497 1 y43688fe497.txt 497 PROSPECTUS DATED MAY 1, 2008 FOR THE NEW YORK LIFE FLEXIBLE PREMIUM VARIABLE ANNUITY (FORMERLY NEW YORK LIFE LIFESTAGES(R) FLEXIBLE PREMIUM VARIABLE ANNUITY) FROM NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION (A DELAWARE CORPORATION) 51 MADISON AVENUE, ROOM 251 NEW YORK, NEW YORK 10010 INVESTING IN NYLIAC VARIABLE ANNUITY SEPARATE ACCOUNT-I NYLIAC VARIABLE ANNUITY SEPARATE ACCOUNT-II NYLIAC VARIABLE ANNUITY SEPARATE ACCOUNT-III This Prospectus describes the individual New York Life Flexible Premium Variable Annuity policies. POLICIES INVESTING IN NYLIAC VARIABLE ANNUITY SEPARATE ACCOUNT-I AND NYLIAC VARIABLE ANNUITY SEPARATE ACCOUNT II WERE POLICIES THAT NYLIAC OFFERED FOR SALE PRIOR TO OCTOBER 1, 1999. PRIOR TO MAY 9, 2002, THESE POLICIES CONTINUED TO BE OFFERED WHERE POLICIES INVESTING IN NYLIAC VARIABLE ANNUITY SEPARATE ACCOUNT III WERE NOT YET AVAILABLE. ONLY POLICIES INVESTING IN NYLIAC VARIABLE ANNUITY SEPARATE ACCOUNT-III ARE PRESENTLY BEING OFFERED FOR SALE. New York Life Insurance and Annuity Corporation ("NYLIAC") issues these policies. We designed these policies to assist individuals with their long-term retirement planning or other long-term needs. You can use these policies with retirement plans that do or do not qualify for special federal income tax treatment. The policies offer flexible premium payments, access to your money through partial withdrawals (some withdrawals may be subject to a surrender charge and/or tax penalty), a choice of when Income Payments will commence, and a guaranteed death benefit if the owner or Annuitant dies before Income Payments have commenced. Your premium payments accumulate on a tax-deferred basis. This means your earnings are not taxed until you take money out of your policy, which can be done in several ways. You can split your premium payments among a Fixed Account and the variable investment divisions listed below. - MainStay VP Balanced--Service Class - MainStay VP Bond - MainStay VP Capital Appreciation - MainStay VP Cash Management - MainStay VP Common Stock - MainStay VP Conservative Allocation--Service Class - MainStay VP Convertible - MainStay VP Developing Growth - MainStay VP Floating Rate--Service Class - MainStay VP Government - MainStay VP Growth Allocation--Service Class - MainStay VP High Yield Corporate Bond - MainStay VP ICAP Select Equity - MainStay VP International Equity - MainStay VP Large Cap Growth - MainStay VP Mid Cap Core - MainStay VP Mid Cap Growth - MainStay VP Mid Cap Value - MainStay VP Moderate Allocation--Service Class - MainStay VP Moderate Growth Allocation--Service Class - MainStay VP S&P 500 Index - MainStay VP Small Cap Growth - MainStay VP Total Return - MainStay VP Value* - Alger American SmallCap Growth (formerly Alger American Small Capitalization) - CVS Calvert Social Balanced Portfolio - Columbia Small Cap Value Fund, Variable Series--Class B - Dreyfus IP Technology Growth - Fidelity(R) VIP Contrafund(R) - Fidelity(R) VIP Equity-Income - Fidelity(R) VIP Mid Cap--Service Class 2 - Janus Aspen Series Balanced - Janus Aspen Series Worldwide Growth - MFS(R) Investors Trust Series - MFS(R) Research Series - MFS(R) Utilities Series--Service Class - Neuberger Berman AMT Mid-Cap Growth Portfolio--Class S - Royce Micro-Cap Portfolio--Investment Class - Royce Small-Cap Portfolio--Investment Class - T. Rowe Price Equity Income Portfolio - Van Eck Worldwide Hard Assets - Van Kampen UIF Emerging Markets Equity - Victory VIF Diversified Stock--Class A Shares
* The MainStay VP Value portfolio will merge with and into the MainStay VP ICAP Select Equity portfolio on May 16, 2008. SOME INVESTMENT DIVISIONS OFFERED IN POLICIES ISSUED PRIOR TO JUNE 2, 2003 DIFFER FROM INVESTMENT DIVISIONS OFFERED IN POLICIES ISSUED ON OR AFTER JUNE 2, 2003. PLEASE REFER TO THE EXAMPLES SECTION OF THIS PROSPECTUS FOR A LIST OF THE CORRESPONDING INVESTMENT DIVISIONS AVAILABLE TO YOU. We do not guarantee the investment performance of these variable investment divisions. Depending on current market conditions, you can make or lose money in any of the investment divisions. You should read this Prospectus carefully before investing and keep it for future reference. This Prospectus is not valid unless it is accompanied by current prospectuses for the MainStay VP Series Fund, Inc., the Alger American Fund, the Calvert Variable Series, Inc., the Columbia Funds Variable Insurance Trust, the Dreyfus Investment Portfolios, the Fidelity Variable Insurance Products Fund, the Janus Aspen Series, the MFS(R) Variable Insurance Trust(SM), the Neuberger Berman Advisers Management Trust, The Royce Capital Fund, the T. Rowe Price Equity Series, Inc., the Universal Institutional Funds, Inc., the Van Eck Worldwide Insurance Trust and the Victory Variable Insurance Funds (the "Funds," and each individually, a "Fund"). Each Investment Division invests in shares of a corresponding Fund portfolio. Please contact us at (800) 598-2019, or your Registered Representative if you do not have the accompanying book of underlying fund prospectuses. To learn more about the policy you can obtain a copy of the Statement of Additional Information ("SAI"), dated May 1, 2008. The SAI has been filed with the Securities and Exchange Commission ("SEC") and is incorporated by reference into this Prospectus. The table of contents for the SAI appears at the end of this Prospectus. For a free copy of the SAI, call Us at (800) 598-2019 or write to Us at the address noted above. THE SEC HAS NOT APPROVED OR DISAPPROVED THESE SECURITIES OR PASSED UPON THE ADEQUACY OR ACCURACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. THE POLICIES INVOLVE RISKS, INCLUDING POTENTIAL LOSS OF PRINCIPAL INVESTED. THE POLICIES ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED OR ENDORSED BY, ANY BANK, AND ARE NOT FEDERALLY INSURED BY THE FDIC, THE FEDERAL RESERVE BOARD, OR ANY OTHER AGENCY. TABLE OF CONTENTS
PAGE ---- DEFINITIONS.......................... 3 TABLE OF FEES AND EXPENSES........... 5 QUESTIONS AND ANSWERS ABOUT NEW YORK LIFE FLEXIBLE PREMIUM VARIABLE ANNUITY........... 23 How Do I Contact NYLIAC?........... 27 FINANCIAL STATEMENTS................. 28 CONDENSED FINANCIAL INFORMATION...... 29 NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION AND THE SEPARATE ACCOUNT............................ 42 New York Life Insurance and Annuity Corporation..................... 42 The Separate Accounts.............. 42 The Portfolios..................... 42 Additions, Deletions, or Substitutions of Investments.... 45 Reinvestment....................... 45 THE POLICIES......................... 45 Selecting the Variable Annuity That's Right for You............ 46 Qualified and Non-Qualified Policies........................ 48 Policy Application and Premium Payments........................ 48 Payments Returned for Insufficient Funds........................... 49 Your Right to Cancel ("Free Look").......................... 50 Issue Ages......................... 50 Transfers.......................... 50 Limits on Transfers................ 51 Virtual Service Center and Interactive Voice Response System.......................... 52 Dollar Cost Averaging.............. 53 Automatic Asset Reallocation....... 55 Interest Sweep..................... 55 Accumulation Period................ 55 (a) Crediting of Premium Payments.................... 55 (b) Valuation of Accumulation Units....................... 56 Policyowner Inquiries.............. 56 Records and Reports................ 56 CHARGES AND DEDUCTIONS............... 56 Surrender Charges.................. 56 Amount of Surrender Charge......... 57 Exceptions to Surrender Charges.... 57 Other Charges...................... 57 (a) Mortality and Expense Risk Charges..................... 57 (b) Administration Fee.......... 58 (c) Policy Service Charge....... 58 (d) Fund Charges................ 58 (e) Transfer Fees............... 58 (f) Enhanced Beneficiary Benefit Rider Charge (optional)................. 58 Group and Sponsored Arrangements... 58 Taxes.............................. 59 DISTRIBUTIONS UNDER THE POLICY....... 59 Surrenders and Withdrawals......... 59 (a) Surrenders.................. 60 (b) Partial Withdrawals......... 60 (c) Periodic Partial Withdrawals................. 60 (d) Hardship Withdrawals........ 60 Required Minimum Distribution Option.......................... 60 Our Right to Cancel................ 61 Annuity Commencement Date.......... 61 Death Before Annuity Commencement.. 61 Income Payments.................... 62 (a) Election of Income Payment Options..................... 62 (b) Proof of Survivorship....... 63 Delay of Payments.................. 63 Designation of Beneficiary......... 63 Restrictions Under Code Section 403(b)(11)...................... 64 Loans.............................. 64 Riders............................. 65 (a) Living Needs Benefit Rider....................... 65 (b) Unemployment Benefit Rider....................... 65 (c) Enhanced Beneficiary Benefit Rider (optional)............ 65 (d) Enhanced Spousal Continuance Rider (optional)............ 68 THE FIXED ACCOUNT.................... 68 (a) Interest Crediting.......... 68 (b) Transfers to Investment Divisions................... 68 (c) Bail-Out (For Policies Investing in Separate Accounts-I and II)......... 69 FEDERAL TAX MATTERS.................. 69 Introduction....................... 69 Taxation of Annuities in General... 69 Qualified Policies................. 71 (a) 403(b) Plans................ 71 (b) Individual Retirement Annuities................... 72 (c) Roth Individual Retirement Annuities................... 72 (d) Deferred Compensation Plans....................... 72 (e) SIMPLE IRAs................. 72 Taxation of Death Benefits......... 73 DISTRIBUTION AND COMPENSATION ARRANGEMENTS....................... 73 VOTING RIGHTS........................ 73 TABLE OF CONTENTS FOR THE STATEMENT OF ADDITIONAL INFORMATION.......... 75
THIS PROSPECTUS IS NOT CONSIDERED AN OFFERING IN ANY STATE WHERE THE SALE OF THIS POLICY CANNOT LAWFULLY BE MADE. WE DO NOT AUTHORIZE ANY INFORMATION OR REPRESENTATIONS REGARDING THE OFFERING OTHER THAN AS DESCRIBED IN THIS PROSPECTUS OR IN ANY ACCOMPANYING SUPPLEMENT TO THIS PROSPECTUS OR IN ANY AUTHORIZED SUPPLEMENTAL SALES MATERIAL. 2 DEFINITIONS ACCUMULATION UNIT--An accounting unit We use to calculate the Variable Accumulation Value prior to the Annuity Commencement Date. Each Investment Division of the Separate Account has a distinct Accumulation Unit value. ACCUMULATION VALUE--The sum of the Variable Accumulation Value and the Fixed Accumulation Value, of a policy. ALLOCATION ALTERNATIVES--The Investment Divisions of the Separate Account and the Fixed Account. ANNUITANT--The person named on the Policy Data Page and whose life determines the Income Payments, and upon whose death prior to the Annuity Commencement Date, benefits under the policy may be paid. ANNUITY COMMENCEMENT DATE--The date on which We are to make the first Income Payment under the policy. BENEFICIARY--The person or entity having the right to receive the death benefit set forth in the policy and who is the "designated beneficiary" for purposes of Section 72 of the Internal Revenue Code in the event of the Annuitant's or the policyowner's death. BUSINESS DAY--Generally, any day on which the New York Stock Exchange ("NYSE") is open for trading. Our Business Day ends at 4:00 p.m. Eastern Time or the closing of regular trading on the NYSE, if earlier. CODE--The Internal Revenue Code of 1986, as amended. ELIGIBLE PORTFOLIOS ("PORTFOLIOS")--The mutual fund portfolios of the Funds that are available for investment through the Investment Divisions of the Separate Account. FIXED ACCOUNT--An account that is credited with a fixed interest rate which NYLIAC declares and is not part of the Separate Account. The Accumulation Value of the Fixed Account is supported by assets in NYLIAC's general account, which are subject to the claims of Our general creditors. FIXED ACCUMULATION VALUE--The sum of premium payments and transfers allocated to the Fixed Account, plus interest credited on those premium payments and transfers, less any transfers and partial withdrawals from the Fixed Account, and less any surrender charges and policy service charges deducted from the Fixed Account. FUND--An open-end management investment company. INCOME PAYMENTS--Periodic payments NYLIAC makes after the Annuity Commencement Date. INVESTMENT DIVISION--The variable investment options available with the policy. Each Investment Division invests exclusively in shares of a specified Eligible Portfolio. NON-QUALIFIED POLICIES--Policies that are not available for use by individuals in connection with employee retirement plans intended to qualify for special federal income tax treatment under Sections 403(b), 408, 408A and 457 of the Code. Non-Qualified Policies include policies issued for other retirement plans or arrangements, including plans qualifying under Section 401(a) of the Code. NYLIAC, WE, OUR OR US--New York Life Insurance and Annuity Corporation. All written service requests must be sent to the NYLIAC Variable Products Service Center ("VPSC") at one of the addresses listed in Question 15 of the section of the Prospectus entitled, "QUESTIONS AND ANSWERS ABOUT NEW YORK LIFE FLEXIBLE PREMIUM VARIABLE ANNUITY." POLICY ANNIVERSARY--An anniversary of the Policy Date shown on the Policy Data Page. POLICY DATA PAGE--Page 2 of the policy, which contains the policy specifications. POLICY DATE--The date from which We measure Policy Years, quarters, months, and Policy Anniversaries. It is shown on the Policy Data Page. POLICY YEAR--A year starting on the Policy Date. Subsequent Policy Years begin on each Policy Anniversary, unless otherwise indicated. QUALIFIED POLICIES--Policies for use by individuals under employee retirement plans that are intended to qualify for special federal income tax treatment under Sections 403(b), 408, 408A and 457 of the Code. Qualified Policies do 3 not include policies issued for any other retirement plans or arrangements, including plans qualifying under Section 401(a) of the Code. SEPARATE ACCOUNTS--NYLIAC Variable Annuity Separate Account-I, NYLIAC Variable Annuity Separate Account-II and NYLIAC Variable Annuity Separate Account-III, each a segregated asset account We established to receive and invest premium payments paid under the policies. The Separate Accounts' Investment Divisions, in turn, purchase shares of Eligible Portfolios. VARIABLE ACCUMULATION VALUE--The sum of the products of the current Accumulation Unit value(s) for each of the Investment Divisions multiplied by the number of Accumulation Units held in the respective Investment Divisions. 4 TABLE OF FEES AND EXPENSES The following tables describe the fees and expenses that you will pay when buying, owning, and surrendering the policy. The first table describes the fees and expenses that you will pay at the time that you buy the policy, surrender the policy, or transfer Accumulation Value between investment options. State premium taxes may also be deducted. POLICYOWNER TRANSACTION EXPENSES
---------------------------------------------------------------------------------------- SEPARATE SEPARATE ACCOUNTS -- ACCOUNT I AND II III ---------------------------------------------------------------------------------------- CURRENT AND GUARANTEED MAXIMUM SURRENDER CHARGE as a 7.00% 7.00% percentage of the amount withdrawn.(1) CURRENT AND GUARANTEED MAXIMUM TRANSFER FEE for each $30 $30 transfer over 12 in a Policy Year (currently no charge for the first 12 transfers in a Policy Year).
1 The percentage applied to calculate the maximum surrender charge is reduced as follows: 7% during Policy Years 1 through 3; 6% during Policy Year 4; 5% during Policy Year 5; 4% during Policy Year 6; 3% during Policy Year 7; 2% during Policy Year 8; 1% during Policy Year 9; and 0% thereafter. The next table describes the fees and expenses that you will pay periodically during the time that you own the policy, not including Fund fees and expenses. PERIODIC CHARGES OTHER THAN FUND COMPANY CHARGES
---------------------------------------------------------------------------------------- SEPARATE SEPARATE ACCOUNTS -- ACCOUNT I AND II III ---------------------------------------------------------------------------------------- Annual Policy Service Charge Lesser of $30 $30 for or 2% policies of the with less Accumulation than $20,000 Value for of policies with Accumulation less than Value. $10,000 of Accumulation Value. CURRENT AND GUARANTEED MAXIMUM SEPARATE ACCOUNT 1.30% 1.40% ANNUAL EXPENSES CHARGE (calculated as an annualized percentage of the daily average Variable Accumulation Value, including mortality and expense risk and administrative fees).
OPTIONAL RIDER CHARGES
---------------------------------------------------------------------------------------- GUARANTEED MAXIMUM ENHANCED BENEFICIARY BENEFIT N/A 1.00% RIDER CHARGE (calculated as an annualized percentage of the policy's Accumulation Value, deducted on a quarterly basis). Current Enhanced Beneficiary Benefit Rider Charge N/A 0.30%
5 The next table shows the minimum and maximum total operating expenses charged by the portfolio companies that you may pay periodically during the time that you own the policy (before any fee waiver or expense reimbursement). The expenses are expressed as a percentage of average net assets of the portfolios and may be higher or lower in the future. More detail concerning each portfolio company's fees and expenses is contained in the prospectus for each portfolio company. TOTAL ANNUAL PORTFOLIO COMPANY OPERATING EXPENSES(#)
---------------------------------------------------------------------------------------- MINIMUM MAXIMUM ---------------------------------------------------------------------------------------- For policies purchased on or after June 2, 0.49% 1.93% 2003: Expenses that are deducted from the Investment Division assets, including management fees, 12b-1 fees, administration fees and other expenses as of 12/31/07. For policies purchased prior to June 2, 0.33% 1.58% 2003: Expenses that are deducted from the Investment Division assets, including management fees, 12b-1 fees, administration fees and other expenses as of 12/31/07.
(#) Shown as a percentage of average net assets for the fiscal year ended 12/31/2007. The Fund or its agents provided the fees and charges that are based on 2007 expenses, unless otherwise indicated. We have not verified the accuracy of the information provided by the Fund or its agents. ANNUAL PORTFOLIO COMPANY OPERATING EXPENSES(#)
----------------------------------------------------------------------------------------------------------------------------- ESTIMATED UNDERLYING TOTAL FUND ADVISORY ADMINISTRATION 12B-1 OTHER PORTFOLIO FEES ANNUAL FUND FEE FEE FEES(sec.) EXPENSES AND EXPENSES EXPENSES ----------------------------------------------------------------------------------------------------------------------------- MainStay VP Conservative Allocation -- Service Class 0.00% 0.00% 0.25% 0.08%(a) 0.60%(b) 0.93% MainStay VP Growth Allocation -- Service Class 0.00% 0.00% 0.25% 0.07%(c) 0.72%(b) 1.04% MainStay VP Moderate Allocation -- Service Class 0.00% 0.00% 0.25% 0.06%(c) 0.63%(b) 0.94% MainStay VP Moderate Growth Allocation -- Service Class 0.00% 0.00% 0.25% 0.05%(c) 0.68%(b) 0.98%
(#) Shown as a percentage of average net assets for the fiscal year ended December 31, 2007, unless otherwise indicated. The Fund or its agents provided the fees and charges, which are based on 2007 expenses. We have not verified the accuracy of the information provided by the Fund or its agents. (sec.) The 12b-1 fee charge is an ongoing fee. The fee will increase the cost of your investment and may cost you more than paying other types of sales charges. (a) The Manager has contractually agreed to waive other fees and/or reimburse the Portfolio for certain expenses so that net annual operating expenses for the Initial Class shares, excluding Underlying Portfolio/Fund expenses, do not exceed 0.25%. NYLIM will apply an equivalent reimbursement, in an equal amount of basis points, to the Service Class shares. These expense limitations may be modified or terminated only with the approval of the Board of Directors. NYLIM may recoup the amount of any expense reimbursements from a share class pursuant to this agreement if such action does not cause a class to exceed existing expense limitations and the recoupment is made within three years after the year in which NYLIM incurred the expense. For the year ended December 31, 2007, NYLIM recouped 0.01% in expenses which are not included in the table above. (b) In addition to the Net Annual Portfolio Operating Expenses which the Portfolio bears directly, the Portfolio's shareholders indirectly bear the expenses of the Underlying Portfolios/Funds in which the Portfolio invests. The table shows the Portfolio's indirect expense from investing in the Underlying Portfolios/Funds based on the allocation of the Portfolio's assets among the Underlying Portfolios/Funds during the Portfolio's fiscal year ended December 31, 2007. This expense may be higher or lower over time depending on the allocation of the Portfolio's assets among the Underlying Portfolios/Funds and the actual expenses of the Underlying Portfolios/Funds. (c) The Manager has contractually agreed to waive other fees and/or reimburse the Portfolio for certain expenses so that net annual operating expenses for the Initial Class shares, excluding Underlying Portfolio/Fund expenses, do not exceed 0.25%. NYLIM will apply an equivalent reimbursement, in an equal amount of basis points, to the Service Class shares. These expense limitations may be modified or terminated only with the approval of the Board of Directors. NYLIM may recoup the amount of any expense reimbursements from a share class pursuant to this agreement if such action does not cause a class to exceed existing expense limitations and the recoupment is made within three years after the year in which NYLIM incurred the expense. Expenses have been restated to reflect current fees.
------------------------------------------------------------------------------------------------------------- 12B-1 TOTAL FUND ADVISORY ADMINISTRATION FEE- OTHER ANNUAL FUND FEES FEES S(sec.) EXPENSES EXPENSE(A) ------------------------------------------------------------------------------------------------------------- MainStay VP Balanced -- Service Class 0.75%(b) 0.00% 0.25% 0.07%(c) 1.07%(d) MainStay VP Bond -- Service Class 0.49%(e)(f) 0.00% 0.25% 0.05%(f) 0.79% MainStay VP Bond -- Initial Class 0.49%(e)(f) 0.00% 0.00% 0.05%(f) 0.54% MainStay VP Capital Appreciation -- Service Class 0.61%(g)(f) 0.00% 0.25% 0.04%(f) 0.90% MainStay VP Capital Appreciation -- Initial Class 0.61%(g)(f) 0.00% 0.00% 0.04%(f) 0.65%
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------------------------------------------------------------------------------------------------------------- 12B-1 TOTAL FUND ADVISORY ADMINISTRATION FEE- OTHER ANNUAL FUND FEES FEES S(sec.) EXPENSES EXPENSE(A) ------------------------------------------------------------------------------------------------------------- MainStay VP Cash Management 0.44%(h)(f) 0.00% 0.00% 0.05%(f) 0.49% MainStay VP Common Stock -- Service Class 0.54%(i)(f) 0.00% 0.25% 0.05%(c)(f) 0.84%(d) MainStay VP Common Stock -- Initial Class 0.54%(i)(f) 0.00% 0.00% 0.05%(c)(f) 0.59%(d) MainStay VP Convertible -- Service Class 0.60%(j)(f) 0.00% 0.25% 0.06%(c)(f) 0.91%(d) MainStay VP Convertible -- Initial Class 0.60%(j)(f) 0.00% 0.00% 0.06%(c)(f) 0.66%(d) MainStay VP Developing Growth -- Service Class 0.80%(k)(f) 0.00% 0.25% 0.12%(f) 1.17% MainStay VP Developing Growth -- Initial Class 0.80%(k)(f) 0.00% 0.00% 0.12%(f) 0.92% MainStay VP Floating Rate -- Service Class 0.60%(l) 0.00% 0.25% 0.07% 0.92% MainStay VP Government -- Service Class 0.50%(m)(f) 0.00% 0.25% 0.06%(f) 0.81% MainStay VP Government -- Initial Class 0.50%(m)(f) 0.00% 0.00% 0.06%(f) 0.56% MainStay VP High Yield Corporate Bond -- Service Class 0.56%(n)(f) 0.00% 0.25% 0.05%(c)(f) 0.86%(d) MainStay VP High Yield Corporate Bond -- Initial Class 0.56%(n)(f) 0.00% 0.00% 0.05%(c)(f) 0.61%(d) MainStay VP ICAP Select Equity -- Service Class 0.78%(o)(f) 0.00% 0.25% 0.06%(f) 1.09% MainStay VP ICAP Select Equity -- Initial Class 0.78%(o)(f) 0.00% 0.00% 0.06%(f) 0.84% MainStay VP International Equity -- Service Class 0.88%(p)(f) 0.00% 0.25% 0.09%(c)(f) 1.22%(d) MainStay VP International Equity -- Initial Class 0.88%(p)(f) 0.00% 0.00% 0.09%(c)(f) 0.97%(d) MainStay VP Large Cap Growth -- Service Class 0.75%(q)(f) 0.00% 0.25% 0.05%(f) 1.05%(r) MainStay VP Large Cap Growth -- Initial Class 0.75%(q)(f) 0.00% 0.00% 0.05%(f) 0.80%(r) MainStay VP Mid Cap Core -- Service Class 0.85%(s) 0.00% 0.25% 0.06%(c) 1.16%(d) MainStay VP Mid Cap Core -- Initial Class 0.85%(s) 0.00% 0.00% 0.06%(c) 0.91%(d) MainStay VP Mid Cap Growth -- Service Class 0.75%(t) 0.00% 0.25% 0.05%(c) 1.05%(d) MainStay VP Mid Cap Growth -- Initial Class 0.75%(t) 0.00% 0.00% 0.05%(c) 0.80%(d) MainStay VP Mid Cap Value -- Service Class 0.70%(u) 0.00% 0.25% 0.06%(c) 1.01%(d) MainStay VP Mid Cap Value -- Initial Class 0.70%(u) 0.00% 0.00% 0.06%(c) 0.76%(d) MainStay VP S&P 500 Index -- Service Class 0.29%(v)(f) 0.00% 0.25% 0.04%(f) 0.58% MainStay VP S&P 500 Index -- Initial Class 0.29%(v)(f) 0.00% 0.00% 0.04%(f) 0.33% MainStay VP Small Cap Growth -- Service Class 0.90%(w) 0.00% 0.25% 0.06% 1.21% MainStay VP Small Cap Growth -- Initial Class 0.90%(w) 0.00% 0.00% 0.06% 0.96% MainStay VP Total Return -- Service Class 0.57%(x)(f) 0.00% 0.25% 0.06%(c)(f) 0.88%(d) MainStay VP Total Return -- Initial Class 0.57%(x)(f) 0.00% 0.00% 0.06%(c)(f) 0.63%(d) MainStay VP Value -- Service Class* 0.36%(l) 0.20% 0.25% 0.05%(c) 0.86%(d) MainStay VP Value -- Initial Class* 0.36%(l) 0.20% 0.00% 0.05%(c) 0.61%(d) Alger American SmallCap Growth -- Class S Shares ** 0.81% 0.00% 0.25% 0.15% 1.21% Alger American SmallCap Growth -- Class O Shares ** 0.81% 0.00% 0.00% 0.15% 0.96% CVS Calvert Social Balanced Portfolio 0.425%(y) 0.275% 0.00% 0.20% 0.90% Columbia Small Cap Value Fund, Variable Series -- Class B 0.80%(z) 0.00% 0.25% 0.09%(aa) 1.14%(bb) Dreyfus IP Technology Growth -- Service Class 0.75%(cc) 0.00% 0.25% 0.10%(dd) 1.10% Dreyfus IP Technology Growth -- Initial Class 0.75%(cc) 0.00% 0.00% 0.10%(dd) 0.85% Fidelity(R) VIP Contrafund(R) -- Service Class 2 0.56%(y) 0.00% 0.25% 0.09% 0.90%(ee) Fidelity(R) VIP Contrafund(R) -- Initial Class 0.56%(y) 0.00% 0.00% 0.09% 0.65%(ee) Fidelity(R) VIP Equity-Income -- Service Class 2 0.46%(y) 0.00% 0.25% 0.09% 0.80% Fidelity(R) VIP Equity-Income -- Initial Class 0.46%(y) 0.00% 0.00% 0.09% 0.55%(ee) Fidelity(R) VIP Mid Cap -- Service Class 2 0.56%(y) 0.00% 0.25% 0.10% 0.91%(ee) Janus Aspen Series Balanced -- Service Shares 0.55%(ff) 0.00% 0.25% 0.02% 0.82%
7
------------------------------------------------------------------------------------------------------------- 12B-1 TOTAL FUND ADVISORY ADMINISTRATION FEE- OTHER ANNUAL FUND FEES FEES S(sec.) EXPENSES EXPENSE(A) ------------------------------------------------------------------------------------------------------------- Janus Aspen Series Balanced -- Institutional Shares 0.55%(ff) 0.00% 0.00% 0.02% 0.57% Janus Aspen Series Worldwide Growth -- Service Shares(gg) 0.65%(ff) 0.00% 0.25% 0.02% 0.92% Janus Aspen Series Worldwide Growth -- Institutional Shares(gg) 0.65%(ff) 0.00% 0.00% 0.02% 0.67% MFS(R) Investors Trust Series -- Service Class 0.75%(l) 0.00% 0.25% 0.10% 1.10%(hh) MFS(R) Investors Trust Series -- Initial Class 0.75%(l) 0.00% 0.00% 0.10% 0.85%(hh) MFS(R) Research Series -- Service Class 0.75%(l) 0.00% 0.25% 0.13% 1.13%(hh) MFS(R) Research Series -- Initial Class 0.75%(l) 0.00% 0.00% 0.13% 0.88%(hh) MFS(R) Utilities Series -- Service Class 0.75%(l) 0.00% 0.25% 0.10% 1.10%(hh) Neuberger Berman AMT Mid Cap Growth -- Class S 0.82%(ii) 0.00% 0.25% 0.07% 1.14%(jj) Royce Micro-Cap Portfolio -- Investment Class 1.25% 0.00% 0.00% 0.06% 1.31% Royce Small-Cap Portfolio -- Investment Class 1.00% 0.00% 0.00% 0.08% 1.08% T. Rowe Price Equity Income Portfolio II 0.85%(kk) 0.00% 0.25% 0.00% 1.10% T. Rowe Price Equity Income Portfolio 0.85%(kk) 0.00% 0.00% 0.00% 0.85% Van Eck Worldwide Hard Assets Fund 1.00% 0.00% 0.00% 0.01% 1.01% Van Kampen UIF Emerging Markets Equity -- Class II(II) 1.21%(l) 0.00% 0.35%(mm) 0.37% 1.93% Van Kampen UIF Emerging Markets Equity -- Class I(II) 1.21%(l) 0.00% 0.00% 0.37% 1.58% Victory VIF Diversified Stock -- Class A Shares 0.30%(l) 0.00% 0.25% 0.69% 1.24%(nn)
(sec.) The 12b-1 fee charge is an ongoing fee. The fee will increase the cost of your investment and may cost you more than paying other types of sales charges. * The MainStay VP Value portfolio will merge with and into the MainStay VP ICAP Select Equity Portfolio on May 16, 2008. ** No premiums or transfers will be accepted into this Investment Division from policyowners who did not have Cash Value allocated to this Investment Division prior to June 1, 2007. Policyowners who remove all Cash Value allocations from this Investment Division will not be permitted to reinvest in this Investment Division. (a) Shown as a percentage of average net assets for the fiscal year ended December 31, 2007, unless otherwise indicated. The Fund or its agents provided the fees and charges, which are based on 2007 expenses. We have not verified the accuracy of the information provided by the Fund or its agents. (b) The fees designated as "Advisory Fees" reflect "Management Fees." Effective May 1, 2008, the Management Fee for the Portfolio is an annual percentage of the Portfolio's average daily net assets as follows: 0.75% on assets up to $1 billion; and 0.70% on assets over $1 billion. (c) "Other Expenses" also includes the Portfolio's share of the fees and expenses of any other fund in which the Portfolio invests. These fees and expenses are less than 0.01% of the average net assets of the Portfolio. (d) The Total Fund Annual Expenses may differ from the amounts shown in the Financial Highlights section of the fund's Prospectus which reflect only the operating expenses of the Portfolio and do not include the Portfolio's share of the fees and expenses of any other fund in which the Portfolio may invest. (e) The fees designated as "Advisory Fees" reflect "Management Fees." Effective May 1, 2008, the Management Fee for the Portfolio is an annual percentage of the Portfolio's average daily net assets as follows: 0.50% on assets up to $500 million; 0.475% on assets from $500 million to $1 billion; and 0.45% on assets over $1 billion. (f) Expenses have been restated to reflect current fees. (g) The fees designated as "Advisory Fees" reflect "Management Fees." Effective May 1, 2008, the Management Fee for the Portfolio is an annual percentage of the Portfolio's average daily net assets as follows: 0.61% on assets up to $1 billion; and 0.50% on assets over $1 billion. (h) The fees designated as "Advisory Fees" reflect "Management Fees." Effective May 1, 2008, the Management Fee for the Portfolio is an annual percentage of the Portfolio's average daily net assets as follows: 0.45% on assets up to $500 million; 0.40% on assets from $500 million to $1 billion; and 0.35% on assets over $1 billion. (i) The fees designated as "Advisory Fees" reflect "Management Fees." Effective May 1, 2008, the Management Fee for the Portfolio is an annual percentage of the Portfolio's average daily net assets as follows: 0.55% on assets up to $500 million; 0.525% on assets from $500 million to $1 billion; and 0.50% on assets over $1 billion. (j) The fees designated as "Advisory Fees" reflect "Management Fees." Effective May 1, 2008, the Management Fee for the Portfolio is an annual percentage of the Portfolio's average daily net assets as follows: 0.60% on assets up to $1 billion; and 0.50% on assets over $1 billion. (k) The fees designated as "Advisory Fees" reflect "Management Fees." Effective May 1, 2008, the Management Fee for the Portfolio is an annual percentage of the Portfolio's average daily net assets as follows: 0.80% on assets up to $200 million; 0.75% on assets from $200 million to $500 million; 0.725% on assets from $500 million to $1 billion; and 0.70% on assets over $1 billion. (l) The fees designated as "Advisory Fees" reflect "Management Fees." 8 (m) The fees designated as "Advisory Fees" reflect "Management Fees." Effective May 1, 2008, the Management Fee for the Portfolio is an annual percentage of the Portfolio's average daily net assets as follows: 0.50% on assets up to $500 million; 0.475% on assets from $500 million to $1 billion; and 0.45% on assets over $1 billion. (n) The fees designated as "Advisory Fees" reflect "Management Fees." Effective May 1, 2008, the Management Fee for the Portfolio is an annual percentage of the Portfolio's average daily net assets as follows: 0.57% on assets up to $1 billion; 0.55% on assets from $1 billion to $5 billion; and 0.525% on assets over $5 billion. (o) The fees designated as "Advisory Fees" reflect "Management Fees." Effective May 1, 2008, the Management Fee for the Portfolio is an annual percentage of the Portfolio's average daily net assets as follows: 0.80% on assets up to $250 million; 0.75% on assets from $250 million up to $1 billion; and 0.74% on assets over $1 billion. Effective May 1, 2008, NYLIM has agreed contractually to waive a portion of its management fee so that the management fee is 0.75% on assets up to $250 million; 0.70% on assets from $250 million up to $1 billion and 0.69% on assets over $1 billion. This waiver will be in effect through May 1, 2009, and may be modified only with Board approval. With this waiver, the Total Fund Annual Expenses were 0.79% and 1.04%, respectively for Initial Class and Service Class. There is no guarantee that this contractual waiver will continue beyond that date. (p) The fees designated as "Advisory Fees" reflect "Management Fees." Effective May 1, 2008, the Management Fee for the Portfolio is an annual percentage of the Portfolio's average daily net assets as follows: 0.89% on assets up to $500 million; and 0.85% on assets over $500 million. (q) The fees designated as "Advisory Fees" reflect "Management Fees." Effective May 1, 2008, the Management Fee for the Portfolio is an annual percentage of the Portfolio's average daily net assets as follows: 0.75% on assets up to $500 million; 0.725% on assets from $500 million to $1 billion; and 0.70% on assets over $1 billion. (r) NYLIM voluntarily has committed to the Board to share equally with the Portfolio any reduction in the subadvisory fee to the extent that the net management fee to NYLIM exceeds 0.10%. This has resulted in a benefit of 0.02%. With this waiver, the Total Fund Annual Expenses were 0.78% and 1.03%, respectively for Initial Class and Service Class. There is no guarantee this waiver will continue. (s) The fees designated as "Advisory Fees" reflect "Management Fees." Effective May 1, 2008, the Management Fee for the Portfolio is an annual percentage of the Portfolio's average daily net assets as follows: 0.85% on assets up to $1 billion; and 0.80% on assets over $1 billion. (t) The fees designated as "Advisory Fees" reflect "Management Fees." Effective May 1, 2008, the Management Fee for the Portfolio is an annual percentage of the Portfolio's average daily net assets as follows: 0.75% on assets up to $500 million; and 0.70% on assets over $500 million. (u) The fees designated as "Advisory Fees" reflect "Management Fees." Effective May 1, 2008, the Management Fee for the Portfolio is an annual percentage of the Portfolio's average daily net assets as follows: 0.70% on assets up to $500 million; and 0.65% on assets over $500 million. (v) The fees designated as "Advisory Fees" reflect "Management Fees." Effective May 1, 2008, the Management Fee for the Portfolio is an annual percentage of the Portfolio's average daily net assets as follows: 0.30% on assets up to $1 billion; 0.275% on assets from $1 billion to $2 billion; 0.265% on assets from $2 billion to $3 billion; and 0.25% on assets over $3 billion. Effective May 1, 2008, NYLIM has voluntarily agreed to waive a portion of its management fee so that the Management Fee is 0.25% on assets up to $1 billion; 0.225% on assets from $1 billion to $2 billion; 0.215% on assets from $2 billion to $3 billion; and 0.20% on assets over $3 billion. With this waiver, the Total Fund Annual Expenses were 0.28% and 0.53%, respectively for Initial Class and Service Class. (w) The fees designated as "Advisory Fees" reflect "Management Fees." Effective May 1, 2008, the Management Fee for the Portfolio is an annual percentage of the Portfolio's average daily net assets as follows: 0.90% on assets up to $1 billion; and 0.85% on assets over $1 billion. (x) The fees designated as "Advisory Fees" reflect "Management Fees." Effective May 1, 2008, the Management Fee for the Portfolio is an annual percentage of the Portfolio's average daily net assets as follows: 0.57% on assets up to $1 billion; and 0.55% on assets over $1 billion. (y) The fees designated as "Advisory Fees" and "Administration Fees" reflect "Management Fees". (z) The Advisor has implemented a breakpoint schedule for the Fund's investment advisory fees. The investment advisory fees charged to the Fund will decline as Fund assets grow and will continue to be based on a percentage of the Fund's average daily net assets. The breakpoint schedule for the Fund is as follows: 0.80% for assets up to $500 million; 0.75% for assets in excess of $500 million and up to $1 billion; and 0.70% for assets in excess of $1 billion. (aa) "Other Expenses" include Acquired Fund Fees and Expenses that are less than 0.01%. (bb) The Distributor and/or the Advisor have voluntarily agreed to waive fees and reimburse the Fund for certain expenses so that total expenses (exclusive of brokerage commissions, interest, taxes and extraordinary expenses, but including custodian charges relating to overdrafts, if any), after giving effect to any balance credits from the Fund's custodian, do not exceed 1.10% of the Fund's average daily net assets. The Distributor will first reimburse the distribution fee up to 0.25% annually of the class' daily net assets to reach the 1.10% limit. If additional reimbursement is needed to meet the limit, the Advisor will then reimburse other expenses to the extent necessary. If additional reimbursement is still needed, the Advisor will waive a portion of its investment advisory fee to the extent necessary. If the waiver were reflected in the table, the 12b-1 fee would be 0.21% and the Total Fund Annual Expenses would be 1.10%. The Advisor or the Distributor may modify or terminate these arrangements at any time. (cc) The Advisory Fees reflect the amount paid to The Dreyfus Corporation for providing management services. (dd) Other expenses include expenses of 0.01% for acquired portfolio fees and expenses. (ee) A portion of the brokerage commissions that the fund pays may be reimbursed and used to reduce the fund's expenses. In addition, through arrangements with the fund's custodian, credits realized as a result of uninvested cash balances are used to reduce the fund's custodian expenses. Including these reductions, the total class operating expenses would have been 0.64% for Fidelity(R) VIP Contrafund(R) -- Initial Class, 0.89% for Fidelity(R) VIP Contrafund(R) -- Service Class 2, 0.54% for Fidelity(R) VIP Equity-Income -- Initial Class, and 0.90% for Fidelity(R) VIP Mid Cap -- Service Class 2. These offsets may be discontinued at any time. (ff) The fees designated as "Advisory Fees" reflect "Management Fees". The "Management Fee" is the investment advisory fee rate paid by each Portfolio to Janus Capital as of the end of the fiscal year. (gg) Worldwide Growth Portfolio pays an investment advisory fee rate that adjusts up or down based upon the Portfolio's performance relative to its benchmark index during a measuring period. This fee rate, prior to any performance adjustment, is 0.60% for the Worldwide Growth Portfolio, and may go up or down by a variable of up to 0.15% (assuming constant assets) on a monthly basis. Any such adjustment to this fee rate commenced February 2007, and may increase or decrease the Management Fee. Refer to "Management Expenses" in the fund's Prospectus for additional information with further description in the fund's Statement of Additional Information ("SAI"). 9 (hh) The fund has entered into an expense offset arrangement that reduces the fund's custodian fee based upon the amount of cash maintained by the fund with its custodian. Such fee reduction is not reflected in the table. Had this fee reduction been taken into account, "Total Fund Annual Expenses" would be lower. (ii) The fees designated as "Advisory Fees" reflect "Investment Management and Administration Fees". (jj) Neuberger Berman Management Inc. ("NBMI") has undertaken through December 31, 2011 to waive fees and/or reimburse certain operating expenses, including the compensation of NBMI and excluding taxes, interest, extraordinary expenses, brokerage commissions, and transaction costs, that exceed, in the aggregate, 1.25% of average daily net asset value of the Mid-Cap Growth Portfolio -- Class S shares. The expense limitation arrangements for the Portfolios are contractual and any excess expenses can be repaid to NBMI within three years of the year incurred, provided such recoupment would not cause a Portfolio to exceed its respective limitation. (kk) The fees designated as "Advisory Fees" reflect "Management Fees" and "Other Expenses." (ll) Morgan Stanley Investment Management Inc. does business in certain instances using the name Van Kampen. (mm) The Distributor has voluntarily agreed to waive 0.30% of the 0.35% 12b-1 fee that it may receive. This waiver is voluntary, and the Distributor reserves the right to terminate the waiver at any time and without notice. (nn) Effective January 1, 2008, the Adviser intends to voluntarily waive its fees and/or reimburse expenses so that the net operating expenses (excluding certain items) of the Class A shares of the Fund for any period during which this waiver or reimbursement is in effect does not exceed 1.20%. This voluntary waiver/reimbursement may be terminated at any time. 10 EXAMPLES The table below will help you understand the various costs and expenses that you will bear directly and indirectly. The table reflects the charges and expenses of the policy including, policyowner transaction expenses, contract fees, separate account annual expenses, portfolio company fees and expenses and optional rider charges where indicated. The annual policy service charge does not apply to policies with an Accumulation value of $20,000 or greater. Therefore, if your policy's Accumulation Value exceeds that amount, the expenses would be slightly lower. For more information on the charges reflected in this table, see "CHARGES AND DEDUCTIONS" and the Fund prospectuses that accompany this Prospectus. NYLIAC may, where premium taxes are imposed by state law, deduct the premium taxes upon surrender of the policy or the Annuity Commencement Date. You would pay the following expenses on a $10,000 allocation in one of the Investment Divisions listed, assuming a 5% annual return on assets: FOR POLICIES PURCHASED ON OR AFTER JUNE 2, 2003 IN SEPARATE ACCOUNT--III:
EXPENSES IF YOU EXPENSES IF YOU ANNUITIZE YOUR POLICY SURRENDER YOUR POLICY -------------------------------------- ---------------------------------------- INVESTMENT DIVISION 1 YR 3 YR 5 YR 10 YR 1 YR 3 YR 5 YR 10 YR ------------------- ------- ------- --------- --------- ------- --------- --------- --------- MAINSTAY VP BALANCED--SERVICE CLASS without any Riders...................... $927.53 $870.29 $1,482.27 $3,131.76 $927.53 $1,542.02 $1,983.04 $3,131.76 with EBB Rider.......................... $956.34 $961.58 $1,632.69 $3,422.41 $956.34 $1,627.26 $2,125.97 $3,422.41 MAINSTAY VP BOND--SERVICE CLASS without any Riders...................... $900.72 $784.80 $1,340.53 $2,853.31 $900.72 $1,462.19 $1,848.35 $2,853.31 with EBB Rider.......................... $929.61 $876.88 $1,493.17 $3,152.97 $929.61 $1,548.18 $1,993.39 $3,152.97 MAINSTAY VP CAPITAL APPRECIATION--SERVICE CLASS without any Riders...................... $911.25 $818.44 $1,396.41 $2,963.61 $911.25 $1,493.60 $1,901.45 $2,963.61 with EBB Rider.......................... $940.10 $910.21 $1,548.17 $3,259.73 $940.10 $1,579.29 $2,045.66 $3,259.73 MAINSTAY VP CASH MANAGEMENT without any Riders...................... $872.00 $692.66 $1,186.81 $2,546.27 $872.00 $1,376.15 $1,702.27 $2,546.27 with EBB Rider.......................... $900.97 $785.58 $1,341.83 $2,855.86 $900.97 $1,462.92 $1,849.58 $2,855.86 MAINSTAY VP COMMON STOCK--SERVICE CLASS without any Riders...................... $905.51 $800.10 $1,365.96 $2,903.59 $905.51 $1,476.47 $1,872.51 $2,903.59 with EBB Rider.......................... $934.38 $892.03 $1,518.19 $3,201.62 $934.38 $1,562.32 $2,017.17 $3,201.62 MAINSTAY VP CONSERVATIVE ALLOCATION--SERVICE CLASS without any Riders...................... $914.13 $827.61 $1,411.62 $2,993.49 $914.13 $1,502.17 $1,915.90 $2,993.49 with EBB Rider.......................... $942.97 $919.28 $1,563.12 $3,288.61 $942.97 $1,587.77 $2,059.86 $3,288.61 MAINSTAY VP CONVERTIBLE--SERVICE CLASS without any Riders...................... $912.21 $821.50 $1,401.48 $2,973.59 $912.21 $1,496.46 $1,906.27 $2,973.59 with EBB Rider.......................... $941.06 $913.24 $1,553.17 $3,269.37 $941.06 $1,582.12 $2,050.40 $3,269.37 MAINSTAY VP DEVELOPING GROWTH--SERVICE CLASS without any Riders...................... $937.11 $900.70 $1,532.49 $3,229.35 $937.11 $1,570.41 $2,030.76 $3,229.35 with EBB Rider.......................... $965.88 $991.70 $1,682.13 $3,516.82 $965.88 $1,655.39 $2,172.94 $3,516.82 MAINSTAY VP FLOATING RATE--SERVICE CLASS without any Riders...................... $913.17 $824.54 $1,406.53 $2,983.54 $913.17 $1,499.30 $1,911.07 $2,983.54 with EBB Rider.......................... $942.01 $916.26 $1,558.15 $3,278.99 $942.01 $1,584.94 $2,055.14 $3,278.99 EXPENSES IF YOU DO NOT SURRENDER YOUR POLICY -------------------------------------- INVESTMENT DIVISION 1 YR 3 YR 5 YR 10 YR ------------------- ------- ------- --------- --------- MAINSTAY VP BALANCED--SERVICE CLASS without any Riders...................... $283.92 $870.29 $1,482.27 $3,131.76 with EBB Rider.......................... $314.66 $961.58 $1,632.69 $3,422.41 MAINSTAY VP BOND--SERVICE CLASS without any Riders...................... $255.31 $784.80 $1,340.53 $2,853.31 with EBB Rider.......................... $286.13 $876.88 $1,493.17 $3,152.97 MAINSTAY VP CAPITAL APPRECIATION--SERVICE CLASS without any Riders...................... $266.54 $818.44 $1,396.41 $2,963.61 with EBB Rider.......................... $297.34 $910.21 $1,548.17 $3,259.73 MAINSTAY VP CASH MANAGEMENT without any Riders...................... $224.65 $692.66 $1,186.81 $2,546.27 with EBB Rider.......................... $255.57 $785.58 $1,341.83 $2,855.86 MAINSTAY VP COMMON STOCK--SERVICE CLASS without any Riders...................... $260.41 $800.10 $1,365.96 $2,903.59 with EBB Rider.......................... $291.22 $892.03 $1,518.19 $3,201.62 MAINSTAY VP CONSERVATIVE ALLOCATION--SERVICE CLASS without any Riders...................... $269.61 $827.61 $1,411.62 $2,993.49 with EBB Rider.......................... $300.40 $919.28 $1,563.12 $3,288.61 MAINSTAY VP CONVERTIBLE--SERVICE CLASS without any Riders...................... $267.57 $821.50 $1,401.48 $2,973.59 with EBB Rider.......................... $298.36 $913.24 $1,553.17 $3,269.37 MAINSTAY VP DEVELOPING GROWTH--SERVICE CLASS without any Riders...................... $294.14 $900.70 $1,532.49 $3,229.35 with EBB Rider.......................... $324.85 $991.70 $1,682.13 $3,516.82 MAINSTAY VP FLOATING RATE--SERVICE CLASS without any Riders...................... $268.59 $824.54 $1,406.53 $2,983.54 with EBB Rider.......................... $299.37 $916.26 $1,558.15 $3,278.99
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EXPENSES IF YOU EXPENSES IF YOU ANNUITIZE YOUR POLICY SURRENDER YOUR POLICY ---------------------------------------- ---------------------------------------- INVESTMENT DIVISION 1 YR 3 YR 5 YR 10 YR 1 YR 3 YR 5 YR 10 YR ------------------- ------- --------- --------- --------- ------- --------- --------- --------- MAINSTAY VP GOVERNMENT--SERVICE CLASS without any Riders................ $902.64 $ 790.92 $1,350.71 $2,873.45 $902.64 $1,467.91 $1,858.03 $2,873.45 with EBB Rider.................... $931.52 $ 882.94 $1,503.18 $3,172.46 $931.52 $1,553.83 $2,002.91 $3,172.46 MAINSTAY VP GROWTH ALLOCATION--SERVICE CLASS without any Riders................ $924.66 $ 861.15 $1,467.17 $3,102.28 $924.66 $1,533.48 $1,968.68 $3,102.28 with EBB Rider.................... $953.47 $ 952.52 $1,617.81 $3,393.89 $953.47 $1,618.80 $2,111.83 $3,393.89 MAINSTAY VP HIGH YIELD CORPORATE BOND--SERVICE CLASS without any Riders................ $907.42 $ 806.22 $1,376.12 $2,923.63 $907.42 $1,482.19 $1,882.17 $2,923.63 with EBB Rider.................... $936.28 $ 898.10 $1,528.20 $3,221.04 $936.28 $1,567.98 $2,026.68 $3,221.04 MAINSTAY VP ICAP SELECT EQUITY--SERVICE CLASS without any Riders................ $929.45 $ 876.38 $1,492.34 $3,151.37 $929.45 $1,547.71 $1,992.61 $3,151.37 with EBB Rider.................... $958.25 $ 967.61 $1,642.60 $3,441.35 $958.25 $1,632.89 $2,135.38 $3,441.35 MAINSTAY VP INTERNATIONAL EQUITY--SERVICE CLASS without any Riders................ $941.89 $ 915.87 $1,557.51 $3,277.78 $941.89 $1,584.58 $2,054.53 $3,277.78 with EBB Rider.................... $970.65 $1,006.75 $1,706.77 $3,563.68 $970.65 $1,669.44 $2,196.36 $3,563.68 MAINSTAY VP LARGE CAP GROWTH--SERVICE CLASS without any Riders................ $925.62 $ 864.20 $1,472.20 $3,112.11 $925.62 $1,536.33 $1,973.46 $3,112.11 with EBB Rider.................... $954.43 $ 955.54 $1,622.78 $3,403.39 $954.43 $1,621.62 $2,116.55 $3,403.39 MAINSTAY VP MID CAP CORE--SERVICE CLASS without any Riders................ $936.15 $ 897.66 $1,527.48 $3,219.63 $936.15 $1,567.57 $2,026.00 $3,219.63 with EBB Rider.................... $964.92 $ 988.69 $1,677.19 $3,507.42 $964.92 $1,652.58 $2,168.25 $3,507.42 MAINSTAY VP MID CAP GROWTH--SERVICE CLASS without any Riders................ $925.62 $ 864.20 $1,472.20 $3,112.11 $925.62 $1,536.33 $1,973.46 $3,112.11 with EBB Rider.................... $954.43 $ 955.54 $1,622.78 $3,403.39 $954.43 $1,621.62 $2,116.55 $3,403.39 MAINSTAY VP MID CAP VALUE--SERVICE CLASS without any Riders................ $921.79 $ 852.01 $1,452.03 $3,072.74 $921.79 $1,524.95 $1,954.30 $3,072.74 with EBB Rider.................... $950.61 $ 943.46 $1,602.92 $3,365.30 $950.61 $1,610.34 $2,097.68 $3,365.30 MAINSTAY VP MODERATE ALLOCATION--SERVICE CLASS without any Riders................ $915.08 $ 830.66 $1,416.67 $3,003.43 $915.08 $1,505.01 $1,920.70 $3,003.43 with EBB Rider.................... $943.92 $ 922.30 $1,568.12 $3,298.25 $943.92 $1,590.59 $2,064.61 $3,298.25 MAINSTAY VP MODERATE GROWTH ALLOCATION--SERVICE CLASS without any Riders................ $918.91 $ 842.87 $1,436.90 $3,043.09 $918.91 $1,516.41 $1,939.92 $3,043.09 with EBB Rider.................... $947.74 $ 934.40 $1,588.02 $3,336.61 $947.74 $1,601.89 $2,083.52 $3,336.61 MAINSTAY VP S&P 500 INDEX--SERVICE CLASS without any Riders................ $880.61 $ 720.36 $1,233.12 $2,639.32 $880.61 $1,402.02 $1,746.28 $2,639.32 with EBB Rider.................... $909.55 $ 813.02 $1,387.41 $2,945.92 $909.55 $1,488.54 $1,892.90 $2,945.92 MAINSTAY VP SMALL CAP GROWTH--SERVICE CLASS without any Riders................ $940.94 $ 912.84 $1,552.52 $3,268.12 $940.94 $1,581.75 $2,049.79 $3,268.12 with EBB Rider.................... $969.70 $1,003.74 $1,701.85 $3,554.34 $969.70 $1,666.63 $2,191.68 $3,554.34 MAINSTAY VP TOTAL RETURN--SERVICE CLASS without any Riders................ $909.34 $ 812.33 $1,386.26 $2,943.64 $909.34 $1,487.90 $1,891.80 $2,943.64 with EBB Rider.................... $938.19 $ 904.15 $1,538.19 $3,240.39 $938.19 $1,573.64 $2,036.17 $3,240.39 EXPENSES IF YOU DO NOT SURRENDER YOUR POLICY ---------------------------------------- INVESTMENT DIVISION 1 YR 3 YR 5 YR 10 YR ------------------- ------- --------- --------- --------- MAINSTAY VP GOVERNMENT--SERVICE CLASS without any Riders................ $257.35 $ 790.92 $1,350.71 $2,873.45 with EBB Rider.................... $288.17 $ 882.94 $1,503.18 $3,172.46 MAINSTAY VP GROWTH ALLOCATION--SERVICE CLASS without any Riders................ $280.85 $ 861.15 $1,467.17 $3,102.28 with EBB Rider.................... $311.60 $ 952.52 $1,617.81 $3,393.89 MAINSTAY VP HIGH YIELD CORPORATE BOND--SERVICE CLASS without any Riders................ $262.46 $ 806.22 $1,376.12 $2,923.63 with EBB Rider.................... $293.26 $ 898.10 $1,528.20 $3,221.04 MAINSTAY VP ICAP SELECT EQUITY--SERVICE CLASS without any Riders................ $285.96 $ 876.38 $1,492.34 $3,151.37 with EBB Rider.................... $316.70 $ 967.61 $1,642.60 $3,441.35 MAINSTAY VP INTERNATIONAL EQUITY--SERVICE CLASS without any Riders................ $299.24 $ 915.87 $1,557.51 $3,277.78 with EBB Rider.................... $329.94 $1,006.75 $1,706.77 $3,563.68 MAINSTAY VP LARGE CAP GROWTH--SERVICE CLASS without any Riders................ $281.88 $ 864.20 $1,472.20 $3,112.11 with EBB Rider.................... $312.62 $ 955.54 $1,622.78 $3,403.39 MAINSTAY VP MID CAP CORE--SERVICE CLASS without any Riders................ $293.11 $ 897.66 $1,527.48 $3,219.63 with EBB Rider.................... $323.83 $ 988.69 $1,677.19 $3,507.42 MAINSTAY VP MID CAP GROWTH--SERVICE CLASS without any Riders................ $281.88 $ 864.20 $1,472.20 $3,112.11 with EBB Rider.................... $312.62 $ 955.54 $1,622.78 $3,403.39 MAINSTAY VP MID CAP VALUE--SERVICE CLASS without any Riders................ $277.79 $ 852.01 $1,452.03 $3,072.74 with EBB Rider.................... $308.55 $ 943.46 $1,602.92 $3,365.30 MAINSTAY VP MODERATE ALLOCATION--SERVICE CLASS without any Riders................ $270.63 $ 830.66 $1,416.67 $3,003.43 with EBB Rider.................... $301.41 $ 922.30 $1,568.12 $3,298.25 MAINSTAY VP MODERATE GROWTH ALLOCATION--SERVICE CLASS without any Riders................ $274.72 $ 842.87 $1,436.90 $3,043.09 with EBB Rider.................... $305.49 $ 934.40 $1,588.02 $3,336.61 MAINSTAY VP S&P 500 INDEX--SERVICE CLASS without any Riders................ $233.84 $ 720.36 $1,233.12 $2,639.32 with EBB Rider.................... $264.73 $ 813.02 $1,387.41 $2,945.92 MAINSTAY VP SMALL CAP GROWTH--SERVICE CLASS without any Riders................ $298.23 $ 912.84 $1,552.52 $3,268.12 with EBB Rider.................... $328.92 $1,003.74 $1,701.85 $3,554.34 MAINSTAY VP TOTAL RETURN--SERVICE CLASS without any Riders................ $264.50 $ 812.33 $1,386.26 $2,943.64 with EBB Rider.................... $295.30 $ 904.15 $1,538.19 $3,240.39
12
EXPENSES IF YOU EXPENSES IF YOU ANNUITIZE YOUR POLICY SURRENDER YOUR POLICY ---------------------------------------- ---------------------------------------- INVESTMENT DIVISION 1 YR 3 YR 5 YR 10 YR 1 YR 3 YR 5 YR 10 YR ------------------- ------- --------- --------- --------- ------- --------- --------- --------- MAINSTAY VP VALUE--SERVICE CLASS* without any Riders................ $907.42 $ 806.22 $1,376.12 $2,923.63 $907.42 $1,482.19 $1,882.17 $2,923.63 with EBB Rider.................... $936.28 $ 898.10 $1,528.20 $3,221.04 $936.28 $1,567.98 $2,026.68 $3,221.04 ALGER AMERICAN SMALLCAP GROWTH--CLASS S SHARES** without any Riders................ $940.94 $ 912.84 $1,552.52 $3,268.12 $940.94 $1,581.75 $2,049.79 $3,268.12 with EBB Rider.................... $969.70 $1,003.74 $1,701.85 $3,554.34 $969.70 $1,666.63 $2,191.68 $3,554.34 CVS CALVERT SOCIAL BALANCED PORTFOLIO without any Riders................ $911.25 $ 818.44 $1,396.41 $2,963.61 $911.25 $1,493.60 $1,901.45 $2,963.61 with EBB Rider.................... $940.10 $ 910.21 $1,548.17 $3,259.73 $940.10 $1,579.29 $2,045.66 $3,259.73 COLUMBIA SMALL CAP VALUE FUND, VARIABLE SERIES--CLASS B without any Riders................ $934.23 $ 891.58 $1,517.44 $3,200.16 $934.23 $1,561.89 $2,016.45 $3,200.16 with EBB Rider.................... $963.02 $ 982.67 $1,667.32 $3,488.60 $963.02 $1,646.95 $2,158.87 $3,488.60 DREYFUS IP TECHNOLOGY GROWTH--SERVICE SHARES without any Riders................ $930.40 $ 879.41 $1,497.35 $3,161.14 $930.40 $1,550.54 $1,997.37 $3,161.14 with EBB Rider.................... $959.20 $ 970.62 $1,647.54 $3,450.82 $959.20 $1,635.70 $2,140.08 $3,450.82 FIDELITY(R) VIP CONTRAFUND(R)--SERVICE CLASS 2 without any Riders................ $911.25 $ 818.44 $1,396.41 $2,963.61 $911.25 $1,493.60 $1,901.45 $2,963.61 with EBB Rider.................... $940.10 $ 910.21 $1,548.17 $3,259.73 $940.10 $1,579.29 $2,045.66 $3,259.73 FIDELITY(R) VIP EQUITY- INCOME--SERVICE CLASS 2 without any Riders................ $901.68 $ 787.85 $1,345.61 $2,863.37 $901.68 $1,465.04 $1,853.18 $2,863.37 with EBB Rider.................... $930.56 $ 879.91 $1,498.17 $3,162.72 $930.56 $1,551.00 $1,998.14 $3,162.72 FIDELITY(R) VIP MID CAP--SERVICE CLASS 2 without any Riders................ $912.21 $ 821.50 $1,401.48 $2,973.59 $912.21 $1,496.46 $1,906.27 $2,973.59 with EBB Rider.................... $941.06 $ 913.24 $1,553.17 $3,269.37 $941.06 $1,582.12 $2,050.40 $3,269.37 JANUS ASPEN SERIES BALANCED--SERVICE SHARES without any Riders................ $903.59 $ 793.98 $1,355.80 $2,883.50 $903.59 $1,470.76 $1,862.85 $2,883.50 with EBB Rider.................... $932.47 $ 885.98 $1,508.19 $3,182.20 $932.47 $1,556.67 $2,007.67 $3,182.20 JANUS ASPEN SERIES WORLDWIDE GROWTH--SERVICE SHARES without any Riders................ $913.17 $ 824.54 $1,406.53 $2,983.54 $913.17 $1,499.30 $1,911.07 $2,983.54 with EBB Rider.................... $942.01 $ 916.26 $1,558.15 $3,278.99 $942.01 $1,584.94 $2,055.14 $3,278.99 MFS(R) INVESTORS TRUST SERIES--SERVICE CLASS without any Riders................ $930.40 $ 879.41 $1,497.35 $3,161.14 $930.40 $1,550.54 $1,997.37 $3,161.14 with EBB Rider.................... $959.20 $ 970.62 $1,647.54 $3,450.82 $959.20 $1,635.70 $2,140.08 $3,450.82 MFS(R) RESEARCH SERIES--SERVICE CLASS without any Riders................ $933.28 $ 888.54 $1,512.43 $3,190.43 $933.28 $1,559.06 $2,011.69 $3,190.43 with EBB Rider.................... $962.07 $ 979.66 $1,662.37 $3,479.15 $962.07 $1,644.14 $2,154.17 $3,479.15 EXPENSES IF YOU DO NOT SURRENDER YOUR POLICY ---------------------------------------- INVESTMENT DIVISION 1 YR 3 YR 5 YR 10 YR ------------------- ------- --------- --------- --------- MAINSTAY VP VALUE--SERVICE CLASS* without any Riders................ $262.46 $ 806.22 $1,376.12 $2,923.63 with EBB Rider.................... $293.26 $ 898.10 $1,528.20 $3,221.04 ALGER AMERICAN SMALLCAP GROWTH--CLASS S SHARES** without any Riders................ $298.23 $ 912.84 $1,552.52 $3,268.12 with EBB Rider.................... $328.92 $1,003.74 $1,701.85 $3,554.34 CVS CALVERT SOCIAL BALANCED PORTFOLIO without any Riders................ $266.54 $ 818.44 $1,396.41 $2,963.61 with EBB Rider.................... $297.34 $ 910.21 $1,548.17 $3,259.73 COLUMBIA SMALL CAP VALUE FUND, VARIABLE SERIES--CLASS B without any Riders................ $291.07 $ 891.58 $1,517.44 $3,200.16 with EBB Rider.................... $321.79 $ 982.67 $1,667.32 $3,488.60 DREYFUS IP TECHNOLOGY GROWTH--SERVICE SHARES without any Riders................ $286.98 $ 879.41 $1,497.35 $3,161.14 with EBB Rider.................... $317.71 $ 970.62 $1,647.54 $3,450.82 FIDELITY(R) VIP CONTRAFUND(R)--SERVICE CLASS 2 without any Riders................ $266.54 $ 818.44 $1,396.41 $2,963.61 with EBB Rider.................... $297.34 $ 910.21 $1,548.17 $3,259.73 FIDELITY(R) VIP EQUITY- INCOME--SERVICE CLASS 2 without any Riders................ $256.32 $ 787.85 $1,345.61 $2,863.37 with EBB Rider.................... $287.15 $ 879.91 $1,498.17 $3,162.72 FIDELITY(R) VIP MID CAP--SERVICE CLASS 2 without any Riders................ $267.57 $ 821.50 $1,401.48 $2,973.59 with EBB Rider.................... $298.36 $ 913.24 $1,553.17 $3,269.37 JANUS ASPEN SERIES BALANCED--SERVICE SHARES without any Riders................ $258.37 $ 793.98 $1,355.80 $2,883.50 with EBB Rider.................... $289.18 $ 885.98 $1,508.19 $3,182.20 JANUS ASPEN SERIES WORLDWIDE GROWTH--SERVICE SHARES without any Riders................ $268.59 $ 824.54 $1,406.53 $2,983.54 with EBB Rider.................... $299.37 $ 916.26 $1,558.15 $3,278.99 MFS(R) INVESTORS TRUST SERIES--SERVICE CLASS without any Riders................ $286.98 $ 879.41 $1,497.35 $3,161.14 with EBB Rider.................... $317.71 $ 970.62 $1,647.54 $3,450.82 MFS(R) RESEARCH SERIES--SERVICE CLASS without any Riders................ $290.05 $ 888.54 $1,512.43 $3,190.43 with EBB Rider.................... $320.77 $ 979.66 $1,662.37 $3,479.15
* The MainStay VP Value portfolio will merge with and into the MainStay VP ICAP Select Equity portfolio on May 16, 2008. ** No premiums or transfers will be accepted into this Investment Division from policyowners who did not have a portion of their Accumulation Value allocated to this Investment Division prior to June 1, 2007. Policyowners who remove all Accumulation Value allocations from this Investment Division will not be permitted to reallocate any portion of their Accumulation Value to this Investment Division. 13
EXPENSES IF YOU EXPENSES IF YOU ANNUITIZE YOUR POLICY SURRENDER YOUR POLICY ------------------------------------------ ------------------------------------------ INVESTMENT DIVISION 1 YR 3 YR 5 YR 10 YR 1 YR 3 YR 5 YR 10 YR ------------------- --------- --------- --------- --------- --------- --------- --------- --------- MFS(R) UTILITIES SERIES--SERVICE CLASS without any Riders.............. $ 930.40 $ 879.41 $1,497.35 $3,161.14 $ 930.40 $1,550.54 $1,997.37 $3,161.14 with EBB Rider.................. $ 959.20 $ 970.62 $1,647.54 $3,450.82 $ 959.20 $1,635.70 $2,140.08 $3,450.82 NEUBERGER BERMAN AMT MID-CAP GROWTH PORTFOLIO--CLASS S without any Riders.............. $ 934.23 $ 891.58 $1,517.44 $3,200.16 $ 934.23 $1,561.89 $2,016.45 $3,200.16 with EBB Rider.................. $ 963.02 $ 982.67 $1,667.32 $3,488.60 $ 963.02 $1,646.95 $2,158.87 $3,488.60 ROYCE MICRO-CAP PORTFOLIO--INVESTMENT CLASS without any Riders.............. $ 950.51 $ 943.17 $1,602.45 $3,364.36 $ 950.51 $1,610.08 $2,097.23 $3,364.36 with EBB Rider.................. $ 979.25 $1,033.79 $1,750.99 $3,647.45 $ 979.25 $1,694.69 $2,238.38 $3,647.45 ROYCE SMALL-CAP PORTFOLIO--INVESTMENT CLASS without any Riders.............. $ 928.49 $ 873.33 $1,487.30 $3,141.56 $ 928.49 $1,544.86 $1,987.82 $3,141.56 with EBB Rider.................. $ 957.29 $ 964.59 $1,637.66 $3,431.90 $ 957.29 $1,630.08 $2,130.69 $3,431.90 T. ROWE PRICE EQUITY INCOME PORTFOLIO II without any Riders.............. $ 930.40 $ 879.41 $1,497.35 $3,161.14 $ 930.40 $1,550.54 $1,997.37 $3,161.14 with EBB Rider.................. $ 959.20 $ 970.62 $1,647.54 $3,450.82 $ 959.20 $1,635.70 $2,140.08 $3,450.82 VAN ECK WORLDWIDE HARD ASSETS without any Riders.............. $ 921.79 $ 852.01 $1,452.03 $3,072.74 $ 921.79 $1,524.95 $1,954.30 $3,072.74 with EBB Rider.................. $ 950.61 $ 943.46 $1,602.92 $3,365.30 $ 950.61 $1,610.34 $2,097.68 $3,365.30 VAN KAMPEN UIF EMERGING MARKETS EQUITY--CLASS II without any Riders.............. $1,009.88 $1,129.77 $1,907.29 $3,940.01 $1,009.88 $1,784.31 $2,386.88 $3,940.01 with EBB Rider.................. $1,038.44 $1,218.67 $2,051.09 $4,204.36 $1,038.44 $1,867.32 $2,523.51 $4,204.36 VICTORY VIF DIVERSIFIED STOCK--CLASS A SHARES without any Riders.............. $ 943.81 $ 921.95 $1,567.51 $3,297.08 $ 943.81 $1,590.25 $2,064.03 $3,297.08 with EBB Rider.................. $ 972.56 $1,012.76 $1,716.61 $3,582.36 $ 972.56 $1,675.05 $2,205.71 $3,582.36 EXPENSES IF YOU DO NOT SURRENDER YOUR POLICY ---------------------------------------- INVESTMENT DIVISION 1 YR 3 YR 5 YR 10 YR ------------------- ------- --------- --------- --------- MFS(R) UTILITIES SERIES--SERVICE CLASS without any Riders.............. $286.98 $ 879.41 $1,497.35 $3,161.14 with EBB Rider.................. $317.71 $ 970.62 $1,647.54 $3,450.82 NEUBERGER BERMAN AMT MID-CAP GROWTH PORTFOLIO--CLASS S without any Riders.............. $291.07 $ 891.58 $1,517.44 $3,200.16 with EBB Rider.................. $321.79 $ 982.67 $1,667.32 $3,488.60 ROYCE MICRO-CAP PORTFOLIO--INVESTMENT CLASS without any Riders.............. $308.45 $ 943.17 $1,602.45 $3,364.36 with EBB Rider.................. $339.11 $1,033.79 $1,750.99 $3,647.45 ROYCE SMALL-CAP PORTFOLIO--INVESTMENT CLASS without any Riders.............. $284.94 $ 873.33 $1,487.30 $3,141.56 with EBB Rider.................. $315.67 $ 964.59 $1,637.66 $3,431.90 T. ROWE PRICE EQUITY INCOME PORTFOLIO II without any Riders.............. $286.98 $ 879.41 $1,497.35 $3,161.14 with EBB Rider.................. $317.71 $ 970.62 $1,647.54 $3,450.82 VAN ECK WORLDWIDE HARD ASSETS without any Riders.............. $277.79 $ 852.01 $1,452.03 $3,072.74 with EBB Rider.................. $308.55 $ 943.46 $1,602.92 $3,365.30 VAN KAMPEN UIF EMERGING MARKETS EQUITY--CLASS II without any Riders.............. $371.81 $1,129.77 $1,907.29 $3,940.01 with EBB Rider.................. $402.28 $1,218.67 $2,051.09 $4,204.36 VICTORY VIF DIVERSIFIED STOCK--CLASS A SHARES without any Riders.............. $301.29 $ 921.95 $1,567.51 $3,297.08 with EBB Rider.................. $331.98 $1,012.76 $1,716.61 $3,582.36
14 FOR POLICIES PURCHASED PRIOR TO JUNE 2, 2003 IN SEPARATE ACCOUNT--III:
EXPENSES IF YOU EXPENSES IF YOU ANNUITIZE YOUR POLICY SURRENDER YOUR POLICY -------------------------------------- ---------------------------------------- INVESTMENT DIVISION 1 YR 3 YR 5 YR 10 YR 1 YR 3 YR 5 YR 10 YR ------------------- ------- ------- --------- --------- ------- --------- --------- --------- MAINSTAY VP BALANCED--SERVICE CLASS without any Riders................... $927.53 $870.29 $1,482.27 $3,131.76 $927.53 $1,542.02 $1,983.04 $3,131.76 with EBB Rider....................... $956.34 $961.58 $1,632.69 $3,422.41 $956.34 $1,627.26 $2,125.97 $3,422.41 MAINSTAY VP BOND--INITIAL CLASS without any Riders................... $876.78 $708.05 $1,212.55 $2,598.05 $876.78 $1,390.52 $1,726.73 $2,598.05 with EBB Rider....................... $905.74 $800.83 $1,367.18 $2,905.99 $905.74 $1,477.16 $1,873.67 $2,905.99 MAINSTAY VP CAPITAL APPRECIATION--INITIAL CLASS without any Riders................... $887.32 $741.88 $1,269.03 $2,711.14 $887.32 $1,422.11 $1,780.41 $2,711.14 with EBB Rider....................... $916.24 $834.35 $1,422.79 $3,015.43 $916.24 $1,508.45 $1,926.51 $3,015.43 MAINSTAY VP CASH MANAGEMENT without any Riders................... $872.00 $692.66 $1,186.81 $2,546.27 $872.00 $1,376.15 $1,702.27 $2,546.27 with EBB Rider....................... $900.97 $785.58 $1,341.83 $2,855.86 $900.97 $1,462.92 $1,849.58 $2,855.86 MAINSTAY VP COMMON STOCK--INITIAL CLASS without any Riders................... $881.57 $723.43 $1,238.25 $2,649.60 $881.57 $1,404.88 $1,751.15 $2,649.60 with EBB Rider....................... $910.51 $816.07 $1,392.48 $2,955.89 $910.51 $1,491.39 $1,897.72 $2,955.89 MAINSTAY VP CONSERVATIVE ALLOCATION--SERVICE CLASS without any Riders................... $914.13 $827.61 $1,411.62 $2,993.49 $914.13 $1,502.17 $1,915.90 $2,993.49 with EBB Rider....................... $942.97 $919.28 $1,563.12 $3,288.61 $942.97 $1,587.77 $2,059.86 $3,288.61 MAINSTAY VP CONVERTIBLE--INITIAL CLASS without any Riders................... $888.27 $744.95 $1,274.16 $2,721.37 $888.27 $1,424.98 $1,785.28 $2,721.37 with EBB Rider....................... $917.19 $837.39 $1,427.83 $3,025.32 $917.19 $1,511.29 $1,931.30 $3,025.32 MAINSTAY VP DEVELOPING GROWTH--INITIAL CLASS without any Riders................... $913.17 $824.54 $1,406.53 $2,983.54 $913.17 $1,499.30 $1,911.07 $2,983.54 with EBB Rider....................... $942.01 $916.26 $1,558.15 $3,278.99 $942.01 $1,584.94 $2,055.14 $3,278.99 MAINSTAY VP FLOATING RATE--SERVICE CLASS without any Riders................... $913.17 $824.54 $1,406.53 $2,983.54 $913.17 $1,499.30 $1,911.07 $2,983.54 with EBB Rider....................... $942.01 $916.26 $1,558.15 $3,278.99 $942.01 $1,584.94 $2,055.14 $3,278.99 MAINSTAY VP GOVERNMENT--INITIAL CLASS without any Riders................... $878.69 $714.21 $1,222.85 $2,618.72 $878.69 $1,396.27 $1,736.52 $2,618.72 with EBB Rider....................... $907.64 $806.94 $1,377.31 $2,925.98 $907.64 $1,482.86 $1,883.30 $2,925.98 MAINSTAY VP GROWTH ALLOCATION--SERVICE CLASS without any Riders................... $924.66 $861.15 $1,467.17 $3,102.28 $924.66 $1,533.48 $1,968.68 $3,102.28 with EBB Rider....................... $953.47 $952.52 $1,617.81 $3,393.89 $953.47 $1,618.80 $2,111.83 $3,393.89 MAINSTAY VP HIGH YIELD CORPORATE BOND--INITIAL CLASS without any Riders................... $883.49 $729.59 $1,248.54 $2,670.18 $883.49 $1,410.64 $1,760.93 $2,670.18 with EBB Rider....................... $912.42 $822.17 $1,402.59 $2,975.77 $912.42 $1,497.08 $1,907.32 $2,975.77 MAINSTAY VP ICAP SELECT EQUITY--INITIAL CLASS without any Riders................... $905.51 $800.10 $1,365.96 $2,903.59 $905.51 $1,476.47 $1,872.51 $2,903.59 with EBB Rider....................... $934.38 $892.03 $1,518.19 $3,201.62 $934.38 $1,562.32 $2,017.17 $3,201.62 EXPENSES IF YOU DO NOT SURRENDER YOUR POLICY -------------------------------------- INVESTMENT DIVISION 1 YR 3 YR 5 YR 10 YR ------------------- ------- ------- --------- --------- MAINSTAY VP BALANCED--SERVICE CLASS without any Riders................... $283.92 $870.29 $1,482.27 $3,131.76 with EBB Rider....................... $314.66 $961.58 $1,632.69 $3,422.41 MAINSTAY VP BOND--INITIAL CLASS without any Riders................... $229.75 $708.05 $1,212.55 $2,598.05 with EBB Rider....................... $260.66 $800.83 $1,367.18 $2,905.99 MAINSTAY VP CAPITAL APPRECIATION--INITIAL CLASS without any Riders................... $241.00 $741.88 $1,269.03 $2,711.14 with EBB Rider....................... $271.87 $834.35 $1,422.79 $3,015.43 MAINSTAY VP CASH MANAGEMENT without any Riders................... $224.65 $692.66 $1,186.81 $2,546.27 with EBB Rider....................... $255.57 $785.58 $1,341.83 $2,855.86 MAINSTAY VP COMMON STOCK--INITIAL CLASS without any Riders................... $234.87 $723.43 $1,238.25 $2,649.60 with EBB Rider....................... $265.76 $816.07 $1,392.48 $2,955.89 MAINSTAY VP CONSERVATIVE ALLOCATION--SERVICE CLASS without any Riders................... $269.61 $827.61 $1,411.62 $2,993.49 with EBB Rider....................... $300.40 $919.28 $1,563.12 $3,288.61 MAINSTAY VP CONVERTIBLE--INITIAL CLASS without any Riders................... $242.02 $744.95 $1,274.16 $2,721.37 with EBB Rider....................... $272.88 $837.39 $1,427.83 $3,025.32 MAINSTAY VP DEVELOPING GROWTH--INITIAL CLASS without any Riders................... $268.59 $824.54 $1,406.53 $2,983.54 with EBB Rider....................... $299.37 $916.26 $1,558.15 $3,278.99 MAINSTAY VP FLOATING RATE--SERVICE CLASS without any Riders................... $268.59 $824.54 $1,406.53 $2,983.54 with EBB Rider....................... $299.37 $916.26 $1,558.15 $3,278.99 MAINSTAY VP GOVERNMENT--INITIAL CLASS without any Riders................... $231.80 $714.21 $1,222.85 $2,618.72 with EBB Rider....................... $262.69 $806.94 $1,377.31 $2,925.98 MAINSTAY VP GROWTH ALLOCATION--SERVICE CLASS without any Riders................... $280.85 $861.15 $1,467.17 $3,102.28 with EBB Rider....................... $311.60 $952.52 $1,617.81 $3,393.89 MAINSTAY VP HIGH YIELD CORPORATE BOND--INITIAL CLASS without any Riders................... $236.91 $729.59 $1,248.54 $2,670.18 with EBB Rider....................... $267.79 $822.17 $1,402.59 $2,975.77 MAINSTAY VP ICAP SELECT EQUITY--INITIAL CLASS without any Riders................... $260.41 $800.10 $1,365.96 $2,903.59 with EBB Rider....................... $291.22 $892.03 $1,518.19 $3,201.62
15
EXPENSES IF YOU EXPENSES IF YOU ANNUITIZE YOUR POLICY SURRENDER YOUR POLICY -------------------------------------- ---------------------------------------- INVESTMENT DIVISION 1 YR 3 YR 5 YR 10 YR 1 YR 3 YR 5 YR 10 YR ------------------- ------- ------- --------- --------- ------- --------- --------- --------- MAINSTAY VP INTERNATIONAL EQUITY--INITIAL CLASS without any Riders................... $917.96 $839.81 $1,431.83 $3,033.19 $917.96 $1,513.56 $1,935.11 $3,033.19 with EBB Rider....................... $946.79 $931.38 $1,583.05 $3,327.04 $946.79 $1,599.06 $2,078.80 $3,327.04 MAINSTAY VP LARGE CAP GROWTH--INITIAL CLASS without any Riders................... $901.68 $787.85 $1,345.61 $2,863.37 $901.68 $1,465.04 $1,853.18 $2,863.37 with EBB Rider....................... $930.56 $879.91 $1,498.17 $3,162.72 $930.56 $1,551.00 $1,998.14 $3,162.72 MAINSTAY VP MID CAP CORE--INITIAL CLASS without any Riders................... $912.21 $821.50 $1,401.48 $2,973.59 $912.21 $1,496.46 $1,906.27 $2,973.59 with EBB Rider....................... $941.06 $913.24 $1,553.17 $3,269.37 $941.06 $1,582.12 $2,050.40 $3,269.37 MAINSTAY VP MID CAP GROWTH--INITIAL CLASS without any Riders................... $901.68 $787.85 $1,345.61 $2,863.37 $901.68 $1,465.04 $1,853.18 $2,863.37 with EBB Rider....................... $930.56 $879.91 $1,498.17 $3,162.72 $930.56 $1,551.00 $1,998.14 $3,162.72 MAINSTAY VP MID CAP VALUE--INITIAL CLASS without any Riders................... $897.84 $775.62 $1,325.25 $2,823.00 $897.84 $1,453.62 $1,833.83 $2,823.00 with EBB Rider....................... $926.74 $867.77 $1,478.11 $3,123.66 $926.74 $1,539.66 $1,979.08 $3,123.66 MAINSTAY VP MODERATE ALLOCATION--SERVICE CLASS without any Riders................... $915.08 $830.66 $1,416.67 $3,003.43 $915.08 $1,505.01 $1,920.70 $3,003.43 with EBB Rider....................... $943.92 $922.30 $1,568.12 $3,298.25 $943.92 $1,590.59 $2,064.61 $3,298.25 MAINSTAY VP MODERATE GROWTH ALLOCATION--SERVICE CLASS without any Riders................... $918.91 $842.87 $1,436.90 $3,043.09 $918.91 $1,516.41 $1,939.92 $3,043.09 with EBB Rider....................... $947.74 $934.40 $1,588.02 $3,336.61 $947.74 $1,601.89 $2,083.52 $3,336.61 MAINSTAY VP S&P 500 INDEX--INITIAL CLASS without any Riders................... $856.68 $643.29 $1,104.03 $2,378.75 $856.68 $1,330.05 $1,623.61 $2,378.75 with EBB Rider....................... $885.69 $736.66 $1,260.35 $2,693.78 $885.69 $1,417.24 $1,772.15 $2,693.78 MAINSTAY VP SMALL CAP GROWTH--INITIAL CLASS without any Riders................... $917.00 $836.76 $1,426.78 $3,023.28 $917.00 $1,510.71 $1,930.31 $3,023.28 with EBB Rider....................... $945.83 $928.35 $1,578.07 $3,317.45 $945.83 $1,596.23 $2,074.07 $3,317.45 MAINSTAY VP TOTAL RETURN--INITIAL CLASS without any Riders................... $885.40 $735.74 $1,258.79 $2,690.68 $885.40 $1,416.37 $1,770.68 $2,690.68 with EBB Rider....................... $914.33 $828.25 $1,412.68 $2,995.62 $914.33 $1,502.76 $1,916.91 $2,995.62 MAINSTAY VP VALUE--INITIAL CLASS* without any Riders................... $883.49 $729.59 $1,248.54 $2,670.18 $883.49 $1,410.64 $1,760.93 $2,670.18 with EBB Rider....................... $912.42 $822.17 $1,402.59 $2,975.77 $912.42 $1,497.08 $1,907.32 $2,975.77 ALGER AMERICAN SMALLCAP GROWTH--CLASS O SHARES** without any Riders................... $917.00 $836.76 $1,426.78 $3,023.28 $917.00 $1,510.71 $1,930.31 $3,023.28 with EBB Rider....................... $945.83 $928.35 $1,578.07 $3,317.45 $945.83 $1,596.23 $2,074.07 $3,317.45 EXPENSES IF YOU DO NOT SURRENDER YOUR POLICY -------------------------------------- INVESTMENT DIVISION 1 YR 3 YR 5 YR 10 YR ------------------- ------- ------- --------- --------- MAINSTAY VP INTERNATIONAL EQUITY--INITIAL CLASS without any Riders................... $273.70 $839.81 $1,431.83 $3,033.19 with EBB Rider....................... $304.47 $931.38 $1,583.05 $3,327.04 MAINSTAY VP LARGE CAP GROWTH--INITIAL CLASS without any Riders................... $256.32 $787.85 $1,345.61 $2,863.37 with EBB Rider....................... $287.15 $879.91 $1,498.17 $3,162.72 MAINSTAY VP MID CAP CORE--INITIAL CLASS without any Riders................... $267.57 $821.50 $1,401.48 $2,973.59 with EBB Rider....................... $298.36 $913.24 $1,553.17 $3,269.37 MAINSTAY VP MID CAP GROWTH--INITIAL CLASS without any Riders................... $256.32 $787.85 $1,345.61 $2,863.37 with EBB Rider....................... $287.15 $879.91 $1,498.17 $3,162.72 MAINSTAY VP MID CAP VALUE--INITIAL CLASS without any Riders................... $252.24 $775.62 $1,325.25 $2,823.00 with EBB Rider....................... $283.07 $867.77 $1,478.11 $3,123.66 MAINSTAY VP MODERATE ALLOCATION--SERVICE CLASS without any Riders................... $270.63 $830.66 $1,416.67 $3,003.43 with EBB Rider....................... $301.41 $922.30 $1,568.12 $3,298.25 MAINSTAY VP MODERATE GROWTH ALLOCATION--SERVICE CLASS without any Riders................... $274.72 $842.87 $1,436.90 $3,043.09 with EBB Rider....................... $305.49 $934.40 $1,588.02 $3,336.61 MAINSTAY VP S&P 500 INDEX--INITIAL CLASS without any Riders................... $208.30 $643.29 $1,104.03 $2,378.75 with EBB Rider....................... $239.27 $736.66 $1,260.35 $2,693.78 MAINSTAY VP SMALL CAP GROWTH--INITIAL CLASS without any Riders................... $272.67 $836.76 $1,426.78 $3,023.28 with EBB Rider....................... $303.45 $928.35 $1,578.07 $3,317.45 MAINSTAY VP TOTAL RETURN--INITIAL CLASS without any Riders................... $238.96 $735.74 $1,258.79 $2,690.68 with EBB Rider....................... $269.83 $828.25 $1,412.68 $2,995.62 MAINSTAY VP VALUE--INITIAL CLASS* without any Riders................... $236.91 $729.59 $1,248.54 $2,670.18 with EBB Rider....................... $267.79 $822.17 $1,402.59 $2,975.77 ALGER AMERICAN SMALLCAP GROWTH--CLASS O SHARES** without any Riders................... $272.67 $836.76 $1,426.78 $3,023.28 with EBB Rider....................... $303.45 $928.35 $1,578.07 $3,317.45
* The MainStay VP Value portfolio will merge with and into the MainStay VP ICAP Select Equity portfolio on May 16, 2008. ** No premiums or transfers will be accepted into this Investment Division from policyowners who did not have a portion of their Accumulation Value allocated to this Investment Division prior to June 1, 2007. Policyowners who remove all Accumulation Value allocations from this Investment Division will not be permitted to reallocate any portion of their Accumulation Value to this Investment Division. 16
EXPENSES IF YOU EXPENSES IF YOU ANNUITIZE YOUR POLICY SURRENDER YOUR POLICY -------------------------------------- ---------------------------------------- INVESTMENT DIVISION 1 YR 3 YR 5 YR 10 YR 1 YR 3 YR 5 YR 10 YR ------------------- ------- ------- --------- --------- ------- --------- --------- --------- CVS CALVERT SOCIAL BALANCED PORTFOLIO without any Riders................... $911.25 $818.44 $1,396.41 $2,963.61 $911.25 $1,493.60 $1,901.45 $2,963.61 with EBB Rider....................... $940.10 $910.21 $1,548.17 $3,259.73 $940.10 $1,579.29 $2,045.66 $3,259.73 COLUMBIA SMALL CAP VALUE FUND, VARIABLE SERIES CLASS B without any Riders................... $934.23 $891.58 $1,517.44 $3,200.16 $934.23 $1,561.89 $2,016.45 $3,200.16 with EBB Rider....................... $963.02 $982.67 $1,667.32 $3,488.60 $963.02 $1,646.95 $2,158.87 $3,488.60 DREYFUS IP TECHNOLOGY GROWTH--INITIAL SHARES without any Riders................... $906.47 $803.17 $1,371.05 $2,913.63 $906.47 $1,479.34 $1,877.35 $2,913.63 with EBB Rider....................... $935.33 $895.08 $1,523.21 $3,211.35 $935.33 $1,565.16 $2,021.94 $3,211.35 FIDELITY(R) VIP CONTRAFUND(R)--INITIAL CLASS without any Riders................... $887.32 $741.88 $1,269.03 $2,711.14 $887.32 $1,422.11 $1,780.41 $2,711.14 with EBB Rider....................... $916.24 $834.35 $1,422.79 $3,015.43 $916.24 $1,508.45 $1,926.51 $3,015.43 FIDELITY(R) VIP EQUITY- INCOME--INITIAL CLASS without any Riders................... $877.74 $711.14 $1,217.71 $2,608.40 $877.74 $1,393.40 $1,731.63 $2,608.40 with EBB Rider....................... $906.69 $803.90 $1,372.26 $2,916.00 $906.69 $1,480.02 $1,878.50 $2,916.00 FIDELITY(R) VIP MID CAP--SERVICE CLASS 2 without any Riders................... $912.21 $821.50 $1,401.48 $2,973.59 $912.21 $1,496.46 $1,906.27 $2,973.59 with EBB Rider....................... $941.06 $913.24 $1,553.17 $3,269.37 $941.06 $1,582.12 $2,050.40 $3,269.37 JANUS ASPEN SERIES BALANCED--INSTITUTIONAL SHARES without any Riders................... $879.66 $717.29 $1,228.00 $2,629.04 $879.66 $1,399.15 $1,741.41 $2,629.04 with EBB Rider....................... $908.60 $809.99 $1,382.38 $2,935.98 $908.60 $1,485.71 $1,888.12 $2,935.98 JANUS ASPEN SERIES WORLDWIDE GROWTH--INSTITUTIONAL SHARES without any Riders................... $889.23 $748.02 $1,279.27 $2,731.56 $889.23 $1,427.84 $1,790.14 $2,731.56 with EBB Rider....................... $918.15 $840.43 $1,432.85 $3,035.18 $918.15 $1,514.13 $1,936.08 $3,035.18 MFS(R) INVESTORS TRUST SERIES--INITIAL CLASS without any Riders................... $906.47 $803.17 $1,371.05 $2,913.63 $906.47 $1,479.34 $1,877.35 $2,913.63 with EBB Rider....................... $935.33 $895.08 $1,523.21 $3,211.35 $935.33 $1,565.16 $2,021.94 $3,211.35 MFS(R) RESEARCH SERIES--INITIAL CLASS without any Riders................... $909.34 $812.33 $1,386.26 $2,943.64 $909.34 $1,487.90 $1,891.80 $2,943.64 with EBB Rider....................... $938.19 $904.15 $1,538.19 $3,240.39 $938.19 $1,573.64 $2,036.17 $3,240.39 MFS(R) UTILITIES SERIES--SERVICE CLASS without any Riders................... $930.40 $879.41 $1,497.35 $3,161.14 $930.40 $1,550.54 $1,997.37 $3,161.14 with EBB Rider....................... $959.20 $970.62 $1,647.54 $3,450.82 $959.20 $1,635.70 $2,140.08 $3,450.82 NEUBERGER BERMAN AMT MID-CAP GROWTH PORTFOLIO--CLASS S without any Riders................... $934.23 $891.58 $1,517.44 $3,200.16 $934.23 $1,561.89 $2,016.45 $3,200.16 with EBB Rider....................... $963.02 $982.67 $1,667.32 $3,488.60 $963.02 $1,646.95 $2,158.87 $3,488.60 EXPENSES IF YOU DO NOT SURRENDER YOUR POLICY -------------------------------------- INVESTMENT DIVISION 1 YR 3 YR 5 YR 10 YR ------------------- ------- ------- --------- --------- CVS CALVERT SOCIAL BALANCED PORTFOLIO without any Riders................... $266.54 $818.44 $1,396.41 $2,963.61 with EBB Rider....................... $297.34 $910.21 $1,548.17 $3,259.73 COLUMBIA SMALL CAP VALUE FUND, VARIABLE SERIES CLASS B without any Riders................... $291.07 $891.58 $1,517.44 $3,200.16 with EBB Rider....................... $321.79 $982.67 $1,667.32 $3,488.60 DREYFUS IP TECHNOLOGY GROWTH--INITIAL SHARES without any Riders................... $261.44 $803.17 $1,371.05 $2,913.63 with EBB Rider....................... $292.25 $895.08 $1,523.21 $3,211.35 FIDELITY(R) VIP CONTRAFUND(R)--INITIAL CLASS without any Riders................... $241.00 $741.88 $1,269.03 $2,711.14 with EBB Rider....................... $271.87 $834.35 $1,422.79 $3,015.43 FIDELITY(R) VIP EQUITY- INCOME--INITIAL CLASS without any Riders................... $230.78 $711.14 $1,217.71 $2,608.40 with EBB Rider....................... $261.68 $803.90 $1,372.26 $2,916.00 FIDELITY(R) VIP MID CAP--SERVICE CLASS 2 without any Riders................... $267.57 $821.50 $1,401.48 $2,973.59 with EBB Rider....................... $298.36 $913.24 $1,553.17 $3,269.37 JANUS ASPEN SERIES BALANCED--INSTITUTIONAL SHARES without any Riders................... $232.82 $717.29 $1,228.00 $2,629.04 with EBB Rider....................... $263.72 $809.99 $1,382.38 $2,935.98 JANUS ASPEN SERIES WORLDWIDE GROWTH--INSTITUTIONAL SHARES without any Riders................... $243.04 $748.02 $1,279.27 $2,731.56 with EBB Rider....................... $273.91 $840.43 $1,432.85 $3,035.18 MFS(R) INVESTORS TRUST SERIES--INITIAL CLASS without any Riders................... $261.44 $803.17 $1,371.05 $2,913.63 with EBB Rider....................... $292.25 $895.08 $1,523.21 $3,211.35 MFS(R) RESEARCH SERIES--INITIAL CLASS without any Riders................... $264.50 $812.33 $1,386.26 $2,943.64 with EBB Rider....................... $295.30 $904.15 $1,538.19 $3,240.39 MFS(R) UTILITIES SERIES--SERVICE CLASS without any Riders................... $286.98 $879.41 $1,497.35 $3,161.14 with EBB Rider....................... $317.71 $970.62 $1,647.54 $3,450.82 NEUBERGER BERMAN AMT MID-CAP GROWTH PORTFOLIO--CLASS S without any Riders................... $291.07 $891.58 $1,517.44 $3,200.16 with EBB Rider....................... $321.79 $982.67 $1,667.32 $3,488.60
