) - 99.9% LP interest of Riverway Residential, LP is owned by Metropolitan Life Insurance Company and 0.1% GP interest is owned by Metropolitan Tower Realty Company, Inc. 56. 10420 McKinley Partners, LP (DE) - 99.9% LP interest of 10420 McKinley Partners, LP is owned by Metropolitan Life Insurance Company and 0.1% GP interest is owned by Metropolitan Tower Realty Company, Inc. 57. Ardrey Kell Townhomes, LLC (DE) 58. Boulevard Residential, LLC (DE) 59. 465 N. Park Drive, LLC (DE) Q. MetLife Capital Trust IV (DE) R. MetLife Insurance Company of Connecticut (CT) - 86.72% is owned by MetLife, Inc. and 13.28% by MetLife Investors Group, Inc. 1. MetLife Property Ventures Canada ULC (Canada) 2. Pilgrim Alternative Investments Opportunity Fund III Associates, LLC (CT) - 67% is owned by MetLife Insurance Company of Connecticut and 33% is owned by third party. 3. Metropolitan Connecticut Properties Ventures, LLC (DE) 4. MetLife Canadian Property Ventures LLC (NY) 5. Euro TI Investments LLC (DE) 6. Greenwich Street Investments, L.L.C. (DE) a) Greenwich Street Capital Offshore Fund, Ltd. (Virgin Islands) b) Greenwich Street Investments, L.P. (DE) 7. One Financial Place Corporation (DE) - 100% is owned in the aggregate by MetLife Insurance Company of Connecticut. 8. Plaza LLC (CT) a) Tower Square Securities, Inc. (CT) 9. TIC European Real Estate LP, LLC (DE) 10. MetLife European Holdings, LLC (DE) a) MetLife Assurance Limited (United Kingdom) 11. Travelers International Investments Ltd. (Cayman Islands) 12. Euro TL Investments LLC (DE) 13. Corrigan TLP LLC (DE) 14. TLA Holdings LLC (DE) a) The Prospect Company (DE) 15. TRAL & Co. (CT) - TRAL & Co. is a general partnership. Its partners are MetLife Insurance Company of Connecticut and Metropolitan Life Insurance Company. 16. MetLife Investors USA Insurance Company (DE) a) MetLife Renewables Holding, LLC (DE) i) Greater Sandhill I, LLC (DE) 17. TLA Holdings II LLC (DE) 18. TLA Holdings III LLC (DE) 19. MetLife Greenstone Southeast Venture, LLC (DE) - 95% of MetLife Greenstone Southeast Venture, LLC is owned by MetLife Insurance Company of Connecticut and 5% is owned by Metropolitan Connecticut Properties Ventures, LLC. a) MLGP Lakeside, LLC (DE) S. MetLife Reinsurance Company of South Carolina (SC) T. MetLife Investment Management, LLC (DE) U. MetLife Standby I, LLC (DE) 1. MetLife Exchange Trust I (DE) V. MetLife Services and Solutions, LLC (DE) 1. MetLife Solutions Pte. Ltd. (Singapore) a) MetLife Services East Private Limited (India) b) MetLife Global Operations Support Center Private Limited (India) - 99.99999% is owned by MetLife Solutions Pte. Ltd. and 0.00001% is owned by Natiloportem Holdings, Inc. W. SafeGuard Health Enterprises, Inc. (DE) 1. MetLife Health Plans, Inc. (DE) 2. SafeGuard Health Plans, Inc. (CA) 3. SafeHealth Life Insurance Company (CA) 4. SafeGuard Health Plans, Inc. (FL) 5. SafeGuard Health Plans, Inc. (NV) 6. SafeGuard Health Plans, Inc. (TX) X. MetLife Capital Trust X (DE) Y. Cova Life Management Company (DE) Z. MetLife Reinsurance Company of Charleston (SC) AA. MetLife Reinsurance Company of Vermont (VT) AB. Delaware American Life Insurance Company (DE) 1. GBN, LLC (DE) AC. Federal Flood Certification LLC (TX) AD. American Life Insurance Company (ALICO) (DE) 1. MetLife ALICO Life Insurance K.K. (Japan) a) Nagasaki Operation Yugen Kaisha (Japan) b) Communication One Kabushiki Kaisha (Japan) c) Financial Learning Kabushiki Kaisha (Japan) 2. MetLife Global Holding Company I GmbH (Swiss I) (Switzerland) a) MetLife Global Holding Company II GmbH (Swiss II) (Switzerland) 1) MetLife EU Holding Company Limited (Ireland) - 18.234% of MetLife EU Holding Company Limited is owned by ALICO and the remaining interest is owned by MetLife Global Holding Company II GmbH. aa) MetLife Europe Limited (Ireland) ii. MetLife Pension Trustees Limited (United Kingdom) bb) Agenvita S.r.l. (Italy) cc) MetLife Europe Insurance Limited (Ireland) dd) MetLife Europe Services Limited (Ireland) ee) MetLife Insurance Limited (United Kingdom) ff) MetLife Limited (United Kingdom) gg) MetLife Services, Sociedad Limitada (Spain) hh) MetLife Insurance S.A./NV (Belgium) - 99.99999% of MetLife Insurance S.A./NV is owned by MetLife EU Holding Company Limited and 0.00001% is owned by Natilportem Holdings, Inc. 2) MetLife S.A. (France) aa) Hestis S.A.