17
EXPENSES IF YOU EXPENSES IF YOU ANNUITIZE YOUR POLICY SURRENDER YOUR POLICY ------------------------------------------ ------------------------------------------ INVESTMENT DIVISION 1 YR 3 YR 5 YR 10 YR 1 YR 3 YR 5 YR 10 YR ------------------- --------- --------- --------- --------- --------- --------- --------- --------- ROYCE MICRO-CAP PORTFOLIO--INVESTMENT CLASS without any Riders.............. $ 950.51 $ 943.17 $1,602.45 $3,364.36 $ 950.51 $1,610.08 $2,097.23 $3,364.36 with EBB Rider.................. $ 979.25 $1,033.79 $1,750.99 $3,647.45 $ 979.25 $1,694.69 $2,238.38 $3,647.45 ROYCE SMALL-CAP PORTFOLIO--INVESTMENT CLASS without any Riders.............. $ 928.49 $ 873.33 $1,487.30 $3,141.56 $ 928.49 $1,544.86 $1,987.82 $3,141.56 with EBB Rider.................. $ 957.29 $ 964.59 $1,637.66 $3,431.90 $ 957.29 $1,630.08 $2,130.69 $3,431.90 T. ROWE PRICE EQUITY INCOME PORTFOLIO without any Riders.............. $ 906.47 $ 803.17 $1,371.05 $2,913.63 $ 906.47 $1,479.34 $1,877.35 $2,913.63 with EBB Rider.................. $ 935.33 $ 895.08 $1,523.21 $3,211.35 $ 935.33 $1,565.16 $2,021.94 $3,211.35 VAN ECK WORLDWIDE HARD ASSETS without any Riders.............. $ 921.79 $ 852.01 $1,452.03 $3,072.74 $ 921.79 $1,524.95 $1,954.30 $3,072.74 with EBB Rider.................. $ 950.61 $ 943.46 $1,602.92 $3,365.30 $ 950.61 $1,610.34 $2,097.68 $3,365.30 VAN KAMPEN UIF EMERGING MARKETS EQUITY--CLASS I without any Riders.............. $ 976.36 $1,024.72 $1,736.18 $3,619.44 $ 976.36 $1,686.22 $2,224.30 $3,619.44 with EBB Rider.................. $1,005.02 $1,114.58 $1,882.64 $3,894.24 $1,005.02 $1,770.13 $2,363.47 $3,894.24 VICTORY VIF DIVERSIFIED STOCK--CLASS A SHARES without any Riders.............. $ 943.81 $ 921.95 $1,567.51 $3,297.08 $ 943.81 $1,590.25 $2,064.03 $3,297.08 with EBB Rider.................. $ 972.56 $1,012.76 $1,716.61 $3,582.36 $ 972.56 $1,675.05 $2,205.71 $3,582.36 EXPENSES IF YOU DO NOT SURRENDER YOUR POLICY ---------------------------------------- INVESTMENT DIVISION 1 YR 3 YR 5 YR 10 YR ------------------- ------- --------- --------- --------- ROYCE MICRO-CAP PORTFOLIO--INVESTMENT CLASS without any Riders.............. $308.45 $ 943.17 $1,602.45 $3,364.36 with EBB Rider.................. $339.11 $1,033.79 $1,750.99 $3,647.45 ROYCE SMALL-CAP PORTFOLIO--INVESTMENT CLASS without any Riders.............. $284.94 $ 873.33 $1,487.30 $3,141.56 with EBB Rider.................. $315.67 $ 964.59 $1,637.66 $3,431.90 T. ROWE PRICE EQUITY INCOME PORTFOLIO without any Riders.............. $261.44 $ 803.17 $1,371.05 $2,913.63 with EBB Rider.................. $292.25 $ 895.08 $1,523.21 $3,211.35 VAN ECK WORLDWIDE HARD ASSETS without any Riders.............. $277.79 $ 852.01 $1,452.03 $3,072.74 with EBB Rider.................. $308.55 $ 943.46 $1,602.92 $3,365.30 VAN KAMPEN UIF EMERGING MARKETS EQUITY--CLASS I without any Riders.............. $336.03 $1,024.72 $1,736.18 $3,619.44 with EBB Rider.................. $366.62 $1,114.58 $1,882.64 $3,894.24 VICTORY VIF DIVERSIFIED STOCK--CLASS A SHARES without any Riders.............. $301.29 $ 921.95 $1,567.51 $3,297.08 with EBB Rider.................. $331.98 $1,012.76 $1,716.61 $3,582.36
18 FOR POLICIES INVESTING IN SEPARATE ACCOUNT--I AND II:
EXPENSES IF YOU EXPENSES IF YOU ANNUITIZE YOUR POLICY SURRENDER YOUR POLICY -------------------------------------- ---------------------------------------- INVESTMENT DIVISION 1 YR 3 YR 5 YR 10 YR 1 YR 3 YR 5 YR 10 YR ------------------- ------- ------- --------- --------- ------- --------- --------- --------- MAINSTAY VP BALANCED--SERVICE CLASS without any Riders................... $889.13 $747.68 $1,278.71 $2,730.45 $889.13 $1,427.53 $1,789.60 $2,730.45 with EBB Rider....................... $917.96 $839.81 $1,431.83 $3,033.19 $917.96 $1,513.56 $1,935.11 $3,033.19 MAINSTAY VP BOND--INITIAL CLASS without any Riders................... $838.22 $583.60 $1,003.58 $2,173.47 $838.22 $1,274.31 $1,528.15 $2,173.47 with EBB Rider....................... $867.20 $677.25 $1,161.00 $2,494.19 $867.20 $1,361.76 $1,677.75 $2,494.19 MAINSTAY VP CAPITAL APPRECIATION--INITIAL CLASS without any Riders................... $848.79 $617.80 $1,061.19 $2,291.47 $848.79 $1,306.24 $1,582.89 $2,291.47 with EBB Rider....................... $877.74 $711.14 $1,217.71 $2,608.40 $877.74 $1,393.40 $1,731.63 $2,608.40 MAINSTAY VP CASH MANAGEMENT without any Riders................... $833.42 $568.03 $ 977.31 $2,119.41 $833.42 $1,259.77 $1,503.18 $2,119.41 with EBB Rider....................... $862.42 $661.82 $1,135.13 $2,441.86 $862.42 $1,347.35 $1,653.16 $2,441.86 MAINSTAY VP COMMON STOCK--INITIAL CLASS without any Riders................... $843.03 $599.16 $1,029.81 $2,227.28 $843.03 $1,288.84 $1,553.07 $2,227.28 with EBB Rider....................... $872.00 $692.66 $1,186.81 $2,546.27 $872.00 $1,376.15 $1,702.27 $2,546.27 MAINSTAY VP CONSERVATIVE ALLOCATION--SERVICE CLASS without any Riders................... $875.68 $704.51 $1,206.63 $2,586.14 $875.68 $1,387.21 $1,721.11 $2,586.14 with EBB Rider....................... $904.55 $797.04 $1,360.88 $2,893.54 $904.55 $1,473.62 $1,867.68 $2,893.54 MAINSTAY VP CONVERTIBLE--INITIAL CLASS without any Riders................... $849.74 $620.91 $1,066.42 $2,302.15 $849.74 $1,309.15 $1,587.87 $2,302.15 with EBB Rider....................... $878.69 $714.21 $1,222.85 $2,618.72 $878.69 $1,396.27 $1,736.52 $2,618.72 MAINSTAY VP DEVELOPING GROWTH--INITIAL CLASS without any Riders................... $874.71 $701.42 $1,201.46 $2,575.75 $874.71 $1,384.33 $1,716.19 $2,575.75 with EBB Rider....................... $903.59 $793.98 $1,355.80 $2,883.50 $903.59 $1,470.76 $1,862.85 $2,883.50 MAINSTAY VP FLOATING RATE--SERVICE CLASS without any Riders................... $874.71 $701.42 $1,201.46 $2,575.75 $874.71 $1,384.33 $1,716.19 $2,575.75 with EBB Rider....................... $903.59 $793.98 $1,355.80 $2,883.50 $903.59 $1,470.76 $1,862.85 $2,883.50 MAINSTAY VP GOVERNMENT--INITIAL CLASS without any Riders................... $840.14 $589.83 $1,014.09 $2,195.03 $840.14 $1,280.12 $1,538.13 $2,195.03 with EBB Rider....................... $869.12 $683.41 $1,171.32 $2,515.04 $869.12 $1,367.51 $1,687.56 $2,515.04 MAINSTAY VP GROWTH ALLOCATION--SERVICE CLASS without any Riders................... $886.24 $738.43 $1,263.29 $2,699.68 $886.24 $1,418.89 $1,774.95 $2,699.68 with EBB Rider....................... $915.08 $830.66 $1,416.67 $3,003.43 $915.08 $1,505.01 $1,920.70 $3,003.43 MAINSTAY VP HIGH YIELD CORPORATE BOND--INITIAL CLASS without any Riders................... $844.95 $605.38 $1,040.28 $2,248.72 $844.95 $1,294.65 $1,563.02 $2,248.72 with EBB Rider....................... $873.91 $698.83 $1,197.12 $2,567.01 $873.91 $1,381.91 $1,712.07 $2,567.01 MAINSTAY VP ICAP SELECT EQUITY--INITIAL CLASS without any Riders................... $867.03 $676.69 $1,160.06 $2,492.32 $867.03 $1,361.24 $1,676.85 $2,492.32 with EBB Rider....................... $895.93 $769.49 $1,315.04 $2,802.74 $895.93 $1,447.89 $1,824.13 $2,802.74 EXPENSES IF YOU DO NOT SURRENDER YOUR POLICY -------------------------------------- INVESTMENT DIVISION 1 YR 3 YR 5 YR 10 YR ------------------- ------- ------- --------- --------- MAINSTAY VP BALANCED--SERVICE CLASS without any Riders................... $242.93 $747.68 $1,278.71 $2,730.45 with EBB Rider....................... $273.70 $839.81 $1,431.83 $3,033.19 MAINSTAY VP BOND--INITIAL CLASS without any Riders................... $188.60 $583.60 $1,003.58 $2,173.47 with EBB Rider....................... $219.53 $677.25 $1,161.00 $2,494.19 MAINSTAY VP CAPITAL APPRECIATION--INITIAL CLASS without any Riders................... $199.88 $617.80 $1,061.19 $2,291.47 with EBB Rider....................... $230.78 $711.14 $1,217.71 $2,608.40 MAINSTAY VP CASH MANAGEMENT without any Riders................... $183.48 $568.03 $ 977.31 $2,119.41 with EBB Rider....................... $214.43 $661.82 $1,135.13 $2,441.86 MAINSTAY VP COMMON STOCK--INITIAL CLASS without any Riders................... $193.73 $599.16 $1,029.81 $2,227.28 with EBB Rider....................... $224.65 $692.66 $1,186.81 $2,546.27 MAINSTAY VP CONSERVATIVE ALLOCATION--SERVICE CLASS without any Riders................... $228.58 $704.51 $1,206.63 $2,586.14 with EBB Rider....................... $259.39 $797.04 $1,360.88 $2,893.54 MAINSTAY VP CONVERTIBLE--INITIAL CLASS without any Riders................... $200.90 $620.91 $1,066.42 $2,302.15 with EBB Rider....................... $231.80 $714.21 $1,222.85 $2,618.72 MAINSTAY VP DEVELOPING GROWTH--INITIAL CLASS without any Riders................... $227.55 $701.42 $1,201.46 $2,575.75 with EBB Rider....................... $258.37 $793.98 $1,355.80 $2,883.50 MAINSTAY VP FLOATING RATE--SERVICE CLASS without any Riders................... $227.55 $701.42 $1,201.46 $2,575.75 with EBB Rider....................... $258.37 $793.98 $1,355.80 $2,883.50 MAINSTAY VP GOVERNMENT--INITIAL CLASS without any Riders................... $190.65 $589.83 $1,014.09 $2,195.03 with EBB Rider....................... $221.58 $683.41 $1,171.32 $2,515.04 MAINSTAY VP GROWTH ALLOCATION--SERVICE CLASS without any Riders................... $239.85 $738.43 $1,263.29 $2,699.68 with EBB Rider....................... $270.63 $830.66 $1,416.67 $3,003.43 MAINSTAY VP HIGH YIELD CORPORATE BOND--INITIAL CLASS without any Riders................... $195.78 $605.38 $1,040.28 $2,248.72 with EBB Rider....................... $226.69 $698.83 $1,197.12 $2,567.01 MAINSTAY VP ICAP SELECT EQUITY--INITIAL CLASS without any Riders................... $219.35 $676.69 $1,160.06 $2,492.32 with EBB Rider....................... $250.19 $769.49 $1,315.04 $2,802.74
19
EXPENSES IF YOU EXPENSES IF YOU ANNUITIZE YOUR POLICY SURRENDER YOUR POLICY -------------------------------------- ---------------------------------------- INVESTMENT DIVISION 1 YR 3 YR 5 YR 10 YR 1 YR 3 YR 5 YR 10 YR ------------------- ------- ------- --------- --------- ------- --------- --------- --------- MAINSTAY VP INTERNATIONAL EQUITY--INITIAL CLASS without any Riders................... $879.52 $716.85 $1,227.26 $2,627.57 $879.52 $1,398.74 $1,740.71 $2,627.57 with EBB Rider....................... $908.38 $809.28 $1,381.20 $2,933.64 $908.38 $1,485.05 $1,886.99 $2,933.64 MAINSTAY VP LARGE CAP GROWTH--INITIAL CLASS without any Riders................... $863.19 $664.31 $1,139.31 $2,450.34 $863.19 $1,349.67 $1,657.13 $2,450.34 with EBB Rider....................... $892.10 $757.22 $1,294.62 $2,762.14 $892.10 $1,436.44 $1,804.72 $2,762.14 MAINSTAY VP MID CAP CORE--INITIAL CLASS without any Riders................... $873.76 $698.33 $1,196.29 $2,565.35 $873.76 $1,381.44 $1,711.28 $2,565.35 with EBB Rider....................... $902.64 $790.92 $1,350.71 $2,873.45 $902.64 $1,467.91 $1,858.03 $2,873.45 MAINSTAY VP MID CAP GROWTH--INITIAL CLASS without any Riders................... $863.19 $664.31 $1,139.31 $2,450.34 $863.19 $1,349.67 $1,657.13 $2,450.34 with EBB Rider....................... $892.10 $757.22 $1,294.62 $2,762.14 $892.10 $1,436.44 $1,804.72 $2,762.14 MAINSTAY VP MID CAP VALUE--INITIAL CLASS without any Riders................... $859.35 $651.92 $1,118.52 $2,408.20 $859.35 $1,338.10 $1,637.38 $2,408.20 with EBB Rider....................... $888.27 $744.95 $1,274.16 $2,721.37 $888.27 $1,424.98 $1,785.28 $2,721.37 MAINSTAY VP MODERATE ALLOCATION--SERVICE CLASS without any Riders................... $876.64 $707.59 $1,211.78 $2,596.51 $876.64 $1,390.09 $1,726.00 $2,596.51 with EBB Rider....................... $905.51 $800.10 $1,365.96 $2,903.59 $905.51 $1,476.47 $1,872.51 $2,903.59 MAINSTAY VP MODERATE GROWTH ALLOCATION--SERVICE CLASS without any Riders................... $880.48 $719.93 $1,232.41 $2,637.89 $880.48 $1,401.61 $1,745.61 $2,637.89 with EBB Rider....................... $909.34 $812.33 $1,386.26 $2,943.64 $909.34 $1,487.90 $1,891.80 $2,943.64 MAINSTAY VP S&P 500 INDEX--INITIAL CLASS without any Riders................... $818.05 $518.10 $ 892.88 $1,944.62 $818.05 $1,213.14 $1,422.94 $1,944.62 with EBB Rider....................... $847.10 $612.35 $1,052.01 $2,272.71 $847.10 $1,301.16 $1,574.17 $2,272.71 MAINSTAY VP SMALL CAP GROWTH--INITIAL CLASS without any Riders................... $878.56 $713.77 $1,222.10 $2,617.22 $878.56 $1,395.86 $1,735.81 $2,617.22 with EBB Rider....................... $907.42 $806.22 $1,376.12 $2,923.63 $907.42 $1,482.19 $1,882.17 $2,923.63 MAINSTAY VP TOTAL RETURN--INITIAL CLASS without any Riders................... $846.87 $611.59 $1,050.74 $2,270.12 $846.87 $1,300.44 $1,572.96 $2,270.12 with EBB Rider....................... $875.83 $704.98 $1,207.41 $2,587.72 $875.83 $1,387.65 $1,721.85 $2,587.72 MAINSTAY VP VALUE--INITIAL CLASS(*) without any Riders................... $844.95 $605.38 $1,040.28 $2,248.72 $844.95 $1,294.65 $1,563.02 $2,248.72 with EBB Rider....................... $873.91 $698.83 $1,197.12 $2,567.01 $873.91 $1,381.91 $1,712.07 $2,567.01 ALGER AMERICAN SMALLCAP GROWTH--CLASS O SHARES(**) without any Riders................... $878.56 $713.77 $1,222.10 $2,617.22 $878.56 $1,395.86 $1,735.81 $2,617.22 with EBB Rider....................... $907.42 $806.22 $1,376.12 $2,923.63 $907.42 $1,482.19 $1,882.17 $2,923.63 EXPENSES IF YOU DO NOT SURRENDER YOUR POLICY -------------------------------------- INVESTMENT DIVISION 1 YR 3 YR 5 YR 10 YR ------------------- ------- ------- --------- --------- MAINSTAY VP INTERNATIONAL EQUITY--INITIAL CLASS without any Riders................... $232.68 $716.85 $1,227.26 $2,627.57 with EBB Rider....................... $263.48 $809.28 $1,381.20 $2,933.64 MAINSTAY VP LARGE CAP GROWTH--INITIAL CLASS without any Riders................... $215.25 $664.31 $1,139.31 $2,450.34 with EBB Rider....................... $246.10 $757.22 $1,294.62 $2,762.14 MAINSTAY VP MID CAP CORE--INITIAL CLASS without any Riders................... $226.53 $698.33 $1,196.29 $2,565.35 with EBB Rider....................... $257.35 $790.92 $1,350.71 $2,873.45 MAINSTAY VP MID CAP GROWTH--INITIAL CLASS without any Riders................... $215.25 $664.31 $1,139.31 $2,450.34 with EBB Rider....................... $246.10 $757.22 $1,294.62 $2,762.14 MAINSTAY VP MID CAP VALUE--INITIAL CLASS without any Riders................... $211.15 $651.92 $1,118.52 $2,408.20 with EBB Rider....................... $242.02 $744.95 $1,274.16 $2,721.37 MAINSTAY VP MODERATE ALLOCATION--SERVICE CLASS without any Riders................... $229.60 $707.59 $1,211.78 $2,596.51 with EBB Rider....................... $260.41 $800.10 $1,365.96 $2,903.59 MAINSTAY VP MODERATE GROWTH ALLOCATION--SERVICE CLASS without any Riders................... $233.70 $719.93 $1,232.41 $2,637.89 with EBB Rider....................... $264.50 $812.33 $1,386.26 $2,943.64 MAINSTAY VP S&P 500 INDEX--INITIAL CLASS without any Riders................... $167.08 $518.10 $ 892.88 $1,944.62 with EBB Rider....................... $198.08 $612.35 $1,052.01 $2,272.71 MAINSTAY VP SMALL CAP GROWTH--INITIAL CLASS without any Riders................... $231.65 $713.77 $1,222.10 $2,617.22 with EBB Rider....................... $262.46 $806.22 $1,376.12 $2,923.63 MAINSTAY VP TOTAL RETURN--INITIAL CLASS without any Riders................... $197.83 $611.59 $1,050.74 $2,270.12 with EBB Rider....................... $228.74 $704.98 $1,207.41 $2,587.72 MAINSTAY VP VALUE--INITIAL CLASS(*) without any Riders................... $195.78 $605.38 $1,040.28 $2,248.72 with EBB Rider....................... $226.69 $698.83 $1,197.12 $2,567.01 ALGER AMERICAN SMALLCAP GROWTH--CLASS O SHARES(**) without any Riders................... $231.65 $713.77 $1,222.10 $2,617.22 with EBB Rider....................... $262.46 $806.22 $1,376.12 $2,923.63
(*) The MainStay VP Value portfolio will merge with and into the MainStay VP ICAP Select Equity portfolio on May 16, 2008. (**) No premiums or transfers will be accepted into this Investment Division from policyowners who did not have a portion of their Accumulation Value allocated to this Investment Division prior to June 1, 2007. Policyowners who remove all Accumulation Value allocations from this Investment Division will not be permitted to reallocate any portion of their Accumulation Value to this Investment Division. 20
EXPENSES IF YOU EXPENSES IF YOU ANNUITIZE YOUR POLICY SURRENDER YOUR POLICY -------------------------------------- ---------------------------------------- INVESTMENT DIVISION 1 YR 3 YR 5 YR 10 YR 1 YR 3 YR 5 YR 10 YR ------------------- ------- ------- --------- --------- ------- --------- --------- --------- CVS CALVERT SOCIAL BALANCED PORTFOLIO without any Riders................... $872.79 $695.24 $1,191.12 $2,554.95 $872.79 $1,378.56 $1,706.37 $2,554.95 with EBB Rider....................... $901.68 $787.85 $1,345.61 $2,863.37 $901.68 $1,465.04 $1,853.18 $2,863.37 COLUMBIA SMALL CAP VALUE FUND, VARIABLE SERIES--CLASS B without any Riders................... $895.84 $769.21 $1,314.58 $2,801.83 $895.84 $1,447.63 $1,823.69 $2,801.83 with EBB Rider....................... $924.66 $861.15 $1,467.17 $3,102.28 $924.66 $1,533.48 $1,968.68 $3,102.28 DREYFUS IP TECHNOLOGY GROWTH--INITIAL SHARES without any Riders................... $868.00 $679.79 $1,165.25 $2,502.78 $868.00 $1,364.13 $1,681.78 $2,502.78 with EBB Rider....................... $896.89 $772.56 $1,320.16 $2,812.90 $896.89 $1,450.76 $1,828.99 $2,812.90 FIDELITY(R) VIP CONTRAFUND(R)--INITIAL CLASS without any Riders................... $848.79 $617.80 $1,061.19 $2,291.47 $848.79 $1,306.24 $1,582.89 $2,291.47 with EBB Rider....................... $877.74 $711.14 $1,217.71 $2,608.40 $877.74 $1,393.40 $1,731.63 $2,608.40 FIDELITY(R) VIP EQUITY- INCOME--INITIAL CLASS without any Riders................... $839.18 $586.72 $1,008.85 $2,184.26 $839.18 $1,277.22 $1,533.16 $2,184.26 with EBB Rider....................... $868.17 $680.33 $1,166.16 $2,504.62 $868.17 $1,364.64 $1,682.65 $2,504.62 FIDELITY(R) VIP MID CAP--SERVICE CLASS 2 without any Riders................... $873.76 $698.33 $1,196.29 $2,565.35 $873.76 $1,381.44 $1,711.28 $2,565.35 with EBB Rider....................... $902.64 $790.92 $1,350.71 $2,873.45 $902.64 $1,467.91 $1,858.03 $2,873.45 JANUS ASPEN SERIES BALANCED--INSTITUTIONAL SHARES without any Riders................... $841.10 $592.94 $1,019.33 $2,205.78 $841.10 $1,283.03 $1,543.11 $2,205.78 with EBB Rider....................... $870.08 $686.50 $1,176.48 $2,525.46 $870.08 $1,370.40 $1,692.46 $2,525.46 JANUS ASPEN SERIES WORLDWIDE GROWTH--INSTITUTIONAL SHARES without any Riders................... $850.71 $624.01 $1,071.64 $2,312.80 $850.71 $1,312.04 $1,592.83 $2,312.80 with EBB Rider....................... $879.66 $717.29 $1,228.00 $2,629.04 $879.66 $1,399.15 $1,741.41 $2,629.04 MFS(R) INVESTORS TRUST SERIES--INITIAL CLASS without any Riders................... $868.00 $679.79 $1,165.25 $2,502.78 $868.00 $1,364.13 $1,681.78 $2,502.78 with EBB Rider....................... $896.89 $772.56 $1,320.16 $2,812.90 $896.89 $1,450.76 $1,828.99 $2,812.90 MFS(R) RESEARCH SERIES--INITIAL CLASS without any Riders................... $870.87 $689.06 $1,180.78 $2,534.12 $870.87 $1,372.79 $1,696.54 $2,534.12 with EBB Rider....................... $899.76 $781.74 $1,335.44 $2,843.21 $899.76 $1,459.33 $1,843.51 $2,843.21 MFS(R) UTILITIES SERIES--SERVICE CLASS without any Riders................... $892.00 $756.91 $1,294.10 $2,761.10 $892.00 $1,436.15 $1,804.23 $2,761.10 with EBB Rider....................... $920.83 $848.96 $1,446.99 $3,062.86 $920.83 $1,522.10 $1,949.51 $3,062.86 NEUBERGER BERMAN AMT MID-CAP GROWTH PORTFOLIO--CLASS S without any Riders................... $895.84 $769.21 $1,314.58 $2,801.83 $895.84 $1,447.63 $1,823.69 $2,801.83 with EBB Rider....................... $924.66 $861.15 $1,467.17 $3,102.28 $924.66 $1,533.48 $1,968.68 $3,102.28 ROYCE MICRO-CAP PORTFOLIO--INVESTMENT CLASS without any Riders................... $912.18 $821.38 $1,401.28 $2,973.20 $912.18 $1,496.35 $1,906.08 $2,973.20 with EBB Rider....................... $940.94 $912.84 $1,552.52 $3,268.12 $940.94 $1,581.75 $2,049.79 $3,268.12 ROYCE SMALL-CAP PORTFOLIO--INVESTMENT CLASS without any Riders................... $890.08 $750.75 $1,283.83 $2,740.66 $890.08 $1,430.39 $1,794.47 $2,740.66 with EBB Rider....................... $918.91 $842.87 $1,436.90 $3,043.09 $918.91 $1,516.41 $1,939.92 $3,043.09 EXPENSES IF YOU DO NOT SURRENDER YOUR POLICY -------------------------------------- INVESTMENT DIVISION 1 YR 3 YR 5 YR 10 YR ------------------- ------- ------- --------- --------- CVS CALVERT SOCIAL BALANCED PORTFOLIO without any Riders................... $225.50 $695.24 $1,191.12 $2,554.95 with EBB Rider....................... $256.32 $787.85 $1,345.61 $2,863.37 COLUMBIA SMALL CAP VALUE FUND, VARIABLE SERIES--CLASS B without any Riders................... $250.10 $769.21 $1,314.58 $2,801.83 with EBB Rider....................... $280.85 $861.15 $1,467.17 $3,102.28 DREYFUS IP TECHNOLOGY GROWTH--INITIAL SHARES without any Riders................... $220.38 $679.79 $1,165.25 $2,502.78 with EBB Rider....................... $251.22 $772.56 $1,320.16 $2,812.90 FIDELITY(R) VIP CONTRAFUND(R)--INITIAL CLASS without any Riders................... $199.88 $617.80 $1,061.19 $2,291.47 with EBB Rider....................... $230.78 $711.14 $1,217.71 $2,608.40 FIDELITY(R) VIP EQUITY- INCOME--INITIAL CLASS without any Riders................... $189.63 $586.72 $1,008.85 $2,184.26 with EBB Rider....................... $220.56 $680.33 $1,166.16 $2,504.62 FIDELITY(R) VIP MID CAP--SERVICE CLASS 2 without any Riders................... $226.53 $698.33 $1,196.29 $2,565.35 with EBB Rider....................... $257.35 $790.92 $1,350.71 $2,873.45 JANUS ASPEN SERIES BALANCED--INSTITUTIONAL SHARES without any Riders................... $191.68 $592.94 $1,019.33 $2,205.78 with EBB Rider....................... $222.60 $686.50 $1,176.48 $2,525.46 JANUS ASPEN SERIES WORLDWIDE GROWTH--INSTITUTIONAL SHARES without any Riders................... $201.93 $624.01 $1,071.64 $2,312.80 with EBB Rider....................... $232.82 $717.29 $1,228.00 $2,629.04 MFS(R) INVESTORS TRUST SERIES--INITIAL CLASS without any Riders................... $220.38 $679.79 $1,165.25 $2,502.78 with EBB Rider....................... $251.22 $772.56 $1,320.16 $2,812.90 MFS(R) RESEARCH SERIES--INITIAL CLASS without any Riders................... $223.45 $689.06 $1,180.78 $2,534.12 with EBB Rider....................... $254.28 $781.74 $1,335.44 $2,843.21 MFS(R) UTILITIES SERIES--SERVICE CLASS without any Riders................... $246.00 $756.91 $1,294.10 $2,761.10 with EBB Rider....................... $276.76 $848.96 $1,446.99 $3,062.86 NEUBERGER BERMAN AMT MID-CAP GROWTH PORTFOLIO--CLASS S without any Riders................... $250.10 $769.21 $1,314.58 $2,801.83 with EBB Rider....................... $280.85 $861.15 $1,467.17 $3,102.28 ROYCE MICRO-CAP PORTFOLIO--INVESTMENT CLASS without any Riders................... $267.53 $821.38 $1,401.28 $2,973.20 with EBB Rider....................... $298.23 $912.84 $1,552.52 $3,268.12 ROYCE SMALL-CAP PORTFOLIO--INVESTMENT CLASS without any Riders................... $243.95 $750.75 $1,283.83 $2,740.66 with EBB Rider....................... $274.72 $842.87 $1,436.90 $3,043.09
21
EXPENSES IF YOU EXPENSES IF YOU ANNUITIZE YOUR POLICY SURRENDER YOUR POLICY -------------------------------------- ---------------------------------------- INVESTMENT DIVISION 1 YR 3 YR 5 YR 10 YR 1 YR 3 YR 5 YR 10 YR ------------------- ------- ------- --------- --------- ------- --------- --------- --------- T. ROWE PRICE EQUITY INCOME PORTFOLIO without any Riders................... $868.00 $679.79 $1,165.25 $2,502.78 $868.00 $1,364.13 $1,681.78 $2,502.78 with EBB Rider....................... $896.89 $772.56 $1,320.16 $2,812.90 $896.89 $1,450.76 $1,828.99 $2,812.90 VAN ECK WORLDWIDE HARD ASSETS without any Riders................... $883.36 $729.19 $1,247.87 $2,668.84 $883.36 $1,410.26 $1,760.30 $2,668.84 with EBB Rider....................... $912.21 $821.50 $1,401.48 $2,973.59 $912.21 $1,496.46 $1,906.27 $2,973.59 VAN KAMPEN UIF EMERGING MARKETS EQUITY--CLASS I without any Riders................... $938.10 $903.87 $1,537.72 $3,239.47 $938.10 $1,573.37 $2,035.73 $3,239.47 with EBB Rider....................... $966.79 $994.56 $1,686.82 $3,525.76 $966.79 $1,658.06 $2,177.40 $3,525.76 VICTORY VIF DIVERSIFIED STOCK--CLASS A SHARES without any Riders................... $905.45 $799.92 $1,365.66 $2,902.99 $905.45 $1,476.31 $1,872.23 $2,902.99 with EBB Rider....................... $934.23 $891.58 $1,517.44 $3,200.16 $934.23 $1,561.89 $2,016.45 $3,200.16 EXPENSES IF YOU DO NOT SURRENDER YOUR POLICY -------------------------------------- INVESTMENT DIVISION 1 YR 3 YR 5 YR 10 YR ------------------- ------- ------- --------- --------- T. ROWE PRICE EQUITY INCOME PORTFOLIO without any Riders................... $220.38 $679.79 $1,165.25 $2,502.78 with EBB Rider....................... $251.22 $772.56 $1,320.16 $2,812.90 VAN ECK WORLDWIDE HARD ASSETS without any Riders................... $236.78 $729.19 $1,247.87 $2,668.84 with EBB Rider....................... $267.57 $821.50 $1,401.48 $2,973.59 VAN KAMPEN UIF EMERGING MARKETS EQUITY--CLASS I without any Riders................... $295.20 $903.87 $1,537.72 $3,239.47 with EBB Rider....................... $325.81 $994.56 $1,686.82 $3,525.76 VICTORY VIF DIVERSIFIED STOCK--CLASS A SHARES without any Riders................... $260.35 $799.92 $1,365.66 $2,902.99 with EBB Rider....................... $291.07 $891.58 $1,517.44 $3,200.16
22 QUESTIONS AND ANSWERS ABOUT NEW YORK LIFE FLEXIBLE PREMIUM VARIABLE ANNUITY NOTE: THE FOLLOWING SECTION CONTAINS BRIEF QUESTIONS AND ANSWERS ABOUT NEW YORK LIFE FLEXIBLE PREMIUM VARIABLE ANNUITY. YOU SHOULD REFER TO THE BODY OF THIS PROSPECTUS FOR MORE DETAILED INFORMATION. 1. WHAT IS NEW YORK LIFE FLEXIBLE PREMIUM VARIABLE ANNUITY? A New York Life Flexible Premium Variable Annuity is a deferred variable annuity policy. NYLIAC issues the policy. You may allocate premium payments to 43 Investment Divisions of the applicable Separate Account, 42 of which are available to all policyholders, as well as the Fixed Account. The Accumulation Value will fluctuate according to the performance of the Investment Divisions selected and the interest credited to the amounts in the Fixed Account. 2. WHERE CAN I ALLOCATE MY PREMIUM PAYMENTS? You can allocate your premium payments to one or more of the following Allocation Alternatives: (a) SEPARATE ACCOUNTS Separate Account I is used for Non-Qualified Policies and Separate Account II is used for Qualified Policies. Each of the Separate Accounts consists of 43 Investment Divisions, 42 of which are available to all policyholders. They offer investments in domestic and international markets. When you allocate a premium payment to one of the Investment Divisions, the Separate Account will invest your premium payment exclusively in shares of the corresponding Eligible Portfolio of the relevant Fund. Separate Account III currently consists of 73 Investment Divisions, 42 of which are available to all policyholders. They offer investments in domestic and international markets. They are listed on the first page of this Prospectus. When you allocate a premium payment to one of the Investment Divisions, the Separate Account will invest your premium payment exclusively in shares of the corresponding Eligible Portfolio of the relevant Fund. (b) FIXED ACCOUNT Each premium payment, or the portion of any premium payment, you allocate to the Fixed Account will earn an interest rate at least equal to the guaranteed interest rate. 3. CAN I MAKE TRANSFERS AMONG THE INVESTMENT DIVISIONS AND THE FIXED ACCOUNT? You can transfer all or part of the Accumulation Value of your policy between the Investment Divisions or from the Investment Divisions to the Fixed Account at least 30 days before the Annuity Commencement Date but certain restrictions apply. Generally, you can transfer a minimum amount of $500, unless We agree otherwise. You can make transfers from the Fixed Account to the Investment Divisions but certain restrictions apply. (See "THE FIXED ACCOUNT.") You may not transfer money into the Fixed Account if you transferred money out of the Fixed Account during the previous six-month period. 4. WHAT CHARGES ARE ASSESSED AGAINST THE POLICY? For Policies Investing in Separate Accounts-I & II: Before the date We start making Income Payments to you, We will deduct a policy service charge on each Policy Anniversary and upon surrender of the policy if on that date the Accumulation Value is below $10,000. This charge will be the lesser of $30 or 2.00% of the Accumulation Value at the end of the Policy Year or on the date of surrender. In addition, We deduct on a daily basis a charge for policy administration expenses. This charge is equal, on an annual basis, to 0.10% of the net asset value of the applicable Separate Account. (See "OTHER CHARGES.") For Policies Investing in Separate Account-III: Before the date We start making Income Payments to you, We will deduct a $30 policy service charge on each Policy Anniversary and upon surrender of the policy if on that date the Accumulation Value is below $20,000. In addition, We deduct on a daily basis a charge for policy administration expenses. This charge is equal, on an annual basis, to 0.20% of the net asset value of the Separate Account. (See "OTHER CHARGES.") 23 The policies are also subject to a charge for certain mortality and expense risks NYLIAC assumes. We also deduct this charge on a daily basis. This charge is equal, on an annual basis, to 1.20% of the daily net asset value of the Separate Account. (See "OTHER CHARGES.") We impose a surrender charge on certain partial withdrawals and surrenders of the policies. This charge is assessed as a percentage of the amount withdrawn during the first nine Policy Years. The percentage declines after the first three Policy Years as follows:
POLICY YEAR SURRENDER CHARGE ----------- ---------------- 1........................................................... 7% 2........................................................... 7% 3........................................................... 7% 4........................................................... 6% 5........................................................... 5% 6........................................................... 4% 7........................................................... 3% 8........................................................... 2% 9........................................................... 1% 10+.......................................................... 0%
In no event will the aggregate surrender charge applied under the policy exceed eight and one-half percent (8.5%) of the total Premium Payments. You can make withdrawals from the policy free of surrender charges based on certain limitations. In any one Policy Year, you may withdraw free of a surrender charge the greatest of: (a) 10% of the Accumulation Value at the time of the withdrawal; (b) the Accumulation Value less the accumulated premium payments; or (c) 10% of the Accumulation Value as of the prior Policy Anniversary, less any prior Surrender Charge free withdrawals during the policy year. (See "CHARGES AND DEDUCTIONS--Surrender Charges" and "EXCEPTIONS TO SURRENDER CHARGES.") If you select the Enhanced Beneficiary Benefit ("EBB") Rider (in jurisdictions where available), We will deduct a charge each policy quarter that the rider is in effect. We will deduct this charge beginning in the first policy quarter after the Policy Date. This charge will be deducted from each Investment Division and the Fixed Account, in proportion to its percentage of the Accumulation Value. The maximum annual charge is 1.00% of the policy's Accumulation Value, applied on a quarterly basis. We may set a lower charge at Our sole discretion. You should consult your Registered Representative to determine the percentage We are currently charging before you select this rider. The current charge for the EBB Rider is 0.30% of the policy's Accumulation Value, applied on a quarterly basis (0.075% per quarter). The original percentage you are charged for the EBB Rider will not change once your policy is issued. NYLIAC may in the future, charge up to the maximum annual amount described above for new policies. Finally, the value of the shares of each Fund reflects advisory fees, administration fees and other expenses deducted from the assets of each Fund. (See the Fund prospectuses which are attached to this Prospectus.) 5. WHAT ARE THE MINIMUM INITIAL AND MAXIMUM ADDITIONAL PREMIUM PAYMENTS? Unless We permit otherwise, the minimum initial premium payment for Qualified Policies is as follows: (a) for Code Section 403(b) Tax Sheltered Annuities ("TSAs"), $50 per month or a $2,000 single premium; (b) for IRAs and Roth IRAs, $1,200 initial premium payment plus pre- authorized monthly deductions of $100 per month, or pre-authorized monthly deductions of $165 per month or a $2,000 single premium; (c) for deferred compensation plans, $50 per month; and (d) for SEP plans, $600 initial premium payment or $50 per month if part of a pre-authorized billing arrangement. (e) For SIMPLE IRAs, $4,000 initial premium payment and, if part of a pre- authorized billing arrangement; an additional $50 per month. For Qualified Policies you may not make premium payments in excess of the amount permitted by law for the plan indicated. 24 For Non-Qualified Policies, the minimum initial premium payment is a $5,000 single premium or a $2,500 premium payment plus $50 per month as either a pre- authorized monthly deduction or as part of a pre-authorized monthly billing arrangement. Additional premium payments must be at least $50 each or such lower amount as We may permit at any time. You have a choice of sending premium payments directly to NYLIAC at one of the addresses listed in Question 17 of this Prospectus or through pre-authorized monthly deductions from banks, credit unions or similar accounts and public or private employee payroll deductions. The maximum aggregate amount of premium payments We accept without prior approval is $1,000,000. For policies investing in Separate Accounts-I and II that were issued for delivery in New York from August 1995 to August 1997, the following minimum initial and maximum additional premium payment requirements apply: (a) For Non-Qualified Policies, the minimum single premium payment is $2,500 plus $50 per month as either a pre-authorized monthly deduction or as part of a pre-authorized monthly billing arrangement. The maximum total dollar amount of premium payments in any Policy Year may not exceed $4,999.99. (b) For TSA policies, Section 457 deferred compensation plan policies, Simplified Employee Pension ("SEP") plan policies and any other Qualified Policies, premium payments may only be made through a pre- authorized billing arrangement. The maximum dollar amount of scheduled premium payments may not exceed the applicable annual plan limit as specified in the Internal Revenue Code. (c) For TSA transfer premium payments made to an existing TSA policy, the maximum dollar amount of transfer premium payments in the first Policy Year may not exceed $1,999.99. For any additional TSA transfer premium payments made in the second or subsequent Policy Years, the maximum total dollar amount of annual transfer premium payments may not exceed $4,999.99. (d) For Individual Retirement Annuity ("IRA") policies, the minimum premium payment is $1,200 initial and $100 scheduled under a pre-authorized monthly deduction arrangement, or $100 scheduled under a pre-authorized monthly deduction arrangement, or $2,000 lump sum. For any additional premium payments made in the second or subsequent Policy Years, the maximum total dollar amount of annual premium payments may not exceed $4,999.99. 6. HOW ARE PREMIUM PAYMENTS ALLOCATED? We will allocate the initial premium payment to the Investment Divisions and Fixed Account you have selected within two Business Days after receipt at the Cleveland or Dallas Service Center, subject to Our receipt of all information necessary to issue a policy. Subsequent premium payments will be allocated at the close of the Business Day on which they were received. (See "THE POLICIES--Policy Application and Premium Payments.") You may raise or lower the percentages (which must be in whole numbers), of the premium payment you place in each Allocation Alternative at the time you make a premium payment. The minimum amount which you may place in any one Allocation Alternative is $25, or such lower amount as We may permit. We reserve the right to limit the amount of a premium payment that may be placed in any one Allocation Alternative and the number of Investment Divisions to which you may allocate your Accumulation Value. ACCEPTANCE OF INITIAL AND ADDITIONAL PREMIUM PAYMENTS IS SUBJECT TO OUR SUITABILITY STANDARDS. 7. WHAT HAPPENS IF PREMIUM PAYMENTS ARE NOT MADE? If We do not receive any premium payments for a period of two years, and both the Accumulation Value of your policy and your total premium payments less any withdrawals, outstanding loans and surrender charges are less than $2,000, We reserve the right to terminate your policy. We will notify you of Our intention to exercise this right and give you 90 days to make a premium payment. If We terminate your policy, We will pay you the Accumulation Value of your policy in one lump sum. 8. CAN I WITHDRAW MONEY FROM THE POLICY BEFORE THE ANNUITY COMMENCEMENT DATE? You may make withdrawals from your policy before the Annuity Commencement Date and while the Annuitant is still alive. Your withdrawal request must be in a form that is acceptable to Us. Under most circumstances, you may make a minimum partial withdrawal of $500. Withdrawals may be subject to a surrender charge. In addition, you may have to pay income tax and a 10% penalty tax may apply if you are under age 59 1/2. (See "DISTRIBUTIONS UNDER THE POLICY" and "FEDERAL TAX MATTERS.") Please note that certain withdrawal requests must be made in writing and sent to NYLIAC's Variable Products Service Center. (See "DISTRIBUTIONS UNDER THE POLICY--Surrenders and Withdrawals--Partial Withdrawals and Periodic Partial Withdrawals.") 25 9. HOW WILL NYLIAC MAKE INCOME PAYMENTS ON THE ANNUITY COMMENCEMENT DATE? We will make Income Payments on a fixed basis. We do not currently offer a variable income payment option. We will make payments under the Life Income Payment Option over the life of the Annuitant with a guarantee of 10 years of payments, even if the Annuitant dies sooner. Fixed Income Payments will always be the same specified amount. (See "INCOME PAYMENTS.") We may offer other options, at Our discretion, where permitted by state law. 10. WHAT HAPPENS IF I DIE OR THE ANNUITANT DIES BEFORE THE ANNUITY COMMENCEMENT DATE? Unless amended by any rider attached to the policy, if you or the Annuitant dies before the Annuity Commencement Date, We will pay the Beneficiary(ies) under the policy an amount equal to the greater of: (a) the Accumulation Value, less any outstanding loan balance, (b) the sum of all premium payments made less any outstanding loan balance, partial withdrawals and surrender charges previously imposed, or (c) the "reset value" (as described in this Prospectus), plus any additional premium payments made since the most recent "reset date," less any outstanding loan balance, partial withdrawals and applicable surrender charges since the most recent "reset date." This feature is only available for policies investing in Separate Account-III. If the Beneficiary is the spouse of the Annuitant and the owner, see Question 11 below. (Also see "DEATH BEFORE ANNUITY COMMENCEMENT" and "FEDERAL TAX MATTERS.") 11. WHAT HAPPENS IF MY SPOUSE IS THE BENEFICIARY? If you are the owner and Annuitant and you die before the Annuity Commencement Date, your spouse may continue the policy as the new owner and Annuitant if he/she is also the sole primary Beneficiary of the policy (for Non- Qualified, IRA, Roth IRA, SIMPLE IRA and SEP policies only). If your spouse chooses to continue the policy, We will not pay the death benefit proceeds as a consequence of your death or the Annuitant's death. If you elect the EBB Rider and the Enhanced Spousal Continuance Rider ("ESC") Rider applies, see the EBB & ESC Riders. 12. CAN I RETURN THE POLICY AFTER IT IS DELIVERED? You can cancel the policy within 10 days of delivery of the policy or such longer period as required under state law. To cancel your policy, you must return it to the NYLIAC Variable Products Service Center at one of the addresses listed in Question 15 of this Prospectus or to the Registered Representative through whom you purchased it, along with a written request for cancellation in a form acceptable to Us. Except in jurisdictions where you are entitled by law to receive the total of premium payments made under the policy less any prior withdrawals, We will promptly return the Accumulation Value calculated as of the Business Day that either the Registered Representative through whom you purchased the policy or NYLIAC's Variable Products Service Center receives the policy along with the written request for cancellation. (See "THE POLICIES--Your Right to Cancel ("Free Look").") 13. WHAT ABOUT VOTING RIGHTS? You can instruct NYLIAC how to vote shares of the Funds in which you have a voting interest through the Separate Account. (See "VOTING RIGHTS.") 14. ARE POLICY LOANS AVAILABLE? If you have purchased your policy in connection with a Code Section 403(b) Tax-Sheltered Annuity ("TSA") plan, you may be able to borrow some of your Accumulation Value subject to certain conditions. (See "LOANS.") 26 15. WHERE DO I SEND WRITTEN SERVICE REQUESTS TO THE NYLIAC VARIABLE PRODUCTS SERVICE CENTER? Certain service requests, including but not limited to death benefit claims and surrenders, are required to be in writing. All written service requests must be sent to the NYLIAC Variable Products Service Center ("VPSC") at one of the following addresses: REGULAR MAIL NYLIAC Variable Products Service Center Madison Square Station P.O. Box 922 New York, NY 10159 EXPRESS MAIL NYLIAC Variable Products Service Center 51 Madison Avenue, Room 251 New York, NY 10010
Written service requests will be effective as of the Business Day they are received in a form acceptable to Us at VPSC at one of the addresses listed immediately above. Faxed requests are not acceptable and will not be honored at any time. All NYLIAC requirements must be met in order for Us to process your service requests. Please review all service request forms carefully and provide all required information that is applicable to the transaction. If all requirements are not met, We will not be able to process your service request. We will make every reasonable attempt to notify you in writing of this situation. It is important that you inform NYLIAC of an address change so that you can receive important policy statements. 16. HOW DO I CONTACT NYLIAC BY TELEPHONE OR BY THE INTERNET? A. BY TELEPHONE: Certain service requests, including but not limited to obtaining current unit values and speaking to a customer representative, may be effected by telephone. For telephonic requests, you must contact the NYLIAC Interactive Voice Response System ("IVR") toll-free by calling: (800) 598- 2019. (See "THE POLICIES--Virtual Service Center and Interactive Voice Response System.") B. BY INTERNET: Certain service requests, including but not limited to transferring assets between investment options and e-mailing your Registered Representative, may be effected via the internet. For Internet-based requests, you must contact the NYLIAC Virtual Service Center ("VSC") at www.newyorklife.com/vsc and enter your user name and password. (See "THE POLICIES--Virtual Service Center and Interactive Voice Response System.") We make IVR and VSC services available at our discretion. In addition, availability of IVR and VSC services may be interrupted temporarily at certain times. We do not assume responsibility for any loss if service through IVR or VSC should become unavailable. We will not accept e-mailed requests for policy transactions or e-mails of imaged, signed service requests. E-mail inquiries that are non-transactional may be sent through Our Virtual Service Center once they have passed all security protocols to identify the policyowner. 17. WHERE DO I SEND SUBSEQUENT PREMIUM PAYMENTS AND LOAN REPAYMENTS? Subsequent premium payments and loan repayments must be sent to one of the following addresses: REGULAR MAIL NYLIAC 75 Remittance Drive Suite 3021 Chicago, IL 60675-3021 EXPRESS MAIL NYLIAC, Suite 3021 c/o The Northern Trust Bank 350 North Orleans Street Receipt & Dispatch, 8th Floor Chicago, IL 60654
27 Subsequent premium payments and loan repayments will be credited as of the Business Day they are received in a form acceptable to Us at one of the addresses noted in this Question 17. Please note that initial premium payments are those made in connection with the issuance of a policy and are processed in accordance with our procedures. (See "THE POLICIES--Policy Application and Premium Payments.") FINANCIAL STATEMENTS The consolidated balance sheet of NYLIAC as of December 31, 2007 and 2006, and the consolidated statements of income, of stockholder's equity and of cash flows for each of the three years in the period ended December 31, 2007 (including the report of the independent registered public accounting firm); and the Separate Account statement of assets and liabilities as of December 31, 2007, and the statements of operations and of changes in net assets, and the financial highlights for each of the periods indicated in the Financial Statements (including the report of the independent registered public accounting firm), are included in the SAI. The independent registered public accounting firm is PricewaterhouseCoopers LLP, New York, NY. 28 SEPARATE ACCOUNT-III CONDENSED FINANCIAL INFORMATION The following Accumulation Unit values and the number of Accumulation Units outstanding for each Investment Division, which were available for sale, for each fiscal year ended December 31 presented below are derived from the financial statements audited by PricewaterhouseCoopers LLP, independent registered public accounting firm, included in the Statement of Additional Information. The Accumulation Unit values and the number of Accumulation Units outstanding for each Investment Division as of December 31, 2002 and for the years in the period then ended, where applicable, are derived from financial statements not included herein. Values and units shown are for full year periods beginning January 1 except where indicated. The policies were first offered on May 1, 1995. SOME INVESTMENT DIVISIONS OFFERED IN POLICIES ISSUED PRIOR TO JUNE 2, 2003 DIFFER FROM INVESTMENT DIVISIONS OFFERED IN POLICIES ISSUED ON OR AFTER JUNE 2, 2003. PLEASE REFER TO THE EXAMPLE SECTION OF THIS PROSPECTUS TO A LIST OF THE CORRESPONDING INVESTMENT DIVISIONS AVAILABLE TO YOU.
MAINSTAY VP MAINSTAY VP BALANCED-- BOND-- MAINSTAY VP BOND--INITIAL SERVICE CLASS SERVICE CLASS CLASS --------------------------- ----------------------------------------------- -------------------------- 2007 2006 2005(G) 2007 2006 2005 2004 2003(C) 2007 2006 2005 ------ ------ ------- ------ ------ ------ ------ ------- ------ ------ ------ Accumulation Unit Value (beginning of period)...... $11.38 $10.46 $10.00 $10.49 $10.20 $10.15 $ 9.91 $10.00 $16.64 $16.14 $16.01 Accumulation Unit Value (end of period)...... $11.51 $11.38 $10.46 $10.99 $10.49 $10.20 $10.15 $ 9.91 $17.47 $16.64 $16.14 Number of Units Outstanding (in 000s) (end of period)...... 3,754 4,111 3,115 1,553 1,297 1,110 737 296 5,935 6,999 8,911 MAINSTAY VP BOND--INITIAL CLASS ---------------------------------------------------------------------- 2004 2003 2002 2001 2000 1999 1998 ------- ------- ------- ------- ------ ------ ------ Accumulation Unit Value (beginning of period)...... $ 15.60 $ 15.14 $ 14.02 $ 13.01 $12.02 $12.37 $11.50 Accumulation Unit Value (end of period)...... $ 16.01 $ 15.60 $ 15.14 $ 14.02 $13.01 $12.02 $12.37 Number of Units Outstanding (in 000s) (end of period)...... 10,346 12,616 14,282 11,339 6,588 6,871 4,993
MAINSTAY VP CAPITAL APPRECIATION-- SERVICE CLASS MAINSTAY VP CAPITAL APPRECIATION--INITIAL CLASS ----------------------------------------------- ------------------------------------------------------------- 2007 2006 2005 2004 2003(C) 2007 2006 2005 2004 2003 2002 ------ ------ ------ ------ ------- ------ ------- ------- ------- ------- ------- Accumulation Unit Value (beginning of period)...... $12.51 $12.17 $11.42 $11.15 $10.00 $18.38 $ 17.85 $ 16.70 $ 16.26 $ 12.98 $ 19.03 Accumulation Unit Value (end of period)...... $13.83 $12.51 $12.17 $11.42 $11.15 $20.37 $ 18.38 $ 17.85 $ 16.70 $ 16.26 $ 12.98 Number of Units Outstanding (in 000s) (end of period)...... 888 859 788 653 248 9,739 12,330 15,825 20,255 23,240 25,441 MAINSTAY VP CAPITAL APPRECIATION--INITIAL CLASS ---------------------------------------- 2001 2000 1999 1998 ------- ------- ------- ------- Accumulation Unit Value (beginning of period)...... $ 25.14 $ 28.55 $ 23.09 $ 16.95 Accumulation Unit Value (end of period)...... $ 19.03 $ 25.14 $ 28.55 $ 23.09 Number of Units Outstanding (in 000s) (end of period)...... 29,099 29,793 23,024 15,940
MAINSTAY VP CASH MANAGEMENT ------------------------------------------------------------------------------------------------------- 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 ------ ------ ------ ------- ------- ------- ------- ------- ------- ------- Accumulation Unit Value (beginning of period)...... $1.31 $1.27 $1.25 $1.26 $1.27 $1.27 $1.24 $1.18 $1.14 $1.10 Accumulation Unit Value (end of period)...... $1.35 $1.31 $1.27 $1.25 $1.26 $1.27 $1.27 $1.24 $1.18 $1.14 Number of Units Outstanding (in 000s) (end of period)...... 90,100 71,765 82,631 100,042 130,435 208,084 205,310 133,091 248,786 105,842
MAINSTAY VP COMMON STOCK-- SERVICE CLASS MAINSTAY VP COMMON STOCK--INITIAL CLASS ----------------------------------------------- ----------------------------------------------------------- 2007 2006 2005 2004 2003(C) 2007 2006 2005 2004 2003 2002 ------ ------ ------ ------ ------- ------ ------ ------ ------- ------- ------- Accumulation Unit Value (beginning of period)...... $15.09 $13.17 $12.44 $11.40 $10.00 $27.11 $23.61 $22.23 $ 20.33 $ 16.31 $ 21.84 Accumulation Unit Value (end of period)...... $15.61 $15.09 $13.17 $12.44 $11.40 $28.11 $27.11 $23.61 $ 22.23 $ 20.33 $ 16.31 Number of Units Outstanding (in 000s) (end of period)...... 745 662 539 387 162 6,457 8,043 9,934 12,168 13,689 14,959 MAINSTAY VP COMMON STOCK--INITIAL CLASS --------------------------------------- 2001 2000 1999 1998 ------- ------- ------- ------ Accumulation Unit Value (beginning of period)...... $ 26.71 $ 28.02 $ 21.87 $17.52 Accumulation Unit Value (end of period)...... $ 21.84 $ 26.71 $ 28.02 $21.87 Number of Units Outstanding (in 000s) (end of period)...... 16,447 15,714 11,321 8,239
------- (c) For the period June 2, 2003 (commencement of operations in the Separate Account) through December 31, 2003. (g) For the period May 1, 2005 (commencement of operations in the Separate Account) through December 31, 2005. 29
MAINSTAY VP CONSERVATIVE MAINSTAY VP ALLOCATION-- CONVERTIBLE-- MAINSTAY VP CONVERTIBLE--INITIAL SERVICE CLASS SERVICE CLASS CLASS ----------------- ----------------------------------------------- ------------------------------------ 2007 2006(H) 2007 2006 2005 2004 2003(C) 2007 2006 2005 2004 ------ ------- ------ ------ ------ ------ ------- ------ ------ ------ ------ Accumulation Unit Value (beginning of period)...... $10.66 $10.00 $13.07 $12.03 $11.48 $10.99 $10.00 $20.13 $18.49 $17.59 $16.81 Accumulation Unit Value (end of period)...... $11.28 $10.66 $14.77 $13.07 $12.03 $11.48 $10.99 $22.80 $20.13 $18.49 $17.59 Number of Units Outstanding (in 000s) (end of period)...... 3,010 1,612 1,392 1,248 1,105 884 347 5,245 6,442 7,778 9,263 MAINSTAY VP CONVERTIBLE--INITIAL CLASS --------------------------------------------------------- 2003 2002 2001 2000 1999 1998 ------- ------ ------ ------ ------ ------ Accumulation Unit Value (beginning of period)...... $ 13.95 $15.36 $15.92 $17.00 $12.14 $11.78 Accumulation Unit Value (end of period)...... $ 16.81 $13.95 $15.36 $15.92 $17.00 $12.14 Number of Units Outstanding (in 000s) (end of period)...... 10,078 9,467 9,385 7,873 3,826 3,139
MAINSTAY VP MAINSTAY VP DEVELOPING GROWTH-- DEVELOPING GROWTH-- SERVICE CLASS INITIAL CLASS ----------------------------------------------- -------------------------------------------------------- 2007 2006 2005 2004 2003(C) 2007 2006 2005 2004 2003 2002 ------ ------ ------ ------ ------- ------ ------ ------ ------ ------ ------ Accumulation Unit Value (beginning of period)...... $14.78 $13.34 $12.11 $11.63 $10.00 $10.62 $ 9.57 $ 8.66 $ 8.30 $ 6.07 $ 8.67 Accumulation Unit Value (end of period)...... $19.79 $14.78 $13.34 $12.11 $11.63 $14.26 $10.62 $ 9.57 $ 8.66 $ 8.30 $ 6.07 Number of Units Outstanding (in 000s) (end of period)...... 404 316 235 161 55 1,275 1,389 1,609 2,817 3,094 2,893 MAINSTAY VP MAINSTAY VP DEVELOPING GROWTH-- FLOATING RATE-- INITIAL CLASS SERVICE CLASS ------------------------------------- --------------------------- 2001 2000 1999 1998(A) 2007 2006 2005(G) ------ ------ ------ ------- ------ ------ ------- Accumulation Unit Value (beginning of period)...... $ 9.49 $11.89 $ 9.12 $10.00 $10.52 $10.10 $10.00 Accumulation Unit Value (end of period)...... $ 8.67 $ 9.49 $11.89 $ 9.12 $10.62 $10.52 $10.10 Number of Units Outstanding (in 000s) (end of period)...... 2,959 3,141 2,276 1,573 4,749 6,301 3,612
MAINSTAY VP GOVERNMENT-- SERVICE CLASS MAINSTAY VP GOVERNMENT--INITIAL CLASS --------------------------------------------- ---------------------------------------------------------- 2007 2006 2005 2004 2003(C) 2007 2006 2005 2004 2003 2002 ------ ------ ----- ----- ------- ------ ------ ------ ------ ------- ------- Accumulation Unit Value (beginning of period)...... $10.21 $ 9.97 $9.91 $9.75 $10.00 $16.02 $15.61 $15.46 $15.17 $ 15.10 $ 13.94 Accumulation Unit Value (end of period)...... $10.71 $10.21 $9.97 $9.91 $ 9.75 $16.85 $16.02 $15.61 $15.46 $ 15.17 $ 15.10 Number of Units Outstanding (in 000s) (end of period)...... 1,190 1,005 881 614 272 4,166 5,160 6,756 8,248 11,183 15,260 MAINSTAY VP GOVERNMENT--INITIAL CLASS ------------------------------------ 2001 2000 1999 1998 ------ ------ ------ ------ Accumulation Unit Value (beginning of period)...... $13.26 $11.98 $12.37 $11.51 Accumulation Unit Value (end of period)...... $13.94 $13.26 $11.98 $12.37 Number of Units Outstanding (in 000s) (end of period)...... 8,293 4,508 5,008 3,208
MAINSTAY VP GROWTH MAINSTAY VP ALLOCATION-- HIGH YIELD CORPORATE BOND-- MAINSTAY VP HIGH YIELD CORPORATE SERVICE CLASS SERVICE CLASS BOND--INITIAL CLASS ----------------- ----------------------------------------------- ------------------------------------ 2007 2006(H) 2007 2006 2005 2004 2003(C) 2007 2006 2005 2004 ------ ------- ------ ------ ------ ------ ------- ------ ------ ------ ------ Accumulation Unit Value (beginning of period)...... $11.08 $10.00 $14.12 $12.81 $12.65 $11.41 $10.00 $25.46 $23.05 $22.70 $20.42 Accumulation Unit Value (end of period)...... $12.03 $11.08 $14.20 $14.12 $12.81 $12.65 $11.41 $25.68 $25.46 $23.05 $22.70 Number of Units Outstanding (in 000s) (end of period)...... 2,631 1,524 5,387 4,654 3,920 2,643 920 14,914 18,683 23,132 27,478 MAINSTAY VP HIGH YIELD CORPORATE BOND--INITIAL CLASS -------------------------------------------------------- 2003 2002 2001 2000 1999 1998 ------ ------ ------ ------ ------ ------ Accumulation Unit Value (beginning of period)...... $15.19 $15.09 $14.59 $15.72 $14.12 $13.95 Accumulation Unit Value (end of period)...... $20.42 $15.19 $15.09 $14.59 $15.72 $14.12 Number of Units Outstanding (in 000s) (end of period)...... 30,240 27,478 28,228 25,693 25,509 21,960
------- (a) For the period May 1, 1998 (commencement of operations in the Separate Account) through December 31, 1998. (c) For the period June 2, 2003 (commencement of operations in the Separate Account) through December 31, 2003. (g) For the period May 1, 2005 (commencement of operations in the Separate Account) through December 31, 2005. (h) For the period February 13, 2006 (commencement of operations in the Separate Account) through December 31, 2006. 30
MAINSTAY VP ICAP SELECT EQUITY-- SERVICE CLASS MAINSTAY VP ICAP SELECT EQUITY--INITIAL CLASS ----------------------------------------------- -------------------------------------------------------- 2007 2006 2005 2004 2003(C) 2007 2006 2005 2004 2003 2002 ------ ------ ------ ------ ------- ------ ------ ------ ------ ------ ------ Accumulation Unit Value (beginning of period)...... $15.10 $12.87 $12.40 $11.32 $10.00 $13.68 $11.63 $11.18 $10.18 $ 8.07 $10.61 Accumulation Unit Value (end of period)...... $15.87 $15.10 $12.87 $12.40 $11.32 $14.42 $13.68 $11.63 $11.18 $10.18 $ 8.07 Number of Units Outstanding (in 000s) (end of period)...... 1,166 413 332 251 73 4,594 2,640 2,904 3,342 3,407 4,314 MAINSTAY VP ICAP SELECT EQUITY--INITIAL CLASS ------------------------------------- 2001 2000 1999 1998(A) ------ ------ ------ ------- Accumulation Unit Value (beginning of period)...... $11.27 $10.72 $10.19 $10.00 Accumulation Unit Value (end of period)...... $10.61 $11.27 $10.72 $10.19 Number of Units Outstanding (in 000s) (end of period)...... 4,211 3,356 2,397 1,629
MAINSTAY VP INTERNATIONAL EQUITY-- SERVICE CLASS MAINSTAY VP INTERNATIONAL EQUITY--INITIAL CLASS ----------------------------------------------- -------------------------------------------------------- 2007 2006 2005 2004 2003(C) 2007 2006 2005 2004 2003 2002 ------ ------ ------ ------ ------- ------ ------ ------ ------ ------ ------ Accumulation Unit Value (beginning of period)...... $18.59 $14.39 $13.55 $11.74 $10.00 $24.94 $19.26 $18.09 $15.63 $12.19 $12.94 Accumulation Unit Value (end of period)...... $19.19 $18.59 $14.39 $13.55 $11.74 $25.81 $24.94 $19.26 $18.09 $15.63 $12.19 Number of Units Outstanding (in 000s) (end of period)...... 1,806 1,339 869 441 114 3,273 3,643 3,484 2,925 2,229 1,933 MAINSTAY VP INTERNATIONAL EQUITY--INITIAL CLASS ------------------------------------ 2001 2000 1999 1998 ------ ------ ------ ------ Accumulation Unit Value (beginning of period)...... $15.26 $18.88 $14.95 $12.32 Accumulation Unit Value (end of period)...... $12.94 $15.26 $18.88 $14.95 Number of Units Outstanding (in 000s) (end of period)...... 1,537 1,556 1,204 1,012
MAINSTAY VP LARGE CAP GROWTH-- SERVICE CLASS MAINSTAY VP LARGE CAP GROWTH--INITIAL CLASS ----------------------------------------------- -------------------------------------------------------- 2007 2006 2005 2004 2003(C) 2007 2006 2005 2004 2003 2002 ------ ------ ------ ------ ------- ------ ------ ------ ------ ------ ------ Accumulation Unit Value (beginning of period)...... $11.56 $10.96 $10.67 $11.11 $10.00 $13.04 $12.33 $11.98 $12.44 $ 9.85 $13.92 Accumulation Unit Value (end of period)...... $13.79 $11.56 $10.96 $10.67 $11.11 $15.61 $13.04 $12.33 $11.98 $12.44 $ 9.85 Number of Units Outstanding (in 000s) (end of period)...... 586 419 278 191 74 3,618 4,322 5,180 6,615 7,818 8,375 MAINSTAY VP LARGE CAP GROWTH--INITIAL CLASS ------------------------------------- 2001 2000 1999 1998(A) ------ ------ ------ ------- Accumulation Unit Value (beginning of period)...... $16.92 $19.06 $11.68 $10.00 Accumulation Unit Value (end of period)...... $13.92 $16.92 $19.06 $11.68 Number of Units Outstanding (in 000s) (end of period)...... 9,537 9,323 2,730 1,408
MAINSTAY VP MID CAP CORE-- SERVICE CLASS ----------------------------------------------- 2007 2006 2005 2004 2003(C) ------ ------ ------ ------ ------- Accumulation Unit Value (beginning of period)...... $18.28 $16.17 $14.19 $11.80 $10.00 Accumulation Unit Value (end of period)...... $18.88 $18.28 $16.17 $14.19 $11.80 Number of Units Outstanding (in 000s) (end of period)...... 1,176 986 740 414 125 MAINSTAY VP MID CAP CORE-- INITIAL CLASS ------------------------------------------------------------------ 2007 2006 2005 2004 2003 2002 2001(B) ------ ------ ------ ------ ------ ----- ------- Accumulation Unit Value (beginning of period)...... $16.74 $14.77 $12.92 $10.73 $ 8.03 $9.35 $10.00 Accumulation Unit Value (end of period)...... $17.34 $16.74 $14.77 $12.92 $10.73 $8.03 $ 9.35 Number of Units Outstanding (in 000s) (end of period)...... 2,539 2,876 3,204 2,964 2,245 1,872 734 MAINSTAY VP MID CAP GROWTH-- SERVICE CLASS ----------------------------------------------- 2007 2006 2005 2004 2003(C) ------ ------ ------ ------ ------- Accumulation Unit Value (beginning of period)...... $18.02 $16.77 $14.56 $12.07 $10.00 Accumulation Unit Value (end of period)...... $20.52 $18.02 $16.77 $14.56 $12.07 Number of Units Outstanding (in 000s) (end of period)...... 1,460 1,334 1,104 653 197
------- (a) For the period May 1, 1998 (commencement of operations in the Separate Account) through December 31, 1998. (b) For the period July 6, 2001 (commencement of operations in the Separate Account) through December 31, 2001. (c) For the period June 2, 2003 (commencement of operations in the Separate Account) through December 31, 2003. 31
MAINSTAY VP MID CAP GROWTH-- INITIAL CLASS ----------------------------------------------------------------- 2007 2006 2005 2004 2003 2002 2001(B) ------ ------ ------ ------ ----- ----- ------- Accumulation Unit Value (beginning of period)...... $13.75 $12.76 $11.05 $ 9.14 $6.40 $9.09 $10.00 Accumulation Unit Value (end of period)...... $15.70 $13.75 $12.76 $11.05 $9.14 $6.40 $ 9.09 Number of Units Outstanding (in 000s) (end of period)...... 3,847 4,615 5,239 4,905 3,998 1,768 855 MAINSTAY VP MID CAP VALUE-- SERVICE CLASS ----------------------------------------------- 2007 2006 2005 2004 2003(C) ------ ------ ------ ------ ------- Accumulation Unit Value (beginning of period)...... $15.64 $13.94 $13.41 $11.60 $10.00 Accumulation Unit Value (end of period)...... $15.20 $15.64 $13.94 $13.41 $11.60 Number of Units Outstanding (in 000s) (end of period)...... 1,788 1,582 1,298 688 207 MAINSTAY VP MID CAP VALUE--INITIAL CLASS ------------------------------------------------------------------ 2007 2006 2005 2004 2003 2002 2001(B) ------ ------ ------ ------ ------ ----- ------- Accumulation Unit Value (beginning of period)...... $14.31 $12.72 $12.20 $10.53 $ 8.28 $9.83 $10.00 Accumulation Unit Value (end of period)...... $13.95 $14.31 $12.72 $12.20 $10.53 $8.28 $ 9.83 Number of Units Outstanding (in 000s) (end of period)...... 5,250 6,320 7,547 7,353 6,201 5,378 1,781
MAINSTAY VP MAINSTAY VP MODERATE MODERATE GROWTH MAINSTAY VP ALLOCATION-- ALLOCATION-- S&P 500 INDEX-- SERVICE CLASS SERVICE CLASS SERVICE CLASS ----------------- ----------------- ----------------------------------------------- 2007 2006(H) 2007 2006(H) 2007 2006 2005 2004 2003(C) ------ ------- ------ ------- ------ ------ ------ ------ ------- Accumulation Unit Value (beginning of period)...... $10.83 $10.00 $11.03 $10.00 $14.32 $12.61 $12.24 $11.26 $10.00 Accumulation Unit Value (end of period)...... $11.59 $10.83 $11.87 $11.03 $14.82 $14.32 $12.61 $12.24 $11.26 Number of Units Outstanding (in 000s) (end of period)...... 4,704 2,780 5,620 3,194 3,356 3,049 2,570 1,713 606 MAINSTAY VP S&P 500 INDEX--INITIAL CLASS ------------------------------------------------------------------------------------------------- 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 ------ ------ ------ ------ ------ ------ ------ ------ ------ ------- Accumulation Unit Value (beginning of period)...... $26.58 $23.35 $22.60 $20.74 $16.41 $21.39 $24.68 $27.60 $23.19 $ 18.30 Accumulation Unit Value (end of period)...... $27.58 $26.58 $23.35 $22.60 $20.74 $16.41 $21.39 $24.68 $27.60 $ 23.19 Number of Units Outstanding (in 000s) (end of period)...... 12,943 16,021 19,872 23,603 25,814 27,274 30,265 30,595 24,805 17,575
MAINSTAY VP SMALL CAP GROWTH-- SERVICE CLASS ----------------------------------------------- 2007 2006 2005 2004 2003(C) ------ ------ ------ ------ ------- Accumulation Unit Value (beginning of period)...... $14.10 $13.48 $13.17 $12.24 $10.00 Accumulation Unit Value (end of period)...... $13.43 $14.10 $13.48 $13.17 $12.24 Number of Units Outstanding (in 000s) (end of period)...... 1,108 1,048 921 593 192 MAINSTAY VP SMALL CAP GROWTH--INITIAL CLASS ------------------------------------------------------------------ 2007 2006 2005 2004 2003 2002 2001(B) ------ ------ ------ ------ ------ ----- ------- Accumulation Unit Value (beginning of period)...... $11.16 $10.64 $10.37 $ 9.61 $ 6.88 $9.48 $10.00 Accumulation Unit Value (end of period)...... $10.65 $11.16 $10.64 $10.37 $ 9.61 $6.88 $9.48 Number of Units Outstanding (in 000s) (end of period)...... 2,292 2,996 3,613 4,375 4,177 2,600 1,286 MAINSTAY VP TOTAL RETURN-- SERVICE CLASS ----------------------------------------------- 2007 2006 2005 2004 2003(C) ------ ------ ------ ------ ------- Accumulation Unit Value (beginning of period)...... $12.66 $11.76 $11.23 $10.73 $10.00 Accumulation Unit Value (end of period)...... $13.39 $12.66 $11.76 $11.23 $10.73 Number of Units Outstanding (in 000s) (end of period)...... 746 720 665 501 171
MAINSTAY VP TOTAL RETURN--INITIAL CLASS ------------------------------------------------------------------------------------------------- 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 ------ ------ ------ ------ ------ ------ ------ ------ ------ ------- Accumulation Unit Value (beginning of period)...... $20.23 $18.74 $17.84 $17.01 $14.41 $17.52 $19.89 $21.09 $18.28 $ 14.58 Accumulation Unit Value (end of period)...... $21.45 $20.23 $18.74 $17.84 $17.01 $14.41 $17.52 $19.89 $21.09 $ 18.28 Number of Units Outstanding (in 000s) (end of period)...... 6,205 7,691 9,593 12,145 13,754 14,813 16,939 17,027 14,509 11,136
------- (b) For the period July 6, 2001 (commencement of operations in the Separate Account) through December 31, 2001. (c) For the period June 2, 2003 (commencement of operations in the Separate Account) through December 31, 2003. (h) For the period February 13, 2006 (commencement of operations in the Separate Account) through December 31, 2006. 32
MAINSTAY VP VALUE-- SERVICE CLASS MAINSTAY VP VALUE--INITIAL CLASS ----------------------------------------------- -------------------------------------------------------- 2007 2006 2005 2004 2003(C) 2007 2006 2005 2004 2003 2002 ------ ------ ------ ------ ------- ------ ------ ------ ------ ------ ------ Accumulation Unit Value (beginning of period)...... $15.44 $13.21 $12.64 $11.55 $10.00 $24.56 $20.95 $19.99 $18.22 $14.51 $18.64 Accumulation Unit Value (end of period)...... $15.52 $15.44 $13.21 $12.64 $11.55 $24.74 $24.56 $20.95 $19.99 $18.22 $14.51 Number of Units Outstanding (in 000s) (end of period)...... 1,274 1,121 888 633 223 6,108 7,477 8,804 10,255 11,104 11,706 MAINSTAY VP VALUE--INITIAL CLASS ------------------------------------- 2001 2000 1999 1998 ------ ------ ------ ------- Accumulation Unit Value (beginning of period)...... $18.82 $16.91 $15.76 $ 16.67 Accumulation Unit Value (end of period)...... $18.64 $18.82 $16.91 $ 15.76 Number of Units Outstanding (in 000s) (end of period)...... 11,482 8,963 9,782 10,004
ALGER AMERICAN SMALLCAP GROWTH-- CLASS S SHARES ALGER AMERICAN SMALLCAP GROWTH--CLASS O SHARES ----------------------------------------------- ------------------------------------------------------- 2007 2006 2005 2004 2003(C) 2007 2006 2005 2004 2003 2002 ------ ------ ------ ------ ------- ------ ------ ------ ----- ------ ------ Accumulation Unit Value (beginning of period)...... $18.93 $16.04 $13.95 $12.16 $10.00 $13.53 $11.43 $9.92 $8.63 $ 6.15 $ 8.45 Accumulation Unit Value (end of period)...... $21.83 $18.93 $16.04 $13.95 $12.16 $15.64 $13.53 $11.43 $9.92 $ 8.63 $ 6.15 Number of Units Outstanding (in 000s) (end of period)...... 592 564 364 210 55 3,861 5,028 5,793 6,515 6,994 7,192 ALGER AMERICAN SMALLCAP GROWTH--CLASS O SHARES ------------------------------------ 2001 2000 1999 1998 ------ ------ ------ ------ Accumulation Unit Value (beginning of period)...... $12.16 $16.93 $11.97 $10.51 Accumulation Unit Value (end of period)...... $ 8.45 $12.16 $16.93 $11.97 Number of Units Outstanding (in 000s) (end of period)...... 7,864 7,657 3,063 1,904
CVS CALVERT SOCIAL BALANCED PORTFOLIO ------------------------------------------------------------------------------------------------ 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ Accumulation Unit Value (beginning of period)...... $19.96 $18.61 $17.86 $16.73 $14.22 $16.41 $17.89 $18.72 $16.92 $14.76 Accumulation Unit Value (end of period)...... $20.22 $19.96 $18.61 $17.86 $16.73 $14.22 $16.41 $17.89 $18.72 $16.92 Number of Units Outstanding (in 000s) (end of period)...... 1,057 1,268 1,536 1,684 1,655 1,627 1,668 1,484 987 594
DREYFUS IP COLUMBIA SMALL CAP VALUE FUND, DREYFUS IP TECHNOLOGY VARIABLE SERIES-- TECHNOLOGY GROWTH-- GROWTH--INITIAL CLASS B SERVICE SHARES SHARES ----------------------------------- ----------------------------------------------- ---------------- 2007 2006 2005 2004(E) 2007 2006 2005 2004 2003(C) 2007 2006 ------ ------ ------ ------- ------ ------ ------ ------ ------- ------ ------ Accumulation Unit Value (beginning of period)...... $12.99 $11.03 $10.61 $10.00 $12.18 $11.87 $11.63 $11.77 $10.00 $ 9.12 $ 8.87 Accumulation Unit Value (end of period)...... $12.48 $12.99 $11.03 $10.61 $13.74 $12.18 $11.87 $11.63 $11.77 $10.32 $ 9.12 Number of Units Outstanding (in 000s) (end of period)...... 1,274 1,275 704 49 525 476 396 277 104 1,065 1,284 DREYFUS IP TECHNOLOGY FIDELITY(R) VIP CONTRAFUND(R)-- GROWTH--INITIAL SHARES SERVICE CLASS 2 ------------------------------------------- ----------------------------------------------- 2005 2004 2003 2002 2001(B) 2007 2006 2005 2004 2003(C) ----- ----- ----- ----- ------- ------ ------ ------ ------ ------- Accumulation Unit Value (beginning of period)...... $8.67 $8.75 $5.88 $9.84 $10.00 $16.78 $15.27 $13.27 $11.69 $10.00 Accumulation Unit Value (end of period)...... $8.87 $8.67 $8.75 $5.88 $ 9.84 $19.41 $16.78 $15.27 $13.27 $11.69 Number of Units Outstanding (in 000s) (end of period)...... 1,423 1,936 2,027 815 325 3,275 2,697 1,792 955 318
------- (b) For the period July 6, 2001 (commencement of operations in the Separate Account) through December 31, 2001. (c) For the period June 2, 2003 (commencement of operations in the Separate Account) through December 31, 2003. (e) For the period November 15, 2004 (commencement of operations in the Separate Account) through December 31, 2004. 33
FIDELITY(R) VIP CONTRAFUND(R)--INITIAL CLASS ------------------------------------------------------------------------------------------------ 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ Accumulation Unit Value (beginning of period)...... $26.67 $24.21 $21.00 $18.44 $14.56 $16.28 $18.82 $20.44 $16.68 $13.01 Accumulation Unit Value (end of period)...... $30.93 $26.67 $24.21 $21.00 $18.44 $14.56 $16.28 $18.82 $20.44 $16.68 Number of Units Outstanding (in 000s) (end of period)...... 10,034 12,342 14,328 15,206 15,836 16,358 17,160 16,983 12,004 7,022 FIDELITY(R) VIP EQUITY-INCOME-- SERVICE CLASS 2 ----------------------------------------------- 2007 2006 2005 2004 2003(C) ------ ------ ------ ------ ------- Accumulation Unit Value (beginning of period)...... $15.57 $13.16 $12.64 $11.53 $10.00 Accumulation Unit Value (end of period)...... $15.54 $15.57 $13.16 $12.64 $11.53 Number of Units Outstanding (in 000s) (end of period)...... 2,168 1,806 1,344 810 251
FIDELITY(R) VIP EQUITY-INCOME--INITIAL CLASS ----------------------------------------------------------------------------------------------------------- 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997 ------ ------ ------ ------- ------ ------ ------ ------ ------ ------ ------ Accumulation Unit Value (beginning of period)...... $21.86 $18.45 $17.67 $ 16.07 $12.50 $15.26 $16.29 $15.23 $14.53 $13.20 $10.45 Accumulation Unit Value (end of period)...... $21.89 $21.86 $18.45 $ 17.67 $16.07 $12.50 $15.26 $16.29 $15.23 $14.53 $13.20 Number of Units Outstanding (in 000s) (end of period)...... 6,579 8,089 9,399 10,725 11,179 11,548 11,501 9,762 8,139 5,850 2,267 FIDELITY(R) VIP MID CAP-- SERVICE CLASS 2 ----------------------------------------------- 2007 2006 2005 2004 2003(D) ------ ------ ------ ------ ------- Accumulation Unit Value (beginning of period)...... $17.87 $16.12 $13.85 $11.27 $10.00 Accumulation Unit Value (end of period)...... $20.32 $17.87 $16.12 $13.85 $11.27 Number of Units Outstanding (in 000s) (end of period)...... 3,593 3,833 3,580 2,037 199
JANUS ASPEN JANUS ASPEN SERIES BALANCED-- SERIES BALANCED-- SERVICE SHARES INSTITUTIONAL SHARES ----------------------------------------------- -------------------------------------------------------------- 2007 2006 2005 2004 2003(C) 2007 2006 2005 2004 2003 2002 ------ ------ ------ ------ ------- ------- ------- ------- ------- ------- ------- Accumulation Unit Value (beginning of period)...... $12.98 $11.92 $11.23 $10.52 $10.00 $ 23.85 $ 21.84 $ 20.52 $ 19.17 $ 17.05 $ 18.48 Accumulation Unit Value (end of period)...... $14.12 $12.98 $11.92 $11.23 $10.52 $ 25.99 $ 23.85 $ 21.84 $ 20.52 $ 19.17 $ 17.05 Number of Units Outstanding (in 000s) (end of period)...... 1,561 1,416 1,217 924 410 12,429 15,886 20,068 24,437 28,250 31,372 JANUS ASPEN SERIES BALANCED-- INSTITUTIONAL SHARES --------------------------------------- 2001 2000 1999 1998 ------- ------- ------- ------ Accumulation Unit Value (beginning of period)...... $ 19.66 $ 20.40 $ 16.32 $12.32 Accumulation Unit Value (end of period)...... $ 18.48 $ 19.66 $ 20.40 $16.32 Number of Units Outstanding (in 000s) (end of period)...... 32,862 30,425 16,575 6,418
JANUS ASPEN SERIES WORLDWIDE GROWTH-- JANUS ASPEN SERIES WORLDWIDE GROWTH--INSTITUTIONAL SERVICE SHARES SHARES ----------------------------------------------- -------------------------------------------------------- 2007 2006 2005 2004 2003(C) 2007 2006 2005 2004 2003 2002 ------ ------ ------ ------ ------- ------ ------ ------ ------ ------ ------ Accumulation Unit Value (beginning of period)...... $14.38 $12.37 $11.88 $11.53 $10.00 $18.48 $15.85 $15.18 $14.70 $12.02 $16.36 Accumulation Unit Value (end of period)...... $15.51 $14.38 $12.37 $11.88 $11.53 $19.97 $18.48 $15.85 $15.18 $14.70 $12.02 Number of Units Outstanding (in 000s) (end of period)...... 545 476 416 297 121 7,468 9,403 11,939 15,251 18,103 20,859 JANUS ASPEN SERIES WORLDWIDE GROWTH--INSTITUTIONAL SHARES ------------------------------------ 2001 2000 1999 1998 ------ ------ ------ ------ Accumulation Unit Value (beginning of period)...... $21.39 $25.73 $15.86 $12.48 Accumulation Unit Value (end of period)...... $16.36 $21.39 $25.73 $15.86 Number of Units Outstanding (in 000s) (end of period)...... 23,563 23,672 12,816 7,855
------- (c) For the period June 2, 2003 (commencement of operations in the Separate Account) through December 31, 2003. (d) For the period September 5, 2003 (commencement of operations in the Separate Account) through December 31, 2003. 34
MFS(R) INVESTORS TRUST SERIES-- SERVICE CLASS MFS(R) INVESTORS TRUST SERIES--INITIAL CLASS ----------------------------------------------- -------------------------------------------------------------- 2007 2006 2005 2004 2003(C) 2007 2006 2005 2004 2003 2002 2001 ------ ------ ------ ------ ------- ------ ------ ----- ----- ----- ----- ------ Accumulation Unit Value (beginning of period)...... $13.96 $12.56 $11.91 $10.86 $10.00 $11.03 $ 9.90 $9.35 $8.52 $7.07 $9.07 $10.95 Accumulation Unit Value (end of period)...... $15.14 $13.96 $12.56 $11.91 $10.86 $11.99 $11.03 $9.90 $9.35 $8.52 $7.07 $ 9.07 Number of Units Outstanding (in 000s) (end of period)...... 104 100 92 70 12 1,374 1,764 2,160 2,599 2,885 3,138 3,303 MFS(R) INVESTORS TRUST SERIES--INITIAL CLASS --------------------------- 2000 1999 1998(A) ------ ------ ------- Accumulation Unit Value (beginning of period)...... $11.12 $10.57 $10.00 Accumulation Unit Value (end of period)...... $10.95 $11.12 $10.57 Number of Units Outstanding (in 000s) (end of period)...... 2,695 1,685 435
MFS(R) RESEARCH SERIES-- SERVICE CLASS MFS(R) RESEARCH SERIES--INITIAL CLASS ----------------------------------------------- -------------------------------------------------------- 2007 2006 2005 2004 2003(C) 2007 2006 2005 2004 2003 2002 ------ ------ ------ ------ ------- ------ ------ ------ ------ ------ ------ Accumulation Unit Value (beginning of period)...... $14.48 $13.33 $12.56 $11.02 $10.00 $11.69 $10.73 $10.09 $ 8.84 $ 7.19 $ 9.66 Accumulation Unit Value (end of period)...... $16.13 $14.48 $13.33 $12.56 $11.02 $13.05 $11.69 $10.73 $10.09 $ 8.84 $ 7.19 Number of Units Outstanding (in 000s) (end of period)...... 143 130 112 74 35 1,536 2,180 2,867 3,422 3,779 4,107 MFS(R) RESEARCH SERIES--INITIAL CLASS ------------------------------------- 2001 2000 1999 1998(A) ------ ------ ------ ------- Accumulation Unit Value (beginning of period)...... $12.44 $13.25 $10.83 $10.00 Accumulation Unit Value (end of period)...... $ 9.66 $12.44 $13.25 $10.83 Number of Units Outstanding (in 000s) (end of period)...... 4,857 4,054 999 252
NEUBERGER BERMAN AMT MFS(R) UTILITIES SERIES-- MID-CAP GROWTH PORTFOLIO-- SERVICE CLASS CLASS S ------------------------------------- ------------------------------------- 2007 2006 2005 2004(F) 2007 2006 2005 2004(F) ------ ------ ------ ------- ------ ------ ------ ------- Accumulation Unit Value (beginning of period)...... $20.58 $15.94 $13.86 $10.83 $15.76 $13.96 $12.48 $10.91 Accumulation Unit Value (end of period)...... $25.89 $20.58 $15.94 $13.86 $18.99 $15.76 $13.96 $12.48 Number of Units Outstanding (in 000s) (end of period)...... 6,591 5,493 4,346 1,092 514 349 236 109 ROYCE ROYCE MICRO-CAP SMALL-CAP PORTFOLIO-- PORTFOLIO-- INVESTMENT CLASS INVESTMENT CLASS --------------------------- --------------------------- 2007 2006 2005(G) 2007 2006 2005(G) ------ ------ ------- ------ ------ ------- Accumulation Unit Value (beginning of period)...... $14.51 $12.16 $10.00 $12.72 $11.18 $10.00 Accumulation Unit Value (end of period)...... $14.88 $14.51 $12.16 $12.27 $12.72 $11.18 Number of Units Outstanding (in 000s) (end of period)...... 1,353 1,051 159 1,078 907 387
T. ROWE PRICE EQUITY INCOME PORTFOLIO II T. ROWE PRICE EQUITY INCOME PORTFOLIO ----------------------------------------------- -------------------------------------------------------- 2007 2006 2005 2004 2003(C) 2007 2006 2005 2004 2003 2002 ------ ------ ------ ------ ------- ------ ------ ------ ------ ------ ------ Accumulation Unit Value (beginning of period)...... $15.15 $12.94 $12.66 $11.20 $10.00 $16.69 $14.22 $13.88 $12.25 $ 9.90 $11.55 Accumulation Unit Value (end of period)...... $15.39 $15.15 $12.94 $12.66 $11.20 $16.99 $16.69 $14.22 $13.88 $12.25 $ 9.90 Number of Units Outstanding (in 000s) (end of period)...... 2,224 1,906 1,460 765 224 7,348 8,977 10,552 10,397 9,625 9,056 T. ROWE PRICE EQUITY INCOME PORTFOLIO ------------------------------------- 2001 2000 1999 1998(A) ------ ------ ------ ------- Accumulation Unit Value (beginning of period)...... $11.55 $10.36 $10.13 $10.00 Accumulation Unit Value (end of period)...... $11.55 $11.55 $10.36 $10.13 Number of Units Outstanding (in 000s) (end of period)...... 7,398 3,679 2,387 995
------- (a) For the period May 1, 1998 (commencement of operations in the Separate Account) through December 31, 1998. (c) For the period June 2, 2003 (commencement of operations in the Separate Account) through December 31, 2003. (f) For the period May 1, 2004 (commencement of operations in the Separate Account) through December 31, 2004. (g) For the period May 1, 2005 (commencement of operations in the Separate Account) through December 31, 2005. 35
VAN ECK WORLDWIDE HARD ASSETS ----------------------------------------------------------------------------------------------- 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998(A) ------ ------ ------ ------ ------ ----- ------ ------ ----- ------- Accumulation Unit Value (beginning of period)...... $28.55 $23.26 $15.55 $12.72 $ 8.89 $9.28 $10.51 $ 9.57 $8.02 $10.00 Accumulation Unit Value (end of period)...... $40.93 $28.55 $23.26 $15.55 $12.72 $8.89 $ 9.28 $10.51 $9.57 $ 8.02 Number of Units Outstanding (in 000s) (end of period)...... 3,524 3,296 2,840 1,271 805 714 378 469 216 53 VAN KAMPEN UIF EMERGING MARKETS EQUITY--CLASS II ----------------------------------------------- 2007 2006 2005 2004 2003(C) ------ ------ ------ ------ ------- Accumulation Unit Value (beginning of period)...... $29.67 $21.93 $16.63 $13.71 $10.00 Accumulation Unit Value (end of period)...... $41.09 $29.67 $21.93 $16.63 $13.71 Number of Units Outstanding (in 000s) (end of period)...... 691 526 304 134 31
VAN KAMPEN UIF EMERGING MARKETS EQUITY--CLASS I ---------------------------------------------------------------------------------------------- 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 ------ ------ ------ ------ ------ ----- ------ ------ ------ ----- Accumulation Unit Value (beginning of period)...... $22.66 $16.76 $12.70 $10.46 $7.09 $7.89 $ 8.55 $14.27 $ 7.40 $9.89 Accumulation Unit Value (end of period)...... $31.39 $22.66 $16.76 $12.70 $10.46 $7.09 $ 7.89 $ 8.55 $14.27 $7.40 Number of Units Outstanding (in 000s) (end of period)...... 2,910 3,407 3,378 3,076 3,161 3,213 3,172 3,358 1,659 841 VICTORY VIF DIVERSIFIED STOCK-- CLASS A SHARES ------------------------------------- 2007 2006 2005 2004(F) ------ ------ ------ ------- Accumulation Unit Value (beginning of period)...... $13.45 $12.00 $11.19 $10.00 Accumulation Unit Value (end of period)...... $14.59 $13.45 $12.00 $11.19 Number of Units Outstanding (in 000s) (end of period)...... 545 578 483 184
------- (a) For the period May 1, 1998 (commencement of operations in the Separate Account) through December 31, 1998. (c) For the period June 2, 2003 (commencement of operations in the Separate Account) through December 31, 2003. (f) For the period May 1, 2004 (commencement of operations in the Separate Account) through December 31, 2004. 36 SEPARATE ACCOUNTS-I AND II CONDENSED FINANCIAL INFORMATION The following Accumulation Unit values and the number of Accumulation Units outstanding for each Investment Division for each fiscal year ended December 31 presented below are derived from the financial statements audited by PricewaterhouseCoopers LLP, independent registered public accounting firm, included in the Statement of Additional Information. The Accumulation Unit values and the number of Accumulation Units outstanding for each Investment Division as of December 31, 2002 and for the years in the period then ended, where applicable, are derived from financial statements not included elsewhere herein. Values and units shown are for full year periods beginning January 1, except where indicated. The policies were first offered on January 29, 1993.
MAINSTAY VP BALANCED-- MAINSTAY VP SERVICE BOND-- CLASS INITIAL CLASS --------------------------- -------------------------------------------------------- 2007 2006 2005(F) 2007 2006 2005 2004 2003 2002 ------ ------ ------- ------ ------ ------ ------ ------ ------ SEPARATE ACCOUNT I Accumulation Unit value (beginning of period).... $11.41 $10.47 $10.00 $17.67 $17.12 $16.97 $16.52 $16.01 $14.81 Accumulation Unit value (end of period).... $11.55 $11.41 $10.47 $18.57 $17.67 $17.12 $16.97 $16.52 $16.01 Number of units outstanding (in 000s) (end of period).... 504 522 384 1,074 1,291 1,633 1,924 2,485 2,912 SEPARATE ACCOUNT II Accumulation Unit value (beginning of period).... $11.41 $10.47 $10.00 $17.67 $17.12 $16.97 $16.52 $16.01 $14.81 Accumulation Unit value (end of period).... $11.55 $11.41 $10.47 $18.57 $17.67 $17.12 $16.97 $16.52 $16.01 Number of units outstanding (in 000s) (end of period).... 636 659 529 1,230 1,391 1,679 1,915 2,337 2,623 MAINSTAY VP MAINSTAY VP BOND-- CAPITAL APPRECIATION-- INITIAL CLASS INITIAL CLASS ------------------------------------ --------------------------------------------------------- 2001 2000 1999 1998 2007 2006 2005 2004 2003 2002 ------ ------ ------ ------ ------ ------ ------ ------- ------ ------ SEPARATE ACCOUNT I Accumulation Unit value (beginning of period).... $13.73 $12.67 $13.04 $12.10 $23.56 $22.85 $21.36 $ 20.77 $16.57 $24.27 Accumulation Unit value (end of period).... $14.81 $13.73 $12.67 $13.04 $26.14 $23.56 $22.85 $ 21.36 $20.77 $16.57 Number of units outstanding (in 000s) (end of period).... 3,231 2,376 2,772 2,823 3,168 4,037 5,068 6,529 7,820 8,969 SEPARATE ACCOUNT II Accumulation Unit value (beginning of period).... $13.73 $12.67 $13.04 $12.10 $23.56 $22.85 $21.36 $ 20.77 $16.57 $24.27 Accumulation Unit value (end of period).... $14.81 $13.73 $12.67 $13.04 $26.14 $23.56 $22.85 $ 21.36 $20.77 $16.57 Number of units outstanding (in 000s) (end of period).... 2,506 1,954 2,296 2,190 4,474 5,408 6,632 8,178 9,184 9,904 MAINSTAY VP CAPITAL APPRECIATION-- INITIAL CLASS ------------------------------------ 2001 2000 1999 1998 ------ ------ ------ ------ SEPARATE ACCOUNT I Accumulation Unit value (beginning of period).... $32.02 $36.34 $29.35 $21.53 Accumulation Unit value (end of period).... $24.27 $32.02 $36.34 $29.35 Number of units outstanding (in 000s) (end of period).... 10,729 12,222 12,611 12,433 SEPARATE ACCOUNT II Accumulation Unit value (beginning of period).... $32.02 $36.34 $29.35 $21.53 Accumulation Unit value (end of period).... $24.27 $32.02 $36.34 $29.35 Number of units outstanding (in 000s) (end of period).... 11,296 12,184 12,137 11,469
MAINSTAY VP CASH MANAGEMENT ------------------------------------------------------------------------------------------------ 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ SEPARATE ACCOUNT I Accumulation Unit value (beginning of period).... $1.39 $1.35 $1.33 $1.34 $1.34 $1.34 $1.31 $1.25 $1.21 $1.16 Accumulation Unit value (end of period).... $1.44 $1.39 $1.35 $1.33 $1.34 $1.34 $1.34 $1.31 $1.25 $1.21 Number of units outstanding (in 000s) (end of period).... 12,112 10,856 11,934 14,156 20,884 34,967 39,115 30,612 46,932 34,013 SEPARATE ACCOUNT II Accumulation Unit value (beginning of period).... $1.39 $1.35 $1.33 $1.34 $1.34 $1.34 $1.31 $1.25 $1.21 $1.16 Accumulation Unit value (end of period).... $1.44 $1.39 $1.35 $1.33 $1.34 $1.34 $1.34 $1.31 $1.25 $1.21 Number of units outstanding (in 000s) (end of period).... 15,515 13,408 14,418 18,047 23,965 33,873 34,686 26,368 47,710 32,015 MAINSTAY VP COMMON STOCK-- INITIAL CLASS ------------------------------------------------------------------------------------------------ 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ SEPARATE ACCOUNT I Accumulation Unit value (beginning of period).... $31.41 $27.32 $25.70 $23.48 $18.82 $25.17 $30.76 $32.24 $25.13 $20.11 Accumulation Unit value (end of period).... $32.60 $31.41 $27.32 $25.70 $23.48 $18.82 $25.17 $30.76 $32.24 $25.13 Number of units outstanding (in 000s) (end of period).... 1,551 1,891 2,370 2,865 3,264 3,696 4,445 5,062 4,954 4,996 SEPARATE ACCOUNT II Accumulation Unit value (beginning of period).... $31.41 $27.32 $25.70 $23.48 $18.82 $25.17 $30.76 $32.24 $25.13 $20.11 Accumulation Unit value (end of period).... $32.60 $31.41 $27.32 $25.70 $23.48 $18.82 $25.17 $30.76 $32.24 $25.13 Number of units outstanding (in 000s) (end of period).... 2,135 2,492 2,965 3,497 3,816 4,073 4,605 4,847 4,618 4,300
MAINSTAY VP CONSERVATIVE MAINSTAY VP ALLOCATION-- CONVERTIBLE-- SERVICE CLASS INITIAL CLASS ----------------- -------------------------------------------------------- 2007 2006(G) 2007 2006 2005 2004 2003 2002 ------ ------- ------ ------ ------ ------ ------ ------ SEPARATE ACCOUNT I Accumulation Unit value (beginning of period).... $10.60 $10.00 $20.27 $18.60 $17.67 $16.87 $13.99 $15.39 Accumulation Unit value (end of period).... $11.22 $10.60 $22.98 $20.27 $18.60 $17.67 $16.87 $13.99 Number of units outstanding (in 000s) (end of period).... 578 274 632 785 961 1,191 1,293 1,118 SEPARATE ACCOUNT II Accumulation Unit value (beginning of period).... $10.57 $10.00 $20.22 $18.55 $17.63 $16.83 $13.95 $15.34 Accumulation Unit value (end of period).... $11.19 $10.57 $22.92 $20.22 $18.55 $17.63 $16.83 $13.95 Number of units outstanding (in 000s) (end of period).... 459 239 684 787 896 1,020 1,049 912 MAINSTAY VP MAINSTAY VP DEVELOPING CONVERTIBLE-- GROWTH-- INITIAL CLASS INITIAL CLASS ------------------------------------ ----------------------------------------------------- 2001 2000 1999 1998 2007 2006 2005 2004 2003 2002 ------ ------ ------ ------ ------ ------ ------ ----- ----- ----- SEPARATE ACCOUNT I Accumulation Unit value (beginning of period).... $15.93 $16.99 $12.13 $11.76 $11.80 $10.61 $ 9.59 $9.18 $6.72 $9.58 Accumulation Unit value (end of period).... $15.39 $15.93 $16.99 $12.13 $15.85 $11.80 $10.61 $9.59 $9.18 $6.72 Number of units outstanding (in 000s) (end of period).... 1,181 1,160 915 847 158 177 203 219 248 171 SEPARATE ACCOUNT II Accumulation Unit value (beginning of period).... $15.89 $16.95 $12.09 $11.73 $11.82 $10.63 $ 9.61 $9.20 $6.73 $9.60 Accumulation Unit value (end of period).... $15.34 $15.89 $16.95 $12.09 $15.88 $11.82 $10.63 $9.61 $9.20 $6.73 Number of units outstanding (in 000s) (end of period).... 931 891 624 610 234 248 252 284 302 225 MAINSTAY VP DEVELOPING GROWTH-- INITIAL CLASS ------------------------------------- 2001 2000 1999 1998(A) ------ ------ ------ ------- SEPARATE ACCOUNT I Accumulation Unit value (beginning of period).... $10.47 $13.11 $10.05 $10.00 Accumulation Unit value (end of period).... $ 9.58 $10.47 $13.11 $10.05 Number of units outstanding (in 000s) (end of period).... 222 266 198 87 SEPARATE ACCOUNT II Accumulation Unit value (beginning of period).... $10.50 $13.14 $10.07 $10.00 Accumulation Unit value (end of period).... $ 9.60 $10.50 $13.14 $10.07 Number of units outstanding (in 000s) (end of period).... 247 303 178 59
------- (a) For the period June 1, 1998 (commencement of operations in the Separate Account) through December 31, 1998. (f) For the period May 1, 2005 (commencement of operations in the Separate Account) through December 31, 2005. (g) For the period February 13, 2006 (commencement of operations in the Separate Account) through December 31, 2006. 37
MAINSTAY VP MAINSTAY VP FLOATING RATE-- GOVERNMENT-- SERVICE CLASS INITIAL CLASS --------------------------- ---------------------------------------------------------------------------- 2007 2006 2005(F) 2007 2006 2005 2004 2003 2002 2001 2000 ------ ------ ------- ------ ------ ------ ------ ------ ------ ------ ------ SEPARATE ACCOUNT I Accumulation Unit value (beginning of period).... $10.54 $10.10 $10.00 $17.86 $17.38 $17.20 $16.87 $16.77 $15.47 $14.69 $13.26 Accumulation Unit value (end of period).... $10.65 $10.54 $10.10 $18.80 $17.86 $17.38 $17.20 $16.87 $16.77 $15.47 $14.69 Number of units outstanding (in 000s) (end of period).... 764 790 285 1,022 1,249 1,569 1,963 2,819 4,144 3,307 2,677 SEPARATE ACCOUNT II Accumulation Unit value (beginning of period).... $10.54 $10.10 $10.00 $17.86 $17.38 $17.20 $16.87 $16.77 $15.47 $14.69 $13.26 Accumulation Unit value (end of period).... $10.65 $10.54 $10.10 $18.80 $17.86 $17.38 $17.20 $16.87 $16.77 $15.47 $14.69 Number of units outstanding (in 000s) (end of period).... 715 591 199 1,035 1,218 1,467 1,756 2,373 3,121 2,241 1,784 MAINSTAY VP MAINSTAY VP GROWTH MAINSTAY VP GOVERNMENT-- ALLOCATION-- HIGH YIELD CORPORATE BOND-- INITIAL CLASS SERVICE CLASS INITIAL CLASS ---------------- ----------------- ------------------------------------------------------------------ 1999 1998 2007 2006(G) 2007 2006 2005 2004 2003 2002 2001 ------ ------ ------ ------- ------ ------ ------ ------ ------ ------ ------ SEPARATE ACCOUNT I Accumulation Unit value (beginning of period).... $13.68 $12.71 $10.92 $10.00 $25.92 $23.44 $23.07 $20.73 $15.40 $15.29 $14.76 Accumulation Unit value (end of period).... $13.26 $13.68 $11.87 $10.92 $26.18 $25.92 $23.44 $23.07 $20.73 $15.40 $15.29 Number of units outstanding (in 000s) (end of period).... 5,186 3,288 370 190 3,670 4,543 5,729 6,804 7,248 6,783 7,999 SEPARATE ACCOUNT II Accumulation Unit value (beginning of period).... $13.68 $12.71 $11.01 $10.00 $25.89 $23.41 $23.04 $20.71 $15.38 $15.27 $14.75 Accumulation Unit value (end of period).... $13.26 $13.68 $11.97 $11.01 $26.15 $25.89 $23.41 $23.04 $20.71 $15.38 $15.27 Number of units outstanding (in 000s) (end of period).... 2,873 2,233 448 282 3,279 3,783 4,572 5,066 5,231 4,886 5,349 MAINSTAY VP HIGH YIELD CORPORATE BOND-- INITIAL CLASS --------------------------- 2000 1999 1998 ------ ------ ------- SEPARATE ACCOUNT I Accumulation Unit value (beginning of period).... $15.89 $14.26 $ 14.08 Accumulation Unit value (end of period).... $14.76 $15.89 $ 14.26 Number of units outstanding (in 000s) (end of period).... 8,588 9,761 10,373 SEPARATE ACCOUNT II Accumulation Unit value (beginning of period).... $15.88 $14.25 $ 14.06 Accumulation Unit value (end of period).... $14.75 $15.88 $ 14.25 Number of units outstanding (in 000s) (end of period).... 5,703 6,344 6,384
MAINSTAY VP ICAP SELECT EQUITY-- INITIAL CLASS ------------------------------------------------------------------------------------------------- 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998(a) ------ ------ ------ ------ ------ ------ ------ ------ ------ ------- SEPARATE ACCOUNT I Accumulation Unit value (beginning of period).... $14.13 $12.00 $11.53 $10.49 $ 8.30 $10.90 $11.57 $10.99 $10.44 $10.00 Accumulation Unit value (end of period).... $14.90 $14.13 $12.00 $11.53 $10.49 $ 8.30 $10.90 $11.57 $10.99 $10.44 Number of units outstanding (in 000s) (end of period).... 583 207 216 301 253 250 296 249 216 125 SEPARATE ACCOUNT II Accumulation Unit value (beginning of period).... $14.32 $12.16 $11.68 $10.63 $ 8.41 $11.05 $11.72 $11.14 $10.58 $10.00 Accumulation Unit value (end of period).... $15.10 $14.32 $12.16 $11.68 $10.63 $ 8.41 $11.05 $11.72 $11.14 $10.58 Number of units outstanding (in 000s) (end of period).... 746 353 354 382 343 320 317 268 216 91 MAINSTAY VP INTERNATIONAL EQUITY-- INITIAL CLASS ------------------------------------------------------------------------------------------------ 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ SEPARATE ACCOUNT I Accumulation Unit value (beginning of period).... $24.36 $18.79 $17.63 $15.22 $11.86 $12.57 $14.81 $18.31 $14.49 $11.92 Accumulation Unit value (end of period).... $25.23 $24.36 $18.79 $17.63 $15.22 $11.86 $12.57 $14.81 $18.31 $14.49 Number of units outstanding (in 000s) (end of period).... 743 800 792 728 607 577 619 660 692 716 SEPARATE ACCOUNT II Accumulation Unit value (beginning of period).... $24.37 $18.80 $17.64 $15.23 $11.87 $12.58 $14.82 $18.32 $14.50 $11.93 Accumulation Unit value (end of period).... $25.24 $24.37 $18.80 $17.64 $15.23 $11.87 $12.58 $14.82 $18.32 $14.50 Number of units outstanding (in 000s) (end of period).... 912 937 880 671 535 522 504 545 547 532
MAINSTAY VP LARGE CAP GROWTH-- INITIAL CLASS ------------------------------------------------------------------------------------------------- 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998(A) ------ ------ ------ ------ ------ ------ ------ ------ ------ ------- SEPARATE ACCOUNT I Accumulation Unit value (beginning of period).... $13.36 $12.62 $12.25 $12.71 $10.05 $14.18 $17.22 $19.38 $11.86 $10.00 Accumulation Unit value (end of period).... $16.00 $13.36 $12.62 $12.25 $12.71 $10.05 $14.18 $17.22 $19.38 $11.86 Number of units outstanding (in 000s) (end of period).... 283 368 400 526 668 713 921 1,810 317 64 SEPARATE ACCOUNT II Accumulation Unit value (beginning of period).... $13.47 $12.73 $12.36 $12.82 $10.14 $14.31 $17.37 $19.55 $11.97 $10.00 Accumulation Unit value (end of period).... $16.14 $13.47 $12.73 $12.36 $12.82 $10.14 $14.31 $17.37 $19.55 $11.97 Number of units outstanding (in 000s) (end of period).... 478 534 568 732 811 815 983 1,211 337 101 MAINSTAY VP MID CAP CORE-- INITIAL CLASS ------------------------------------------------------------------ 2007 2006 2005 2004 2003 2002 2001(B) ------ ------ ------ ------ ------ ----- ------- SEPARATE ACCOUNT I Accumulation Unit value (beginning of period).... $17.08 $15.06 $13.16 $10.91 $ 8.16 $9.49 $10.00 Accumulation Unit value (end of period).... $17.71 $17.08 $15.06 $13.16 $10.91 $8.16 $ 9.49 Number of units outstanding (in 000s) (end of period).... 411 484 577 438 262 153 41 SEPARATE ACCOUNT II Accumulation Unit value (beginning of period).... $17.11 $15.08 $13.19 $10.93 $ 8.17 $9.51 $10.00 Accumulation Unit value (end of period).... $17.74 $17.11 $15.08 $13.19 $10.93 $8.17 $ 9.51 Number of units outstanding (in 000s) (end of period).... 590 631 628 427 257 169 24 MAINSTAY VP MID CAP GROWTH-- INITIAL CLASS ----------------------------------------------------------------- 2007 2006 2005 2004 2003 2002 2001(B) ------ ------ ------ ------ ----- ----- ------- SEPARATE ACCOUNT I Accumulation Unit value (beginning of period).... $14.59 $13.53 $11.70 $ 9.67 $6.77 $9.60 $10.00 Accumulation Unit value (end of period).... $16.67 $14.59 $13.53 $11.70 $9.67 $6.77 $ 9.60 Number of units outstanding (in 000s) (end of period).... 619 815 942 806 609 101 29 SEPARATE ACCOUNT II Accumulation Unit value (beginning of period).... $14.86 $13.78 $11.92 $ 9.85 $6.89 $9.78 $10.00 Accumulation Unit value (end of period).... $16.98 $14.86 $13.78 $11.92 $9.85 $6.89 $ 9.78 Number of units outstanding (in 000s) (end of period).... 844 999 1,047 803 500 92 39 MAINSTAY VP MID CAP VALUE-- INITIAL CLASS ------------------------------------------------------------------ 2007 2006 2005 2004 2003 2002 2001(B) ------ ------ ------ ------ ------ ----- ------- SEPARATE ACCOUNT I Accumulation Unit value (beginning of period).... $14.54 $12.92 $12.38 $10.67 $ 8.38 $9.94 $10.00 Accumulation Unit value (end of period).... $14.19 $14.54 $12.92 $12.38 $10.67 $8.38 $ 9.94 Number of units outstanding (in 000s) (end of period).... 787 964 1,190 1,032 704 607 258 SEPARATE ACCOUNT II Accumulation Unit value (beginning of period).... $14.33 $12.73 $12.20 $10.52 $ 8.26 $9.80 $10.00 Accumulation Unit value (end of period).... $13.98 $14.33 $12.73 $12.20 $10.52 $8.26 $ 9.80 Number of units outstanding (in 000s) (end of period).... 1,053 1,217 1,374 1,094 773 643 161
------- (a) For the period June 1, 1998 (commencement of operations in the Separate Account) through December 31, 1998. (b) For the period July 6, 2001 (commencement of operations in the Separate Account) through December 31, 2001. (f) For the period May 1, 2005 (commencement of operations in the Separate Account) through December 31, 2005. (g) For the period February 13, 2006 (commencement of operations in the Separate Account) through December 31, 2006. 38
MAINSTAY VP MAINSTAY VP MODERATE MODERATE GROWTH MAINSTAY VP ALLOCATION-- ALLOCATION-- S&P 500-- SERVICE CLASS SERVICE CLASS INITIAL CLASS ----------------- ----------------- ------------------------------------------------------------------ 2007 2006(G) 2007 2006(G) 2007 2006 2005 2004 2003 2002 2001 ------ ------- ------ ------- ------ ------ ------ ------ ------ ------ ------ SEPARATE ACCOUNT I Accumulation Unit value (beginning of period).... $10.72 $10.00 $10.88 $10.00 $33.45 $29.36 $28.39 $26.03 $20.57 $26.79 $30.88 Accumulation Unit value (end of period).... $11.48 $10.72 $11.72 $10.88 $34.75 $33.45 $29.36 $28.39 $26.03 $20.57 $26.79 Number of units outstanding (in 000s) (end of period).... 596 318 735 394 2,726 3,363 4,183 5,051 5,621 6,211 7,423 SEPARATE ACCOUNT II Accumulation Unit value (beginning of period).... $10.79 $10.00 $11.04 $10.00 $33.45 $29.36 $28.39 $26.03 $20.57 $26.79 $30.88 Accumulation Unit value (end of period).... $11.56 $10.79 $11.89 $11.04 $34.75 $33.45 $29.36 $28.39 $26.03 $20.57 $26.79 Number of units outstanding (in 000s) (end of period).... 1,055 566 1,065 723 3,820 4,553 5,363 6,123 6,574 6,945 7,823 MAINSTAY VP MAINSTAY VP MAINSTAY VP S&P 500-- SMALL CAP GROWTH-- TOTAL RETURN-- INITIAL CLASS INITIAL CLASS INITIAL CLASS -------------------------- ----------------------------------------------------------------- ---------------- 2000 1999 1998 2007 2006 2005 2004 2003 2002 2001(B) 2007 2006 ------ ------ ------ ------ ------ ------ ------ ----- ----- ------- ------ ------ SEPARATE ACCOUNT I Accumulation Unit value (beginning of period).... $34.50 $28.96 $22.83 $11.18 $10.65 $10.37 $ 9.60 $6.87 $9.45 $10.00 $24.57 $22.74 Accumulation Unit value (end of period).... $30.88 $34.50 $28.96 $10.68 $11.18 $10.65 $10.37 $9.60 $6.87 $ 9.45 $26.08 $24.57 Number of units outstanding (in 000s) (end of period).... 8,368 8,592 8,414 315 432 500 557 541 201 77 2,532 3,104 SEPARATE ACCOUNT II Accumulation Unit value (beginning of period).... $34.50 $28.96 $22.83 $11.37 $10.83 $10.55 $ 9.77 $6.98 $9.61 $10.00 $24.57 $22.74 Accumulation Unit value (end of period).... $30.88 $34.50 $28.96 $10.86 $11.37 $10.83 $10.55 $9.77 $6.98 $ 9.61 $26.08 $24.57 Number of units outstanding (in 000s) (end of period).... 8,360 8,375 7,539 411 541 619 610 489 203 96 2,895 3,445 MAINSTAY VP TOTAL RETURN-- INITIAL CLASS ---------------------------------------------------------------------------- 2005 2004 2003 2002 2001 2000 1999 1998 ------ ------ ------ ------ ------ ------ ------ ------ SEPARATE ACCOUNT I Accumulation Unit value (beginning of period).... $21.63 $20.60 $17.44 $21.17 $24.02 $25.44 $22.03 $17.55 Accumulation Unit value (end of period).... $22.74 $21.63 $20.60 $17.44 $21.17 $24.02 $25.44 $22.03 Number of units outstanding (in 000s) (end of period).... 3,755 4,717 5,524 6,305 7,727 8,998 9,703 9,895 SEPARATE ACCOUNT II Accumulation Unit value (beginning of period).... $21.63 $20.60 $17.44 $21.17 $24.02 $25.44 $22.03 $17.55 Accumulation Unit value (end of period).... $22.74 $21.63 $20.60 $17.44 $21.17 $24.02 $25.44 $22.03 Number of units outstanding (in 000s) (end of period).... 4,280 5,209 5,915 6,454 7,442 8,146 8,546 8,406
MAINSTAY VP VALUE-- INITIAL CLASS ------------------------------------------------------------------------------------------------ 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ SEPARATE ACCOUNT I Accumulation Unit value (beginning of period).... $25.21 $21.49 $20.49 $18.65 $14.84 $19.04 $19.21 $17.24 $16.05 $16.96 Accumulation Unit value (end of period).... $25.43 $25.21 $21.49 $20.49 $18.65 $14.84 $19.04 $19.21 $17.24 $16.05 Number of units outstanding (in 000s) (end of period).... 1,436 1,765 2,116 2,500 2,796 3,086 3,557 3,643 4,158 4,718 SEPARATE ACCOUNT II Accumulation Unit value (beginning of period).... $25.28 $21.55 $20.55 $18.71 $14.88 $19.09 $19.27 $17.29 $16.10 $17.01 Accumulation Unit value (end of period).... $25.50 $25.28 $21.55 $20.55 $18.71 $14.88 $19.09 $19.27 $17.29 $16.10 Number of units outstanding (in 000s) (end of period).... 1,847 2,172 2,533 2,825 3,007 3,149 3,430 3,324 3,758 3,949 ALGER AMERICAN SMALLCAP GROWTH-- CLASS O SHARES ---------------------------------------------------------------------------------------------- 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 ------ ------ ------ ----- ----- ------ ------ ------ ------ ------ SEPARATE ACCOUNT I Accumulation Unit value (beginning of period).... $13.66 $11.53 $9.99 $8.68 $6.18 $ 8.49 $12.20 $16.98 $11.99 $10.52 Accumulation Unit value (end of period).... $15.81 $13.66 $11.53 $9.99 $8.68 $ 6.18 $ 8.49 $12.20 $16.98 $11.99 Number of units outstanding (in 000s) (end of period).... 635 781 880 990 1,127 1,254 1,417 1,648 1,154 999 SEPARATE ACCOUNT II Accumulation Unit value (beginning of period).... $13.66 $11.53 $9.99 $8.68 $6.18 $ 8.49 $12.20 $16.97 $11.99 $10.51 Accumulation Unit value (end of period).... $15.80 $13.66 $11.53 $9.99 $8.68 $ 6.18 $ 8.49 $12.20 $16.97 $11.99 Number of units outstanding (in 000s) (end of period).... 956 1,132 1,207 1,223 1,237 1,245 1,352 1,451 926 787
COLUMBIA SMALL CAP CVS CALVERT VALUE FUND, SOCIAL VARIABLE BALANCED SERIES-- PORTFOLIO CLASS B ------------------------------------------------------------------------------------------------ ---------------- 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 2007 2006 ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ SEPARATE ACCOUNT I Accumulation Unit value (beginning of period).... $20.82 $19.40 $18.60 $17.40 $14.78 $17.04 $18.55 $19.40 $17.51 $15.26 $12.97 $11.01 Accumulation Unit value (end of period).... $21.12 $20.82 $19.40 $18.60 $17.40 $14.78 $17.04 $18.55 $19.40 $17.51 $12.47 $12.97 Number of units outstanding (in 000s) (end of period).... 87 108 134 172 195 179 205 226 230 201 138 169 SEPARATE ACCOUNT II Accumulation Unit value (beginning of period).... $20.85 $19.42 $18.62 $17.42 $14.79 $17.06 $18.57 $19.42 $17.53 $15.28 $12.97 $11.01 Accumulation Unit value (end of period).... $21.15 $20.85 $19.42 $18.62 $17.42 $14.79 $17.06 $18.57 $19.42 $17.53 $12.47 $12.97 Number of units outstanding (in 000s) (end of period).... 214 253 274 300 303 306 317 308 296 223 178 199 COLUMBIA SMALL CAP DREYFUS IP VALUE FUND, TECHNOLOGY VARIABLE SERIES-- GROWTH-- CLASS B INITIAL CLASS ----------------- --------------------------------------------------------------- 2005 2004(D) 2007 2006 2005 2004 2003 2002 2001(B) ------ ------- ------ ----- ----- ----- ----- ------ ------- SEPARATE ACCOUNT I Accumulation Unit value (beginning of period).... $10.57 $10.00 $ 9.37 $9.10 $8.88 $8.95 $6.01 $10.05 $10.00 Accumulation Unit value (end of period).... $11.01 $10.57 $10.61 $9.37 $9.10 $8.88 $8.95 $ 6.01 $10.05 Number of units outstanding (in 000s) (end of period).... 102 13 108 109 141 192 216 99 26 SEPARATE ACCOUNT II Accumulation Unit value (beginning of period).... $10.57 $10.00 $ 9.09 $8.83 $8.62 $8.69 $5.83 $ 9.75 $10.00 Accumulation Unit value (end of period).... $11.01 $10.57 $10.29 $9.09 $8.83 $8.62 $8.69 $ 5.83 $ 9.75 Number of units outstanding (in 000s) (end of period).... 148 2 223 245 238 287 297 151 66
------- (b) For the period July 6, 2001 (commencement of operations in the Separate Account) through December 31, 2001. (d) For the period November 15, 2004 (commencement of operations in the Separate Account) through December 31, 2004. (g) For the period February 13, 2006 (commencement of operations in the Separate Account) through December 31, 2006. 39
FIDELITY(R) VIP CONTRAFUND(R)-- INITIAL CLASS ------------------------------------------------------------------------------------------------ 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ SEPARATE ACCOUNT I Accumulation Unit value (beginning of period).... $26.82 $24.33 $21.07 $18.49 $14.58 $16.29 $18.81 $20.41 $16.64 $12.97 Accumulation Unit value (end of period).... $31.14 $26.82 $24.33 $21.07 $18.49 $14.58 $16.29 $18.81 $20.41 $16.64 Number of units outstanding (in 000s) (end of period).... 1,758 2,074 2,341 2,497 2,584 2,741 3,054 3,332 3,195 2,796 SEPARATE ACCOUNT II Accumulation Unit value (beginning of period).... $26.31 $23.86 $20.67 $18.13 $14.30 $15.98 $18.45 $20.02 $16.32 $12.72 Accumulation Unit value (end of period).... $30.54 $26.31 $23.86 $20.67 $18.13 $14.30 $15.98 $18.45 $20.02 $16.32 Number of units outstanding (in 000s) (end of period).... 2,842 3,259 3,556 3,549 3,592 3,685 3,891 4,048 3,657 2,785 FIDELITY(R) VIP EQUITY-INCOME-- INITIAL CLASS ------------------------------------------------------------------------------------------------ 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ SEPARATE ACCOUNT I Accumulation Unit value (beginning of period).... $22.30 $18.80 $17.99 $16.34 $12.70 $15.49 $16.52 $15.43 $14.70 $13.34 Accumulation Unit value (end of period).... $22.35 $22.30 $18.80 $17.99 $16.34 $12.70 $15.49 $16.52 $15.43 $14.70 Number of units outstanding (in 000s) (end of period).... 1,018 1,207 1,382 1,509 1,556 1,708 1,938 2,060 2,033 1,895 SEPARATE ACCOUNT II Accumulation Unit value (beginning of period).... $22.14 $18.66 $17.86 $16.22 $12.61 $15.38 $16.39 $15.32 $14.59 $13.25 Accumulation Unit value (end of period).... $22.19 $22.14 $18.66 $17.86 $16.22 $12.61 $15.38 $16.39 $15.32 $14.59 Number of units outstanding (in 000s) (end of period).... 1,365 1,526 1,698 1,735 1,716 1,721 1,831 1,813 1,847 1,653 FIDELITY VIP MID CAP-- SERVICE CLASS 2 ----------------------------------------------- 2007 2006 2005 2004 2003(C) ------ ------ ------ ------ ------- SEPARATE ACCOUNT I Accumulation Unit value (beginning of period).... $17.87 $16.11 $13.83 $11.24 $10.00 Accumulation Unit value (end of period).... $20.35 $17.87 $16.11 $13.83 $11.24 Number of units outstanding (in 000s) (end of period).... 441 499 501 309 38 SEPARATE ACCOUNT II Accumulation Unit value (beginning of period).... $18.18 $16.39 $14.07 $11.43 $10.00 Accumulation Unit value (end of period).... $20.70 $18.18 $16.39 $14.07 $11.43 Number of units outstanding (in 000s) (end of period).... 740 811 702 361 30
JANUS ASPEN SERIES BALANCED-- INSTITUTIONAL SHARES ------------------------------------------------------------------------------------------------ 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ SEPARATE ACCOUNT I Accumulation Unit value (beginning of period).... $23.85 $21.83 $20.48 $19.12 $16.99 $18.39 $19.55 $20.26 $16.19 $12.22 Accumulation Unit value (end of period).... $26.03 $23.85 $21.83 $20.48 $19.12 $16.99 $18.39 $19.55 $20.26 $16.19 Number of units outstanding (in 000s) (end of period).... 1,310 1,582 1,937 2,400 2,834 3,367 3,828 4,183 3,300 1,813 SEPARATE ACCOUNT II Accumulation Unit value (beginning of period).... $23.92 $21.89 $20.54 $19.17 $17.03 $18.44 $19.60 $20.32 $16.24 $12.25 Accumulation Unit value (end of period).... $26.10 $23.92 $21.89 $20.54 $19.17 $17.03 $18.44 $19.60 $20.32 $16.24 Number of units outstanding (in 000s) (end of period).... 2,342 2,742 3,136 3,625 4,035 4,269 4,437 4,357 3,387 1,641 JANUS ASPEN SERIES WORLDWIDE GROWTH-- INSTITUTIONAL SHARES ------------------------------------------------------------------------------------------------ 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ SEPARATE ACCOUNT I Accumulation Unit value (beginning of period).... $18.67 $16.00 $15.31 $14.80 $12.10 $16.45 $21.49 $25.81 $15.90 $12.50 Accumulation Unit value (end of period).... $20.20 $18.67 $16.00 $15.31 $14.80 $12.10 $16.45 $21.49 $25.81 $15.90 Number of units outstanding (in 000s) (end of period).... 1,301 1,550 2,010 2,646 3,265 3,867 4,559 5,233 4,073 3,491 SEPARATE ACCOUNT II Accumulation Unit value (beginning of period).... $18.71 $16.03 $15.34 $14.83 $12.12 $16.48 $21.53 $25.86 $15.93 $12.52 Accumulation Unit value (end of period).... $20.24 $18.71 $16.03 $15.34 $14.83 $12.12 $16.48 $21.53 $25.86 $15.93 Number of units outstanding (in 000s) (end of period).... 1,986 2,371 2,835 3,485 3,957 4,424 4,992 5,465 4,171 3,276
MFS(R) INVESTORS MFS(R) TRUST RESEARCH SERIES-- SERIES-- INITIAL CLASS INITIAL CLASS ---------------------------------------------------------------------------------------------- ---------------- 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998(A) 2007 2006 ------ ------ ------ ----- ----- ----- ------ ------ ------ ------- ------ ------ SEPARATE ACCOUNT I Accumulation Unit value (beginning of period).... $10.98 $ 9.84 $ 9.29 $8.45 $7.01 $8.99 $10.83 $10.99 $10.44 $10.00 $11.79 $10.81 Accumulation Unit value (end of period).... $11.95 $10.98 $ 9.84 $9.29 $8.45 $7.01 $ 8.99 $10.83 $10.99 $10.44 $13.17 $11.79 Number of units outstanding (in 000s) (end of period).... 92 111 135 155 175 193 240 252 217 107 118 143 SEPARATE ACCOUNT II Accumulation Unit value (beginning of period).... $11.28 $10.12 $ 9.55 $8.69 $7.21 $9.24 $11.13 $11.30 $10.73 $10.00 $11.64 $10.67 Accumulation Unit value (end of period).... $12.28 $11.28 $10.12 $9.55 $8.69 $7.21 $ 9.24 $11.13 $11.30 $10.73 $13.01 $11.64 Number of units outstanding (in 000s) (end of period).... 128 163 194 207 219 229 239 240 212 74 181 210 MFS(R) MFS(R) RESEARCH UTILITIES SERIES-- SERIES-- INITIAL CLASS SERVICE CLASS --------------------------------------------------------------------------- ------------------------------------- 2005 2004 2003 2002 2001 2000 1999 1998(A) 2007 2006 2005 2004(E) ------ ------ ----- ----- ------ ------ ------ ------- ------ ------ ------ ------- SEPARATE ACCOUNT I Accumulation Unit value (beginning of period).... $10.16 $ 8.89 $7.22 $9.69 $12.47 $13.27 $10.84 $10.00 $18.69 $14.46 $12.57 $10.00 Accumulation Unit value (end of period).... $10.81 $10.16 $8.89 $7.22 $ 9.69 $12.47 $13.27 $10.84 $23.53 $18.69 $14.46 $12.57 Number of units outstanding (in 000s) (end of period).... 175 197 212 240 317 320 164 82 959 752 653 143 SEPARATE ACCOUNT II Accumulation Unit value (beginning of period).... $10.03 $ 8.77 $7.13 $9.57 $12.31 $13.10 $10.70 $10.00 $19.19 $14.85 $12.90 $10.00 Accumulation Unit value (end of period).... $10.67 $10.03 $8.77 $7.13 $ 9.57 $12.31 $13.10 $10.70 $24.16 $19.19 $14.85 $12.90 Number of units outstanding (in 000s) (end of period).... 277 291 289 306 349 316 166 70 1,323 1,089 895 166 ROYCE ROYCE NEUBERGER MICRO-CAP SMALL-CAP BERMAN PORTFOLIO-- PORTFOLIO-- AMT MIDCAP INVESTMENT INVESTMENT GROWTH PORTFOLIO--CLASS S CLASS CLASS ------------------------------------- --------------------------- --------------------------- 2007 2006 2005 2004(e) 2007 2006 2005(f) 2007 2006 2005(f) ------ ------ ------ ------- ------ ------ ------- ------ ------ ------- SEPARATE ACCOUNT I Accumulation Unit value (beginning of period).... $14.88 $13.17 $11.76 $10.00 $14.35 $12.01 $10.00 $12.07 $10.59 $10.00 Accumulation Unit value (end of period).... $17.95 $14.88 $13.17 $11.76 $14.73 $14.35 $12.01 $11.66 $12.07 $10.59 Number of units outstanding (in 000s) (end of period).... 68 41 40 18 164 122 26 118 117 50 SEPARATE ACCOUNT II Accumulation Unit value (beginning of period).... $14.19 $12.56 $11.22 $10.00 $14.38 $12.04 $10.00 $12.82 $11.24 $10.00 Accumulation Unit value (end of period).... $17.11 $14.19 $12.56 $11.22 $14.76 $14.38 $12.04 $12.38 $12.82 $11.24 Number of units outstanding (in 000s) (end of period).... 72 60 46 22 189 169 26 142 133 61
------- (a) For the period June 1, 1998 (commencement of operations in the Separate Account) through December 31, 1998. (c) For the period September 5, 2003 (commencement of operations in the Separate Account) through December 31, 2003. (e) For the period May 1, 2004 (commencement of operations in the Separate Account) through December 31, 2004. (f) For the period May 1, 2005 (commencement of operations in the Separate Account) through December 31, 2005. 40
T. ROWE PRICE EQUITY INCOME PORTFOLIO I ------------------------------------------------------------------------------------------------- 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998(a) ------ ------ ------ ------ ------ ------ ------ ------ ------ ------- SEPARATE ACCOUNT I Accumulation Unit value (beginning of period).... $16.83 $14.33 $13.97 $12.32 $ 9.94 $11.59 $11.58 $10.37 $10.13 $10.00 Accumulation Unit value (end of period).... $17.16 $16.83 $14.33 $13.97 $12.32 $ 9.94 $11.59 $11.58 $10.37 $10.13 Number of units outstanding (in 000s) (end of period).... 917 1,062 1,186 1,143 1,007 982 950 590 394 192 SEPARATE ACCOUNT II Accumulation Unit value (beginning of period).... $16.96 $14.44 $14.08 $12.41 $10.02 $11.68 $11.67 $10.45 $10.21 $10.00 Accumulation Unit value (end of period).... $17.29 $16.96 $14.44 $14.08 $12.41 $10.02 $11.68 $11.67 $10.45 $10.21 Number of units outstanding (in 000s) (end of period).... 1,385 1,502 1,557 1,355 1,014 853 815 480 387 168 VAN ECK WORLDWIDE HARD ASSETS ----------------------------------------------------------------------------------------------- 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998(a) ------ ------ ------ ------ ------ ----- ------ ------ ----- ------- SEPARATE ACCOUNT I Accumulation Unit value (beginning of period).... $27.68 $22.53 $15.05 $12.30 $ 8.59 $8.95 $10.13 $ 9.21 $7.71 $10.00 Accumulation Unit value (end of period).... $39.72 $27.68 $22.53 $15.05 $12.30 $8.59 $ 8.95 $10.13 $9.21 $ 7.71 Number of units outstanding (in 000s) (end of period).... 475 455 354 159 105 113 50 50 58 32 SEPARATE ACCOUNT II Accumulation Unit value (beginning of period).... $28.12 $22.88 $15.28 $12.49 $ 8.72 $9.09 $10.29 $ 9.36 $7.83 $10.00 Accumulation Unit value (end of period).... $40.34 $28.12 $22.88 $15.28 $12.49 $8.72 $ 9.09 $10.29 $9.36 $ 7.83 Number of units outstanding (in 000s) (end of period).... 597 589 483 212 124 132 52 45 38 7
VAN KAMPEN UIF EMERGING MARKETS EQUITY-- CLASS I --------------------------------------------------------------------------------------------- 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 ------ ------ ------ ------ ------ ----- ----- ------ ------ ----- SEPARATE ACCOUNT I Accumulation Unit value (beginning of period).... $22.72 $16.79 $12.70 $10.45 $ 7.08 $7.87 $8.53 $14.21 $ 7.36 $9.83 Accumulation Unit value (end of period).... $31.50 $22.72 $16.79 $12.70 $10.45 $7.08 $7.87 $ 8.53 $14.21 $7.36 Number of units outstanding (in 000s) (end of period).... 551 565 547 472 564 558 611 699 578 515 SEPARATE ACCOUNT II Accumulation Unit value (beginning of period).... $22.90 $16.91 $12.80 $10.53 $ 7.13 $7.93 $8.59 $14.32 $ 7.41 $9.90 Accumulation Unit value (end of period).... $31.74 $22.90 $16.91 $12.80 $10.53 $7.13 $7.93 $ 8.59 $14.32 $7.41 Number of units outstanding (in 000s) (end of period).... 716 756 709 651 642 676 694 732 510 420 VICTORY VIF DIVERSIFIED STOCK-- CLASS A SHARES ------------------------------------- 2007 2006 2005 2004(E) ------ ------ ------ ------- SEPARATE ACCOUNT I Accumulation Unit value (beginning of period).... $12.98 $11.57 $10.78 $10.00 Accumulation Unit value (end of period).... $14.09 $12.98 $11.57 $10.78 Number of units outstanding (in 000s) (end of period).... 87 91 64 22 SEPARATE ACCOUNT II Accumulation Unit value (beginning of period).... $13.34 $11.89 $11.07 $10.00 Accumulation Unit value (end of period).... $14.48 $13.34 $11.89 $11.07 Number of units outstanding (in 000s) (end of period).... 110 108 104 24
------- (a) For the period June 1, 1998 (commencement of operations in the Separate Account) through December 31, 1998. (e) For the period May 1, 2004 (commencement of operations in the Separate Account) through December 31, 2004. 41 NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION AND THE SEPARATE ACCOUNT NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION New York Life Insurance and Annuity Corporation ("NYLIAC") is a stock life insurance company incorporated in Delaware in 1980. NYLIAC is licensed to sell life, accident and health insurance and annuities in the District of Columbia and all states. In addition to the policies We describe in this Prospectus, NYLIAC offers life insurance policies and other annuities. NYLIAC is a wholly-owned subsidiary of New York Life Insurance Company, a mutual life insurance company doing business in New York since 1845. NYLIAC held assets of 82.4 billion at the end of 2007. New York Life Insurance Company has invested in NYLIAC, and will occasionally make additional contributions to NYLIAC in order to maintain capital and surplus in accordance with state requirements. THE SEPARATE ACCOUNTS Separate Accounts-I and II were established on October 5, 1992; Separate Account-III was established on November 30, 1994, pursuant to resolutions of the NYLIAC Board of Directors. Each Separate Account is registered as a unit investment trust with the Securities and Exchange Commission under the Investment Company Act of 1940. The Securities and Exchange Commission, however, does not supervise the management, or the investment practices or policies, of the Separate Accounts. Although the assets of each Separate Account belong to NYLIAC, these assets are held separately from Our other assets. The Separate Account assets are not chargeable with liabilities incurred in any of NYLIAC's other business operations (except to the extent that assets in the Separate Account exceed the reserves and other liabilities of that Separate Account). The income, capital gains and capital losses incurred on the assets of the Separate Account are credited to or charged against the assets of the Separate Account, without regard to the income, capital gains or capital losses arising out of any other business NYLIAC may conduct. Therefore, the investment performance of the Separate Account is entirely independent on both the investment performance of the Fixed Account and any other separate account of NYLIAC. Separate Accounts-I and II currently have 43 Investment Divisions which are available under the policy; Separate Account-III currently has 73 Investment Divisions, 42 of which are available to all policyholders. Premium payments allocated to the Investment Divisions are invested solely in the corresponding Eligible Portfolios of the relevant Fund. THE PORTFOLIOS The assets of each Eligible Portfolio are separate from the others and each such Portfolio has different investment objectives and policies. As a result, each Eligible Portfolio operates as a separate investment fund and the investment performance of one Portfolio has no effect on the investment performance of any other Portfolio. You can make or lose money in any of the Investment Divisions. Portfolios described in this Prospectus are different from portfolios that may have similar names but are available directly to the general public. The funds available directly to the general public may have the same adviser, same name, same investment objectives and policies, and substantially similar portfolio securities, but the investment performance may not be the same. WE OFFER NO ASSURANCE THAT ANY OF THE ELIGIBLE PORTFOLIOS WILL ATTAIN THEIR RESPECTIVE STATED OBJECTIVES The Funds also make their shares available to certain other separate accounts funding variable life insurance policies offered by NYLIAC. This is called "mixed funding." Except for the MainStay VP Series Fund, Inc. all other Funds also make their shares available to separate accounts of insurance companies unaffiliated with NYLIAC. This is called "shared funding." Although We do not anticipate any inherent difficulties arising from mixed and shared funding, it is theoretically possible that, due to differences in tax treatment or other considerations, the interests of owners of various policies participating in a certain Fund might at some time be in conflict. The Board of Directors/Trustees of each Fund, each Fund's investment advisers, and NYLIAC are required to monitor events to identify any material conflicts that arise from the use of the Funds for mixed and shared funding. For more information about the risks of mixed and shared funding, please refer to the relevant Fund prospectus. The Funds and Eligible Portfolios offered through this product are selected by NYLIAC based on several criteria, including asset class coverage, the strength of the manager's reputation and tenure, brand recognition, performance, and the capability and qualification of each sponsoring investment firm. An affiliate of NYLIAC 42 manages the MainStay VP Series Fund, Inc. and that was a factor in its selection. Another factor that NYLIAC considers during the selection process is whether the Fund or Eligible Portfolio or an affiliate of the Fund will compensate NYLIAC for providing administrative, marketing, and support services that would otherwise be provided by the Fund, the Fund's investment adviser, or its distributor. We receive payments or compensation from the Funds or their investment advisers, or from other service providers of the Funds (who may be affiliates of NYLIAC) in connection with administration, distribution and other services We provide with respect to the Eligible Portfolios and their availability through the policies. These payments may be derived, in whole or in part, from the advisory fee charged by the Fund and deducted from Fund assets and/or from "Rule 12b-1" fees charged by the Fund and deducted from Fund assets. NYLIAC may use these payments for any corporate purpose, including payment of expenses that NYLIAC and/or its affiliates incur in promoting, marketing, and administering the policies, and in its role as an intermediary of the Funds. Policyowners, through their indirect investment in the Funds, bear the costs of these advisory and 12b-1 fees. The amounts We receive may be substantial, may vary by Eligible Portfolio, and may depend on how much policy value is invested in the particular Eligible Portfolio or Fund. NYLIAC and its affiliates may profit from these payments. Currently, We receive payments or revenue under various arrangements in amounts ranging from 0.05% to 0.35% annually of the aggregate net asset value of the shares of some of the Eligible Portfolios held by the Investment Divisions. We also receive compensation under various distribution services arrangements in amounts ranging from 0.05% to 0.25% annually of the aggregate net asset value of the shares of some of the Eligible Portfolios held by the Investment Divisions. The compensation that your Registered Representative receives remains the same regardless of which Investment Divisions you choose or the particular arrangements applicable to those Investment Divisions. The Eligible Portfolios of the relevant Funds, along with their investment advisers, are listed in the following table:
-------------------------------------------------------------------------------------- FUND INVESTMENT ADVISERS ELIGIBLE PORTFOLIOS MainStay VP Series New York Life MainStay VP Balanced; Fund, Inc. Investment MainStay VP Bond; Management LLC MainStay VP Common Stock; MainStay VP Conservative Allocation; MainStay VP Floating Rate; MainStay VP Growth Allocation; MainStay VP Mid Cap Core; MainStay VP Moderate Allocation; MainStay VP Moderate Growth Allocation; MainStay VP S&P 500 Index; Subadviser: MacKay MainStay VP Capital Appreciation; Shields LLC MainStay VP Cash Management; ("MacKay") MainStay VP Convertible; MainStay VP Government; MainStay VP High Yield Corporate Bond; MainStay VP International Equity; MainStay VP Mid Cap Growth; MainStay VP Mid Cap Value; MainStay VP Small Cap Growth; MainStay VP Total Return; MainStay VP Value* Subadviser: MainStay VP ICAP Select Equity Institutional Capital LLC Subadviser: Winslow MainStay VP Large Cap Growth Capital Management, Inc. Subadviser: Lord MainStay VP Developing Growth Abbett & Company LLC The Alger American Fred Alger Alger American SmallCap Growth** Fund Management, Inc.
43
-------------------------------------------------------------------------------------- FUND INVESTMENT ADVISERS ELIGIBLE PORTFOLIOS Calvert Variable Calvert Asset CVS Calvert Social Balanced Portfolio Series, Inc. Management Company, Inc. Subadvisers (equity portion): New Amsterdam Partners LLC and SSgA Funds Management, Inc. (No subadviser on fixed income portion) Columbia Funds Columbia Management Columbia Small Cap Value Fund, Variable Variable Advisors, LLC Series Insurance Trust Dreyfus Investment The Dreyfus Dreyfus IP Technology Growth Portfolios Corporation Fidelity Variable Fidelity Management Insurance and Research Company Products Fund Subadviser: Fidelity Fidelity(R) VIP Contrafund(R) Management & Research (U.K.) Inc. ("FMRUK"), Fidelity Management & Research (Far East) Inc. ("FMRFE"), Fidelity Investments Japan Limited ("FIJL"), FMR Co., Inc. ("FMRC") Subadviser: FMRC Fidelity(R) VIP Equity-Income Subadviser: FMRUK, Fidelity(R) VIP Mid Cap FMRFE, FIJL, FMRC Janus Aspen Series Janus Capital Janus Aspen Series Balanced; Management LLC Janus Aspen Series Worldwide Growth MFS(R) Variable MFS(R) Investment MFS(R) Investors Trust Series; Insurance Management MFS(R) Research Series; Trust(SM) MFS(R) Utilities Series Neuberger Berman Neuberger Berman Neuberger Berman AMT Mid-Cap Growth Advisers Management Management Inc. Portfolio Trust Subadviser: Neuberger Berman, LLC The Royce Capital Royce & Associates, Royce Micro-Cap Portfolio Fund LLC Royce Small-Cap Portfolio T. Rowe Price Equity T. Rowe Price T. Rowe Price Equity Income Portfolio II Series, Inc. Associates, Inc. Van Eck Worldwide Van Eck Associates Van Eck Worldwide Hard Assets Insurance Trust Corporation The Universal Morgan Stanley Van Kampen UIF Emerging Markets Equity Institutional Funds, Investment Management Inc. Inc. Victory Variable Victory Capital Victory VIF Diversified Stock Insurance Management, Inc. Funds
* The MainStay VP Value portfolio will merge with and into the MainStay VP ICAP Select Equity portfolio on May 16, 2008. ** No premiums or transfers will be accepted into this Investment Division from policyowners who did not have a portion of their Accumulation Value allocated to this Investment Division prior to June 1, 2007. Policyowners who remove all Accumulation Value allocations from this Investment Division will not be permitted to reallocate any portion of their Accumulation Value to this Investment Division.
Please refer to the attached prospectuses of the respective Funds for a complete description of the Funds, the investment advisers, subadvisors, and the Portfolios. The Funds' prospectuses should be read carefully before any decision is made concerning the allocation of premium payments to an Investment Division corresponding to a particular Eligible Portfolio. You are responsible for choosing the Investment Divisions, and the amounts allocated to each, that are appropriate for your own individual circumstances and your investment goals, financial situation, and risk tolerance. Decisions regarding investment allocations should be carefully considered. YOU BEAR THE RISK OF ANY DECLINE IN THE VALUE OF YOUR POLICY RESULTING FROM THE PERFORMANCE OF THE PORTFOLIOS YOU HAVE CHOSEN. 44 In making your investment selections, We encourage you to thoroughly investigate all of the information regarding the Eligible Portfolios that are available to you, including each Fund's prospectus, statement of additional information, and annual and semi-annual reports. Other sources such as the Fund's website or newspapers and financial and other magazines provide more current information, including information about any regulatory actions or investigations relating to a Fund or Eligible Portfolio. After you select Investment Divisions for your initial premium, you should monitor and periodically re-evaluate your allocations to determine if they are still appropriate. NYLIAC does not provide investment advice and does not recommend or endorse any particular Eligible Portfolio or Portfolios. ADDITIONS, DELETIONS, OR SUBSTITUTIONS OF INVESTMENTS NYLIAC retains the right, subject to any applicable law, to make additions to, deletions from, or substitutions for, the Eligible Portfolio shares held by any Investment Division. NYLIAC reserves the right to eliminate the shares of any of the Eligible Portfolios and to substitute shares of another portfolio of a Fund, or of another registered open-end management investment company. We may do this if the shares of the Eligible Portfolios are no longer available for investment, or if We believe investment in any Eligible Portfolio would become inappropriate in view of the purposes of the Separate Account. To the extent required by law, We will not make substitutions of shares attributable to your interest in an Investment Division until you have been notified of the change. This does not prevent the Separate Account from purchasing other securities for other series or classes of policies, or from processing a conversion between series or classes of policies on the basis of requests made by policyowners. We may establish new Investment Divisions when We determine in Our sole discretion that marketing, tax, investment, or other conditions so warrant. We will make new Investment Divisions available to existing policyowners on a basis We determine. We may also eliminate one or more Investment Divisions, if We determine, in Our sole discretion, that marketing, tax, investment, or other conditions warrant. In the event of any substitution or change, NYLIAC may, by appropriate endorsement, change the policies to reflect such substitution or change. We also reserve the right to: (a) operate the Separate Account as management companies under the Investment Company Act of 1940, (b) deregister them under such Act in the event such registration is no longer required, (c) combine them with one or more other separate accounts, and (d) restrict or eliminate the voting rights of persons having voting rights as to the Separate Account, as permitted by law. REINVESTMENT We automatically reinvest all dividends and capital gain distributions from Eligible Portfolios in shares of the distributing Portfolio at their net asset values on the payable date. THE POLICIES This is a flexible premium policy, which means that additional premium payments can be made. It is issued on the lives of individual Annuitants. The policies are variable. This means that the Accumulation Value will fluctuate based on the investment experience of the Investment Divisions you select. The interest credited on the Fixed Accumulation Value will also vary. NYLIAC does not guarantee the investment performance of the Separate Account or of the Eligible Portfolios. You bear the entire investment risk with respect to amounts allocated to the Investment Divisions of the Separate Account. We offer no assurance that the investment objectives of the Investment Divisions will be achieved. Accordingly, amounts allocated to the Investment Divisions of the Separate Account are subject to the risks inherent in the securities markets and, specifically, to price fluctuations in the Eligible Portfolios' investments. As the owner of the policy, you have the right to (a) change the Beneficiary, (b) name a new owner (on Non-Qualified Policies only), (c) receive Income Payments, (d) name a payee to receive Income Payments and (e) transfer funds among Investment Divisions. You cannot lose these rights. However, all rights of ownership cease upon your death. The current policyowner of a Non-Qualified Policy has the right to transfer ownership to another person(s) or entity. To transfer ownership, the policyowner must complete Our approved "Transfer of Ownership" form in effect at 45 the time of the request. This change will take effect as of the date We receive your signed form at one of the addresses noted in Question 15 of this Prospectus, subject to any payment We made or other action We took before recording the change. Federal law requires all financial institutions to obtain, verify, and record information that identifies each person or entity that becomes the owner of an existing policy. This means the new policyowner(s) will be required to provide their name, address, date of birth and other identifying information. To complete a transfer of ownership, the new policyowner(s) will also be required to submit financial and suitability information. Certain provisions of the policies may be different than the general description in this Prospectus, and certain riders and options may not be available, because of legal requirements or restrictions in your state. See your policy for specific variations because any such state variations will be included in your policy or in riders or endorsements attached to your policy. See your Registered Representative or contact Us for specific information that may be applicable to your state. SELECTING THE VARIABLE ANNUITY THAT'S RIGHT FOR YOU In addition to the New York Life Flexible Premium Variable Annuity policy described in this Prospectus, We offer other variable annuities, each having different features, fees and charges. Your Registered Representative can help you decide which is best for you based on your individual circumstances, time horizon and policy feature preferences. The following chart outlines some of the different features for each New York Life variable annuity We offer. The availability of optional policy features such as those mentioned in the chart, may increase the cost of the policy. Therefore, when selecting a policy, you should consider what policy features you plan to use within your variable annuity. You should also consider the different surrender charge period associated with each policy in light of the length of time you plan to hold your policy (i.e., your time horizon). If you intend to make multiple contributions to your policy over time, you may want to consider a surrender charge period that is based on the policy date. If you intend to make a single contribution or limited contributions over time, you may want to consider a policy with a surrender charge period that is based on each premium payment. In addition to the surrender charges, you should also evaluate the available policy features and the different fees associated with each of the features and of the features of the policy. 46 You should consider the investment objectives, risks, charges and expenses of an investment carefully before investing. Both the product and underlying Fund prospectuses contain this and other information about the variable annuities and underlying investment options. Your Registered Representative can provide you with prospectuses for one or more of these variable annuities and the underlying Funds. Please read the prospectuses carefully before investing.
--------------------------------------------------------------------------------------------------------------------------------- NEW YORK LIFE NEW YORK LIFE NEW YORK LIFE NEW YORK LIFE NEW YORK LIFE FLEXIBLE PREMIUM LONGEVITY BENEFIT PREMIUM PLUS ELITE ELITE VARIABLE ESSENTIALS VARIABLE ANNUITY# VARIABLE ANNUITY# VARIABLE ANNUITY# ANNUITY# VARIABLE ANNUITY# --------------------------------------------------------------------------------------------------------------------------------- Surrender Charge 9 Years (7%, 7%, 10 Years (8%, 8%, 10 Years (8%, 8%, 8 Years (8%, 8%, 7 Years (7%, 7%, Period 7%, 6%, 5%, 4%, 3%, 8%, 7%, 6%, 5%, 4%, 8%, 7%, 6%, 5%, 4%, 8%, 7%, 6%, 5%, 4%, 7%, 6%, 6%, 5%, 2%, 1% -- based on 3%, 3%, 3% -- 3%, 3%, 3% -- 3% -- based on 4% -- based on policy date) based on the Policy based on each each each premium Date)* premium payment premium payment payment date) date)* date)* --------------------------------------------------------------------------------------------------------------------------------- DCA Advantage Plan No Yes (6 month Yes (6 month Yes (6 month Yes (6, 12, 18 account) account) account) month accounts) --------------------------------------------------------------------------------------------------------------------------------- Interest Sweep Yes Yes Yes Yes Yes --------------------------------------------------------------------------------------------------------------------------------- Longevity Benefit No Yes No No No --------------------------------------------------------------------------------------------------------------------------------- Premium Credit No Yes Yes No No --------------------------------------------------------------------------------------------------------------------------------- Fixed Account Yes Yes Yes Yes Yes One-Year One-Year One-Year One-Year - One-Year - Three-Year --------------------------------------------------------------------------------------------------------------------------------- Reset Death Benefit 3 year reset to Optional Optional Optional Annual reset to Guarantee age 85 Annual reset to age Annual reset to Annual reset to age 80 80 age 80 age 80 --------------------------------------------------------------------------------------------------------------------------------- Annual Death N/A 0.30% Ages 65 or younger: Ages 65 or younger: N/A Benefit Reset 0.30% 0.30% Charge Ages 66 to 75: Ages 66 to 75: 0.35% 0.35% --------------------------------------------------------------------------------------------------------------------------------- Mortality and 1.40% 1.35% 1.90% 1.70% 1.45% Expense Risk and Based on assets of Based on Adjusted Based on Adjusted Based on Adjusted Based on assets of Administration the Separate Premium Payments. Premium Payments. Premium Payments. the Separate Costs Account. Charge is not Charge is not Charge is not Account. Charge Charge is reflected reflected in the reflected in the reflected in the Charge is reflected in the Accumulation Accumulation Unit Accumulation Unit Accumulation Unit in the Accumulation Unit Value Value Value Value Unit Value --------------------------------------------------------------------------------------------------------------------------------- Longevity Benefit N/A 1.00% N/A N/A N/A Charge Based on the total premium payment made to the policy. --------------------------------------------------------------------------------------------------------------------------------- Annual Policy $30 $30 $30 $30 $30 Service Charge --------------------------------------------------------------------------------------------------------------------------------- Minimum Cash Value $20,000 $100,000 $100,000 $100,000 $50,000 Required to Waive Annual Policy Service Charge --------------------------------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------- NEW YORK LIFE NEW YORK LIFE NEW YORK LIFE PREMIUM PLUS II SELECT VARIABLE ACCESS VARIABLE VARIABLE ANNUITY# ANNUITY# ANNUITY# ------------------------------------------------------------------------------------- Surrender Charge 8 Years (8%, 8%, 3 Years (8%, 8%, None Period 8%, 7%, 6%, 5%, 4%, 7% -- based on each 3% -- based on premium payment each premium date) payment date)* ------------------------------------------------------------------------------------- DCA Advantage Plan Yes (6 month Yes (6 and 12 month No account) accounts) ------------------------------------------------------------------------------------- Interest Sweep Yes Yes No ------------------------------------------------------------------------------------- Longevity Benefit No No No ------------------------------------------------------------------------------------- Premium Credit Yes No No ------------------------------------------------------------------------------------- Fixed Account Yes Yes Yes One-Year One-Year One-Year ------------------------------------------------------------------------------------- Reset Death Benefit Annual reset to Annual reset to Annual reset to Guarantee age 80 age 80 age 80 ------------------------------------------------------------------------------------- Annual Death N/A N/A N/A Benefit Reset Charge ------------------------------------------------------------------------------------- Mortality and 1.75% 1.85% 1.55% Expense Risk and Based on assets of Based on assets of Based on assets of Administration the Separate the Separate the Separate Costs Account. Account. Account. Charge Charge is reflected Charge is reflected Charge is reflected in the Accumulation in in Unit Value the Accumulation the Accumulation Unit Value Unit Value ------------------------------------------------------------------------------------- Longevity Benefit N/A N/A N/A Charge ------------------------------------------------------------------------------------- Annual Policy $30 $50 $40* Service Charge ------------------------------------------------------------------------------------- Minimum Cash Value $100,000 $100,000 $50,000 Required to Waive Annual Policy Service Charge -------------------------------------------------------------------------------------
All policies and features may not be available in all jurisdictions. # Each formerly a LifeStages Variable Annuity. * May be different in some jurisdictions. 47 QUALIFIED AND NON-QUALIFIED POLICIES We designed the policies primarily for the accumulation of retirement savings and to provide income at a future date. We issue both Qualified and Non- Qualified Policies. Both types of policies offer tax-deferred accumulation. You may purchase a Non-Qualified Policy to provide for retirement income other than through a tax-qualified plan. You may purchase a Qualified Policy for use with any one of the tax-qualified plans listed below. (1) Code Section 403(b) TSAs purchased by employees of certain tax-exempt organizations and certain state-supported educational institutions; (2) Section 408 or 408A Individual Retirement Annuities ("IRAs"), including: Roth IRAs, SEP IRA's and SIMPLE IRAs (3) Section 457 Deferred Compensation Plans. Please see "Federal Tax Matters" for a detailed description of these plans. If you are considering the purchase of a Qualified Policy or a Non- Qualified Policy to fund another type of tax-qualified retirement plan, such as a plan qualifying under Section 401(a) of the Code, you should be aware that this policy will fund a retirement plan that already provides tax deferral under the Code. Therefore, the tax deferral of the annuity does not provide additional benefits. However, this annuity is designed to provide certain payment guarantees and features other than tax deferral, some of which may not be available in other investments. There are fees and charges in an annuity that may not be included in other types of investments. The additional features and benefits include: - A guaranteed death benefit, as explained in this Prospectus. - The option for you to receive a guaranteed stream of income payments for life after you have owned the policy for one year. - A Fixed Account that features a guaranteed fixed interest rate. - An optional Interest Sweep feature that automatically allocates interest earned on monies in the Fixed Account to other Investment Divisions offered under the policy. - The flexibility to easily transfer money among Investment Divisions in the annuity managed by different investment managers and to have your investment mix automatically rebalanced periodically. These features are explained in detail in this Prospectus. You should purchase this annuity with tax-qualified money because of the additional features the annuity provides and not for the tax deferral to which the tax- qualified plan is already entitled. You should consult with your tax or legal advisor to determine if the policy is suitable for your tax qualified plan. POLICY APPLICATION AND PREMIUM PAYMENTS To purchase a policy, you must complete an application. The application is sent by your Registered Representative to NYLIAC's Cleveland or Dallas Service Center with your initial premium payment. (Initial premium payments received in connection with 1035 exchanges, rollovers and TSAs must be sent to either the Cleveland or Dallas Service Center, or one of the addresses noted in Question 17 of this Prospectus.) If the application is complete and accurate, and We have received all other information necessary to process the application, We will credit the initial premium payment to the investment options you have selected within two Business Days after receipt at the Cleveland or Dallas Service Center. (Or, in the case of initial premium payments received in connection with 1035 exchanges, rollovers and TSAs, at the Cleveland or Dallas Service Centers or at one of the addresses noted in Question 17 of this Prospectus.) If We cannot credit the initial premium payment within five Business Days after We receive it because the application is incomplete or inaccurate, We will contact you and explain the reason for the delay. Unless you consent to NYLIAC's retaining the initial premium payment and crediting it as soon as the necessary requirements are fulfilled, We will refund the initial premium payment immediately. Acceptance of applications is subject to NYLIAC's rules. We reserve the right to reject any application or initial premium payment. Generally, only one policyowner is named. If We issue a jointly owned policy, ownership rights and privileges under the policy must be exercised jointly and benefits under the policy will be paid upon the death of any joint owner. ACCEPTANCE OF INITIAL AND SUBSEQUENT PREMIUM PAYMENTS IS SUBJECT TO OUR SUITABILITY STANDARDS. You may allocate premium payments in up to 43 Investment Divisions, 42 of which are available to all policyholders, as well as the Fixed Account. Moreover, you may increase or decrease the percentages of the 48 premium payments (which must be in whole number percentages) allocated to each Allocation Alternative at the time a premium payment is made. Unless We permit otherwise, the minimum initial premium payment for Qualified Policies is as follows: (a) for TSAs, $50 per month or a $2,000 single premium; (b) for IRAs, $1,200 initial premium payment plus pre-authorized monthly deductions of $100 per month, or pre-authorized monthly deductions of $165 per month or a $2,000 single premium; (c) for deferred compensation plans, $50 per month; and (d) for SEP plans, $600 initial premium payment or $50 per month if part of a pre-authorized billing arrangement. (e) For SIMPLE IRAs, $4,000 initial premium payment and, if part of a pre-authorized billing arrangement, an additional $50 per month. For Non-Qualified Policies, the minimum initial premium payment is $5,000 single premium or a $2,500 premium payment plus $50 per month as either pre- authorized monthly deduction or as part of a pre-authorized monthly billing arrangement. You may make additional premium payments of at least $50 each or such lower amount as We may permit at any time. ACCEPTANCE OF INITIAL AND ADDITIONAL PREMIUM PAYMENTS IS SUBJECT TO OUR SUITABILITY STANDARDS. The currently available methods of payment are direct payments to NYLIAC, pre- authorized monthly deductions from your bank, a credit union or similar accounts, public and private employee payroll deductions, and any other method agreed to by us. You may make premium payments at any time before the Annuity Commencement Date and while you and the Annuitant are living. The maximum aggregate amount of premium payments We accept is $1,000,000 without prior approval. NYLIAC reserves the right to limit the dollar amount of any premium payment. For Qualified Policies, you may not make premium payments in any Policy Year that exceed the amount permitted by the plan or by applicable law. NYLIAC also reserves the right in its discretion to accept premium payments of less than $50, provided such discretion is exercised in a non-discriminatory manner. For policies investing in Separate Accounts-I and II that were issued for delivery in New York from August 1995 to August 1997, the following minimum initial and maximum additional premium payment requirements apply: (a) For Non-Qualified Policies, the minimum single premium payment is $2,500 plus $50 per month as either a pre-authorized monthly deduction or as part of a pre-authorized monthly billing arrangement. The maximum total dollar amount of premium payments in any Policy Year may not exceed $4,999.99. (b) For TSA policies, Section 457 deferred compensation plan policies, Simplified Employee Pension ("SEP") plan policies and any other Qualified Policies, premium payments may only be made through a pre- authorized billing arrangement. The maximum dollar amount of scheduled premium payments may not exceed the applicable annual plan limit as specified in the Internal Revenue Code. (c) For TSA transfer premium payments made to an existing TSA policy, the maximum dollar amount of transfer premium payments in the first Policy Year may not exceed $1,999.99. For any additional TSA transfer premium payments made in the second or subsequent Policy Years, the maximum total dollar amount of annual transfer premium payments may not exceed $4,999.99. (d) For Individual Retirement Annuity ("IRA") policies, the minimum premium payment is $1,200 initial and $100 scheduled under a pre-authorized monthly deduction arrangement, or $100 scheduled under a pre-authorized monthly deduction arrangement, or $2,000 lump sum. For any additional premium payments made in the second or subsequent Policy Years, the maximum total dollar amount of annual premium payments may not exceed $4,999.99. PAYMENTS RETURNED FOR INSUFFICIENT FUNDS If your premium payment is returned for insufficient funds, We reserve the right to reverse the investment options chosen and charge you a $20.00 fee for each returned payment. In addition, the Fund may also redeem shares to cover any losses it incurs as a result of a returned payment. If a payment is returned for insufficient funds for two consecutive periods, the privilege to pay by check or electronically will be suspended until VPSC receives a 49 written request to reinstate it in a form acceptable to us, at one of the addresses noted in Question 15 of this Prospectus, and We agree. YOUR RIGHT TO CANCEL ("FREE LOOK") You can cancel the policy within 10 days of delivery of the policy or such longer period as required under state law. To cancel your policy, you must return it to VPSC at one of the addresses listed in Question 15 of this Prospectus or to the Registered Representative through whom you purchased it, with a written request for cancellation. Except in states where you are entitled by law to receive the total of premium payments less any prior partial withdrawals, We will promptly return the Accumulation Value calculated as of the Business Day that either the Registered Representative through whom you purchased the policy or VPSC receives the policy along with a written request for cancellation in a form acceptable to Us. We will set forth the provision in your policy. ISSUE AGES To purchase a Non-Qualified Policy you and the Annuitant must not be older than age 75. We will accept additional premium payments until 12 months after either you or the Annuitant reaches the age of 85, unless We agree otherwise. For IRA, Roth IRA, SIMPLE IRA, TSA and SEP plans, you must also be the Annuitant. We can issue Qualified Policies if the Owner/Annuitant is between the ages of 18 and 75. We will accept additional premium payments until 12 months after the Owner/Annuitant reaches the age of 80, unless otherwise limited by the terms of a particular plan or unless We agree otherwise. TRANSFERS You may transfer amounts between Investment Divisions of the Separate Account or to the Fixed Account at least 30 days before the Annuity Commencement Date. Except in connection with transfers made pursuant to the Dollar Cost Averaging, Automatic Asset Reallocation, and Interest Sweep options, the minimum that you may transfer from one Investment Division to other Investment Divisions or to the Fixed Account is $500. Except for the Dollar Cost Averaging, Automatic Asset Reallocation and Interest Sweep options, if the value of the remaining Accumulation Units in an Investment Division or the Fixed Account would be less than $500 after you make a transfer, We will transfer the entire value unless NYLIAC in its discretion determines otherwise. The amount(s) transferred to other Investment Divisions must be a minimum of $25 for each Investment Division. There is no charge for the first twelve transfers in any one Policy Year. NYLIAC reserves the right to charge up to $30 for each transfer in excess of twelve, subject to any applicable state insurance law requirements. Any transfer made in connection with the Dollar Cost Averaging, Automatic Asset Reallocation and Interest Sweep options will not count as a transfer toward the twelve transfer limit. You may make transfers from the Fixed Account to the Investment Divisions in connection with the Interest Sweep option and in certain other situations. Transfers into the Fixed Account may be subject to restrictions. (See the "FIXED ACCOUNT.") You can request a transfer by any of the four methods listed below. Transfer requests are subject to limitations and must be made in accordance with our established procedures. (See "Virtual Service Center (VSC) and Interactive Voice Response System (IVR)"). - submit your request in writing on a form We approve to the VPSC at one of the addresses listed in Question 16 of this prospectus (or any other address We indicate to you in writing); - use the IVR at 800-598-2019; - speak to a Customer Service Representative at 800-598-2019 on Business Days between the hours of 9:00 a.m. and 6:00 p.m. (Eastern Time); or - make your request through the Virtual Service Center. NYLIAC is not liable for any loss, cost or expense for action based on telephone instructions which are believed to be genuine in accordance with these procedures. We must receive telephone transfer requests no later than 4:00 p.m. Eastern Time in order to assure same-day processing. We will process requests received after 4:00 p.m. on the next Business Day. 50 LIMITS ON TRANSFERS Procedures Designed to Limit Potentially Harmful Transfers--This policy is not intended as a vehicle for market timing. Accordingly, your ability to make transfers under the policy is subject to limitation if We determine, in our sole opinion, that the exercise of that privilege may disadvantage or potentially hurt the rights or interests of other policyowners. Any modification of the transfer privilege could be applied to transfers to or from some or all of the Investment Divisions. If not expressly prohibited by the policy, We may, for example: - reject a transfer request from you or from any person acting on your behalf - restrict the method of making a transfer - charge you for any redemption fee imposed by an underlying Fund - limit the dollar amount, frequency, or number of transfers. Currently, if you or someone acting on your behalf requests IN WRITING, BY TELEPHONE, AND/OR ELECTRONICALLY transfers into or out of one or more Investment Divisions on three or more days within any 60-day period, We will send you a letter notifying you that the transfer limitation has been exceeded. If We receive an additional transfer request that would result in transfers into or out of one or more Investment Divisions on three or more days within any 60-day period, We will process the transfer request. Thereafter, We will immediately suspend your ability to make transfers electronically and by telephone, regardless of whether you have received the warning letter. All subsequent transfer requests for your policy must then be made in writing through the U.S. mail or an overnight courier and received by VPSC at one of the addresses listed in Question 15 of this Prospectus. We will provide you with written notice when We take this action. We currently do not include the following transfers in these limitations, although we reserve the right to include them in the future: transfers to and from the Fixed Account, the first transfer out of the MainStay VP Cash Management Investment Division within 90 days of the issuance of a policy, and transfers made pursuant to the Dollar Cost Averaging, Automatic Asset Reallocation, and Interest Sweep options. WE MAY CHANGE THESE LIMITATIONS OR RESTRICTIONS OR ADD NEW ONES AT ANY TIME WITHOUT PRIOR NOTICE; YOUR POLICY WILL BE SUBJECT TO THESE CHANGES REGARDLESS OF THE ISSUE DATE OF YOUR POLICY. All transfers are subject to the limits set forth in the prospectus in effect on the date of the transfer request, regardless of when your policy was issued. Note, also, that any applicable transfer rules, either as indicated above or that We may utilize in the future, will be applied even if We cannot identify any specific harmful effect from any particular transfer. We apply Our limits on transfers procedures to all owners of this policy without exception. Orders for the purchase of Fund portfolio shares are subject to acceptance by the relevant Fund. We will reject or reverse, without prior notice, any transfer request into an Investment Division if the purchase of shares in the corresponding Fund portfolio is not accepted by the Fund for any reason. For transfers into multiple Investment Divisions, the entire transfer request will be rejected or reversed if any part of it is not accepted by any one of the Funds. We will provide you with written notice of any transfer request We reject or reverse. You should read the Fund prospectuses for more details regarding their ability to refuse or restrict purchases or redemptions of their shares. In addition, a Fund may require Us to share specific policyowner transactional data with them, such as taxpayer identification numbers and transfer information. Risks Associated with Potentially Harmful Transfers--Our procedures are designed to limit potentially harmful transfers. However, We cannot guarantee that Our procedures will be effective in detecting and preventing all transfer activity that could disadvantage or potentially hurt the rights or interests of other policyowners. The risks described below apply to policyowners and other persons having material rights under the policies. - We do not currently impose redemption fees on transfers or expressly limit the number or size of transfers in a given period. Redemption fees, transfer limits, and other procedures or restrictions may be more or less successful than Our procedures in deterring or preventing potentially harmful transfer activity. - Our ability to detect and deter potentially harmful transfer activity may be limited by policy provisions. 51 - (1) The underlying Fund portfolios may have adopted their own policies and procedures with respect to trading of their respective shares. The prospectuses for the underlying Fund portfolios, in effect at the time of any trade, describe any such policies and procedures. The trading policies and procedures of an underlying Fund portfolio may vary from Ours and be more or less effective at preventing harm. Accordingly, the sole protection you may have against potentially harmful frequent transfers is the protection provided by the procedures described herein. (2) The purchase and redemption orders received by the underlying Fund portfolios reflect the aggregation and netting of multiple orders from owners of this policy and other variable policies issued by us. The nature of these combined orders may limit the underlying Fund portfolios' ability to apply their respective trading policies and procedures. In addition, if an underlying Fund portfolio believes that a combined order We submit may reflect one or more transfer requests from owners engaged in potentially harmful transfer activity, the underlying Fund portfolio may reject the entire order and thereby prevent Us from implementing any transfers that day. We do not generally expect this to happen. Alternatively, Funds may request information on individual policyowner transactions and may impose restrictions on individual policyowner transfer activity. - Other insurance companies that invest in the Fund portfolios underlying this policy may have adopted their own policies and procedures to detect and prevent potentially harmful transfer activity. The policies and procedures of other insurance companies may vary from Ours and be more or less effective at preventing harm. If their policies and procedures fail to successfully discourage potentially harmful transfer activity, there could be a negative effect on the owners of all of the variable policies, including Ours, whose variable investment options correspond to the affected underlying Fund portfolios. - Potentially harmful transfer activity could result in reduced performance results for one or more Investment Divisions, due to among other things: (1) an adverse effect on portfolio management, such as: a) impeding a portfolio manager's ability to sustain an investment objective; b) causing the underlying Fund portfolio to maintain a higher level of cash than would otherwise be the case; or c) causing an underlying Fund portfolio to liquidate investments prematurely (or at an otherwise inopportune time) in order to pay withdrawals or transfers out of the underlying Fund portfolio. (2) increased administrative and Fund brokerage expenses. (3) dilution of the interests of long-term investors in an Investment Division if purchases or redemptions into or out of an underlying Fund portfolio are made when, and if, the underlying Fund portfolio's investments do not reflect an accurate value (sometimes referred to as "time-zone arbitrage" and "liquidity arbitrage"). VIRTUAL SERVICE CENTER AND INTERACTIVE VOICE RESPONSE SYSTEM Through the VSC and the IVR, you can get up-to-date information about your policy and request transfers. We may revoke VSC and IVR privileges for certain policyowners (see "Transfer Limits"). To enable you to access the IVR, you will automatically receive a Personal Identification Number (PIN). Along with your Social Security Number, the PIN will give you access to the IVR using the toll-free number 800-598-2019. You should protect your PIN and your Social Security number, because Our self- service options will be available to anyone who provides your Social Security number and your PIN; We will not be able to verify that the person providing electronic service instructions via the VSC or IVR is you or is authorized by you. In order to obtain policy information online via the VSC, you are required to register for access. Visit WWW.NEWYORKLIFE.COM/VSC and click the "Register Now" button to enroll. You will be required to register a unique User Name and Password to gain access. In a safe and secure environment, you can, among other things, access policy values, change your address, download service forms, view policy statements, and submit policy transactions. As described herein, We will use reasonable procedures to make sure that the instructions We receive through the VSC and IVR are genuine. We are not responsible for any loss, cost, or expense for any actions We take based on instructions received through IVR or VSC that We believe are genuine. We will confirm all transactions in writing. 52 Service requests are binding on all owners if the policy is jointly owned. Financial requests received after 4:00 p.m. (Eastern Time) and on non-Business Days will be processed as of the next Business Day. We make the VSC or IVR available at Our discretion. In addition, availability of the VSC or IVR may temporarily be interrupted at certain times. We do not assume responsibility for any loss while the VSC or IVR is unavailable. If you are experiencing problems, you can send service requests to Us at one of the addresses listed in Question 15 of this Prospectus. VSC The VSC is open Monday through Friday, from 7 a.m. until 4 a.m. and Saturday, from 7 a.m. until 10 p.m. (Eastern Time). The VSC enables you to: -- e-mail your Registered Representative or VPSC; -- obtain current policy values; -- transfer assets between investment options; -- change the allocation of future premium payments; -- reset your password; -- change your address; -- obtain service forms; and -- view and download policy statements IVR The IVR is available 24 hours a day, seven days a week. We record all calls. The IVR enables you to: -- obtain current policy values; -- transfer assets between investment options; -- change the allocation of future premium payments; and -- speak with one of Our Customer Service Representatives on Business Days, between the hours of 9:00 a.m. to 6:00 p.m. (Eastern Time). You may authorize a third party to have access to your policy information and to make fund transfers, allocation changes and other permitted transactions by completing a telephone request form. To authorize a third party to have access to your policy information and to make fund transfers, allocation changes and other permitted transactions, you must send VPSC a Telephone Request Form completed in a form acceptable to Us to one of the addresses noted in Question 15 of this Prospectus. The Customer Service Representative will require certain identifying information (Social Security number, address of record, date of birth) before taking any requests or providing any information to ensure that the individual giving instructions is authorized. See "The Policies--Transfers" for information on how to transfer assets between Investment Divisions. NYLIAC does not permit current or former Registered Representatives to have authorization to request transactions on behalf of their clients. Authorization to these Registered Representatives will be limited to accessing policy information only. Faxed requests are not acceptable and will not be honored at any time. In addition, We will not accept e-mailed requests for policy transactions or emails of imaged, signed service requests. E-mail inquiries that are non-transactional may be sent through Our Virtual Service Center once they have passed all security protocols to identify the policyowner. DOLLAR COST AVERAGING The main objective of dollar cost averaging is to achieve an average cost per share that is lower than the average price per share during volatile market conditions. Since you transfer the same dollar amount to an Investment Division with each transfer, you purchase more units in an Investment Division if the value per unit is low and fewer units if the value per unit is high. Therefore, you achieve a lower than average cost per unit if prices fluctuate over the long term. Similarly, for each transfer out of an Investment Division, you sell more units in an Investment Division if the value per unit is low and fewer units if the value per unit is high. Dollar cost averaging does not assure a profit or protect against a loss in declining markets. Because it involves continuous investing regardless of price levels, you should consider your financial ability to continue to make purchases during periods of low price levels. We do not count transfers under Dollar Cost Averaging as part of your 12 free transfers each Policy Year. 53 Under this option, you may specify, prior to the Annuity Commencement Date, a specific dollar amount to be transferred from any Investment Divisions to any combination of Investment Divisions and/or the Fixed Account. You will specify the Investment Divisions to transfer money from, the Investment Divisions and/or Fixed Account to transfer money to, the amounts to be transferred, the date on which transfers will be made, subject to Our rules, and the frequency of the transfers (either monthly, quarterly, semi-annually or annually). You may not make transfers from the Fixed Account, but you may make transfers into the Fixed Account. Each transfer from an Investment Division must be at least $100. You must have a minimum Accumulation Value of $2,500 to elect this option. Once all money has been allocated to the Investment Divisions of your choice or the balance remaining in the Investment Division you are transferring from is less than $100, the traditional Dollar Cost Averaging option will cease. A new request must be submitted to reactive this feature. NYLIAC may reduce the minimum transfer amount and minimum Accumulation Value at its discretion. NYLIAC will make all traditional Dollar Cost Averaging transfers on the day of each calendar month that you specify or on the next Business Day (if the day you have specified is not a Business Day). You may specify any day of the month with the exception of the 29th, 30th or 31st of a month. In order to process transfers under Our Traditional Dollar Cost Averaging Option, VPSC must have received a completed Traditional Dollar Cost Averaging request form at one of the addresses listed in Question 15 of this Prospectus no later than five Business Days prior to the date transfers are to begin. If your Traditional Dollar Cost Averaging request form for this option is received less than five Business Days prior to the date you request it to begin, the transfers will begin on the day of the month you specify in the month following the receipt of your request. All completed Traditional Dollar Cost Averaging request forms must be sent to VPSC at one of the addresses listed in Question 15 of this prospectus. Facsimile requests will not be accepted or processed. In addition, we will not accept e-mailed requests or e-mails of imaged, signed requests. You may cancel the Dollar Cost Averaging option at any time. To cancel the Traditional Dollar Cost Averaging Option, you must send a written cancellation request in a form acceptable to Us to VPSC at one of the addresses listed in Question 15 of this Prospectus. NYLIAC may also cancel this option if the Accumulation Value is less than $2,500, or such lower amount as We may determine. You may not elect the Dollar Cost Averaging option if you have selected the Automatic Asset Reallocation option. This feature is available to you at no additional cost. We have set forth below an example of how dollar cost averaging works. In the example, We have assumed that you want to transfer $100 from the MainStay VP Cash Management Investment Division to the MainStay VP Common Stock Investment Division each month. Assuming the Accumulation Unit values below, you would purchase the following number of Accumulation Units:
---------------------------------------------------------- AMOUNT ACCUMULATION ACCUMULATION UNITS MONTH TRANSFERRED UNIT VALUE PURCHASED ---------------------------------------------------------- 1 $100 $10.00 10.00 2 $100 $ 8.00 12.50 3 $100 $12.50 8.00 4 $100 $ 7.50 13.33 ========================================================== Total $400 $38.00 43.83
The average unit price is calculated as follows: Total share price $38.00 ------------------ = ------ = $9.50 Number of months 4
The average unit cost is calculated as follows: Total amount transferred $400.00 ------------------------ = ------- = $9.13 Total units purchased 43.83