(France) - 66.06% of Hestis S.A. is owned by ALICO and the remaining interests are owned by third parties. bb) MetLife Solutions S.A.S. (France) 3. Pharaonic American Life Insurance Company (Egypt) - 84.125% of Pharaonic American Life Insurance Company is owned by ALICO and the remaining interests are owned by third parties. 4. MetLife Holdings (Cyprus) Limited (Cyprus) 5. ALICO Limited (Nigeria) 6. American Life Limited (Nigeria) 7. American Life Insurance Company (Pakistan) Ltd. (Pakistan) - 81.96% of American Life Insurance Company (Pakistan) Ltd. is owned by ALICO and the remaining interests are owned by third parties. 8. MetLife Emeklilik ve Hayat A.S. (Turkey) - 99.972% of MetLife Emeklilik ve Hayat A.S. is owned by ALICO and the remaining interests are owned by third parties. 9. ALICO Zhivotozastrahovat elno Druzestvo EAD (Bulgaria) 10. Amcico pojist'ovna a.s. (Czech Republic) (a) Metlife pojist'ovna a.s. (Czech Republic) 11. American Life Insurance Company (Cyprus) Limited (Cyprus) 12. MetLife Alico Life Insurance Company S.A. (Greece) a) ALICO Mutual Fund Management Company (Greece) - 90% of ALICO Mutual Fund Management Company is owned by MetLife Alico Life Insurance Company S.A. (Greece) and the remaining interests are owned by third parties. 13. AHICO First American Hungarian Insurance Company (Elso Amerikai-Magyar Biztosito) Zrt. (Hungary) a) First Hungarian-American Insurance Agency Limited (Hungary) b) Metlife Biztosito Zrt. (Hungary) 14. AMPLICO Life-First American Polish Life Insurance & Reinsurance Company, S.A. (Poland) a) Amplico Services Sp z.o.o. (Poland) b) AMPLICO Towartzystwo Funduszky Inwestycyjnych, S.A. (Poland) c) AMPLICO Powszechne Towartzystwo Emerytalne S.A. (Poland) - 50% of AMPLICO Powszechne Towarzystwo Emerytalne S.A. is owned by AMPLICO Life-First American Polish Life Insurance & Reinsurance Company, S.A. and the remaining 50% is owned by ALICO. 15. ALICO Asigurari Romania S.A. (Romania) - 99.99999726375% of ALICO Asigurari Romania S.A. is owned by American Life Insurance Company and the remaining 0.000001273625% is owned by International Technical and Advisory Services Limited. a) ALICO Societate de Administrare a unui Fond de Pensii Administrat Privat S.A. (Romania) - 99.9748% of ALICO Societate de Administrare a unui Fond de Pensii Administrat Privat S.A. is owned by ALICO Asigurari Romania S.A. and 0.0252% is owned by AMPLICO Services Sp z.o.o. b) Metropolitan Training and Consulting S.R.L. (Romania) c) Metropolitan Life Asigurari S.A. (Romania) - 99.9999% of Metropolitan Life Asigurari S.A. is owned by ALICO Asigurari Romania S.A. and 0.0001% is owned by International Technical and Advisory Services Limited. 16. International Investment Holding Company Limited (Russia) 17. ALICO European Holdings Limited (Ireland) a) ZAO Master D (Russia) i) ZAO ALICO Insurance Company (Russia) - 51% of ZAO ALICO Insurance Company is owned by ZAO Master D and 49% is owned by ALICO. 18. MetLife Akcionarska Drustvoza za Zivotno Osiguranje (Serbia) - 99.96% of MetLife Akcionarska Drustvoza za Zivotno Osiguranje is owned by ALICO and the remaining 0.04% is owned by International Technical and Advisory Services Limited. 19. MetLife AMSLICO poist'ovna a.s. (Slovakia) a) ALICO Services Central Europe s.r.o. (Slovakia) b) ALICO Funds Central Europe sprav. spol., a.s. (Slovakia) 20. ALICO Gestora de Fondos y Planos de Pensiones S.A. (Spain) 21. ALICO Management Services Limited (United Kingdom) 22. ZEUS Administration Services Limited (United Kingdom) 23. ALICO Trustees Ltd. (United Kingdom) - 50% of ALICO Trustees (UK) Ltd. is owned by ALICO and the remaining interest is owned by International Technical and Advisory Services Limited. 24. PJSC ALICO Ukraine (Ukraine) - 99.9990% of PJSC ALICO Ukraine is owned by ALICO 0.0005% is owned by International Technical and Advisory Services Limited and the remaining 0.0005% is owned by Borderland Investment Limited. 25. Borderland Investment Limited (USA-Delaware) a) ALICO Hellas Single Member Limited Liability Company (Greece) 26. International Technical and Advisory Services Limited (USA-Delaware) 27. ALICO Operations Inc. (USA-Delaware) a) ALICO Asset Management Corp. (Japan) 28. ALICO Compania de Seguros de Retiro, S.A. (Argentina) - 90% of ALICO Compania de Seguros de Retiro, S.A. is owned by ALICO and the remaining interest by International Technical & Advisory Services. 29. ALICO Compania de Seguros, S.A. (Argentina) - 90% of ALICO Compania de Seguros, S.A. is owned by ALICO and the remaining interest by International Technical & Advisory Services. 30. MetLife Colombia Seguros de Vida S.A. (Colombia) - 94.989997% of MetLife Colombia Seguros de Vida S.A. is owned by ALICO, 5.01% is owned by International Technical and Advisory Services Limited and the remaining interests are owned by third parties. 31. ALICO Mexico Compania de Seguros de Vida, S.A. de C.V. (Mexico) - 99.999998% of ALICO Mexico Compania de Seguros de Vida, SA de CV is owned by ALICO and 0.000002% is owned by International Technical and Advisory Services Limited. 32. MetLife Seguros de Vida, S.A. (Uruguay) 33. ALICO Properties, Inc. (USA-Delaware) - 51% of ALICO Properties, Inc. is owned by ALICO and the remaining interests are owned by third parties. a) Global Properties, Inc. (USA-Delaware) 34. Alpha Properties, Inc. (USA-Delaware) 35. Beta Properties, Inc. (USA-Delaware) 36. Delta Properties Japan, Inc. (USA-Delaware) 37. Epsilon Properties Japan, Inc. (USA-Delaware) 38. Iris Properties, Inc. (USA-Delaware) 39. Kappa Properties Japan, Inc. (USA-Delaware) 1) The voting securities (excluding directors' qualifying shares, if any) of each subsidiary shown on the organizational chart are 100% owned by their respective parent corporation, unless otherwise indicated. 2) The Metropolitan Money Market Pool and MetLife Intermediate Income Pool are pass-through investment pools, of which Metropolitan Life Insurance Company and/or its subsidiaries and/or affiliates are general partners. 3) The MetLife, Inc. organizational chart does not include real estate joint ventures and partnerships of which MetLife, Inc. and/or its subsidiaries is an investment partner. In addition, certain inactive subsidiaries have also been omitted. 4) MetLife Services EEIG is a cost-sharing mechanism used in the EU for EU- affiliated members. 6 ITEM 27. NUMBER OF CONTRACTOWNERS. As of January 31, 2013, there were 755,687 owners of qualified contracts and 184,332 owners of non-qualified contracts offered by the Registrant (Metropolitan Life Insurance Company Separate Account E). ITEM 28. INDEMNIFICATION UNDERTAKING PURSUANT TO RULE 484(B)(1) UNDER THE SECURITIES ACT OF 1933 MetLife, Inc. has secured a Financial Institutions Bond in the amount of $50,000,000, subject to a $5,000,000 deductible. MetLife, Inc. also maintains a Directors & Officers Liability and Corporate Reimbursement Insurance Policy with a limit of $400 million. The directors and officers of Metropolitan Life Insurance Company ("Metropolitan"), a subsidiary of MetLife, Inc. are also covered under the Financial Institutions Bond as well as under the directors' and officers' liability policy. A provision in Metropolitans by-laws provides for the indemnification (under certain circumstances) of individuals serving as directors or officers of Metropolitan. Insofar as indemnification for liability arising under the Securities Act of 1933 may be permitted to directors, officers and controlling persons of Metropolitan pursuant to the foregoing provisions, or otherwise, Metropolitan has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by Metropolitan of expenses incurred or paid by a director, officer or controlling person of Metropolitan in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, Metropolitan will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issue. ITEM 29. PRINCIPAL UNDERWRITERS. (a) MetLife Investors