In this example, you would have paid an average cost of $9.13 per unit while the average price per unit is $9.50. 54 AUTOMATIC ASSET REALLOCATION This option allows you to maintain the percentage allocated to each Investment Division at a pre-set level. For example, you might specify that 50% of the Variable Accumulation Value of your policy be allocated to the MainStay VP Convertible Investment Division and 50% of the Variable Accumulation Value be allocated to the MainStay VP International Equity Investment Division. Over time, the price fluctuations in each of these Investment Divisions will shift the percentages. If you elect Automatic Asset Reallocation, NYLIAC will automatically transfer your Variable Accumulation Value back to the percentages you specify. You may choose to have reallocations made quarterly, semi-annually or annually. You must also specify the day of the month that reallocations are to occur (with the exception of the 29th, 30th or 31st of a month). To process an Automatic Asset Reallocation transfer, you must send a completed Automatic Asset Reallocation request form to VPSC at one of the addresses listed in Question 15 of this Prospectus. VPSC must receive the completed Automatic Asset Reallocation request form at least five Business Days before the date transfers are scheduled to begin. If your completed Automatic Asset Reallocation request form for this option is received less than five Business Days prior to the date you request it to begin, the reallocation will begin on the day of the month you specify in the month following the receipt of your request. Facsimile requests will not be accepted or processed. In addition, we will not accept e-mailed requests or e-mails of imaged, signed requests. The minimum Accumulation Value required to elect this option is $2,500. There is no minimum amount that you must allocate among the Investment Divisions under this option. You may cancel the Automatic Asset Reallocation option at any time. To cancel the Automatic Asset Reallocation Option, you must send a written cancellation request in a form acceptable to Us to VPSC at one of the addresses listed in Question 15 of this Prospectus. NYLIAC may also cancel this option if the Accumulation Value is less than $2,500, or such lower amount as We may determine. You may not elect the Automatic Asset Reallocation option if you have selected the Dollar Cost Averaging option. This feature is available to you at no additional cost. INTEREST SWEEP You can request, prior to the Annuity Commencement Date, that interest earned on monies allocated to the Fixed Account be transferred from the Fixed Account to one or any combination of Investment Divisions. You will specify the Investment Divisions, the frequency of the transfers (either monthly, quarterly, semi-annually or annually) and the day of each calendar month to make the transfers (except the 29th, 30th or 31st of a month). To process an Interest Sweep transfer you must send a completed Interest Sweep request form to VPSC at one of the addresses listed in Question 15 of this Prospectus. VPSC must receive a completed Interest Sweep request form at least five Business Days prior to the date transfers are scheduled to begin. If VPSC does not receive a completed Interest Sweep request form within the five Business Days prior to the date you request it to begin, the transfer will begin on the day of the month you specify in the month following the receipt of your request. Facsimile requests will not be accepted or processed. In addition, we will not accept e-mailed requests or e-mails of imaged, signed requests. The minimum Fixed Accumulation Value required to elect this option is $2,500, but this amount may be reduced at Our discretion. NYLIAC will make all Interest Sweep transfers on the day of each calendar month you specify or on the next Business Day (if the day you have specified is not a Business Day). You may request the Interest Sweep option in addition to either the Dollar Cost Averaging or Automatic Asset Reallocation options. If an Interest Sweep transfer is scheduled for the same day as a Dollar Cost Averaging or Automatic Asset Reallocation transfer, We will process the Interest Sweep transfer first. You can cancel the Interest Sweep option at any time. To cancel the Interest Sweep option, you must send a written cancellation request in a form acceptable to Us to VPSC at one of the addresses listed in Question 15 of this Prospectus. We may also cancel this option if the Fixed Accumulation Value is less than $2,500 or such a lower amount as We may determine. This feature is available to you at no additional cost. ACCUMULATION PERIOD (a) Crediting of Premium Payments You can allocate a portion of each premium payment to one or more Investment Divisions or the Fixed Account. The minimum amount that you may allocate to any one Investment Division or the Fixed Account is $25 (or such lower amount as We may permit). Unless We notify you otherwise, We will allocate all premium payments to the Investment Divisions and/or the Fixed Account as requested. 55 We will credit that portion of each premium payment you allocate to an Investment Division in the form of Accumulation Units at the value next determined after We receive such premium payment. We determine the value of an Accumulation Unit each Business Day. We determine the number of Accumulation Units We credit to a policy by dividing the amount allocated to each Investment Division by the Accumulation Unit value for that Investment Division as of the close of the Business Day We are making this calculation. The value of an Accumulation Unit will vary with the investment experience of the Portfolio in which the Investment Division invests and reflects the deduction of Separate Account charges. The number of Accumulation Units We credit to a policy will not, however, change as a result of any fluctuations in the value of an Accumulation Unit. (See "THE FIXED ACCOUNT" for a description of interest crediting.) (b) Valuation of Accumulation Units The value of Accumulation Units in each Investment Division will change daily to reflect the investment experience of the corresponding Portfolio as well as the daily deduction of the Separate Account charges. The Statement of Additional Information contains a detailed description of how We value the Accumulation Units. POLICYOWNER INQUIRIES Your inquiries and written requests for service must be addressed to NYLIAC as indicated in the response to Questions 15, 16 and 17 in this Prospectus. Facsimile requests for service will not be accepted or processed. In addition, we will not accept e-mailed requests or e-mails of imaged, signed requests. All phone calls for service requests are recorded. We will confirm all transactions in writing. If you feel that a transaction has been processed incorrectly, it is your responsibility to contact Us in writing and provide Us with all relevant details. To correct an error, We must receive your request for correction within 15 days of the date of the confirmation and/or quarterly statement with the transaction in question. Your statement must include the nature of the error, the date of the error, the corresponding telephone reference number if applicable and any other relevant details. RECORDS AND REPORTS NYLIAC will mail to you at your last known address of record, at least semi-annually after the first Policy Year, reports containing information required under federal securities laws or by any other applicable law or regulation. Generally, NYLIAC will immediately mail to you confirmation of any transactions involving the Separate Account. When We receive premium payments on your behalf involving the Separate Account initiated through pre-authorized monthly deductions from banks ("Check-o-Matic"), payments forwarded by your employer ("list billing"), or through other payments made by pre-authorized deductions to which We agree, a summary of these policy transactions will only appear on your quarterly statement and you will not receive a confirmation statement after each such transaction. IT IS IMPORTANT THAT YOUR CONFIRMATION AND QUARTERLY STATEMENTS BE REVIEWED IMMEDIATELY TO ENSURE THAT THERE ARE NO ERRORS. IN ORDER TO CORRECT AN ERROR, YOU MUST CALL IT TO OUR ATTENTION WITHIN 15 DAYS OF THE DATE OF THE STATEMENT. IT IS IMPORTANT THAT YOU INFORM NYLIAC OF AN ADDRESS CHANGE SO THAT YOU CAN RECEIVE THESE POLICY STATEMENTS (SEE "HOW DO I CONTACT NYLIAC BY TELEPHONE OR BY THE INTERNET?"). IN THE EVENT YOUR STATEMENT IS RETURNED FROM THE US POSTAL SERVICE AS UNDELIVERABLE, WE RESERVE THE RIGHT TO SUSPEND MAILING FUTURE CORRESPONDENCE AND ALSO SUSPEND CURRENT TRANSACTION PROCESSING UNTIL AN ACCURATE ADDRESS IS OBTAINED. IN ADDITION, NO NEW SERVICE REQUESTS CAN BE PROCESSED UNTIL A VALID CURRENT ADDRESS IS PROVIDED. CHARGES AND DEDUCTIONS SURRENDER CHARGES Since no deduction for a sales charge is made from premium payments, We impose a surrender charge on certain partial withdrawals and surrenders of the policies. The surrender charge covers certain expenses relating to the sale of the policies, including commissions to Registered Representatives and other promotional expenses. We measure the surrender charge as a percentage of the amount withdrawn or surrendered. The surrender charge may apply if you elect to receive Income Payments during the first Policy Year. If you surrender your policy, We deduct the surrender charge from the amount paid to you. In the case of a partial withdrawal, you can direct NYLIAC to take surrender charges either from the remaining value of the Allocation Alternatives from which the partial withdrawals are made, or from the amount paid to you. If the remaining value in an Allocation Alternative is less than the necessary surrender charge, We will deduct the remainder of the charge from the amount withdrawn from that Allocation Alternative. 56 The surrender charge is 7% of the amounts withdrawn or surrendered during the first three Policy Years. The percentage of the charge declines 1% for each additional Policy Year, until the ninth Policy Year, after which no surrender charge is made, as shown in the following chart: AMOUNT OF SURRENDER CHARGE
POLICY YEAR CHARGE ----------- ------ 1................................................................ 7% 2................................................................ 7% 3................................................................ 7% 4................................................................ 6% 5................................................................ 5% 6................................................................ 4% 7................................................................ 3% 8................................................................ 2% 9................................................................ 1% 10+............................................................... 0
The duration of the surrender charge schedule is based solely on the Policy Date. Additional premium payments do not begin their own surrender charge schedules. EXCEPTIONS TO SURRENDER CHARGES We will not assess a surrender charge: (a) on amounts you withdraw in any one Policy Year that are less than or equal to the greater of: (i) 10% of the Accumulation Value at the time of surrender or withdrawal; (ii) 10% of the Accumulation Value as of the prior Policy Anniversary, less any prior Surrender Charge free withdrawals during the Policy Year; or (iii) the Accumulation Value less accumulated premium payments. (b) if NYLIAC cancels the policy; (c) when We pay proceeds upon the death of the policyowner or the Annuitant; (d) when you elect to receive Income Payments in any Policy Year after the first Policy Anniversary; (e) when a required minimum distribution calculated based on the value of this policy is made under a Qualified Policy (this amount will, however, count against the first exception); (f) on withdrawals at age 59 1/2 or older if the policy is tax-qualified and if the money withdrawn from the policy was transferred or rolled over from a NYLIAC fixed deferred annuity policy; (g) on withdrawals you make under the Living Needs Benefit Rider or Unemployment Benefit Rider; (h) when the aggregate surrender charges under a policy exceed 8.5% of the total premium payments; and (i) on monthly or quarterly periodic partial withdrawals made pursuant to Section 72(t)(2)(A)(iv) of the Code. OTHER CHARGES (a) Mortality and Expense Risk Charges Prior to the Annuity Commencement Date, NYLIAC imposes risk charges to compensate it for bearing certain mortality and expense risks under the policies. This charge is equal, on an annual basis, to 1.20% (annualized) of the daily average Variable Accumulation Value and is deducted daily. We guarantee that these charges will not increase. If these charges are insufficient to cover actual costs and assumed risks, the loss will fall on NYLIAC. We 57 expect to profit from this charge. We may use these funds for any corporate purpose, including expenses relating to the sale of the policies, to the extent that surrender charges do not adequately cover sales expenses. The mortality risk assumed is the risk that Annuitants as a group will live for a longer time than Our actuarial tables predict. As a result, We would be paying more Income Payments than We planned. We also assume a risk that the mortality assumptions reflected in Our guaranteed annuity payment tables, shown in each policy, will differ from actual mortality experience. Lastly, We assume a mortality risk that, at the time of death, the guaranteed minimum death benefit will exceed the policy's Accumulation Value. The expense risk assumed is the risk that the cost of issuing and administering the policies will exceed the amount We charge for these services. (b) Administration Fee Prior to the Annuity Commencement Date, We impose an administration fee intended to cover the cost of providing policy administration services. This charge is equal, on an annual basis, to 0.20% for policies investing in Separate Account III and, 0.10% for policies investing in Separate Accounts-I and II of the daily average Variable Accumulation Value. (c) Policy Service Charge For policies investing in Separate Account III, We deduct a $30 annual policy service charge each Policy Year on the Policy Anniversary and upon surrender of the policy if on the Policy Anniversary and date of surrender the Accumulation Value is less than $20,000. For policies investing in Separate Accounts-I and II, this charge will be lesser of $30 or 2% of the Accumulation Value if at the end of the Policy Year or on the date of surrender the Accumulation Value is less than $10,000. We deduct the annual policy service charge from each Allocation Alternative in proportion to its percentage of the Accumulation Value on the Policy Anniversary or date of surrender. This charge is designed to cover the costs for providing services under the policy such as collecting, processing and confirming premium payments and establishing and maintaining the available methods of payment. (d) Fund Charges The value of the assets in the Separate Account will indirectly reflect the Funds' total fees and expenses. The Funds' total fees and expenses are not part of the policy. They may vary in amount from year to year. These fees and expenses are described in detail in the relevant Fund's prospectus and/or Statement of Additional Information. (e) Transfer Fees There is no charge for the first 12 transfers in any one Policy Year. NYLIAC reserves the right to charge up to $30 for each transfer in excess of 12, subject to any applicable state insurance law requirements. Transfers made under Dollar Cost Averaging, Interest Sweep and Automatic Asset Reallocation do not count toward this transfer limit. (f) Enhanced Beneficiary Benefit Rider Charge (optional) If you elect the EBB Rider (IN JURISDICTIONS WHERE AVAILABLE), We will deduct a charge each policy quarter that the Rider is in effect based on the Accumulation Value. We will deduct this charge beginning with the first policy quarter after the Policy Date. This charge will be deducted quarterly from each Allocation Alternative in proportion to its percentage of the Accumulation Value. The maximum annual charge is 1.00% of the policy's Accumulation Value, applied on a quarterly basis. We may set a lower charge at Our sole discretion. The current charge for the EBB Rider is 0.30% of the policy's Accumulation Value, applied on a quarterly basis (0.075% per quarter). You should check with your Registered Representative to determine the percentage We are currently charging before you elect this rider. GROUP AND SPONSORED ARRANGEMENTS For certain group or sponsored arrangements, We may reduce the surrender charge and the policy service charge or change the minimum initial and additional premium payment requirements. Group arrangements include those in which a trustee or an employer, for example, purchases policies covering a group of individuals on a group basis. Sponsored arrangements include those in which an employer allows Us to sell policies to its employees or retirees on an individual basis. 58 Our costs for sales, administration, and mortality generally vary with the size and stability of the group among other factors. We take all these factors into account when reducing charges. To qualify for reduced charges, a group or sponsored arrangement must meet certain requirements, including Our requirements for size and number of years in existence. Group or sponsored arrangements that have been set up solely to buy policies or that have been in existence less than six months will not qualify for reduced charges. We will make any reductions according to Our rules in effect when an application or enrollment form for a policy is approved. We may change these rules from time to time. Any variation in the surrender charge or policy service charge will reflect differences in costs or services and will not be unfairly discriminatory. TAXES NYLIAC may, where premium taxes are imposed by state law, deduct such taxes from your policy either (i) when a surrender or cancellation occurs, or (ii) at the Annuity Commencement Date. Applicable premium tax rates depend upon such factors as your current state of residency, and the insurance laws and NYLIAC's status in states where premium taxes are incurred. Current premium tax rates range from 0% to 3.5%. Applicable premium tax rates are subject to change by legislation, administrative interpretations or judicial acts. We may in the future seek to amend the policies to deduct premium taxes when a premium payment is received. Under present laws, NYLIAC will also incur state and local taxes (in addition to the premium taxes described above) in several states. NYLIAC may assess charges for such taxes. NYLIAC does not expect to incur any federal income tax liability attributable to investment income or capital gains retained as part of the reserves under the policies. (See "FEDERAL TAX MATTERS.") Based upon these expectations, no charge is being made currently for corporate federal income taxes which may be attributable to the Separate Account. Such a charge may be made in future years for any federal income taxes NYLIAC incurs. DISTRIBUTIONS UNDER THE POLICY SURRENDERS AND WITHDRAWALS You can make a partial withdrawal, periodic partial withdrawal, hardship withdrawal (for certain policies) or surrender the policy to receive part or all of the Accumulation Value at any time before the Annuity Commencement Date and while the Annuitant is living. To request a surrender or withdrawal, you must send a written request on a form acceptable to Us to VPSC at one of the addresses listed in Question 15 of this Prospectus. Facsimile transmissions are not acceptable and will not be honored at any time. In addition, we will not accept e-mailed requests or e-mails of imaged, signed requests. If the request is complete and We have received all other information necessary to process the request, the amount available for withdrawal is the Accumulation Value on the Business Day that VPSC receives the request, less any outstanding loan balance, surrender charges, taxes that We may deduct and the annual policy service charge, if applicable. If you have not provided Us with a written election not to withhold federal income taxes at the time you make a withdrawal or surrender request, NYLIAC must by law withhold such taxes from the taxable portion of any surrender or withdrawal. We will remit that amount to the federal government. In addition, some states have enacted legislation requiring withholding. NYLIAC will pay all surrenders or withdrawals within seven days of receipt of all documents (including documents necessary to comply with federal and state tax law), subject to postponement in certain circumstances. (See "DELAY OF PAYMENTS.") Since you assume the investment risk with respect to amounts allocated to the Separate Account and because certain surrenders or withdrawals are subject to a surrender charge and premium tax deduction, the total amount paid upon surrender of the policy (taking into account any prior withdrawals) may be more or less than the total premium payments made. Surrenders and withdrawals may be taxable transactions, and the Code provides that a 10% penalty tax may be imposed on certain early surrenders or withdrawals. (The penalty tax is increased to 25% in the case of a distribution from a SIMPLE IRA within the first two years of your participation in the SIMPLE IRA plan.) (See "FEDERAL TAX MATTERS--TAXATION OF ANNUITIES IN GENERAL.") 59 (a) Surrenders We may deduct a surrender charge and any state premium tax, if applicable, any outstanding loan balance, and the annual policy service charge, if applicable, from the amount paid. We will pay the proceeds in a lump sum to you unless you elect a different Income Payment method. (See "INCOME PAYMENTS.") Surrenders may be taxable transactions and the 10% penalty tax provisions may be applicable. (See "FEDERAL TAX MATTERS--TAXATION OF ANNUITIES IN GENERAL.") (b) Partial Withdrawals The minimum amount that can be withdrawn is $500, unless We agree otherwise. We will withdraw the amount from the Allocation Alternatives in accordance with your request. If you do not specify how to allocate a partial withdrawal among the Allocation Alternatives, We will allocate the partial withdrawal on a pro-rata basis. Partial withdrawals may be taxable transactions and the 10% penalty tax provisions may be applicable. (See "FEDERAL TAX MATTERS--TAXATION OF ANNUITIES IN GENERAL.") If the requested partial withdrawal is equal to the value in any of the Allocation Alternatives from which the partial withdrawal is being made, We will pay the entire value of that Allocation Alternative, less any surrender charge that may apply, to you. For policies investing in Separate Account-III, We will not process partial withdrawal requests if honoring such requests would result in an Accumulation Value of less than $2,000. Also note that partial withdrawal requests for amounts greater than $19,999, or partial withdrawal requests made from policies that are less than 90 days old or that effected an address or ownership change within 30 days of such partial withdrawal request must be made in writing and sent to VPSC at one of the addresses noted in Question 15 of this Prospectus. (c) Periodic Partial Withdrawals You may elect to receive regularly scheduled withdrawals from the policy. These periodic partial withdrawals may be paid on a monthly, quarterly, semi- annual, or annual basis. You will elect the frequency of the withdrawals, and the day of the month for the withdrawals to be made (may not be the 29th, 30th, or 31st of a month). To process Periodic Partial Withdrawals you must send a written request in a form acceptable to Us to VPSC at one of the addresses listed in Question 15 of this Prospectus. NYLIAC must receive a request in writing no later than five Business Days prior to the date the withdrawals are to begin. If your request for this option is received less than five Business Days prior to the date you request it to begin, the withdrawals will begin on the day of the month you specify in the month following the receipt of your request. Facsimile requests will not be accepted or processed. In addition, we will not accept e-mailed requests or e-mails of imaged, signed requests. We will make all withdrawals on the day of each calendar month you specify, or on the next Business Day (if the day you have specified is not a Business Day). You must specify which Investment Divisions and/or Fixed Account from which the periodic withdrawals will be made. The minimum amount under this feature is $100, or such lower amount as We may permit. Periodic partial withdrawals may be taxable transactions and the 10% penalty tax provisions may be applicable. (See "FEDERAL TAX MATTERS--TAXATION OF ANNUITIES IN GENERAL.") If you do not specify otherwise, We will withdraw money on a pro rata basis from each Investment Division and/or the Fixed Account. You can elect to receive "Interest Only" periodic partial withdrawals for the interest earned on monies allocated to the Fixed Account. If this option is chosen, the $100 minimum for periodic partial withdrawals will be waived. However, you must have at least $5,000 in the Fixed Account at the time of each periodic partial withdrawal, unless We agree otherwise. (d) Hardship Withdrawals Under certain Qualified Policies, the Plan Administrator (as defined in Code Section 414(g)) may allow, in its sole discretion, certain withdrawals it determines to be "Hardship Withdrawals." The surrender charge and 10% penalty tax, if applicable, and provisions applicable to partial withdrawals apply to Hardship Withdrawals. REQUIRED MINIMUM DISTRIBUTION OPTION For IRAs, SIMPLE IRAs and SEP IRAs, the policyowner is generally not required to elect the required minimum distribution option until April 1st of the year following the calendar year he or she attains age 70 1/2. For TSAs, the policyowner is generally not required to elect the required minimum distribution option until April 1st of the year following the calendar year he or she attains age 70 1/2 or until April 1st of the year following the calendar year he or she retires, whichever occurs later. For Inherited IRAs, the policyowner is required to take the first required 60 minimum distribution on or before December 31 of the calendar year following the year of the original owner's death. OUR RIGHT TO CANCEL If We do not receive any premium payments for a period of two years, and both the Accumulation Value of your policy and your total premium payments less any withdrawals, outstanding loans and surrender charges are less than $2,000, We reserve the right to terminate your policy subject to any applicable state insurance law or regulation. We will notify you of Our intention to exercise this right and give you 90 days to make a premium payment. If We terminate your policy, We will pay you the Accumulation Value of your policy in one lump sum. ANNUITY COMMENCEMENT DATE The Annuity Commencement Date is the date specified on the Policy Data Page. The Annuity Commencement Date is the day that Income Payments are scheduled to commence under the policy unless the policy has been surrendered or an amount has been paid as proceeds to the designated Beneficiary prior to that date. If We agree, you may change the Annuity Commencement Date to an earlier date. The earliest possible Annuity Commencement Date is the first Policy Anniversary. However, Income Payments generally must begin by the later of age 85 or ten years after the date your policy is issued. If We agree, you may defer the Annuity Commencement Date to a later date provided that We receive written notice of the request at least one month before the last selected Annuity Commencement Date. To request to change or defer the Annuity Commencement Date to a later date, subject to the constraints noted above, you must send a written notice in a form acceptable to Us to VPSC at one of the addresses listed in Question 15 of this Prospectus. The Annuity Commencement Date and Income Payment method for Qualified Policies may also be controlled by endorsements, the plan, or applicable law. DEATH BEFORE ANNUITY COMMENCEMENT Unless amended by any rider attached to the policy, if you or the Annuitant dies prior to the Annuity Commencement Date, We will pay an amount as proceeds to the designated Beneficiary, as of the date VPSC receives proof of death and all requirements necessary to make the payment at one of the addresses listed in Question 15 of this Prospectus. That amount will be the greater of: (a) the Accumulation Value, less any outstanding loan balance; (b) the sum of all premium payments made less any outstanding loan balance, partial withdrawals and surrender charges on those withdrawals less any rider charges; or (c) the "reset value" plus any additional premium payments made since the most recent "Reset Anniversary," less any outstanding loan balance, partial withdrawals made since the most recent Reset Anniversary and any surrender charges applicable to such partial withdrawals less any rider charges. THIS FEATURE IS ONLY AVAILABLE FOR POLICIES INVESTING IN SEPARATE ACCOUNT-III. In states where approved, We recalculate the reset value, with respect to any policy, every three years from the date of the initial premium payment ("Reset Anniversary") until you or the Annuitant reaches age 85. We calculate the reset value on the Reset Anniversary based on a comparison between (a) the current Reset Anniversary's Accumulation Value, and (b) the prior Reset Anniversary's value, plus any premiums since the prior Reset Anniversary date, less any partial withdrawals and surrender charges on those partial withdrawals and any rider charges since the last Reset Anniversary date. The greater of the compared values will be the new reset value. Please consult with your Registered Representative regarding the reset value that is available under your particular policy. We have set forth below an example of how the death benefit is calculated. In this example, We have assumed the following: (1) you purchase a policy with a $200,000 premium payment; (2) the Accumulation Value is $250,000 in the second Policy Year; (3) $20,000 withdrawal is made prior to the policy's third Policy Anniversary; (4) the Accumulation Value is $220,000 on the third Policy Anniversary (Reset Anniversary); and (5) you die in the fourth Policy Year and the Accumulation Value of the policy has decreased to $175,000. 61 The death benefit is the greater of: (a) Accumulation Value = $175,000 (b) Premium payments less any partial withdrawals; or = $180,000 ($200,000 - $20,000) (c) Reset value (Accumulation Value on third Policy Anniversary) = $220,000
The formula guarantees that the amount We pay will at least equal the sum of all premium payments (less any outstanding loan balance, partial withdrawals and surrender charges on such partial withdrawals), independent of the investment experience of the Separate Account. The Beneficiary may receive the amount payable in a lump sum or under any Life Income Payment option which is then available. If more than one Beneficiary is named, each Beneficiary will be paid a pro rata portion from each Allocation Alternative in which the policy is invested as of the date We receive proof of death and all requirements necessary to make the payment to that Beneficiary. We will keep the remaining balance in the policy to pay the other Beneficiaries. Due to market fluctuations the remaining Accumulation Value may increase or decrease and We may pay subsequent Beneficiaries a different amount. Beneficiary(ies) may not make transfers between Investment Divisions of the Separate Account, the Fixed Account or any other investment option that We may offer at any time. We will make payments in a lump sum to the Beneficiary unless you have elected or the Beneficiary elects otherwise in a signed written notice which gives Us the information that We need. If such an election is properly made, We will apply all or part of these proceeds: (i) under the Life Income Payment Option to provide an immediate annuity for the Beneficiary who will be the policyowner and Annuitant; or (ii) under another Income Payment Option We may offer at the time. Payments under the annuity or under any other method of payment We make available must be for the life of the Beneficiary, or for a number of years that is not more than the life expectancy of the Beneficiary at the time of the policyowner's death (as determined for federal tax purposes), and must begin within one year after the Owner's death. (See "INCOME PAYMENTS.") If your spouse is the sole primary Beneficiary, We can pay the proceeds to the surviving spouse if you die before the Annuity Commencement Date or the policy can continue with the surviving spouse as (a) the new policyowner, and, (b) the Annuitant, if you were the Annuitant. Generally, NYLIAC will not issue a policy to joint owners. However, if NYLIAC makes an exception and issues a jointly owned policy, ownership rights and privileges under the policy must be exercised jointly and benefits under the policy will be paid upon the death of any joint owner. (See "FEDERAL TAX MATTERS--Taxation of Annuities in General.") If the Annuitant and, where applicable under another Income Payment option, the joint Annuitant, if any, die after the Annuity Commencement Date, NYLIAC will pay the sum required by the Income Payment option in effect. We will make any distribution or application of policy proceeds within 7 days after VPSC receives all documents (including documents necessary to comply with federal and state tax law) in connection with the event or election that causes the distribution to take place at one of the addresses listed in Question 15 of this Prospectus, subject to postponement in certain circumstances. (See "DELAY OF PAYMENTS" below.) INCOME PAYMENTS (a) Election of Income Payment Options We will make Income Payments under the Life Income Payment Option or under such other option We may offer at that time where permitted by state laws. We will require that a lump sum payment be made if the Accumulation Value is less than $2,000. You may not request a lump sum payment to be made prior to the maturity date listed on the policy data page of your policy. Under the Life Income Payment Option, We will make payments in the same specified amount over the life of the Annuitant with a guarantee that payments will be made for at least 10 years. If the Annuitant dies before all guaranteed payments have been made, the rest will be made to the Beneficiary. NYLIAC does not currently offer variable Income Payment options. 62 If the Life Income Payment Option is not chosen, you may request another method of payment, if We agree to it, at any time before the Annuity Commencement Date. To change the Income Payment Option or to request another method of payment prior to the Annuity Commencement Date, you must send a written request in a form acceptable to Us to VPSC at one of the addresses listed in Question 15 of this Prospectus. However, once payments begin, you may not change the option. Under the Life Income Payment Option, We may require proof of birth date before Income Payments begin. For Income Payment Options involving life income, the actual age of the Annuitant will affect the amount of each payment. Since payments based on older Annuitants are expected to be fewer in number, the amount of each annuity payment should be greater. Under Income Payment Options involving life income, the payee may not receive Income Payments equal to the total premium payments made under the policy if the Annuitant dies before the actuarially predicted date of death. We base Income Payment Options involving life income on annuity tables that vary on the basis of gender, unless the policy was issued under an employer sponsored plan or in a state which requires unisex rates. Once Income Payments begin, you may not surrender your policy or make any partial withdrawals. (b) Proof of Survivorship We may require satisfactory proof of survival, from time to time, before We pay any Income Payments or other benefits. We will request the proof at least 30 days prior to the next scheduled payment date. DELAY OF PAYMENTS We will pay any amounts due from the Separate Account under the policy within seven days of the date VPSC receives all documents (including documents necessary to comply with federal and state tax law), in connection with a request at one of the addresses listed in Question 15 of this Prospectus. Situations where payments may be delayed: 1. We may delay payment of any amounts due from the Separate Account under the policy and transfers among Investment Divisions during any period that: (a) The New York Stock Exchange ("NYSE") is closed for other than usual weekends or holidays, trading is restricted by the Securities and Exchange Commission ("SEC"); or the SEC declares that an emergency exists; (b) The SEC, by order, permits Us to delay payment in order to protect Our policyowners; or (c) The check used to pay the premium has not cleared through the banking system. This may take up to 15 days. 2. We may delay payment of any amounts due from the Fixed Account. When permitted by law, We may defer payment of any partial withdrawal or full surrender request for up to six months from the date of surrender from the Fixed Account. We will pay interest of at least 3.50% per year on any partial withdrawal or full surrender request deferred for 30 days or more. 3. Federal laws made to combat terrorism and prevent money laundering by criminals might, in certain circumstances, require Us to reject a premium payment and/or "freeze" a policy. If these laws apply in a particular policy(ies), We would not be allowed to pay any request for transfers, partial withdrawals; surrenders or death benefits. If a policy or an account is frozen, the Accumulation Value would be moved to a special segregated interest-bearing account and held in that account until We receive instructions from the appropriate federal regulator. DESIGNATION OF BENEFICIARY You may select one or more Beneficiaries and name them in the application. Thereafter, before the Annuity Commencement Date and while the Annuitant is living, you may change the Beneficiary by written notice to NYLIAC. To change the Beneficiary, you must send a written request in a form acceptable to Us to VPSC at one of the addresses listed in Question 15 of this Prospectus. If before the Annuity Commencement Date, the Annuitant dies before you and no Beneficiary for the proceeds or for a stated share of the proceeds survives, the right to the proceeds or shares of the proceeds passes to you. If you are the Annuitant, the proceeds pass to your estate. However, if the policyowner who is not the Annuitant dies before the Annuity Commencement Date, and no Beneficiary for the proceeds or for a stated share of the proceeds survives, the right to the proceeds or shares of the proceeds passes to the policyowner's estate. 63 RESTRICTIONS UNDER CODE SECTION 403(B)(11) Under 403(b) TSAs, distributions attributable to salary reduction contributions made in years beginning after December 31, 1988 (including the earnings on these contributions), as well as to earnings in such years on salary reduction accumulations held as of the end of the last year beginning before January 1, 1989, may not begin before the employee attains age 59 1/2, has a severance from employment, dies or becomes disabled. The Code section 403(b) plan may also provide for distribution in the case of hardship. However, hardship distributions are limited to amounts contributed by salary reduction. The earnings on such amounts may not be withdrawn. Even though a distribution may be permitted under these rules (e.g. for hardship or after separation from service), it may still be subject to a 10% additional income tax as a premature distribution. Under the final Code section 403(b) regulations, which the Department of Treasury published on July 26, 2007, employer contributions made to Code section 403(b) TSA contracts will be subject to new withdrawal restrictions. Under the new rules, amounts attributable to employer contributions to a Code section 403(b) TSA contract that is issued after December 31, 2008 may not be distributed earlier than the earliest of severance from employment or upon the occurrence of a certain event, such as after a fixed number of years, the attainment of a stated age, or disability. These new withdrawal restrictions do not apply to Code section 403(b) TSA contracts issued before January 1, 2009. Under the terms of your Code section 403(b) plan you may have the option to invest in other funding vehicles, including Code section 403(b)(7) custodial accounts. You should consult your plan document to make this determination. LOANS Loans are available only if you have purchased your policy in connection with a 403(b) plan and may not be available in all states for plans subject to the Employee Retirement Income Security Act of 1974 ("ERISA"). To request a TSA loan, you must send a written request on a form acceptable to Us to VPSC. Under your 403(b) TSA policy, you may borrow against your policy's Accumulation Value after the first Policy Year and prior to the Annuity Commencement Date. Unless We agree otherwise, only one loan may be outstanding at a time. There must be a minimum accumulation value of $5,000 in the Contract at the time of the loan. The minimum loan amount is $500. The maximum loan that you may take is the lesser of: (a) 50% of the policy's Accumulation Value on the date of the loan, or (b) $50,000 minus your highest outstanding loan balance in the previous 12 months from this policy and any qualified employer plan (as defined under Sections 72(p)(4) and 72(p)(2)(D) of the Code). Please note that adverse tax consequences could result from your failure to comply with this limitation. NYLIAC, and its affiliates and agents, do not provide legal or tax advice nor assume responsibility or liability for any legal or tax consequences of any TSA loan taken under a 403(b) policy or the compliance of such loan with the Code limitations set forth in this paragraph or for determining whether any plan or loan is subject to and/or complies with ERISA. We withdraw a loan processing fee of $25 from the Accumulation Value on a pro rata basis, unless prohibited by applicable state law or regulation. If on the date of the loan you do not have a Fixed Accumulation Value equal to at least 125% (110% in New York), of the loan amount, We will transfer sufficient Accumulation Value from the Investment Divisions on a pro rata basis so that the Fixed Accumulation Value equals 125% (110% in New York) of the loan amount. While a loan is outstanding, you may not make partial withdrawals or transfers which would reduce the Fixed Accumulation Value to an amount less than 125% (110% in New York), of the outstanding loan balance. For all loans, of the assets being held in the Fixed Account to secure 125% (110% in New York) of the loan amount, the interest rate credited to the amount representing the outstanding loan balance will be 2% less than the interest rate charged on the loan. The additional 25% (10% in New York) being held in the Fixed Account to secure the loan will be credited with the current declared interest rate for both non-ERISA and ERISA subject plans, but will always be at least equal to the minimum guaranteed interest rate stated on the data page of your policy. For plans subject to ERISA, interest charged will be based on the Prime Rate, as reported in the Wall Street Journal on the first business day of a calendar year or the Moodys Corporate Bond Yield Average as of two months before the date the rate is determined. The rate is determined on the first business day of the calendar year. We will assess interest in arrears as part of the periodic loan payments. You must repay the loan on a periodic basis not less frequent than quarterly and over a period not greater than five years from the date it is taken. If a loan repayment is in default, We will withdraw the amount in default from the Fixed Accumulation value to the extent permitted by federal income tax rules. We will take such a repayment on a first-in, first-out ("FIFO") basis from amounts allocated to the Fixed Account. 64 We permit loans to acquire a principal residence under the same terms described above, except that: (a) the minimum loan amount is $5,000; and (b) repayment of the loan amount may be extended to a maximum of twenty-five years. We deduct any outstanding loan balance including any accrued interest from the Fixed Accumulation Value prior to payment of a surrender or the commencement of the annuity benefits. On death of the policyowner or Annuitant, We deduct any outstanding loan balance from the Fixed Accumulation Value as a partial withdrawal as of the date We receive the notice of death. We also deduct any outstanding loan balance from the Fixed Accumulation Value as a partial withdrawal upon default of a loan repayment, including any applicable surrender charges. Loans are subject to the terms of the policy, your 403(b) plan and the Code, which may impose restrictions upon them. We reserve the right to suspend, modify, or terminate the availability of loans under this policy at any time. However, any action taken by Us will not affect already outstanding loans. RIDERS At no additional charge, We include two riders under the policy: an Unemployment Benefit rider, for Non-Qualified, IRA, SEP IRA, Roth IRA and SIMPLE IRA policies, and a Living Needs Benefit rider, for all types of policies. Both riders provide for an increase in the amount that can be withdrawn from your policy which will not be subject to the imposition of a surrender charge upon the happening of certain qualifying events. We also offer the EBB Rider for an additional charge. The Enhanced Spousal Continuance ("ESC") Rider is available at no additional charge if the EBB Rider is elected. The riders are only available in those states where they have been approved. (a) Living Needs Benefit Rider If the Annuitant enters a nursing home, becomes terminally ill or disabled you, the policyowner, may be eligible to receive all or a portion of the Accumulation Value without paying a surrender charge. The policy must have been inforce for at least one year and have a minimum Accumulation Value of $5,000. We must be provided with proof that the Annuitant has spent 60 or more consecutive days in a nursing home, is terminally ill or disabled. Withdrawals will be taxable to the extent of gain and, prior to age 59 1/2, may be subject to a 10% IRS penalty. This rider is in effect in all jurisdictions where approved. To qualify for the disability benefit of this rider, the Annuitant must be classified as disabled by the Social Security Administration. You, the policyowner, are no longer eligible for the disability benefit once the Annuitant begins collecting Social Security retirement benefits. The rider will be effective the later of the date you meet the above requirements or the date We receive your notification at VPSC. There is no additional charge for this rider. (b) Unemployment Benefit Rider For all Non-Qualified, IRA, SEP IRA, Roth IRA and SIMPLE IRA policies, if you become unemployed, you may be eligible to increase the amount that can be withdrawn from your policy to 50% of the policy's Accumulation Value without paying surrender charges. This rider can only be used once. The policy must have been inforce for at least one year and have a minimum Accumulation Value of $5,000. You also must have been unemployed for at least 60 consecutive days. Withdrawals may be taxable transactions and, prior to age 59 1/2, may be subject to a 10% IRS penalty. This rider is in effect in all states where approved. To apply for this benefit, you must submit a determination letter from the applicable state's Department of Labor indicating that you qualify for and are receiving unemployment benefits. The rider will be effective the later of the date you meet the above requirements or the date We receive your notification at VPSC. There is no additional charge for this rider. (c) Enhanced Beneficiary Benefit Rider (optional) THE EBB RIDER IS AVAILABLE ONLY AT THE TIME OF APPLICATION, IN JURISDICTIONS WHERE APPROVED. The EBB Rider is available on Non-Qualified Policies and, where permitted by the IRS, also on Qualified Policies. The EBB Rider can increase the death benefit if you or the Annuitant die before the Annuity Commencement Date. If you select this rider, the EBB, in addition to the amount payable under the terms of your policy, may be payable to your Beneficiary(ies) if you (if you are not the Annuitant) or the Annuitant die(s) prior to the Annuity Commencement Date. Therefore, under this Rider, the total death benefit payable will be the greatest of any of the amounts payable as described in the Death Before Annuity Commencement section of the Prospectus plus the EBB, if any. While this Rider is in effect, We will deduct a charge from your Accumulation Value on each policy quarter. (See "CHARGES AND DEDUCTIONS--Other Charges--Enhanced Beneficiary Benefit Rider Charge.") 65 The payment under the EBB Rider is calculated as a percentage of any Gain in the policy as of the date We receive all necessary requirements to pay death benefit proceeds at VPSC. The applicable percentage varies based upon the issue age of you or the Annuitant, whoever is older. As of the date of this Prospectus, the applicable percentages are as follows: 50% where the oldest owner or Annuitant is 70 or younger, and 25% where the oldest owner or Annuitant is 71 to 75 inclusive. We may change the applicable percentages under the EBB Rider from time to time, within the following ranges:
AGE OF OLDEST OWNER RANGE OF OR ANNUITANT APPLICABLE PERCENTAGES ------------------- ---------------------- 70 OR YOUNGER NOT LESS THAN 40% NOR GREATER THAN 60% 71 TO 75 INCLUSIVE NOT LESS THAN 20% NOR GREATER THAN 40%
WHEN YOU SELECT THE EBB RIDER, THE APPLICABLE PERCENTAGE WILL APPEAR ON YOUR POLICY DATA PAGE. THE APPLICABLE PERCENTAGE FOR THE POLICY WILL NOT CHANGE ONCE THE POLICY IS ISSUED. PLEASE CHECK WITH YOUR REGISTERED REPRESENTATIVE FOR FURTHER DETAILS. The Gain equals the policy's Accumulation Value minus the Adjusted Premium Payments. Adjusted Premium Payments are the total of all premium payments less Proportional Withdrawals. Proportional Withdrawals are the amount(s) withdrawn from the policy divided by the policy's Accumulation Value immediately preceding the withdrawal, multiplied by the total of all Adjusted Premium Payments immediately preceding the withdrawal. If more than one Beneficiary is named, each Beneficiary will be paid a pro rata portion of the EBB. The EBB will be calculated for a Beneficiary on each date that We receive all necessary requirements to pay such Beneficiary at VPSC. Due to market fluctuations, the EBB may increase or decrease and Beneficiaries may therefore be paid different amounts. The maximum amount payable under the EBB Rider, regardless of the Gain, is equal to a percentage of Adjusted Premium Payments. As of the date of this Prospectus, the applicable percentages are as follows: 100% where the oldest owner or Annuitant is 70 or younger, and 75% where the oldest owner or Annuitant is 71 to 75 inclusive. We may change the applicable percentages under the EBB Rider from time to time, but the maximum amount payable will not exceed 200% of Adjusted Premium Payments. If you select this rider, the applicable percentage will appear on your Policy Data Page. Please check with your Registered Representative for further details. There will be no payment under the EBB Rider if on the date We calculate the EBB: 1) there is no Gain, 2) the policy's Accumulation Value is less than your premium payments made and not previously withdrawn, or 3) the Rider has ended or terminated. The EBB Rider will end on the earliest of the following: 1) on the Annuity Commencement Date, 2) if you surrender the policy, 3) if your spouse, as the sole primary Beneficiary, elects to continue the policy upon your death, (see THE POLICIES--Riders--Enhanced Spousal Continuance Rider) 4) if the Annuitant was your spouse and you, as the sole primary Beneficiary, elect to continue the policy upon your spouse's death, or 5) if you transfer ownership of the policy. As discussed below in THE POLICIES--Riders--Enhanced Spousal Continuance Rider, if upon your death prior to the Annuity Commencement Date your spouse elects to continue the policy as the new owner (and Annuitant, if you are the Annuitant), the Accumulation Value will be adjusted (as of the date We receive due proof of death and all other requirements at VPSC) to equal the greatest of any of the amounts payable as described in the Death Before Annuity Commencement section of the Prospectus, plus, if applicable, any EBB provided by the EBB Rider. THIS RIDER CANNOT BE CANCELLED WITHOUT SURRENDERING YOUR POLICY. You will forfeit any benefits under the EBB Rider if you elect to receive Income Payments, or surrender or transfer your policy. If you expect to do any of these, the EBB Rider may not be appropriate for you. 66 Below is an example of how the benefit of this rider may be realized and how withdrawals impact the benefit under this Rider. In this example, We assume the following: 1. The rider is elected at the time of application; 2. You purchase this policy with a $200,000 initial premium payment (no additional premium payments are made); 3. A withdrawal of $20,000 is made in the fourth Policy Year; 4. Immediately preceding the withdrawal, the Accumulation Value has increased to $250,000, and the total Adjusted Premium Payments equaled $200,000 (since there have been no previous withdrawals); 5. You (or the Annuitant, if you are not the Annuitant) die in the fifth Policy Year and the Accumulation Value of the policy has increased once again to $250,000 as of the date We receive the necessary requirements to pay the death benefit; and 6. The Enhanced Beneficiary Benefit Rider percentage equals 50%. First, the Proportional Withdrawal amount is calculated (withdrawal amount divided by the Accumulation Value immediately preceding the withdrawal, multiplied by the Adjusted Premium Payments immediately preceding the withdrawal): Proportional Withdrawal = ($20,000/$250,000) x $200,000 = $16,000 Second, the amount of current Adjusted Premium Payments (after the withdrawal) is calculated (total of all premium payments minus Proportional Withdrawals): Adjusted Premium Payments = $200,000 - $16,000 = $184,000 Third, the Gain is calculated (Accumulation Value - Adjusted Premium Payments): Gain = $250,000 - $184,000 = $66,000 Finally, the Enhanced Beneficiary Benefit amount is calculated (Gain multiplied by the applicable EBB rider percentage): Enhanced Beneficiary Benefit = $66,000 x 50% = $33,000 In this example, the Enhanced Beneficiary Benefit is equal to $33,000. This amount would be payable in addition to the guaranteed death benefit amount under the policy. 67 (d) Enhanced Spousal Continuance Rider (optional) If you elect the EBB Rider at the time of application (see above), your policy will, subject to state availability, also include the ESC Rider at no charge. The ESC Rider will not be included on policies sold in connection with TSAs or Section 457 deferred compensation plans. Under the ESC Rider, if your spouse is the sole primary Beneficiary, upon your death prior to the Annuity Commencement Date, your spouse may elect to continue the policy as the new owner (and Annuitant, if you are the Annuitant). If the election is made, the Accumulation Value will be adjusted (as of the date We receive due proof of death and all necessary requirements at VPSC) to equal the greatest of any of the amounts payable as described in the Death Before Annuity Commencement section of the Prospectus, plus, if applicable, any EBB provided by the EBB Rider. Unless We notify you otherwise, any additional Accumulation Value calculated under the ESC Rider will be allocated to the policy according to the premium allocation instructions on record. The ESC Rider ends upon the earliest of the following: 1) if you surrender the policy, 2) if Income Payments begin, 3) once the ESC Rider has been exercised, or 4) if you transfer ownership of the policy to someone other than your spouse. THIS RIDER CANNOT BE CANCELLED WITHOUT SURRENDERING YOUR POLICY. Upon exercising the ESC Rider and continuing the policy, the EBB Rider and the quarterly charges for the EBB Rider will cease. All other policy provisions will continue as if your spouse had purchased the policy on the original Policy Date. THE FIXED ACCOUNT The Fixed Account is supported by the assets in NYLIAC's general account, which includes all of NYLIAC's assets except those assets specifically allocated to NYLIAC's separate accounts. NYLIAC has sole discretion to invest the assets of the Fixed Account subject to applicable law. The Fixed Account is not registered under the federal securities laws and is not generally subject to their provision. Therefore, generally you do not have the benefits and protections of these statutes for amounts allocated to the Fixed Account. Furthermore, the staff of the SEC has not reviewed the disclosures in this Prospectus relating to the Fixed Account. These disclosures regarding the Fixed Account may be subject to certain applicable provisions of the federal securities laws relating to the accuracy and completeness of statements made in prospectuses. (a) Interest Crediting NYLIAC guarantees that it will credit interest at an effective rate of at least the minimum guaranteed interest rate stated on the data page of your policy to amounts allocated or transferred to the Fixed Account under the policies. We credit interest on a daily basis. NYLIAC may, at its sole discretion, credit a higher rate or rates of interest to amounts allocated or transferred to the Fixed Account. Interest rates will be set quarterly on the first day of each new calendar quarter. All premium payments and additional payments (including transfers from other Investment Divisions) allocated to the Fixed Account during a calendar quarter will receive the interest rate declared for that quarter until the end of that Policy Year. All other amounts in the Fixed Account are credited with the rate set for the quarter in which the last Policy Anniversary occurred, guaranteed for the current Policy Year. (b) Transfers to Investment Divisions You may transfer amounts from the Fixed Account to the Investment Divisions up to 30 days prior to the Annuity Commencement Date, subject to the following conditions. 1. The maximum amount you are allowed to transfer from the Fixed Account to the Investment Divisions during any Policy Year is 20% of the Fixed Accumulation Value at the beginning of the Policy Year. 2. The minimum amount that you may transfer from the Fixed Account to the Investment Divisions is the lesser of (i) $500 or (ii) 20% of the Fixed Accumulation value at the beginning of the Policy Year. Additionally, the remaining values in the Fixed Account must be at least $500. If, after a contemplated transfer, the remaining values in the Fixed Account would be less than $500, that amount must be included in the transfer, unless NYLIAC in its discretion determines otherwise. We determine amounts transferred from the Fixed Account on a first-in, first-out ("FIFO") basis, for purposes of determining the rate at which We credit interest on monies remaining in the Fixed Account. 3. For policies investing in Separate Accounts-I and II whose applications were signed prior to April 1, 1999, you may transfer an amount from the Fixed Account to the Investment Divisions if on any Policy 68 Anniversary: (i) the interest rate set for that amount falls more than 2.5 percentage points below the rate which was set for the immediately preceding Policy Year, or below the minimum rate specified on your Policy Data Page, and (ii) within 60 days after that Policy Anniversary, you make a request for such transfer. There is no minimum transfer requirement and no charges will be imposed under this condition. (c) Bail-Out (For Policies Investing in Separate Accounts-I and II) Surrender Charges may be applied to withdrawals from the Fixed Account. (See "SURRENDER CHARGES.") For policies applied for prior to April 1, 1999, in addition to the "Exceptions to Surrender Charges", subject to any applicable state insurance law or regulation, a surrender charge will not be imposed on any amount which is withdrawn from the Fixed Account if on any Policy Anniversary: (1) the interest rate set for that amount falls more than 2.5 percentage points below the rate which was set for the immediately preceding Policy Year, or below the minimum rate specified on your Policy Data Page, and (2) within 60 days after that Policy Anniversary, you withdraw part or all of that amount allocated to the Fixed Account. We reserve the right to set a separate yearly interest rate and period for which this rate is guaranteed for amounts transferred to the Fixed Account. The exception described above does not apply to policies applied for on or after April 1, 1999, in states where approved. You should check with your Registered Representative to determine whether this provision is still available in your state. Except as part of an existing request relating to the Dollar Cost Averaging or Interest Sweep options, you may not transfer money into the Fixed Account if you made a transfer out of the Fixed Account during the previous six-month period. You must make transfer requests either in writing in a form acceptable to Us and sent to VPSC at one of the addresses listed in Question 15 of this Prospectus or by telephone in accordance with established procedures or through our Virtual Service Center. Facsimile requests will not be accepted or processed. In addition, we will not accept e-mailed requests or e-mails of imaged, signed requests. We will deduct partial withdrawals and apply any surrender charges to the Fixed Account in the following sequence: first, from any value in the Fixed Account as of the last Policy Anniversary, then from any value in the Fixed Account attributed to additional premium payments or transfers from Investment Divisions in the same order in which you allocated such payments to the Fixed Account during the current Policy Year. See the policy itself for details and a description of the Fixed Account. FEDERAL TAX MATTERS INTRODUCTION THE FOLLOWING DISCUSSION IS GENERAL AND IS NOT INTENDED AS TAX ADVICE. The Qualified Policies are designed for use by individuals in retirement plans which are intended to qualify as plans qualified for special income tax treatment under Sections 219, 403, 408, 408A or 457 of the Code. The ultimate effect of federal income taxes on the Accumulation Value, on Income Payments and on the economic benefit to you, the Annuitant or the Beneficiary depends on the type of retirement plan for which the Qualified Policy is purchased, on the tax and employment status of the individual concerned and on NYLIAC's tax status. The following discussion assumes that Qualified Policies are used in retirement plans that qualify for the special federal income tax treatment described above. This discussion is not intended to address the tax consequences resulting from all of the situations in which a person may be entitled to or may receive a distribution under a policy. Any person concerned about these tax implications should consult a tax adviser before making a premium payment. This discussion is based upon NYLIAC's understanding of the present federal income tax laws as they are currently interpreted by the Internal Revenue Service. We cannot predict the likelihood of continuation of the present federal income tax laws or of the current interpretations by the Internal Revenue Service, which may change from time to time without notice. Any such change could have retroactive effects regardless of the date of enactment. Moreover, this discussion does not take into consideration any applicable state or other tax laws except with respect to the imposition of any state premium taxes. We suggest you consult with your tax adviser. TAXATION OF ANNUITIES IN GENERAL The following discussion assumes that the policies will qualify as annuity contracts for federal income tax purposes. The Statement of Additional Information discusses such qualifications. 69 Section 72 of the Code governs taxation of annuities in general. NYLIAC believes that an annuity policyowner generally is not taxed on increases in the value of a policy until distribution occurs either in the form of a lump sum received by withdrawing all or part of the Accumulation Value (i.e., surrenders or partial withdrawals), or as Income Payments under the Income Payment option elected. The exception to this rule is that generally, a policyowner of any deferred annuity policy who is not a natural person must include in income any increase in the excess of the policyowner's Accumulation Value over the policyowner's investment in the contract during the taxable year. However, there are some exceptions to this exception. You may wish to discuss these with your tax counsel. The taxable portion of a distribution (in the form of an annuity or lump sum payment), is generally taxed as ordinary income. For this purpose, the assignment, pledge, or agreement to assign or pledge any portion of the Accumulation Value generally will be treated as a distribution. In the case of a withdrawal or surrender distributed to a participant or Beneficiary under a Qualified Policy (other than a Qualified Policy used in a retirement plan that qualifies for special federal income tax treatment under Section 457 of the Code as to which there are special rules), a ratable portion of the amount received is taxable, generally based on the ratio of the investment in the contract to the total policy value. The "investment in the contract" generally equals the portion, if any, of any premium payments paid by or on behalf of an individual under a policy which is not excluded from the individual's gross income. For policies issued in connection with qualified plans, the "investment in the contract" can be zero. The law requires the use of special simplified methods to determine the taxable amount of payments that are based in whole or in part on the Annuitant's life and that are paid from TSAs. Generally, in the case of a withdrawal under a Non-Qualified Policy before the Annuity Commencement Date, amounts received are first treated as taxable income to the extent that the Accumulation Value immediately before the withdrawal exceeds the "investment in the contract" at that time. Any additional amount withdrawn is not taxable. On the other hand, upon a full surrender of a Non-Qualified Policy, if the "investment in the contract" exceeds the Accumulation Value (less any surrender charges), the loss is treated as an ordinary loss for federal income tax purposes. However, limitations may apply to the amount of the loss that may be deductible. It is the IRS's view that a loss on the surrender of a variable annuity contract is treated as a miscellaneous itemized deduction subject to the 2% of adjusted gross income limit. Although the tax consequences may vary depending on the Income Payment option elected under the policy, in general, only the portion of the Income Payment that represents the amount by which the Accumulation Value exceeds the "investment in the contract" will be taxed. After the investment in the Policy is recovered, the full amount of any additional Income Payments is taxable. For fixed Income Payments, in general, there is no tax on the portion of each payment which represents the same ratio that the "investment in the contract" bears to the total expected value of the Income Payments for the term of the payments. However, the remainder of each Income Payment is taxable until the recovery of the investment in the contract, and thereafter the full amount of each annuity payment is taxable. If death occurs before full recovery of the investment in the contract, the unrecovered amount may be deducted on the Annuitant's final tax return. In the case of a distribution, a penalty tax equal to 10% of the amount treated as taxable income may be imposed. The penalty tax is not imposed in certain circumstances, including, generally, distributions: (1) made on or after the date on which the policyowner attains age 59 1/2, (2) made as a result of the policyowner's (or, where the policyowner is not an individual, the Annuitant's) death, (3) made as a result of the policyowner's disability, (4) which are part of a series of substantially equal periodic payments (at least annually) made for the life (or life expectancy) of the policyowner or the joint lives (or joint life expectancies) of the policyowner and his or her designed beneficiary (5) received distributions from an Inherited IRA. Other tax penalties may apply to certain distributions pursuant to a Qualified Policy. All non-qualified, deferred annuity contracts issued by NYLIAC (or its affiliates), to the same policyowner during any calendar year are to be treated as one annuity contract for purposes of determining the amount includible in an individual's gross income. In addition, there may be other situations in which the Treasury Department may conclude (under its authority to issue regulations) that it would be appropriate to aggregate two or more annuity contracts purchased by the same policyowner. Accordingly, a policyowner should consult a tax adviser before purchasing more than one policy or other annuity contract. A transfer of ownership of a policy, or designation of an Annuitant or other Beneficiary who is not also the policyowner, may result in certain income or gift tax consequences to the policyowner. A policyowner contemplating any transfer or assignment of a policy should consult a tax adviser with respect to the potential tax effects of such a transaction. 70 QUALIFIED POLICIES Qualified Policies are designed for use with retirement plans that qualify for special federal income tax treatment under Sections 219, 403(b), 408, 408A and 457 of the Code. The tax rules applicable to participants and beneficiaries in these plans vary according to the type of plan and the terms and conditions of the plan itself. Special favorable tax treatment may be available for certain types of contributions and distributions (including special rules for certain lump sum distributions to individuals who attained the age of 50 by January 1, 1986). Adverse tax consequences may result from contributions in excess of specified limits, distributions prior to age 59 1/2 (subject to certain exceptions), distributions that do not conform to specified minimum distribution rules and in certain other circumstances. Therefore, this discussion only provides general information about the use of Qualified Policies with the plans described below. Policyowners and participants under these plans, as well as Annuitants and Beneficiaries are cautioned that the rights of any person to any benefits under the plans may be subject to the terms and conditions of the plans themselves, regardless of the terms and conditions of the policy issued in connection with the plan. Purchasers of Qualified Policies should seek legal and tax advice regarding the suitability of the policy. (a) 403(b) Plans. Under Section 403(b) of the Code, payments made by public school systems and certain tax exempt organizations to purchase annuity policies for their employees are excludible from the gross income of the employee, subject to certain limitations. However, such payments may be subject to FICA ("Social Security") taxes. Important Information Regarding Final Code Section 403(b) Regulations On July 26, 2007, the Department of the Treasury published final Code section 403(b) regulations that are largely effective on January 1, 2009. These comprehensive regulations include several new rules and requirements, such as a requirement that employers maintain their Code section 403(b) plans pursuant to a written plan. The final regulations, subsequent IRS guidance, and the terms of the written plan and/or the written information sharing agreement between the employer and NYLIAC may impose new restrictions on both new and existing Code section 403(b) TSA contracts, including restrictions on the availability of loans, distributions, transfers and exchanges, regardless of when a contract was purchased. Prior to the effective date of the final regulations, IRS guidance applicable to tax-free transfers and exchanges of Code section 403(b) TSA contracts or custodial accounts became effective September 25, 2007, replacing existing rules under IRS Revenue Ruling 90-24 previously applicable to such transfers and exchanges (a "90-24 transfer"). Under this guidance, transfers and exchanges (both referred to below as "transfers") are available only to the extent permitted under the employer's written Code section 403(b) plan. Transfers occurring after September 24, 2007 that do not comply with this guidance can result in the applicable contract becoming taxable on January 1, 2009, or the date of the transfer, whichever is later. If you make a transfer to a contract or custodial account that is not part of the employer's Code section 403(b) plan (other than a transfer to a different plan), and the contract provider and employer fail to enter into an information sharing agreement by January 1, 2009, the transfer would be considered a "failed" transfer, resulting in the applicable contract becoming subject to tax. Additional guidance issued by the IRS generally permits a failed transfer to be corrected no later than June 30, 2009, by re-transferring to a contract or custodial account that is part of the employer's Code section 403(b) plan and/or that is subject to an information-sharing agreement with the employer. In general, certain contracts originally established by a 90-24 transfer prior to September 25, 2007, are exempt (or grandfathered) from some of the requirements of the final regulations; provided that no salary reduction or other contributions have ever been made to such contracts, and that no additional transfers are made to such contracts on or after September 25, 2007. Further, contracts that are not grandfathered are generally required to be part of, and subject to the requirements of, an employer's written Code section 403(b) plan no later than by January 1, 2009. The new rules in the final regulations generally do not affect a participant's ability to transfer some or all of a Code section 403(b) TSA contract to a state-defined benefit plan to purchase service credits, where such a transfer is otherwise consistent with applicable rules and requirements and with the terms of the employer's plan. You should discuss with your tax advisor the final Code section 403(b) regulations and other applicable IRS guidance in order to determine the impact they may have on any existing Code section 403(b) TSA 71 contracts that you may own and/or on any Code section 403(b) TSA contract that you may consider purchasing. (b) Individual Retirement Annuities. Sections 219 and 408 of the Code permit individuals or their employers to contribute to an individual retirement program known as an "Individual Retirement Annuity" or "IRA", including an employer-sponsored Simplified Employee Pension or "SEP". Individual Retirement Annuities are subject to limitations on the amount which may be contributed and deducted and the time when distributions may commence. In addition, distributions from certain other types of qualified plans may be placed into Individual Retirement Annuities on a tax-deferred basis. (c) Roth Individual Retirement Annuities. Section 408A of the Code permits individuals with incomes below a certain level to contribute to an individual retirement program known as a "Roth Individual Retirement Annuity" or "Roth IRA." Roth IRAs are subject to limitations on the amount that may be contributed. Contributions to Roth IRAs are not deductible, but distributions from Roth IRAs that meet certain requirements are not included in gross income. Certain individuals are eligible to convert their existing non-Roth IRAs into Roth IRAs. Beginning in 2008, a direct rollover may also be made from an eligible retirement plan other than a non-Roth IRA (such as a qualified retirement plan, section 403(b) tax sheltered annuity, or eligible governmental section 457 plan) to a Roth IRA. Such conversions and rollovers will be subject to income tax at the time of conversion or rollover. (d) Deferred Compensation Plans. Section 457 of the Code, while not actually providing for a qualified plan as that term is normally used, provides for certain deferred compensation plans with respect to service for state governments, local governments, political subdivisions, agencies, instrumentalities and certain affiliates of such entities and tax exempt organizations which enjoy special treatment. The policies can be used with such plans. Under such plans, a participant may specify the form of investment in which his or her participation will be made. Such investments are generally owned by, and are subject to, the claims of the general creditors of the sponsoring employer, except that Section 457 plans of state and local government must be held and used for the exclusive benefit of participants and beneficiaries in a trust or annuity contract. (e) Simple IRAs. SIMPLE IRAs permit certain small employers to establish SIMPLE IRA plans as provided by Section 408(p) of the Code, under which employees may elect to defer to a SIMPLE IRA a percentage of compensation up to $10,500 for 2008 (and thereafter, adjusted for cost-of- living increases in accordance with the Code). Employees who attain age 50 or over by the end of the relevant calendar year may also elect to make an additional catch-up contribution. Such additional contribution may be up to $2,500 for 2008 (and thereafter adjusted for cost-of-living increases in accordance with the Code). The sponsoring employer is generally required to make matching or non-elective contributions on behalf of the employees. Distributions from SIMPLE IRAs are subject to the same restrictions that apply to IRA distributions and are taxed as ordinary income. Subject to certain exceptions, distributions prior to age 59 1/2 are subject to a 10% penalty tax, which is increased to 25% if the distribution occurs within the first two years after the commencement of the employee's participation in the SIMPLE IRA plan. All references in this Prospectus to the 10% penalty tax should be read to include this limited 25% penalty tax if your Qualified Policy is used as a SIMPLE IRA. The Qualified Policies are subject to the required minimum distribution ("RMD") rules under Code section 401(a)(9) and the regulations issued thereunder. Under these rules, generally, distributions under your Qualified Policy must begin no later than the beginning date required by the Internal Revenue Service ("IRS"). The beginning date is determined by the type of Qualified Policy that you own. For each calendar year that an RMD is not timely made, a 50% excise tax is imposed on the amount that should have been distributed, but was not. Unless the distributions are made in the form of an annuity that complies with Code section 401(a)(9) and the regulations issued thereunder, the minimum amount required to be distributed for each calendar year is generally determined by dividing the value of the Qualified Policy as of the end of the prior calendar year by the applicable distribution period (determined under IRS tables). Beginning in 2006, regulations under Code section 401(a)(9) provide a new method for calculating the amount of RMDs from Qualified Policies. Under these regulations, during the accumulation phase of the Qualified Policy, the actuarial present value of certain additional benefits provided under the policy (such as guaranteed death benefits) must be taken into account in calculating the value of the Qualified Policy for purposes of determining the annual RMD for the Qualified Policy. As a result, under these regulations, it is possible that, after taking account of the value of such benefits, there may not be sufficient Accumulation Value to satisfy the applicable RMD requirement. This generally will depend on the investment performance of your policy. You may need to satisfy such RMD from other tax-qualified plans that you own. You should consult with your tax advisor regarding these 72 requirements and the implications of purchasing any riders or other benefits in connection with your Qualified Policy. TAXATION OF DEATH BENEFITS The tax treatment of amounts distributed from your contract upon the death of the policyowner or annuitant depends on whether the policyowner or annuitant dies before or after the Annuity Commencement Date. If death occurs prior to the Annuity Commencement Date, and the Beneficiary receives payments under an annuity payout option, the benefits are generally taxed in the manner described above for annuity payouts. If the benefits are received in a lump sum, they are taxed to the extent they exceed the remaining investment in the contract. If death occurs after the Annuity Commencement Date, amounts received by the Beneficiary are not taxed until they exceed the remaining investment in the contract. DISTRIBUTION AND COMPENSATION ARRANGEMENTS NYLIFE Distributors LLC ("NYLIFE Distributors"), the underwriter and distributor of the policies, is registered with the SEC and the Financial Industry Regulatory Authority, Inc. (FINRA) as a Broker-Dealer. The firm is an indirect wholly-owned subsidiary of New York Life, and an affiliate of NYLIAC. Its principal business address is 169 Lackawanna Avenue, Parsippany, New Jersey 07054. The policies are sold by Registered Representatives of NYLIFE Securities, LLC ("NYLIFE Securities"), a Broker-Dealer that is an affiliate of NYLIFE Distributors. Your Registered Representative is also a licensed insurance agent with New York Life. He or she is qualified to offer many forms of life insurance, annuities, and other investment products. In certain circumstances, NYLIFE Securities Registered Representatives can sell both products manufactured and issued by New York Life or its affiliates and products provided by other companies. Your Registered Representative will receive compensation for selling you this policy or any other investment product. The amount of compensation received by your Registered Representative will vary depending on the policy that he or she sells and on sales production goals. The maximum commission paid to Broker-Dealers who have entered into dealer agreements with NYLIFE Distributors is 6.25% of all premiums received. The total commissions paid for the New York Life Flexible Premium Variable Annuity policies were as follows: FOR POLICIES INVESTING IN SEPARATE ACCOUNTS-I AND II: For the years ended December 31, 2007, 2006 and 2005, NYLIAC paid commissions of $3,054,576, $3,029,975 and $3,099,250, respectively. NYLIFE Distributors did not retain any of these commissions. The policies are sold and premium payments are accepted on a continuous basis. FOR POLICIES INVESTING IN SEPARATE ACCOUNT-III: For the years ended December 31, 2007, 2006 and 2005, NYLIAC paid commissions of $9,882,476, $8,967,068 and $8,244,533, respectively. NYLIFE Distributors did not retain any of these commissions. The policies are sold and premium payments are accepted on a continuous basis. New York Life also has other compensation programs where Registered Representatives, managers, and employees involved in the sales process receive additional compensation related to the sale of products manufactured and issued by New York Life or its affiliates. NYLIFE Securities Registered Representatives who are members of the General Office management team receive compensation based on a number of incentive programs designed to compensate for education, supervision, training, and recruiting of agents, and sales. NYLIFE Securities Registered Representatives can qualify to attend New York Life-sponsored educational, training, and development conferences based on the sales they make of life insurance, annuities, and investment products during a particular twelve-month period. In addition, New York Life sponsors recognition programs, qualification for which depends on the sale of products manufactured and issued by New York Life or its affiliates. VOTING RIGHTS The Funds are not required to and typically do not hold routine annual stockholder meetings. Special stockholder meetings will be called when necessary. To the extent required by law, NYLIAC will vote the Eligible Portfolio shares held in the Investment Divisions at special stockholder meetings of the Funds in accordance with 73 instructions We receive from persons having voting interests in the corresponding Investment Division. If, however, the federal securities laws are amended, or if NYLIAC's present interpretation should change, and as a result, NYLIAC determines that it is allowed to vote the Eligible Portfolio shares in its own right, We may elect to do so. Prior to the Annuity Commencement Date, you hold a voting interest in each Investment Division to which you have money allocated. We will determine the number of votes which are available to you by dividing the Accumulation Value attributable to an Investment Division by the net asset value per share of the applicable Eligible Portfolios. We will calculate the number of votes which are available to you separately for each Investment Division. We will determine that number by applying your percentage interest, if any, in a particular Investment Division to the total number of votes attributable to the Investment Division. We will determine the number of votes of the Eligible Portfolio which are available as of the date established by the Portfolio of the relevant Fund. Voting instructions will be solicited by written communication prior to such meeting in accordance with procedures established by the relevant Fund. If We do not receive timely instructions, We will vote those shares in proportion to the voting instructions which are received with respect to all policies participating in that Investment Division. As a result, a small number of policyholders may control the outcome of the vote. We will apply voting instructions to abstain on any item to be voted upon on a pro rata basis to reduce the votes eligible to be cast. Each person having a voting interest in an Investment Division will receive proxy material, reports and other materials relating to the appropriate Eligible Portfolio. 74 TABLE OF CONTENTS FOR THE STATEMENT OF ADDITIONAL INFORMATION The SAI contains more details concerning the subjects discussed in this Prospectus. The following is the Table of Contents for the SAI:
PAGE ---- THE POLICIES................................................................... 2 Valuation of Accumulation Units.............................................. 2 ANNUITY PAYMENTS............................................................... 2 GENERAL MATTERS................................................................ 2 FEDERAL TAX MATTERS............................................................ 3 Taxation of New York Life Insurance and Annuity Corporation.................. 3 Tax Status of the Policies................................................... 3 SAFEKEEPING OF SEPARATE ACCOUNT ASSETS......................................... 4 STATE REGULATION............................................................... 4 RECORDS AND REPORTS............................................................ 4 LEGAL PROCEEDINGS.............................................................. 5 FINANCIAL STATEMENTS........................................................... 5 OTHER INFORMATION.............................................................. 5 FINANCIAL STATEMENTS........................................................... F-1
How to obtain a New York Life Flexible Premium Variable Annuity Statement of Additional Information. The New York Life Flexible Premium Variable Annuity Statement of Additional Information is posted on Our website, www.newyorklife.com. For a paper copy of the Statement of Additional Information, call (800) 598-2019 or send this request form to: NYLIAC Variable Products Service Center Madison Square Station P.O. Box 922 New York, NY 10159 -------------------------------------------------------------------------------- Please send me a New York Life Flexible Premium Variable Annuity Statement of Additional Information dated May 1, 2008: --------------------------------------------------------------------------- Name --------------------------------------------------------------------------- Address --------------------------------------------------------------------------- City State Zip 75 (THIS PAGE INTENTIONALLY LEFT BLANK) STATEMENT OF ADDITIONAL INFORMATION MAY 1, 2008 FOR NEW YORK LIFE FLEXIBLE PREMIUM VARIABLE ANNUITY (FORMERLY NEW YORK LIFE LIFESTAGES(R) FLEXIBLE PREMIUM VARIABLE ANNUITY) FROM NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION INVESTING IN NYLIAC VARIABLE ANNUITY SEPARATE ACCOUNT-I NYLIAC VARIABLE ANNUITY SEPARATE ACCOUNT-II NYLIAC VARIABLE ANNUITY SEPARATE ACCOUNT-III This Statement of Additional Information ("SAI") is not a prospectus. The SAI contains information that expands upon subjects discussed in the current New York Life Flexible Premium Variable Annuity Prospectus. You should read the SAI in conjunction with the current New York Life Flexible Premium Variable Annuity Prospectus dated May 1, 2008. You may obtain a copy of the Prospectus by calling New York Life Insurance and Annuity Corporation ("NYLIAC") at (800) 598-2019 or writing to NYLIAC at Madison Square Station, P.O. Box 922, New York, New York 10159. Terms used but not defined in the SAI have the same meaning as in the current New York Life Flexible Premium Variable Annuity Prospectus. TABLE OF CONTENTS*
PAGE ---- THE POLICIES.................................................................... 2 Valuation of Accumulation Units............................................ 2 ANNUITY PAYMENTS................................................................ 2 GENERAL MATTERS................................................................. 2 FEDERAL TAX MATTERS............................................................. 3 Taxation of New York Life Insurance and Annuity Corporation................ 3 Tax Status of the Policies................................................. 3 SAFEKEEPING OF SEPARATE ACCOUNT ASSETS.......................................... 4 STATE REGULATION................................................................ 4 RECORDS AND REPORTS............................................................. 4 LEGAL PROCEEDINGS............................................................... 5 FINANCIAL STATEMENTS............................................................ 5 OTHER INFORMATION............................................................... 5 FINANCIAL STATEMENTS............................................................ F-1