Distribution Company is the principal underwriter and distributor of the Contracts. MetLife Investors Distribution Company is the principal underwriter for the following investment companies: Met Investors Series Trust Metropolitan Series Fund Metropolitan Life Separate Account E Metropolitan Life Separate Account UL Metropolitan Tower Separate Account One Metropolitan Tower Separate Account Two MetLife Investors USA Separate Account A MetLife Investors USA Variable Life Account A MetLife Investors Variable Annuity Account One MetLife Investors Variable Annuity Account Five MetLife Investors Variable Life Account One MetLife Investors Variable Life Account Five First MetLife Investors Variable Annuity Account One General American Separate Account Eleven General American Separate Account Twenty- Eight General American Separate Account Twenty- Nine General American Separate Account Two Security Equity Separate Account 26 Security Equity Separate Account 27 MetLife of CT Separate Account Eleven for Variable Annuities MetLife of CT Separate Account QPN for Variable Annuities MetLife of CT Fund UL for Variable Life Insurance MetLife of CT Fund UL III for Variable Life Insurance Metropolitan Life Variable Annuity Separate Account I Metropolitan Life Variable Annuity Separate Account II Paragon Separate Account A Paragon Separate Account B Paragon Separate Account C and Paragon Separate Account D (b) MetLife Investors Distribution Company is the principal underwriter for the Contracts. The following persons are the officers and directors of MetLife Investors Distribution Company. The principal business address for MetLife Investors Distribution Company is 5 Park Plaza, Suite 1900, Irvine, CA 92614. NAME AND PRINCIPAL BUSINESS ADDRESS POSITIONS AND OFFICES WITH UNDERWRITER ---------------------------- ------------------------------------------------- Mark E. Rosenthal President 5 Park Plaza Suite 1900 EBS Irvine, CA 92614 Elizabeth M. Forget Director and Executive Vice President 1095 Avenues of the Americas New York, NY 10036 Paul A. LaPiana Director and Executive Vice President, National 5 Park Plaza Sales Manager-Life Suite 1900 Irvine, CA 92614 Andrew G. Aiello Senior Vice President, Channel Head - National 5 Park Plaza Accounts Suite 1900 Irvine, CA 92614 Isaac Torres Secretary 1095 Avenue of the Americas New York, NY 10036 Jay S. Kaduson Senior Vice President 10 Park Avenue Morristown, NJ 07962 Marlene B. Debel Treasurer 1095 Avenue of the Americas New York, NY 10036 John G. Martinez Vice President, Chief Financial Officer 18210 Crane Nest Dr Tampa, FL 33647 Debora L. Buffington Vice President, Director of Compliance 5 Park Plaza Suite 1900 Irvine, CA 92614 David DeCarlo Vice President 5 Park Plaza Suite 1900 Irvine, CA 92614 Rashid Ismail Vice President 5 Park Plaza Suite 1900 Irvine, CA 92614 Paul M. Kos Vice President 5 Park Plaza Suite 1900 Irvine, CA 92614 Craig W. Markham Vice President 13045 Tesson Ferry Road St. Louis, MO 63128 Cathy A. Sturdivant Vice President 5 Park Plaza Suite 1900 Irvine, CA 92614 Paulina Vakouros Vice President 200 Park Avenue 40th Floor New York, NY 10166 (c) Compensation from the Registrant. The following commissions and other compensation were received by the Distributor, directly or indirectly, from the Registrant during the Registrant's last fiscal year:
(2) (1) NET UNDERWRITING (3) (4) (5) NAME OF PRINCIPAL DISCOUNTS AND COMPENSATION ON BROKERAGE OTHER UNDERWRITER COMMISSIONS REDEMPTION COMMISSIONS COMPENSATION ----------------------------------------- ---------------- --------------- ----------- ------------ MetLife Investors Distribution Company $201,775,422 $0 $0 $0
C-5 Item 30. Location of Account and Records. Metropolitan Life Insurance Company 200 Park Avenue New York, N.Y. 10166 Item 31. Management Services. Not Applicable Item 32. Undertakings. (a) The undersigned registrant hereby undertakes to file a post-effective amendment to this registration statement as frequently as is necessary to ensure that the financial statements in this registration statement are not more than 16 months old for as long as payments under these variable annuity contracts may be accepted. (b) The undersigned registrant hereby undertakes to include a post card or similar written communication affixed to or included in the prospectus that the applicant can remove to send for a Statement of Additional Information. (c) The undersigned registrant hereby undertakes to deliver any Statement of Additional Information and any financial statements required to be made available under this form promptly upon written or oral request. (d) Metropolitan Life Insurance Company represents that the fees and charges deducted under the Deferred Annuity described in this Registration Statement, in the aggregate, are reasonable in relation to the services rendered, the expenses to be incurred, and the risks assumed by Metropolitan Life Insurance Company under the Deferred Annuity. C-6 SIGNATURES As required by the Securities Act of 1933 and the Investment Company Act of 1940, the Registrant certifies that it meets the requirements of Securities Act Rule 485(b) for effectiveness of this Registration Statement and has caused this Registration Statement to be signed on its behalf, in the City of New York, and State of New York on this 16th day of April, 2013. Metropolitan Life Separate Account E (Registrant) By: Metropolitan Life Insurance Company (Depositor) /s/ Paul G. Cellupica By: ______________________________________________ Paul G. Cellupica Chief Counsel, The Americas Metropolitan Life Insurance Company (Depositor) /s/ Paul G. Cellupica By: ______________________________________________ Paul G. Cellupica Chief Counsel, The Americas SIGNATURES As required by the Securities Act of 1933, this Registration Statement has been signed by the following persons in the capacities and on the dates indicated. Signature Title Date --------- ----- ---- * Director, Chairman, President ______________________________________ and Chief Executive Officer Steven A. Kandarian * Executive Vice President and ______________________________________ Chief Financial Officer John C.R. Hele * Executive Vice President, ______________________________________ and Chief Accounting Officer Peter M. Carlson * Director ______________________________________ Sylvia Mathews Burwell * Director _______________________________________ Cheryl W. Grise * Director ______________________________________ R. Glenn Hubbard * Director ______________________________________ John M. Keane * Director ______________________________________ Alfred F. Kelly, Jr. * Director ______________________________________ James M. Kilts * Director ______________________________________ Catherine R. Kinney * Director ______________________________________ Hugh B. Price Director ______________________________________ David Satcher * Director ______________________________________ Kenton J. Sicchitano * Director ______________________________________ Lulu C. Wang *By: /s/ Myra L. Saul, Esq. _________________________________ Myra L. Saul, Esq. Attorney-in-Fact April 16, 2013 EX-99.10 2 d442753dex9910.txt CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM We consent to the use in this Post-Effective Amendment No. 25/Amendment No. 194 to Registration Statement Nos. 333-52366/811-04001 on Form N-4 of our report dated March 28, 2013, relating to the financial statements and financial highlights comprising each of the Investment Divisions of Metropolitan Life Separate Account E and our report dated April 2, 2013, relating to the consolidated financial statements of Metropolitan Life Insurance Company and subsidiaries (the "Company") (which report expresses an unmodified opinion and includes an emphasis-of-matter paragraph referring to changes in the Company's method of accounting for deferred policy acquisition costs as required by accounting guidance adopted on January 1, 2012 and the Company's reorganization of its segments in 2012), both appearing in the Statement of Additional Information, which is part of such Registration Statement, and to the reference to us under the heading "Independent Registered