THE POLICIES The following provides additional information about the policies and supplements the description in the Prospectus. VALUATION OF ACCUMULATION UNITS Accumulation Units are valued separately for each Investment Division of the Separate Account. The method used for valuing Accumulation Units in each Investment Division is the same. We arbitrarily set the value of each Accumulation Unit as of the date operations began for the Investment Division. Thereafter, the value of an Accumulation Unit of an Investment Division for any Business Day equals the value of an Accumulation Unit in that Investment Division as of the immediately preceding Business Day multiplied by the "Net Investment Factor" for that Investment Division for the current Business Day. We determine the Net Investment Factor for each Investment Division for any period from the close of the preceding Business Day to the close of the current Business Day (the "Valuation Period") is determined by the following formula: (a/b)-c Where: a = the result of (1) the net asset value per share of the Eligible Portfolio shares held in the Investment Division determined at the end of the current Valuation Period, plus (2) the per share amount of any dividend or capital gain distribution made by the Eligible Portfolio for shares held in the Investment Division if the "ex-dividend" date occurs during the current Valuation Period; b = the net asset value per share of the Eligible Portfolio shares held in the Investment Division determined as of the end of the immediately preceding Valuation Period; and c = a factor representing the charges deducted from the applicable Investment Division on a daily basis. Such factor is equal to 1.40% (annualized) for policies investing in Separate Account-III (1.30% (annualized) for policies investing in Separate Accounts-I and II) of the daily average Variable Accumulation Value. (See "Other Charges" in the Prospectus.) The Net Investment Factor may be greater or less than one. Therefore, the value of an Accumulation Unit in an Investment Division may increase or decrease from Valuation Period to Valuation Period. ANNUITY PAYMENTS We will make equal annuity payments each month under the Life Income Payment Option during the lifetime of the Annuitant. Once payments begin, they do not change and are guaranteed for 10 years even if the Annuitant dies sooner. If the Annuitant dies before all guaranteed payments have been made, the rest will be made to the Beneficiary. We may require that the payee submit proof of the Annuitant's survivorship as a condition for future payments beyond the 10- year guaranteed payment period. On the Annuity Commencement Date, We will determine the Accumulation Value of your policy and use that value to calculate the amount of each annuity payment. We determine each annuity payment by applying the Accumulation Value, less any premium taxes, to the annuity factors specified in the annuity table set forth in the policy. Those factors are based on a set amount per $1,000 of proceeds applied. The appropriate rate must be determined by the gender (except where, as in the case of certain Qualified Policies and other employer-sponsored retirement plans, such classification is not permitted), date of application and age of the Annuitant. The dollars applied are then divided by 1,000 and the result multiplied by the appropriate annuity factor from the table to compute the amount of the each monthly annuity payment. GENERAL MATTERS NON-PARTICIPATING. The policies are non-participating. Dividends are not paid. MISSTATEMENT OF AGE OR GENDER. If the Annuitant's stated age and/or gender in the policy are incorrect, NYLIAC will change the benefits payable to those which the premium payments would have purchased for the correct age and gender. Gender is not a factor when annuity benefits are based on unisex annuity payment rate tables. (See "Income Payments--Election of Income Payment Options" in the Prospectus.) If We made payments based on incorrect age or gender, We will increase or reduce a later payment or payments to adjust for the error. 2 Any adjustment will include interest, at 3.5% per year, from the date of the wrong payment to the date the adjustment is made. ASSIGNMENTS. If permitted by the plan or by law for the plan indicated in the application for the Policy, you may assign your interest in a Non-Qualified Policy or any interest in it prior to the Annuity Commencement Date and during the Annuitant's or Owner's lifetime. In order to effect an assignment of all or any part of your interest in a Non-Qualified Policy prior to the Annuity Commencement Date and during the Annuitants's or Owner's lifetime, you must send a duly executed instrument of assignment to VPSC at one of the addresses listed in Question 15 of the Prospectus. NYLIAC will not be deemed to know of an assignment unless it receives a copy of a duly executed instrument evidencing such assignment. Further, NYLIAC assumes no responsibility for the validity of any assignment. (See "Federal Tax Matters--Taxation of Annuities in General" at page 44 of the Prospectus.) MODIFICATION. NYLIAC may not modify the policy without your consent except to make the Policy meet the requirements of the Investment Company Act of 1940, or to make the policy comply with any changes in the Internal Revenue Code or as required by the Code or by any other applicable law in order to continue treatment of the policy as an annuity. INCONTESTABILITY. We rely on statements made in the application. They are representations, not warranties. We will not contest the policy after it has been in force during the lifetime of the Annuitant for two years from the Policy Date. FEDERAL TAX MATTERS TAXATION OF NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION NYLIAC is taxed as a life insurance company. Because the Separate Account is not an entity separate from NYLIAC, and their operations form a part of NYLIAC, they will not be taxed separately as "regulated investment companies" under Subchapter M of the Code. As a result, NYLIAC takes into account applicable tax attributes of the assets of the Separate Account on its corporate income tax return, including corporate dividends received deductions and foreign tax credits that may be produced by assets of the Separate Account. Investment income and realized net capital gains on the assets of the Separate Account are reinvested and are taken into account in determining the Accumulation Value. As a result, such investment income and realized net capital gains are automatically retained as part of the reserves under the policy. Under existing federal income tax law, NYLIAC believes that Separate Account investment income and realized net capital gains should not be taxed to the extent that such income and gains are retained as part of the tax deductible reserves under the policy. TAX STATUS OF THE POLICIES Section 817(h) of the Code requires that the investments of the Separate Account must be "adequately diversified" in accordance with Treasury regulations in order for the policies to qualify as annuity contracts under Section 72 of the Code. The Separate Account intends to comply with the diversification requirements prescribed by the Treasury under Treasury Regulation Section 1.817- 5. To comply with regulations under Section 817(h) of the Code, the Separate Account is required to diversify its investments, so that on the last day of each quarter of a calendar year, no more than 55% of the value of its assets is represented by any one investment, no more than 70% is represented by any two investments, no more than 80% is represented by any three investments, and no more than 90% is represented by any four investments. For this purpose, securities of a single issuer are treated as one investment and each U.S. Government agency or instrumentality is treated as a separate issuer. Any security issued, guaranteed, or insured (to the extent so guaranteed or insured) by the U.S. Government or an agency or instrumentality of the U.S. Government is treated as a security issued by the U.S. Government or its agency or instrumentality, whichever is applicable. Although the Treasury Department has issued regulations on the diversification requirements, such regulations do not provide guidance concerning the extent to which policyowners may direct their investments to particular subaccounts of a separate account, or the permitted number of such subaccounts. It is unclear whether additional guidance in this regard will be issued in the future. It is possible that if such guidance is issued, the policy may need to be modified to comply with such additional guidance. For these reasons, NYLIAC reserves the right to modify the policy as necessary to attempt to prevent the policyowner from being considered the owner of the assets of the Separate Account or otherwise to qualify the policy for favorable tax treatment. 3 The Code also requires that non-qualified annuity contracts contain specific provisions for distribution of the policy proceeds upon the death of any policyowner. In order to be treated as an annuity contract for federal income tax purposes, the Code requires that such policies provide that (a) if any policyowner dies on or after the Annuity Commencement Date and before the entire interest in the policy has been distributed, the remaining portion must be distributed at least as rapidly as under the method in effect on the policyowner's death; and (b) if any policyowner dies before the Annuity Commencement Date, the entire interest in the policy must generally be distributed within 5 years after the policyowner's date of death. These requirements will be considered satisfied if the entire interest of the policy is used to purchase an immediate annuity under which payments will begin within one year of the policyowner's death and will be made for the life of the Beneficiary or for a period not extending beyond the life expectancy of the Beneficiary. The policyowner's Beneficiary is the person to whom ownership of the policy passes by reason of death. If the Beneficiary is the policyowner's surviving spouse, the policy may be continued with the surviving spouse as the new policyowner. If the policyowner is not a natural person, these "death of Owner" rules apply when the primary Annuitant is changed. Non-Qualified Policies contain provisions intended to comply with these requirements of the Code. No regulations interpreting these requirements of the Code have yet been issued and thus no assurance can be given that the provisions contained in these policies satisfy all such Code requirements. The provisions contained in these policies will be reviewed and modified if necessary to assure that they comply with the Code requirements when clarified by regulation or otherwise. Withholding of federal income taxes on the taxable portion of all distributions may be required unless the recipient elects not to have any such amounts withheld and properly notifies NYLIAC of that election. Different rules may apply to United States citizens or expatriates living abroad. In addition, some states have enacted legislation requiring withholding. Even if a recipient elects no withholding, special withholding rules may require NYLIAC to disregard the recipient's election if the recipient fails to supply NYLIAC with a "TIN" or taxpayer identification number (social security number for individuals) or if the Internal Revenue Service notifies NYLIAC that the TIN provided by the recipient is incorrect. SAFEKEEPING OF SEPARATE ACCOUNT ASSETS NYLIAC holds title to the assets of the Separate Account. The assets are kept physically segregated and held separate and apart from NYLIAC's general corporate assets. Records are maintained of all purchases and redemptions of Eligible Portfolio shares held by each of the Investment Divisions. STATE REGULATION NYLIAC is a stock life insurance company organized under the laws of Delaware, and is subject to regulation by the Delaware State Insurance Department. We file an annual statement with the Delaware Commissioner of Insurance on or before March 1 of each year covering the operations and reporting on the financial condition of NYLIAC as of December 31 of the preceding calendar year. Periodically, the Delaware Commissioner of Insurance examines the financial condition of NYLIAC, including the liabilities and reserves of the Separate Accounts. In addition, NYLIAC is subject to the insurance laws and regulations of all the states where it is licensed to operate. The availability of certain policy rights and provisions depends on state approval and/or filing and review processes. Where required by state law or regulation, the policies will be modified accordingly. RECORDS AND REPORTS NYLIAC maintains all records and accounts relating to the Separate Account. As presently required by the federal securities laws, NYLIAC will mail to you at your last known address of record, at least semi-annually after the first Policy Year, reports containing information required under the federal securities laws or by any other applicable law or regulation. IT IS IMPORTANT THAT YOUR CONFIRMATION AND QUARTERLY STATEMENTS BE REVIEWED IMMEDIATELY TO ENSURE THAT THERE ARE NO ERRORS. IN ORDER TO CORRECT AN ERROR, YOU MUST CALL IT TO OUR ATTENTION WITHIN 15 DAYS OF THE DATE OF THE STATEMENT. IT IS IMPORTANT THAT YOU INFORM NYLIAC OF AN ADDRESS CHANGE SO THAT YOU CAN RECEIVE THESE POLICY STATEMENTS (SEE "HOW DO I CONTACT NYLIAC BY TELEPHONE OR BY THE INTERNET?" IN THE PROSPECTUS). IN THE EVENT YOUR STATEMENT IS RETURNED FROM THE US POSTAL SERVICE AS UNDELIVERABLE, WE RESERVE THE RIGHT TO SUSPEND MAILING FUTURE CORRESPONDENCE AND ALSO SUSPEND CURRENT TRANSACTION PROCESSING UNTIL AN ACCURATE ADDRESS IS OBTAINED. ADDITIONALLY, NO NEW SERVICE REQUESTS CAN BE PROCESSED UNTIL A VALID CURRENT ADDRESS IS PROVIDED. 4 LEGAL PROCEEDINGS NYLIAC is a defendant in lawsuits arising from its agency sales force, insurance (including variable contracts registered under the federal securities law), and/or other operations. Most of these actions seek substantial or unspecified compensatory and punitive damages. NYLIAC is also from time to time involved in various governmental, administrative, and investigative proceedings and inquiries. Notwithstanding the uncertain nature of litigation and regulatory inquires, the outcome of which cannot be predicted, NYLIAC believes that, after provisions made in the financial statements, the ultimate liability that could result from litigation and proceedings would not have a material adverse effect on NYLIAC's financial position; however, it is possible that settlements or adverse determinations in one or more actions or other proceedings in the future could have a material adverse effect on NYLIAC's operating results for a given year. FINANCIAL STATEMENTS The consolidated balance sheet of NYLIAC as of December 31, 2007 and 2006, and the consolidated statements of income, of stockholder's equity and of cash flows for each of the three years in the period ended December 31, 2007 included in this SAI have been so included in reliance on the report of PricewaterhouseCoopers LLP, independent registered public accounting firm, given on the authority of said firm as experts in auditing and accounting. The Separate Account statement of assets and liabilities as of December 31, 2007 and the statements of operations, of changes in net assets and the financial highlights for each of the periods indicated in the financial statements have been so included in reliance on the report of PricewaterhouseCoopers LLP, independent registered public accounting firm, given on the authority of said firm as experts in auditing and accounting. OTHER INFORMATION NYLIAC filed a registration statement with the Securities and Exchange Commission, under the Securities Act of 1933 as amended, with respect to the policies discussed in this Statement of Additional Information. We have not included all of the information set forth in the registration statement, amendments and exhibits to the registration statement in this Statement of Additional Information. We intend the statements contained in this Statement of Additional Information concerning the content of the policies and other legal instruments to be summaries. For a complete statement of the terms of these documents, you should refer to the instruments filed with the Securities and Exchange Commission. The omitted information may be obtained at the principal offices of the Securities and Exchange Commission in Washington, D.C., upon payment of prescribed fees, or through the Commission's website at www.sec.gov. 5 Supplement dated May 1, 2008 to the Prospectuses dated May 1, 2008 for NEW YORK LIFE ESSENTIALS VARIABLE ANNUITY NEW YORK LIFE FLEXIBLE PREMIUM VARIABLE ANNUITY NEW YORK LIFE SELECT VARIABLE ANNUITY NEW YORK LIFE VARIABLE ANNUITY NEW YORK LIFE PREMIUM PLUS VARIABLE ANNUITY NEW YORK LIFE PREMIUM PLUS II VARIABLE ANNUITY AND NEW YORK LIFE ELITE VARIABLE ANNUITY NEW YORK LIFE PREMIUM PLUS ELITE VARIABLE ANNUITY NEW YORK LIFE ACCESS VARIABLE ANNUITY INVESTING IN NYLIAC VARIABLE ANNUITY SEPARATE ACCOUNT-III; AND NYLIAC VARIABLE ANNUITY SEPARATE ACCOUNT-IV This supplement amends the Prospectus for the New York Life Essentials Variable Annuity, the New York Life Flexible Premium Variable Annuity, the New York Life Select Variable Annuity, the New York Life Variable Annuity, New York Life Elite Variable Annuity, the New York Life Premium Plus Variable Annuity, the New York Life Premium Plus II Variable Annuity, the New York Life Premium Plus Elite Variable Annuity and the New York Life Access Variable Annuity policies ("policies"). You should read this information carefully and retain this supplement for future reference together with the prospectus(es). All capitalized terms have the same meaning as those included in the prospectuses. This supplement only applies to Non-Qualified Policies issued to fund a Pension Plan. The purpose of this supplement is to modify the prospectuses to disclose the terms under which the policies will be issued to fund a Pension Plan qualified under Section 401(a) of the Internal Revenue Code of 1986 as amended (Code). The main differences between the policies described in the May 1, 2008 prospectuses and policies issued to fund a Pension Plan, are that Non-Qualified Policies issued to fund a Pension Plan: (1) will have higher minimum initial and additional premium payments, (2) will not include the Unemployment Benefit Rider, and (3) cannot add the Enhanced Spousal Continuance Rider. Keeping this in mind, please note that the prospectuses for Non-Qualified Policies issued to fund a Pension Plan are modified as follows: A. DEFINITIONS 1. Replace the definition of "Non-Qualified Policies" with the following: Non-Qualified Policies: Policies that are not available for use by individuals in connection with employee retirement plans that are intended to qualify for special federal income tax treatment under Sections 403(b), 408, 408A and 457 of the Code. Non-Qualified Policies include policies issued to other retirement plans or arrangements, including Pension Plans qualifying under Section 401(a) of the Code. 2. Replace the definition of "Qualified Policies" with the following: Qualified Policies: Policies for use by individuals under employee retirement plans that are intended to qualify for special federal income tax treatment under Sections 403(b), 408, 408A and 457 of the Code. Qualified Policies do not include policies issued to any other retirement plan or arrangement, including Pension Plans qualifying under Section 401(a) of the Code. 3. Add the following definition of "Pension Plan": Pension Plan: A retirement plan that is qualified under Section 401(a) of the Code. B. QUESTIONS AND ANSWERS 1. For New York Life Variable Annuity, New York Life Premium Plus, New York Life Premium Plus II, New York Life Essentials, New York Life Select, New York Life Elite, New York Life Premium Plus Elite and New York Life Access policies, delete the first two sentences to "What are the minimum initial and maximum additional premium payments?" and replace them with the following: (a) for New York Life Variable Annuity policies: Unless We permit otherwise, the minimum initial premium for Non- Qualified Policies issued to fund a Pension Plan is $10,000. The minimum additional premium payment for Non-Qualified Policies issued to fund a Pension Plan is $10,000 or such lower amount as We may permit at any time. (b) for New York Life Premium Plus and New York Life Premium Plus II policies: Unless We permit otherwise, the minimum initial premium for Non- Qualified Policies issued to fund a Pension Plan is $10,000. The minimum additional premium payment for Non-Qualified Policies issued to fund a Pension Plan is $10,000 or such lower amount as We may permit at any time. (c) for New York Life Essentials policies: Unless We permit otherwise, the minimum initial premium for Non- Qualified Policies issued to fund a Pension Plan is $10,000. The minimum additional premium payment for Non-Qualified Policies issued to fund a Pension Plan is $10,000. (d) for New York Life Select policies: Unless We permit otherwise, the minimum initial premium payment is $25,000. The minimum additional premium payment for Non-Qualified Policies issued to fund a Pension Plan is $10,000. (e) for New York Life Elite policies: Unless We permit otherwise, the minimum initial premium for Non- Qualified Policies issued to fund a Pension Plan is $10,000. The minimum additional premium payment for Non-Qualified Policies issued to fund a Pension Plan is $10,000. (f) for New York Life Premium Plus Elite policies: Unless We permit otherwise, the minimum initial premium for Non- Qualified Policies issued to fund a Pension Plan is $10,000. The minimum additional premium payment is $10,000 or such lower amount as We may permit at any time. (g) for New York Life Access policies: Unless We permit otherwise, the minimum initial premium for Non- Qualified Policies issued to fund a Pension Plan is $10,000. The minimum additional premium payment is $1,000 or such lower amount as We may permit at any time. 2. For New York Life Flexible Premium policies, delete the first two sentences of the third full paragraph to the answer to "What are the minimum initial and maximum additional premium payments?" and replace them with the following: Unless We permit otherwise, the minimum initial premium for Non- Qualified Policies issued to fund a Pension Plan is $10,000. The minimum additional payment is $50 or such lower amount as We may permit at any time. C. THE POLICIES -- Qualified and Non-Qualified Policies 1. Under the first paragraph of this section, delete the fourth sentence and replace the fifth sentence with the following: You may purchase a Qualified Policy for use with any one of the retirement plans listed below. 2. Under the next full paragraph that begins "If you are considering a Qualified Policy. . .," revise the first sentence to read: If you are considering a Qualified Policy or a Non-Qualified Policy issued to fund a Pension Plan, you should be aware that this annuity will fund a retirement plan that already provides for tax deferral under the Code. D. THE POLICIES -- Policy Application and Premium Payments 1. For New York Life Variable Annuity, New York Life Premium Plus, New York Life Premium Plus II, New York Life Essentials, New York Life Select, New York Life Elite, New York Life Premium Plus Elite and New York Life Access Variable Annuity policies, under the section entitled Policy Application and Premium Payments, delete the first two sentences of the fourth paragraph and replace them with the following: (a) for New York Life Variable Annuity policies: Unless We permit otherwise, the minimum initial premium for Non- Qualified Policies issued to fund a Pension Plan is $10,000. The minimum additional premium payment for Non-Qualified Policies issued to fund a Pension Plan is $10,000 or such lower amount as We may permit at any time. (b) for New York Life Premium Plus and New York Life Premium Plus II policies: Unless We permit otherwise, the minimum initial premium for Non- Qualified Policies issued to fund a Pension Plan is $10,000. The minimum additional premium payment for Non-Qualified Policies issued to fund a Pension Plan is $10,000 or such lower amount as We may permit at any time. (c) for New York Life Essentials policies: Unless We permit otherwise, the minimum initial premium for Non- Qualified Policies issued to fund a Pension Plan is $10,000. The minimum additional premium payment for Non-Qualified Policies issued to fund a Pension Plan is $10,000. (d) for New York Life Select policies: Unless We permit otherwise, the minimum initial premium payment is $25,000. The minimum additional premium payment for Non-Qualified Policies issued to fund a Pension Plan is $10,000. (e) for New York Life Elite policies: Unless We permit otherwise, the minimum initial premium for Non- Qualified Policies issued to fund a Pension Plan is $10,000. The minimum additional premium payment for Non-Qualified Policies issued to fund a Pension Plan is $10,000. (f) for New York Life Premium Plus Elite policies: Unless We permit otherwise, the minimum initial premium for Non- Qualified Policies issued to fund a Pension Plan is $10,000. The minimum additional premium payment is $10,000 or such lower amount as We may permit at any time. (g) for New York Life Access policies: Unless We permit otherwise, the minimum initial premium for Non- Qualified Policies issued to fund a Pension Plan is $10,000. The minimum additional premium payment is $1,000 or such lower amount as We may permit at any time. 2. For New York Life Flexible Premium policies, under the section entitled Policy Application and Premium Payments, delete the first two sentences of the fifth paragraph and replace them with the following: Unless We permit otherwise, the minimum initial premium for Non- Qualified Policies issued to fund a Pension Plan is $10,000. The minimum additional payment is $50 or such lower amount as We may permit at any time. E. THE POLICIES -- Riders 1. For the New York Life Flexible Premium Variable Annuity, the New York Life Variable Annuity, the New York Life Premium Plus Variable Annuity, the New York Life Premium Plus II Variable Annuity, the New York Life Essentials Variable Annuity, the New York Life Select Variable Annuity, the New York Life Elite Variable Annuity and the New York Life Premium Plus Elite Variable Annuity policies, under the heading "Riders," delete the first sentence and replace it with the following: At no additional charge, We include two riders under the policy: an Unemployment Benefit Rider (for IRAs, Roth IRAs, SIMPLE IRAs and all Non-Qualified Policies except Non-Qualified Policies issued to fund a Pension Plan) and a Living Needs Benefit Rider (for all types of policies). 2. For the New York Life Flexible Premium Variable Annuity, the New York Life Variable Annuity, the New York Life Premium Plus Variable Annuity, the New York Life Premium Plus II Variable Annuity, the New York Life Essentials Variable Annuity, the New York Life Select Variable Annuity, the New York Life Elite Variable Annuity and the New York Life Premium Plus Elite Variable Annuity policies under the heading "Riders -- Unemployment Benefit Rider," delete the first sentence and replace it with the following: For all IRAs, Roth IRAs, SIMPLE IRAs and all Non-Qualified Policies (except Non-Qualified Policies issued to fund a Pension Plan), if you become unemployed, you may be eligible to increase the amount that can be withdrawn from your policy up to 50% without paying surrender charges. 3. Under the heading "Riders - Enhanced Beneficiary Benefit Rider (optional)," delete the eighth full paragraph and replace it with the following: There will be no payment under the EBB Rider if, on the date We calculate the EBB: 1) there is no Gain, 2) the policy's Accumulation Value is less than your premium payments made and not previously withdrawn, or 3) the rider has ended or terminated. The EBB Rider will end on the earliest of the following: 1) on the Annuity Commencement Date, 2) if you surrender the policy or 3) if you transfer ownership of the policy. You cannot cancel this rider without surrendering your policy. 4. Under the section "Riders," delete the heading "Enhanced Spousal Continuance Rider (optional)" and the four paragraphs of disclosure under that heading. -------------------------------------------------------------------------------- New York Life Insurance and Annuity Corporation 51 Madison Avenue New York, New York 10010 NYLIAC VARIABLE ANNUITY SEPARATE ACCOUNT-I NYLIAC VARIABLE ANNUITY SEPARATE ACCOUNT-II FINANCIAL STATEMENTS F-1 STATEMENT OF ASSETS AND LIABILITIES As of December 31, 2007
MAINSTAY VP MAINSTAY VP MAINSTAY VP CAPITAL BALANCED-- BOND-- APPRECIATION-- SERVICE CLASS INITIAL CLASS INITIAL CLASS -------------------------------------------------- ASSETS: Investment, at net asset value...... $5,834,010 $20,011,034 $83,094,866 Dividends due and accrued........... -- -- -- Net receivable from (payable to) New York Life Insurance and Annuity Corporation.............. (2) 98 (26,310) LIABILITIES: Liability to New York Life Insurance and Annuity Corporation for: Mortality and expense risk charges.......................... 18,534 64,230 268,492 Administrative charges........... 1,544 5,352 22,374 ---------- ----------- ----------- Total net assets............... $5,813,930 $19,941,550 $82,777,690 ========== =========== =========== TOTAL NET ASSETS REPRESENTED BY: Net Assets of Policyowners.......... $5,813,930 $19,941,550 $82,777,690 ========== =========== =========== Variable accumulation unit value.......................... $ 11.55 $ 18.57 $ 26.14 ========== =========== =========== Identified Cost of Investment......... $5,836,195 $19,538,300 $99,434,447 ========== =========== ===========
MAINSTAY VP MAINSTAY VP HIGH YIELD MAINSTAY VP GROWTH CORPORATE ICAP SELECT ALLOCATION-- BOND-- EQUITY-- SERVICE CLASS INITIAL CLASS INITIAL CLASS -------------------------------------------------- ASSETS: Investment, at net asset value...... $4,411,538 $96,408,435 $8,721,142 Dividends due and accrued........... -- -- -- Net receivable from (payable to) New York Life Insurance and Annuity Corporation.............. (3) (9,518) 3,250 LIABILITIES: Liability to New York Life Insurance and Annuity Corporation for: Mortality and expense risk charges.......................... 13,411 309,849 27,309 Administrative charges........... 1,118 25,821 2,276 ---------- ----------- ---------- Total net assets............... $4,397,006 $96,063,247 $8,694,807 ========== =========== ========== TOTAL NET ASSETS REPRESENTED BY: Net Assets of Policyowners.......... $4,397,006 $96,063,247 $8,694,807 ========== =========== ========== Variable accumulation unit value.......................... $ 11.87 $ 26.18 $ 14.90 ========== =========== ========== Identified Cost of Investment......... $4,184,862 $86,841,159 $8,380,863 ========== =========== ==========
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. F-2 NYLIAC VARIABLE ANNUITY SEPARATE ACCOUNT-I NON-QUALIFIED POLICIES
MAINSTAY VP MAINSTAY VP MAINSTAY VP MAINSTAY VP MAINSTAY VP COMMON CONSERVATIVE MAINSTAY VP DEVELOPING FLOATING MAINSTAY VP CASH STOCK-- ALLOCATION-- CONVERTIBLE-- GROWTH-- RATE-- GOVERNMENT-- MANAGEMENT INITIAL CLASS SERVICE CLASS INITIAL CLASS INITIAL CLASS SERVICE CLASS INITIAL CLASS -------------------------------------------------------------------------------------------------------------------------- $17,471,102 $50,747,025 $6,506,433 $14,566,153 $2,517,290 $8,119,920 $19,292,154 61,084 -- -- -- -- 41,528 -- (20,000) (12,038) (47,098) (3) (7) (3) (14,595) 52,738 163,810 18,128 46,694 8,415 26,076 61,529 4,396 13,651 1,511 3,891 701 2,173 5,127 ----------- ----------- ---------- ----------- ---------- ---------- ----------- $17,455,052 $50,557,526 $6,439,696 $14,515,565 $2,508,167 $8,133,196 $19,210,903 =========== =========== ========== =========== ========== ========== =========== $17,455,052 $50,557,526 $6,439,696 $14,515,565 $2,508,167 $8,133,196 $19,210,903 =========== =========== ========== =========== ========== ========== =========== $ 1.44 $ 32.60 $ 11.22 $ 22.98 $ 15.85 $ 10.65 $ 18.80 =========== =========== ========== =========== ========== ========== =========== $17,471,098 $52,922,955 $6,460,696 $11,662,195 $1,874,553 $8,420,505 $19,227,756 =========== =========== ========== =========== ========== ========== ===========
MAINSTAY VP MAINSTAY VP MAINSTAY VP MAINSTAY VP MAINSTAY VP MAINSTAY VP MAINSTAY VP MODERATE INTERNATIONAL LARGE CAP MID CAP MID CAP MID CAP MODERATE GROWTH EQUITY-- GROWTH-- CORE-- GROWTH-- VALUE-- ALLOCATION-- ALLOCATION-- INITIAL CLASS INITIAL CLASS INITIAL CLASS INITIAL CLASS INITIAL CLASS SERVICE CLASS SERVICE CLASS -------------------------------------------------------------------------------------------------------------------------- $18,807,122 $4,536,364 $7,312,066 $10,349,043 $11,205,874 $6,858,858 $8,640,334 -- -- -- -- -- -- -- (493) (6) 9,160 2,581 (8,739) 21,501 83,698 60,289 14,678 23,323 33,297 35,120 21,054 26,299 5,024 1,223 1,944 2,775 2,927 1,754 2,192 ----------- ---------- ---------- ----------- ----------- ---------- ---------- $18,741,316 $4,520,457 $7,295,959 $10,315,552 $11,159,088 $6,857,551 $8,695,541 =========== ========== ========== =========== =========== ========== ========== $18,741,316 $4,520,457 $7,295,959 $10,315,552 $11,159,088 $6,857,551 $8,695,541 =========== ========== ========== =========== =========== ========== ========== $ 25.23 $ 16.00 $ 17.71 $ 16.67 $ 14.19 $ 11.48 $ 11.72 =========== ========== ========== =========== =========== ========== ========== $14,975,152 $3,469,696 $6,980,595 $ 8,289,054 $11,093,067 $6,668,481 $8,381,361 =========== ========== ========== =========== =========== ========== ==========
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. F-3 STATEMENT OF ASSETS AND LIABILITIES (CONTINUED) As of December 31, 2007
MAINSTAY VP MAINSTAY VP MAINSTAY VP S&P 500 SMALL CAP TOTAL INDEX-- GROWTH-- RETURN-- INITIAL CLASS INITIAL CLASS INITIAL CLASS -------------------------------------------------- ASSETS: Investment, at net asset value...... $95,058,227 $3,374,662 $66,274,957 Dividends due and accrued........... -- -- -- Net receivable from (payable to) New York Life Insurance and Annuity Corporation.............. (19,071) (4,472) (60,975) LIABILITIES: Liability to New York Life Insurance and Annuity Corporation for: Mortality and expense risk charges.......................... 304,873 11,123 211,315 Administrative charges........... 25,406 927 17,609 ----------- ---------- ----------- Total net assets............... $94,708,877 $3,358,140 $65,985,058 =========== ========== =========== TOTAL NET ASSETS REPRESENTED BY: Net Assets of Policyowners.......... $94,708,877 $3,358,140 $65,985,058 =========== ========== =========== Variable accumulation unit value.......................... $ 34.75 $ 10.68 $ 26.08 =========== ========== =========== Identified Cost of Investment......... $82,586,248 $3,359,847 $68,307,391 =========== ========== ===========
JANUS ASPEN JANUS ASPEN SERIES FIDELITY(R) SERIES WORLDWIDE VIP BALANCED-- GROWTH-- MID CAP-- INSTITUTIONAL INSTITUTIONAL SERVICE CLASS 2 SHARES SHARES ------------------------------------------------------ ASSETS: Investment, at net asset value...... $8,995,232 $34,208,455 $26,380,279 Dividends due and accrued........... -- -- -- Net receivable from (payable to) New York Life Insurance and Annuity Corporation.............. 3,000 (2,757) (4,612) LIABILITIES: Liability to New York Life Insurance and Annuity Corporation for: Mortality and expense risk charges.......................... 28,649 110,767 84,233 Administrative charges........... 2,387 9,231 7,019 ---------- ----------- ----------- Total net assets............... $8,967,196 $34,085,700 $26,284,415 ========== =========== =========== TOTAL NET ASSETS REPRESENTED BY: Net Assets of Policyowners.......... $8,967,196 $34,085,700 $26,284,415 ========== =========== =========== Variable accumulation unit value.......................... $ 20.35 $ 26.03 $ 20.20 ========== =========== =========== Identified Cost of Investment......... $8,059,268 $27,345,766 $30,042,251 ========== =========== ===========
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. F-4 NYLIAC VARIABLE ANNUITY SEPARATE ACCOUNT-I NON-QUALIFIED POLICIES
ALGER COLUMBIA AMERICAN CVS SMALL CAP FIDELITY(R) FIDELITY(R) SMALL CALVERT VALUE FUND, DREYFUS IP VIP VIP MAINSTAY VP CAPITALIZA- SOCIAL VARIABLE TECHNOLOGY CONTRA- EQUITY- VALUE-- TION-- BALANCED SERIES-- GROWTH-- FUND(R)-- INCOME-- INITIAL CLASS CLASS O SHARES PORTFOLIO CLASS B INITIAL SHARES INITIAL CLASS INITIAL CLASS ------------------------------------------------------------------------------------------------------------------------------ $36,641,111 $10,079,018 $1,841,597 $1,724,792 $1,148,718 $54,921,810 $22,843,866 -- -- -- -- -- -- -- (27,761) 93 (30) (1,546) -- 9,476 (12,452) 115,474 33,658 5,861 5,599 3,150 179,812 73,327 9,623 2,805 488 467 262 14,984 6,111 ----------- ----------- ---------- ---------- ---------- ----------- ----------- $36,488,253 $10,042,648 $1,835,218 $1,717,180 $1,145,306 $54,736,490 $22,751,976 =========== =========== ========== ========== ========== =========== =========== $36,488,253 $10,042,648 $1,835,218 $1,717,180 $1,145,306 $54,736,490 $22,751,976 =========== =========== ========== ========== ========== =========== =========== $ 25.43 $ 15.81 $ 21.12 $ 12.47 $ 10.61 $ 31.14 $ 22.35 =========== =========== ========== ========== ========== =========== =========== $31,681,237 $ 6,000,823 $1,729,908 $1,889,317 $1,013,925 $51,664,411 $22,237,023 =========== =========== ========== ========== ========== =========== ===========
NEUBERGER MFS(R) BERMAN AMT ROYCE ROYCE T. ROWE INVESTORS MFS(R) MFS(R) MID-CAP MICRO-CAP SMALL-CAP PRICE TRUST RESEARCH UTILITIES GROWTH PORTFOLIO-- PORTFOLIO-- EQUITY SERIES-- SERIES-- SERIES-- PORTFOLIO-- INVESTMENT INVESTMENT INCOME INITIAL CLASS INITIAL CLASS SERVICE CLASS CLASS S CLASS CLASS PORTFOLIO ------------------------------------------------------------------------------------------------------------------------------ $1,104,749 $1,560,658 $22,644,160 $1,223,901 $2,415,712 $1,382,798 $15,784,928 -- -- -- -- -- -- -- (5) (3) 26,167 (5,511) (4,813) (140) (8,876) 3,740 5,122 72,450 3,752 7,455 4,339 50,731 312 427 6,038 313 621 362 4,228 ---------- ---------- ----------- ---------- ---------- ---------- ----------- $1,100,692 $1,555,106 $22,591,839 $1,214,325 $2,402,823 $1,377,957 $15,721,093 ========== ========== =========== ========== ========== ========== =========== $1,100,692 $1,555,106 $22,591,839 $1,214,325 $2,402,823 $1,377,957 $15,721,093 ========== ========== =========== ========== ========== ========== =========== $ 11.95 $ 13.17 $ 23.53 $ 17.95 $ 14.73 $ 11.66 $ 17.16 ========== ========== =========== ========== ========== ========== =========== $ 787,063 $1,100,296 $17,274,689 $1,051,814 $2,566,229 $1,475,250 $14,453,206 ========== ========== =========== ========== ========== ========== ===========
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. F-5 STATEMENT OF ASSETS AND LIABILITIES (CONTINUED) As of December 31, 2007
VAN KAMPEN VICTORY VAN ECK UIF VIF WORLDWIDE EMERGING DIVERSIFIED HARD MARKETS STOCK--CLASS A ASSETS EQUITY--CLASS I SHARES ---------------------------------------------------- ASSETS: Investment, at net asset value...... $18,952,774 $17,420,798 $1,234,668 Dividends due and accrued........... -- -- -- Net receivable from (payable to) New York Life Insurance and Annuity Corporation.............. 8,870 7,773 -- LIABILITIES: Liability to New York Life Insurance and Annuity Corporation for: Mortality and expense risk charges.......................... 62,680 59,790 3,917 Administrative charges........... 5,223 4,982 326 ----------- ----------- ---------- Total net assets............... $18,893,741 $17,363,799 $1,230,425 =========== =========== ========== TOTAL NET ASSETS REPRESENTED BY: Net Assets of Policyowners.......... $18,893,741 $17,363,799 $1,230,425 =========== =========== ========== Variable accumulation unit value.......................... $ 39.72 $ 31.50 $ 14.09 =========== =========== ========== Identified Cost of Investment......... $13,367,176 $10,227,164 $1,170,698 =========== =========== ==========
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. F-6 NYLIAC VARIABLE ANNUITY SEPARATE ACCOUNT-I NON-QUALIFIED POLICIES (THIS PAGE INTENTIONALLY LEFT BLANK) F-7 STATEMENT OF OPERATIONS For the year ended December 31, 2007
MAINSTAY VP MAINSTAY VP MAINSTAY VP CAPITAL BALANCED-- BOND-- APPRECIATION-- SERVICE CLASS INITIAL CLASS INITIAL CLASS ---------------------------------------------- INVESTMENT INCOME (LOSS): Dividend income....................... $ 118,011 $ 740,117 $ 116,580 Mortality and expense risk charges.... (72,830) (255,062) (1,078,801) Administrative charges................ (6,069) (21,255) (89,900) ----------- ----------- ------------ Net investment income (loss)..... 39,112 463,800 (1,052,121) ----------- ----------- ------------ REALIZED AND UNREALIZED GAIN (LOSS): Proceeds from sale of investments..... 1,757,079 5,063,453 23,496,272 Cost of investments sold.............. (1,591,518) (4,866,556) (26,697,231) ----------- ----------- ------------ Net realized gain (loss) on investments................... 165,561 196,897 (3,200,959) Realized gain distribution received... 213,003 -- -- Change in unrealized appreciation (depreciation) on investments...... (339,921) 388,888 13,904,333 ----------- ----------- ------------ Net gain (loss) on investments... 38,643 585,785 10,703,374 ----------- ----------- ------------ Net increase (decrease) in net assets resulting from operations.................. $ 77,755 $ 1,049,585 $ 9,651,253 =========== =========== ============
MAINSTAY VP MAINSTAY VP HIGH YIELD MAINSTAY VP GROWTH CORPORATE ICAP SELECT ALLOCATION-- BOND-- EQUITY-- SERVICE CLASS INITIAL CLASS INITIAL CLASS ---------------------------------------------- INVESTMENT INCOME (LOSS): Dividend income....................... $ 40,724 $ 6,695,022 $ 40,123 Mortality and expense risk charges.... (44,320) (1,301,727) (67,749) Administrative charges................ (3,693) (108,477) (5,646) --------- ------------ --------- Net investment income (loss)..... (7,289) 5,284,818 (33,272) --------- ------------ --------- REALIZED AND UNREALIZED GAIN (LOSS): Proceeds from sale of investments..... 399,970 25,745,300 881,403 Cost of investments sold.............. (344,046) (20,894,476) (518,222) --------- ------------ --------- Net realized gain (loss) on investments................... 55,924 4,850,824 363,181 Realized gain distribution received... 159,879 -- 265,100 Change in unrealized appreciation (depreciation) on investments...... 86,201 (8,883,153) (387,581) --------- ------------ --------- Net gain (loss) on investments... 302,004 (4,032,329) 240,700 --------- ------------ --------- Net increase (decrease) in net assets resulting from operations.................. $ 294,715 $ 1,252,489 $ 207,428 ========= ============ =========
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. F-8 NYLIAC VARIABLE ANNUITY SEPARATE ACCOUNT-I NON-QUALIFIED POLICIES
MAINSTAY VP MAINSTAY VP MAINSTAY VP MAINSTAY VP MAINSTAY VP COMMON CONSERVATIVE MAINSTAY VP DEVELOPING FLOATING MAINSTAY VP CASH STOCK-- ALLOCATION-- CONVERTIBLE-- GROWTH-- RATE-- GOVERNMENT-- MANAGEMENT INITIAL CLASS SERVICE CLASS INITIAL CLASS INITIAL CLASS SERVICE CLASS INITIAL CLASS -------------------------------------------------------------------------------------------------------------- $ 755,494 $ 665,907 $ 159,796 $ 325,684 $ -- $ 581,090 $ 934,443 (192,004) (674,612) (52,391) (184,556) (28,359) (110,641) (241,643) (16,000) (56,218) (4,366) (15,380) (2,363) (9,220) (20,137) ------------ ------------ --------- ----------- --------- ----------- ----------- 547,490 (64,923) 103,039 125,748 (30,722) 461,229 672,663 ------------ ------------ --------- ----------- --------- ----------- ----------- 12,505,428 12,188,416 976,610 3,970,683 878,473 5,638,773 5,528,255 (12,505,547) (12,841,180) (882,398) (2,725,334) (561,420) (5,792,211) (5,651,868) ------------ ------------ --------- ----------- --------- ----------- ----------- (119) (652,764) 94,212 1,245,349 317,053 (153,438) (123,613) -- 3,964,733 96,316 364,729 103,727 -- -- 202 (981,912) (62,124) 211,528 294,910 (286,261) 464,522 ------------ ------------ --------- ----------- --------- ----------- ----------- 83 2,330,057 128,404 1,821,606 715,690 (439,699) 340,909 ------------ ------------ --------- ----------- --------- ----------- ----------- $ 547,573 $ 2,265,134 $ 231,443 $ 1,947,354 $ 684,968 $ 21,530 $ 1,013,572 ============ ============ ========= =========== ========= =========== ===========
MAINSTAY VP MAINSTAY VP MAINSTAY VP MAINSTAY VP MAINSTAY VP MAINSTAY VP MAINSTAY VP INCOME & INTERNATIONAL LARGE CAP MID CAP MID CAP MID CAP MODERATE GROWTH-- EQUITY-- GROWTH-- CORE-- GROWTH-- VALUE-- ALLOCATION-- INITIAL CLASS INITIAL CLASS INITIAL CLASS INITIAL CLASS INITIAL CLASS INITIAL CLASS SERVICE CLASS -------------------------------------------------------------------------------------------------------------- $ 101,065 $ 131,785 $ 867 $ 30,524 $ -- $ 125,151 $ 135,695 (35,414) (241,258) (56,001) (97,853) (136,277) (160,805) (63,612) (2,951) (20,105) (4,667) (8,155) (11,356) (13,400) (5,301) ----------- ----------- ----------- ----------- ----------- ----------- ---------- 62,700 (129,578) (59,801) (75,484) (147,633) (49,054) 66,782 ----------- ----------- ----------- ----------- ----------- ----------- ---------- 5,134,296 3,676,811 2,053,226 2,087,039 4,167,805 3,496,083 1,018,832 (4,767,945) (2,078,054) (2,029,165) (1,447,898) (2,524,458) (2,525,251) (901,390) ----------- ----------- ----------- ----------- ----------- ----------- ---------- 366,351 1,598,757 24,061 639,141 1,643,347 970,832 117,442 660,670 1,222,615 -- 741,526 724,609 1,017,177 138,906 (1,113,299) (1,967,946) 872,070 (990,367) (672,799) (2,094,155) 15,603 ----------- ----------- ----------- ----------- ----------- ----------- ---------- (86,278) 853,426 896,131 390,300 1,695,157 (106,146) 271,951 ----------- ----------- ----------- ----------- ----------- ----------- ---------- $ (23,578) $ 723,848 $ 836,330 $ 314,816 $ 1,547,524 $ (155,200) $ 338,733 =========== =========== =========== =========== =========== =========== ==========
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. F-9 STATEMENT OF OPERATIONS (CONTINUED) For the year ended December 31, 2007
MAINSTAY VP MODERATE MAINSTAY VP MAINSTAY VP GROWTH S&P 500 SMALL CAP ALLOCATION-- INDEX-- GROWTH-- SERVICE CLASS INITIAL CLASS INITIAL CLASS ---------------------------------------------------- INVESTMENT INCOME (LOSS): Dividend income....................... $ 135,877 $ 1,606,882 $ -- Mortality and expense risk charges.... (81,718) (1,269,238) (52,177) Administrative charges................ (6,810) (105,770) (4,348) --------- ------------ ----------- Net investment income (loss)..... 47,349 231,874 (56,525) --------- ------------ ----------- REALIZED AND UNREALIZED GAIN (LOSS): Proceeds from sale of investments..... 746,756 23,924,204 1,517,221 Cost of investments sold.............. (661,219) (18,704,681) (1,226,700) --------- ------------ ----------- Net realized gain (loss) on investments................... 85,537 5,219,523 290,521 Realized gain distribution received... 257,399 -- 287,298 Change in unrealized appreciation (depreciation) on investments...... 67,602 (1,069,285) (676,002) --------- ------------ ----------- Net gain (loss) on investments... 410,538 4,150,238 (98,183) --------- ------------ ----------- Net increase (decrease) in net assets resulting from operations.................. $ 457,887 $ 4,382,112 $ (154,708) ========= ============ ===========
FIDELITY(R) JANUS ASPEN VIP FIDELITY(R) SERIES EQUITY- VIP BALANCED-- INCOME-- MID CAP-- INSTITUTIONAL INITIAL CLASS SERVICE CLASS 2 SHARES ---------------------------------------------------- INVESTMENT INCOME (LOSS): Dividend income....................... $ 437,947 $ 45,358 $ 900,570 Mortality and expense risk charges.... (316,538) (110,170) (434,650) Administrative charges................ (26,378) (9,181) (36,221) ----------- ----------- ----------- Net investment income (loss)..... 95,031 (73,993) 429,699 ----------- ----------- ----------- REALIZED AND UNREALIZED GAIN (LOSS): Proceeds from sale of investments..... 5,605,867 2,028,004 7,818,087 Cost of investments sold.............. (5,085,751) (1,682,233) (7,126,773) ----------- ----------- ----------- Net realized gain (loss) on investments................... 520,116 345,771 691,314 Realized gain distribution received... 1,930,349 854,226 -- Change in unrealized appreciation (depreciation) on investments...... (2,297,377) 55,709 2,065,132 ----------- ----------- ----------- Net gain (loss) on investments... 153,088 1,255,706 2,756,446 ----------- ----------- ----------- Net increase (decrease) in net assets resulting from operations.................. $ 248,119 $ 1,181,713 $ 3,186,145 =========== =========== ===========
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. F-10 NYLIAC VARIABLE ANNUITY SEPARATE ACCOUNT-I NON-QUALIFIED POLICIES
COLUMBIA ALGER CVS SMALL CAP MAINSTAY VP AMERICAN CALVERT VALUE FUND, DREYFUS IP FIDELITY(R) TOTAL MAINSTAY VP SMALL SOCIAL VARIABLE TECHNOLOGY VIP RETURN-- VALUE-- CAPITALIZATION-- BALANCED SERIES-- GROWTH-- CONTRAFUND(R)-- INITIAL CLASS INITIAL CLASS CLASS O SHARES PORTFOLIO CLASS B INITIAL SHARES INITIAL CLASS ------------------------------------------------------------------------------------------------------------------ $ 1,525,916 $ 627,082 $ -- $ 45,552 $ 5,516 $ -- $ 496,762 (863,819) (503,558) (129,366) (24,824) (24,811) (11,094) (666,817) (71,985) (41,963) (10,781) (2,069) (2,068) (924) (55,568) ------------ ----------- ----------- --------- --------- --------- ----------- 590,112 81,561 (140,147) 18,659 (21,363) (12,018) (225,623) ------------ ----------- ----------- --------- --------- --------- ----------- 16,021,176 9,608,737 2,896,150 535,381 711,498 416,185 10,729,133 (16,187,401) (6,832,566) (2,678,931) (416,575) (626,861) (331,568) (8,360,700) ------------ ----------- ----------- --------- --------- --------- ----------- (166,225) 2,776,171 217,219 118,806 84,637 84,617 2,368,433 4,621,625 3,245,539 -- 104,243 222,651 -- 13,282,767 (584,280) (5,434,882) 1,534,354 (205,775) (349,670) 36,905 (7,113,876) ------------ ----------- ----------- --------- --------- --------- ----------- 3,871,120 586,828 1,751,573 17,274 (42,382) 121,522 8,537,324 ------------ ----------- ----------- --------- --------- --------- ----------- $ 4,461,232 $ 668,389 $ 1,611,426 $ 35,933 $ (63,745) $ 109,504 $ 8,311,701 ============ =========== =========== ========= ========= ========= ===========
JANUS ASPEN NEUBERGER SERIES BERMAN AMT ROYCE ROYCE WORLDWIDE MFS(R) MFS(R) MFS(R) MID-CAP MICRO-CAP SMALL-CAP GROWTH-- INVESTORS RESEARCH UTILITIES GROWTH PORTFOLIO-- PORTFOLIO-- INSTITUTIONAL TRUST SERIES-- SERIES-- SERIES-- PORTFOLIO-- INVESTMENT INVESTMENT SHARES INITIAL CLASS INITIAL CLASS SERVICE CLASS CLASS S CLASS CLASS -------------------------------------------------------------------------------------------------------------- $ 209,277 $ 10,287 $ 11,967 $ 142,872 $ -- $ 35,698 $ 742 (340,024) (14,612) (19,916) (229,299) (11,408) (27,476) (18,329) (28,335) (1,218) (1,660) (19,108) (951) (2,290) (1,527) ----------- --------- --------- ----------- --------- --------- --------- (159,082) (5,543) (9,609) (105,535) (12,359) 5,932 (19,114) ----------- --------- --------- ----------- --------- --------- --------- 5,798,113 349,104 452,969 1,867,304 220,536 510,485 569,519 (8,600,649) (255,991) (380,011) (1,198,286) (150,657) (489,700) (514,559) ----------- --------- --------- ----------- --------- --------- --------- (2,802,536) 93,113 72,958 669,018 69,879 20,785 54,960 -- 10,434 -- 1,226,695 -- 203,416 64,596 5,305,460 5,873 123,806 2,392,203 97,234 (192,422) (153,491) ----------- --------- --------- ----------- --------- --------- --------- 2,502,924 109,420 196,764 4,287,916 167,113 31,779 (33,935) ----------- --------- --------- ----------- --------- --------- --------- $ 2,343,842 $ 103,877 $ 187,155 $ 4,182,381 $ 154,754 $ 37,711 $ (53,049) =========== ========= ========= =========== ========= ========= =========
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. F-11 STATEMENT OF OPERATIONS (CONTINUED) For the year ended December 31, 2007
VAN KAMPEN T. ROWE PRICE VAN ECK UIF EQUITY WORLDWIDE EMERGING INCOME HARD MARKETS PORTFOLIO ASSETS EQUITY--CLASS I ---------------------------------------------------- INVESTMENT INCOME (LOSS): Dividend income....................... $ 296,607 $ 17,231 $ 64,463 Mortality and expense risk charges.... (211,188) (187,317) (178,005) Administrative charges................ (17,599) (15,610) (14,834) ----------- ----------- ---------- Net investment income (loss)..... 67,820 (185,696) (128,376) ----------- ----------- ---------- REALIZED AND UNREALIZED GAIN (LOSS): Proceeds from sale of investments..... 4,222,698 2,710,428 2,691,000 Cost of investments sold.............. (2,988,338) (1,463,338) (916,686) ----------- ----------- ---------- Net realized gain (loss) on investments................... 1,234,360 1,247,090 1,774,314 Realized gain distribution received... 974,047 1,680,944 1,644,585 Change in unrealized appreciation (depreciation) on investments...... (1,886,057) 2,842,128 1,512,315 ----------- ----------- ---------- Net gain (loss) on investments... 322,350 5,770,162 4,931,214 ----------- ----------- ---------- Net increase (decrease) in net assets resulting from operations.................. $ 390,170 $ 5,584,466 $4,802,838 =========== =========== ==========
VICTORY VIF DIVERSIFIED STOCK--CLASS A SHARES ---------------- INVESTMENT INCOME (LOSS): Dividend income....................... $ 8,399 Mortality and expense risk charges.... (15,368) Administrative charges................ (1,281) --------- Net investment income (loss)..... (8,250) --------- REALIZED AND UNREALIZED GAIN (LOSS): Proceeds from sale of investments..... 360,410 Cost of investments sold.............. (289,455) --------- Net realized gain (loss) on investments................... 70,955 Realized gain distribution received... 106,533 Change in unrealized appreciation (depreciation) on investments...... (60,817) --------- Net gain (loss) on investments... 116,671 --------- Net increase (decrease) in net assets resulting from operations.................. $ 108,421 =========
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. F-12 NYLIAC VARIABLE ANNUITY SEPARATE ACCOUNT-I NON-QUALIFIED POLICIES (THIS PAGE INTENTIONALLY LEFT BLANK) F-13 STATEMENT OF CHANGES IN NET ASSETS For the years ended December 31, 2007 and December 31, 2006
MAINSTAY VP MAINSTAY VP BALANCED-- BOND-- SERVICE CLASS INITIAL CLASS -------------------------------- -------------------------------- 2007 2006 2007 2006 -------------------------------------------------------------------- INCREASE (DECREASE) IN NET ASSETS: Operations: Net investment income (loss)........................... $ 39,112 $ 35,247 $ 463,800 $ (53,861) Net realized gain (loss) on investments................ 165,561 54,676 196,897 (208,080) Realized gain distribution received.................... 213,003 56,298 -- -- Change in unrealized appreciation (depreciation) on investments.......................................... (339,921) 301,318 388,888 971,670 ----------- ---------- ----------- ----------- Net increase (decrease) in net assets resulting from operations........................................ 77,755 447,539 1,049,585 709,729 ----------- ---------- ----------- ----------- Contributions and (Withdrawals): Payments received from policyowners.................... 393,794 222,829 326,202 398,584 Policyowners' surrenders............................... (1,215,980) (514,006) (4,148,154) (3,760,796) Policyowners' annuity and death benefits............... (136,666) (16,767) (353,619) (1,219,563) Net transfers from (to) Fixed Account.................. 30,095 45,160 (46,289) (145,200) Transfers between Investment Divisions................. 713,515 1,747,120 307,862 (1,100,830) ----------- ---------- ----------- ----------- Net contributions and (withdrawals).................. (215,242) 1,484,336 (3,913,998) (5,827,805) ----------- ---------- ----------- ----------- Increase (decrease) attributable to New York Life Insurance and Annuity Corporation charges retained by the Separate Account................................. (276) (1,637) (3,292) (2,553) ----------- ---------- ----------- ----------- Increase (decrease) in net assets................. (137,763) 1,930,238 (2,867,705) (5,120,629) NET ASSETS: Beginning of period.................................... 5,951,693 4,021,455 22,809,255 27,929,884 ----------- ---------- ----------- ----------- End of period.......................................... $ 5,813,930 $5,951,693 $19,941,550 $22,809,255 =========== ========== =========== ===========
MAINSTAY VP MAINSTAY VP DEVELOPING CONVERTIBLE-- GROWTH-- INITIAL CLASS INITIAL CLASS -------------------------------- -------------------------------- 2007 2006 2007 2006 -------------------------------------------------------------------- INCREASE (DECREASE) IN NET ASSETS: Operations: Net investment income (loss)........................... $ 125,748 $ 158,014 $ (30,722) $ (29,899) Net realized gain (loss) on investments................ 1,245,349 775,006 317,053 266,866 Realized gain distribution received.................... 364,729 -- 103,727 -- Change in unrealized appreciation (depreciation) on investments.......................................... 211,528 518,077 294,910 (22,209) ----------- ----------- ---------- ---------- Net increase (decrease) in net assets resulting from operations........................................ 1,947,354 1,451,097 684,968 214,758 ----------- ----------- ---------- ---------- Contributions and (Withdrawals): Payments received from policyowners.................... 403,418 410,358 49,562 15,568 Policyowners' surrenders............................... (3,366,524) (3,074,326) (304,696) (315,111) Policyowners' annuity and death benefits............... (212,200) (426,028) -- (3,456) Net transfers from (to) Fixed Account.................. (67,254) (31,410) 16,076 (28,610) Transfers between Investment Divisions................. (93,545) (248,261) (18,284) 45,860 ----------- ----------- ---------- ---------- Net contributions and (withdrawals).................. (3,336,105) (3,369,667) (257,342) (285,749) ----------- ----------- ---------- ---------- Increase (decrease) attributable to New York Life Insurance and Annuity Corporation charges retained by the Separate Account................................. (6,816) (6,901) (2,161) (1,244) ----------- ----------- ---------- ---------- Increase (decrease) in net assets................. (1,395,567) (1,925,471) 425,465 (72,235) NET ASSETS: Beginning of period.................................... 15,911,132 17,836,603 2,082,702 2,154,937 ----------- ----------- ---------- ---------- End of period.......................................... $14,515,565 $15,911,132 $2,508,167 $2,082,702 =========== =========== ========== ==========
(a) For the period February 13, 2006 (Commencement of Investments) through December 31, 2006. The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. F-14 NYLIAC VARIABLE ANNUITY SEPARATE ACCOUNT-I NON-QUALIFIED POLICIES
MAINSTAY VP MAINSTAY VP MAINSTAY VP CONSERVATIVE CAPITAL APPRECIATION-- MAINSTAY VP COMMON STOCK-- ALLOCATION-- INITIAL CLASS CASH MANAGEMENT INITIAL CLASS SERVICE CLASS ----------------------------- ----------------------------- ----------------------------- ----------------------------- 2007 2006 2007 2006 2007 2006 2007 2006(A) ----------------------------------------------------------------------------------------------------------------------- $ (1,052,121) $ (996,594) $ 547,490 $ 495,069 $ (64,923) $ (473,640) $ 103,039 $ 8,912 (3,200,959) (768,764) (119) (172) (652,764) (166,015) 94,212 11,461 -- -- -- -- 3,964,733 1,285,875 96,316 8,123 13,904,333 4,772,550 202 (268) (981,912) 7,824,750 (62,124) 107,862 ------------ ------------ ----------- ----------- ------------ ------------ ---------- ---------- 9,651,253 3,007,192 547,573 494,629 2,265,134 8,470,970 231,443 136,358 ------------ ------------ ----------- ----------- ------------ ------------ ---------- ---------- 798,009 1,264,347 2,023,504 822,000 623,872 570,654 716,773 403,546 (13,427,212) (14,278,420) (9,170,874) (6,936,869) (7,608,212) (8,668,350) (937,277) (285,363) (984,898) (1,178,279) (516,415) (552,903) (575,234) (1,246,541) (1,854) (5,544) (392,285) (414,318) 151,408 (285,932) (212,957) (198,228) 62,066 31,799 (7,982,829) (9,016,170) 9,274,738 5,485,549 (3,504,270) (3,985,157) 3,464,203 2,624,661 ------------ ------------ ----------- ----------- ------------ ------------ ---------- ---------- (21,989,215) (23,622,840) 1,762,361 (1,468,155) (11,276,801) (13,527,622) 3,303,911 2,769,099 ------------ ------------ ----------- ----------- ------------ ------------ ---------- ---------- (37,670) (23,818) (1,928) (1,783) (8,532) (33,294) (753) (362) ------------ ------------ ----------- ----------- ------------ ------------ ---------- ---------- (12,375,632) (20,639,466) 2,308,006 (975,309) (9,020,199) (5,089,946) 3,534,601 2,905,095 95,153,322 115,792,788 15,147,046 16,122,355 59,577,725 64,667,671 2,905,095 -- ------------ ------------ ----------- ----------- ------------ ------------ ---------- ---------- $ 82,777,690 $ 95,153,322 $17,455,052 $15,147,046 $ 50,557,526 $ 59,577,725 $6,439,696 $2,905,095 ============ ============ =========== =========== ============ ============ ========== ==========
MAINSTAY VP MAINSTAY VP MAINSTAY VP MAINSTAY VP GROWTH HIGH YIELD FLOATING RATE-- GOVERNMENT-- ALLOCATION-- CORPORATE BOND-- SERVICE CLASS INITIAL CLASS SERVICE CLASS INITIAL CLASS ----------------------------- ----------------------------- ----------------------------- ----------------------------- 2007 2006 2007 2006 2007 2006(A) 2007 2006 ----------------------------------------------------------------------------------------------------------------------- $ 461,229 $ 262,671 $ 672,663 $ (89,664) $ (7,289) $ 100 $ 5,284,818 $ 604,434 (153,438) (15,781) (123,613) (185,399) 55,924 24,681 4,850,824 1,750,490 -- -- -- -- 159,879 12,231 -- -- (286,261) (7,285) 464,522 890,306 86,201 140,476 (8,883,153) 9,806,777 ----------- ----------- ----------- ----------- ---------- ---------- ------------ ------------ 21,530 239,605 1,013,572 615,243 294,715 177,488 1,252,489 12,161,701 ----------- ----------- ----------- ----------- ---------- ---------- ------------ ------------ 1,663,574 870,252 463,619 314,414 122,380 44,486 2,723,891 2,192,712 (2,523,831) (1,563,801) (3,547,713) (3,092,237) (78,694) (145,718) (18,256,423) (21,802,665) (86,880) (109,523) (378,777) (706,883) (216,199) -- (2,528,203) (2,687,970) 89,011 440,234 (33,360) (196,092) 7,089 45,250 (652,909) (929,214) 624,907 5,588,949 (577,946) (1,915,312) 2,278,099 1,869,359 (4,181,241) (5,238,967) ----------- ----------- ----------- ----------- ---------- ---------- ------------ ------------ (233,219) 5,226,111 (4,074,177) (5,596,110) 2,112,675 1,813,377 (22,894,885) (28,466,104) ----------- ----------- ----------- ----------- ---------- ---------- ------------ ------------ (479) (728) (3,077) (2,335) (822) (427) (2,794) (34,327) ----------- ----------- ----------- ----------- ---------- ---------- ------------ ------------ (212,168) 5,464,988 (3,063,682) (4,983,202) 2,406,568 1,990,438 (21,645,190) (16,338,730) 8,345,364 2,880,376 22,274,585 27,257,787 1,990,438 -- 117,708,437 134,047,167 ----------- ----------- ----------- ----------- ---------- ---------- ------------ ------------ $ 8,133,196 $ 8,345,364 $19,210,903 $22,274,585 $4,397,006 $1,990,438 $ 96,063,247 $117,708,437 =========== =========== =========== =========== ========== ========== ============ ============
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. F-15 STATEMENT OF CHANGES IN NET ASSETS (CONTINUED) For the years ended December 31, 2007 and December 31, 2006
MAINSTAY VP MAINSTAY VP ICAP SELECT EQUITY-- INCOME & GROWTH-- INITIAL CLASS INITIAL CLASS -------------------------------- -------------------------------- 2007 2006 2007 2006 -------------------------------------------------------------------- INCREASE (DECREASE) IN NET ASSETS: Operations: Net investment income (loss)........................... $ (33,272) $ (26,934) $ 62,700 $ (33,184) Net realized gain (loss) on investments................ 363,181 111,229 366,351 179,631 Realized gain distribution received.................... 265,100 13,468 660,670 59,159 Change in unrealized appreciation (depreciation) on investments.......................................... (387,581) 342,001 (1,113,299) 461,992 ---------- ---------- ----------- ---------- Net increase (decrease) in net assets resulting from operations........................................ 207,428 439,764 (23,578) 667,598 ---------- ---------- ----------- ---------- Contributions and (Withdrawals): Payments received from policyowners.................... 426,800 71,335 104,848 52,923 Policyowners' surrenders............................... (656,539) (308,403) (579,247) (324,131) Policyowners' annuity and death benefits............... (6,445) (3,282) (2,855) (181,579) Net transfers from (to) Fixed Account.................. 25,519 8,802 5,632 (73,458) Transfers between Investment Divisions................. 5,757,057 154,042 (4,278,251) (360,846) ---------- ---------- ----------- ---------- Net contributions and (withdrawals).................. 5,546,392 (77,506) (4,749,873) (887,091) ---------- ---------- ----------- ---------- Increase (decrease) attributable to New York Life Insurance and Annuity Corporation charges retained by the Separate Account................................. (588) (1,666) 99 (2,802) ---------- ---------- ----------- ---------- Increase (decrease) in net assets................. 5,753,232 360,592 (4,773,352) (222,295) NET ASSETS: Beginning of period.................................... 2,941,575 2,580,983 4,773,352 4,995,647 ---------- ---------- ----------- ---------- End of period.......................................... $8,694,807 $2,941,575 $ -- $4,773,352 ========== ========== =========== ==========
MAINSTAY VP MAINSTAY VP MID CAP MODERATE VALUE-- ALLOCATION-- INITIAL CLASS SERVICE CLASS -------------------------------- -------------------------------- 2007 2006 2007 2006(A) -------------------------------------------------------------------- INCREASE (DECREASE) IN NET ASSETS: Operations: Net investment income (loss)........................... $ (49,054) $ (176,727) $ 66,782 $ 5,540 Net realized gain (loss) on investments................ 970,832 1,307,751 117,442 19,601 Realized gain distribution received.................... 1,017,177 178,871 138,906 9,721 Change in unrealized appreciation (depreciation) on investments.......................................... (2,094,155) 425,881 15,603 174,773 ----------- ----------- ---------- ---------- Net increase (decrease) in net assets resulting from operations........................................ (155,200) 1,735,776 338,733 209,635 ----------- ----------- ---------- ---------- Contributions and (Withdrawals): Payments received from policyowners.................... 432,702 370,953 743,776 237,166 Policyowners' surrenders............................... (2,371,176) (2,510,339) (491,539) (126,439) Policyowners' annuity and death benefits............... (271,638) (227,367) (243,167) (5,131) Net transfers from (to) Fixed Account.................. (99,123) (21,150) 65,314 61,684 Transfers between Investment Divisions................. (304,444) (773,650) 3,038,887 3,030,293 ----------- ----------- ---------- ---------- Net contributions and (withdrawals).................. (2,613,679) (3,161,553) 3,113,271 3,197,573 ----------- ----------- ---------- ---------- Increase (decrease) attributable to New York Life Insurance and Annuity Corporation charges retained by the Separate Account................................. 284 (6,426) (1,062) (599) ----------- ----------- ---------- ---------- Increase (decrease) in net assets................. (2,768,595) (1,432,203) 3,450,942 3,406,609 NET ASSETS: Beginning of period.................................... 13,927,683 15,359,886 3,406,609 -- ----------- ----------- ---------- ---------- End of period.......................................... $11,159,088 $13,927,683 $6,857,551 $3,406,609 =========== =========== ========== ==========
(a) For the period February 13, 2006 (Commencement of Investments) through December 31, 2006. The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. F-16 NYLIAC VARIABLE ANNUITY SEPARATE ACCOUNT-I NON-QUALIFIED POLICIES
MAINSTAY VP MAINSTAY VP MAINSTAY VP MAINSTAY VP MID CAP MID CAP INTERNATIONAL EQUITY-- LARGE CAP GROWTH-- CORE-- GROWTH-- INITIAL CLASS INITIAL CLASS INITIAL CLASS INITIAL CLASS ----------------------------- ----------------------------- ----------------------------- ----------------------------- 2007 2006 2007 2006 2007 2006 2007 2006 ----------------------------------------------------------------------------------------------------------------------- $ (129,578) $ (167,619) $ (59,801) $ (57,851) $ (75,484) $ (112,375) $ (147,633) $ (167,025) 1,598,757 502,129 24,061 (374,346) 639,141 841,951 1,643,347 1,234,114 1,222,615 179,156 -- -- 741,526 50,190 724,609 210,733 (1,967,946) 3,856,843 872,070 703,840 (990,367) 268,529 (672,799) (380,233) ----------- ----------- ----------- ---------- ----------- ----------- ----------- ----------- 723,848 4,370,509 836,330 271,643 314,816 1,048,295 1,547,524 897,589 ----------- ----------- ----------- ---------- ----------- ----------- ----------- ----------- 416,687 447,212 101,529 139,147 160,605 235,707 217,904 234,511 (2,906,755) (2,509,318) (1,003,255) (750,781) (1,104,904) (1,683,963) (1,659,135) (1,618,475) (70,663) (287,301) (77,386) (18,526) (145,195) (350,903) (62,074) (166,653) 3,269 35,162 17,706 (37,490) (50,539) (11,876) (29,017) (49,010) 1,100,218 2,552,124 (271,475) 273,915 (155,209) 351,181 (1,458,101) (268,118) ----------- ----------- ----------- ---------- ----------- ----------- ----------- ----------- (1,457,244) 237,879 (1,232,881) (393,735) (1,295,242) (1,459,854) (2,990,423) (1,867,745) ----------- ----------- ----------- ---------- ----------- ----------- ----------- ----------- (2,378) (14,575) (2,747) (1,533) (1,019) (4,341) (5,300) (5,955) ----------- ----------- ----------- ---------- ----------- ----------- ----------- ----------- (735,774) 4,593,813 (399,298) (123,625) (981,445) (415,900) (1,448,199) (976,111) 19,477,090 14,883,277 4,919,755 5,043,380 8,277,404 8,693,304 11,763,751 12,739,862 ----------- ----------- ----------- ---------- ----------- ----------- ----------- ----------- $18,741,316 $19,477,090 $ 4,520,457 $4,919,755 $ 7,295,959 $ 8,277,404 $10,315,552 $11,763,751 =========== =========== =========== ========== =========== =========== =========== ===========
MAINSTAY VP MODERATE MAINSTAY VP GROWTH S&P 500 MAINSTAY VP MAINSTAY VP ALLOCATION-- INDEX-- SMALL CAP GROWTH-- TOTAL RETURN-- SERVICE CLASS INITIAL CLASS INITIAL CLASS INITIAL CLASS ----------------------------- ----------------------------- ----------------------------- ----------------------------- 2007 2006(A) 2007 2006 2007 2006 2007 2006 ----------------------------------------------------------------------------------------------------------------------- $ 47,349 $ 9,354 $ 231,874 $ (929,686) $ (56,525) $ (67,564) $ 590,112 $ (567,473) 85,537 6,316 5,219,523 4,607,786 290,521 325,074 (166,225) 826,501 257,399 20,965 -- -- 287,298 41 4,621,625 983,670 67,602 191,371 (1,069,285) 11,197,744 (676,002) (4,558) (584,280) 4,887,056 ---------- ---------- ------------ ------------ ----------- ---------- ------------ ------------ 457,887 228,006 4,382,112 14,875,844 (154,708) 252,993 4,461,232 6,129,754 ---------- ---------- ------------ ------------ ----------- ---------- ------------ ------------ 1,188,623 584,613 1,461,038 1,516,385 74,605 126,504 547,144 1,050,394 (331,938) (69,088) (17,346,869) (17,317,928) (898,616) (416,045) (10,248,767) (10,214,007) (77,930) -- (1,217,706) (1,785,610) (647) (38,911) (1,153,560) (1,888,749) 38,370 68,718 (367,612) (687,671) (8,367) (7,399) (202,883) (531,363) 3,137,547 3,472,784 (4,649,099) (6,812,974) (473,375) (420,785) (3,671,636) (3,619,738) ---------- ---------- ------------ ------------ ----------- ---------- ------------ ------------ 3,954,672 4,057,027 (22,120,248) (25,087,798) (1,306,400) (756,636) (14,729,702) (15,203,463) ---------- ---------- ------------ ------------ ----------- ---------- ------------ ------------ (1,401) (650) (16,508) (57,311) 662 (1,936) (15,842) (25,881) ---------- ---------- ------------ ------------ ----------- ---------- ------------ ------------ 4,411,158 4,284,383 (17,754,644) (10,269,265) (1,460,446) (505,579) (10,284,312) (9,099,590) 4,284,383 -- 112,463,521 122,732,786 4,818,586 5,324,165 76,269,370 85,368,960 ---------- ---------- ------------ ------------ ----------- ---------- ------------ ------------ $8,695,541 $4,284,383 $ 94,708,877 $112,463,521 $ 3,358,140 $4,818,586 $ 65,985,058 $ 76,269,370 ========== ========== ============ ============ =========== ========== ============ ============
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. F-17 STATEMENT OF CHANGES IN NET ASSETS (CONTINUED) For the years ended December 31, 2007 and December 31, 2006
MAINSTAY VP ALGER AMERICAN VALUE-- SMALL CAPITALIZATION-- INITIAL CLASS CLASS O SHARES -------------------------------- -------------------------------- 2007 2006 2007 2006 -------------------------------------------------------------------- INCREASE (DECREASE) IN NET ASSETS: Operations: Net investment income (loss)........................... $ 81,561 $ (421,367) $ (140,147) $ (140,391) Net realized gain (loss) on investments................ 2,776,171 2,172,872 217,219 (71,347) Realized gain distribution received.................... 3,245,539 650,698 -- -- Change in unrealized appreciation (depreciation) on investments.......................................... (5,434,882) 4,758,209 1,534,354 1,954,255 ----------- ----------- ----------- ----------- Net increase (decrease) in net assets resulting from operations........................................ 668,389 7,160,412 1,611,426 1,742,517 ----------- ----------- ----------- ----------- Contributions and (Withdrawals): Payments received from policyowners.................... 692,565 712,384 100,696 234,072 Policyowners' surrenders............................... (6,661,936) (6,236,180) (1,917,606) (1,711,163) Policyowners' annuity and death benefits............... (495,371) (908,669) (51,567) (203,223) Net transfers from (to) Fixed Account.................. (316,219) (209,430) (57,882) (60,352) Transfers between Investment Divisions................. (1,859,710) (1,454,507) (308,546) 575,925 ----------- ----------- ----------- ----------- Net contributions and (withdrawals).................. (8,640,671) (8,096,402) (2,234,905) (1,164,741) ----------- ----------- ----------- ----------- Increase (decrease) attributable to New York Life Insurance and Annuity Corporation charges retained by the Separate Account................................. (2,997) (25,908) (4,816) (8,088) ----------- ----------- ----------- ----------- Increase (decrease) in net assets................. (7,975,279) (961,898) (628,295) 569,688 NET ASSETS: Beginning of period.................................... 44,463,532 45,425,430 10,670,943 10,101,255 ----------- ----------- ----------- ----------- End of period.......................................... $36,488,253 $44,463,532 $10,042,648 $10,670,943 =========== =========== =========== ===========
FIDELITY(R) VIP FIDELITY(R) VIP EQUITY-INCOME-- MID CAP-- INITIAL CLASS SERVICE CLASS 2 -------------------------------- -------------------------------- 2007 2006 2007 2006 -------------------------------------------------------------------- INCREASE (DECREASE) IN NET ASSETS: Operations: Net investment income (loss)........................... $ 95,031 $ 527,813 $ (73,993) $ (102,685) Net realized gain (loss) on investments................ 520,116 447,078 345,771 482,888 Realized gain distribution received.................... 1,930,349 3,122,092 854,226 1,040,031 Change in unrealized appreciation (depreciation) on investments.......................................... (2,297,377) 340,666 55,709 (566,649) ----------- ----------- ----------- ---------- Net increase (decrease) in net assets resulting from operations........................................ 248,119 4,437,649 1,181,713 853,585 ----------- ----------- ----------- ---------- Contributions and (Withdrawals): Payments received from policyowners.................... 625,387 613,880 306,370 360,003 Policyowners' surrenders............................... (3,898,215) (3,697,614) (1,168,625) (997,638) Policyowners' annuity and death benefits............... (536,201) (442,038) (152,461) (2,275) Net transfers from (to) Fixed Account.................. (212,711) (90,684) 10,014 (17,191) Transfers between Investment Divisions................. (385,835) 120,007 (123,608) 642,610 ----------- ----------- ----------- ---------- Net contributions and (withdrawals).................. (4,407,575) (3,496,449) (1,128,310) (14,491) ----------- ----------- ----------- ---------- Increase (decrease) attributable to New York Life Insurance and Annuity Corporation charges retained by the Separate Account................................. (1,272) (16,453) (3,940) (4,485) ----------- ----------- ----------- ---------- Increase (decrease) in net assets................. (4,160,728) 924,747 49,463 834,609 NET ASSETS: Beginning of period.................................... 26,912,704 25,987,957 8,917,733 8,083,124 ----------- ----------- ----------- ---------- End of period.......................................... $22,751,976 $26,912,704 $ 8,967,196 $8,917,733 =========== =========== =========== ==========
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. F-18 NYLIAC VARIABLE ANNUITY SEPARATE ACCOUNT-I NON-QUALIFIED POLICIES
COLUMBIA SMALL CAP DREYFUS IP CVS CALVERT VALUE FUND, TECHNOLOGY FIDELITY(R) VIP SOCIAL BALANCED VARIABLE SERIES-- GROWTH-- CONTRAFUND(R)-- PORTFOLIO CLASS B INITIAL SHARES INITIAL CLASS ----------------------------- ----------------------------- ----------------------------- ----------------------------- 2007 2006 2007 2006 2007 2006 2007 2006 ----------------------------------------------------------------------------------------------------------------------- $ 18,659 $ 19,322 $ (21,363) $ (17,661) $ (12,018) $ (14,050) $ (225,623) $ (16,034) 118,806 (440) 84,637 99,155 84,617 20,670 2,368,433 2,261,050 104,243 38,755 222,651 55,324 -- -- 13,282,767 4,489,078 (205,775) 105,341 (349,670) 123,969 36,905 26,598 (7,113,876) (1,270,236) ---------- ---------- ---------- ---------- ---------- ---------- ----------- ----------- 35,933 162,978 (63,745) 260,787 109,504 33,218 8,311,701 5,463,858 ---------- ---------- ---------- ---------- ---------- ---------- ----------- ----------- 33,176 6,185 49,213 94,917 21,714 21,428 1,344,095 1,196,111 (342,065) (325,061) (432,960) (322,362) (88,586) (252,705) (7,948,728) (7,844,757) (5,204) (54,250) (7,549) (3,014) (9,588) (3,200) (364,844) (714,913) 2,120 833 11,151 14,261 3,371 1,348 (175,248) (28,280) (134,087) (136,355) (25,202) 1,014,974 92,800 (64,602) (1,926,717) 541,712 ---------- ---------- ---------- ---------- ---------- ---------- ----------- ----------- (446,060) (508,648) (405,347) 798,776 19,711 (297,731) (9,071,442) (6,850,127) ---------- ---------- ---------- ---------- ---------- ---------- ----------- ----------- (157) (692) 230 (958) (417) (150) (29,065) (27,647) ---------- ---------- ---------- ---------- ---------- ---------- ----------- ----------- (410,284) (346,362) (468,862) 1,058,605 128,798 (264,663) (788,806) (1,413,916) 2,245,502 2,591,864 2,186,042 1,127,437 1,016,508 1,281,171 55,525,296 56,939,212 ---------- ---------- ---------- ---------- ---------- ---------- ----------- ----------- $1,835,218 $2,245,502 $1,717,180 $2,186,042 $1,145,306 $1,016,508 $54,736,490 $55,525,296 ========== ========== ========== ========== ========== ========== =========== ===========
JANUS ASPEN JANUS ASPEN SERIES WORLDWIDE MFS(R) INVESTORS MFS(R) SERIES BALANCED-- GROWTH-- TRUST SERIES-- RESEARCH SERIES-- INSTITUTIONAL SHARES INSTITUTIONAL SHARES INITIAL CLASS INITIAL CLASS ----------------------------- ----------------------------- ----------------------------- ----------------------------- 2007 2006 2007 2006 2007 2006 2007 2006 ----------------------------------------------------------------------------------------------------------------------- $ 429,699 $ 308,697 $ (159,082) $ 123,400 $ (5,543) $ (9,689) $ (9,609) $ (13,384) 691,314 (599,793) (2,802,536) (6,902,349) 93,113 5,608 72,958 (30,986) -- -- -- -- 10,434 -- -- -- 2,065,132 3,755,693 5,305,460 11,203,679 5,873 136,448 123,806 185,925 ----------- ----------- ----------- ----------- ---------- ---------- ---------- ---------- 3,186,145 3,464,597 2,343,842 4,424,730 103,877 132,367 187,155 141,555 ----------- ----------- ----------- ----------- ---------- ---------- ---------- ---------- 812,060 834,362 541,717 474,982 45,966 27,021 15,417 15,547 (5,365,867) (5,582,826) (3,710,234) (4,565,480) (302,863) (178,554) (281,701) (238,611) (326,514) (698,636) (331,921) (459,253) (3,188) -- -- (11,183) (241,230) (246,308) (205,285) (217,307) 531 (13,950) (3,584) 4,254 (1,709,948) (2,265,273) (1,260,823) (2,837,990) 35,770 (67,433) (42,996) (115,609) ----------- ----------- ----------- ----------- ---------- ---------- ---------- ---------- (6,831,499) (7,958,681) (4,966,546) (7,605,048) (223,784) (232,916) (312,864) (345,602) ----------- ----------- ----------- ----------- ---------- ---------- ---------- ---------- (10,862) (13,398) (9,302) (14,205) (339) (536) (638) (678) ----------- ----------- ----------- ----------- ---------- ---------- ---------- ---------- (3,656,216) (4,507,482) (2,632,006) (3,194,523) (120,246) (101,085) (126,347) (204,725) 37,741,916 42,249,398 28,916,421 32,110,944 1,220,938 1,322,023 1,681,453 1,886,178 ----------- ----------- ----------- ----------- ---------- ---------- ---------- ---------- $34,085,700 $37,741,916 $26,284,415 $28,916,421 $1,100,692 $1,220,938 $1,555,106 $1,681,453 =========== =========== =========== =========== ========== ========== ========== ==========
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. F-19 STATEMENT OF CHANGES IN NET ASSETS (CONTINUED) For the years ended December 31, 2007 and December 31, 2006
MFS(R) NEUBERGER BERMAN UTILITIES SERIES-- AMT MID-CAP SERVICE CLASS GROWTH PORTFOLIO--CLASS S -------------------------------- -------------------------------- 2007 2006 2007 2006 -------------------------------------------------------------------- INCREASE (DECREASE) IN NET ASSETS: Operations: Net investment income (loss)........................... $ (105,535) $ 57,015 $ (12,359) $ (7,801) Net realized gain (loss) on investments................ 669,018 419,449 69,879 59,168 Realized gain distribution received.................... 1,226,695 412,402 -- -- Change in unrealized appreciation (depreciation) on investments.......................................... 2,392,203 2,085,789 97,234 9,606 ----------- ----------- ---------- -------- Net increase (decrease) in net assets resulting from operations........................................ 4,182,381 2,974,655 154,754 60,973 ----------- ----------- ---------- -------- Contributions and (Withdrawals): Payments received from policyowners.................... 1,548,280 534,428 43,076 13,787 Policyowners' surrenders............................... (1,796,235) (1,457,146) (55,782) (28,383) Policyowners' annuity and death benefits............... (178,321) (62,924) (387) (3,377) Net transfers from (to) Fixed Account.................. 173,329 61,792 3,373 (67) Transfers between Investment Divisions................. 4,622,442 2,472,001 466,206 35,723 ----------- ----------- ---------- -------- Net contributions and (withdrawals).................. 4,369,495 1,548,151 456,486 17,683 ----------- ----------- ---------- -------- Increase (decrease) attributable to New York Life Insurance and Annuity Corporation charges retained by the Separate Account................................. (10,549) (9,980) (527) (291) ----------- ----------- ---------- -------- Increase (decrease) in net assets................. 8,541,327 4,512,826 610,713 78,365 NET ASSETS: Beginning of period.................................... 14,050,512 9,537,686 603,612 525,247 ----------- ----------- ---------- -------- End of period.......................................... $22,591,839 $14,050,512 $1,214,325 $603,612 =========== =========== ========== ========
VAN KAMPEN VICTORY UIF VIF EMERGING MARKETS DIVERSIFIED STOCK-- EQUITY--CLASS I CLASS A SHARES -------------------------------- -------------------------------- 2007 2006 2007 2006 -------------------------------------------------------------------- INCREASE (DECREASE) IN NET ASSETS: Operations: Net investment income (loss)........................... $ (128,376) $ (60,157) $ (8,250) $ (9,652) Net realized gain (loss) on investments................ 1,774,314 1,058,645 70,955 25,052 Realized gain distribution received.................... 1,644,585 261,022 106,533 27,920 Change in unrealized appreciation (depreciation) on investments.......................................... 1,512,315 2,022,555 (60,817) 65,639 ----------- ----------- ---------- ---------- Net increase (decrease) in net assets resulting from operations........................................ 4,802,838 3,282,065 108,421 108,959 ----------- ----------- ---------- ---------- Contributions and (Withdrawals): Payments received from policyowners.................... 500,369 213,375 11,965 20,234 Policyowners' surrenders............................... (1,737,732) (1,166,020) (271,587) (149,913) Policyowners' annuity and death benefits............... (71,720) (97,464) (388) (1,162) Net transfers from (to) Fixed Account.................. (35,116) 98,803 1,803 (8,333) Transfers between Investment Divisions................. 1,073,160 1,398,746 202,172 470,928 ----------- ----------- ---------- ---------- Net contributions and (withdrawals).................. (271,039) 447,440 (56,035) 331,754 ----------- ----------- ---------- ---------- Increase (decrease) attributable to New York Life Insurance and Annuity Corporation charges retained by the Separate Account................................. (17,664) (13,333) (327) (385) ----------- ----------- ---------- ---------- Increase (decrease) in net assets................. 4,514,135 3,716,172 52,059 440,328 NET ASSETS: Beginning of period.................................... 12,849,664 9,133,492 1,178,366 738,038 ----------- ----------- ---------- ---------- End of period.......................................... $17,363,799 $12,849,664 $1,230,425 $1,178,366 =========== =========== ========== ==========
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. F-20 NYLIAC VARIABLE ANNUITY SEPARATE ACCOUNT-I NON-QUALIFIED POLICIES
ROYCE ROYCE MICRO-CAP SMALL-CAP T. ROWE PRICE VAN ECK PORTFOLIO-- PORTFOLIO-- EQUITY INCOME WORLDWIDE INVESTMENT CLASS INVESTMENT CLASS PORTFOLIO HARD ASSETS ----------------------------- ----------------------------- ----------------------------- ----------------------------- 2007 2006 2007 2006 2007 2006 2007 2006 ----------------------------------------------------------------------------------------------------------------------- $ 5,932 $ (12,254) $ (19,114) $ (13,687) $ 67,820 $ 45,469 $ (185,696) $ (142,487) 20,785 41,989 54,960 17,153 1,234,360 595,579 1,247,090 1,175,125 203,416 89,609 64,596 62,677 974,047 477,749 1,680,944 528,303 (192,422) 30,928 (153,491) 55,589 (1,886,057) 1,667,185 2,842,128 409,092 ---------- ---------- ---------- ---------- ----------- ----------- ----------- ----------- 37,711 150,272 (53,049) 121,732 390,170 2,785,982 5,584,466 1,970,033 ---------- ---------- ---------- ---------- ----------- ----------- ----------- ----------- 105,179 111,968 41,708 62,276 535,634 395,038 529,300 614,864 (212,827) (165,107) (256,220) (213,758) (2,933,596) (2,970,878) (1,793,221) (1,323,663) (34,323) -- (36,892) (8,423) (205,864) (116,557) (198,085) (28,570) 10,293 21,639 7,495 10,783 (8,696) 62,806 62,662 112,741 719,572 1,347,278 283,798 890,586 86,915 697,852 2,117,308 3,298,399 ---------- ---------- ---------- ---------- ----------- ----------- ----------- ----------- 587,894 1,315,778 39,889 741,464 (2,525,607) (1,931,739) 717,964 2,673,771 ---------- ---------- ---------- ---------- ----------- ----------- ----------- ----------- (369) (550) 142 (502) (1,642) (10,163) (16,852) (11,297) ---------- ---------- ---------- ---------- ----------- ----------- ----------- ----------- 625,236 1,465,500 (13,018) 862,694 (2,137,079) 844,080 6,285,578 4,632,507 1,777,587 312,087 1,390,975 528,281 17,858,172 17,014,092 12,608,163 7,975,656 ---------- ---------- ---------- ---------- ----------- ----------- ----------- ----------- $2,402,823 $1,777,587 $1,377,957 $1,390,975 $15,721,093 $17,858,172 $18,893,741 $12,608,163 ========== ========== ========== ========== =========== =========== =========== ===========
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. F-21 STATEMENT OF ASSETS AND LIABILITIES As of December 31, 2007
MAINSTAY VP MAINSTAY VP MAINSTAY VP CAPITAL BALANCED-- BOND-- APPRECIATION-- SERVICE CLASS INITIAL CLASS INITIAL CLASS -------------------------------------------------- ASSETS: Investment, at net asset value...... $7,367,009 $22,916,845 $117,341,340 Dividends due and accrued........... -- -- -- Net receivable from (payable to) New York Life Insurance and Annuity Corporation...................... 636 2,509 42,217 LIABILITIES: Liability to New York Life Insurance and Annuity Corporation for: Mortality and expense risk charges.......................... 23,251 72,675 377,242 Administrative charges........... 1,938 6,056 31,437 ---------- ----------- ------------ Total net assets............... $7,342,456 $22,840,623 $116,974,878 ========== =========== ============ TOTAL NET ASSETS REPRESENTED BY: Net Assets of Policyowners.......... $7,342,456 $22,840,623 $116,974,878 ========== =========== ============ Variable accumulation unit value.......................... $ 11.55 $ 18.57 $ 26.14 ========== =========== ============ Identified Cost of Investment......... $7,313,496 $22,284,431 $132,198,228 ========== =========== ============
MAINSTAY VP MAINSTAY VP HIGH YIELD MAINSTAY VP GROWTH CORPORATE ICAP SELECT ALLOCATION-- BOND-- EQUITY-- SERVICE CLASS INITIAL CLASS INITIAL CLASS -------------------------------------------------- ASSETS: Investment, at net asset value...... $5,382,710 $86,033,983 $11,313,284 Dividends due and accrued........... -- -- -- Net receivable from (payable to) New York Life Insurance and Annuity Corporation...................... 5,697 (60,794) 23,173 LIABILITIES: Liability to New York Life Insurance and Annuity Corporation for: Mortality and expense risk charges.......................... 16,131 274,220 35,577 Administrative charges........... 1,344 22,852 2,965 ---------- ----------- ----------- Total net assets............... $5,370,932 $85,676,117 $11,297,915 ========== =========== =========== TOTAL NET ASSETS REPRESENTED BY: Net Assets of Policyowners.......... $5,370,932 $85,676,117 $11,297,915 ========== =========== =========== Variable accumulation unit value.......................... $ 11.97 $ 26.15 $ 15.10 ========== =========== =========== Identified Cost of Investment......... $5,219,793 $76,811,965 $10,444,978 ========== =========== ===========
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. F-22 NYLIAC VARIABLE ANNUITY SEPARATE ACCOUNT-II TAX-QUALIFIED POLICIES
MAINSTAY VP MAINSTAY VP MAINSTAY VP MAINSTAY VP MAINSTAY VP COMMON CONSERVATIVE MAINSTAY VP DEVELOPING FLOATING MAINSTAY VP CASH STOCK-- ALLOCATION-- CONVERTIBLE-- GROWTH-- RATE-- GOVERNMENT-- MANAGEMENT INITIAL CLASS SERVICE CLASS INITIAL CLASS INITIAL CLASS SERVICE CLASS INITIAL CLASS -------------------------------------------------------------------------------------------------------------------------- $22,379,656 $69,838,246 $5,148,771 $15,734,172 $3,729,514 $7,605,023 $19,529,367 76,975 -- -- -- -- 38,891 -- (5,664) 100,782 335 14,017 32,978 468 4,009 65,241 221,304 14,537 49,800 12,021 25,122 62,646 5,437 18,442 1,211 4,150 1,002 2,093 5,221 ----------- ----------- ---------- ----------- ---------- ---------- ----------- $22,380,289 $69,699,282 $5,133,358 $15,694,239 $3,749,469 $7,617,167 $19,465,509 =========== =========== ========== =========== ========== ========== =========== $22,380,289 $69,699,282 $5,133,358 $15,694,239 $3,749,469 $7,617,167 $19,465,509 =========== =========== ========== =========== ========== ========== =========== $ 1.44 $ 32.60 $ 11.19 $ 22.92 $ 15.88 $ 10.65 $ 18.80 =========== =========== ========== =========== ========== ========== =========== $22,379,768 $72,959,817 $5,057,011 $12,210,546 $2,680,986 $7,887,572 $19,437,168 =========== =========== ========== =========== ========== ========== ===========