Public Accounting Firm" also in such Statement of Additional Information. /s/ DELOITTE & TOUCHE LLP Tampa, Florida April 16, 2013 EX-99.13 3 d442753dex9913.txt POWERS OF ATTORNEY Metropolitan Life Insurance Company POWER OF ATTORNEY John C.R. Hele Executive Vice President and Chief Financial Officer KNOW ALL MEN BY THESE PRESENTS, that I, John C.R. Hele, Executive Vice President and Chief Financial Officer of Metropolitan Life Insurance Company, a New York company, do hereby constitute and appoint Nicholas D. Latrenta, Paul G. Cellupica, Marie C. Swift, Myra L. Saul, John E. Connolly, Jr. and Michele H. Abate, as my attorney-in-fact and agent, each of whom may act individually and none of whom is required to act jointly with any of the others, to sign and file on my behalf and to execute and file any instrument or document required to be filed as part of or in connection with or in any way related to, the Registration Statements and any and all amendments thereto filed by Metropolitan Life Insurance Company under the Securities Act of 1933 and/or the Investment Company Act of 1940, pertaining to: . Metropolitan Life Separate Account E File No. 002-90380 Preference Plus Account (APPA and BPPA), Enhanced Preference Plus Account (EPPA), Financial Freedom Account (FFA), Preference Plus Account for Enhanced Contracts (CPPA) and VestMet; File No. 333-43970 MetLife Income Security Plan; File No. 333-52366 Preference Plus Select; File 333-69320 MetLife Asset Builder VA; File No. 333-80547 MetLife Settlement Plus; File No. 333-83716 MetLife Financial Freedom Select B, L and C Class and MetLife Financial Freedom Select e and e Bonus Class; File No. 333-122883 Preference Plus Income Advantage; File No. 333-122897 MetLife Personal IncomePlus; File No. 333-153109 Preference Premier Variable Annuity; File No. 333-160722 Zenith Accumulator; File No. 333-162586 MetLife Growth and Guaranteed Income Variable Annuity; File No. 333- 176654 Preference Premier Variable Annuity . Metropolitan Life Separate Account UL File No. 033-32813 MetLife UL II; File No. 033-47927 Equity Advantage VUL and UL II; File No. 033-57320 MetFlex; File No. 033-91226 Group VUL; File No. 333-40161 Equity Additions and Equity Enricher; File No. 333-131664 Advantage Equity Options; File No. 333-147508 Equity Advantage VUL . Metropolitan Life Variable Annuity Separate Account II File No. 333-138113 Flexible Premium Variable Annuity; File No. 333-138115 Flexible Premium Deferred Variable Annuity; File No. 333-161093 Flexible Premium Variable Annuity (B); File No. 333-161094 Flexible Premium Deferred Variable Annuity (B) . New England Life Retirement Investment Account File No. 333-11133 Preference . New England Variable Annuity Fund I File No. 333-11137 . Paragon Separate Account A File No. 333-133674 AFIS; File No. 333-133699 Group American Plus . Paragon Separate Account B File No. 333-133671 DWS C, Met Flex GVUL C and Multi Manager C, Morgan Stanley product, Putnam product, MFS product, Multi Manager III; File No. 333-133675 DWS D, Met Flex GVUL D and Multi Manager D, and Multi Manager II . Paragon Separate Account C File No. 333-133673 Fidelity C; File No. 333-133678 Fidelity D . Paragon Separate Account D File No. 333-133672 Individual Variable Life; File No. 333-133698 Joint Survivor VUL . Security Equity Separate Account 26 File No. 333-110183 Variable Annuity . Security Equity Separate Account 27 File No. 333-110184 Variable Annuity . Separate Account No. 13 S File No. 333-110185 LCL2 Flexible Premium Variable Life and to have full power and authority to do or cause to be done in my name, place and stead each and every act and thing necessary or appropriate in order to effectuate the same, as fully to all intents and purposes as I might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact or any of them, may do or cause to be done by virtue hereof. This Power of Attorney does not revoke any prior powers of attorney. IN WITNESS WHEREOF, I have hereunto set my hand this 24th day of September, 2012. /s/ John C.R. Hele -------------------------- John C.R. Hele