MAINSTAY VP MAINSTAY VP MAINSTAY VP MAINSTAY VP MAINSTAY VP MAINSTAY VP MAINSTAY VP MODERATE INTERNATIONAL LARGE CAP MID CAP MID CAP MID CAP MODERATE GROWTH EQUITY-- GROWTH-- CORE-- GROWTH-- VALUE-- ALLOCATION-- ALLOCATION-- INITIAL CLASS INITIAL CLASS INITIAL CLASS INITIAL CLASS INITIAL CLASS SERVICE CLASS SERVICE CLASS -------------------------------------------------------------------------------------------------------------------------- $23,090,029 $7,748,439 $10,507,128 $14,372,589 $14,781,639 $12,229,765 $12,706,919 -- -- -- -- -- -- -- (1,915) 718 (14,717) 359 (512) 3,458 7,689 73,851 24,588 33,136 45,822 46,157 35,819 39,151 6,154 2,049 2,761 3,819 3,846 2,985 3,263 ----------- ---------- ----------- ----------- ----------- ----------- ----------- $23,008,109 $7,722,520 $10,456,514 $14,323,307 $14,731,124 $12,194,419 $12,672,194 =========== ========== =========== =========== =========== =========== =========== $23,008,109 $7,722,520 $10,456,514 $14,323,307 $14,731,124 $12,194,419 $12,672,194 =========== ========== =========== =========== =========== =========== =========== $ 25.24 $ 16.14 $ 17.74 $ 16.98 $ 13.98 $ 11.56 $ 11.89 =========== ========== =========== =========== =========== =========== =========== $18,262,881 $5,951,050 $ 9,969,739 $11,402,916 $14,527,660 $11,794,282 $12,071,382 =========== ========== =========== =========== =========== =========== ===========
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. F-23 STATEMENT OF ASSETS AND LIABILITIES (CONTINUED) As of December 31, 2007
MAINSTAY VP MAINSTAY VP MAINSTAY VP S&P 500 SMALL CAP TOTAL INDEX-- GROWTH-- RETURN-- INITIAL CLASS INITIAL CLASS INITIAL CLASS -------------------------------------------------- ASSETS: Investment, at net asset value...... $133,181,924 $4,476,427 $75,748,863 Dividends due and accrued........... -- -- -- Net receivable from (payable to) New York Life Insurance and Annuity Corporation...................... 16,528 1,308 (16,367) LIABILITIES: Liability to New York Life Insurance and Annuity Corporation for: Mortality and expense risk charges.......................... 422,402 14,117 240,713 Administrative charges........... 35,200 1,176 20,059 ------------ ---------- ----------- Total net assets............... $132,740,850 $4,462,442 $75,471,724 ============ ========== =========== TOTAL NET ASSETS REPRESENTED BY: Net Assets of Policyowners.......... $132,740,850 $4,462,442 $75,471,724 ============ ========== =========== Variable accumulation unit value.......................... $ 34.75 $ 10.86 $ 26.08 ============ ========== =========== Identified Cost of Investment......... $113,444,407 $4,502,525 $79,212,118 ============ ========== ===========
JANUS ASPEN JANUS ASPEN SERIES FIDELITY(R) SERIES WORLDWIDE VIP BALANCED-- GROWTH-- MID CAP-- INSTITUTIONAL INSTITUTIONAL SERVICE CLASS 2 SHARES SHARES ------------------------------------------------------ ASSETS: Investment, at net asset value...... $15,364,934 $61,341,457 $40,332,772 Dividends due and accrued........... -- -- -- Net receivable from (payable to) New York Life Insurance and Annuity Corporation...................... (3,602) 72,709 (9,052) LIABILITIES: Liability to New York Life Insurance and Annuity Corporation for: Mortality and expense risk charges.......................... 48,527 196,651 128,617 Administrative charges........... 4,044 16,388 10,718 ----------- ----------- ----------- Total net assets............... $15,308,761 $61,201,127 $40,184,385 =========== =========== =========== TOTAL NET ASSETS REPRESENTED BY: Net Assets of Policyowners.......... $15,308,761 $61,201,127 $40,184,385 =========== =========== =========== Variable accumulation unit value.......................... $ 20.70 $ 26.10 $ 20.24 =========== =========== =========== Identified Cost of Investment......... $13,750,476 $50,391,347 $48,505,557 =========== =========== ===========
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. F-24 NYLIAC VARIABLE ANNUITY SEPARATE ACCOUNT-II TAX-QUALIFIED POLICIES
ALGER COLUMBIA AMERICAN CVS SMALL CAP FIDELITY(R) FIDELITY(R) SMALL CALVERT VALUE FUND, DREYFUS IP VIP VIP MAINSTAY VP CAPITALIZA- SOCIAL VARIABLE TECHNOLOGY CONTRA- EQUITY- VALUE-- TION-- BALANCED SERIES-- GROWTH-- FUND(R)-- INCOME-- INITIAL CLASS CLASS O SHARES PORTFOLIO CLASS B INITIAL SHARES INITIAL CLASS INITIAL CLASS ------------------------------------------------------------------------------------------------------------------------------ $47,256,925 $15,158,278 $4,547,857 $2,229,649 $2,299,480 $87,088,110 $30,394,670 -- -- -- -- -- -- -- (49,953) (54,426) (4,024) (5,505) (974) 47,828 (3,796) 147,987 50,059 14,978 7,215 7,446 282,662 95,125 12,332 4,172 1,248 601 621 23,555 7,927 ----------- ----------- ---------- ---------- ---------- ----------- ----------- $47,046,653 $15,049,621 $4,527,607 $2,216,328 $2,290,439 $86,829,721 $30,287,822 =========== =========== ========== ========== ========== =========== =========== $47,046,653 $15,049,621 $4,527,607 $2,216,328 $2,290,439 $86,829,721 $30,287,822 =========== =========== ========== ========== ========== =========== =========== $ 25.50 $ 15.80 $ 21.15 $ 12.47 $ 10.29 $ 30.54 $ 22.19 =========== =========== ========== ========== ========== =========== =========== $40,048,734 $10,174,467 $4,248,248 $2,421,099 $1,924,965 $81,807,020 $30,008,784 =========== =========== ========== ========== ========== =========== ===========
NEUBERGER BERMAN ROYCE ROYCE MFS(R) MFS(R) MFS(R) AMT MID-CAP MICRO-CAP SMALL-CAP T. ROWE PRICE INVESTORS RESEARCH UTILITIES GROWTH PORTFOLIO-- PORTFOLIO-- EQUITY TRUST SERIES-- SERIES-- SERIES-- PORTFOLIO-- INVESTMENT INVESTMENT INCOME INITIAL CLASS INITIAL CLASS SERVICE CLASS CLASS S CLASS CLASS PORTFOLIO -------------------------------------------------------------------------------------------------------------------------- $1,580,125 $2,366,425 $32,072,756 $1,243,469 $2,799,152 $1,766,506 $24,024,400 -- -- -- -- -- -- -- (2,977) 192 33,226 1,460 (5,988) 879 (5,614) 5,180 7,614 102,796 3,894 8,982 5,462 76,448 432 635 8,566 325 748 455 6,371 ---------- ---------- ----------- ---------- ---------- ---------- ----------- $1,571,536 $2,358,368 $31,994,620 $1,240,710 $2,783,434 $1,761,468 $23,935,967 ========== ========== =========== ========== ========== ========== =========== $1,571,536 $2,358,368 $31,994,620 $1,240,710 $2,783,434 $1,761,468 $23,935,967 ========== ========== =========== ========== ========== ========== =========== $ 12.28 $ 13.01 $ 24.16 $ 17.11 $ 14.76 $ 12.38 $ 17.29 ========== ========== =========== ========== ========== ========== =========== $1,163,050 $1,711,322 $24,254,224 $1,069,889 $3,008,784 $1,855,724 $21,939,432 ========== ========== =========== ========== ========== ========== ===========
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. F-25 STATEMENT OF ASSETS AND LIABILITIES (CONTINUED) As of December 31, 2007
VAN KAMPEN UIF VICTORY VAN ECK EMERGING VIF WORLDWIDE MARKETS DIVERSIFIED HARD EQUITY-- STOCK--CLASS A ASSETS CLASS I SHARES -------------------------------------------------- ASSETS: Investment, at net asset value...... $24,165,355 $22,828,518 $1,593,056 Dividends due and accrued........... -- -- -- Net receivable from (payable to) New York Life Insurance and Annuity Corporation...................... 33,030 16,713 775 LIABILITIES: Liability to New York Life Insurance and Annuity Corporation for: Mortality and expense risk charges.......................... 79,038 79,682 4,992 Administrative charges........... 6,587 6,640 416 ----------- ----------- ---------- Total net assets............... $24,112,760 $22,758,909 $1,588,423 =========== =========== ========== TOTAL NET ASSETS REPRESENTED BY: Net Assets of Policyowners.......... $24,112,760 $22,758,909 $1,588,423 =========== =========== ========== Variable accumulation unit value.......................... $ 40.34 $ 31.74 $ 14.48 =========== =========== ========== Identified Cost of Investment......... $16,929,689 $12,966,175 $1,475,086 =========== =========== ==========
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. F-26 NYLIAC VARIABLE ANNUITY SEPARATE ACCOUNT-II TAX-QUALIFIED POLICIES (THIS PAGE INTENTIONALLY LEFT BLANK) F-27 STATEMENT OF OPERATIONS For the year ended December 31, 2007
MAINSTAY VP MAINSTAY VP MAINSTAY VP CAPITAL BALANCED-- BOND-- APPRECIATION-- SERVICE CLASS INITIAL CLASS INITIAL CLASS ----------------------------------------------- INVESTMENT INCOME (LOSS): Dividend income....................... $ 148,275 $ 831,820 $ 163,259 Mortality and expense risk charges.... (92,230) (281,717) (1,493,738) Administrative charges................ (7,686) (23,476) (124,478) ----------- ----------- ------------ Net investment income (loss)..... 48,359 526,627 (1,454,957) ----------- ----------- ------------ REALIZED AND UNREALIZED GAIN (LOSS): Proceeds from sale of investments..... 1,786,579 4,134,485 25,591,437 Cost of investments sold.............. (1,622,191) (4,052,732) (22,249,328) ----------- ----------- ------------ Net realized gain (loss) on investments................... 164,388 81,753 3,342,109 Realized gain distribution received... 267,629 -- -- Change in unrealized appreciation (depreciation) on investments........................ (391,143) 560,850 11,354,589 ----------- ----------- ------------ Net gain (loss) on investments... 40,874 642,603 14,696,698 ----------- ----------- ------------ Net increase (decrease) in net assets resulting from operations............. $ 89,233 $ 1,169,230 $ 13,241,741 =========== =========== ============
MAINSTAY VP MAINSTAY VP HIGH YIELD MAINSTAY VP GROWTH CORPORATE ICAP SELECT ALLOCATION-- BOND-- EQUITY-- SERVICE CLASS INITIAL CLASS INITIAL CLASS ----------------------------------------------- INVESTMENT INCOME (LOSS): Dividend income....................... $ 50,019 $ 5,928,976 $ 51,721 Mortality and expense risk charges.... (52,938) (1,122,955) (95,536) Administrative charges................ (4,412) (93,580) (7,961) ----------- ------------ ---------- Net investment income (loss)..... (7,331) 4,712,441 (51,776) ----------- ------------ ---------- REALIZED AND UNREALIZED GAIN (LOSS): Proceeds from sale of investments..... 1,217,068 15,585,591 1,238,182 Cost of investments sold.............. (1,047,106) (13,229,567) (883,486) ----------- ------------ ---------- Net realized gain (loss) on investments................... 169,692 2,356,024 354,696 Realized gain distribution received... 196,372 -- 341,731 Change in unrealized appreciation (depreciation) on investments........................ (13,423) (6,065,520) (325,003) ----------- ------------ ---------- Net gain (loss) on investments... 352,911 (3,709,496) 371,424 ----------- ------------ ---------- Net increase (decrease) in net assets resulting from operations............. $ 345,580 $ 1,002,945 $ 319,648 =========== ============ ==========
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. F-28 NYLIAC VARIABLE ANNUITY SEPARATE ACCOUNT-II TAX-QUALIFIED POLICIES
MAINSTAY VP MAINSTAY VP MAINSTAY VP MAINSTAY VP COMMON CONSERVATIVE MAINSTAY VP DEVELOPING MAINSTAY VP MAINSTAY VP CASH STOCK-- ALLOCATION-- CONVERTIBLE-- GROWTH-- FLOATING RATE-- GOVERNMENT-- MANAGEMENT INITIAL CLASS SERVICE CLASS INITIAL CLASS INITIAL CLASS SERVICE CLASS INITIAL CLASS ------------------------------------------------------------------------------------------------------------------ $ 927,209 $ 895,117 $ 126,520 $ 349,750 $ -- $ 507,965 $ 951,716 (235,771) (904,939) (43,863) (188,483) (38,223) (96,605) (244,349) (19,648) (75,412) (3,655) (15,707) (3,185) (8,050) (20,363) ------------ ------------ --------- ----------- --------- ----------- ----------- 671,790 (85,234) 79,002 145,560 (41,408) 403,310 687,004 ------------ ------------ --------- ----------- --------- ----------- ----------- 10,247,113 13,066,905 672,466 3,142,801 868,422 3,403,073 4,351,728 (10,247,219) (12,134,993) (613,558) (2,367,611) (513,703) (3,501,851) (4,423,983) ------------ ------------ --------- ----------- --------- ----------- ----------- (106) 931,912 58,908 775,190 354,719 (98,778) (72,255) -- 5,329,424 76,259 391,681 144,023 -- -- 205 (3,143,453) (17,444) 673,450 464,787 (269,184) 422,492 ------------ ------------ --------- ----------- --------- ----------- ----------- 99 3,117,883 117,723 1,840,321 963,529 (367,962) 350,237 ------------ ------------ --------- ----------- --------- ----------- ----------- $ 671,889 $ 3,032,649 $ 196,725 $ 1,985,881 $ 922,121 $ 35,348 $ 1,037,241 ============ ============ ========= =========== ========= =========== ===========
MAINSTAY VP MAINSTAY VP MAINSTAY VP MAINSTAY VP MAINSTAY VP MAINSTAY VP MAINSTAY VP INCOME & INTERNATIONAL LARGE CAP MID CAP MID CAP MID CAP MODERATE GROWTH-- EQUITY-- GROWTH-- CORE-- GROWTH-- VALUE-- ALLOCATION-- INITIAL CLASS INITIAL CLASS INITIAL CLASS INITIAL CLASS INITIAL CLASS INITIAL CLASS SERVICE CLASS ------------------------------------------------------------------------------------------------------------------ $ 122,549 $ 161,370 $ 1,442 $ 43,070 $ -- $ 164,499 $ 241,242 (41,831) (290,071) (87,247) (135,014) (180,851) (205,733) (109,320) (3,486) (24,172) (7,271) (11,251) (15,071) (17,144) (9,110) ----------- ----------- ----------- ----------- ----------- ----------- --------- 77,232 (152,873) (93,076) (103,195) (195,922) (58,378) 122,812 ----------- ----------- ----------- ----------- ----------- ----------- --------- 5,952,696 3,547,050 1,606,473 2,027,437 3,557,343 3,537,399 602,830 (5,660,323) (2,446,746) (1,766,588) (1,378,507) (2,104,334) (2,194,623) (540,599) ----------- ----------- ----------- ----------- ----------- ----------- --------- 292,373 1,100,304 (160,115) 648,930 1,453,009 1,342,776 62,231 801,117 1,497,078 -- 1,046,312 1,004,243 1,336,985 246,951 (1,222,627) (1,607,014) 1,567,083 (1,172,810) (234,615) (2,885,608) 135,031 ----------- ----------- ----------- ----------- ----------- ----------- --------- (129,137) 990,368 1,406,968 522,432 2,222,637 (205,847) 444,213 ----------- ----------- ----------- ----------- ----------- ----------- --------- $ (51,905) $ 837,495 $ 1,313,892 $ 419,237 $ 2,026,715 $ (264,225) $ 567,025 =========== =========== =========== =========== =========== =========== =========
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. F-29 STATEMENT OF OPERATIONS (CONTINUED) For the year ended December 31, 2007
MAINSTAY VP MODERATE MAINSTAY VP GROWTH MAINSTAY VP SMALL CAP ALLOCATION-- S&P 500 INDEX-- GROWTH-- SERVICE CLASS INITIAL CLASS INITIAL CLASS ----------------------------------------------- INVESTMENT INCOME (LOSS): Dividend income....................... $ 201,317 $ 2,214,950 $ -- Mortality and expense risk charges.... (131,675) (1,745,796) (64,731) Administrative charges................ (10,973) (145,483) (5,394) ----------- ------------ ----------- Net investment income (loss)..... 58,669 323,671 (70,125) ----------- ------------ ----------- REALIZED AND UNREALIZED GAIN (LOSS): Proceeds from sale of investments..... 1,438,730 27,698,930 1,827,129 Cost of investments sold.............. (1,250,202) (21,363,158) (1,431,272) ----------- ------------ ----------- Net realized gain (loss) on investments................... 188,528 6,335,772 395,857 Realized gain distribution received... 381,367 -- 352,156 Change in unrealized appreciation (depreciation) on investments........................ 156,317 (630,680) (861,012) ----------- ------------ ----------- Net gain (loss) on investments... 726,212 5,705,092 (112,999) ----------- ------------ ----------- Net increase (decrease) in net assets resulting from operations............. $ 784,881 $ 6,028,763 $ (183,124) =========== ============ ===========
FIDELITY(R) JANUS ASPEN VIP FIDELITY SERIES EQUITY- VIP BALANCED-- INCOME-- MID CAP-- INSTITUTIONAL INITIAL CLASS SERVICE CLASS 2 SHARES ----------------------------------------------- INVESTMENT INCOME (LOSS): Dividend income....................... $ 576,950 $ 74,661 $ 1,587,546 Mortality and expense risk charges.... (402,170) (181,716) (761,451) Administrative charges................ (33,514) (15,143) (63,454) ----------- ----------- ------------ Net investment income (loss)..... 141,266 (122,198) 762,641 ----------- ----------- ------------ REALIZED AND UNREALIZED GAIN (LOSS): Proceeds from sale of investments..... 5,450,349 2,936,957 11,639,724 Cost of investments sold.............. (4,754,935) (2,340,784) (11,067,807) ----------- ----------- ------------ Net realized gain (loss) on investments................... 695,414 596,173 571,917 Realized gain distribution received... 2,544,207 1,365,300 -- Change in unrealized appreciation (depreciation) on investments........................ (3,156,698) 102,865 4,245,577 ----------- ----------- ------------ Net gain (loss) on investments... 82,923 2,064,338 4,817,494 ----------- ----------- ------------ Net increase (decrease) in net assets resulting from operations............. $ 224,189 $ 1,942,140 $ 5,580,135 =========== =========== ============
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. F-30 NYLIAC VARIABLE ANNUITY SEPARATE ACCOUNT-II TAX-QUALIFIED POLICIES
COLUMBIA SMALL ALGER CVS CAP VALUE MAINSTAY VP AMERICAN CALVERT FUND, DREYFUS IP FIDELITY(R) TOTAL MAINSTAY VP SMALL SOCIAL VARIABLE TECHNOLOGY VIP RETURN-- VALUE-- CAPITALIZATION-- BALANCED SERIES-- GROWTH-- CONTRAFUND(R)-- INITIAL CLASS INITIAL CLASS CLASS O SHARES PORTFOLIO CLASS B INITIAL SHARES INITIAL CLASS ------------------------------------------------------------------------------------------------------------------ $ 1,737,564 $ 801,705 $ -- $ 111,692 $ 6,757 $ -- $ 786,248 (969,091) (629,197) (188,984) (61,715) (31,123) (27,505) (1,035,427) (80,757) (52,433) (15,749) (5,143) (2,593) (2,292) (86,286) ------------ ----------- ----------- ----------- --------- --------- ------------ 687,716 120,075 (204,733) 44,834 (26,959) (29,797) (335,465) ------------ ----------- ----------- ----------- --------- --------- ------------ 15,386,700 9,657,397 3,223,326 1,110,589 858,806 559,509 13,750,679 (13,969,947) (7,221,945) (2,708,169) (1,108,912) (732,290) (476,997) (9,586,674) ------------ ----------- ----------- ----------- --------- --------- ------------ 1,416,753 2,435,452 515,157 1,677 126,516 82,512 4,164,005 5,262,654 4,149,323 -- 255,601 272,727 -- 21,013,955 (2,435,819) (6,002,119) 2,010,849 (228,666) (452,605) 226,012 (11,942,653) ------------ ----------- ----------- ----------- --------- --------- ------------ 4,243,588 582,656 2,526,006 28,612 (53,362) 308,524 13,235,307 ------------ ----------- ----------- ----------- --------- --------- ------------ $ 4,931,304 $ 702,731 $ 2,321,273 $ 73,446 $ (80,321) $ 278,727 $ 12,899,842 ============ =========== =========== =========== ========= ========= ============
JANUS ASPEN NEUBERGER SERIES MFS(R) BERMAN ROYCE ROYCE WORLDWIDE INVESTORS MFS(R) MFS(R) AMT MID-CAP MICRO-CAP SMALL-CAP GROWTH-- TRUST RESEARCH UTILITIES GROWTH PORTFOLIO-- PORTFOLIO-- INSTITUTIONAL SERIES-- SERIES-- SERIES-- PORTFOLIO-- INVESTMENT INVESTMENT SHARES INITIAL CLASS INITIAL CLASS SERVICE CLASS CLASS S CLASS CLASS ------------------------------------------------------------------------------------------------------------------ $ 321,032 $ 13,650 $ 16,847 $ 216,088 $ -- $ 42,179 $ 925 (522,039) (20,195) (29,205) (335,734) (13,165) (34,215) (22,281) (43,503) (1,683) (2,434) (27,978) (1,097) (2,851) (1,857) ------------ --------- --------- ----------- --------- --------- --------- (244,510) (8,228) (14,792) (147,624) (14,262) 5,113 (23,213) ------------ --------- --------- ----------- --------- --------- --------- 8,792,459 648,088 513,093 3,104,018 409,877 981,158 396,656 (12,119,765) (569,546) (447,757) (2,014,218) (282,357) (894,121) (341,211) ------------ --------- --------- ----------- --------- --------- --------- (3,327,306) 78,542 65,336 1,089,800 127,520 87,037 55,445 -- 13,844 -- 1,855,322 -- 240,346 80,505 7,196,071 60,722 221,250 3,362,819 67,725 (265,487) (174,584) ------------ --------- --------- ----------- --------- --------- --------- 3,868,765 153,108 286,586 6,307,941 195,245 61,896 (38,634) ------------ --------- --------- ----------- --------- --------- --------- $ 3,624,255 $ 144,880 $ 271,794 $ 6,160,317 $ 180,983 $ 67,009 $ (61,847) ============ ========= ========= =========== ========= ========= =========
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. F-31 STATEMENT OF OPERATIONS (CONTINUED) For the year ended December 31, 2007
VAN KAMPEN UIF T. ROWE PRICE VAN ECK EMERGING EQUITY WORLDWIDE MARKETS INCOME HARD EQUITY-- PORTFOLIO ASSETS CLASS I ----------------------------------------------- INVESTMENT INCOME (LOSS): Dividend income....................... $ 436,298 $ 23,518 $ 88,283 Mortality and expense risk charges.... (307,604) (242,258) (238,860) Administrative charges................ (25,634) (20,188) (19,905) ----------- ----------- ----------- Net investment income (loss)..... 103,060 (238,928) (170,482) ----------- ----------- ----------- REALIZED AND UNREALIZED GAIN (LOSS): Proceeds from sale of investments..... 4,216,420 4,115,983 3,978,312 Cost of investments sold.............. (3,041,412) (2,216,416) (1,580,537) ----------- ----------- ----------- Net realized gain (loss) on investments................... 1,175,008 1,899,567 2,397,775 Realized gain distribution received... 1,462,492 2,294,277 2,252,297 Change in unrealized appreciation (depreciation) on investments........................ (2,203,730) 3,380,714 2,033,039 ----------- ----------- ----------- Net gain (loss) on investments... 433,770 7,574,558 6,683,111 ----------- ----------- ----------- Net increase (decrease) in net assets resulting from operations............. $ 536,830 $ 7,335,630 $ 6,512,629 =========== =========== ===========
VICTORY VIF DIVERSIFIED STOCK-- CLASS A SHARES -------------- INVESTMENT INCOME (LOSS): Dividend income....................... $ 10,131 Mortality and expense risk charges.... (18,706) Administrative charges................ (1,559) --------- Net investment income (loss)..... (10,134) --------- REALIZED AND UNREALIZED GAIN (LOSS): Proceeds from sale of investments..... 305,223 Cost of investments sold.............. (246,152) --------- Net realized gain (loss) on investments................... 59,071 Realized gain distribution received... 126,374 Change in unrealized appreciation (depreciation) on investments........................ (48,426) --------- Net gain (loss) on investments... 137,019 --------- Net increase (decrease) in net assets resulting from operations............. $ 126,885 =========
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. F-32 NYLIAC VARIABLE ANNUITY SEPARATE ACCOUNT-II TAX-QUALIFIED POLICIES (THIS PAGE INTENTIONALLY LEFT BLANK) F-33 STATEMENT OF CHANGES IN NET ASSETS For the years ended December 31, 2007 and December 31, 2006
MAINSTAY VP MAINSTAY VP BALANCED-- BOND-- SERVICE CLASS INITIAL CLASS -------------------------------- -------------------------------- 2007 2006 2007 2006 -------------------------------------------------------------------- INCREASE (DECREASE) IN NET ASSETS: Operations: Net investment income (loss)........................... $ 48,359 $ 42,917 $ 526,627 $ (51,182) Net realized gain (loss) on investments................ 164,388 77,213 81,753 (77,156) Realized gain distribution received.................... 267,629 71,456 -- -- Change in unrealized appreciation (depreciation) on investments.......................................... (391,143) 398,987 560,850 903,139 ----------- ---------- ----------- ----------- Net increase (decrease) in net assets resulting from operations........................................ 89,233 590,573 1,169,230 774,801 ----------- ---------- ----------- ----------- Contributions and (Withdrawals): Payments received from policyowners.................... 492,031 453,901 1,053,533 1,029,877 Policyowners' surrenders............................... (1,212,536) (841,262) (4,001,372) (4,167,065) Policyowners' annuity and death benefits............... (34,424) (25,158) (57,671) (139,079) Net transfers from (to) Fixed Account.................. (10,679) 12,919 (126,255) (343,944) Transfers between Investment Divisions................. 482,812 1,806,793 200,240 (1,340,781) ----------- ---------- ----------- ----------- Net contributions and (withdrawals).................. (282,796) 1,407,193 (2,931,525) (4,960,992) ----------- ---------- ----------- ----------- Increase (decrease) attributable to New York Life Insurance and Annuity Corporation charges retained by the Separate Account................................. (319) (2,155) (3,652) (2,744) ----------- ---------- ----------- ----------- Increase (decrease) in net assets................. (193,882) 1,995,611 (1,765,947) (4,188,935) NET ASSETS: Beginning of period.................................... 7,536,338 5,540,727 24,606,570 28,795,505 ----------- ---------- ----------- ----------- End of period.......................................... $ 7,342,456 $7,536,338 $22,840,623 $24,606,570 =========== ========== =========== ===========
MAINSTAY VP MAINSTAY VP DEVELOPING CONVERTIBLE-- GROWTH-- INITIAL CLASS INITIAL CLASS -------------------------------- -------------------------------- 2007 2006 2007 2006 -------------------------------------------------------------------- INCREASE (DECREASE) IN NET ASSETS: Operations: Net investment income (loss)........................... $ 145,560 $ 162,849 $ (41,408) $ (40,211) Net realized gain (loss) on investments................ 775,190 299,642 354,719 284,727 Realized gain distribution received.................... 391,681 -- 144,023 -- Change in unrealized appreciation (depreciation) on investments.......................................... 673,450 939,478 464,787 26,300 ----------- ----------- ---------- ---------- Net increase (decrease) in net assets resulting from operations........................................ 1,985,881 1,401,969 922,121 270,816 ----------- ----------- ---------- ---------- Contributions and (Withdrawals): Payments received from policyowners.................... 660,274 640,634 107,164 114,201 Policyowners' surrenders............................... (2,443,023) (2,355,398) (311,076) (325,835) Policyowners' annuity and death benefits............... (101,914) (75,030) (2,787) (487) Net transfers from (to) Fixed Account.................. (39,860) (81,808) (96,428) (17,484) Transfers between Investment Divisions................. (273,527) (223,873) 202,839 216,018 ----------- ----------- ---------- ---------- Net contributions and (withdrawals).................. (2,198,050) (2,095,475) (100,288) (13,587) ----------- ----------- ---------- ---------- Increase (decrease) attributable to New York Life Insurance and Annuity Corporation charges retained by the Separate Account................................. (6,868) (6,556) (2,903) (1,524) ----------- ----------- ---------- ---------- Increase (decrease) in net assets................. (219,037) (700,062) 818,930 255,705 NET ASSETS: Beginning of period.................................... 15,913,276 16,613,338 2,930,539 2,674,834 ----------- ----------- ---------- ---------- End of period.......................................... $15,694,239 $15,913,276 $3,749,469 $2,930,539 =========== =========== ========== ==========
(a) For the period February 13, 2006 (Commencement of Investments) through December 31, 2006. The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. F-34 NYLIAC VARIABLE ANNUITY SEPARATE ACCOUNT-II TAX-QUALIFIED POLICIES
MAINSTAY VP MAINSTAY VP MAINSTAY VP CONSERVATIVE CAPITAL APPRECIATION-- MAINSTAY VP COMMON STOCK-- ALLOCATION-- INITIAL CLASS CASH MANAGEMENT INITIAL CLASS SERVICE CLASS ----------------------------- ----------------------------- ----------------------------- ----------------------------- 2007 2006 2007 2006 2007 2006 2007 2006(A) ----------------------------------------------------------------------------------------------------------------------- $ (1,454,957) $ (1,322,930) $ 671,790 $ 619,441 $ (85,234) $ (596,691) $ 79,002 $ 7,485 3,342,109 5,327,993 (106) (414) 931,912 47,881 58,908 12,125 -- -- -- -- 5,329,424 1,695,372 76,259 7,055 11,354,589 45,598 205 (139) (3,143,453) 9,767,127 (17,444) 109,205 ------------ ------------ ----------- ----------- ------------ ------------ ---------- ---------- 13,241,741 4,050,661 671,889 618,888 3,032,649 10,913,689 196,725 135,870 ------------ ------------ ----------- ----------- ------------ ------------ ---------- ---------- 4,217,737 4,856,540 2,241,603 2,219,349 2,359,660 2,409,383 549,848 226,814 (16,481,226) (19,866,159) (8,239,942) (5,670,261) (9,819,278) (9,563,953) (464,481) (104,428) (561,401) (360,453) (147,065) (78,603) (126,713) (563,803) -- -- (637,566) (1,673,057) (350,042) (564,435) (432,732) (807,532) 18,811 40,359 (10,143,221) (11,155,569) 9,511,531 2,534,330 (3,499,317) (5,137,540) 2,306,197 2,228,603 ------------ ------------ ----------- ----------- ------------ ------------ ---------- ---------- (23,605,677) (28,198,698) 3,016,085 (1,559,620) (11,518,380) (13,663,445) 2,410,375 2,391,348 ------------ ------------ ----------- ----------- ------------ ------------ ---------- ---------- (51,436) (31,460) (2,373) (2,217) (11,207) (42,473) (620) (340) ------------ ------------ ----------- ----------- ------------ ------------ ---------- ---------- (10,415,372) (24,179,497) 3,685,601 (942,949) (8,496,938) (2,792,229) 2,606,480 2,526,878 127,390,250 151,569,747 18,694,688 19,637,637 78,196,220 80,988,449 2,526,878 -- ------------ ------------ ----------- ----------- ------------ ------------ ---------- ---------- $116,974,878 $127,390,250 $22,380,289 $18,694,688 $ 69,699,282 $ 78,196,220 $5,133,358 $2,526,878 ============ ============ =========== =========== ============ ============ ========== ==========
MAINSTAY VP MAINSTAY VP MAINSTAY VP MAINSTAY VP GROWTH HIGH YIELD FLOATING RATE-- GOVERNMENT-- ALLOCATION-- CORPORATE BOND-- SERVICE CLASS INITIAL CLASS SERVICE CLASS INITIAL CLASS ----------------------------- ----------------------------- ----------------------------- ----------------------------- 2007 2006 2007 2006 2007 2006(A) 2007 2006 ----------------------------------------------------------------------------------------------------------------------- $ 403,310 $ 207,114 $ 687,004 $ (79,548) $ (7,331) $ 1,674 $ 4,712,441 $ 528,609 (98,778) (10,874) (72,255) (131,732) 169,962 7,681 2,356,024 (2,307,237) -- -- -- -- 196,372 18,274 -- -- (269,184) (7,896) 422,492 801,706 (13,423) 176,340 (6,065,520) 11,779,998 ----------- ---------- ----------- ----------- ---------- ---------- ------------ ------------ 35,348 188,344 1,037,241 590,426 345,580 203,969 1,002,945 10,001,370 ----------- ---------- ----------- ----------- ---------- ---------- ------------ ------------ 1,043,954 557,525 536,763 698,214 715,505 217,165 3,318,393 2,901,120 (1,404,491) (842,663) (3,594,752) (3,785,648) (442,957) (81,057) (14,571,592) (16,257,132) (8,224) (16,836) (180,445) (155,060) -- -- (403,944) (577,641) (5,173) 259,872 (15,737) (241,109) 28,015 20,566 (309,585) (793,309) 1,719,004 4,081,967 (70,543) (844,462) 1,623,153 2,742,569 (1,263,289) (4,423,172) ----------- ---------- ----------- ----------- ---------- ---------- ------------ ------------ 1,345,070 4,039,865 (3,324,714) (4,328,065) 1,923,716 2,899,243 (13,230,017) (19,150,134) ----------- ---------- ----------- ----------- ---------- ---------- ------------ ------------ (470) (573) (3,152) (2,243) (1,042) (534) (2,354) (27,973) ----------- ---------- ----------- ----------- ---------- ---------- ------------ ------------ 1,379,948 4,227,636 (2,290,625) (3,739,882) 2,268,254 3,102,678 (12,229,426) (9,176,737) 6,237,219 2,009,583 21,756,134 25,496,016 3,102,678 -- 97,905,543 107,082,280 ----------- ---------- ----------- ----------- ---------- ---------- ------------ ------------ $ 7,617,167 $6,237,219 $19,465,509 $21,756,134 $5,370,932 $3,102,678 $ 85,676,117 $ 97,905,543 =========== ========== =========== =========== ========== ========== ============ ============
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. F-35 STATEMENT OF CHANGES IN NET ASSETS (CONTINUED) For the years ended December 31, 2007 and December 31, 2006
MAINSTAY VP ICAP MAINSTAY VP SELECT EQUITY-- INCOME & GROWTH-- INITIAL CLASS INITIAL CLASS -------------------------------- -------------------------------- 2007 2006 2007 2006 -------------------------------------------------------------------- INCREASE (DECREASE) IN NET ASSETS: Operations: Net investment income (loss)........................... $ (51,776) $ (44,789) $ 77,232 $ (40,632) Net realized gain (loss) on investments................ 354,696 74,141 292,373 43,010 Realized gain distribution received.................... 341,731 23,296 801,117 71,032 Change in unrealized appreciation (depreciation) on investments.......................................... (325,003) 688,246 (1,222,627) 735,825 ----------- ---------- ----------- ----------- Net increase (decrease) in net assets resulting from operations........................................ 319,648 740,894 (51,905) 809,235 ----------- ---------- ----------- ----------- Contributions and (Withdrawals): Payments received from policyowners.................... 495,838 148,684 121,658 237,793 Policyowners' surrenders............................... (1,130,544) (388,422) (609,610) (775,392) Policyowners' annuity and death benefits............... (24,115) -- (14,931) (23,196) Net transfers from (to) Fixed Account.................. 6,601 (37,030) (119,587) (32,587) Transfers between Investment Divisions................. 6,568,795 299,828 (5,066,341) (447,721) ----------- ---------- ----------- ----------- Net contributions and (withdrawals).................. 5,916,575 23,060 (5,688,811) (1,041,103) ----------- ---------- ----------- ----------- Increase (decrease) attributable to New York Life Insurance and Annuity Corporation charges retained by the Separate Account................................. (922) (2,772) 128 (3,391) ----------- ---------- ----------- ----------- Increase (decrease) in net assets................. 6,235,301 761,182 (5,740,588) (235,259) NET ASSETS: Beginning of period.................................... 5,062,614 4,301,432 5,740,588 5,975,847 ----------- ---------- ----------- ----------- End of period.......................................... $11,297,915 $5,062,614 $ -- $ 5,740,588 =========== ========== =========== ===========
MAINSTAY VP MAINSTAY VP MID CAP MODERATE VALUE-- ALLOCATION-- INITIAL CLASS SERVICE CLASS -------------------------------- -------------------------------- 2007 2006 2007 2006(A) -------------------------------------------------------------------- INCREASE (DECREASE) IN NET ASSETS: Operations: Net investment income (loss)........................... $ (58,378) $ (209,302) $ 122,812 $ 15,113 Net realized gain (loss) on investments................ 1,342,776 889,842 62,231 6,771 Realized gain distribution received.................... 1,336,985 220,854 246,951 17,442 Change in unrealized appreciation (depreciation) on investments.......................................... (2,885,608) 1,150,753 135,031 300,452 ----------- ----------- ----------- ---------- Net increase (decrease) in net assets resulting from operations........................................ (264,225) 2,052,147 567,025 339,778 ----------- ----------- ----------- ---------- Contributions and (Withdrawals): Payments received from policyowners.................... 806,365 907,666 800,133 357,072 Policyowners' surrenders............................... (2,748,565) (2,073,578) (781,272) (65,896) Policyowners' annuity and death benefits............... (10,320) (12,799) (5,325) -- Net transfers from (to) Fixed Account.................. (55,492) (175,070) 158,767 78,971 Transfers between Investment Divisions................. (457,619) (728,962) 5,324,411 5,423,489 ----------- ----------- ----------- ---------- Net contributions and (withdrawals).................. (2,465,631) (2,082,743) 5,496,714 5,793,636 ----------- ----------- ----------- ---------- Increase (decrease) attributable to New York Life Insurance and Annuity Corporation charges retained by the Separate Account................................. 425 (7,531) (1,821) (913) ----------- ----------- ----------- ---------- Increase (decrease) in net assets................. (2,729,431) (38,127) 6,061,918 6,132,501 NET ASSETS: Beginning of period.................................... 17,460,555 17,498,682 6,132,501 -- ----------- ----------- ----------- ---------- End of period.......................................... $14,731,124 $17,460,555 $12,194,419 $6,132,501 =========== =========== =========== ==========
(a) For the period February 13, 2006 (Commencement of Investments) through December 31, 2006. The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. F-36 NYLIAC VARIABLE ANNUITY SEPARATE ACCOUNT-II TAX-QUALIFIED POLICIES
MAINSTAY VP MAINSTAY VP MAINSTAY VP MAINSTAY VP LARGE CAP MID CAP MID CAP INTERNATIONAL EQUITY-- GROWTH-- CORE-- GROWTH-- INITIAL CLASS INITIAL CLASS INITIAL CLASS INITIAL CLASS ----------------------------- ----------------------------- ----------------------------- ----------------------------- 2007 2006 2007 2006 2007 2006 2007 2006 ----------------------------------------------------------------------------------------------------------------------- $ (152,873) $ (192,939) $ (93,076) $ (83,880) $ (103,195) $ (134,739) $ (195,922) $ (203,515) 1,100,304 548,306 (160,115) (612,349) 648,930 811,572 1,453,009 1,305,066 1,497,078 210,133 -- -- 1,046,312 65,598 1,004,243 262,054 (1,607,014) 4,518,430 1,567,083 1,083,856 (1,172,810) 570,165 (234,615) (303,999) ----------- ----------- ---------- ---------- ----------- ----------- ----------- ----------- 837,495 5,083,930 1,313,892 387,627 419,237 1,312,596 2,026,715 1,059,606 ----------- ----------- ---------- ---------- ----------- ----------- ----------- ----------- 1,383,340 1,017,191 338,534 409,513 625,607 539,459 650,387 891,223 (3,558,471) (2,891,980) (992,365) (846,999) (1,804,840) (1,561,073) (2,334,265) (1,820,915) (16,547) (27,958) (27,505) (2,354) (4,795) (526) (20,917) (6,203) (58,354) (55,478) (61,078) (68,055) (46,105) (48,638) (143,428) (124,013) 1,563,893 3,197,653 (36,394) 80,189 472,516 1,087,732 (692,849) 413,757 ----------- ----------- ---------- ---------- ----------- ----------- ----------- ----------- (686,139) 1,239,428 (778,808) (427,706) (757,617) 16,954 (2,541,072) (646,151) ----------- ----------- ---------- ---------- ----------- ----------- ----------- ----------- (2,784) (16,741) (4,226) (2,209) (1,251) (5,106) (6,812) (6,986) ----------- ----------- ---------- ---------- ----------- ----------- ----------- ----------- 148,572 6,306,617 530,858 (42,288) (339,631) 1,324,444 (521,169) 406,469 22,859,537 16,552,920 7,191,662 7,233,950 10,796,145 9,471,701 14,844,476 14,438,007 ----------- ----------- ---------- ---------- ----------- ----------- ----------- ----------- $23,008,109 $22,859,537 $7,722,520 $7,191,662 $10,456,514 $10,796,145 $14,323,307 $14,844,476 =========== =========== ========== ========== =========== =========== =========== ===========
MAINSTAY VP MODERATE MAINSTAY VP MAINSTAY VP GROWTH S&P 500 SMALL CAP MAINSTAY VP ALLOCATION-- INDEX-- GROWTH-- TOTAL RETURN-- SERVICE CLASS INITIAL CLASS INITIAL CLASS INITIAL CLASS ----------------------------- ----------------------------- ----------------------------- ----------------------------- 2007 2006(A) 2007 2006 2007 2006 2007 2006 ----------------------------------------------------------------------------------------------------------------------- $ 58,669 $ 13,438 $ 323,671 $ (1,212,996) $ (70,125) $ (86,711) $ 687,716 $ (654,003) 188,528 12,641 6,335,772 5,967,007 395,857 425,477 1,416,753 2,583,676 381,367 39,054 -- -- 352,156 52 5,262,654 1,091,806 156,317 479,220 (630,680) 15,111,690 (861,012) (40,537) (2,435,819) 3,926,379 ----------- ---------- ------------ ------------ ----------- ---------- ------------ ------------ 784,881 544,353 6,028,763 19,865,701 (183,124) 298,281 4,931,304 6,947,858 ----------- ---------- ------------ ------------ ----------- ---------- ------------ ------------ 696,970 900,580 4,571,913 5,203,437 218,299 357,042 2,340,356 2,269,904 (1,384,321) (130,972) (21,187,983) (19,583,835) (911,138) (793,080) (11,608,602) (15,051,041) -- -- (407,639) (507,200) (6,952) (862) (359,711) (465,579) 75,937 (122,403) (1,083,398) (1,438,849) (5,743) (64,792) (264,157) (1,303,497) 4,447,182 6,863,891 (7,487,370) (8,546,132) (804,936) (342,579) (4,204,280) (5,015,330) ----------- ---------- ------------ ------------ ----------- ---------- ------------ ------------ 3,835,768 7,511,096 (25,594,477) (24,872,579) (1,510,470) (844,271) (14,096,394) (19,565,543) ----------- ---------- ------------ ------------ ----------- ---------- ------------ ------------ (2,404) (1,500) (22,494) (75,603) 812 (2,456) (17,672) (29,401) ----------- ---------- ------------ ------------ ----------- ---------- ------------ ------------ 4,618,245 8,053,949 (19,588,208) (5,082,481) (1,692,782) (548,446) (9,182,762) (12,647,086) 8,053,949 -- 152,329,058 157,411,539 6,155,224 6,703,670 84,654,486 97,301,572 ----------- ---------- ------------ ------------ ----------- ---------- ------------ ------------ $12,672,194 $8,053,949 $132,740,850 $152,329,058 $ 4,462,442 $6,155,224 $ 75,471,724 $ 84,654,486 =========== ========== ============ ============ =========== ========== ============ ============ MAINSTAY VP VALUE-- INITIAL CLASS ----------------------------- 2007 2006 ----------------------------- $ 120,075 $ (512,827) 2,435,452 709,091 4,149,323 803,686 (6,002,119) 7,732,597 ----------- ----------- 702,731 8,732,547 ----------- ----------- 1,473,680 1,849,125 (7,811,449) (8,063,369) (137,272) (283,958) (197,036) (474,970) (1,861,010) (1,444,592) ----------- ----------- (8,533,087) (8,417,764) ----------- ----------- (3,577) (31,482) ----------- ----------- (7,833,933) 283,301 54,880,586 54,597,285 ----------- ----------- $47,046,653 $54,880,586 =========== ===========
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. F-37 STATEMENT OF CHANGES IN NET ASSETS (CONTINUED) For the years ended December 31, 2007 and December 31, 2006
CVS CALVERT ALGER AMERICAN SOCIAL SMALL CAPITALIZATION-- BALANCED CLASS O SHARES PORTFOLIO -------------------------------- -------------------------------- 2007 2006 2007 2006 -------------------------------------------------------------------- INCREASE (DECREASE) IN NET ASSETS: Operations: Net investment income (loss)........................... $ (204,733) $ (198,160) $ 44,834 $ 50,434 Net realized gain (loss) on investments................ 515,157 (21,454) 1,677 (60,878) Realized gain distribution received.................... -- -- 255,601 91,145 Change in unrealized appreciation (depreciation) on investments.......................................... 2,010,849 2,741,068 (228,666) 292,802 ----------- ----------- ---------- ---------- Net increase (decrease) in net assets resulting from operations........................................ 2,321,273 2,521,454 73,446 373,503 ----------- ----------- ---------- ---------- Contributions and (Withdrawals): Payments received from policyowners.................... 611,132 677,275 205,901 277,448 Policyowners' surrenders............................... (2,172,974) (1,803,055) (721,334) (474,210) Policyowners' annuity and death benefits............... (46,055) (27,845) -- (24,003) Net transfers from (to) Fixed Account.................. (25,377) (99,467) (4,273) (75,263) Transfers between Investment Divisions................. (1,086,199) 281,270 (305,142) (125,925) ----------- ----------- ---------- ---------- Net contributions and (withdrawals).................. (2,719,473) (971,822) (824,848) (421,953) ----------- ----------- ---------- ---------- Increase (decrease) attributable to New York Life Insurance and Annuity Corporation charges retained by the Separate Account................................. (7,047) (11,429) (373) (1,522) ----------- ----------- ---------- ---------- Increase (decrease) in net assets................. (405,247) 1,538,203 (751,775) (49,972) NET ASSETS: Beginning of period.................................... 15,454,868 13,916,665 5,279,382 5,329,354 ----------- ----------- ---------- ---------- End of period.......................................... $15,049,621 $15,454,868 $4,527,607 $5,279,382 =========== =========== ========== ==========
FIDELITY(R) JANUS ASPEN VIP SERIES MID CAP-- BALANCED-- SERVICE CLASS 2 INSTITUTIONAL SHARES -------------------------------- -------------------------------- 2007 2006 2007 2006 -------------------------------------------------------------------- INCREASE (DECREASE) IN NET ASSETS: Operations: Net investment income (loss)........................... $ (122,198) $ (159,660) $ 762,641 $ 540,555 Net realized gain (loss) on investments................ 596,173 465,279 571,917 678,685 Realized gain distribution received.................... 1,365,300 1,516,664 -- -- Change in unrealized appreciation (depreciation) on investments.......................................... 102,865 (505,280) 4,245,577 4,668,430 ----------- ----------- ----------- ----------- Net increase (decrease) in net assets resulting from operations........................................ 1,942,140 1,317,003 5,580,135 5,887,670 ----------- ----------- ----------- ----------- Contributions and (Withdrawals): Payments received from policyowners.................... 951,451 1,006,261 2,821,124 2,622,615 Policyowners' surrenders............................... (2,200,313) (1,489,777) (9,202,657) (6,943,414) Policyowners' annuity and death benefits............... (30,347) (13,323) (133,343) (273,189) Net transfers from (to) Fixed Account.................. (42,842) (60,032) (528,694) (384,605) Transfers between Investment Divisions................. (39,547) 2,481,706 (2,934,409) (3,895,432) ----------- ----------- ----------- ----------- Net contributions and (withdrawals).................. (1,361,598) 1,924,835 (9,977,979) (8,874,025) ----------- ----------- ----------- ----------- Increase (decrease) attributable to New York Life Insurance and Annuity Corporation charges retained by the Separate Account................................. (6,414) (6,568) (18,973) (22,381) ----------- ----------- ----------- ----------- Increase (decrease) in net assets................. 574,128 3,235,270 (4,416,817) (3,008,736) NET ASSETS: Beginning of period.................................... 14,734,633 11,499,363 65,617,944 68,626,680 ----------- ----------- ----------- ----------- End of period.......................................... $15,308,761 $14,734,633 $61,201,127 $65,617,944 =========== =========== =========== ===========
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. F-38 NYLIAC VARIABLE ANNUITY SEPARATE ACCOUNT-II TAX-QUALIFIED POLICIES
COLUMBIA SMALL CAP DREYFUS IP FIDELITY(R) FIDELITY(R) VALUE FUND, TECHNOLOGY VIP VIP VARIABLE SERIES-- GROWTH-- CONTRAFUND(R)-- EQUITY-INCOME-- CLASS B INITIAL SHARES INITIAL CLASS INITIAL CLASS ----------------------------- ----------------------------- ----------------------------- ----------------------------- 2007 2006 2007 2006 2007 2006 2007 2006 ----------------------------------------------------------------------------------------------------------------------- $ (26,959) $ (22,024) $ (29,797) $ (27,404) $ (335,465) $ (17,978) $ 141,266 $ 659,111 126,516 124,349 82,512 38,635 4,164,005 3,633,726 695,414 77,913 272,727 65,758 -- -- 21,013,955 6,908,919 2,544,207 3,896,951 (452,605) 178,064 226,012 48,133 (11,942,653) (2,179,850) (3,156,698) 894,298 ---------- ---------- ---------- ---------- ------------ ----------- ----------- ----------- (80,321) 346,147 278,727 59,364 12,899,842 8,344,817 224,189 5,528,273 ---------- ---------- ---------- ---------- ------------ ----------- ----------- ----------- 203,317 167,820 118,503 98,958 3,370,635 3,681,225 1,372,165 1,363,279 (472,049) (435,431) (197,068) (134,684) (11,317,205) (9,746,775) (5,097,992) (4,093,765) -- (2,974) -- -- (219,980) (239,855) (83,697) (349,692) (12,290) 5,447 (12,781) 1,632 (560,191) (426,766) (289,823) (159,213) (9,751) 877,808 (118,095) 97,330 (3,040,840) (680,236) 348,891 (140,534) ---------- ---------- ---------- ---------- ------------ ----------- ----------- ----------- (290,773) 612,670 (209,441) 63,236 (11,767,581) (7,412,407) (3,750,456) (3,379,925) ---------- ---------- ---------- ---------- ------------ ----------- ----------- ----------- 311 (1,300) (1,059) (281) (44,980) (41,846) (1,494) (20,346) ---------- ---------- ---------- ---------- ------------ ----------- ----------- ----------- (370,783) 957,517 68,227 122,319 1,087,281 890,564 (3,527,761) 2,128,002 2,587,111 1,629,594 2,222,212 2,099,893 85,742,440 84,851,876 33,815,583 31,687,581 ---------- ---------- ---------- ---------- ------------ ----------- ----------- ----------- $2,216,328 $2,587,111 $2,290,439 $2,222,212 $ 86,829,721 $85,742,440 $30,287,822 $33,815,583 ========== ========== ========== ========== ============ =========== =========== ===========
JANUS ASPEN MFS(R) SERIES INVESTORS MFS(R) MFS(R) WORLDWIDE GROWTH-- TRUST SERIES-- RESEARCH SERIES-- UTILITIES SERIES-- INSTITUTIONAL SHARES INITIAL CLASS INITIAL CLASS SERVICE CLASS ----------------------------- ----------------------------- ----------------------------- ----------------------------- 2007 2006 2007 2006 2007 2006 2007 2006 ----------------------------------------------------------------------------------------------------------------------- $ (244,510) $ 186,839 $ (8,228) $ (14,849) $ (14,792) $ (20,140) $ (147,624) $ 83,786 (3,327,306) (1,606,254) 78,542 (14,983) 65,336 (93,923) 1,089,800 551,253 -- -- 13,844 -- -- -- 1,855,322 601,086 7,196,071 8,067,598 60,722 233,307 221,250 328,642 3,362,819 3,099,571 ----------- ----------- ---------- ---------- ---------- ---------- ----------- ----------- 3,624,255 6,648,183 144,880 203,475 271,794 214,579 6,160,317 4,335,696 ----------- ----------- ---------- ---------- ---------- ---------- ----------- ----------- 1,475,312 1,704,764 108,160 62,511 87,978 107,155 1,756,938 1,119,336 (6,064,503) (5,240,227) (541,157) (180,721) (224,520) (613,938) (4,000,252) (1,960,131) (118,025) (141,907) (4,985) (8,088) -- -- (53,794) (36,913) (290,738) (311,286) (2,218) (48,147) (12,172) (34,139) 93,272 (30,048) (2,779,450) (3,704,249) 29,732 (157,651) (203,256) (184,924) 7,080,479 4,329,947 ----------- ----------- ---------- ---------- ---------- ---------- ----------- ----------- (7,777,404) (7,692,905) (410,468) (332,096) (351,970) (725,846) 4,876,643 3,422,191 ----------- ----------- ---------- ---------- ---------- ---------- ----------- ----------- (14,320) (20,895) (482) (824) (922) (1,031) (15,470) (14,403) ----------- ----------- ---------- ---------- ---------- ---------- ----------- ----------- (4,167,469) (1,065,617) (266,070) (129,445) (81,098) (512,298) 11,021,490 7,743,484 44,351,854 45,417,471 1,837,606 1,967,051 2,439,466 2,951,764 20,973,130 13,229,646 ----------- ----------- ---------- ---------- ---------- ---------- ----------- ----------- $40,184,385 $44,351,854 $1,571,536 $1,837,606 $2,358,368 $2,439,466 $31,994,620 $20,973,130 =========== =========== ========== ========== ========== ========== =========== ===========
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. F-39 STATEMENT OF CHANGES IN NET ASSETS (CONTINUED) For the years ended December 31, 2007 and December 31, 2006
NEUBERGER BERMAN ROYCE AMT MID-CAP MICRO-CAP GROWTH PORTFOLIO-- PORTFOLIO-- CLASS S INVESTMENT CLASS -------------------------------- -------------------------------- 2007 2006 2007 2006 -------------------------------------------------------------------- INCREASE (DECREASE) IN NET ASSETS: Operations: Net investment income (loss)........................... $ (14,262) $ (10,269) $ 5,113 $ (16,518) Net realized gain (loss) on investments................ 127,520 65,463 87,037 41,261 Realized gain distribution received.................... -- -- 240,346 126,872 Change in unrealized appreciation (depreciation) on investments.......................................... 67,725 29,548 (265,487) 45,142 ---------- --------- ---------- ---------- Net increase (decrease) in net assets resulting from operations........................................ 180,983 84,742 67,009 196,757 ---------- --------- ---------- ---------- Contributions and (Withdrawals): Payments received from policyowners.................... 123,394 50,436 223,384 213,704 Policyowners' surrenders............................... (208,601) (163,478) (656,313) (72,395) Policyowners' annuity and death benefits............... -- (514) -- -- Net transfers from (to) Fixed Account.................. (6,205) 10,633 (13,390) 18,207 Transfers between Investment Divisions................. 299,106 295,603 734,127 1,762,396 ---------- --------- ---------- ---------- Net contributions and (withdrawals).................. 207,694 192,680 287,808 1,921,912 ---------- --------- ---------- ---------- Increase (decrease) attributable to New York Life Insurance and Annuity Corporation charges retained by the Separate Account................................. (643) (361) (447) (693) ---------- --------- ---------- ---------- Increase (decrease) in net assets................. 388,034 277,061 345,370 2,117,976 NET ASSETS: Beginning of period.................................... 852,676 575,615 2,429,064 311,088 ---------- --------- ---------- ---------- End of period.......................................... $1,240,710 $ 852,676 $2,783,434 $2,429,064 ========== ========= ========== ==========
VAN KAMPEN VAN ECK UIF WORLDWIDE EMERGING MARKETS HARD ASSETS EQUITY--CLASS I -------------------------------- -------------------------------- 2007 2006 2007 2006 -------------------------------------------------------------------- INCREASE (DECREASE) IN NET ASSETS: Operations: Net investment income (loss)........................... $ (238,928) $ (187,369) $ (170,482) $ (79,146) Net realized gain (loss) on investments................ 1,899,567 1,700,594 2,397,775 351,637 Realized gain distribution received.................... 2,294,277 722,072 2,252,297 342,939 Change in unrealized appreciation (depreciation) on investments.......................................... 3,380,714 469,622 2,033,039 3,804,953 ----------- ----------- ----------- ----------- Net increase (decrease) in net assets resulting from operations........................................ 7,335,630 2,704,919 6,512,629 4,420,383 ----------- ----------- ----------- ----------- Contributions and (Withdrawals): Payments received from policyowners.................... 933,628 847,267 787,950 622,376 Policyowners' surrenders............................... (2,773,340) (1,503,823) (2,067,868) (1,523,568) Policyowners' annuity and death benefits............... (69,948) (12,715) (13,365) (32,462) Net transfers from (to) Fixed Account.................. (43,758) (95,880) (40,632) (53,613) Transfers between Investment Divisions................. 2,182,086 3,679,066 296,014 1,897,941 ----------- ----------- ----------- ----------- Net contributions and (withdrawals).................. 228,668 2,913,915 (1,037,901) 910,674 ----------- ----------- ----------- ----------- Increase (decrease) attributable to New York Life Insurance and Annuity Corporation charges retained by the Separate Account................................. (21,807) (15,190) (23,726) (17,610) ----------- ----------- ----------- ----------- Increase (decrease) in net assets................. 7,542,491 5,603,644 5,451,002 5,313,447 NET ASSETS: Beginning of period.................................... 16,570,269 10,966,625 17,307,907 11,994,460 ----------- ----------- ----------- ----------- End of period.......................................... $24,112,760 $16,570,269 $22,758,909 $17,307,907 =========== =========== =========== ===========
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. F-40 NYLIAC VARIABLE ANNUITY SEPARATE ACCOUNT-II TAX-QUALIFIED POLICIES
ROYCE SMALL-CAP T. ROWE PRICE PORTFOLIO-- EQUITY INCOME INVESTMENT CLASS PORTFOLIO ----------------------------- ----------------------------- 2007 2006 2007 2006 ----------------------------------------------------------- $ (23,213) $ (15,206) $ 103,060 $ 67,208 55,445 17,585 1,175,008 582,715 80,505 77,852 1,462,492 677,967 (174,584) 78,918 (2,203,730) 2,550,327 ---------- ---------- ----------- ----------- (61,847) 159,149 536,830 3,878,217 ---------- ---------- ----------- ----------- 144,832 198,271 1,427,909 1,277,679 (212,692) (183,258) (3,974,496) (2,908,963) -- (699) (75,233) (135,953) (5,403) 37,222 (79,168) 945 187,418 814,532 705,248 801,728 ---------- ---------- ----------- ----------- 114,155 866,068 (1,995,740) (964,564) ---------- ---------- ----------- ----------- 164 (631) (2,288) (13,995) ---------- ---------- ----------- ----------- 52,472 1,024,586 (1,461,198) 2,899,658 1,708,996 684,410 25,397,165 22,497,507 ---------- ---------- ----------- ----------- $1,761,468 $1,708,996 $23,935,967 $25,397,165 ========== ========== =========== ===========
VICTORY VIF DIVERSIFIED STOCK-- CLASS A SHARES ----------------------------- 2007 2006 ----------------------------- $ (10,134) $ (13,138) 59,071 51,217 126,374 41,156 (48,426) 76,620 ---------- ---------- 126,885 155,855 ---------- ---------- 82,939 103,374 (159,463) (277,896) -- (3,890) 974 (10,351) 91,714 243,520 ---------- ---------- 16,164 54,757 ---------- ---------- (382) (574) ---------- ---------- 142,667 210,038 1,445,756 1,235,718 ---------- ---------- $1,588,423 $1,445,756 ========== ==========
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. F-41 NOTES TO FINANCIAL STATEMENTS NOTE 1--Organization and Accounting Policies: -------------------------------------------------------------------------------- NYLIAC Variable Annuity Separate Account-I ("Separate Account-I") and NYLIAC Variable Annuity Separate Account-II ("Separate Account-II") were established on October 5, 1992, under Delaware law by New York Life Insurance and Annuity Corporation ("NYLIAC"), a wholly-owned subsidiary of New York Life Insurance Company. These accounts were established to receive and invest premium payments under Non-Qualified Flexible Premium Multi-Funded Variable Retirement Annuity Policies (Separate Account-I) and Tax-Qualified Flexible Premium Multi-Funded Variable Retirement Annuity Policies (Separate Account-II) issued by NYLIAC. Separate Account-I policies are designed to establish retirement benefits to provide individuals with supplemental retirement income. Separate Account-II policies are designed to establish retirement benefits for individuals who participate in tax-qualified pension, profit sharing or annuity plans. The policies are distributed by NYLIFE Distributors LLC and sold by registered representatives of NYLIFE Securities LLC. NYLIFE Securities LLC is a wholly- owned subsidiary of NYLIFE LLC and NYLIFE Distributors LLC is a wholly-owned subsidiary of New York Life Investment Management Holdings LLC ("NYLIM Holdings"). NYLIFE LLC and NYLIM Holdings are both wholly-owned subsidiaries of New York Life Insurance Company. Separate Account-I and Separate Account-II are registered under the Investment Company Act of 1940, as amended, as unit investment trusts. Sales of these policies were discontinued effective May 10, 2002. The assets of Separate Account-I and Separate Account-II, which are currently all in the accumulation phase, are invested in shares of eligible portfolios of the MainStay VP Series Fund, Inc., the Alger American Fund, the Calvert Variable Series, Inc., the Columbia Funds Variable Insurance Trust, the Dreyfus Investment Portfolios, the Fidelity Variable Insurance Products Fund, the Janus Aspen Series, the MFS(R) Variable Insurance Trust(SM), the Neuberger Berman Advisers Management Trust, the Royce Capital Fund, the T. Rowe Price Equity Series, Inc., the Van Eck Worldwide Insurance Trust, the Universal Institutional Funds, Inc. and the Victory Variable Insurance Funds (collectively, "Funds"). These assets are clearly identified and distinguished from the other assets and liabilities of NYLIAC. These assets are the property of NYLIAC; however, the portion of the assets attributable to the policies will not be charged with liabilities arising out of any other business NYLIAC may conduct. The Fixed Account represents the general assets of NYLIAC. NYLIAC's Fixed Account may be charged with liabilities arising out of other business NYLIAC may conduct. New York Life Investment Management LLC ("NYLIM"), a wholly-owned subsidiary of NYLIM Holdings, provides investment advisory services to the MainStay VP Series Fund, Inc. for a fee. NYLIM retains several subadvisers, including MacKay Shields LLC, a wholly-owned subsidiary of NYLIM Holdings, Institutional Capital LLC, a wholly-owned subsidiary of NYLIM Holdings, Lord, Abbett & Company LLC and Winslow Capital Management Inc., to provide investment advisory services to certain portfolios of the MainStay VP Series Fund, Inc. The following Investment Divisions, with their respective fund portfolios, are available in Separate Account-I and Separate Account-II: MainStay VP Balanced--Service Class MainStay VP Bond--Initial Class MainStay VP Capital Appreciation--Initial Class MainStay VP Cash Management MainStay VP Common Stock--Initial Class MainStay VP Conservative Allocation--Service Class MainStay VP Convertible--Initial Class MainStay VP Developing Growth--Initial Class MainStay VP Floating Rate--Service Class MainStay VP Government--Initial Class MainStay VP Growth Allocation--Service Class MainStay VP High Yield Corporate Bond--Initial Class MainStay VP ICAP Select Equity--Initial Class(1,2) MainStay VP International Equity--Initial Class MainStay VP Large Cap Growth--Initial Class MainStay VP Mid Cap Core--Initial Class MainStay VP Mid Cap Growth--Initial Class MainStay VP Mid Cap Value--Initial Class MainStay VP Moderate Allocation--Service Class MainStay VP Moderate Growth Allocation-- Service Class MainStay VP S&P 500 Index--Initial Class MainStay VP Small Cap Growth--Initial Class MainStay VP Total Return--Initial Class MainStay VP Value--Initial Class Alger American Small Capitalization--Class O Shares(3) CVS Calvert Social Balanced Portfolio Columbia Small Cap Value Fund, Variable Series-- Class B Dreyfus IP Technology Growth--Initial Shares Fidelity(R) VIP Contrafund(R)--Initial Class Fidelity(R) VIP Equity-Income--Initial Class Fidelity(R) VIP Mid Cap--Service Class 2 Janus Aspen Series Balanced--Institutional Shares Janus Aspen Series Worldwide Growth--Institutional Shares MFS(R) Investors Trust Series--Initial Class MFS(R) Research Series--Initial Class MFS(R) Utilities Series--Service Class Neuberger Berman AMT Mid-Cap Growth Portfolio-- Class S Royce Micro-Cap Portfolio--Investment Class Royce Small-Cap Portfolio--Investment Class T. Rowe Price Equity Income Portfolio Van Eck Worldwide Hard Assets Van Kampen UIF Emerging Markets Equity--Class I Victory VIF Diversified Stock--Class A Shares ------- (1) Formerly known as MainStay VP Basic Value--Initial Class (2) The MainStay VP Income & Growth--Initial Class portfolio merged with and into the MainStay VP ICAP Select Equity--Initial Class portfolio on August 17, 2007. (3) New allocations to Alger American Small Capitalization--Class O Shares investment division will not be accepted from policyowners who were not invested in the investment division as of June 1, 2007. F-42 NYLIAC VARIABLE ANNUITY SEPARATE ACCOUNTS-I AND -II NON-QUALIFIED AND TAX-QUALIFIED POLICIES -------------------------------------------------------------------------------- Initial premium payments were allocated to the MainStay VP Cash Management Investment Division until 15 days after the policy issue date. Subsequent premium payments are allocated to the Investment Divisions of Separate Account-I or Separate Account-II and the Fixed Account at the close of the business day they are received, in accordance with the policyowner's instructions. In addition, the policyowner has the option to transfer amounts between the Investment Divisions of Separate Account-I or Separate Account-II and the Fixed Account of NYLIAC, subject to certain restrictions. No Federal income tax is payable on investment income or capital gains of Separate Account-I or Separate Account-II under current Federal income tax law. Security Valuation--The investments are valued at the net asset value of shares of the respective Fund portfolios. Security Transactions--Realized gains and losses from security transactions are reported on the identified cost basis. Security transactions are accounted for as of the date the securities are purchased or sold (trade date). Distributions Received--Dividend income and capital gain distributions are recorded on the ex-dividend date and reinvested in the corresponding portfolio. In September 2006, the FASB issued SFAS No. 157, "Fair Value Measurements." This Statement defines fair value, establishes a framework for measuring fair value in GAAP, and expands disclosures around fair value measurements. The application of this Statement could change current practices in determining fair value. The guidance in SFAS No. 157 will be applied prospectively with certain exceptions. This statement is effective January 1, 2008, at which time the Company plans to adopt this guidance. The Company is currently evaluating the impact of SFAS No. 157 on the Company's consolidated financial statements. The amounts shown as net receivable (payable) to NYLIAC on the Statement of Assets and Liabilities reflect transactions that occurred on the last business day of the reporting period. These amounts will be deposited to or withdrawn from the separate account in accordance with the policyowners' instructions on the first business day subsequent to the close of the period presented. The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates. F-43 NOTES TO FINANCIAL STATEMENTS (CONTINUED) NOTE 2--Investments (in 000's): -------------------------------------------------------------------------------- At December 31, 2007, the investments of Separate Account-I and Separate Account-II are as follows:
MAINSTAY VP MAINSTAY VP MAINSTAY VP CAPITAL BALANCED-- BOND-- APPRECIATION-- SERVICE CLASS INITIAL CLASS INITIAL CLASS ------------------------------------------------------ SEPARATE ACCOUNT-I (NON-QUALIFIED POLICIES) Number of shares........................ 537 1,433 3,052 Identified cost......................... $5,836 $19,538 $ 99,434 SEPARATE ACCOUNT-II (TAX-QUALIFIED POLICIES) Number of shares........................ 678 1,641 4,309 Identified cost......................... $7,313 $22,284 $132,198
MAINSTAY VP MAINSTAY VP MAINSTAY VP GROWTH HIGH YIELD ICAP SELECT ALLOCATION-- CORPORATE BOND-- EQUITY-- SERVICE CLASS INITIAL CLASS INITIAL CLASS ------------------------------------------------------ SEPARATE ACCOUNT-I (NON-QUALIFIED POLICIES) Number of shares........................ 379 9,565 613 Identified cost......................... $4,185 $86,841 $ 8,381 SEPARATE ACCOUNT-II (TAX-QUALIFIED POLICIES) Number of shares........................ 462 8,536 796 Identified cost......................... $5,220 $76,812 $10,445
Investment activity for the year ended December 31, 2007 was as follows:
MAINSTAY VP MAINSTAY VP MAINSTAY VP CAPITAL BALANCED-- BOND-- APPRECIATION-- SERVICE CLASS INITIAL CLASS INITIAL CLASS ------------------------------------------------------ SEPARATE ACCOUNT-I (NON-QUALIFIED POLICIES) Purchases............................... $1,794 $1,603 $ 452 Proceeds from sales..................... 1,757 5,063 23,496 SEPARATE ACCOUNT-II (TAX-QUALIFIED POLICIES) Purchases............................... $1,836 $1,749 $ 377 Proceeds from sales..................... 1,787 4,134 25,591
MAINSTAY VP MAINSTAY VP MAINSTAY VP GROWTH HIGH YIELD ICAP SELECT ALLOCATION-- CORPORATE BOND-- EQUITY-- SERVICE CLASS INITIAL CLASS INITIAL CLASS ------------------------------------------------------ SEPARATE ACCOUNT-I (NON-QUALIFIED POLICIES) Purchases............................... $2,612 $ 8,031 $6,694 Proceeds from sales..................... 400 25,745 881 SEPARATE ACCOUNT-II (TAX-QUALIFIED POLICIES) Purchases............................... $3,370 $ 7,046 $7,451 Proceeds from sales..................... 1,217 15,586 1,238
F-44 NYLIAC VARIABLE ANNUITY SEPARATE ACCOUNTS-I AND -II NON-QUALIFIED AND TAX-QUALIFIED POLICIES --------------------------------------------------------------------------------
MAINSTAY VP MAINSTAY VP MAINSTAY VP MAINSTAY VP MAINSTAY VP COMMON CONSERVATIVE MAINSTAY VP DEVELOPING FLOATING MAINSTAY VP CASH STOCK-- ALLOCATION-- CONVERTIBLE-- GROWTH-- RATE-- GOVERNMENT-- MANAGEMENT INITIAL CLASS SERVICE CLASS INITIAL CLASS INITIAL CLASS SERVICE CLASS INITIAL CLASS ------------------------------------------------------------------------------------------------------------------ 17,472 2,151 592 1,042 168 857 1,751 $17,471 $52,923 $6,461 $11,662 $1,875 $8,421 $19,228 22,380 2,960 469 1,126 249 803 1,773 $22,380 $72,960 $5,057 $12,211 $2,681 $7,888 $19,437
MAINSTAY VP MAINSTAY VP MAINSTAY VP MAINSTAY VP MAINSTAY VP MAINSTAY VP MAINSTAY VP INCOME & INTERNATIONAL LARGE CAP MID CAP MID CAP MID CAP MODERATE GROWTH-- EQUITY-- GROWTH-- CORE-- GROWTH-- VALUE-- ALLOCATION-- INITIAL CLASS INITIAL CLASS INITIAL CLASS INITIAL CLASS INITIAL CLASS INITIAL CLASS SERVICE CLASS -------------------------------------------------------------------------------------------------------------------- -- 1,028 302 492 656 901 608 -- $14,975 $3,470 $6,981 $ 8,289 $11,093 $ 6,668 -- 1,263 515 707 910 1,189 1,083 -- $18,263 $5,951 $9,970 $11,403 $14,528 $11,794
MAINSTAY VP MAINSTAY VP MAINSTAY VP MAINSTAY VP MAINSTAY VP COMMON CONSERVATIVE MAINSTAY VP DEVELOPING FLOATING MAINSTAY VP CASH STOCK-- ALLOCATION-- CONVERTIBLE-- GROWTH-- RATE-- GOVERNMENT-- MANAGEMENT INITIAL CLASS SERVICE CLASS INITIAL CLASS INITIAL CLASS SERVICE CLASS INITIAL CLASS ------------------------------------------------------------------------------------------------------------------ $14,851 $ 4,947 $4,572 $1,103 $693 $5,886 $2,098 12,505 12,188 977 3,971 878 5,639 5,528 $13,944 $ 6,553 $3,280 $1,456 $837 $5,155 $1,714 10,247 13,067 672 3,143 868 3,403 4,352
MAINSTAY VP MAINSTAY VP MAINSTAY VP MAINSTAY VP MAINSTAY VP MAINSTAY VP MAINSTAY VP INCOME & INTERNATIONAL LARGE CAP MID CAP MID CAP MID CAP MODERATE GROWTH EQUITY-- GROWTH-- CORE-- GROWTH-- VALUE-- ALLOCATION-- INITIAL CLASS INITIAL CLASS INITIAL CLASS INITIAL CLASS INITIAL CLASS INITIAL CLASS SERVICE CLASS -------------------------------------------------------------------------------------------------------------------- $1,091 $3,307 $ 767 $1,448 $1,621 $1,755 $4,366 5,134 3,677 2,053 2,087 4,168 3,496 1,019 $1,123 $4,228 $ 726 $2,222 $1,811 $2,355 $6,573 5,953 3,547 1,606 2,027 3,557 3,537 603
F-45 NOTES TO FINANCIAL STATEMENTS (CONTINUED)
MAINSTAY VP MODERATE MAINSTAY VP MAINSTAY VP GROWTH S&P 500 SMALL CAP ALLOCATION-- INDEX-- GROWTH-- SERVICE CLASS INITIAL CLASS INITIAL CLASS ------------------------------------------------------ SEPARATE ACCOUNT-I (NON-QUALIFIED POLICIES) Number of shares........................ 753 3,164 317 Identified cost......................... $ 8,381 $ 82,586 $3,360 SEPARATE ACCOUNT-II (TAX-QUALIFIED POLICIES) Number of shares........................ 1,107 4,432 420 Identified cost......................... $12,071 $113,444 $4,503
JANUS ASPEN FIDELITY(R) FIDELITY(R) SERIES VIP VIP BALANCED-- EQUITY-INCOME-- MID CAP-- INSTITUTIONAL INITIAL CLASS SERVICE CLASS 2 SHARES ------------------------------------------------------ SEPARATE ACCOUNT-I (NON-QUALIFIED POLICIES) Number of shares........................ 955 252 1,138 Identified cost......................... $22,237 $ 8,059 $27,346 SEPARATE ACCOUNT-II (TAX-QUALIFIED POLICIES) Number of shares........................ 1,271 431 2,041 Identified cost......................... $30,009 $13,750 $50,391
MAINSTAY VP MODERATE MAINSTAY VP MAINSTAY VP GROWTH S&P 500 SMALL CAP ALLOCATION-- INDEX-- GROWTH-- SERVICE CLASS INITIAL CLASS INITIAL CLASS ------------------------------------------------------ SEPARATE ACCOUNT-I (NON-QUALIFIED POLICIES) Purchases............................... $4,992 $ 1,932 $ 436 Proceeds from sales..................... 747 23,924 1,517 SEPARATE ACCOUNT-II (TAX-QUALIFIED POLICIES) Purchases............................... $5,899 $ 2,337 $ 592 Proceeds from sales..................... 1,439 27,699 1,827
JANUS ASPEN FIDELITY(R) FIDELITY(R) SERIES VIP VIP BALANCED-- EQUITY-INCOME-- MID CAP-- INSTITUTIONAL INITIAL CLASS SERVICE CLASS 2 SHARES ------------------------------------------------------ SEPARATE ACCOUNT-I (NON-QUALIFIED POLICIES) Purchases............................... $3,223 $1,674 $ 1,396 Proceeds from sales..................... 5,606 2,028 7,818 SEPARATE ACCOUNT-II (TAX-QUALIFIED POLICIES) Purchases............................... $4,408 $2,815 $ 2,357 Proceeds from sales..................... 5,450 2,937 11,640
F-46 NYLIAC VARIABLE ANNUITY SEPARATE ACCOUNTS-I AND -II NON-QUALIFIED AND TAX-QUALIFIED POLICIES
COLUMBIA ALGER CVS SMALL CAP MAINSTAY VP AMERICAN CALVERT VALUE FUND, DREYFUS IP FIDELITY(R) TOTAL MAINSTAY VP SMALL SOCIAL VARIABLE TECHNOLOGY VIP RETURN-- VALUE-- CAPITALIZATION-- BALANCED SERIES-- GROWTH-- CONTRAFUND(R)-- INITIAL CLASS INITIAL CLASS CLASS O SHARES PORTFOLIO CLASS B INITIAL SHARES INITIAL CLASS -------------------------------------------------------------------------------------------------------------------- 3,601 1,968 302 960 96 106 1,969 $68,307 $31,681 $ 6,001 $1,730 $1,889 $1,014 $51,664 4,116 2,538 455 2,371 124 212 3,121 $79,212 $40,049 $10,174 $4,248 $2,421 $1,925 $81,807
JANUS ASPEN NEUBERGER SERIES BERMAN ROYCE ROYCE WORLDWIDE MFS(R) MFS(R) MFS(R) AMT MID-CAP MICRO-CAP SMALL-CAP GROWTH-- INVESTORS RESEARCH UTILITIES GROWTH PORTFOLIO-- PORTFOLIO-- INSTITUTIONAL TRUST SERIES-- SERIES-- SERIES-- PORTFOLIO-- INVESTMENT INVESTMENT SHARES INITIAL CLASS INITIAL CLASS SERVICE CLASS CLASS S CLASS CLASS -------------------------------------------------------------------------------------------------------------------- 747 47 77 664 44 179 139 $30,042 $ 787 $1,100 $17,275 $1,052 $2,566 $1,475 1,142 67 117 940 44 208 177 $48,506 $1,163 $1,711 $24,254 $1,070 $3,009 $1,856
COLUMBIA ALGER CVS SMALL CAP MAINSTAY VP AMERICAN CALVERT VALUE FUND, DREYFUS IP FIDELITY(R) TOTAL MAINSTAY VP SMALL SOCIAL VARIABLE TECHNOLOGY VIP RETURN-- VALUE-- CAPITALIZATION-- BALANCED SERIES-- GROWTH-- CONTRAFUND(R)-- INITIAL CLASS INITIAL CLASS CLASS O SHARES PORTFOLIO CLASS B INITIAL SHARES INITIAL CLASS -------------------------------------------------------------------------------------------------------------------- $ 6,499 $4,258 $ 513 $ 211 $502 $424 $14,562 16,021 9,609 2,896 535 711 416 10,729 $ 7,210 $5,371 $ 337 $ 588 $828 $321 $22,567 15,387 9,657 3,223 1,111 859 560 13,751
JANUS ASPEN NEUBERGER SERIES BERMAN ROYCE ROYCE WORLDWIDE MFS(R) MFS(R) MFS(R) AMT MID-CAP MICRO-CAP SMALL-CAP GROWTH-- INVESTORS RESEARCH UTILITIES GROWTH PORTFOLIO-- PORTFOLIO-- INSTITUTIONAL TRUST SERIES-- SERIES-- SERIES-- PORTFOLIO-- INVESTMENT INVESTMENT SHARES INITIAL CLASS INITIAL CLASS SERVICE CLASS CLASS S CLASS CLASS -------------------------------------------------------------------------------------------------------------------- $ 635 $130 $130 $7,353 $672 $1,337 $630 5,798 349 453 1,867 221 510 570 $ 756 $245 $138 $9,758 $602 $1,524 $565 8,792 648 513 3,104 410 981 397
F-47 NOTES TO FINANCIAL STATEMENTS (CONTINUED)
VAN KAMPEN T. ROWE UIF PRICE EMERGING EQUITY VAN ECK MARKETS INCOME WORLDWIDE EQUITY-- PORTFOLIO HARD ASSETS CLASS I ------------------------------------------------------ SEPARATE ACCOUNT-I (NON-QUALIFIED POLICIES) Number of shares........................ 666 460 718 Identified cost......................... $14,453 $13,367 $10,227 SEPARATE ACCOUNT-II (TAX-QUALIFIED POLICIES) Number of shares........................ 1,014 587 941 Identified cost......................... $21,939 $16,930 $12,966
VICTORY VIF DIVERSIFIED STOCK-- CLASS A SHARES -------------------- SEPARATE ACCOUNT-I (NON-QUALIFIED POLICIES) Number of shares........................ 94 Identified cost......................... $1,171 SEPARATE ACCOUNT-II (TAX-QUALIFIED POLICIES) Number of shares........................ 121 Identified cost......................... $1,475
VAN KAMPEN T. ROWE UIF PRICE VAN ECK EMERGING EQUITY WORLDWIDE MARKETS INCOME HARD EQUITY-- PORTFOLIO ASSETS CLASS I ------------------------------------------------------ SEPARATE ACCOUNT-I (NON-QUALIFIED POLICIES) Purchases............................... $2,724 $4,924 $3,930 Proceeds from sales..................... 4,223 2,710 2,691 SEPARATE ACCOUNT-II (TAX-QUALIFIED POLICIES) Purchases............................... $3,703 $6,379 $5,013 Proceeds from sales..................... 4,216 4,116 3,978
VICTORY VIF DIVERSIFIED STOCK-- CLASS A SHARES -------------------- SEPARATE ACCOUNT-I (NON-QUALIFIED POLICIES) Purchases............................... $403 Proceeds from sales..................... 360 SEPARATE ACCOUNT-II (TAX-QUALIFIED POLICIES) Purchases............................... $437 Proceeds from sales..................... 305
F-48 NYLIAC VARIABLE ANNUITY SEPARATE ACCOUNTS-I AND -II NON-QUALIFIED AND TAX-QUALIFIED POLICIES (THIS PAGE INTENTIONALLY LEFT BLANK) F-49 NOTES TO FINANCIAL STATEMENTS (CONTINUED) NOTE 3--Expenses and Related Party Transactions: -------------------------------------------------------------------------------- NYLIAC deducts a surrender charge on certain partial withdrawals and surrenders. This charge is 7% during the first three policy years and declines 1% per year for each additional policy year, until the ninth policy year, after which no charge is made. Surrender charges are paid to NYLIAC. This charge is shown with policyowners' surrenders in the accompanying statements of changes in net assets. NYLIAC also deducts an annual policy service charge on each policy anniversary date and upon surrender, if on the policy anniversary and/or date of surrender the accumulation value is less than $10,000. This charge is the lesser of $30 or 2% of the accumulation value. This charge is shown as a reduction to payments received from policyowners in the accompanying statements of changes in net assets. Separate Account-I and Separate Account-II are charged for mortality and expense risks assumed and administrative services provided by NYLIAC. These charges are made daily at an annual rate of 1.20% and .10%, respectively, of the daily average variable accumulation value of each Investment Division. The amounts of these charges retained in the Investment Divisions represent funds of NYLIAC. Accordingly, NYLIAC participates in the results of each Investment Division ratably with the policyowners. These charges are disclosed on the accompanying statement of operations. NOTE 4--Distribution of Net Income: -------------------------------------------------------------------------------- Separate Account-I and Separate Account-II do not expect to declare dividends to policyowners from accumulated net investment income and realized gains. The income and gains are distributed to policyowners as part of withdrawals of amounts (in the form of surrenders, death benefits, transfers, or annuity payments) in excess of the net premium payments. F-50 NYLIAC VARIABLE ANNUITY SEPARATE ACCOUNTS-I AND -II NON-QUALIFIED AND TAX-QUALIFIED POLICIES (THIS PAGE INTENTIONALLY LEFT BLANK) F-51 NOTES TO FINANCIAL STATEMENTS (CONTINUED) NOTE 5--Unit Transactions (in 000's): -------------------------------------------------------------------------------- The changes in units outstanding for the years ended December 31, 2007 and 2006 were as follows:
MAINSTAY VP MAINSTAY VP BALANCED-- BOND-- SERVICE CLASS INITIAL CLASS ------------------ ------------------ 2007 2006 2007 2006 ---------------------------------------- SEPARATE ACCOUNT-I (NON-QUALIFIED POLICIES) Units issued.......................... 98 187 36 23 Units redeemed........................ (116) (49) (253) (365) ---- --- ---- ---- Net increase (decrease)............. (18) 138 (217) (342) ==== === ==== ==== SEPARATE ACCOUNT-II (TAX-QUALIFIED POLICIES) Units issued.......................... 86 209 72 61 Units redeemed........................ (109) (79) (233) (349) ---- --- ---- ---- Net increase (decrease)............. (23) 130 (161) (288) ==== === ==== ====
MAINSTAY VP DEVELOPING MAINSTAY VP GROWTH-- FLOATING RATE-- INITIAL CLASS SERVICE CLASS ------------------ ------------------ 2007 2006 2007 2006 ---------------------------------------- SEPARATE ACCOUNT-I (NON-QUALIFIED POLICIES) Units issued.......................... 4 5 220 667 Units redeemed........................ (23) (31) (246) (162) --- --- ---- ---- Net increase (decrease)............. (19) (26) (26) 505 === === ==== ==== SEPARATE ACCOUNT-II (TAX-QUALIFIED POLICIES) Units issued.......................... 17 26 257 475 Units redeemed........................ (31) (30) (133) (83) --- --- ---- ---- Net increase (decrease)............. (14) (4) 124 392 === === ==== ====
(a) For the period February 13, 2006 (Commencement of Investments) through December 31, 2006. F-52 NYLIAC VARIABLE ANNUITY SEPARATE ACCOUNTS-I AND -II NON-QUALIFIED AND TAX-QUALIFIED POLICIES --------------------------------------------------------------------------------
MAINSTAY VP MAINSTAY VP MAINSTAY VP CAPITAL MAINSTAY VP COMMON CONSERVATIVE MAINSTAY VP APPRECIATION-- CASH STOCK-- ALLOCATION-- CONVERTIBLE-- INITIAL CLASS MANAGEMENT INITIAL CLASS SERVICE CLASS INITIAL CLASS ------------------ ------------------ ------------------ ------------------ ------------------ 2007 2006 2007 2006 2007 2006 2007 2006(a) 2007 2006 ---------------------------------------------------------------------------------------------------------- 31 54 8,046 4,587 19 19 385 302 19 21 (900) (1,085) (6,790) (5,665) (359) (498) (81) (28) (172) (197) ------ ------ ------ ------ ---- ---- --- --- ---- ---- (869) (1,031) 1,256 (1,078) (340) (479) 304 274 (153) (176) ====== ====== ====== ====== ==== ==== === === ==== ==== 163 210 8,241 3,594 69 82 262 249 30 32 (1,097) (1,434) (6,134) (4,604) (426) (555) (42) (10) (133) (141) ------ ------ ------ ------ ---- ---- --- --- ---- ---- (934) (1,224) 2,107 (1,010) (357) (473) 220 239 (103) (109) ====== ====== ====== ====== ==== ==== === === ==== ====
MAINSTAY VP MAINSTAY VP MAINSTAY VP MAINSTAY VP MAINSTAY VP GROWTH HIGH YIELD ICAP SELECT INCOME & GOVERNMENT-- ALLOCATION-- CORPORATE BOND-- EQUITY-- GROWTH-- INITIAL CLASS SERVICE CLASS INITIAL CLASS INITIAL CLASS INITIAL CLASS ------------------ ------------------ ------------------ ------------------ ------------------ 2007 2006 2007 2006(a) 2007 2006 2007 2006 2007 2006 ---------------------------------------------------------------------------------------------------------- 25 17 213 196 103 90 419 16 8 4 (252) (337) (33) (6) (976) (1,276) (43) (25) (356) (75) ---- ---- --- --- ---- ------ --- --- ---- ---- (227) (320) 180 190 (873) (1,186) 376 (9) (348) (71) ==== ==== === === ==== ====== === === ==== ==== 29 40 204 290 126 122 470 32 9 19 (212) (289) (38) (8) (630) (911) (77) (33) (427) (103) ---- ---- --- --- ---- ------ --- --- ---- ---- (183) (249) 166 282 (504) (789) 393 (1) (418) (84) ==== ==== === === ==== ====== === === ==== ====
F-53 NOTES TO FINANCIAL STATEMENTS (CONTINUED) NOTE 5--Unit Transactions (in 000's) (Continued): --------------------------------------------------------------------------------
MAINSTAY VP INTERNATIONAL MAINSTAY VP EQUITY-- LARGE CAP GROWTH-- INITIAL CLASS INITIAL CLASS ------------------ ------------------ 2007 2006 2007 2006 ---------------------------------------- SEPARATE ACCOUNT-I (NON-QUALIFIED POLICIES) Units issued.......................... 61 141 8 31 Units redeemed........................ (118) (133) (93) (63) ---- ---- --- --- Net increase (decrease)............. (57) 8 (85) (32) ==== ==== === === SEPARATE ACCOUNT-II (TAX-QUALIFIED POLICIES) Units issued.......................... 118 195 23 37 Units redeemed........................ (143) (138) (79) (71) ---- ---- --- --- Net increase (decrease)............. (25) 57 (56) (34) ==== ==== === ===
MAINSTAY VP MAINSTAY VP SMALL CAP GROWTH-- TOTAL RETURN-- INITIAL CLASS INITIAL CLASS ------------------ ------------------ 2007 2006 2007 2006 ---------------------------------------- SEPARATE ACCOUNT-I (NON-QUALIFIED POLICIES) Units issued.......................... 7 11 21 45 Units redeemed........................ (124) (79) (593) (696) ---- ---- ---- ---- Net increase (decrease)............. (117) (68) (572) (651) ==== ==== ==== ==== SEPARATE ACCOUNT-II (TAX-QUALIFIED POLICIES) Units issued.......................... 20 31 91 97 Units redeemed........................ (150) (109) (641) (932) ---- ---- ---- ---- Net increase (decrease)............. (130) (78) (550) (835) ==== ==== ==== ====
(a) For the period February 13, 2006 (Commencement of Investments) through December 31, 2006. F-54 NYLIAC VARIABLE ANNUITY SEPARATE ACCOUNTS-I AND -II NON-QUALIFIED AND TAX-QUALIFIED POLICIES --------------------------------------------------------------------------------
MAINSTAY VP MAINSTAY VP MAINSTAY VP MAINSTAY VP MAINSTAY VP MODERATE MID CAP MID CAP MID CAP MODERATE GROWTH CORE-- GROWTH-- VALUE-- ALLOCATION-- ALLOCATION-- INITIAL CLASS INITIAL CLASS INITIAL CLASS SERVICE CLASS SERVICE CLASS ------------------ ------------------ ------------------ ------------------ ------------------ 2007 2006 2007 2006 2007 2006 2007 2006(a) 2007 2006(a) ---------------------------------------------------------------------------------------------------------- 9 36 13 17 28 26 343 331 377 400 (82) (129) (209) (144) (205) (252) (65) (13) (36) (6) ---- ---- ---- ---- ---- ---- --- --- ---- --- (73) (93) (196) (127) (177) (226) 278 318 341 394 ==== ==== ==== ==== ==== ==== === === ==== === 61 102 41 88 54 67 559 572 459 747 (102) (99) (196) (136) (218) (224) (70) (6) (117) (24) ---- ---- ---- ---- ---- ---- --- --- ---- --- (41) 3 (155) (48) (164) (157) 489 566 342 723 ==== ==== ==== ==== ==== ==== === === ==== === MAINSTAY VP S&P 500 INDEX-- INITIAL CLASS ------------------ 2007 2006 ------------------ 42 49 (679) (869) ---- ---- (637) (820) ==== ==== 131 167 (864) (977) ---- ---- (733) (810) ==== ====
ALGER AMERICAN CVS CALVERT COLUMBIA MAINSTAY VP SMALL SOCIAL SMALL CAP VALUE VALUE-- CAPITALIZATION-- BALANCED FUND, VARIABLE INITIAL CLASS CLASS O SHARES PORTFOLIO SERIES--CLASS B ------------------ ------------------ ------------------ ------------------ 2007 2006 2007 2006 2007 2006 2007 2006 ------------------------------------------------------------------------------------ 26 31 7 59 2 -- 5 94 (355) (382) (153) (158) (23) (26) (36) (27) ---- ---- ---- ---- --- --- --- --- (329) (351) (146) (99) (21) (26) (31) 67 ==== ==== ==== ==== === === === === 57 80 41 75 10 14 15 87 (382) (441) (217) (150) (49) (35) (36) (36) ---- ---- ---- ---- --- --- --- --- (325) (361) (176) (75) (39) (21) (21) 51 ==== ==== ==== ==== === === === ===
F-55 NOTES TO FINANCIAL STATEMENTS (CONTINUED) NOTE 5--Unit Transactions (in 000's) (Continued): --------------------------------------------------------------------------------
DREYFUS IP FIDELITY(R) TECHNOLOGY VIP GROWTH-- CONTRAFUND(R)-- INITIAL SHARES INITIAL CLASS ------------------ ------------------ 2007 2006 2007 2006 ---------------------------------------- SEPARATE ACCOUNT-I (NON-QUALIFIED POLICIES) Units issued.......................... 9 3 47 67 Units redeemed........................ (10) (35) (363) (334) --- --- ---- ---- Net increase (decrease)............. (1) (32) (316) (267) === === ==== ==== SEPARATE ACCOUNT-II (TAX-QUALIFIED POLICIES) Units issued.......................... 12 22 118 146 Units redeemed........................ (34) (15) (535) (443) --- --- ---- ---- Net increase (decrease)............. (22) 7 (417) (297) === === ==== ====
MFS(R) INVESTORS MFS(R) TRUST RESEARCH SERIES-- SERIES-- INITIAL CLASS INITIAL CLASS ------------------ ------------------ 2007 2006 2007 2006 ---------------------------------------- SEPARATE ACCOUNT-I (NON-QUALIFIED POLICIES) Units issued.......................... 7 2 1 2 Units redeemed........................ (26) (26) (26) (34) --- --- --- --- Net increase (decrease)............. (19) (24) (25) (32) === === === === SEPARATE ACCOUNT-II (TAX-QUALIFIED POLICIES) Units issued.......................... 12 6 7 9 Units redeemed........................ (47) (37) (36) (76) --- --- --- --- Net increase (decrease)............. (35) (31) (29) (67) === === === ===
F-56 NYLIAC VARIABLE ANNUITY SEPARATE ACCOUNTS-I AND -II NON-QUALIFIED AND TAX-QUALIFIED POLICIES --------------------------------------------------------------------------------
JANUS ASPEN JANUS ASPEN FIDELITY(R) FIDELITY(R) SERIES SERIES VIP VIP BALANCED-- WORLDWIDE GROWTH-- EQUITY-INCOME-- MID CAP-- INSTITUTIONAL INSTITUTIONAL INITIAL CLASS SERVICE CLASS 2 SHARES SHARES ------------------ ------------------ ------------------ ------------------ 2007 2006 2007 2006 2007 2006 2007 2006 ------------------------------------------------------------------------------------ 26 35 16 57 33 37 26 29 (215) (210) (74) (59) (305) (392) (275) (489) ---- ---- ---- --- ---- ---- ---- ---- (189) (175) (58) (2) (272) (355) (249) (460) ==== ==== ==== === ==== ==== ==== ==== 76 66 49 198 108 114 74 101 (237) (238) (120) (89) (508) (508) (459) (565) ---- ---- ---- --- ---- ---- ---- ---- (161) (172) (71) 109 (400) (394) (385) (464) ==== ==== ==== === ==== ==== ==== ====
NEUBERGER MFS(R) BERMAN ROYCE ROYCE UTILITIES AMT MID-CAP MICRO-CAP SMALL-CAP SERIES-- GROWTH PORTFOLIO-- PORTFOLIO-- PORTFOLIO-- SERVICE CLASS CLASS S INVESTMENT CLASS INVESTMENT CLASS ------------------ ------------------ ------------------ ------------------ 2007 2006 2007 2006 2007 2006 2007 2006 ------------------------------------------------------------------------------------ 298 194 30 3 58 109 25 87 (91) (95) (3) (2) (16) (13) (24) (20) ---- ---- --- --- --- --- --- --- 207 99 27 1 42 96 1 67 ==== ==== === === === === === === 417 316 25 26 64 148 26 87 (183) (122) (13) (12) (44) (5) (17) (15) ---- ---- --- --- --- --- --- --- 234 194 12 14 20 143 9 72 ==== ==== === === === === === ===
F-57 NOTES TO FINANCIAL STATEMENTS (CONTINUED) NOTE 5--Unit Transactions (in 000's) (Continued): --------------------------------------------------------------------------------
VAN ECK T. ROWE PRICE WORLDWIDE EQUITY INCOME HARD PORTFOLIO ASSETS ------------------ ------------------ 2007 2006 2007 2006 ---------------------------------------- SEPARATE ACCOUNT-I (NON-QUALIFIED POLICIES) Units issued.......................... 36 76 78 154 Units redeemed........................ (181) (200) (58) (53) ---- ---- --- --- Net increase (decrease)............. (145) (124) 20 101 ==== ==== === === SEPARATE ACCOUNT-II (TAX-QUALIFIED POLICIES) Units issued.......................... 118 137 92 167 Units redeemed........................ (235) (192) (84) (61) ---- ---- --- --- Net increase (decrease)............. (117) (55) 8 106 ==== ==== === ===
VAN KAMPEN VICTORY UIF VIF EMERGING DIVERSIFIED MARKETS STOCK-- EQUITY-- CLASS A CLASS I SHARES ------------------ ------------------ 2007 2006 2007 2006 ---------------------------------------- SEPARATE ACCOUNT-I (NON-QUALIFIED POLICIES) Units issued.......................... 56 86 16 41 Units redeemed........................ (70) (68) (20) (14) --- --- --- --- Net increase (decrease)............. (14) 18 (4) 27 === === === === SEPARATE ACCOUNT-II (TAX-QUALIFIED POLICIES) Units issued.......................... 40 129 13 28 Units redeemed........................ (80) (82) (11) (24) --- --- --- --- Net increase (decrease)............. (40) 47 2 4 === === === ===
F-58 NYLIAC VARIABLE ANNUITY SEPARATE ACCOUNTS-I AND -II NON-QUALIFIED AND TAX-QUALIFIED POLICIES (THIS PAGE INTENTIONALLY LEFT BLANK) F-59 NOTES TO FINANCIAL STATEMENTS (CONTINUED) NOTE 6--Financial Highlights (Net Assets and Units Outstanding in 000's): -------------------------------------------------------------------------------- The following table presents financial highlights for each Investment Division as of December 31, 2007, 2006, 2005, 2004 and 2003.
MAINSTAY VP MAINSTAY VP BALANCED-- BOND-- SERVICE CLASS INITIAL CLASS ---------------------------- ------------------------------------------------ 2007 2006 2005 2007 2006 2005 2004 2003 ------------------------------------------------------------------------------ SEPARATE ACCOUNT-I (NON-QUALIFIED POLICIES) Net Assets......................... $5,814 $5,952 $4,021 $19,942 $22,809 $27,930 $32,655 $41,042 Units Outstanding.................. 504 522 384 1,074 1,291 1,633 1,924 2,485 Variable Accumulation Unit Value... $11.55 $11.41 $10.47 $ 18.57 $ 17.67 $ 17.12 $ 16.97 $ 16.52 Total Return....................... 1.2% 9.0% 4.7% 5.1% 3.2% 0.9% 2.7% 3.2% Investment Income Ratio............ 1.9% 2.0% 1.9% 3.5% 1.1% 3.0% 3.2% 3.7% SEPARATE ACCOUNT-II (TAX-QUALIFIED POLICIES) Net Assets......................... $7,342 $7,536 $5,541 $22,841 $24,607 $28,796 $32,507 $38,609 Units Outstanding.................. 636 659 529 1,230 1,391 1,679 1,915 2,337 Variable Accumulation Unit Value... $11.55 $11.41 $10.47 $ 18.57 $ 17.67 $ 17.12 $ 16.97 $ 16.52 Total Return....................... 1.2% 9.0% 4.7% 5.1% 3.2% 0.9% 2.7% 3.2% Investment Income Ratio............ 1.9% 1.9% 1.9% 3.5% 1.1% 3.0% 3.3% 3.8%
MAINSTAY VP COMMON STOCK-- INITIAL CLASS ------------------------------------------------ 2007 2006 2005 2004 2003 ------------------------------------------------ SEPARATE ACCOUNT-I (NON-QUALIFIED POLICIES) Net Assets......................... $50,558 $59,578 $64,668 $73,642 $76,639 Units Outstanding.................. 1,551 1,891 2,370 2,865 3,264 Variable Accumulation Unit Value... $ 32.60 $ 31.41 $ 27.32 $ 25.70 $ 23.48 Total Return....................... 3.8% 15.0% 6.3% 9.5% 24.7% Investment Income Ratio............ 1.2% 0.5% 0.9% 1.3% 1.0% SEPARATE ACCOUNT-II (TAX-QUALIFIED POLICIES) Net Assets......................... $69,699 $78,196 $80,988 $89,868 $89,598 Units Outstanding.................. 2,135 2,492 2,965 3,497 3,816 Variable Accumulation Unit Value... $ 32.60 $ 31.41 $ 27.32 $ 25.70 $ 23.48 Total Return....................... 3.8% 15.0% 6.3% 9.5% 24.7% Investment Income Ratio............ 1.2% 0.5% 1.0% 1.4% 1.1%
MAINSTAY VP MAINSTAY VP FLOATING RATE-- GOVERNMENT-- SERVICE CLASS INITIAL CLASS ---------------------------- ------------------------------------------------ 2007 2006 2005 2007 2006 2005 2004 2003 ------------------------------------------------------------------------------ SEPARATE ACCOUNT-I (NON-QUALIFIED POLICIES) Net Assets......................... $8,133 $8,345 $2,880 $19,211 $22,275 $27,258 $33,768 $47,553 Units Outstanding.................. 764 790 285 1,022 1,249 1,569 1,963 2,819 Variable Accumulation Unit Value... $10.65 $10.54 $10.10 $ 18.80 $ 17.86 $ 17.38 $ 17.20 $ 16.87 Total Return....................... 1.0% 4.4% 1.0% 5.3% 2.7% 1.1% 2.0% 0.6% Investment Income Ratio............ 6.3% 6.1% 4.8% 4.6% 0.9% 2.8% 3.6% 3.5% SEPARATE ACCOUNT-II (TAX-QUALIFIED POLICIES) Net Assets......................... $7,617 $6,237 $2,010 $19,466 $21,756 $25,496 $30,205 $40,019 Units Outstanding.................. 715 591 199 1,035 1,218 1,467 1,756 2,373 Variable Accumulation Unit Value... $10.65 $10.54 $10.10 $ 18.80 $ 17.86 $ 17.38 $ 17.20 $ 16.87 Total Return....................... 1.0% 4.4% 1.0% 5.3% 2.7% 1.1% 2.0% 0.6% Investment Income Ratio............ 6.3% 6.1% 4.7% 4.7% 1.0% 2.9% 3.7% 3.8%
Annualized percentages are shown for the Investment Income Ratio for all investment divisions in all periods. Charges and fees levied by NYLIAC are disclosed in Note 3. Expenses as a percent of average variable accumulation value were 1.30%, excluding expenses of the underlying funds, surrender charges and the annual policy fee. During the year that an individual division commenced operations, Total Return is calculated from the date of commencement through the end of the year. F-60 NYLIAC VARIABLE ANNUITY SEPARATE ACCOUNTS-I AND -II NON-QUALIFIED AND TAX-QUALIFIED POLICIES --------------------------------------------------------------------------------
MAINSTAY VP CAPITAL APPRECIATION-- MAINSTAY VP INITIAL CLASS CASH MANAGEMENT ------------------------------------------------ ------------------------------------------------ 2007 2006 2005 2004 2003 2007 2006 2005 2004 2003 -------------------------------------------------------------------------------------------------- $ 82,778 $ 95,153 $115,793 $139,443 $162,444 $17,455 $15,147 $16,122 $18,816 $27,888 3,168 4,037 5,068 6,529 7,820 12,112 10,856 11,934 14,156 20,884 $ 26.14 $ 23.56 $ 22.85 $ 21.36 $ 20.77 $ 1.44 $ 1.39 $ 1.35 $ 1.33 $ 1.34 10.9% 3.1% 7.0% 2.8% 25.4% 3.5% 3.3% 1.6% (0.5%) (0.6%) 0.1% 0.3% -- 0.2% 0.2% 4.7% 4.5% 2.9% 0.8% 0.7% $116,975 $127,390 $151,570 $174,656 $190,775 $22,380 $18,695 $19,638 $23,988 $32,002 4,474 5,408 6,632 8,178 9,184 15,515 13,408 14,418 18,047 23,965 $ 26.14 $ 23.56 $ 22.85 $ 21.36 $ 20.77 $ 1.44 $ 1.39 $ 1.35 $ 1.33 $ 1.34 10.9% 3.1% 7.0% 2.8% 25.4% 3.5% 3.2% 1.6% (0.5%) (0.6%) 0.1% 0.3% -- 0.2% 0.2% 4.7% 4.5% 2.9% 0.8% 0.7%
MAINSTAY VP CONSERVATIVE MAINSTAY VP MAINSTAY VP ALLOCATION-- CONVERTIBLE-- DEVELOPING GROWTH-- SERVICE CLASS INITIAL CLASS INITIAL CLASS ------------------ ------------------------------------------------ ------------------------------------------------ 2007 2006 2007 2006 2005 2004 2003 2007 2006 2005 2004 2003 ---------------------------------------------------------------------------------------------------------------------- $6,440 $2,905 $14,516 $15,911 $17,837 $21,042 $21,812 $2,508 $2,083 $2,155 $2,097 $2,275 578 274 632 785 961 1,191 1,293 158 177 203 219 248 $11.22 $10.60 $ 22.98 $ 20.27 $ 18.60 $ 17.67 $ 16.87 $15.85 $11.80 $10.61 $ 9.59 $ 9.18 5.8% 6.0% 13.4% 9.0% 5.2% 4.7% 20.7% 34.3% 11.2% 10.6% 4.5% 36.7% 3.7% 1.9% 2.1% 2.2% 1.5% 1.7% 2.5% -- -- -- -- -- $5,133 $2,527 $15,694 $15,913 $16,613 $17,987 $17,661 $3,749 $2,931 $2,675 $2,731 $2,776 459 239 684 787 896 1,020 1,049 234 248 252 284 302 $11.19 $10.57 $ 22.92 $ 20.22 $ 18.55 $ 17.63 $ 16.83 $15.88 $11.82 $10.63 $ 9.61 $ 9.20 5.8% 5.7% 13.4% 9.0% 5.2% 4.7% 20.7% 34.3% 11.2% 10.6% 4.5% 36.7% 3.5% 1.9% 2.2% 2.3% 1.5% 1.9% 2.6% -- -- -- -- --
MAINSTAY VP MAINSTAY VP MAINSTAY VP GROWTH HIGH YIELD ICAP ALLOCATION-- CORPORATE BOND-- SELECT EQUITY-- SERVICE CLASS INITIAL CLASS INITIAL CLASS ------------------ ------------------------------------------------ ------------------------------------------------ 2007 2006 2007 2006 2005 2004 2003 2007 2006 2005 2004 2003 ---------------------------------------------------------------------------------------------------------------------- $4,397 $1,990 $96,063 $117,708 $134,047 $156,942 $150,241 $ 8,695 $2,942 $2,581 $3,468 $2,648 370 190 3,670 4,543 5,729 6,804 7,248 583 207 216 301 253 $11.87 $10.92 $ 26.18 $ 25.92 $ 23.44 $ 23.07 $ 20.73 $ 14.90 $14.13 $12.00 $11.53 $10.49 8.7% 9.2% 1.0% 10.6% 1.6% 11.3% 34.6% 5.5% 17.8% 4.1% 9.9% 26.3% 1.1% 1.3% 6.2% 1.8% 5.4% 6.9% 7.9% 0.7% 0.3% 0.8% 1.0% 0.9% $5,371 $3,103 $85,676 $ 97,906 $107,082 $116,727 $108,307 $11,298 $5,063 $4,301 $4,460 $3,649 448 282 3,279 3,783 4,572 5,066 5,231 746 353 354 382 343 $11.97 $11.01 $ 26.15 $ 25.89 $ 23.41 $ 23.04 $ 20.71 $ 15.10 $14.32 $12.16 $11.68 $10.63 8.7% 10.1% 1.0% 10.6% 1.6% 11.3% 34.6% 5.5% 17.8% 4.1% 9.9% 26.3% 1.1% 1.4% 6.3% 1.8% 5.6% 7.0% 7.8% 0.6% 0.3% 0.9% 1.0% 0.9%
F-61 NOTES TO FINANCIAL STATEMENTS (CONTINUED) NOTE 6--Financial Highlights (Net Assets and Units Outstanding in 000's) (Continued): --------------------------------------------------------------------------------
MAINSTAY VP INCOME & GROWTH-- INITIAL CLASS ------------------------------------------------ 2007 2006 2005 2004 2003 ------------------------------------------------ SEPARATE ACCOUNT-I (NON-QUALIFIED POLICIES) Net Assets......................... -- $4,773 $4,996 $5,309 $4,797 Units Outstanding.................. -- 348 419 461 464 Variable Accumulation Unit Value... -- $13.72 $11.89 $11.51 $10.35 Total Return....................... -- 15.3% 3.4% 11.2% 27.0% Investment Income Ratio............ -- 0.6% 1.1% 1.7% 1.5% SEPARATE ACCOUNT-II (TAX-QUALIFIED POLICIES) Net Assets......................... -- $5,741 $5,976 $6,092 $5,379 Units Outstanding.................. -- 418 502 529 520 Variable Accumulation Unit Value... -- $13.72 $11.89 $11.51 $10.35 Total Return....................... -- 15.3% 3.4% 11.2% 27.0% Investment Income Ratio............ -- 0.6% 1.1% 1.8% 1.5%
MAINSTAY VP MID CAP CORE-- INITIAL CLASS ------------------------------------------------ 2007 2006 2005 2004 2003 ------------------------------------------------ SEPARATE ACCOUNT-I (NON-QUALIFIED POLICIES) Net Assets......................... $ 7,296 $ 8,277 $8,693 $5,763 $2,859 Units Outstanding.................. 411 484 577 438 262 Variable Accumulation Unit Value... $ 17.71 $ 17.08 $15.06 $13.16 $10.91 Total Return....................... 3.7% 13.5% 14.4% 20.6% 33.7% Investment Income Ratio............ 0.4% -- 0.6% 0.6% 0.6% SEPARATE ACCOUNT-II (TAX-QUALIFIED POLICIES) Net Assets......................... $10,457 $10,796 $9,472 $5,628 $2,806 Units Outstanding.................. 590 631 628 427 257 Variable Accumulation Unit Value... $ 17.74 $ 17.11 $15.08 $13.19 $10.93 Total Return....................... 3.7% 13.5% 14.4% 20.6% 33.7% Investment Income Ratio............ 0.4% -- 0.6% 0.6% 0.6%
MAINSTAY VP MAINSTAY VP MODERATE MODERATE GROWTH ALLOCATION-- ALLOCATION-- SERVICE CLASS SERVICE CLASS ------------------ ------------------ 2007 2006 2007 2006 -------------------------------------- SEPARATE ACCOUNT-I (NON-QUALIFIED POLICIES) Net Assets......................... $ 6,858 $3,407 $ 8,696 $4,284 Units Outstanding.................. 596 318 735 394 Variable Accumulation Unit Value... $ 11.48 $10.72 $ 11.72 $10.88 Total Return....................... 7.1% 7.2% 7.7% 8.8% Investment Income Ratio............ 2.6% 1.6% 2.0% 1.8% SEPARATE ACCOUNT-II (TAX-QUALIFIED POLICIES) Net Assets......................... $12,194 $6,133 $12,672 $8,054 Units Outstanding.................. 1,055 566 1,065 723 Variable Accumulation Unit Value... $ 11.56 $10.79 $ 11.89 $11.04 Total Return....................... 7.1% 7.9% 7.7% 10.4% Investment Income Ratio............ 2.6% 1.8% 1.8% 1.7%
Annualized percentages are shown for the Investment Income Ratio for all investment divisions in all periods. Charges and fees levied by NYLIAC are disclosed in Note 3. Expenses as a percent of average variable accumulation value were 1.30%, excluding expenses of the underlying funds, surrender charges and the annual policy fee. During the year that an individual division commenced operations, Total Return is calculated from the date of commencement through the end of the year. F-62 NYLIAC VARIABLE ANNUITY SEPARATE ACCOUNTS-I AND -II NON-QUALIFIED AND TAX-QUALIFIED POLICIES --------------------------------------------------------------------------------
MAINSTAY VP MAINSTAY VP INTERNATIONAL LARGE CAP EQUITY-- GROWTH-- INITIAL CLASS INITIAL CLASS ------------------------------------------------ ------------------------------------------------ 2007 2006 2005 2004 2003 2007 2006 2005 2004 2003 -------------------------------------------------------------------------------------------------- $18,741 $19,477 $14,883 $12,832 $9,245 $4,520 $4,920 $5,043 $6,446 $ 8,487 743 800 792 728 607 283 368 400 526 668 $ 25.23 $ 24.36 $ 18.79 $ 17.63 $15.22 $16.00 $13.36 $12.62 $12.25 $ 12.71 3.6% 29.6% 6.6% 15.8% 28.3% 19.8% 5.8% 3.0% (3.6%) 26.4% 0.7% 0.3% 1.7% 1.0% 2.0% -- 0.1% -- 0.2% 0.2% $23,008 $22,860 $16,553 $11,842 $8,147 $7,723 $7,192 $7,234 $9,043 $10,395 912 937 880 671 535 478 534 568 732 811 $ 25.24 $ 24.37 $ 18.80 $ 17.64 $15.23 $16.14 $13.47 $12.73 $12.36 $ 12.82 3.6% 29.6% 6.6% 15.8% 28.3% 19.8% 5.8% 3.0% (3.6%) 26.4% 0.7% 0.3% 1.9% 1.1% 2.0% -- 0.1% -- 0.2% 0.2%
MAINSTAY VP MAINSTAY VP MID CAP MID CAP GROWTH-- VALUE-- INITIAL CLASS INITIAL CLASS ------------------------------------------------ ------------------------------------------------ 2007 2006 2005 2004 2003 2007 2006 2005 2004 2003 -------------------------------------------------------------------------------------------------- $10,316 $11,764 $12,740 $9,433 $5,892 $11,159 $13,928 $15,360 $12,782 $7,511 619 815 942 806 609 787 964 1,190 1,032 704 $ 16.67 $ 14.59 $ 13.53 $11.70 $ 9.67 $ 14.19 $ 14.54 $ 12.92 $ 12.38 $10.67 14.3% 7.8% 15.6% 21.0% 42.9% (2.4%) 12.6% 4.3% 16.0% 27.3% -- -- 0.1% -- -- 0.9% 0.1% 0.8% 1.0% 1.2% $14,323 $14,844 $14,438 $9,572 $4,925 $14,731 $17,461 $17,499 $13,348 $8,130 844 999 1,047 803 500 1,053 1,217 1,374 1,094 773 $ 16.98 $ 14.86 $ 13.78 $11.92 $ 9.85 $ 13.98 $ 14.33 $ 12.73 $ 12.20 $10.52 14.3% 7.8% 15.6% 21.0% 42.9% (2.4%) 12.6% 4.3% 16.0% 27.3% -- -- -- -- -- 1.0% 0.1% 0.8% 1.0% 1.2%
MAINSTAY VP MAINSTAY VP S&P 500 SMALL CAP INDEX-- GROWTH-- INITIAL CLASS INITIAL CLASS ------------------------------------------------ ------------------------------------------------ 2007 2006 2005 2004 2003 2007 2006 2005 2004 2003 -------------------------------------------------------------------------------------------------- $ 94,709 $112,464 $122,733 $143,383 $146,296 $3,358 $4,819 $5,324 $5,773 $5,197 2,726 3,363 4,183 5,051 5,621 315 432 500 557 541 $ 34.75 $ 33.45 $ 29.36 $ 28.39 $ 26.03 $10.68 $11.18 $10.65 $10.37 $ 9.60 3.9% 13.9% 3.4% 9.1% 26.5% (4.4%) 4.9% 2.7% 8.0% 39.9% 1.5% 0.5% 1.1% 1.5% 1.3% -- -- -- -- -- $132,741 $152,329 $157,412 $173,793 $171,087 $4,462 $6,155 $6,704 $6,432 $4,771 3,820 4,553 5,363 6,123 6,574 411 541 619 610 489 $ 34.75 $ 33.45 $ 29.36 $ 28.39 $ 26.03 $10.86 $11.37 $10.83 $10.55 $ 9.77 3.9% 13.9% 3.4% 9.1% 26.5% (4.4%) 4.9% 2.7% 8.0% 39.9% 1.5% 0.5% 1.1% 1.5% 1.3% -- -- -- -- --
F-63 NOTES TO FINANCIAL STATEMENTS (CONTINUED) NOTE 6--Financial Highlights (Net Assets and Units Outstanding in 000's) (Continued): --------------------------------------------------------------------------------
MAINSTAY VP TOTAL RETURN-- INITIAL CLASS ------------------------------------------------ 2007 2006 2005 2004 2003 ------------------------------------------------ SEPARATE ACCOUNT-I (NON-QUALIFIED POLICIES) Net Assets......................... $65,985 $76,269 $85,369 $102,017 $113,786 Units Outstanding.................. 2,532 3,104 3,755 4,717 5,524 Variable Accumulation Unit Value... $ 26.08 $ 24.57 $ 22.74 $ 21.63 $ 20.60 Total Return....................... 6.1% 8.1% 5.1% 5.0% 18.1% Investment Income Ratio............ 2.1% 0.6% 1.4% 1.6% 1.8% SEPARATE ACCOUNT-II (TAX-QUALIFIED POLICIES) Net Assets......................... $75,472 $84,654 $97,302 $112,661 $121,853 Units Outstanding.................. 2,895 3,445 4,280 5,209 5,915 Variable Accumulation Unit Value... $ 26.08 $ 24.57 $ 22.74 $ 21.63 $ 20.60 Total Return....................... 6.1% 8.1% 5.1% 5.0% 18.1% Investment Income Ratio............ 2.2% 0.6% 1.4% 1.6% 1.9%
CVS CALVERT SOCIAL BALANCED PORTFOLIO ------------------------------------------------ 2007 2006 2005 2004 2003 ------------------------------------------------ SEPARATE ACCOUNT-I (NON-QUALIFIED POLICIES) Net Assets......................... $1,835 $2,246 $2,592 $3,204 $3,387 Units Outstanding.................. 87 108 134 172 195 Variable Accumulation Unit Value... $21.12 $20.82 $19.40 $18.60 $17.40 Total Return....................... 1.4% 7.4% 4.3% 6.9% 17.8% Investment Income Ratio............ 2.2% 2.1% 1.7% 1.6% 2.2% SEPARATE ACCOUNT-II (TAX-QUALIFIED POLICIES) Net Assets......................... $4,528 $5,279 $5,329 $5,584 $5,280 Units Outstanding.................. 214 253 274 300 303 Variable Accumulation Unit Value... $21.15 $20.85 $19.42 $18.62 $17.42 Total Return....................... 1.4% 7.4% 4.3% 6.9% 17.8% Investment Income Ratio............ 2.2% 2.3% 1.8% 1.7% 2.0%
FIDELITY(R) VIP CONTRAFUND(R)-- INITIAL CLASS ------------------------------------------------ 2007 2006 2005 2004 2003 ------------------------------------------------ SEPARATE ACCOUNT-I (NON-QUALIFIED POLICIES) Net Assets......................... $54,736 $55,525 $56,939 $52,630 $47,782 Units Outstanding.................. 1,758 2,074 2,341 2,497 2,584 Variable Accumulation Unit Value... $ 31.14 $ 26.82 $ 24.33 $ 21.07 $ 18.49 Total Return....................... 16.1% 10.3% 15.4% 14.0% 26.8% Investment Income Ratio............ 0.9% 1.3% 0.3% 0.3% 0.5% SEPARATE ACCOUNT-II (TAX-QUALIFIED POLICIES) Net Assets......................... $86,830 $85,742 $84,852 $73,367 $65,135 Units Outstanding.................. 2,842 3,259 3,556 3,549 3,592 Variable Accumulation Unit Value... $ 30.54 $ 26.31 $ 23.86 $ 20.67 $ 18.13 Total Return....................... 16.1% 10.3% 15.4% 14.0% 26.8% Investment Income Ratio............ 0.9% 1.3% 0.3% 0.3% 0.5%
Annualized percentages are shown for the Investment Income Ratio for all investment divisions in all periods. Charges and fees levied by NYLIAC are disclosed in Note 3. Expenses as a percent of average variable accumulation value were 1.30%, excluding expenses of the underlying funds, surrender charges and the annual policy fee. During the year that an individual division commenced operations, Total Return is calculated from the date of commencement through the end of the year. F-64 NYLIAC VARIABLE ANNUITY SEPARATE ACCOUNTS-I AND -II NON-QUALIFIED AND TAX-QUALIFIED POLICIES --------------------------------------------------------------------------------
ALGER AMERICAN MAINSTAY VP SMALL VALUE-- CAPITALIZATION-- INITIAL CLASS CLASS O SHARES ------------------------------------------------ ------------------------------------------------ 2007 2006 2005 2004 2003 2007 2006 2005 2004 2003 -------------------------------------------------------------------------------------------------- $36,488 $44,464 $45,425 $51,220 $52,162 $10,043 $10,671 $10,101 $ 9,890 $ 9,788 1,436 1,765 2,116 2,500 2,796 635 781 880 990 1,127 $ 25.43 $ 25.21 $ 21.49 $ 20.49 $ 18.65 $ 15.81 $ 13.66 $ 11.53 $ 9.99 $ 8.68 0.9% 17.3% 4.9% 9.8% 25.7% 15.7% 18.5% 15.4% 15.1% 40.5% 1.5% 0.4% 1.1% 1.1% 1.5% -- -- -- -- -- $47,047 $54,881 $54,597 $58,043 $56,255 $15,050 $15,455 $13,917 $12,222 $10,742 1,847 2,172 2,533 2,825 3,007 956 1,132 1,207 1,223 1,237 $ 25.50 $ 25.28 $ 21.55 $ 20.55 $ 18.71 $ 15.80 $ 13.66 $ 11.53 $ 9.99 $ 8.68 0.9% 17.3% 4.9% 9.8% 25.7% 15.7% 18.5% 15.4% 15.1% 40.5% 1.5% 0.4% 1.2% 1.1% 1.6% -- -- -- -- --
COLUMBIA SMALL CAP DREYFUS IP VALUE FUND, TECHNOLOGY VARIABLE SERIES-- GROWTH-- CLASS B INITIAL SHARES -------------------------------------- ------------------------------------------------ 2007 2006 2005 2004 2007 2006 2005 2004 2003 ---------------------------------------------------------------------------------------- $1,717 $2,186 $1,127 $ 140 $1,145 $1,017 $1,281 $1,707 $1,938 138 169 102 13 108 109 141 192 216 $12.47 $12.97 $11.01 $10.57 $10.61 $ 9.37 $ 9.10 $ 8.88 $ 8.95 (3.8%) 17.8% 4.1% 5.7% 13.2% 3.0% 2.4% (0.8%) 49.0% 0.3% 0.4% -- 0.5% -- -- -- -- -- $2,216 $2,587 $1,630 $ 23 $2,290 $2,222 $2,100 $2,470 $2,579 178 199 148 2 223 245 238 287 297 $12.47 $12.97 $11.01 $10.57 $10.29 $ 9.09 $ 8.83 $ 8.62 $ 8.69 (3.8%) 17.8% 4.1% 5.7% 13.2% 3.0% 2.4% (0.8%) 49.0% 0.3% 0.4% -- 0.6% -- -- -- -- --
FIDELITY(R) VIP FIDELITY(R) VIP EQUITY-INCOME-- MID CAP-- INITIAL CLASS SERVICE CLASS 2 ------------------------------------------------ ------------------------------------------------ 2007 2006 2005 2004 2003 2007 2006 2005 2004 2003 -------------------------------------------------------------------------------------------------- $22,752 $26,913 $25,988 $27,140 $25,421 $ 8,967 $ 8,918 $ 8,083 $4,269 $ 431 1,018 1,207 1,382 1,509 1,556 441 499 501 309 38 $ 22.35 $ 22.30 $ 18.80 $ 17.99 $ 16.34 $ 20.35 $ 17.87 $ 16.11 $13.83 $11.24 0.2% 18.6% 4.5% 10.1% 28.7% 13.8% 10.9% 16.5% 23.0% 12.4% 1.7% 3.3% 1.7% 1.5% 1.9% 0.5% 0.2% -- -- -- $30,288 $33,816 $31,688 $30,977 $27,839 $15,309 $14,735 $11,499 $5,080 $ 338 1,365 1,526 1,698 1,735 1,716 740 811 702 361 30 $ 22.19 $ 22.14 $ 18.66 $ 17.86 $ 16.22 $ 20.70 $ 18.18 $ 16.39 $14.07 $11.43 0.2% 18.6% 4.5% 10.1% 28.7% 13.8% 10.9% 16.5% 23.0% 14.3% 1.7% 3.3% 1.6% 1.5% 1.8% 0.5% 0.2% -- -- --
F-65 NOTES TO FINANCIAL STATEMENTS (CONTINUED) NOTE 6--Financial Highlights (Net Assets and Units Outstanding in 000's) (Continued): --------------------------------------------------------------------------------
JANUS ASPEN SERIES BALANCED-- INSTITUTIONAL SHARES ------------------------------------------------ 2007 2006 2005 2004 2003 ------------------------------------------------ SEPARATE ACCOUNT-I (NON-QUALIFIED POLICIES) Net Assets......................... $34,086 $37,742 $42,249 $49,154 $54,194 Units Outstanding.................. 1,310 1,582 1,937 2,400 2,834 Variable Accumulation Unit Value... $ 26.03 $ 23.85 $ 21.83 $ 20.48 $ 19.12 Total Return....................... 9.1% 9.3% 6.6% 7.1% 12.6% Investment Income Ratio............ 2.5% 2.1% 2.2% 2.2% 2.2% SEPARATE ACCOUNT-II (TAX-QUALIFIED POLICIES) Net Assets......................... $61,201 $65,618 $68,627 $74,451 $77,365 Units Outstanding.................. 2,342 2,742 3,136 3,625 4,035 Variable Accumulation Unit Value... $ 26.10 $ 23.92 $ 21.89 $ 20.54 $ 19.17 Total Return....................... 9.1% 9.3% 6.6% 7.1% 12.6% Investment Income Ratio............ 2.5% 2.1% 2.3% 2.2% 2.2%
MFS(R) RESEARCH SERIES-- INITIAL CLASS ------------------------------------------------ 2007 2006 2005 2004 2003 ------------------------------------------------ SEPARATE ACCOUNT-I (NON-QUALIFIED POLICIES) Net Assets......................... $1,555 $1,681 $1,886 $2,001 $1,882 Units Outstanding.................. 118 143 175 197 212 Variable Accumulation Unit Value... $13.17 $11.79 $10.81 $10.16 $ 8.89 Total Return....................... 11.7% 9.0% 6.4% 14.4% 23.1% Investment Income Ratio............ 0.7% 0.5% 0.5% 1.1% 0.7% SEPARATE ACCOUNT-II (TAX-QUALIFIED POLICIES) Net Assets......................... $2,358 $2,439 $2,952 $2,918 $2,537 Units Outstanding.................. 181 210 277 291 289 Variable Accumulation Unit Value... $13.01 $11.64 $10.67 $10.03 $ 8.77 Total Return....................... 11.7% 9.0% 6.4% 14.4% 23.1% Investment Income Ratio............ 0.7% 0.5% 0.5% 1.1% 0.7%
T. ROWE PRICE EQUITY INCOME PORTFOLIO ------------------------------------------------ 2007 2006 2005 2004 2003 ------------------------------------------------ SEPARATE ACCOUNT-I (NON-QUALIFIED POLICIES) Net Assets......................... $15,721 $17,858 $17,014 $15,968 $12,398 Units Outstanding.................. 917 1,062 1,186 1,143 1,007 Variable Accumulation Unit Value... $ 17.16 $ 16.83 $ 14.33 $ 13.97 $ 12.32 Total Return....................... 1.9% 17.4% 2.6% 13.4% 23.9% Investment Income Ratio............ 1.7% 1.6% 1.6% 1.6% 1.7% SEPARATE ACCOUNT-II (TAX-QUALIFIED POLICIES) Net Assets......................... $23,936 $25,397 $22,498 $19,083 $12,581 Units Outstanding.................. 1,385 1,502 1,557 1,355 1,014 Variable Accumulation Unit Value... $ 17.29 $ 16.96 $ 14.44 $ 14.08 $ 12.41 Total Return....................... 1.9% 17.4% 2.6% 13.4% 23.9% Investment Income Ratio............ 1.7% 1.6% 1.6% 1.7% 1.8%
Annualized percentages are shown for the Investment Income Ratio for all investment divisions in all periods. Charges and fees levied by NYLIAC are disclosed in Note 3. Expenses as a percent of average variable accumulation value were 1.30%, excluding expenses of the underlying funds, surrender charges and the annual policy fee. During the year that an individual division commenced operations, Total Return is calculated from the date of commencement through the end of the year. F-66 NYLIAC VARIABLE ANNUITY SEPARATE ACCOUNTS-I AND -II NON-QUALIFIED AND TAX-QUALIFIED POLICIES --------------------------------------------------------------------------------
JANUS ASPEN MFS(R) SERIES INVESTORS WORLDWIDE TRUST GROWTH-- SERIES-- INSTITUTIONAL SHARES INITIAL CLASS ------------------------------------------------ ------------------------------------------------ 2007 2006 2005 2004 2003 2007 2006 2005 2004 2003 -------------------------------------------------------------------------------------------------- $26,284 $28,916 $32,111 $40,513 $48,340 $1,101 $1,221 $1,322 $1,441 $1,479 1,301 1,550 2,010 2,646 3,265 92 111 135 155 175 $ 20.20 $ 18.67 $ 16.00 $ 15.31 $ 14.80 $11.95 $10.98 $ 9.84 $ 9.29 $ 8.45 8.2% 16.7% 4.5% 3.4% 22.4% 8.8% 11.5% 5.9% 9.9% 20.6% 0.7% 1.7% 1.3% 1.0% 1.1% 0.8% 0.5% 0.6% 0.6% 0.6% $40,184 $44,352 $45,417 $53,467 $58,703 $1,572 $1,838 $1,967 $1,977 $1,899 1,986 2,371 2,835 3,485 3,957 128 163 194 207 219 $ 20.24 $ 18.71 $ 16.03 $ 15.34 $ 14.83 $12.28 $11.28 $10.12 $ 9.55 $ 8.69 8.2% 16.7% 4.5% 3.4% 22.4% 8.8% 11.5% 5.9% 9.9% 20.6% 0.7% 1.7% 1.3% 1.0% 1.1% 0.8% 0.5% 0.6% 0.6% 0.7%
NEUBERGER ROYCE BERMAN AMT MICRO-CAP MFS(R) MID-CAP PORTFOLIO-- UTILITIES SERIES-- GROWTH PORTFOLIO-- INVESTMENT SERVICE CLASS CLASS S CLASS -------------------------------------- -------------------------------------- ---------------------------- 2007 2006 2005 2004 2007 2006 2005 2004 2007 2006 2005 ------------------------------------------------------------------------------------------------------------ $22,592 $14,051 $ 9,538 $1,794 $1,214 $ 604 $ 525 $ 210 $2,403 $1,778 $ 312 959 752 653 143 68 41 40 18 164 122 26 $ 23.53 $ 18.69 $ 14.46 $12.57 $17.95 $14.88 $13.17 $11.76 $14.73 $14.35 $12.01 25.9% 29.3% 15.1% 25.7% 20.6% 13.0% 12.0% 17.6% 2.6% 19.5% 20.1% 0.7% 1.8% 0.4% -- -- -- -- -- 1.6% 0.3% 1.9% $31,995 $20,973 $13,230 $2,143 $1,241 $ 853 $ 576 $ 248 $2,783 $2,429 $ 311 1,323 1,089 895 166 72 60 46 22 189 169 26 $ 24.16 $ 19.19 $ 14.85 $12.90 $17.11 $14.19 $12.56 $11.22 $14.76 $14.38 $12.04 25.9% 29.3% 15.1% 29.0% 20.6% 13.0% 12.0% 12.2% 2.6% 19.5% 20.4% 0.8% 1.8% 0.4% -- -- -- -- -- 1.5% 0.3% 1.9% ROYCE SMALL-CAP PORTFOLIO-- INVESTMENT CLASS ---------------------------- 2007 2006 2005 ---------------------------- $1,378 $1,391 $ 528 118 117 50 $11.66 $12.07 $10.59 (3.4%) 14.0% 5.9% -- 0.1% -- $1,761 $1,709 $ 684 142 133 61 $12.38 $12.82 $11.24 (3.4%) 14.0% 12.4% -- 0.1% --
VAN KAMPEN VAN ECK UIF WORLDWIDE EMERGING MARKETS HARD EQUITY-- ASSETS CLASS I ------------------------------------------------ ------------------------------------------------ 2007 2006 2005 2004 2003 2007 2006 2005 2004 2003 -------------------------------------------------------------------------------------------------- $18,894 $12,608 $ 7,976 $2,394 $1,288 $17,364 $12,850 $ 9,133 $5,991 $5,895 475 455 354 159 105 551 565 547 472 564 $ 39.72 $ 27.68 $ 22.53 $15.05 $12.30 $ 31.50 $ 22.72 $ 16.79 $12.70 $10.45 43.5% 22.9% 49.7% 22.4% 43.2% 38.6% 35.4% 32.1% 21.5% 47.7% 0.1% 0.1% 0.2% 0.3% 0.5% 0.4% 0.8% 0.4% 0.7% -- $24,113 $16,570 $10,967 $3,242 $1,550 $22,759 $17,308 $11,994 $8,335 $6,767 597 589 483 212 124 716 756 709 651 642 $ 40.34 $ 28.12 $ 22.88 $15.28 $12.49 $ 31.74 $ 22.90 $ 16.91 $12.80 $10.53 43.5% 22.9% 49.7% 22.4% 43.2% 38.6% 35.4% 32.1% 21.5% 47.7% 0.1% 0.1% 0.2% 0.3% 0.4% 0.4% 0.8% 0.4% 0.7% --
F-67 NOTES TO FINANCIAL STATEMENTS (CONTINUED) NOTE 6--Financial Highlights (Net Assets and Units Outstanding in 000's) (Continued): --------------------------------------------------------------------------------
VICTORY VIF DIVERSIFIED STOCK-- CLASS A SHARES -------------------------------------- 2007 2006 2005 2004 -------------------------------------- SEPARATE ACCOUNT-I (NON-QUALIFIED POLICIES) Net Assets......................... $1,230 $1,178 $ 738 $ 233 Units Outstanding.................. 87 91 64 22 Variable Accumulation Unit Value... $14.09 $12.98 $11.57 $10.78 Total Return....................... 8.5% 12.2% 7.3% 7.8% Investment Income Ratio............ 0.7% 0.3% 0.1% 1.3% SEPARATE ACCOUNT-II (TAX-QUALIFIED POLICIES) Net Assets......................... $1,588 $1,446 $1,236 $ 267 Units Outstanding.................. 110 108 104 24 Variable Accumulation Unit Value... $14.48 $13.34 $11.89 $11.07 Total Return....................... 8.5% 12.2% 7.3% 10.7% Investment Income Ratio............ 0.6% 0.3% 0.1% 1.4%
Annualized percentages are shown for the Investment Income Ratio for all investment divisions in all periods. Charges and fees levied by NYLIAC are disclosed in Note 3. Expenses as a percent of average variable accumulation value were 1.30%, excluding expenses of the underlying funds, surrender charges and the annual policy fee. During the year that an individual division commenced operations, Total Return is calculated from the date of commencement through the end of the year. F-68 NYLIAC VARIABLE ANNUITY SEPARATE ACCOUNTS-I AND -II NON-QUALIFIED AND TAX-QUALIFIED POLICIES (THIS PAGE INTENTIONALLY LEFT BLANK) F-69 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM -------------------------------------------------------------------------------- To the Board of Directors of New York Life Insurance and Annuity Corporation and the Variable Annuity Separate Accounts I and II Policyowners: In our opinion, the accompanying statement of assets and liabilities and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of the subaccounts listed in Note 1 of the New York Life Insurance and Annuity Corporation Variable Annuity Separate Account-I and the New York Life Insurance and Annuity Corporation Variable Annuity Separate Account-II as of December 31, 2007, the results of each of their operations, the changes in each of their net assets and the financial highlights for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America. These financial statements and the financial highlights (hereafter referred to as "financial statements") are the responsibility of New York Life Insurance and Annuity Corporation management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit 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, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of investments at December 31, 2007 by correspondence with the funds, provide a reasonable basis for our opinion. (-s- PricewaterhouseCooper LLP) PricewaterhouseCoopers LLP New York, New York February 14, 2008 F-70 NYLIAC VARIABLE ANNUITY SEPARATE ACCOUNT-III FINANCIAL STATEMENTS SERIES I POLICIES: New York Life Variable Annuity* New York Life Flexible Premium Variable Annuity* New York Life Plus Variable Annuity* SERIES II POLICIES: New York Life Access Variable Annuity* SERIES III POLICIES: New York Life Premium Plus Variable Annuity* SERIES IV POLICIES: New York Life Essentials Variable Annuity* New York Life Plus II Variable Annuity* SERIES V POLICIES: New York Life Select Variable Annuity* SERIES VI POLICIES: New York Life Premium Plus II Variable Annuity*
*Includes policies formerly known as LifeStages(R) and MainStay F-1 STATEMENT OF ASSETS AND LIABILITIES As of December 31, 2007
MAINSTAY VP MAINSTAY VP CAPITAL MAINSTAY VP BOND-- APPRECIATION-- CASH INITIAL CLASS INITIAL CLASS MANAGEMENT -------------------------------------------------- ASSETS: Investments, at net asset value..... $157,120,147 $222,936,849 $281,363,434 Dividends due and accrued........... -- -- 954,660 Net receivable from (payable to) New York Life Insurance and Annuity Corporation...................... 100,312 32,548 719,578 LIABILITIES: Liability to New York Life Insurance and Annuity Corporation for: Mortality and expense risk charges........................ 556,537 765,250 898,860 Administrative charges........... 47,811 87,077 64,118 ------------ ------------ ------------ Total net assets............... $156,616,111 $222,117,070 $282,074,694 ============ ============ ============ TOTAL NET ASSETS REPRESENTED BY: Net Assets of Policyowners: Series I Policies................ $103,808,061 $198,460,658 $121,911,806 Series II Policies............... 935,608 255,780 13,015,080 Series III Policies.............. 39,600,213 16,543,361 79,545,198 Series IV Policies............... 12,064,610 6,849,003 42,683,639 Series V Policies................ 207,619 8,268 4,303,536 Series VI Policies............... -- -- 20,615,435 ------------ ------------ ------------ Total net assets............... $156,616,111 $222,117,070 $282,074,694 ============ ============ ============ Series I variable accumulation unit value..................... $ 17.47 $ 20.37 $ 1.35 ============ ============ ============ Series II variable accumulation unit value..................... $ 14.12 $ 7.61 $ 1.11 ============ ============ ============ Series III variable accumulation unit value..................... $ 13.81 $ 6.93 $ 1.10 ============ ============ ============ Series IV variable accumulation unit value..................... $ 12.40 $ 11.69 $ 1.06 ============ ============ ============ Series V variable accumulation unit value..................... $ 11.88 $ 14.12 $ 1.04 ============ ============ ============ Series VI variable accumulation unit value..................... $ -- $ -- $ 1.05 ============ ============ ============ Identified Cost of Investment......... $154,354,207 $207,866,546 $281,363,905 ============ ============ ============
Not all investment divisions are available under all policies. The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. F-2 NYLIAC VARIABLE ANNUITY SEPARATE ACCOUNT-III
MAINSTAY VP MAINSTAY VP MAINSTAY VP HIGH YIELD MAINSTAY VP COMMON MAINSTAY VP DEVELOPING MAINSTAY VP CORPORATE ICAP SELECT STOCK-- CONVERTIBLE-- GROWTH-- GOVERNMENT-- BOND-- EQUITY-- INITIAL CLASS INITIAL CLASS INITIAL CLASS INITIAL CLASS INITIAL CLASS INITIAL CLASS -------------------------------------------------------------------------------------------------------- $219,189,307 $169,452,608 $29,743,734 $110,869,394 $510,730,516 $95,403,547 -- -- -- -- -- -- (37,973) (84,677) 110,031 (25,489) (105,323) 14,797 754,424 595,716 111,451 396,482 1,793,838 335,691 79,768 55,623 8,957 33,605 171,512 30,048 ------------ ------------ ----------- ------------ ------------ ----------- $218,317,142 $168,716,592 $29,733,357 $110,413,818 $508,659,843 $95,052,605 ============ ============ =========== ============ ============ =========== $181,426,862 $119,531,237 $18,277,850 $ 70,190,007 $382,935,842 $66,251,340 604,449 1,182,431 212,085 578,888 2,222,912 583,210 26,757,334 35,195,724 8,932,058 30,101,892 93,011,139 21,861,576 9,414,598 12,384,471 2,147,117 9,359,559 30,072,444 6,279,315 113,899 422,729 164,247 183,472 417,506 77,164 -- -- -- -- -- -- ------------ ------------ ----------- ------------ ------------ ----------- $218,317,142 $168,716,592 $29,733,357 $110,413,818 $508,659,843 $95,052,605 ============ ============ =========== ============ ============ =========== $ 28.11 $ 22.80 $ 14.26 $ 16.85 $ 25.68 $ 14.42 ============ ============ =========== ============ ============ =========== $ 9.76 $ 12.81 $ 13.58 $ 13.33 $ 16.19 $ 13.27 ============ ============ =========== ============ ============ =========== $ 9.80 $ 12.24 $ 13.62 $ 13.15 $ 15.88 $ 13.08 ============ ============ =========== ============ ============ =========== $ 13.89 $ 15.13 $ 18.09 $ 11.95 $ 16.31 $ 14.23 ============ ============ =========== ============ ============ =========== $ 15.44 $ 16.57 $ 22.17 $ 11.48 $ 16.99 $ 18.46 ============ ============ =========== ============ ============ =========== $ -- $ -- $ -- $ -- $ -- $ -- ============ ============ =========== ============ ============ =========== $194,119,795 $129,024,236 $20,878,791 $109,935,112 $474,104,654 $85,368,550 ============ ============ =========== ============ ============ ===========
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. F-3 STATEMENT OF ASSETS AND LIABILITIES (CONTINUED) As of December 31, 2007
MAINSTAY VP MAINSTAY VP MAINSTAY VP INTERNATIONAL LARGE CAP MID CAP EQUITY-- GROWTH-- CORE-- INITIAL CLASS INITIAL CLASS INITIAL CLASS -------------------------------------------------- ASSETS: Investments, at net asset value...................... $124,761,251 $73,259,034 $69,778,515 Dividends due and accrued..... -- -- -- Net receivable from (payable to) New York Life Insurance and Annuity Corporation.... (58,800) 82,316 7,466 LIABILITIES: Liability to New York Life Insurance and Annuity Corporation for: Mortality and expense risk charges.................. 445,513 254,178 247,843 Administrative charges..... 39,444 25,541 21,150 ------------ ----------- ----------- Total net assets......... $124,217,494 $73,061,631 $69,516,988 ============ =========== =========== TOTAL NET ASSETS REPRESENTED BY: Net Assets of Policyowners: Series I Policies.......... $ 84,427,671 $56,461,413 $44,023,976 Series II Policies......... 1,125,071 390,578 354,792 Series III Policies........ 29,445,167 12,304,003 18,072,018 Series IV Policies......... 9,134,033 3,645,789 7,040,617 Series V Policies.......... 85,552 259,848 25,585 Series VI Policies......... -- -- -- ------------ ----------- ----------- Total net assets......... $124,217,494 $73,061,631 $69,516,988 ============ =========== =========== Series I variable accumulation unit value.. $ 25.81 $ 15.61 $ 17.34 ============ =========== =========== Series II variable accumulation unit value.. $ 15.66 $ 8.68 $ 18.60 ============ =========== =========== Series III variable accumulation unit value.. $ 15.68 $ 7.40 $ 17.85 ============ =========== =========== Series IV variable accumulation unit value.. $ 18.62 $ 12.48 $ 17.55 ============ =========== =========== Series V variable accumulation unit value.. $ 20.26 $ 14.88 $ 20.48 ============ =========== =========== Series VI variable accumulation unit value.. $ -- $ -- $ -- ============ =========== =========== Identified Cost of Investment... $101,500,344 $60,779,176 $62,135,225 ============ =========== ===========
Not all investment divisions are available under all policies. The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. F-4 NYLIAC VARIABLE ANNUITY SEPARATE ACCOUNT-III
MAINSTAY VP MAINSTAY VP MAINSTAY VP MAINSTAY VP ALGER AMERICAN MID CAP MID CAP S&P 500 SMALL CAP MAINSTAY VP MAINSTAY VP SMALL GROWTH-- VALUE-- INDEX-- GROWTH-- TOTAL RETURN-- VALUE-- CAPITALIZATION-- INITIAL CLASS INITIAL CLASS INITIAL CLASS INITIAL CLASS INITIAL CLASS INITIAL CLASS CLASS O SHARES ---------------------------------------------------------------------------------------------------------------------------- $94,441,153 $121,616,677 $437,588,797 $41,690,770 $155,254,012 $204,076,829 $78,597,780 -- -- -- -- -- -- -- (33,246) (63,791) (287,230) (16,515) (69,715) (78,114) 2,747 334,432 428,902 1,504,089 147,235 530,165 705,913 286,085 29,354 35,603 156,546 12,733 57,416 66,816 28,320 ----------- ------------ ------------ ----------- ------------ ------------ ----------- $94,044,121 $121,088,381 $435,640,932 $41,514,287 $154,596,716 $203,225,986 $78,286,122 =========== ============ ============ =========== ============ ============ =========== $60,357,414 $ 73,159,997 $356,726,875 $24,405,180 $133,025,672 $151,096,864 $60,435,636 293,380 455,198 964,000 104,845 336,292 955,634 379,451 23,870,996 34,311,735 57,127,534 10,879,802 15,244,050 39,764,159 13,722,273 9,477,972 12,987,134 20,632,364 6,073,421 5,942,221 11,287,783 3,672,035 44,359 174,317 190,159 51,039 48,481 121,546 76,727 -- -- -- -- -- -- -- ----------- ------------ ------------ ----------- ------------ ------------ ----------- $94,044,121 $121,088,381 $435,640,932 $41,514,287 $154,596,716 $203,225,986 $78,286,122 =========== ============ ============ =========== ============ ============ =========== $ 15.70 $ 13.95 $ 27.58 $ 10.65 $ 21.45 $ 24.74 $ 15.64 =========== ============ ============ =========== ============ ============ =========== $ 19.94 $ 13.76 $ 10.40 $ 10.86 $ 9.81 $ 14.37 $ 10.89 =========== ============ ============ =========== ============ ============ =========== $ 15.87 $ 13.97 $ 10.10 $ 10.51 $ 9.38 $ 13.70 $ 10.08 =========== ============ ============ =========== ============ ============ =========== $ 17.15 $ 13.60 $ 13.76 $ 11.45 $ 12.95 $ 13.05 $ 20.78 =========== ============ ============ =========== ============ ============ =========== $ 24.45 $ 13.50 $ 16.18 $ 12.57 $ 14.45 $ 13.92 $ 24.07 =========== ============ ============ =========== ============ ============ =========== $ -- $ -- $ -- $ -- $ -- $ -- $ -- =========== ============ ============ =========== ============ ============ =========== $70,282,367 $109,068,456 $372,164,738 $38,512,090 $152,786,713 $171,444,685 $40,648,711 =========== ============ ============ =========== ============ ============ ===========
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. F-5 STATEMENT OF ASSETS AND LIABILITIES (CONTINUED) As of December 31, 2007
DREYFUS IP CVS CALVERT TECHNOLOGY FIDELITY(R) VIP SOCIAL BALANCED GROWTH-- CONTRAFUND(R)-- PORTFOLIO INITIAL SHARES INITIAL CLASS ---------------------------------------------------- ASSETS: Investments, at net asset value..... $40,298,540 $18,852,361 $404,152,104 Dividends due and accrued........... -- -- -- Net receivable from (payable to) New York Life Insurance and Annuity Corporation...................... (23,936) 24,482 (5,276) LIABILITIES: Liability to New York Life Insurance and Annuity Corporation for: Mortality and expense risk charges........................ 145,379 69,100 1,441,235 Administrative charges........... 12,134 5,598 143,037 ----------- ----------- ------------ Total net assets............... $40,117,091 $18,802,145 $402,562,556 =========== =========== ============ TOTAL NET ASSETS REPRESENTED BY: Net Assets of Policyowners: Series I Policies................ $21,345,129 $11,013,814 $310,381,886 Series II Policies............... 238,777 216,770 2,179,509 Series III Policies.............. 9,243,151 5,640,440 66,441,988 Series IV Policies............... 5,648,702 1,862,566 23,040,783 Series V Policies................ 808,901 68,555 518,390 Series VI Policies............... 2,832,431 -- -- ----------- ----------- ------------ Total net assets............... $40,117,091 $18,802,145 $402,562,556 =========== =========== ============ Series I variable accumulation unit value..................... $ 20.22 $ 10.32 $ 30.93 =========== =========== ============ Series II variable accumulation unit value..................... $ 10.47 $ 12.51 $ 16.15 =========== =========== ============ Series III variable accumulation unit value..................... $ 10.15 $ 10.40 $ 15.49 =========== =========== ============ Series IV variable accumulation unit value..................... $ 13.09 $ 12.54 $ 18.29 =========== =========== ============ Series V variable accumulation unit value..................... $ 14.02 $ 16.42 $ 21.40 =========== =========== ============ Series VI variable accumulation unit value..................... $ 12.87 $ -- $ -- =========== =========== ============ Identified Cost of Investment......... $38,616,479 $15,483,931 $367,698,413 =========== =========== ============
Not all investment divisions are available under all policies. The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. F-6 NYLIAC VARIABLE ANNUITY SEPARATE ACCOUNT-III
JANUS ASPEN JANUS ASPEN SERIES FIDELITY(R) VIP SERIES WORLDWIDE EQUITY- BALANCED-- GROWTH-- MFS(R) INVESTORS MFS(R) RESEARCH MFS(R) UTILITIES INCOME-- INSTITUTIONAL INSTITUTIONAL TRUST SERIES-- SERIES-- SERIES-- INITIAL CLASS SHARES SHARES INITIAL CLASS INITIAL CLASS INITIAL CLASS -------------------------------------------------------------------------------------------------------------- $195,124,245 $403,923,567 $171,300,103 $23,403,264 $26,553,605 $6,373,118 -- -- -- -- -- -- (132,650) (179,939) 39,964 (13,928) (2,444) (7,196) 677,361 1,411,855 586,548 82,914 95,362 25,923 63,338 145,558 65,979 7,386 9,127 1,125 ------------ ------------ ------------ ----------- ----------- ---------- $194,250,896 $402,186,215 $170,687,540 $23,299,036 $26,446,672 $6,338,874 ============ ============ ============ =========== =========== ========== $143,890,673 $322,937,479 $149,192,932 $16,463,038 $20,040,447 $2,435,248 902,711 1,446,794 391,934 271,545 181,460 85,349 39,193,903 58,855,496 15,136,418 5,209,493 5,125,383 3,574,363 9,959,623 18,623,774 5,874,652 1,283,233 1,093,843 178,449 303,986 322,672 91,604 71,727 5,539 65,465 -- -- -- -- -- -- ------------ ------------ ------------ ----------- ----------- ---------- $194,250,896 $402,186,215 $170,687,540 $23,299,036 $26,446,672 $6,338,874 ============ ============ ============ =========== =========== ========== $ 21.89 $ 25.99 $ 19.97 $ 11.99 $ 13.05 $ 21.76 ============ ============ ============ =========== =========== ========== $ 14.17 $ 13.40 $ 8.46 $ 10.57 $ 9.20 $ 25.48 ============ ============ ============ =========== =========== ========== $ 13.92 $ 12.59 $ 7.76 $ 10.37 $ 8.79 $ 20.33 ============ ============ ============ =========== =========== ========== $ 14.24 $ 13.98 $ 12.91 $ 13.76 $ 14.29 $ 32.88 ============ ============ ============ =========== =========== ========== $ 14.11 $ 14.27 $ 16.17 $ 17.21 $ 17.14 $ 28.99 ============ ============ ============ =========== =========== ========== $ -- $ -- $ -- $ -- $ -- $ -- ============ ============ ============ =========== =========== ========== $186,563,501 $315,309,335 $167,739,828 $17,208,640 $18,871,179 $4,892,662 ============ ============ ============ =========== =========== ========== NEUBERGER BERMAN AMT MID-CAP GROWTH PORTFOLIO-- CLASS I -------------- $7,328,739 -- (177) 27,550 1,589 ---------- $7,299,423 ========== $3,159,736 42,627 3,264,085 767,540 65,435 -- ---------- $7,299,423 ========== $ 14.92 ========== $ 15.29 ========== $ 15.36 ========== $ 21.44 ========== $ 20.45 ========== $ -- ========== $4,608,661 ==========
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. F-7 STATEMENT OF ASSETS AND LIABILITIES (CONTINUED) As of December 31, 2007
ROYCE ROYCE MICRO-CAP SMALL-CAP T. ROWE PRICE PORTFOLIO-- PORTFOLIO-- EQUITY INCOME INVESTMENT CLASS INVESTMENT CLASS PORTFOLIO ------------------------------------------------------ ASSETS: Investments, at net asset value..... $63,407,475 $42,879,259 $194,652,448 Dividends due and accrued........... -- -- -- Net receivable from (payable to) New York Life Insurance and Annuity Corporation...................... 104,990 132,907 21,289 LIABILITIES: Liability to New York Life Insurance and Annuity Corporation for: Mortality and expense risk charges........................ 230,906 155,306 697,313 Administrative charges........... 17,081 10,844 58,629 ----------- ----------- ------------ Total net assets............... $63,264,478 $42,846,016 $193,917,795 =========== =========== ============ TOTAL NET ASSETS REPRESENTED BY: Net Assets of Policyowners: Series I Policies................ $20,156,490 $13,289,314 $124,889,263 Series II Policies............... 1,311,060 1,355,199 1,614,583 Series III Policies.............. 12,084,963 8,699,774 51,769,647 Series IV Policies............... 19,047,988 12,084,841 15,378,423 Series V Policies................ 1,123,503 467,094 265,879 Series VI Policies............... 9,540,474 6,949,794 -- ----------- ----------- ------------ Total net assets............... $63,264,478 $42,846,016 $193,917,795 =========== =========== ============ Series I variable accumulation unit value..................... $ 14.88 $ 12.27 $ 16.99 =========== =========== ============ Series II variable accumulation unit value..................... $ 14.97 $ 11.58 $ 16.13 =========== =========== ============ Series III variable accumulation unit value..................... $ 14.67 $ 11.85 $ 15.76 =========== =========== ============ Series IV variable accumulation unit value..................... $ 14.49 $ 12.05 $ 14.07 =========== =========== ============ Series V variable accumulation unit value..................... $ 14.16 $ 11.40 $ 14.11 =========== =========== ============ Series VI variable accumulation unit value..................... $ 14.57 $ 11.88 $ -- =========== =========== ============ Identified Cost of Investment......... $67,563,212 $45,334,225 $168,470,263 =========== =========== ============
Not all investment divisions are available under all policies. The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. F-8 NYLIAC VARIABLE ANNUITY SEPARATE ACCOUNT-III
VAN KAMPEN UIF EMERGING VAN ECK MARKETS WORLDWIDE EQUITY-- HARD ASSETS CLASS I -------------------------------- $425,856,905 $127,316,152 -- -- 449,151 144,877 1,646,449 489,204 106,354 45,511 ------------ ------------ $424,553,253 $126,926,314 ============ ============ $144,461,016 $ 91,475,854 8,507,219 436,089 105,879,464 27,213,215 89,912,149 7,540,708 4,747,453 260,448 71,045,952 -- ------------ ------------ $424,553,253 $126,926,314 ============ ============ $ 40.93 $ 31.39 ============ ============ $ 40.36 $ 22.55 ============ ============ $ 40.82 $ 26.12 ============ ============ $ 38.67 $ 34.80 ============ ============ $ 48.17 $ 44.08 ============ ============ $ 42.57 $ -- ============ ============ $292,706,365 $ 78,372,625 ============ ============
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. F-9 STATEMENT OF ASSETS AND LIABILITIES (CONTINUED) As of December 31, 2007
MAINSTAY VP MAINSTAY VP MAINSTAY VP CAPITAL BALANCED-- BOND-- APPRECIATION-- SERVICE CLASS SERVICE CLASS SERVICE CLASS -------------------------------------------------- ASSETS: Investments, at net asset value..... $137,967,033 $104,239,868 $51,908,289 Dividends due and accrued........... -- -- -- Net receivable from (payable to) New York Life Insurance and Annuity Corporation...................... 7,419 379,688 15,799 LIABILITIES: Liability to New York Life Insurance and Annuity Corporation for: Mortality and expense risk charges........................ 521,965 397,667 203,728 Administrative charges........... 33,097 23,094 11,488 ------------ ------------ ----------- Total net assets............... $137,419,390 $104,198,795 $51,708,872 ============ ============ =========== TOTAL NET ASSETS REPRESENTED BY: Net Assets of Policyowners: Series I Policies................ $ 43,180,007 $ 17,118,807 $12,300,965 Series II Policies............... 3,819,625 4,130,722 601,423 Series III Policies.............. 33,229,989 27,639,367 16,118,894 Series IV Policies............... 31,072,833 31,506,466 11,934,664 Series V Policies................ 2,238,207 3,465,716 516,979 Series VI Policies............... 23,878,729 20,337,717 10,235,947 ------------ ------------ ----------- Total net assets............... $137,419,390 $104,198,795 $51,708,872 ============ ============ =========== Series I variable accumulation unit value..................... $ 11.51 $ 10.99 $ 13.83 ============ ============ =========== Series II variable accumulation unit value..................... $ 11.43 $ 10.80 $ 12.43 ============ ============ =========== Series III variable accumulation unit value..................... $ 11.45 $ 10.90 $ 13.86 ============ ============ =========== Series IV variable accumulation unit value..................... $ 11.50 $ 10.97 $ 13.79 ============ ============ =========== Series V variable accumulation unit value..................... $ 11.41 $ 10.70 $ 13.37 ============ ============ =========== Series VI variable accumulation unit value..................... $ 11.41 $ 10.81 $ 13.61 ============ ============ =========== Identified Cost of Investment......... $137,232,999 $101,458,542 $41,446,974 ============ ============ ===========
Not all investment divisions are available under all policies. The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. F-10 NYLIAC VARIABLE ANNUITY SEPARATE ACCOUNT-III
MAINSTAY VP MAINSTAY VP MAINSTAY VP MAINSTAY VP COMMON CONSERVATIVE MAINSTAY VP DEVELOPING MAINSTAY VP MAINSTAY VP GROWTH STOCK-- ALLOCATION-- CONVERTIBLE-- GROWTH-- FLOATING RATE-- GOVERNMENT-- ALLOCATION-- SERVICE CLASS SERVICE CLASS SERVICE CLASS SERVICE CLASS SERVICE CLASS SERVICE CLASS SERVICE CLASS --------------------------------------------------------------------------------------------------------------------------- $62,489,494 $117,425,551 $122,869,674 $40,121,932 $204,660,277 $68,615,932 $84,559,485 -- -- -- -- 1,036,645 -- -- 34,146 244,783 292,841 171,458 278,703 222,236 221,353 233,441 407,106 460,781 153,301 791,580 256,612 294,491 14,255 23,107 26,205 8,747 45,288 15,403 21,951 ----------- ------------ ------------ ----------- ------------ ----------- ----------- $62,275,944 $117,240,121 $122,675,529 $40,131,342 $205,138,757 $68,566,153 $84,464,396 =========== ============ ============ =========== ============ =========== =========== $11,643,827 $ 33,967,758 $ 20,596,014 $ 8,013,971 $ 50,518,762 $12,746,782 $31,812,427 1,029,286 9,872,541 3,777,922 1,216,421 14,727,965 2,056,357 1,602,398 15,905,085 25,713,354 33,759,408 10,746,268 51,295,782 18,224,453 16,106,112 21,136,563 21,457,790 37,117,272 10,779,021 52,121,709 19,355,333 19,361,928 560,302 2,744,975 2,407,494 630,162 3,332,955 2,732,900 999,193 12,000,881 23,483,703 25,017,419 8,745,499 33,141,584 13,450,328 14,582,338 ----------- ------------ ------------ ----------- ------------ ----------- ----------- $62,275,944 $117,240,121 $122,675,529 $40,131,342 $205,138,757 $68,566,153 $84,464,396 =========== ============ ============ =========== ============ =========== =========== $ 15.61 $ 11.28 $ 14.77 $ 19.79 $ 10.62 $ 10.71 $ 12.03 =========== ============ ============ =========== ============ =========== =========== $ 12.45 $ 11.21 $ 12.94 $ 16.27 $ 10.63 $ 10.78 $ 11.64 =========== ============ ============ =========== ============ =========== =========== $ 15.39 $ 11.23 $ 14.70 $ 19.36 $ 10.56 $ 10.57 $ 11.76 =========== ============ ============ =========== ============ =========== =========== $ 15.57 $ 11.19 $ 14.66 $ 19.73 $ 10.60 $ 10.70 $ 12.02 =========== ============ ============ =========== ============ =========== =========== $ 15.22 $ 11.15 $ 14.39 $ 19.07 $ 10.69 $ 10.51 $ 11.64 =========== ============ ============ =========== ============ =========== =========== $ 15.36 $ 11.10 $ 14.37 $ 19.74 $ 10.58 $ 10.54 $ 11.64 =========== ============ ============ =========== ============ =========== =========== $57,586,414 $116,083,487 $103,769,215 $30,536,498 $212,357,407 $67,398,085 $81,499,334 =========== ============ ============ =========== ============ =========== ===========
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. F-11 STATEMENT OF ASSETS AND LIABILITIES (CONTINUED) As of December 31, 2007
MAINSTAY VP HIGH YIELD MAINSTAY VP MAINSTAY VP CORPORATE ICAP SELECT INTERNATIONAL BOND-- EQUITY-- EQUITY-- SERVICE CLASS SERVICE CLASS SERVICE CLASS -------------------------------------------------- ASSETS: Investments, at net asset value..... $469,337,063 $105,408,871 $202,077,814 Dividends due and accrued........... -- -- -- Net receivable from (payable to) New York Life Insurance and Annuity Corporation...................... 112,326 237,278 278,824 LIABILITIES: Liability to New York Life Insurance and Annuity Corporation for: Mortality and expense risk charges........................ 1,800,803 387,018 767,588 Administrative charges........... 100,279 21,696 44,209 ------------ ------------ ------------ Total net assets............... $467,548,307 $105,237,435 $201,544,841 ============ ============ ============ TOTAL NET ASSETS REPRESENTED BY: Net Assets of Policyowners: Series I Policies................ $ 76,442,010 $ 18,508,990 $ 34,716,196 Series II Policies............... 13,751,728 4,483,408 5,359,418 Series III Policies.............. 135,740,590 25,972,915 50,876,132 Series IV Policies............... 138,150,251 30,523,089 62,626,604 Series V Policies................ 11,503,782 2,136,149 4,099,936 Series VI Policies............... 91,959,946 23,612,884 43,866,555 ------------ ------------ ------------ Total net assets............... $467,548,307 $105,237,435 $201,544,841 ============ ============ ============ Series I variable accumulation unit value..................... $ 14.20 $ 15.87 $ 19.19 ============ ============ ============ Series II variable accumulation unit value..................... $ 11.38 $ 12.94 $ 14.38 ============ ============ ============ Series III variable accumulation unit value..................... $ 14.01 $ 15.70 $ 18.73 ============ ============ ============ Series IV variable accumulation unit value..................... $ 14.25 $ 15.80 $ 18.93 ============ ============ ============ Series V variable accumulation unit value..................... $ 13.90 $ 15.43 $ 18.11 ============ ============ ============ Series VI variable accumulation unit value..................... $ 13.98 $ 15.60 $ 18.34 ============ ============ ============ Identified Cost of Investment......... $468,734,964 $101,714,744 $179,521,175 ============ ============ ============
Not all investment divisions are available under all policies. The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. F-12 NYLIAC VARIABLE ANNUITY SEPARATE ACCOUNT-III
MAINSTAY VP MAINSTAY VP MAINSTAY VP MAINSTAY VP MAINSTAY VP MAINSTAY VP MODERATE LARGE CAP MID CAP MID CAP MID CAP MODERATE GROWTH GROWTH-- CORE-- GROWTH-- VALUE-- ALLOCATION-- ALLOCATION-- SERVICE CLASS SERVICE CLASS SERVICE CLASS SERVICE CLASS SERVICE CLASS SERVICE CLASS -------------------------------------------------------------------------------------------------------- $50,074,872 $116,452,918 $150,538,547 $154,507,628 $184,377,129 $199,889,747 -- -- -- -- -- -- 209,674 110,520 (21,119) 24,002 246,879 410,656 185,142 443,032 571,638 576,180 646,666 703,092 10,247 25,353 32,980 33,876 42,454 47,237 ----------- ------------ ------------ ------------ ------------ ------------ $50,089,157 $116,095,053 $149,912,810 $153,921,574 $183,934,888 $199,550,074 =========== ============ ============ ============ ============ ============ $ 8,088,979 $ 22,216,994 $ 30,017,525 $ 27,197,257 $ 54,540,023 $ 66,814,796 1,145,793 2,508,523 1,921,751 2,489,347 8,562,633 7,033,701 12,887,814 29,030,432 39,208,405 42,800,620 40,679,927 43,548,344 15,201,100 33,257,235 42,594,267 49,928,677 44,834,939 42,214,633 998,812 2,167,755 1,636,582 2,019,569 4,095,646 3,058,660 11,766,659 26,914,114 34,534,280 29,486,104 31,221,720 36,879,940 ----------- ------------ ------------ ------------ ------------ ------------ $50,089,157 $116,095,053 $149,912,810 $153,921,574 $183,934,888 $199,550,074 =========== ============ ============ ============ ============ ============ $ 13.79 $ 18.88 $ 20.52 $ 15.20 $ 11.59 $ 11.87 =========== ============ ============ ============ ============ ============ $ 14.21 $ 13.51 $ 14.37 $ 11.62 $ 11.41 $ 11.63 =========== ============ ============ ============ ============ ============ $ 13.65 $ 18.60 $ 19.93 $ 15.24 $ 11.41 $ 11.66 =========== ============ ============ ============ ============ ============ $ 13.75 $ 18.73 $ 20.07 $ 15.17 $ 11.50 $ 11.80 =========== ============ ============ ============ ============ ============ $ 13.13 $ 18.51 $ 19.38 $ 14.83 $ 11.40 $ 11.44 =========== ============ ============ ============ ============ ============ $ 13.55 $ 18.37 $ 20.20 $ 14.96 $ 11.38 $ 11.63 =========== ============ ============ ============ ============ ============ $41,157,458 $113,122,210 $123,840,059 $156,112,443 $178,169,009 $192,614,840 =========== ============ ============ ============ ============ ============
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. F-13 STATEMENT OF ASSETS AND LIABILITIES (CONTINUED) As of December 31, 2007
MAINSTAY VP MAINSTAY VP S&P 500 SMALL CAP MAINSTAY VP INDEX-- GROWTH-- TOTAL RETURN-- SERVICE CLASS SERVICE CLASS SERVICE CLASS -------------------------------------------------- ASSETS: Investments, at net asset value..... $233,909,827 $65,552,675 $47,646,134 Dividends due and accrued........... -- -- -- Net receivable from (payable to) New York Life Insurance and Annuity Corporation...................... (39,274) 19,966 8,963 LIABILITIES: Liability to New York Life Insurance and Annuity Corporation for: Mortality and expense risk charges........................ 883,951 244,008 183,346 Administrative charges........... 54,453 15,632 10,073 ------------ ----------- ----------- Total net assets............... $232,932,149 $65,313,001 $47,461,678 ============ =========== =========== TOTAL NET ASSETS REPRESENTED BY: Net Assets of Policyowners: Series I Policies................ $ 49,748,914 $14,893,125 $ 9,999,727 Series II Policies............... 3,402,303 611,695 409,409 Series III Policies.............. 65,495,732 17,582,455 16,167,385 Series IV Policies............... 67,132,216 20,001,449 11,398,115 Series V Policies................ 4,530,034 639,358 685,793 Series VI Policies............... 42,622,950 11,584,919 8,801,249 ------------ ----------- ----------- Total net assets............... $232,932,149 $65,313,001 $47,461,678 ============ =========== =========== Series I variable accumulation unit value..................... $ 14.82 $ 13.43 $ 13.39 ============ =========== =========== Series II variable accumulation unit value..................... $ 12.36 $ 10.45 $ 12.00 ============ =========== =========== Series III variable accumulation unit value..................... $ 14.62 $ 13.41 $ 13.26 ============ =========== =========== Series IV variable accumulation unit value..................... $ 14.78 $ 13.15 $ 13.52 ============ =========== =========== Series V variable accumulation unit value..................... $ 14.53 $ 12.62 $ 12.96 ============ =========== =========== Series VI variable accumulation unit value..................... $ 14.58 $ 13.21 $ 12.99 ============ =========== =========== Identified Cost of Investment......... $191,944,933 $66,277,086 $44,255,621 ============ =========== ===========
Not all investment divisions are available under all policies. The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. F-14 NYLIAC VARIABLE ANNUITY SEPARATE ACCOUNT-III
COLUMBIA SMALL ALGER AMERICAN CAP VALUE DREYFUS IP FIDELITY(R) VIP MAINSTAY VP SMALL FUND, VARIABLE TECHNOLOGY FIDELITY(R) VIP EQUITY- VALUE-- CAPITALIZATION-- SERIES-- GROWTH-- CONTRAFUND(R)-- INCOME-- SERVICE CLASS CLASS S SHARES CLASS B SERVICE SHARES SERVICE CLASS 2 SERVICE CLASS 2 ------------------------------------------------------------------------------------------------------------ $104,615,586 $64,303,803 $49,925,294 $29,643,653 $347,368,734 $178,078,444 -- -- -- -- -- -- 23,821 5,298 41,838 34,170 710,028 236,776 397,354 255,711 188,120 111,211 1,333,507 665,022 21,920 16,050 12,887 7,706 84,941 39,327 ------------ ----------- ----------- ----------- ------------ ------------ $104,220,133 $64,037,340 $49,766,125 $29,558,906 $346,660,314 $177,610,871 ============ =========== =========== =========== ============ ============ $ 19,776,546 $12,943,645 $15,904,751 $ 7,240,622 $ 63,638,962 $ 33,726,024 2,203,339 848,048 1,941,958 640,226 7,894,359 5,346,962 29,553,537 16,110,137 9,780,728 7,547,971 78,566,161 45,913,170 29,242,789 21,172,466 13,313,695 9,538,587 118,355,027 51,193,278 1,233,757 538,324 781,812 263,803 8,135,315 4,704,980 22,210,165 12,424,720 8,043,181 4,327,697 70,070,490 36,726,457 ------------ ----------- ----------- ----------- ------------ ------------ $104,220,133 $64,037,340 $49,766,125 $29,558,906 $346,660,314 $177,610,871 ============ =========== =========== =========== ============ ============ $ 15.52 $ 21.83 $ 12.48 $ 13.74 $ 19.41 $ 15.54 ============ =========== =========== =========== ============ ============ $ 12.48 $ 16.22 $ 12.01 $ 12.70 $ 14.93 $ 12.43 ============ =========== =========== =========== ============ ============ $ 15.31 $ 21.63 $ 12.35 $ 13.52 $ 19.08 $ 15.22 ============ =========== =========== =========== ============ ============ $ 15.72 $ 21.69 $ 12.38 $ 13.61 $ 19.58 $ 15.45 ============ =========== =========== =========== ============ ============ $ 15.16 $ 21.09 $ 12.21 $ 13.35 $ 18.71 $ 15.29 ============ =========== =========== =========== ============ ============ $ 15.28 $ 21.50 $ 12.27 $ 13.42 $ 18.81 $ 15.22 ============ =========== =========== =========== ============ ============ $ 98,955,668 $46,034,104 $53,793,991 $24,470,684 $361,575,019 $186,411,688 ============ =========== =========== =========== ============ ============ FIDELITY(R) VIP MID CAP-- SERVICE CLASS 2 --------------- $219,499,847 -- (179,120) 814,150 56,155 ------------ $218,450,422 ============ $ 72,917,467 3,433,450 49,973,301 54,914,047 2,553,739 34,658,418 ------------ $218,450,422 ============ $ 20.32 ============ $ 18.22 ============ $ 20.09 ============ $ 20.54 ============ $ 19.07 ============ $ 20.32 ============ $193,606,346 ============
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. F-15 STATEMENT OF ASSETS AND LIABILITIES (CONTINUED) As of December 31, 2007
JANUS ASPEN JANUS ASPEN SERIES SERIES WORLDWIDE MFS(R) INVESTORS BALANCED-- GROWTH-- TRUST SERIES-- SERVICE SHARES SERVICE SHARES SERVICE CLASS ---------------------------------------------------- ASSETS: Investments, at net asset value..... $119,236,090 $38,132,733 $8,042,392 Dividends due and accrued........... -- -- -- Net receivable from (payable to) New York Life Insurance and Annuity Corporation...................... 125,135 (164,420) 14,351 LIABILITIES: Liability to New York Life Insurance and Annuity Corporation for: Mortality and expense risk charges........................ 449,583 142,825 29,906 Administrative charges........... 28,311 8,945 1,894 ------------ ----------- ---------- Total net assets............... $118,883,331 $37,816,543 $8,024,943 ============ =========== ========== TOTAL NET ASSETS REPRESENTED BY: Net Assets of Policyowners: Series I Policies................ $ 22,048,547 $ 8,450,144 $1,575,816 Series II Policies............... 2,486,468 871,257 93,897 Series III Policies.............. 32,201,589 10,031,082 2,158,569 Series IV Policies............... 37,641,564 11,312,804 2,582,743 Series V Policies................ 3,807,347 479,926 155,981 Series VI Policies............... 20,697,816 6,671,330 1,457,937 ------------ ----------- ---------- Total net assets............... $118,883,331 $37,816,543 $8,024,943 ============ =========== ========== Series I variable accumulation unit value..................... $ 14.12 $ 15.51 $ 15.14 ============ =========== ========== Series II variable accumulation unit value..................... $ 12.80 $ 13.04 $ 12.89 ============ =========== ========== Series III variable accumulation unit value..................... $ 14.07 $ 15.28 $ 15.12 ============ =========== ========== Series IV variable accumulation unit value..................... $ 14.09 $ 15.37 $ 15.26 ============ =========== ========== Series V variable accumulation unit value..................... $ 13.84 $ 14.95 $ 14.95 ============ =========== ========== Series VI variable accumulation unit value..................... $ 13.91 $ 14.91 $ 14.95 ============ =========== ========== Identified Cost of Investment......... $ 99,783,150 $30,820,009 $6,641,582 ============ =========== ==========
Not all investment divisions are available under all policies. The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. F-16 NYLIAC VARIABLE ANNUITY SEPARATE ACCOUNT-III
NEUBERGER BERMAN AMT VAN KAMPEN MID-CAP UIF EMERGING VICTORY VIF MFS(R) RESEARCH MFS(R) UTILITIES GROWTH T. ROWE PRICE MARKETS DIVERSIFIED SERIES-- SERIES-- PORTFOLIO-- EQUITY INCOME EQUITY-- STOCK-- SERVICE CLASS SERVICE CLASS CLASS S PORTFOLIO--II CLASS II CLASS A SHARES ----------------------------------------------------------------------------------------------------------- $10,635,154 $534,669,397 $35,093,803 $218,880,926 $152,496,644 $25,631,809 -- -- -- -- -- -- 12,665 1,143,046 132,169 70,013 379,191 28,085 39,854 2,008,483 129,115 835,506 616,726 94,135 2,430 125,631 8,086 51,118 36,190 6,956 ----------- ------------ ----------- ------------ ------------ ----------- $10,605,535 $533,678,329 $35,088,771 $218,064,315 $152,222,919 $25,558,803 =========== ============ =========== ============ ============ =========== $ 2,304,785 $170,943,082 $ 9,825,590 $ 34,245,141 $ 28,552,440 $ 7,960,002 168,018 15,026,252 777,210 4,606,977 3,757,522 742,889 2,844,261 124,909,343 8,100,082 47,651,484 37,273,565 4,571,364 2,930,719 110,284,250 8,821,348 75,254,887 46,862,879 7,803,338 135,206 8,805,515 548,001 7,211,613 1,635,470 616,850 2,222,546 103,709,887 7,016,540 49,094,213 34,141,043 3,864,360 ----------- ------------ ----------- ------------ ------------ ----------- $10,605,535 $533,678,329 $35,088,771 $218,064,315 $152,222,919 $25,558,803 =========== ============ =========== ============ ============ =========== $ 16.13 $ 25.89 $ 18.99 $ 15.39 $ 41.09 $ 14.59 =========== ============ =========== ============ ============ =========== $ 12.99 $ 23.13 $ 16.17 $ 12.50 $ 26.25 $ 12.93 =========== ============ =========== ============ ============ =========== $ 15.88 $ 27.07 $ 18.96 $ 15.21 $ 39.25 $ 14.35 =========== ============ =========== ============ ============ =========== $ 15.70 $ 27.34 $ 19.67 $ 15.39 $ 40.83 $ 14.18 =========== ============ =========== ============ ============ =========== $ 15.88 $ 27.01 $ 19.02 $ 15.02 $ 31.08 $ 13.95 =========== ============ =========== ============ ============ =========== $ 16.06 $ 26.86 $ 19.11 $ 15.12 $ 39.16 $ 14.27 =========== ============ =========== ============ ============ =========== $ 8,522,030 $407,530,168 $29,933,070 $208,424,938 $111,221,577 $23,633,428 =========== ============ =========== ============ ============ ===========
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. F-17 STATEMENT OF OPERATIONS For the year ended December 31, 2007
MAINSTAY VP MAINSTAY VP CAPITAL MAINSTAY VP BOND-- APPRECIATION-- CASH INITIAL CLASS INITIAL CLASS MANAGEMENT ---------------------------------------------- INVESTMENT INCOME (LOSS): Dividend income....................... $ 5,695,005 $ 312,780 $ 9,988,320 Mortality and expense risk charges.... (2,152,931) (3,066,640) (2,960,072) Administrative charges................ (187,226) (349,471) (215,086) ------------ ------------ ------------- Net investment income (loss)..... 3,354,848 (3,103,331) 6,813,162 ------------ ------------ ------------- REALIZED AND UNREALIZED GAIN (LOSS): Proceeds from sale of investments..... 31,534,542 61,086,768 150,100,606 Cost of investments sold.............. (30,576,662) (80,872,521) (150,101,959) ------------ ------------ ------------- Net realized gain (loss) on investments................... 957,880 (19,785,753) (1,353) Realized gain distribution received... -- -- -- Change in unrealized appreciation (depreciation) on investments...... 3,446,949 48,630,395 2,420 ------------ ------------ ------------- Net gain (loss) on investments... 4,404,829 28,844,642 1,067 ------------ ------------ ------------- Net increase (decrease) in net assets resulting from operations.................. $ 7,759,677 $ 25,741,311 $ 6,814,229 ============ ============ =============
MAINSTAY VP MAINSTAY VP MAINSTAY VP INTERNATIONAL LARGE CAP MID CAP EQUITY-- GROWTH-- CORE-- INITIAL CLASS INITIAL CLASS INITIAL CLASS ---------------------------------------------- INVESTMENT INCOME (LOSS): Dividend income....................... $ 872,498 $ 13,684 $ 289,759 Mortality and expense risk charges.... (1,815,631) (912,704) (1,039,199) Administrative charges................ (161,025) (92,391) (88,370) ------------ ------------ ------------ Net investment income (loss)..... (1,104,158) (991,411) (837,810) ------------ ------------ ------------ REALIZED AND UNREALIZED GAIN (LOSS): Proceeds from sale of investments..... 29,322,219 16,040,052 14,964,406 Cost of investments sold.............. (16,495,204) (18,159,647) (8,161,144) ------------ ------------ ------------ Net realized gain (loss) on investments................... 12,827,015 (2,119,595) 6,803,262 Realized gain distribution received... 8,094,435 -- 7,039,249 Change in unrealized appreciation (depreciation) on investments...... (15,178,784) 15,628,016 (10,093,508) ------------ ------------ ------------ Net gain (loss) on investments... 5,742,666 13,508,421 3,749,003 ------------ ------------ ------------ Net increase (decrease) in net assets resulting from operations.................. $ 4,638,508 $ 12,517,010 $ 2,911,193 ============ ============ ============
Not all investment divisions are available under all policies. The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. F-18 NYLIAC VARIABLE ANNUITY SEPARATE ACCOUNT-III
MAINSTAY VP MAINSTAY VP MAINSTAY VP HIGH YIELD MAINSTAY VP MAINSTAY VP COMMON MAINSTAY VP DEVELOPING MAINSTAY VP CORPORATE ICAP SELECT INCOME & STOCK-- CONVERTIBLE-- GROWTH-- GOVERNMENT-- BOND-- EQUITY-- GROWTH-- INITIAL CLASS INITIAL CLASS INITIAL CLASS INITIAL CLASS INITIAL CLASS INITIAL CLASS INITIAL CLASS -------------------------------------------------------------------------------------------------------------- $ 2,842,243 $ 3,773,363 $ -- $ 5,369,388 $ 35,538,957 $ 442,886 $ 1,056,385 (3,143,731) (2,278,657) (354,000) (1,552,204) (7,527,069) (982,173) (402,392) (332,112) (215,161) (29,207) (132,874) (724,237) (86,420) (38,057) ------------ ------------ ----------- ------------ ------------- ------------ ------------ (633,600) 1,279,545 (383,207) 3,684,310 27,287,651 (625,707) 615,936 ------------ ------------ ----------- ------------ ------------- ------------ ------------ 56,828,429 35,335,042 7,391,391 29,490,450 141,693,344 15,533,868 51,401,090 (58,962,048) (27,285,173) (4,199,599) (29,943,361) (111,501,707) (10,161,039) (48,020,025) ------------ ------------ ----------- ------------ ------------- ------------ ------------ (2,133,619) 8,049,869 3,191,792 (452,911) 30,191,637 5,372,829 3,381,065 16,922,385 4,225,743 1,196,586 -- -- 2,926,236 6,905,687 (4,318,295) 7,961,017 3,618,652 2,461,372 (51,755,745) (4,212,188) (11,319,906) ------------ ------------ ----------- ------------ ------------- ------------ ------------ 10,470,471 20,236,629 8,007,030 2,008,461 (21,564,108) 4,086,877 (1,033,154) ------------ ------------ ----------- ------------ ------------- ------------ ------------ $ 9,836,871 $ 21,516,174 $ 7,623,823 $ 5,692,771 $ 5,723,543 $ 3,461,170 $ (417,218) ============ ============ =========== ============ ============= ============ ============
MAINSTAY VP MAINSTAY VP MAINSTAY VP MAINSTAY VP ALGER AMERICAN MID CAP MID CAP S&P 500 SMALL CAP MAINSTAY VP MAINSTAY VP SMALL GROWTH-- VALUE-- INDEX-- GROWTH-- TOTAL RETURN-- VALUE-- CAPITALIZATION-- INITIAL CLASS INITIAL CLASS INITIAL CLASS INITIAL CLASS INITIAL CLASS INITIAL CLASS CLASS O SHARES ---------------------------------------------------------------------------------------------------------------- $ -- $ 1,355,950 $ 7,330,194 $ -- $ 3,582,085 $ 3,485,838 $ -- (1,314,000) (1,938,556) (6,330,145) (666,504) (2,163,589) (3,031,845) (1,109,444) (115,956) (159,356) (653,866) (57,643) (234,355) (288,103) (109,886) ------------ ------------ ------------- ----------- ------------ ------------ ------------ (1,429,956) (741,962) 346,183 (724,147) 1,184,141 165,890 (1,219,330) ------------ ------------ ------------- ----------- ------------ ------------ ------------ 22,300,796 31,138,754 116,871,969 13,929,837 38,579,848 48,181,843 24,113,735 (11,661,680) (20,008,209) (102,648,517) (9,103,209) (41,506,856) (35,654,568) (12,475,743) ------------ ------------ ------------- ----------- ------------ ------------ ------------ 10,639,116 11,130,545 14,223,452 4,826,628 (2,927,008) 12,527,275 11,637,992 6,507,338 11,020,661 -- 3,283,659 10,849,255 18,041,384 -- (2,712,535) (23,672,539) 5,483,605 (9,218,529) 1,156,236 (27,751,851) 2,050,624 ------------ ------------ ------------- ----------- ------------ ------------ ------------ 14,433,919 (1,521,333) 19,707,057 (1,108,242) 9,078,483 2,816,808 13,688,616 ------------ ------------ ------------- ----------- ------------ ------------ ------------ $ 13,003,963 $ (2,263,295) $ 20,053,240 $(1,832,389) $ 10,262,624 $ 2,982,698 $ 12,469,286 ============ ============ ============= =========== ============ ============ ============
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. F-19 STATEMENT OF OPERATIONS (CONTINUED) For the year ended December 31, 2007
CVS CALVERT DREYFUS IP SOCIAL TECHNOLOGY FIDELITY(R) VIP BALANCED GROWTH-- CONTRAFUND(R)-- PORTFOLIO INITIAL SHARES INITIAL CLASS ------------------------------------------------ INVESTMENT INCOME (LOSS): Dividend income....................... $ 991,876 $ -- $ 3,659,778 Mortality and expense risk charges.... (592,347) (256,247) (5,355,904) Administrative charges................ (49,525) (21,060) (535,006) ----------- ----------- ------------ Net investment income (loss)..... 350,004 (277,307) (2,231,132) ----------- ----------- ------------ REALIZED AND UNREALIZED GAIN (LOSS): Proceeds from sale of investments..... 8,953,880 5,433,058 86,075,562 Cost of investments sold.............. (8,031,985) (4,611,711) (64,577,695) ----------- ----------- ------------ Net realized gain (loss) on investments................... 921,895 821,347 21,497,867 Realized gain distribution received... 2,269,857 -- 97,874,832 Change in unrealized appreciation (depreciation) on investments...... (2,949,843) 1,747,372 (56,246,641) ----------- ----------- ------------ Net gain (loss) on investments .. 241,909 2,568,719 63,126,058 ----------- ----------- ------------ Net increase (decrease) in net assets resulting from operations.................. $ 591,913 $ 2,291,412 $ 60,894,926 =========== =========== ============
ROYCE MICRO-CAP ROYCE PORTFOLIO-- SMALL-CAP T. ROWE PRICE INVESTMENT PORTFOLIO-- EQUITY INCOME CLASS INVESTMENT CLASS PORTFOLIO ------------------------------------------------ INVESTMENT INCOME (LOSS): Dividend income....................... $ 931,183 $ 22,408 $ 3,671,882 Mortality and expense risk charges.... (826,259) (577,355) (2,935,875) Administrative charges................ (59,693) (40,441) (246,690) ----------- ----------- ------------ Net investment income (loss)..... 45,231 (595,388) 489,317 ----------- ----------- ------------ REALIZED AND UNREALIZED GAIN (LOSS): Proceeds from sale of investments..... 9,678,799 5,626,875 46,947,807 Cost of investments sold.............. (8,655,259) (4,932,606) (33,477,897) ----------- ----------- ------------ Net realized gain (loss) on investments................... 1,023,540 694,269 13,469,910 Realized gain distribution received... 5,306,113 1,949,472 12,037,356 Change in unrealized appreciation (depreciation) on investments...... (5,617,112) (4,132,349) (21,001,658) ----------- ----------- ------------ Net gain (loss) on investments .. 712,541 (1,488,608) 4,505,608 ----------- ----------- ------------ Net increase (decrease) in net assets resulting from operations.................. $ 757,772 $(2,083,996) $ 4,994,925 =========== =========== ============
Not all investment divisions are available under all policies. The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. F-20 NYLIAC VARIABLE ANNUITY SEPARATE ACCOUNT-III
JANUS ASPEN NEUBERGER JANUS ASPEN SERIES BERMAN AMT FIDELITY(R) VIP SERIES WORLDWIDE MID-CAP EQUITY- BALANCED-- GROWTH-- MFS(R) INVESTORS MFS(R) RESEARCH MFS(R) UTILITIES GROWTH INCOME-- INSTITUTIONAL INSTITUTIONAL TRUST SERIES-- SERIES-- SERIES-- PORTFOLIO-- INITIAL CLASS SHARES SHARES INITIAL CLASS INITIAL CLASS INITIAL CLASS CLASS I ---------------------------------------------------------------------------------------------------------------------- $ 3,721,601 $ 10,683,117 $ 1,384,574 $ 215,060 $ 214,752 $ 58,482 $ -- (2,922,757) (5,618,481) (2,410,164) (331,410) (389,136) (90,074) (104,696) (275,791) (582,002) (272,035) (29,970) (37,595) (3,986) (6,141) ------------ ------------ ------------ ----------- ----------- ----------- ---------- 523,053 4,482,634 (1,297,625) (146,320) (211,979) (35,578) (110,837) ------------ ------------ ------------ ----------- ----------- ----------- ---------- 48,385,480 107,917,921 45,592,482 6,748,245 10,075,268 2,060,261 1,678,645 (41,395,349) (92,113,498) (58,744,965) (5,455,890) (8,243,805) (1,237,615) (953,316) ------------ ------------ ------------ ----------- ----------- ----------- ---------- 6,990,131 15,804,423 (13,152,483) 1,292,355 1,831,463 822,646 725,329 16,407,638 -- -- 218,127 -- 423,905 -- (22,341,685) 17,604,452 30,235,137 785,622 1,742,753 188,850 778,608 ------------ ------------ ------------ ----------- ----------- ----------- ---------- 1,056,084 33,408,875 17,082,654 2,296,104 3,574,216 1,435,401 1,503,937 ------------ ------------ ------------ ----------- ----------- ----------- ---------- $ 1,579,137 $ 37,891,509 $ 15,785,029 $ 2,149,784 $ 3,362,237 $ 1,399,823 $1,393,100 ============ ============ ============ =========== =========== =========== ==========
VAN KAMPEN UIF EMERGING VAN ECK MARKETS WORLDWIDE EQUITY-- HARD ASSETS CLASS I ------------------------------ $ 371,973 $ 498,814 (4,924,285) (1,493,235) (315,487) (139,796) ------------ ------------ (4,867,799) (1,134,217) ------------ ------------ 50,882,933 34,336,547 (25,693,833) (13,490,843) ------------ ------------ 25,189,100 20,845,704 36,287,961 12,725,817 66,381,268 4,001,788 ------------ ------------ 127,858,329 37,573,309 ------------ ------------ $122,990,530 $ 36,439,092 ============ ============
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. F-21 STATEMENT OF OPERATIONS (CONTINUED) For the year ended December 31, 2007
MAINSTAY VP MAINSTAY VP MAINSTAY VP CAPITAL BALANCED-- BOND-- APPRECIATION-- SERVICE CLASS SERVICE CLASS SERVICE CLASS ---------------------------------------------- INVESTMENT INCOME (LOSS): Dividend income....................... $ 2,769,502 $ 3,534,140 $ -- Mortality and expense risk charges.... (1,963,365) (1,351,677) (786,181) Administrative charges................ (124,240) (79,679) (42,931) ------------ ------------ ----------- Net investment income (loss)..... 681,897 2,102,784 (829,112) ------------ ------------ ----------- REALIZED AND UNREALIZED GAIN (LOSS): Proceeds from sale of investments..... 21,882,458 11,342,979 10,446,079 Cost of investments sold.............. (19,663,057) (11,285,499) (8,179,479) ------------ ------------ ----------- Net realized gain (loss) on investments................... 2,219,401 57,480 2,266,600 Realized gain distribution received... 4,998,801 -- -- Change in unrealized appreciation (depreciation) on investments..................... (6,830,873) 2,273,517 3,852,545 ------------ ------------ ----------- Net gain (loss) on investments... 387,329 2,330,997 6,119,145 ------------ ------------ ----------- Net increase (decrease) in net assets resulting from operations............. $ 1,069,226 $ 4,433,781 $ 5,290,033 ============ ============ ===========
MAINSTAY VP HIGH YIELD MAINSTAY VP MAINSTAY VP CORPORATE ICAP SELECT INCOME & BOND-- EQUITY-- GROWTH-- SERVICE CLASS SERVICE CLASS SERVICE CLASS ---------------------------------------------- INVESTMENT INCOME (LOSS): Dividend income....................... $ 30,727,910 $ 395,089 $ 807,775 Mortality and expense risk charges.... (6,775,492) (1,000,529) (337,001) Administrative charges................ (375,382) (56,478) (17,793) ------------ ----------- ------------ Net investment income (loss)..... 23,577,036 (661,918) 452,981 ------------ ----------- ------------ REALIZED AND UNREALIZED GAIN (LOSS): Proceeds from sale of investments..... 36,350,206 6,671,994 38,080,698 Cost of investments sold.............. (33,547,147) (4,811,395) (39,433,307) ------------ ----------- ------------ Net realized gain (loss) on investments................... 2,803,059 1,860,599 (1,352,609) Realized gain distribution received... -- 2,986,540 5,630,271 Change in unrealized appreciation (depreciation) on investments..................... (24,971,643) (2,494,700) (5,449,890) ------------ ----------- ------------ Net gain (loss) on investments... (22,168,584) 2,352,439 (1,172,228) ------------ ----------- ------------ Net increase (decrease) in net assets resulting from operations............. $ 1,408,452 $ 1,690,521 $ (719,247) ============ =========== ============
Not all investment divisions are available under all policies. The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. F-22 NYLIAC VARIABLE ANNUITY SEPARATE ACCOUNT-III
MAINSTAY VP MAINSTAY VP MAINSTAY VP MAINSTAY VP MAINSTAY VP COMMON CONSERVATIVE MAINSTAY VP DEVELOPING FLOATING MAINSTAY VP GROWTH STOCK-- ALLOCATION-- CONVERTIBLE-- GROWTH-- RATE-- GOVERNMENT-- ALLOCATION-- SERVICE CLASS SERVICE CLASS SERVICE CLASS SERVICE CLASS SERVICE CLASS SERVICE CLASS SERVICE CLASS -------------------------------------------------------------------------------------------------------------- $ 670,494 $ 2,867,624 $ 2,396,070 $ -- $ 12,690,900 $ 3,042,481 $ 773,234 (866,875) (1,141,770) (1,605,699) (445,636) (2,913,889) (888,932) (902,003) (51,983) (67,471) (91,879) (25,725) (170,390) (53,607) (69,304) ----------- ------------ ----------- ----------- ------------ ----------- ----------- (248,364) 1,658,383 698,492 (471,361) 9,606,621 2,099,942 (198,073) ----------- ------------ ----------- ----------- ------------ ----------- ----------- 5,893,596 11,383,004 9,115,245 4,927,433 76,046,424 7,954,340 7,690,951 (4,368,691) (10,284,400) (7,265,095) (3,235,070) (77,574,411) (7,910,489) (6,668,238) ----------- ------------ ----------- ----------- ------------ ----------- ----------- 1,524,905 1,098,604 1,850,150 1,692,363 (1,527,987) 43,851 1,022,713 4,614,771 1,728,450 2,927,352 1,538,429 -- -- 3,035,682 (4,200,609) (487,565) 7,428,248 5,694,295 (7,187,025) 847,402 482,824 ----------- ------------ ----------- ----------- ------------ ----------- ----------- 1,939,067 2,339,489 12,205,750 8,925,087 (8,715,012) 891,253 4,541,219 ----------- ------------ ----------- ----------- ------------ ----------- ----------- $ 1,690,703 $ 3,997,872 $12,904,242 $ 8,453,726 $ 891,609 $ 2,991,195 $ 4,343,146 =========== ============ =========== =========== ============ =========== ===========
MAINSTAY VP MAINSTAY VP MAINSTAY VP MAINSTAY VP MAINSTAY VP MAINSTAY VP MAINSTAY VP MODERATE INTERNATIONAL LARGE CAP MID CAP MID CAP MID CAP MODERATE GROWTH EQUITY-- GROWTH-- CORE-- GROWTH-- VALUE-- ALLOCATION-- ALLOCATION-- SERVICE CLASS SERVICE CLASS SERVICE CLASS SERVICE CLASS SERVICE CLASS SERVICE CLASS SERVICE CLASS -------------------------------------------------------------------------------------------------------------- $ 1,106,838 $ -- $ 272,041 $ -- $ 1,351,346 $ 3,635,728 $ 3,156,977 (2,832,089) (566,567) (1,692,404) (2,103,002) (2,415,225) (1,986,781) (2,216,416) (158,372) (31,445) (95,047) (121,507) (138,119) (131,540) (147,372) ------------ ----------- ------------ ------------ ------------ ------------ ----------- (1,883,623) (598,012) (1,515,410) (2,224,509) (1,201,998) 1,517,407 793,189 ------------ ----------- ------------ ------------ ------------ ------------ ----------- 19,107,852 5,209,811 14,410,448 16,576,102 17,288,706 14,259,020 11,090,475 (12,408,480) (4,318,733) (10,547,516) (10,586,512) (13,054,348) (12,714,494) (9,698,301) ------------ ----------- ------------ ------------ ------------ ------------ ----------- 6,699,372 891,078 3,862,932 5,989,590 4,234,358 1,544,526 1,392,174 12,652,070 -- 11,405,849 10,141,291 13,664,107 3,721,777 5,980,435 (12,872,632) 6,334,725 (11,167,817) 3,383,701 (21,653,089) 1,445,952 1,480,004 ------------ ----------- ------------ ------------ ------------ ------------ ----------- 6,478,810 7,225,803 4,100,964 19,514,582 (3,754,624) 6,712,255 8,852,613 ------------ ----------- ------------ ------------ ------------ ------------ ----------- $ 4,595,187 $ 6,627,791 $ 2,585,554 $ 17,290,073 $ (4,956,622) $ 8,229,662 $ 9,645,802 ============ =========== ============ ============ ============ ============ ===========
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. F-23 STATEMENT OF OPERATIONS (CONTINUED) For the year ended December 31, 2007
MAINSTAY VP MAINSTAY VP S&P 500 SMALL CAP MAINSTAY VP INDEX-- GROWTH-- TOTAL RETURN-- SERVICE CLASS SERVICE CLASS SERVICE CLASS ---------------------------------------------- INVESTMENT INCOME (LOSS): Dividend income....................... $ 3,360,212 $ -- $ 974,110 Mortality and expense risk charges.... (3,435,703) (1,021,388) (709,857) Administrative charges................ (207,289) (64,818) (38,006) ------------ ----------- ----------- Net investment income (loss)..... (282,780) (1,086,206) 226,247 ------------ ----------- ----------- REALIZED AND UNREALIZED GAIN (LOSS): Proceeds from sale of investments..... 24,503,449 9,719,839 7,044,938 Cost of investments sold.............. (17,847,310) (8,258,798) (5,825,033) ------------ ----------- ----------- Net realized gain (loss) on investments................... 6,656,139 1,461,041 1,219,905 Realized gain distribution received... -- 5,066,617 3,274,857 Change in unrealized appreciation (depreciation) on investments...... 1,322,101 (8,767,104) (2,065,516) ------------ ----------- ----------- Net gain (loss) on investments... 7,978,240 (2,239,446) 2,429,246 ------------ ----------- ----------- Net increase (decrease) in net assets resulting from operations.................. $ 7,695,460 $(3,325,652) $ 2,655,493 ============ =========== ===========
JANUS ASPEN JANUS ASPEN SERIES MFS(R) SERIES WORLDWIDE INVESTORS BALANCED-- GROWTH-- TRUST SERIES-- SERVICE SHARES SERVICE SHARES SERVICE CLASS ---------------------------------------------- INVESTMENT INCOME (LOSS): Dividend income....................... $ 2,581,890 $ 208,837 $ 42,105 Mortality and expense risk charges.... (1,610,200) (519,734) (108,183) Administrative charges................ (100,421) (33,237) (6,870) ----------- ----------- --------- Net investment income (loss)..... 871,269 (344,134) (72,948) ----------- ----------- --------- REALIZED AND UNREALIZED GAIN (LOSS): Proceeds from sale of investments..... 9,791,800 4,546,267 805,058 Cost of investments sold.............. (7,622,709) (3,340,813) (619,871) ----------- ----------- --------- Net realized gain (loss) on investments................... 2,169,091 1,205,454 185,187 Realized gain distribution received... -- -- 61,124 Change in unrealized appreciation (depreciation) on investments...... 5,959,978 1,495,676 412,305 ----------- ----------- --------- Net gain (loss) on investments... 8,129,069 2,701,130 658,616 ----------- ----------- --------- Net increase (decrease) in net assets resulting from operations.................. $ 9,000,338 $ 2,356,996 $ 585,668 =========== =========== =========
Not all investment divisions are available under all policies. The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. F-24 NYLIAC VARIABLE ANNUITY SEPARATE ACCOUNT-III
FIDELITY(R) FIDELITY(R) ALGER AMERICAN COLUMBIA SMALL VIP VIP FIDELITY(R) SMALL CAP VALUE DREYFUS IP CONTRA- EQUITY- VIP MAINSTAY VP CAPITALIZA- FUND, VARIABLE TECHNOLOGY FUND(R)-- INCOME-- MID CAP-- VALUE-- TION-- SERIES-- GROWTH-- SERVICE CLASS SERVICE CLASS SERVICE CLASS SERVICE CLASS CLASS S SHARES CLASS B SERVICE SHARES 2 2 2 -------------------------------------------------------------------------------------------------------------- $ 1,563,323 $ -- $ 141,998 $ -- $ 2,450,870 $ 2,981,319 $ 1,038,209 (1,587,873) (926,082) (768,270) (389,598) (4,479,995) (2,580,143) (2,997,941) (85,653) (57,669) (50,813) (27,033) (281,979) (151,671) (206,220) ------------ ----------- ------------ ----------- ------------ ------------ ------------ (110,203) (983,751) (677,085) (416,631) (2,311,104) 249,505 (2,165,952) ------------ ----------- ------------ ----------- ------------ ------------ ------------ 12,072,579 9,009,637 12,098,631 4,424,100 17,655,832 13,362,936 29,823,446 (8,862,217) (5,289,922) (10,320,128) (3,856,912) (11,894,179) (11,195,973) (22,582,694) ------------ ----------- ------------ ----------- ------------ ------------ ------------ 3,210,362 3,719,715 1,778,503 567,188 5,761,653 2,166,963 7,240,752 9,080,567 -- 5,731,242 -- 83,709,146 15,039,457 18,545,789 (12,013,541) 6,084,778 (8,986,242) 3,037,210 (43,118,863) (18,940,056) 2,566,118 ------------ ----------- ------------ ----------- ------------ ------------ ------------ 277,388 9,804,493 (1,476,497) 3,604,398 46,351,936 (1,733,636) 28,352,659 ------------ ----------- ------------ ----------- ------------ ------------ ------------ $ 167,185 $ 8,820,742 $ (2,153,582) $ 3,187,767 $ 44,040,832 $ (1,484,131) $ 26,186,707 ============ =========== ============ =========== ============ ============ ============
NEUBERGER BERMAN AMT VAN KAMPEN MFS(R) MFS(R) MID-CAP UIF EMERGING VICTORY VIF RESEARCH UTILITIES GROWTH T. ROWE PRICE MARKETS DIVERSIFIED SERIES-- SERIES-- PORTFOLIO-- EQUITY INCOME EQUITY-- STOCK-- SERVICE CLASS SERVICE CLASS CLASS S PORTFOLIO--II CLASS II CLASS A SHARES ---------------------------------------------------------------------------------------------- $ 46,712 $ 3,258,484 $ -- $ 3,262,361 $ 480,835 $ 158,931 (142,607) (6,287,232) (396,685) (3,180,119) (1,717,693) (347,102) (8,781) (397,870) (25,920) (191,638) (99,899) (25,853) ----------- ------------ ----------- ------------ ----------- ----------- (104,676) (3,426,618) (422,605) (109,396) (1,336,757) (214,024) ----------- ------------ ----------- ------------ ----------- ----------- 1,558,569 27,601,215 7,590,302 17,410,855 19,973,013 4,872,502 (1,108,341) (17,476,751) (5,383,165) (13,694,098) (9,928,383) (3,914,093) ----------- ------------ ----------- ------------ ----------- ----------- 450,228 10,124,464 2,207,137 3,716,757 10,044,630 958,409 -- 27,977,178 -- 13,036,401 13,028,309 1,946,548 666,882 59,027,569 2,555,112 (14,371,305) 15,982,610 (780,172) ----------- ------------ ----------- ------------ ----------- ----------- 1,117,110 97,129,211 4,762,249 2,381,853 39,055,549 2,124,785 ----------- ------------ ----------- ------------ ----------- ----------- $ 1,012,434 $ 93,702,593 $ 4,339,644 $ 2,272,457 $37,718,792 $ 1,910,761 =========== ============ =========== ============ =========== ===========
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. F-25 STATEMENT OF CHANGES IN NET ASSETS For the years ended December 31, 2007 and December 31, 2006
MAINSTAY VP MAINSTAY VP CAPITAL BOND-- APPRECIATION-- INITIAL CLASS INITIAL CLASS ---------------------------------- --------------- 2007 2006 2007 ----------------------------------------------------- INCREASE (DECREASE) IN NET ASSETS: Operations: Net investment income (loss)........................... $ 3,354,848 $ (682,652) $ (3,103,331) Net realized gain (loss) on investments................ 957,880 (1,365,211) (19,785,753) Realized gain distribution received.................... -- -- -- Change in unrealized appreciation (depreciation) on investments.......................................... 3,446,949 7,102,741 48,630,395 ------------ ------------ ------------ Net increase (decrease) in net assets resulting from operations........................................ 7,759,677 5,054,878 25,741,311 ------------ ------------ ------------ Contributions and (Withdrawals): Payments received from policyowners.................... 1,905,822 2,166,558 3,179,339 Policyowners' surrenders............................... (22,870,453) (24,507,994) (36,251,455) Policyowners' annuity and death benefits............... (2,067,520) (2,531,388) (2,605,248) Net transfers from (to) Fixed Account.................. 379,568 (531,709) (188,681) Transfers between Investment Divisions................. 1,810,585 (14,980,138) (19,411,814) ------------ ------------ ------------ Net contributions and (withdrawals).................. (20,841,998) (40,384,671) (55,277,859) ------------ ------------ ------------ Increase (decrease) attributable to New York Life Insurance and Annuity Corporation charges retained by the Separate Account................................. (27,990) (21,569) (109,863) ------------ ------------ ------------ Increase (decrease) in net assets................. (13,110,311) (35,351,362) (29,646,411) NET ASSETS: Beginning of year...................................... 169,726,422 205,077,784 251,763,481 ------------ ------------ ------------ End of year............................................ $156,616,111 $169,726,422 $222,117,070 ============ ============ ============ MAINSTAY VP CAPITAL APPRECIATION-- INITIAL CLASS --------------- 2006 --------------- INCREASE (DECREASE) IN NET ASSETS: Operations: Net investment income (loss)........................... $ (3,015,987) Net realized gain (loss) on investments................ (32,659,654) Realized gain distribution received.................... -- Change in unrealized appreciation (depreciation) on investments.......................................... 43,382,590 ------------ Net increase (decrease) in net assets resulting from operations........................................ 7,706,949 ------------ Contributions and (Withdrawals): Payments received from policyowners.................... 3,825,120 Policyowners' surrenders............................... (40,922,531) Policyowners' annuity and death benefits............... (2,758,667) Net transfers from (to) Fixed Account.................. (1,149,523) Transfers between Investment Divisions................. (27,100,213) ------------ Net contributions and (withdrawals).................. (68,105,814) ------------ Increase (decrease) attributable to New York Life Insurance and Annuity Corporation charges retained by the Separate Account................................. (69,567) ------------ Increase (decrease) in net assets................. (60,468,432) NET ASSETS: Beginning of year...................................... 312,231,913 ------------ End of year............................................ $251,763,481 ============
MAINSTAY VP DEVELOPING MAINSTAY VP GROWTH-- GOVERNMENT-- INITIAL CLASS INITIAL CLASS ---------------------------------- --------------- 2007 2006 2007 ----------------------------------------------------- INCREASE (DECREASE) IN NET ASSETS: Operations: Net investment income (loss)........................... $ (383,207) $ (354,988) $ 3,684,310 Net realized gain (loss) on investments................ 3,191,792 2,239,002 (452,911) Realized gain distribution received.................... 1,196,586 -- -- Change in unrealized appreciation (depreciation) on investments.......................................... 3,618,652 222,817 2,461,372 ----------- ----------- ------------ Net increase (decrease) in net assets resulting from operations........................................ 7,623,823 2,106,831 5,692,771 ----------- ----------- ------------ Contributions and (Withdrawals): Payments received from policyowners.................... 259,140 380,617 1,299,617 Policyowners' surrenders............................... (3,533,676) (2,925,439) (17,259,683) Policyowners' annuity and death benefits............... (246,225) (237,966) (1,742,940) Net transfers from (to) Fixed Account.................. 153,811 263,318 165,607 Transfers between Investment Divisions................. 2,852,636 384,823 (3,157,559) ----------- ----------- ------------ Net contributions and (withdrawals).................. (514,314) (2,134,647) (20,694,958) ----------- ----------- ------------ Increase (decrease) attributable to New York Life Insurance and Annuity Corporation charges retained by the Separate Account................................. (26,671) (14,130) (19,966) ----------- ----------- ------------ Increase (decrease) in net assets................. 7,082,838 (41,946) (15,022,153) NET ASSETS: Beginning of year...................................... 22,650,519 22,692,465 125,435,971 ----------- ----------- ------------ End of year............................................ $29,733,357 $22,650,519 $110,413,818 =========== =========== ============ MAINSTAY VP GOVERNMENT-- INITIAL CLASS --------------- 2006 --------------- INCREASE (DECREASE) IN NET ASSETS: Operations: Net investment income (loss)........................... $ (715,450) Net realized gain (loss) on investments................ (2,181,312) Realized gain distribution received.................... -- Change in unrealized appreciation (depreciation) on investments.......................................... 6,084,361 ------------ Net increase (decrease) in net assets resulting from operations........................................ 3,187,599 ------------ Contributions and (Withdrawals): Payments received from policyowners.................... 2,082,774 Policyowners' surrenders............................... (20,452,185) Policyowners' annuity and death benefits............... (2,139,630) Net transfers from (to) Fixed Account.................. (591,559) Transfers between Investment Divisions................. (13,147,581) ------------ Net contributions and (withdrawals).................. (34,248,181) ------------ Increase (decrease) attributable to New York Life Insurance and Annuity Corporation charges retained by the Separate Account................................. (14,612) ------------ Increase (decrease) in net assets................. (31,075,194) NET ASSETS: Beginning of year...................................... 156,511,165 ------------ End of year............................................ $125,435,971 ============
Not all investment divisions are available under all policies. The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. F-26 NYLIAC VARIABLE ANNUITY SEPARATE ACCOUNT-III
MAINSTAY VP MAINSTAY VP COMMON MAINSTAY VP CASH STOCK-- CONVERTIBLE-- MANAGEMENT INITIAL CLASS INITIAL CLASS ------------------------------- ------------------------------- ------------------------------- 2007 2006 2007 2006 2007 2006 ----------------------------------------------------------------------------------------------- $ 6,813,162 $ 5,564,334 $ (633,600) $ (2,336,613) $ 1,279,545 $ 1,502,491 (1,353) 1,044 (2,133,619) (9,934,908) 8,049,869 2,539,336 -- -- 16,922,385 5,619,463 4,225,743 -- 2,420 (6,356) (4,318,295) 42,949,647 7,961,017 11,573,635 ------------ ------------ ------------ ------------ ------------ ------------ 6,814,229 5,559,022 9,836,871 36,297,589 21,516,174 15,615,462 ------------ ------------ ------------ ------------ ------------ ------------ 59,310,387 56,290,986 2,458,098 3,083,366 2,356,062 2,235,570 (67,491,054) (51,067,960) (37,669,057) (34,862,812) (25,743,903) (21,401,208) (1,779,276) (3,192,541) (2,042,339) (2,871,502) (1,816,159) (2,302,295) 6,422,712 2,262,779 231,300 (559,026) 454,449 5,101 94,435,897 (3,577,870) (13,512,758) (16,923,955) (3,976,674) (9,806,519) ------------ ------------ ------------ ------------ ------------ ------------ 90,898,666 715,394 (50,534,756) (52,133,929) (28,726,225) (31,269,351) ------------ ------------ ------------ ------------ ------------ ------------ (28,556) (23,952) (40,397) (156,293) (84,382) (82,988) ------------ ------------ ------------ ------------ ------------ ------------ 97,684,339 6,250,464 (40,738,282) (15,992,633) (7,294,433) (15,736,877) 184,390,355 178,139,891 259,055,424 275,048,057 176,011,025 191,747,902 ------------ ------------ ------------ ------------ ------------ ------------ $282,074,694 $184,390,355 $218,317,142 $259,055,424 $168,716,592 $176,011,025 ============ ============ ============ ============ ============ ============
MAINSTAY VP HIGH YIELD MAINSTAY VP MAINSTAY VP CORPORATE ICAP SELECT INCOME & BOND-- EQUITY-- GROWTH-- INITIAL CLASS INITIAL CLASS INITIAL CLASS ------------------------------- ---------------------------- ------------------------------- 2007 2006 2007 2006 2007 2006 -------------------------------------------------------------------------------------------- $ 27,287,651 $ 2,501,914 $ (625,707) $ (582,622) $ 615,936 $ (439,760) 30,191,637 18,400,196 5,372,829 1,485,053 3,381,065 946,670 -- -- 2,926,236 247,412 6,905,687 619,433 (51,755,745) 41,272,637 (4,212,188) 6,941,743 (11,319,906) 5,999,043 ------------- ------------- ------------ ----------- ------------ ------------ 5,723,543 62,174,747 3,461,170 8,091,586 (417,218) 7,125,386 ------------- ------------- ------------ ----------- ------------ ------------ 6,228,412 7,629,262 1,308,108 440,015 484,999 663,555 (86,625,517) (91,830,310) (12,558,766) (5,721,299) (4,776,924) (7,822,856) (8,390,774) (9,843,350) (752,950) (311,173) (463,496) (604,847) 223,583 (2,889,893) 1,168,237 308,783 60,131 (38,762) (26,263,872) (26,584,980) 48,746,760 2,037,204 (44,723,918) (3,066,111) ------------- ------------- ------------ ----------- ------------ ------------ (114,828,168) (123,519,271) 37,911,389 (3,246,470) (49,419,208) (10,869,021) ------------- ------------- ------------ ----------- ------------ ------------ (15,489) (194,282) (10,853) (34,781) 1,147 (33,609) ------------- ------------- ------------ ----------- ------------ ------------ (109,120,114) (61,538,806) 41,361,706 4,810,335 (49,835,279) (3,777,244) 617,779,957 679,318,763 53,690,899 48,880,564 49,835,279 53,612,523 ------------- ------------- ------------ ----------- ------------ ------------ $ 508,659,843 $ 617,779,957 $ 95,052,605 $53,690,899 $ -- $ 49,835,279 ============= ============= ============ =========== ============ ============
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. F-27 STATEMENT OF CHANGES IN NET ASSETS (CONTINUED) For the years ended December 31, 2007 and December 31, 2006
MAINSTAY VP MAINSTAY VP INTERNATIONAL LARGE CAP EQUITY-- GROWTH-- INITIAL CLASS INITIAL CLASS ---------------------------------- --------------- 2007 2006 2007 ----------------------------------------------------- INCREASE (DECREASE) IN NET ASSETS: Operations: Net investment income (loss)........................... $ (1,104,158) $ (1,221,490) $ (991,411) Net realized gain (loss) on investments................ 12,827,015 5,158,358 (2,119,595) Realized gain distribution received.................... 8,094,435 1,219,221 -- Change in unrealized appreciation (depreciation) on investments.......................................... (15,178,784) 23,073,278 15,628,016 ------------ ------------ ------------ Net increase (decrease) in net assets resulting from operations........................................ 4,638,508 28,229,367 12,517,010 ------------ ------------ ------------ Contributions and (Withdrawals): Payments received from policyowners.................... 2,570,610 2,122,143 792,349 Policyowners' surrenders............................... (20,363,460) (14,172,432) (12,061,175) Policyowners' annuity and death benefits............... (602,861) (638,956) (443,052) Net transfers from (to) Fixed Account.................. 1,558,451 2,835,081 249,606 Transfers between Investment Divisions................. 3,740,693 21,957,951 1,474,619 ------------ ------------ ------------ Net contributions and (withdrawals).................. (13,096,567) 12,103,787 (9,987,653) ------------ ------------ ------------ Increase (decrease) attributable to New York Life Insurance and Annuity Corporation charges retained by the Separate Account................................. (18,275) (103,659) (45,279) ------------ ------------ ------------ Increase (decrease) in net assets................. (8,476,334) 40,229,495 2,484,078 NET ASSETS: Beginning of year...................................... 132,693,828 92,464,333 70,577,553 ------------ ------------ ------------ End of year............................................ $124,217,494 $132,693,828 $ 73,061,631 ============ ============ ============ MAINSTAY VP LARGE CAP GROWTH-- INITIAL CLASS --------------- 2006 --------------- INCREASE (DECREASE) IN NET ASSETS: Operations: Net investment income (loss)........................... $ (973,088) Net realized gain (loss) on investments................ (6,315,781) Realized gain distribution received.................... -- Change in unrealized appreciation (depreciation) on investments.......................................... 11,268,863 ------------ Net increase (decrease) in net assets resulting from operations........................................ 3,979,994 ------------ Contributions and (Withdrawals): Payments received from policyowners.................... 1,067,417 Policyowners' surrenders............................... (9,375,091) Policyowners' annuity and death benefits............... (823,169) Net transfers from (to) Fixed Account.................. 131,430 Transfers between Investment Divisions................. (2,495,014) ------------ Net contributions and (withdrawals).................. (11,494,427) ------------ Increase (decrease) attributable to New York Life Insurance and Annuity Corporation charges retained by the Separate Account................................. (25,770) ------------ Increase (decrease) in net assets................. (7,540,203) NET ASSETS: Beginning of year...................................... 78,117,756 ------------ End of year............................................ $ 70,577,553 ============
MAINSTAY VP SMALL CAP MAINSTAY VP GROWTH-- TOTAL RETURN-- INITIAL CLASS INITIAL CLASS ------------------------------- ------------------------------- 2007 2006 2007 2006 ------------------------------------------------------------------ INCREASE (DECREASE) IN NET ASSETS: Operations: Net investment income (loss)........................... $ (724,147) $ (885,145) $ 1,184,141 $ (1,599,828) Net realized gain (loss) on investments................ 4,826,628 5,010,907 (2,927,008) (4,420,293) Realized gain distribution received.................... 3,283,659 470 10,849,255 2,313,894 Change in unrealized appreciation (depreciation) on investments.......................................... (9,218,529) (1,281,993) 1,156,236 18,097,855 ------------ ------------ ------------ ------------ Net increase (decrease) in net assets resulting from operations........................................ (1,832,389) 2,844,239 10,262,624 14,391,628 ------------ ------------ ------------ ------------ Contributions and (Withdrawals): Payments received from policyowners.................... 574,065 805,777 1,831,773 1,856,258 Policyowners' surrenders............................... (6,377,037) (5,585,275) (25,115,171) (27,502,397) Policyowners' annuity and death benefits............... (119,599) (312,181) (2,658,103) (2,870,245) Net transfers from (to) Fixed Account.................. 93,718 351,179 (647,272) (1,072,389) Transfers between Investment Divisions................. (6,259,841) (5,385,730) (8,235,809) (10,449,194) ------------ ------------ ------------ ------------ Net contributions and (withdrawals).................. (12,088,694) (10,126,230) (34,824,582) (40,037,967) ------------ ------------ ------------ ------------ Increase (decrease) attributable to New York Life Insurance and Annuity Corporation charges retained by the Separate Account................................. 8,359 (25,682) (40,692) (67,627) ------------ ------------ ------------ ------------ Increase (decrease) in net assets................. (13,912,724) (7,307,673) (24,602,650) (25,713,966) NET ASSETS: Beginning of year...................................... 55,427,011 62,734,684 179,199,366 204,913,332 ------------ ------------ ------------ ------------ End of year............................................ $ 41,514,287 $ 55,427,011 $154,596,716 $179,199,366 ============ ============ ============ ============
Not all investment divisions are available under all policies. The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. F-28 NYLIAC VARIABLE ANNUITY SEPARATE ACCOUNT-III
MAINSTAY VP MAINSTAY VP MAINSTAY VP MAINSTAY VP MID CAP MID CAP MID CAP S&P 500 CORE-- GROWTH-- VALUE-- INDEX-- INITIAL CLASS INITIAL CLASS INITIAL CLASS INITIAL CLASS ------------------------------- ------------------------------- ------------------------------- --------------- 2007 2006 2007 2006 2007 2006 2007 --------------------------------------------------------------------------------------------------------------- $ (837,810) $(1,115,950) $ (1,429,956) $ (1,537,097) $ (741,962) $ (2,058,300) $ 346,183 6,803,262 6,018,792 10,639,116 11,519,916 11,130,545 7,400,093 14,223,452 7,039,249 462,342 6,507,338 1,704,195 11,020,661 1,872,551 -- (10,093,508) 4,056,097 (2,712,535) (4,530,302) (23,672,539) 10,392,341 5,483,605 ------------ ----------- ------------ ------------ ------------ ------------ ------------- 2,911,193 9,421,281 13,003,963 7,156,712 (2,263,295) 17,606,685 20,053,240 ------------ ----------- ------------ ------------ ------------ ------------ ------------- 1,106,739 1,451,082 1,272,696 2,106,219 1,942,120 2,250,550 5,364,839 (9,010,591) (7,239,832) (11,327,203) (9,301,396) (18,409,888) (13,530,262) (76,144,020) (277,886) (400,234) (489,274) (361,105) (974,084) (1,152,722) (6,565,729) 193,767 237,021 142,419 756,785 236,406 182,145 (239,194) (1,474,010) (2,404,775) (4,946,550) (7,455,869) (7,337,829) (11,591,327) (27,166,915) ------------ ----------- ------------ ------------ ------------ ------------ ------------- (9,461,981) (8,356,738) (15,347,912) (14,255,366) (24,543,275) (23,841,616) (104,751,019) ------------ ----------- ------------ ------------ ------------ ------------ ------------- (10,151) (43,435) (49,754) (55,176) 3,913 (74,034) (84,582) ------------ ----------- ------------ ------------ ------------ ------------ ------------- (6,560,939) 1,021,108 (2,393,703) (7,153,830) (26,802,657) (6,308,965) (84,782,361) 76,077,927 75,056,819 96,437,824 103,591,654 147,891,038 154,200,003 520,423,293 ------------ ----------- ------------ ------------ ------------ ------------ ------------- $ 69,516,988 $76,077,927 $ 94,044,121 $ 96,437,824 $121,088,381 $147,891,038 $ 435,640,932 ============ =========== ============ ============ ============ ============ ============= MAINSTAY VP S&P 500 INDEX-- INITIAL CLASS --------------- 2006 --------------- $ (4,949,545) (1,387,758) -- 74,394,465 ------------- 68,057,162 ------------- 5,840,199 (72,651,750) (4,832,596) (409,590) (34,689,175) ------------- (106,742,912) ------------- (289,939) ------------- (38,975,689) 559,398,982 ------------- $ 520,423,293 =============
ALGER AMERICAN DREYFUS IP MAINSTAY VP SMALL CVS CALVERT TECHNOLOGY VALUE-- CAPITALIZATION-- SOCIAL BALANCED GROWTH-- INITIAL CLASS CLASS O SHARES PORTFOLIO INITIAL SHARES ------------------------------- ------------------------------- ------------------------------- --------------- 2007 2006 2007 2006 2007 2006 2007 --------------------------------------------------------------------------------------------------------------- $ 165,890 $ (2,566,657) $ (1,219,330) $ (1,260,214) $ 350,004 $ 334,430 $ (277,307) 12,527,275 9,710,921 11,637,992 6,492,887 921,895 85,525 821,347 18,041,384 3,543,991 -- -- 2,269,857 780,850 -- (27,751,851) 27,277,908 2,050,624 8,879,796 (2,949,843) 1,955,807 1,747,372 ------------ ------------ ------------ ------------ ----------- ----------- ----------- 2,982,698 37,966,163 12,469,286 14,112,469 591,913 3,156,612 2,291,412 ------------ ------------ ------------ ------------ ----------- ----------- ----------- 2,377,878 2,834,822 1,088,923 1,372,780 1,995,185 2,228,745 232,720 (31,163,670) (28,296,184) (14,136,454) (11,531,535) (5,567,420) (5,273,433) (2,698,844) (2,453,355) (2,358,854) (581,650) (562,288) (304,351) (595,532) (193,335) 518,195 277,263 (200,378) (84,946) 3,480 310,752 27,087 (11,071,340) (7,372,943) (6,873,550) 991,080 (1,796,495) (2,359,199) (154,321) ------------ ------------ ------------ ------------ ----------- ----------- ----------- (41,792,292) (34,915,896) (20,703,109) (9,814,909) (5,669,601) (5,688,667) (2,786,693) ------------ ------------ ------------ ------------ ----------- ----------- ----------- (17,723) (152,416) (42,602) (72,822) (3,627) (15,172) (9,797) ------------ ------------ ------------ ------------ ----------- ----------- ----------- (38,827,317) 2,897,851 (8,276,425) 4,224,738 (5,081,315) (2,547,227) (505,078) 242,053,303 239,155,452 86,562,547 82,337,809 45,198,406 47,745,633 19,307,223 ------------ ------------ ------------ ------------ ----------- ----------- ----------- $203,225,986 $242,053,303 $ 78,286,122 $ 86,562,547 $40,117,091 $45,198,406 $18,802,145 ============ ============ ============ ============ =========== =========== =========== DREYFUS IP TECHNOLOGY GROWTH-- INITIAL SHARES --------------- 2006 --------------- $ (300,966) 510,470 -- 233,104 ----------- 442,608 ----------- 324,319 (1,727,953) (189,934) 73,639 (911,254) ----------- (2,431,183) ----------- (2,872) ----------- (1,991,447) 21,298,670 ----------- $19,307,223 ===========
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. F-29 STATEMENT OF CHANGES IN NET ASSETS (CONTINUED) For the years ended December 31, 2007 and December 31, 2006
FIDELITY(R) VIP FIDELITY(R) VIP CONTRAFUND(R)-- EQUITY-INCOME-- INITIAL CLASS INITIAL CLASS ------------------------------- ------------------------------- 2007 2006 2007 2006 ------------------------------------------------------------------ INCREASE (DECREASE) IN NET ASSETS: Operations: Net investment income (loss)........................... $ (2,231,132) $ (690,648) $ 523,053 $ 4,231,068 Net realized gain (loss) on investments................ 21,497,867 15,962,482 6,990,131 4,629,077 Realized gain distribution received.................... 97,874,832 33,477,999 16,407,638 26,843,148 Change in unrealized appreciation (depreciation) on investments.......................................... (56,246,641) (8,359,197) (22,341,685) 2,109,866 ------------ ------------ ------------ ------------ Net increase (decrease) in net assets resulting from operations........................................ 60,894,926 40,390,636 1,579,137 37,813,159 ------------ ------------ ------------ ------------ Contributions and (Withdrawals): Payments received from policyowners.................... 4,676,556 5,102,723 2,572,301 2,818,895 Policyowners' surrenders............................... (64,400,779) (57,161,546) (34,700,117) (29,526,726) Policyowners' annuity and death benefits............... (3,622,425) (3,457,535) (3,068,546) (2,296,191) Net transfers from (to) Fixed Account.................. 1,395,132 589,938 216,497 523,630 Transfers between Investment Divisions................. (9,583,316) 2,102,560 (4,672,997) 1,270,236 ------------ ------------ ------------ ------------ Net contributions and (withdrawals).................. (71,534,832) (52,823,860) (39,652,862) (27,210,156) ------------ ------------ ------------ ------------ Increase (decrease) attributable to New York Life Insurance and Annuity Corporation charges retained by the Separate Account................................ (237,332) (228,658) (12,339) (155,838) ------------ ------------ ------------ ------------ Increase (decrease) in net assets................. (10,877,238) (12,661,882) (38,086,064) 10,447,165 NET ASSETS: Beginning of year...................................... 413,439,794 426,101,676 232,336,960 221,889,795 ------------ ------------ ------------ ------------ End of year............................................ $402,562,556 $413,439,794 $194,250,896 $232,336,960 ============ ============ ============ ============
NEUBERGER BERMAN AMT MFS(R) UTILITIES MID-CAP SERIES-- GROWTH PORTFOLIO-- INITIAL CLASS CLASS I ------------------------------ ------------------------------ 2007 2006 2007 2006 ---------------------------------------------------------------- INCREASE (DECREASE) IN NET ASSETS: Operations: Net investment income (loss)........................... $ (35,578) $ 20,713 $ (110,837) $ (110,901) Net realized gain (loss) on investments................ 822,646 847,961 725,329 645,238 Realized gain distribution received.................... 423,905 175,515 -- -- Change in unrealized appreciation (depreciation) on investments.......................................... 188,850 237,582 778,608 330,992 ----------- ----------- ----------- ----------- Net increase (decrease) in net assets resulting from operations........................................ 1,399,823 1,281,771 1,393,100 865,329 ----------- ----------- ----------- ----------- Contributions and (Withdrawals): Payments received from policyowners.................... 30,619 1,899 539 5,866 Policyowners' surrenders............................... (1,036,299) (1,582,712) (954,323) (1,011,372) Policyowners' annuity and death benefits............... (60,346) (483,976) (65,911) (36,806) Net transfers from (to) Fixed Account.................. 263,096 125,892 (78,560) 66,658 Transfers between Investment Divisions................. 413,232 756,012 (80,696) 188,565 ----------- ----------- ----------- ----------- Net contributions and (withdrawals).................. (389,698) (1,182,885) (1,178,951) (787,089) ----------- ----------- ----------- ----------- Increase (decrease) attributable to New York Life Insurance and Annuity Corporation charges retained by the Separate Account................................ (4,300) (5,189) (5,564) (4,550) ----------- ----------- ----------- ----------- Increase (decrease) in net assets................. 1,005,825 93,697 208,585 73,690 NET ASSETS: Beginning of year...................................... 5,333,049 5,239,352 7,090,838 7,017,148 ----------- ----------- ----------- ----------- End of year............................................ $ 6,338,874 $ 5,333,049 $ 7,299,423 $ 7,090,838 =========== =========== =========== ===========
Not all investment divisions are available under all policies. The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. F-30 NYLIAC VARIABLE ANNUITY SEPARATE ACCOUNT-III
JANUS ASPEN JANUS ASPEN SERIES SERIES WORLDWIDE BALANCED-- GROWTH-- MFS(R) INVESTORS MFS(R) RESEARCH INSTITUTIONAL INSTITUTIONAL TRUST SERIES-- SERIES-- SHARES SHARES INITIAL CLASS INITIAL CLASS ------------------------------- ------------------------------- ------------------------------- --------------- 2007 2006 2007 2006 2007 2006 2007 --------------------------------------------------------------------------------------------------------------- $ 4,482,634 $ 3,151,139 $ (1,297,625) $ 590,296 $ (146,320) $ (259,968) $ (211,979) 15,804,423 (2,299,131) (13,152,483) (29,527,316) 1,292,355 606,562 1,831,463 -- -- -- -- 218,127 -- -- 17,604,452 41,527,623 30,235,137 58,554,272 785,622 2,546,852 1,742,753 ------------ ------------- ------------ ------------ ----------- ----------- ----------- 37,891,509 42,379,631 15,785,029 29,617,252 2,149,784 2,893,446 3,362,237 ------------ ------------- ------------ ------------ ----------- ----------- ----------- 4,744,478 5,096,511 2,642,138 2,817,608 264,716 200,003 235,167 (73,722,479) (73,920,593) (31,022,268) (27,803,296) (4,327,642) (3,835,750) (6,746,904) (5,927,490) (5,763,708) (2,005,030) (2,190,079) (309,368) (304,878) (261,113) (507,725) (2,126,158) (61,941) (739,329) 145,479 (112,888) (96,027) (22,253,266) (29,652,744) (10,069,450) (16,652,694) (1,114,683) (1,222,880) (2,177,275) ------------ ------------- ------------ ------------ ----------- ----------- ----------- (97,666,482) (106,366,692) (40,516,551) (44,567,790) (5,341,498) (5,276,393) (9,046,152) ------------ ------------- ------------ ------------ ----------- ----------- ----------- (143,904) (183,292) (68,638) (103,321) (7,968) (13,428) (12,889) ------------ ------------- ------------ ------------ ----------- ----------- ----------- (59,918,877) (64,170,353) (24,800,160) (15,053,859) (3,199,682) (2,396,375) (5,696,804) 462,105,092 526,275,445 195,487,700 210,541,559 26,498,718 28,895,093 32,143,476 ------------ ------------- ------------ ------------ ----------- ----------- ----------- $402,186,215 $ 462,105,092 $170,687,540 $195,487,700 $23,299,036 $26,498,718 $26,446,672 ============ ============= ============ ============ =========== =========== =========== MFS(R) RESEARCH SERIES-- INITIAL CLASS --------------- 2006 --------------- $ (315,812) (1,388,474) -- 4,555,948 ----------- 2,851,662 ----------- 380,110 (5,614,158) (482,057) (146,081) (2,520,433) ----------- (8,382,619) ----------- (15,307) ----------- (5,546,264) 37,689,740 ----------- $32,143,476 ===========
ROYCE ROYCE MICRO-CAP SMALL-CAP T. ROWE PRICE VAN ECK PORTFOLIO-- PORTFOLIO-- EQUITY INCOME WORLDWIDE INVESTMENT CLASS INVESTMENT CLASS PORTFOLIO HARD ASSETS ------------------------------- ------------------------------- ------------------------------- --------------- 2007 2006 2007 2006 2007 2006 2007 --------------------------------------------------------------------------------------------------------------- $ 45,231 $ (344,780) $ (595,388) $ (344,227) $ 489,317 $ 230,031 $ (4,867,799) 1,023,540 619,140 694,269 357,136 13,469,910 6,562,008 25,189,100 5,306,113 2,293,030 1,949,472 1,458,436 12,037,356 6,080,316 36,287,961 (5,617,112) 1,160,369 (4,132,349) 1,472,000 (21,001,658) 22,402,397 66,381,268 ----------- ----------- ----------- ----------- ------------ ------------ ------------ 757,772 3,727,759 (2,083,996) 2,943,345 4,994,925 35,274,752 122,990,530 ----------- ----------- ----------- ----------- ------------ ------------ ------------ 15,601,188 13,752,857 9,962,379 9,433,698 2,303,817 2,942,663 48,551,072 (3,991,228) (1,785,039) (2,560,172) (1,347,053) (34,681,650) (26,427,308) (36,885,030) (175,692) (108,582) (121,018) (23,044) (2,076,299) (1,738,727) (1,060,896) 3,302,436 3,098,071 2,074,758 2,203,680 1,045,775 412,096 10,187,698 2,254,970 20,158,763 2,418,785 7,144,269 (4,834,368) (3,999,472) 14,062,743 ----------- ----------- ----------- ----------- ------------ ------------ ------------ 16,991,674 35,116,070 11,774,732 17,411,550 (38,242,725) (28,810,748) 34,855,587 ----------- ----------- ----------- ----------- ------------ ------------ ------------ (10,305) (15,192) 5,110 (13,344) (23,385) (145,828) (431,956) ----------- ----------- ----------- ----------- ------------ ------------ ------------ 17,739,141 38,828,637 9,695,846 20,341,551 (33,271,185) 6,318,176 157,414,161 45,525,337 6,696,700 33,150,170 12,808,619 227,188,980 220,870,804 267,139,092 ----------- ----------- ----------- ----------- ------------ ------------ ------------ $63,264,478 $45,525,337 $42,846,016 $33,150,170 $193,917,795 $227,188,980 $424,553,253 =========== =========== =========== =========== ============ ============ ============ VAN ECK WORLDWIDE HARD ASSETS --------------- 2006 --------------- $ (3,411,433) 17,997,032 11,038,682 15,948,298 ------------ 41,572,579 ------------ 45,305,490 (18,994,755) (1,326,464) 10,533,615 20,382,561 ------------ 55,900,447 ------------ (272,430) ------------ 97,200,596 169,938,496 ------------ $267,139,092 ============
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. F-31 STATEMENT OF CHANGES IN NET ASSETS (CONTINUED) For the years ended December 31, 2007 and December 31, 2006
VAN KAMPEN UIF EMERGING MARKETS EQUITY-- CLASS I -------------------------------- 2007 2006 -------------------------------- INCREASE (DECREASE) IN NET ASSETS: Operations: Net investment income (loss).................... $ (1,134,217) $ (621,095) Net realized gain (loss) on investments............... 20,845,704 8,246,949 Realized gain distribution received.................. 12,725,817 2,066,509 Change in unrealized appreciation (depreciation) on investments............ 4,001,788 16,621,929 ------------ ------------ Net increase (decrease) in net assets resulting from operations........ 36,439,092 26,314,292 ------------ ------------ Contributions and (Withdrawals): Payments received from policyowners.............. 1,444,992 1,520,862 Policyowners' surrenders.... (15,478,999) (9,383,416) Policyowners' annuity and death benefits............ (533,266) (709,409) Net transfers from (to) Fixed Account............. 788,513 1,281,889 Transfers between Investment Divisions................. (312,901) 11,143,036 ------------ ------------ Net contributions and (withdrawals).......... (14,091,661) 3,852,962 ------------ ------------ Increase (decrease) attributable to New York Life Insurance and Annuity Corporation charges retained by the Separate Account................... (150,104) (119,125) ------------ ------------ Increase (decrease) in net assets........... 22,197,327 30,048,129 NET ASSETS: Beginning of year........... 104,728,987 74,680,858 ------------ ------------ End of year................. $126,926,314 $104,728,987 ============ ============
Not all investment divisions are available under all policies. The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. F-32 NYLIAC VARIABLE ANNUITY SEPARATE ACCOUNT-III (THIS PAGE INTENTIONALLY LEFT BLANK) F-33 STATEMENT OF CHANGES IN NET ASSETS (CONTINUED) For the years ended December 31, 2007 and December 31, 2006
MAINSTAY VP MAINSTAY VP BALANCED-- BOND-- SERVICE CLASS SERVICE CLASS -------------------------------- -------------------------------- 2007 2006 2007 2006 -------------------------------------------------------------------- INCREASE (DECREASE) IN NET ASSETS: Operations: Net investment income (loss)........................... $ 681,897 $ 552,425 $ 2,102,784 $ (414,766) Net realized gain (loss) on investments................ 2,219,401 797,368 57,480 (554,403) Realized gain distribution received.................... 4,998,801 1,219,241 -- -- Change in unrealized appreciation (depreciation) on investments.......................................... (6,830,873) 6,821,032 2,273,517 3,143,125 ------------ ------------ ------------ ----------- Net increase (decrease) in net assets resulting from operations........................................ 1,069,226 9,390,066 4,433,781 2,173,956 ------------ ------------ ------------ ----------- Contributions and (Withdrawals): Payments received from policyowners.................... 16,993,656 25,909,903 13,534,327 10,325,557 Policyowners' surrenders............................... (9,698,999) (6,895,338) (5,593,136) (3,837,667) Policyowners' annuity and death benefits............... (1,319,618) (1,039,602) (609,989) (736,221) Net transfers from (to) Fixed Account.................. 5,715,347 9,476,758 2,304,443 2,691,610 Transfers between Investment Divisions................. 1,384,585 10,301,544 6,620,087 (3,436,146) Contributions (withdrawal) of seed money by New York Life Insurance and Annuity Corporation............... (5,801,973) -- -- -- ------------ ------------ ------------ ----------- Net contributions and (withdrawals).................. 7,272,998 37,753,265 16,255,732 5,007,133 ------------ ------------ ------------ ----------- Increase (decrease) attributable to New York Life Insurance and Annuity Corporation charges retained by the Separate Account................................. (7,022) (39,876) (17,060) (9,920) ------------ ------------ ------------ ----------- Increase (decrease) in net assets................. 8,335,202 47,103,455 20,672,453 7,171,169 NET ASSETS: Beginning of year...................................... 129,084,188 81,980,733 83,526,342 76,355,173 ------------ ------------ ------------ ----------- End of year............................................ $137,419,390 $129,084,188 $104,198,795 $83,526,342 ============ ============ ============ ===========
MAINSTAY VP MAINSTAY VP DEVELOPING FLOATING GROWTH-- RATE-- SERVICE CLASS SERVICE CLASS -------------------------------- -------------------------------- 2007 2006 2007 2006 -------------------------------------------------------------------- INCREASE (DECREASE) IN NET ASSETS: Operations: Net investment income (loss).................... $ (471,361) $ (348,495) $ 9,606,621 $ 6,162,646 Net realized gain (loss) on investments............... 1,692,363 1,026,349 (1,527,987) (182,418) Realized gain distribution received.................. 1,538,429 -- -- -- Change in unrealized appreciation (depreciation) on investments............... 5,694,295 1,177,261 (7,187,025) (382,736) ----------- ----------- ------------ ------------ Net increase (decrease) in net assets resulting from operations........ 8,453,726 1,855,115 891,609 5,597,492 ----------- ----------- ------------ ------------ Contributions and (Withdrawals): Payments received from policyowners.............. 5,331,209 4,257,049 56,493,733 50,245,079 Policyowners' surrenders.... (1,481,806) (1,067,399) (18,496,539) (9,871,012) Policyowners' annuity and death benefits............ (83,905) (37,771) (730,896) (1,191,036) Net transfers from (to) Fixed Account............. 637,030 754,557 15,703,844 20,032,230 Transfers between Investment Divisions................. 3,988,042 (787,263) (4,454,719) 37,237,297 Contributions (withdrawal) of seed money by New York Life Insurance and Annuity Corporation............... -- -- (24,153,978) -- ----------- ----------- ------------ ------------ Net contributions and (withdrawals).......... 8,390,570 3,119,173 24,361,445 96,452,558 ----------- ----------- ------------ ------------ Increase (decrease) attributable to New York Life Insurance and Annuity Corporation charges retained by the Separate Account................... (31,455) (12,754) (14,634) (21,481) ----------- ----------- ------------ ------------ Increase (decrease) in net assets........... 16,812,841 4,961,534 25,238,420 102,028,569 NET ASSETS: Beginning of year........... 23,318,501 18,356,967 179,900,337 77,871,768 ----------- ----------- ------------ ------------ End of year................. $40,131,342 $23,318,501 $205,138,757 $179,900,337 =========== =========== ============ ============
Not all investment divisions are available under all policies. (a) For the period February 13, 2006 (Commencement of Investments) through December 31, 2006. The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. F-34 NYLIAC VARIABLE ANNUITY SEPARATE ACCOUNT-III
MAINSTAY VP MAINSTAY VP MAINSTAY VP CAPITAL COMMON CONSERVATIVE MAINSTAY VP APPRECIATION-- STOCK-- ALLOCATION-- CONVERTIBLE-- SERVICE CLASS SERVICE CLASS SERVICE CLASS SERVICE CLASS ----------------------------- ----------------------------- ----------------------------- ----------------------------- 2007 2006 2007 2006 2007 2006(A) 2007 2006 ----------------------------------------------------------------------------------------------------------------------- $ (829,112) $ (722,188) $ (248,364) $ (511,854) $ 1,658,383 $ 113,779 $ 698,492 $ 737,747 2,266,600 1,150,144 1,524,905 998,067 1,098,604 46,388 1,850,150 1,248,407 -- -- 4,614,771 1,172,211 1,728,450 128,302 2,927,352 -- 3,852,545 943,135 (4,200,609) 4,804,006 (487,565) 1,829,628 7,428,248 5,484,785 ----------- ----------- ----------- ----------- ------------ ----------- ------------ ----------- 5,290,033 1,371,091 1,690,703 6,462,430 3,997,872 2,118,097 12,904,242 7,470,939 ----------- ----------- ----------- ----------- ------------ ----------- ------------ ----------- 3,377,740 4,975,533 8,499,498 7,572,566 31,789,563 18,135,050 14,748,397 12,963,773 (3,451,561) (2,491,590) (3,037,809) (1,839,159) (6,896,667) (1,884,786) (5,820,986) (4,036,802) (300,842) (78,065) (226,773) (256,469) (960,796) -- (380,818) (390,603) 487,287 860,748 1,897,900 1,802,844 8,234,740 3,789,449 3,156,034 3,285,600 (5,152,101) (4,640,849) (534,322) (1,315,703) 35,315,239 23,648,681 (409,121) (4,214,783) -- -- -- -- (273,924) 250,000 -- -- ----------- ----------- ----------- ----------- ------------ ----------- ------------ ----------- (5,039,477) (1,374,223) 6,598,494 5,964,079 67,208,155 43,938,394 11,293,506 7,607,185 ----------- ----------- ----------- ----------- ------------ ----------- ------------ ----------- (25,197) (13,262) (9,030) (28,804) (15,716) (6,681) (54,284) (41,532) ----------- ----------- ----------- ----------- ------------ ----------- ------------ ----------- 225,359 (16,394) 8,280,167 12,397,705 71,190,311 46,049,810 24,143,464 15,036,592 51,483,513 51,499,907 53,995,777 41,598,072 46,049,810 -- 98,532,065 83,495,473 ----------- ----------- ----------- ----------- ------------ ----------- ------------ ----------- $51,708,872 $51,483,513 $62,275,944 $53,995,777 $117,240,121 $46,049,810 $122,675,529 $98,532,065 =========== =========== =========== =========== ============ =========== ============ ===========
MAINSTAY VP MAINSTAY VP HIGH YIELD MAINSTAY VP MAINSTAY VP GROWTH CORPORATE ICAP SELECT GOVERNMENT-- ALLOCATION-- BOND-- EQUITY-- SERVICE CLASS SERVICE CLASS SERVICE CLASS SERVICE CLASS ----------------------- ----------------------- ------------------------- ------------------------ 2007 2006 2007 2006(A) 2007 2006 2007 2006 -------------------------------------------------------------------------------------------------- $ 2,099,942 $ (344,108)$ (198,073)$ (19,317)$ 23,577,036 $ 1,387,433 $ (661,918)$ (381,843) 43,851 (254,152) 1,022,713 54,501 2,803,059 916,520 1,860,599 605,951 -- -- 3,035,682 245,841 -- -- 2,986,540 166,550 847,402 1,805,458 482,824 2,577,327 (24,971,643) 34,558,134 (2,494,700) 4,149,922 ----------- ----------- ----------- ----------- ------------ ------------ ------------ ----------- 2,991,195 1,207,198 4,343,146 2,858,352 1,408,452 36,862,087 1,690,521 4,540,580 ----------- ----------- ----------- ----------- ------------ ------------ ------------ ----------- 8,226,341 7,740,527 26,380,961 17,614,373 71,955,912 66,284,851 26,482,479 5,356,611 (3,365,606) (2,932,013) (4,240,153) (796,144) (27,453,601) (19,155,345) (5,227,862) (1,585,539) (416,722) (404,183) (252,521) (18,541) (3,520,835) (3,617,400) (203,687) (86,359) 1,097,773 1,675,142 4,399,905 2,900,674 16,361,607 14,561,940 4,519,344 931,453 4,442,863 (1,185,343) 12,064,137 19,276,853 (15,258,464) (20,869,149) 41,914,667 2,776,380 -- -- (290,337) 250,000 -- -- -- -- ----------- ----------- ----------- ----------- ------------ ------------ ------------ ----------- 9,984,649 4,894,130 38,061,992 39,227,215 42,084,619 37,204,897 67,484,941 7,392,546 ----------- ----------- ----------- ----------- ------------ ------------ ------------ ----------- (11,243) (5,838) (17,209) (9,100) (7,392) (122,153) (7,601) (19,760) ----------- ----------- ----------- ----------- ------------ ------------ ------------ ----------- 12,964,601 6,095,490 42,387,929 42,076,467 43,485,679 73,944,831 69,167,861 11,913,366 55,601,552 49,506,062 42,076,467 -- 424,062,628 350,117,797 36,069,574 24,156,208 ----------- ----------- ----------- ----------- ------------ ------------ ------------ ----------- $68,566,153 $55,601,552 $84,464,396 $42,076,467 $467,548,307 $424,062,628 $105,237,435 $36,069,574 =========== =========== =========== =========== ============ ============ ============ ===========
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. F-35 STATEMENT OF CHANGES IN NET ASSETS (CONTINUED) For the years ended December 31, 2007 and December 31, 2006
MAINSTAY VP MAINSTAY VP INCOME & GROWTH-- INTERNATIONAL EQUITY-- SERVICE CLASS SERVICE CLASS -------------------------------- -------------------------------- 2007 2006 2007 2006 -------------------------------------------------------------------- INCREASE (DECREASE) IN NET ASSETS: Operations: Net investment income (loss)........................... $ 452,981 $ (325,142) $ (1,883,623) $ (1,567,227) Net realized gain (loss) on investments................ (1,352,609) 630,507 6,699,372 1,456,284 Realized gain distribution received.................... 5,630,271 423,157 12,652,070 1,500,691 Change in unrealized appreciation (depreciation) on investments.......................................... (5,449,890) 3,544,747 (12,872,632) 29,564,850 ------------ ----------- ------------ ------------ Net increase (decrease) in net assets resulting from operations........................................ (719,247) 4,273,269 4,595,187 30,954,598 ------------ ----------- ------------ ------------ Contributions and (Withdrawals): Payments received from policyowners.................... 3,029,958 4,408,891 43,433,203 31,698,184 Policyowners' surrenders............................... (1,587,342) (1,692,254) (12,423,625) (4,270,768) Policyowners' annuity and death benefits............... (155,103) (232,565) (472,788) (349,761) Net transfers from (to) Fixed Account.................. 638,847 1,125,491 9,882,495 6,226,099 Transfers between Investment Divisions................. (35,132,544) (1,264,236) (5,947,791) 13,291,985 ------------ ----------- ------------ ------------ Net contributions and (withdrawals).................. (33,206,184) 2,345,327 34,471,494 46,595,739 ------------ ----------- ------------ ------------ Increase (decrease) attributable to New York Life Insurance and Annuity Corporation charges retained by the Separate Account................................. 2,214 (21,036) (22,317) (117,133) ------------ ----------- ------------ ------------ Increase (decrease) in net assets................. (33,923,217) 6,597,560 39,044,364 77,433,204 NET ASSETS: Beginning of year...................................... 33,923,217 27,325,657 162,500,477 85,067,273 ------------ ----------- ------------ ------------ End of year............................................ $ -- $33,923,217 $201,544,841 $162,500,477 ============ =========== ============ ============
MAINSTAY VP MAINSTAY VP MODERATE MODERATE GROWTH ALLOCATION-- ALLOCATION-- SERVICE CLASS SERVICE CLASS -------------------------------- -------------------------------- 2007 2006(A) 2007 2006(A) -------------------------------------------------------------------- INCREASE (DECREASE) IN NET ASSETS: Operations: Net investment income (loss)........................... $ 1,517,407 $ 118,688 $ 793,189 $ 118,365 Net realized gain (loss) on investments................ 1,544,526 (351,143) 1,392,174 51,389 Realized gain distribution received.................... 3,721,777 266,344 5,980,435 502,977 Change in unrealized appreciation (depreciation) on investments.......................................... 1,445,952 4,762,167 1,480,004 5,794,903 ------------ ----------- ------------ ------------ Net increase (decrease) in net assets resulting from operations........................................ 8,229,662 4,796,056 9,645,802 6,467,634 ------------ ----------- ------------ ------------ Contributions and (Withdrawals): Payments received from policyowners.................... 52,643,209 41,647,389 58,372,118 50,139,596 Policyowners' surrenders............................... (9,903,898) (1,874,686) (8,523,117) (1,971,966) Policyowners' annuity and death benefits............... (1,256,263) (203,484) (461,215) (19,175) Net transfers from (to) Fixed Account.................. 14,560,590 7,386,608 14,531,423 7,562,636 Transfers between Investment Divisions................. 26,495,050 41,494,902 22,725,182 41,177,275 Contribution (withdrawals) of seed money by New York Life Insurance and Annuity Corporation............... (280,539) 250,000 (286,972) 250,000 ------------ ----------- ------------ ------------ Net contributions and (withdrawals).................. 82,258,149 88,700,729 86,357,419 97,138,366 ------------ ----------- ------------ ------------ Increase (decrease) attributable to New York Life Insurance and Annuity Corporation charges retained by the Separate Account................................. (32,844) (16,864) (38,458) (20,689) ------------ ----------- ------------ ------------ Increase (decrease) in net assets................. 90,454,967 93,479,921 95,964,763 103,585,311 NET ASSETS: Beginning of year...................................... 93,479,921 -- 103,585,311 -- ------------ ----------- ------------ ------------ End of year............................................ $183,934,888 $93,479,921 $199,550,074 $103,585,311 ============ =========== ============ ============
Not all investment divisions are available under all policies. (a) For the period February 13, 2006 (Commencement of Investments) through December 31, 2006. The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. F-36 NYLIAC VARIABLE ANNUITY SEPARATE ACCOUNT-III
MAINSTAY VP MAINSTAY VP MAINSTAY VP MAINSTAY VP LARGE CAP MID CAP MID CAP MID CAP GROWTH-- CORE-- GROWTH-- VALUE-- SERVICE CLASS SERVICE CLASS SERVICE CLASS SERVICE CLASS ----------------------------- ----------------------------- ----------------------------- ----------------------------- 2007 2006 2007 2006 2007 2006 2007 2006 ----------------------------------------------------------------------------------------------------------------------- $ (598,012) $ (390,250) $ (1,515,410) $ (1,399,112) $ (2,224,509) $ (1,966,300) $ (1,201,998) $ (2,193,115) 891,078 124,230 3,862,932 2,224,960 5,989,590 6,413,402 4,234,358 2,637,059 -- -- 11,405,849 615,075 10,141,291 2,268,593 13,664,107 1,957,953 6,334,725 1,560,579 (11,167,817) 9,255,316 3,383,701 1,174,458 (21,653,089) 13,614,314 ----------- ----------- ------------ ------------ ------------ ------------ ------------ ------------ 6,627,791 1,294,559 2,585,554 10,696,239 17,290,073 7,890,153 (4,956,622) 16,016,211 ----------- ----------- ------------ ------------ ------------ ------------ ------------ ------------ 8,064,080 7,395,000 18,790,548 17,675,659 14,185,951 21,100,845 17,935,453 22,028,414 (2,002,334) (1,094,378) (5,922,883) (3,683,385) (7,615,759) (5,533,619) (10,439,867) (5,610,930) (110,577) (51,749) (378,808) (419,548) (527,636) (159,177) (689,291) (708,306) 2,251,869 1,938,399 3,147,826 3,870,801 2,971,856 4,195,259 3,661,064 5,665,006 4,869,869 1,399,607 (2,952,368) (1,514,190) (3,751,359) (9,920,328) (5,713,334) (9,908,861) ----------- ----------- ------------ ------------ ------------ ------------ ------------ ------------ 13,072,907 9,586,879 12,684,315 15,929,337 5,263,053 9,682,980 4,754,025 11,465,323 ----------- ----------- ------------ ------------ ------------ ------------ ------------ ------------ (25,063) (8,162) (11,735) (50,460) (72,022) (64,549) 10,264 (68,577) ----------- ----------- ------------ ------------ ------------ ------------ ------------ ------------ 19,675,635 10,873,276 15,258,134 26,575,116 22,481,104 17,508,584 (192,333) 27,412,957 30,413,522 19,540,246 100,836,919 74,261,803 127,431,706 109,923,122 154,113,907 126,700,950 ----------- ----------- ------------ ------------ ------------ ------------ ------------ ------------ $50,089,157 $30,413,522 $116,095,053 $100,836,919 $149,912,810 $127,431,706 $153,921,574 $154,113,907 =========== =========== ============ ============ ============ ============ ============ ============
MAINSTAY VP MAINSTAY VP S&P 500 SMALL CAP MAINSTAY VP MAINSTAY VP INDEX-- GROWTH-- TOTAL RETURN-- VALUE-- SERVICE CLASS SERVICE CLASS SERVICE CLASS SERVICE CLASS ----------------------------- ----------------------------- ----------------------------- ----------------------------- 2007 2006 2007 2006 2007 2006 2007 2006 ----------------------------------------------------------------------------------------------------------------------- $ (282,780) $ (2,345,203) $(1,086,206) $(1,095,207) $ 226,247 $ (500,109) $ (110,203) $(1,067,614) 6,656,139 3,035,684 1,461,041 1,789,108 1,219,905 677,663 3,210,362 1,671,794 -- -- 5,066,617 606 3,274,857 612,174 9,080,567 1,457,508 1,322,101 25,093,961 (8,767,104) 2,337,920 (2,065,516) 2,495,779 (12,013,541) 10,926,618 ------------ ------------ ----------- ----------- ----------- ----------- ------------ ----------- 7,695,460 25,784,442 (3,325,652) 3,032,427 2,655,493 3,285,507 167,185 12,988,306 ------------ ------------ ----------- ----------- ----------- ----------- ------------ ----------- 24,783,255 27,700,133 4,912,137 8,422,913 3,045,375 5,251,264 14,187,358 15,694,810 (15,123,265) (8,765,610) (3,531,505) (2,987,897) (2,874,155) (2,038,414) (6,242,351) (3,684,517) (972,715) (971,644) (252,061) (238,230) (324,137) (169,265) (500,336) (442,968) 4,768,310 5,994,400 767,128 2,365,846 773,060 852,594 2,517,492 3,187,148 (12,168,378) (9,245,454) (4,182,852) (6,929,351) (3,043,738) (2,818,218) (5,084,648) 1,761,743 -- -- -- -- -- -- -- -- ------------ ------------ ----------- ----------- ----------- ----------- ------------ ----------- 1,287,207 14,711,825 (2,287,153) 633,281 (2,423,595) 1,077,961 4,877,515 16,516,216 ------------ ------------ ----------- ----------- ----------- ----------- ------------ ----------- (38,265) (114,686) 13,355 (28,742) (11,855) (16,673) (5,795) (53,784) ------------ ------------ ----------- ----------- ----------- ----------- ------------ ----------- 8,944,402 40,381,581 (5,599,450) 3,636,966 220,043 4,346,795 5,038,905 29,450,738 223,987,747 183,606,166 70,912,451 67,275,485 47,241,635 42,894,840 99,181,228 69,730,490 ------------ ------------ ----------- ----------- ----------- ----------- ------------ ----------- $232,932,149 $223,987,747 $65,313,001 $70,912,451 $47,461,678 $47,241,635 $104,220,133 $99,181,228 ============ ============ =========== =========== =========== =========== ============ ===========
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. F-37 STATEMENT OF CHANGES IN NET ASSETS (CONTINUED) For the years ended December 31, 2007 and December 31, 2006
COLUMBIA SMALL ALGER AMERICAN SMALL CAP VALUE FUND, CAPITALIZATION-- VARIABLE SERIES-- CLASS S SHARES CLASS B -------------------------------- -------------------------------- 2007 2006 2007 2006 -------------------------------------------------------------------- INCREASE (DECREASE) IN NET ASSETS: Operations: Net investment income (loss)........................... $ (983,751) $ (722,200) $ (677,085) $ (431,809) Net realized gain (loss) on investments................ 3,719,715 1,325,987 1,778,503 609,248 Realized gain distribution received.................... -- -- 5,731,242 1,127,346 Change in unrealized appreciation (depreciation) on investments.......................................... 6,084,778 6,475,942 (8,986,242) 4,058,012 ----------- ----------- ----------- ----------- Net increase (decrease) in net assets resulting from operations........................................ 8,820,742 7,079,729 (2,153,582) 5,362,797 ----------- ----------- ----------- ----------- Contributions and (Withdrawals): Payments received from policyowners.................... 6,136,073 13,324,211 8,082,516 11,313,493 Policyowners' surrenders............................... (3,452,074) (1,979,801) (3,383,640) (1,742,721) Policyowners' annuity and death benefits............... (70,976) (127,911) (167,214) (145,863) Net transfers from (to) Fixed Account.................. 970,090 1,945,607 1,586,402 2,944,505 Transfers between Investment Divisions................. (4,657,831) 3,503,488 (5,119,651) 11,535,862 ----------- ----------- ----------- ----------- Net contributions and (withdrawals).................. (1,074,718) 16,665,594 998,413 23,905,276 ----------- ----------- ----------- ----------- Increase (decrease) attributable to New York Life Insurance and Annuity Corporation charges retained by the Separate Account................................. (32,263) (36,215) 7,755 (22,423) ----------- ----------- ----------- ----------- Increase (decrease) in net assets................. 7,713,761 23,709,108 (1,147,414) 29,245,650 NET ASSETS: Beginning of year...................................... 56,323,579 32,614,471 50,913,539 21,667,889 ----------- ----------- ----------- ----------- End of year............................................ $64,037,340 $56,323,579 $49,766,125 $50,913,539 =========== =========== =========== ===========
JANUS ASPEN SERIES JANUS ASPEN SERIES BALANCED-- WORLDWIDE GROWTH-- SERVICE SHARES SERVICE SHARES -------------------------------- -------------------------------- 2007 2006 2007 2006 -------------------------------------------------------------------- INCREASE (DECREASE) IN NET ASSETS: Operations: Net investment income (loss)........................... $ 871,269 $ 408,114 $ (344,134) $ 33,638 Net realized gain (loss) on investments................ 2,169,091 1,359,922 1,205,454 541,515 Realized gain distribution received.................... -- -- -- -- Change in unrealized appreciation (depreciation) on investments.......................................... 5,959,978 6,159,147 1,495,676 3,803,338 ------------ ------------ ----------- ----------- Net increase (decrease) in net assets resulting from operations........................................ 9,000,338 7,927,183 2,356,996 4,378,491 ------------ ------------ ----------- ----------- Contributions and (Withdrawals): Payments received from policyowners.................... 13,282,294 12,474,276 5,505,221 4,029,316 Policyowners' surrenders............................... (6,536,395) (4,644,752) (1,840,465) (1,465,531) Policyowners' annuity and death benefits............... (704,427) (1,003,348) (137,298) (37,272) Net transfers from (to) Fixed Account.................. 3,300,060 3,320,832 793,803 725,425 Transfers between Investment Divisions................. (648,071) (2,493,509) (413,780) (1,878,136) ------------ ------------ ----------- ----------- Net contributions and (withdrawals).................. 8,693,461 7,653,499 3,907,481 1,373,802 ------------ ------------ ----------- ----------- Increase (decrease) attributable to New York Life Insurance and Annuity Corporation charges retained by the Separate Account................................. (37,349) (35,549) (12,340) (15,735) ------------ ------------ ----------- ----------- Increase (decrease) in net assets................. 17,656,450 15,545,133 6,252,137 5,736,558 NET ASSETS: Beginning of year...................................... 101,226,881 85,681,748 31,564,406 25,827,848 ------------ ------------ ----------- ----------- End of year............................................ $118,883,331 $101,226,881 $37,816,543 $31,564,406 ============ ============ =========== ===========
Not all investment divisions are available under all policies. The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. F-38 NYLIAC VARIABLE ANNUITY SEPARATE ACCOUNT-III
DREYFUS IP FIDELITY(R) VIP TECHNOLOGY FIDELITY(R) VIP EQUITY- FIDELITY(R) VIP GROWTH-- CONTRAFUND(R)-- INCOME-- MID CAP-- SERVICE SHARES SERVICE CLASS 2 SERVICE CLASS 2 SERVICE CLASS 2 ----------------------------- ----------------------------- ----------------------------- ----------------------------- 2007 2006 2007 2006 2007 2006 2007 2006 ----------------------------------------------------------------------------------------------------------------------- $ (416,631) $ (359,619) $ (2,311,104) $ (1,140,040) $ 249,505 $ 1,850,537 $ (2,165,952) $ (2,399,217) 567,188 79,293 5,761,653 2,384,032 2,166,963 1,123,061 7,240,752 4,625,602 -- -- 83,709,146 20,417,114 15,039,457 16,129,006 18,545,789 19,509,813 3,037,210 809,478 (43,118,863) (1,151,303) (18,940,056) 2,678,510 2,566,118 (4,753,011) ----------- ----------- ------------ ------------ ------------ ------------ ------------ ------------ 3,187,767 529,152 44,040,832 20,509,803 (1,484,131) 21,781,114 26,186,707 16,983,187 ----------- ----------- ------------ ------------ ------------ ------------ ------------ ------------ 3,202,832 3,637,067 53,471,840 58,964,797 30,601,679 26,658,811 22,051,109 28,484,016 (1,699,773) (1,193,598) (14,789,150) (7,856,268) (9,903,327) (5,579,781) (16,715,204) (11,237,454) (110,825) (145,742) (1,244,045) (750,454) (702,012) (614,059) (840,487) (717,491) 551,810 595,626 12,268,340 13,605,907 6,223,957 4,637,573 5,385,413 5,362,456 (563,638) (580,164) (7,499,684) 4,316,813 (2,441,876) 2,315,791 (8,972,809) 2,185,580 ----------- ----------- ------------ ------------ ------------ ------------ ------------ ------------ 1,380,406 2,313,189 42,207,301 68,280,795 23,778,421 27,418,335 908,022 24,077,107 ----------- ----------- ------------ ------------ ------------ ------------ ------------ ------------ (14,248) (2,925) (183,845) (114,494) (3,539) (92,493) (102,850) (98,477) ----------- ----------- ------------ ------------ ------------ ------------ ------------ ------------ 4,553,925 2,839,416 86,064,288 88,676,104 22,290,751 49,106,956 26,991,879 40,961,817 25,004,981 22,165,565 260,596,026 171,919,922 155,320,120 106,213,164 191,458,543 150,496,726 ----------- ----------- ------------ ------------ ------------ ------------ ------------ ------------ $29,558,906 $25,004,981 $346,660,314 $260,596,026 $177,610,871 $155,320,120 $218,450,422 $191,458,543 =========== =========== ============ ============ ============ ============ ============ ============
NEUBERGER BERMAN AMT MID-CAP MFS(R) INVESTORS MFS(R) RESEARCH MFS(R) UTILITIES GROWTH TRUST SERIES-- SERIES-- SERIES-- PORTFOLIO-- SERVICE CLASS SERVICE CLASS SERVICE CLASS CLASS S ----------------------------- ----------------------------- ----------------------------- ----------------------------- 2007 2006 2007 2006 2007 2006 2007 2006 ----------------------------------------------------------------------------------------------------------------------- $ (72,948) $ (83,175) $ (104,676) $ (100,375) $ (3,426,618) $ 617,984 $ (422,605) $ (251,561) 185,187 290,420 450,228 249,929 10,124,464 6,136,316 2,207,137 1,048,674 61,124 -- -- -- 27,977,178 8,728,554 -- -- 412,305 386,395 666,882 518,119 59,027,569 48,935,783 2,555,112 948,952 ---------- ---------- ----------- ---------- ------------ ------------ ----------- ----------- 585,668 593,640 1,012,434 667,673 93,702,593 64,418,637 4,339,644 1,746,065 ---------- ---------- ----------- ---------- ------------ ------------ ----------- ----------- 787,187 844,305 1,160,955 1,114,450 84,815,493 52,772,968 5,663,425 3,640,862 (368,657) (223,513) (580,994) (348,615) (29,908,137) (15,919,899) (1,719,930) (979,162) (25,702) (1,072) (48,623) (47,413) (1,920,181) (1,624,719) (83,677) (16,841) 195,747 275,137 356,620 245,797 20,778,074 14,140,197 907,614 477,531 69,582 (148,269) (125,230) (315,147) 43,937,128 22,639,403 7,589,606 2,130,793 ---------- ---------- ----------- ---------- ------------ ------------ ----------- ----------- 658,157 746,588 762,728 649,072 117,702,377 72,007,950 12,357,038 5,253,183 ---------- ---------- ----------- ---------- ------------ ------------ ----------- ----------- (2,341) (3,115) (4,190) (3,681) (282,255) (248,739) (17,830) (8,648) ---------- ---------- ----------- ---------- ------------ ------------ ----------- ----------- 1,241,484 1,337,113 1,770,972 1,313,064 211,122,715 136,177,848 16,678,852 6,990,600 6,783,459 5,446,346 8,834,563 7,521,499 322,555,614 186,377,766 18,409,919 11,419,319 ---------- ---------- ----------- ---------- ------------ ------------ ----------- ----------- $8,024,943 $6,783,459 $10,605,535 $8,834,563 $533,678,329 $322,555,614 $35,088,771 $18,409,919 ========== ========== =========== ========== ============ ============ =========== ===========
The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. F-39 STATEMENT OF CHANGES IN NET ASSETS (CONTINUED) For the years ended December 31, 2007 and December 31, 2006
VAN KAMPEN T. ROWE PRICE UIF EMERGING EQUITY INCOME MARKETS EQUITY-- PORTFOLIO--II CLASS II -------------------------------- -------------------------------- 2007 2006 2007 2006 -------------------------------------------------------------------- INCREASE (DECREASE) IN NET ASSETS: Operations: Net investment income (loss)........................... $ (109,396) $ (311,238) $ (1,336,757) $ (511,758) Net realized gain (loss) on investments................ 3,716,757 754,483 10,044,630 2,690,634 Realized gain distribution received.................... 13,036,401 5,033,256 13,028,309 1,538,638 Change in unrealized appreciation (depreciation) on investments.......................................... (14,371,305) 20,636,799 15,982,610 15,781,405 ------------ ------------ ------------ ----------- Net increase (decrease) in net assets resulting from operations........................................ 2,272,457 26,113,300 37,718,792 19,498,919 ------------ ------------ ------------ ----------- Contributions and (Withdrawals): Payments received from policyowners.................... 33,739,055 31,248,196 28,349,921 22,823,953 Policyowners' surrenders............................... (12,902,701) (6,332,650) (5,921,441) (2,795,538) Policyowners' annuity and death benefits............... (1,265,614) (1,095,090) (221,533) (98,392) Net transfers from (to) Fixed Account.................. 7,493,567 7,573,830 4,445,105 3,750,936 Transfers between Investment Divisions................. (5,797,800) (317,714) (2,525,258) 7,114,934 ------------ ------------ ------------ ----------- Net contributions and (withdrawals).................. 21,266,507 31,076,572 24,126,794 30,795,893 ------------ ------------ ------------ ----------- Increase (decrease) attributable to New York Life Insurance and Annuity Corporation charges retained by the Separate Account................................. (18,823) (110,566) (164,016) (86,799) ------------ ------------ ------------ ----------- Increase (decrease) in net assets................. 23,520,141 57,079,306 61,681,570 50,208,013 NET ASSETS: Beginning of year...................................... 194,544,174 137,464,868 90,541,349 40,333,336 ------------ ------------ ------------ ----------- End of year............................................ $218,064,315 $194,544,174 $152,222,919 $90,541,349 ============ ============ ============ ===========
VICTORY VIF DIVERSIFIED STOCK-- CLASS A SHARES -------------------------------- 2007 2006 -------------------------------- INCREASE (DECREASE) IN NET ASSETS: Operations: Net investment income (loss).................... $ (214,024) $ (239,419) Net realized gain (loss) on investments............... 958,409 485,172 Realized gain distribution received.................. 1,946,548 585,003 Change in unrealized appreciation (depreciation) on investments............... (780,172) 1,433,492 ----------- ----------- Net increase (decrease) in net assets resulting from operations........ 1,910,761 2,264,248 ----------- ----------- Contributions and (Withdrawals): Payments received from policyowners.............. 2,033,306 2,851,616 Policyowners' surrenders.... (2,212,976) (1,200,065) Policyowners' annuity and death benefits............ (1,334) (29,070) Net transfers from (to) Fixed Account............. 580,412 1,166,954 Transfers between Investment Divisions................. 391,510 1,509,534 ----------- ----------- Net contributions and (withdrawals).......... 790,918 4,298,969 ----------- ----------- Increase (decrease) attributable to New York Life Insurance and Annuity Corporation charges retained by the Separate Account................... (7,033) (9,620) ----------- ----------- Increase (decrease) in net assets........... 2,694,646 6,553,597 NET ASSETS: Beginning of year........... 22,864,157 16,310,560 ----------- ----------- End of year................. $25,558,803 $22,864,157 =========== ===========
Not all investment divisions are available under all policies. The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. F-40 NYLIAC VARIABLE ANNUITY SEPARATE ACCOUNT-III (THIS PAGE INTENTIONALLY LEFT BLANK) F-41 NOTES TO FINANCIAL STATEMENTS NOTE 1--Organization and Accounting Policies: -------------------------------------------------------------------------------- NYLIAC Variable Annuity Separate Account-III ("Separate Account") was established on November 30, 1994, under Delaware law by New York Life Insurance and Annuity Corporation ("NYLIAC"), a wholly-owned subsidiary of New York Life Insurance Company. The Separate Account funds Series I policies (New York Life Variable Annuity, New York Life Flexible Premium Variable Annuity and New York Life Plus Variable Annuity), Series II policies (New York Life Access Variable Annuity), Series III policies (New York Life Premium Plus Variable Annuity), Series IV policies (New York Life Essentials Variable Annuity and New York Life Plus II Variable Annuity), Series V policies (New York Life Select Variable Annuity) and Series VI policies (New York Life Premium Plus II Variable Annuity). All Series include policies formerly known as LifeStages(R) and MainStay. Effective December 4, 2006, sales of the New York Life Variable Annuity and New York Life Plus Variable Annuity were discontinued. Sales of the Series II policies formerly known as MainStay Access Variable Annuity were discontinued effective October 14, 2002. The Separate Account was established to receive and invest premium payments under Non-Qualified Deferred and Tax-Qualified Deferred Flexible Premium Variable Annuity Policies issued by NYLIAC. The Non-Qualified policies are designed to establish retirement benefits to provide individuals with supplemental retirement income. The Qualified policies are designed to establish retirement benefits for individuals who participate in tax-qualified pension, profit sharing or annuity plans. The policies are distributed by NYLIFE Distributors LLC and sold by registered representatives of NYLIFE Securities LLC and certain banking and financial institutions that have entered into selling agreements with NYLIAC and registered representatives of unaffiliated broker- dealers. NYLIFE Securities LLC is a wholly-owned subsidiary of NYLIFE LLC and NYLIFE Distributors LLC is a wholly-owned subsidiary of New York Life Investment Management Holdings LLC ("NYLIM Holdings"). NYLIFE LLC and NYLIM Holdings are both wholly-owned subsidiaries of New York Life Insurance Company. The Separate Account is registered under the Investment Company Act of 1940, as amended, as a unit investment trust. The assets of the Separate Account, which are currently all in the accumulation phase, are invested in shares of eligible portfolios of the MainStay VP Series Fund, Inc., the Alger American Fund, the Calvert Variable Series, Inc., the Dreyfus Investment Portfolios, the Columbia Funds Variable Insurance Trust, the Fidelity Variable Insurance Products Fund, the Janus Aspen Series, the MFS(R) Variable Insurance Trust(SM), the Neuberger Berman Advisers Management Trust, the Royce Capital Fund, the T. Rowe Price Equity Series, Inc., the Van Eck Worldwide Insurance Trust, the Universal Institutional Funds, Inc. and the Victory Variable Insurance Funds (collectively, "Funds"). These assets are clearly identified and distinguished from the other assets and liabilities of NYLIAC. These assets are the property of NYLIAC; however, the portion of the assets attributable to the policies will not be charged with liabilities arising out of any other business NYLIAC may conduct. The Fixed Account and the Dollar Cost Averaging Advantage Plan Accounts represent the general assets of NYLIAC. NYLIAC's Fixed Account and the Dollar Cost Averaging Advantage Plan Accounts may be charged with liabilities arising out of other business NYLIAC may conduct. New York Life Investment Management LLC ("NYLIM"), a wholly-owned subsidiary of NYLIM Holdings, provides investment advisory services to the MainStay VP Series Fund, Inc. for a fee. NYLIM retains several sub-advisers, including MacKay Shields LLC, a wholly-owned subsidiary of NYLIM Holdings, Institutional Capital LLC, a wholly-owned subsidiary of NYLIM Holdings, Lord, Abbett & Co. LLC and Winslow Capital Management Inc., to provide investment advisory services to certain portfolios of the MainStay VP Series Fund, Inc. The MainStay VP Cash Management, CVS Calvert Social Balanced Portfolio, Royce Micro-Cap Portfolio--Investment Class, Royce Small-Cap Portfolio--Investment Class and the Van Eck Worldwide Hard Assets offer one class of shares under this Separate Account which are presented within the initial class section. The MainStay VP Balanced--Service Class, MainStay VP Conservative Allocation--Service Class, MainStay VP Floating Rate--Service Class, MainStay VP Growth Allocation--Service Class, MainStay VP Moderate Allocation--Service Class, MainStay VP Moderate Growth Allocation--Service Class, Columbia Small Cap Value Fund, Variable Series--Class B, Fidelity(R) VIP Mid Cap--Service Class 2 and Victory VIF Diversified Stock--Class A Shares offer one class of shares under this Separate Account which are presented within the service class section. The following Investment Divisions, with their respective fund portfolios, are available in this Separate Account: MainStay VP Bond--Initial Class MainStay VP Capital Appreciation--Initial Class MainStay VP Cash Management MainStay VP Common Stock--Initial Class MainStay VP Convertible--Initial Class MainStay VP Developing Growth--Initial Class MainStay VP Government--Initial Class MainStay VP High Yield Corporate Bond--Initial Class MainStay VP ICAP Select Equity--Initial Class(1,2) MainStay VP International Equity--Initial Class MainStay VP Large Cap Growth--Initial Class MainStay VP Mid Cap Core--Initial Class MainStay VP Mid Cap Growth--Initial Class MainStay VP Mid Cap Value--Initial Class MainStay VP S&P 500 Index--Initial Class MainStay VP Small Cap Growth--Initial Class MainStay VP Total Return--Initial Class MainStay VP Value--Initial Class Alger American Small Capitalization--Class O Shares(3) CVS Calvert Social Balanced Portfolio Dreyfus IP Technology Growth--Initial Shares Fidelity(R) VIP Contrafund(R)--Initial Class Fidelity(R) VIP Equity-Income--Initial Class Janus Aspen Series Balanced--Institutional Shares Janus Aspen Series Worldwide Growth--Institutional Shares MFS(R) Investors Trust Series--Initial Class MFS(R) Research Series--Initial Class MFS(R) Utilities Series--Initial Class Neuberger Berman AMT Mid-Cap Growth Portfolio--Class I F-42 NYLIAC VARIABLE ANNUITY SEPARATE ACCOUNT-III -------------------------------------------------------------------------------- Royce Micro-Cap Portfolio--Investment Class Royce Small-Cap Portfolio--Investment Class T. Rowe Price Equity Income Portfolio Van Eck Worldwide Hard Assets Van Kampen UIF Emerging Markets Equity--Class I MainStay VP Balanced--Service Class MainStay VP Bond--Service Class MainStay VP Capital Appreciation--Service Class MainStay VP Common Stock--Service Class MainStay VP Conservative Allocation--Service Class MainStay VP Convertible--Service Class MainStay VP Developing Growth--Service Class MainStay VP Floating Rate--Service Class MainStay VP Government--Service Class MainStay VP Growth Allocation--Service Class MainStay VP High Yield Corporate Bond--Service Class MainStay VP ICAP Select Equity--Service Class(4,5) MainStay VP International Equity--Service Class MainStay VP Large Cap Growth--Service Class MainStay VP Mid Cap Core--Service Class MainStay VP Mid Cap Growth--Service Class MainStay VP Mid Cap Value--Service Class MainStay VP Moderate Allocation--Service Class MainStay VP Moderate Growth Allocation--Service Class MainStay VP S&P 500 Index--Service Class MainStay VP Small Cap Growth--Service Class MainStay VP Total Return--Service Class MainStay VP Value--Service Class Alger American Small Capitalization--Class S Shares(6) Columbia Small Cap Value Fund, Variable Series--Class B Dreyfus IP Technology Growth--Service Shares Fidelity(R) VIP Contrafund(R)--Service Class 2 Fidelity(R) VIP Equity-Income--Service Class 2 Fidelity(R) VIP Mid Cap--Service Class 2 Janus Aspen Series Balanced--Service Shares Janus Aspen Series Worldwide Growth--Service Shares MFS(R) Investors Trust Series--Service Class MFS(R) Research Series--Service Class MFS(R) Utilities Series--Service Class Neuberger Berman AMT Mid-Cap Growth Portfolio--Class S T. Rowe Price Equity Income Portfolio--II Van Kampen UIF Emerging Markets Equity--Class II Victory VIF Diversified Stock--Class A Shares Not all investment divisions are available under all policies. For all policies within Series I, III, IV, V and VI, initial premium payments are allocated to the Investment Divisions, Fixed Account(s) and/or Dollar Cost Averaging Advantage Plan Accounts (where available) within two Business Days after receipt. For Series IV policies, there are two Fixed Accounts available, a one-year and a three-year Fixed Account. For Series I, III, IV, V and VI, subsequent premium payments are allocated to the Investment Divisions, one year Fixed Account, three year Fixed Account (where available), and/or Dollar Cost Averaging Plan Accounts (where available) at the close of the Business Day they are received. For Series II policies, formerly known as LifeStages(R) Access Variable Annuity, subsequent premium payments are not permitted for policies purchased prior to November 15, 2004. For Series II policies, formerly known as MainStay Access Variable Annuity, subsequent premium payments are not permitted. In those states where NYLIAC offers a single premium version of the Series III and VI policies, only one premium payment is allowed. In those states where NYLIAC offers a modified version of the Series IV and V policies, subsequent premium payments are allowed only during the first policy year. In addition, for Series I, II, III, V and VI policies, the policyowner has the option to transfer amounts between the Investment Divisions of the Separate Account and the Fixed Account of NYLIAC subject to certain restrictions. For Series IV policies, the policyowner has the option to transfer amounts between the Investment divisions of the Separate Account and the one-year Fixed Account of NYLIAC. On the accompanying statement of changes in net assets, all references to the Fixed Account include the Fixed Account and the Dollar Cost Averaging Advantage Accounts. No Federal income tax is payable on investment income or capital gains of the Separate Account under current Federal income tax law. Security Valuation--The investments are valued at the net asset value of shares of the respective Fund portfolios. Security Transactions--Realized gains and losses from security transactions are reported on the identified cost basis. Security transactions are accounted for as of the date the securities are purchased or sold (trade date). Distributions Received--Dividend income and capital gain distributions are recorded on the ex-dividend date and reinvested in the corresponding portfolio. ------- (1) Formerly MainStay VP Basic Value--Initial Class (2) The MainStay VP Income & Growth--Initial Class portfolio merged with and into the MainStay VP ICAP Select Equity--Initial Class portfolio on August 17, 2007. (3) New allocations to Alger American Small Capitalization--Class O Shares investment division will not be accepted from policyowners who were not invested in the investment division as of June 1, 2007. (4) Formerly MainStay VP Basic Value--Service Class (5) The MainStay VP Income & Growth--Service Class portfolio merged with and into the MainStay VP ICAP Select Equity--Service Class portfolio on August 17, 2007. (6) New allocations to Alger American Small Capitalization--Class S Shares investment division will not be accepted from policyowners who were not invested in the investment division as of June 1, 2007. F-43 NOTES TO FINANCIAL STATEMENTS (CONTINUED) NOTE 1--Organization and Accounting Policies (Continued): -------------------------------------------------------------------------------- In September 2006, the FASB issued SFAS No. 157, "Fair Value Measurements." This Statement defines fair value, establishes a framework for measuring fair value in GAAP, and expands disclosures around fair value measurements. The application of this Statement could change current practices in determining fair value. The guidance in SFAS No. 157 will be applied prospectively with certain exceptions. This statement is effective January 1, 2008, at which time the Company plans to adopt this guidance. The Company is currently evaluating the impact of SFAS No. 157 on the Company's consolidated financial statements. The amounts shown as net receivable (payable) to NYLIAC on the Statement of Assets and Liabilities reflect transactions that occurred on the last business day of the reporting period. These amounts will be deposited to or withdrawn from the separate account in accordance with the policyowners' instructions on the first business day subsequent to the close of the period presented. The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates. F-44 NYLIAC VARIABLE ANNUITY SEPARATE ACCOUNT-III (THIS PAGE INTENTIONALLY LEFT BLANK) F-45 NOTES TO FINANCIAL STATEMENTS (CONTINUED) NOTE 2--Investments (in 000's): -------------------------------------------------------------------------------- At December 31, 2007, the investments of the Separate Account are as follows:
MAINSTAY VP MAINSTAY VP CAPITAL MAINSTAY VP MAINSTAY VP BOND-- APPRECIATION-- CASH COMMON STOCK-- INITIAL CLASS INITIAL CLASS MANAGEMENT INITIAL CLASS -------------------------------------------------------------------- Number of shares....... 11,254 8,188 281,370 9,289 Identified cost........ $154,354 $207,867 $281,364 $194,120
MAINSTAY VP MAINSTAY VP MAINSTAY VP MAINSTAY VP LARGE CAP MID CAP MID CAP MID CAP GROWTH-- CORE-- GROWTH-- VALUE-- INITIAL CLASS INITIAL CLASS INITIAL CLASS INITIAL CLASS -------------------------------------------------------------------- Number of shares....... 4,872 4,696 5,983 9,781 Identified cost........ $60,779 $62,135 $70,282 $109,068
Investment activity for the year ended December 31, 2007 was as follows:
MAINSTAY VP MAINSTAY VP CAPITAL MAINSTAY VP MAINSTAY VP BOND-- APPRECIATION-- CASH COMMON STOCK-- INITIAL CLASS INITIAL CLASS MANAGEMENT INITIAL CLASS -------------------------------------------------------------------- Purchases.............. $13,781 $ 2,213 $247,637 $22,078 Proceeds from sales.... 31,535 61,087 150,101 56,828
MAINSTAY VP MAINSTAY VP MAINSTAY VP MAINSTAY VP LARGE CAP MID CAP MID CAP MID CAP GROWTH-- CORE-- GROWTH-- VALUE-- INITIAL CLASS INITIAL CLASS INITIAL CLASS INITIAL CLASS -------------------------------------------------------------------- Purchases.............. $ 4,936 $11,629 $11,944 $16,829 Proceeds from sales.... 16,040 14,964 22,301 31,139
Not all investment divisions are available under all policies. F-46 NYLIAC VARIABLE ANNUITY SEPARATE ACCOUNT-III --------------------------------------------------------------------------------
MAINSTAY VP MAINSTAY VP HIGH YIELD MAINSTAY VP MAINSTAY VP MAINSTAY VP MAINSTAY VP DEVELOPING MAINSTAY VP CORPORATE ICAP SELECT INCOME & INTERNATIONAL CONVERTIBLE-- GROWTH-- GOVERNMENT-- BOND-- EQUITY-- GROWTH-- EQUITY-- INITIAL CLASS INITIAL CLASS INITIAL CLASS INITIAL CLASS INITIAL CLASS INITIAL CLASS INITIAL CLASS -------------------------------------------------------------------------------------------------------------------------- 12,123 1,986 10,064 50,671 6,711 -- 6,822 $129,024 $20,879 $109,935 $474,105 $85,369 $-- $101,500
ALGER MAINSTAY VP MAINSTAY VP AMERICAN SMALL CVS CALVERT DREYFUS IP S&P 500 SMALL CAP MAINSTAY VP MAINSTAY VP CAPITALIZA- SOCIAL TECHNOLOGY INDEX-- GROWTH-- TOTAL RETURN-- VALUE-- TION-- BALANCED GROWTH-- INITIAL CLASS INITIAL CLASS INITIAL CLASS INITIAL CLASS CLASS O SHARES PORTFOLIO INITIAL SHARES -------------------------------------------------------------------------------------------------------------------------- 14,564 3,914 8,436 10,961 2,359 21,011 1,741 $372,165 $38,512 $152,787 $171,445 $40,649 $38,616 $15,484
MAINSTAY VP MAINSTAY VP HIGH YIELD MAINSTAY VP MAINSTAY VP MAINSTAY VP MAINSTAY VP DEVELOPING MAINSTAY VP CORPORATE ICAP SELECT INCOME & INTERNATIONAL CONVERTIBLE-- GROWTH-- GOVERNMENT-- BOND-- EQUITY-- GROWTH-- EQUITY-- INITIAL CLASS INITIAL CLASS INITIAL CLASS INITIAL CLASS INITIAL CLASS INITIAL CLASS INITIAL CLASS -------------------------------------------------------------------------------------------------------------------------- $12,005 $7,587 $12,401 $ 53,503 $55,857 $ 9,254 $23,350 35,335 7,391 29,490 141,693 15,534 51,401 29,322
ALGER MAINSTAY VP MAINSTAY VP AMERICAN SMALL CVS CALVERT DREYFUS IP S&P 500 SMALL CAP MAINSTAY VP MAINSTAY VP CAPITALIZA- SOCIAL TECHNOLOGY INDEX-- GROWTH-- TOTAL RETURN-- VALUE-- TION-- BALANCED GROWTH-- INITIAL CLASS INITIAL CLASS INITIAL CLASS INITIAL CLASS CLASS O SHARES PORTFOLIO INITIAL SHARES -------------------------------------------------------------------------------------------------------------------------- $ 11,795 $ 4,331 $15,458 $24,356 $ 2,008 $5,876 $2,333 116,872 13,930 38,580 48,182 24,114 8,954 5,433
F-47 NOTES TO FINANCIAL STATEMENTS (CONTINUED) NOTE 2--Investments (in 000's) (Continued): --------------------------------------------------------------------------------
JANUS ASPEN FIDELITY(R) FIDELITY(R) JANUS ASPEN SERIES VIP VIP SERIES WORLDWIDE CONTRA- EQUITY- BALANCED-- GROWTH-- FUND(R)-- INCOME-- INSTITUTIONAL INSTITUTIONAL INITIAL CLASS INITIAL CLASS SHARES SHARES -------------------------------------------------------------------- Number of shares....... 14,486 8,161 13,442 4,849 Identified cost........ $367,698 $186,564 $315,309 $167,740
VAN KAMPEN UIF EMERGING VAN ECK MARKETS WORLDWIDE EQUITY-- HARD ASSETS CLASS I -------------------------------- Number of shares....... 10,339 5,246 Identified cost........ $292,706 $78,373
JANUS ASPEN FIDELITY(R) FIDELITY(R) JANUS ASPEN SERIES VIP VIP SERIES WORLDWIDE CONTRA- EQUITY- BALANCED-- GROWTH-- FUND(R)-- INCOME-- INSTITUTIONAL INSTITUTIONAL INITIAL CLASS INITIAL CLASS SHARES SHARES -------------------------------------------------------------------- Purchases.............. $109,534 $25,345 $ 14,212 $ 3,331 Proceeds from sales.... 86,076 48,385 107,918 45,592
VAN KAMPEN UIF EMERGING VAN ECK MARKETS WORLDWIDE HARD EQUITY-- ASSETS CLASS I -------------------------------- Purchases.............. $117,146 $31,743 Proceeds from sales.... 50,883 34,337
Not all investment divisions are available under all policies. F-48 NYLIAC VARIABLE ANNUITY SEPARATE ACCOUNT-III --------------------------------------------------------------------------------
NEUBERGER MFS(R) BERMAN ROYCE ROYCE INVESTORS MFS(R) MFS(R) AMT MID-CAP MICRO-CAP SMALL-CAP T. ROWE PRICE TRUST RESEARCH UTILITIES GROWTH PORTFOLIO-- PORTFOLIO-- EQUITY SERIES-- SERIES-- SERIES-- PORTFOLIO-- INVESTMENT INVESTMENT INCOME INITIAL CLASS INITIAL CLASS INITIAL CLASS CLASS I CLASS CLASS PORTFOLIO -------------------------------------------------------------------------------------------------------------------------- 995 1,309 185 257 4,707 4,305 8,217 $17,209 $18,871 $4,893 $4,609 $67,563 $45,334 $168,470
NEUBERGER MFS(R) BERMAN ROYCE ROYCE INVESTORS MFS(R) MFS(R) AMT MID-CAP MICRO-CAP SMALL-CAP T. ROWE PRICE TRUST RESEARCH UTILITIES GROWTH PORTFOLIO-- PORTFOLIO-- EQUITY SERIES-- SERIES-- SERIES-- PORTFOLIO-- INVESTMENT INVESTMENT INCOME INITIAL CLASS INITIAL CLASS INITIAL CLASS CLASS I CLASS CLASS PORTFOLIO -------------------------------------------------------------------------------------------------------------------------- $1,470 $ 738 $2,066 $ 398 $32,124 $18,683 $21,038 6,748 10,075 2,060 1,679 9,679 5,627 46,948
F-49 NOTES TO FINANCIAL STATEMENTS (CONTINUED) NOTE 2--Investments (in 000's) (Continued): --------------------------------------------------------------------------------
MAINSTAY VP MAINSTAY VP MAINSTAY VP MAINSTAY VP CAPITAL COMMON BALANCED-- BOND-- APPRECIATION-- STOCK-- SERVICE CLASS SERVICE CLASS SERVICE CLASS SERVICE CLASS -------------------------------------------------------------------- Number of shares............ 12,702 7,499 1,918 2,662 Identified cost............. $137,233 $101,459 $41,447 $57,586
MAINSTAY VP MAINSTAY VP MAINSTAY VP MAINSTAY VP ICAP SELECT INCOME & INTERNATIONAL LARGE CAP EQUITY-- GROWTH-- EQUITY-- GROWTH-- SERVICE CLASS SERVICE CLASS SERVICE CLASS SERVICE CLASS -------------------------------------------------------------------- Number of shares............ 7,454 -- 11,120 3,355 Identified cost............. $101,715 $-- $179,521 $41,157
MAINSTAY VP MAINSTAY VP MAINSTAY VP MAINSTAY VP CAPITAL COMMON BALANCED-- BOND-- APPRECIATION-- STOCK-- SERVICE CLASS SERVICE CLASS SERVICE CLASS SERVICE CLASS -------------------------------------------------------------------- Purchases................... $34,912 $29,428 $ 4,542 $16,924 Proceeds from sales......... 21,882 11,343 10,446 5,894
MAINSTAY VP MAINSTAY VP MAINSTAY VP MAINSTAY VP ICAP SELECT INCOME & INTERNATIONAL LARGE CAP EQUITY-- GROWTH-- EQUITY-- GROWTH-- SERVICE CLASS SERVICE CLASS SERVICE CLASS SERVICE CLASS -------------------------------------------------------------------- Purchases................... $76,567 $10,824 $64,467 $17,557 Proceeds from sales......... 6,672 38,081 19,108 5,210
Not all investment divisions are available under all policies. F-50 NYLIAC VARIABLE ANNUITY SEPARATE ACCOUNT-III --------------------------------------------------------------------------------
MAINSTAY VP MAINSTAY VP MAINSTAY VP MAINSTAY VP MAINSTAY VP HIGH YIELD CONSERVATIVE MAINSTAY VP DEVELOPING FLOATING MAINSTAY VP GROWTH CORPORATE ALLOCATION-- CONVERTIBLE-- GROWTH-- RATE-- GOVERNMENT-- ALLOCATION-- BOND-- SERVICE CLASS SERVICE CLASS SERVICE CLASS SERVICE CLASS SERVICE CLASS SERVICE CLASS SERVICE CLASS ------------------------------------------------------------------------------------------------------------------------------ 10,689 8,827 2,711 21,612 6,255 7,258 46,784 $116,083 $103,769 $30,536 $212,357 $67,398 $81,499 $468,735
MAINSTAY VP MAINSTAY VP MAINSTAY VP MAINSTAY VP MAINSTAY VP MODERATE MAINSTAY VP MAINSTAY VP MID CAP MID CAP MID CAP MODERATE GROWTH S&P 500 SMALL CAP CORE-- GROWTH-- VALUE-- ALLOCATION-- ALLOCATION-- INDEX-- GROWTH-- SERVICE CLASS SERVICE CLASS SERVICE CLASS SERVICE CLASS SERVICE CLASS SERVICE CLASS SERVICE CLASS ------------------------------------------------------------------------------------------------------------------------------ 7,894 9,655 12,493 16,331 17,414 7,820 6,230 $113,122 $123,840 $156,112 $178,169 $192,615 $191,945 $66,277
MAINSTAY VP MAINSTAY VP MAINSTAY VP MAINSTAY VP MAINSTAY VP HIGH YIELD CONSERVATIVE MAINSTAY VP DEVELOPING FLOATING MAINSTAY VP GROWTH CORPORATE ALLOCATION-- CONVERTIBLE-- GROWTH-- RATE-- GOVERNMENT-- ALLOCATION-- BOND-- SERVICE CLASS SERVICE CLASS SERVICE CLASS SERVICE CLASS SERVICE CLASS SERVICE CLASS SERVICE CLASS ------------------------------------------------------------------------------------------------------------------------------ $82,734 $23,736 $14,245 $109,837 $19,901 $49,398 $102,804 11,383 9,115 4,927 76,046 7,954 7,691 36,350
MAINSTAY VP MAINSTAY VP MAINSTAY VP MAINSTAY VP MAINSTAY VP MODERATE MAINSTAY VP MAINSTAY VP MID CAP MID CAP MID CAP MODERATE GROWTH S&P 500 SMALL CAP CORE-- GROWTH-- VALUE-- ALLOCATION-- ALLOCATION-- INDEX-- GROWTH-- SERVICE CLASS SERVICE CLASS SERVICE CLASS SERVICE CLASS SERVICE CLASS SERVICE CLASS SERVICE CLASS ------------------------------------------------------------------------------------------------------------------------------ $36,972 $29,723 $34,623 $103,069 $106,346 $25,592 $11,395 14,410 16,576 17,289 14,259 11,090 24,503 9,720
F-51 NOTES TO FINANCIAL STATEMENTS (CONTINUED) NOTE 2--Investments (in 000's) (Continued): --------------------------------------------------------------------------------
COLUMBIA ALGER SMALL CAP AMERICAN SMALL VALUE FUND, MAINSTAY VP MAINSTAY VP CAPITALIZA- VARIABLE TOTAL RETURN-- VALUE-- TION-- SERIES-- SERVICE CLASS SERVICE CLASS CLASS S SHARES CLASS B -------------------------------------------------------------------- Number of shares............ 2,599 5,648 1,957 2,772 Identified cost............. $44,256 $98,956 $46,034 $53,794
NEUBERGER BERMAN MFS(R) MFS(R) AMT MID-CAP RESEARCH UTILITIES GROWTH T. ROWE PRICE SERIES-- SERIES-- PORTFOLIO-- EQUITY INCOME SERVICE CLASS SERVICE CLASS CLASS S PORTFOLIO-II -------------------------------------------------------------------- Number of shares............ 528 15,675 1,248 9,255 Identified cost............. $8,522 $407,530 $29,933 $208,425
COLUMBIA ALGER SMALL CAP AMERICAN SMALL VALUE FUND, MAINSTAY VP MAINSTAY VP CAPITALIZA- VARIABLE TOTAL RETURN-- VALUE-- TION-- SERIES-- SERVICE CLASS SERVICE CLASS CLASS S SHARES CLASS B -------------------------------------------------------------------- Purchases................... $8,096 $26,001 $6,988 $18,158 Proceeds from sales......... 7,045 12,073 9,010 12,099
NEUBERGER BERMAN MFS(R) MFS(R) AMT MID-CAP RESEARCH UTILITIES GROWTH T. ROWE PRICE SERIES-- SERIES-- PORTFOLIO-- EQUITY INCOME SERVICE CLASS SERVICE CLASS CLASS S PORTFOLIO-II -------------------------------------------------------------------- Purchases................... $2,203 $169,757 $19,440 $51,744 Proceeds from sales......... 1,559 27,601 7,590 17,411
Not all investment divisions are available under all policies. F-52 NYLIAC VARIABLE ANNUITY SEPARATE ACCOUNT-III --------------------------------------------------------------------------------
FIDELITY(R) FIDELITY(R) VIP VIP FIDELITY(R) JANUS ASPEN MFS(R) DREYFUS IP CONTRA- EQUITY- VIP JANUS ASPEN SERIES INVESTORS TECHNOLOGY FUND(R)-- INCOME-- MID CAP-- SERIES WORLDWIDE TRUST GROWTH-- SERVICE CLASS SERVICE CLASS SERVICE CLASS BALANCED-- GROWTH-- SERIES-- SERVICE SHARES 2 2 2 SERVICE SHARES SERVICE SHARES SERVICE CLASS -------------------------------------------------------------------------------------------------------------------------- 2,791 12,650 7,555 6,161 3,836 1,089 344 $24,471 $361,575 $186,412 $193,606 $99,783 $30,820 $6,642
VAN KAMPEN VICTORY UIF EMERGING VIF MARKETS DIVERSIFIED EQUITY-- STOCK-- CLASS II CLASS A SHARES -------------------------------- 6,289 1,943 $111,222 $23,633
FIDELITY(R) FIDELITY(R) VIP VIP FIDELITY(R) JANUS ASPEN MFS(R) DREYFUS IP CONTRA- EQUITY- VIP JANUS ASPEN SERIES INVESTORS TECHNOLOGY FUND(R)-- INCOME-- MID CAP-- SERIES WORLDWIDE TRUST GROWTH-- SERVICE CLASS SERVICE CLASS SERVICE CLASS BALANCED-- GROWTH-- SERIES-- SERVICE SHARES 2 2 2 SERVICE SHARES SERVICE SHARES SERVICE CLASS -------------------------------------------------------------------------------------------------------------------------- $5,366 $140,873 $52,451 $47,330 $19,279 $8,292 $1,441 4,424 17,656 13,363 29,823 9,792 4,546 805
VAN KAMPEN VICTORY UIF EMERGING VIF MARKETS DIVERSIFIED EQUITY-- STOCK-- CLASS II CLASS A SHARES -------------------------------- $55,792 $7,386 19,973 4,873
F-53 NOTES TO FINANCIAL STATEMENTS (CONTINUED) NOTE 3--Expenses and Related Party Transactions: -------------------------------------------------------------------------------- NYLIAC deducts a surrender charge on certain partial withdrawals and surrenders of Series I, III, IV, V, and VI policies formerly known as LifeStages(R) and MainStay. For New York Life Variable Annuity and New York Life Plus Variable Annuity policies which are part of Series I, the percentage of the surrender charge varies, depending upon the length of time a premium payment is in the policy before it is withdrawn. This charge is 7% during the first three payment years and declines 1% per year for each additional payment year, until the sixth payment year, after which no charge is made. For New York Life Flexible Premium Variable Annuity policies, which are also part of Series I, this charge is 7% for the first three policy years and declines to 1% per year for each additional policy year, until the ninth policy year, after which no charge is made. For New York Life Premium Plus Variable Annuity policies, which are part of Series III and New York Life Premium Plus II Variable Annuity policies, which are part of Series VI, the percentage of the surrender charge varies, depending upon the length of time a premium payment is in the policy before it is withdrawn. This charge is 8% during the first three payment years (8% during the first four payment years for policies sold by registered representatives of broker-dealers that have selling agreements with NYLIFE Distributors and NYLIAC or banks) and declines 1% per year for each additional payment year, until the eighth payment year, after which no charge is made. In those states where NYLIAC offers a single premium version of the New York Life Premium Plus Variable Annuity and New York Life Premium Plus II Variable Annuity, there is a lower surrender charge. For the New York Life Essentials Variable Annuity and New York Life Plus II Variable Annuity policies, which are part of Series IV, the percentage of the surrender charge varies, depending upon the length of time a premium payment is in the policy before it is withdrawn. This charge is 7% during the first three payment years, 6% during the fourth and fifth payment years and declines 1% per year for each additional payment year, until the seventh payment year, after which no charge is made. For New York Life Select Variable Annuity policies, which are part of Series V, the percentage of the surrender charge varies, depending upon the length of time a premium payment is in the policy before it is withdrawn. This charge is 8% during the first two payment years and declines to 7% for the third payment year, after which no charge is made. All surrender charges are recorded with policyowners' surrenders in the accompanying statement of changes in net assets. Surrender charges are paid to NYLIAC. NYLIAC also deducts an annual policy service charge on each policy anniversary date and upon surrender, if on the policy anniversary and/or date of surrender the accumulation value is less than $20,000 for Series I policies, $50,000 for Series II and IV policies and $100,000 for Series III, V and VI policies. For New York Life Variable Annuity and New York Life Plus Variable Annuity policies which are part of Series I, this charge is the lesser of $30 or 2% of the accumulation value per policy. For New York Life Flexible Premium Variable Annuity, which is also part of Series I, this charge is $30 per policy. For Series II policies, this charge is $40 per policy (may be lower in some states). For Series III, IV, and VI policies, this charge is $30 per policy. For Series V policies, this charge is $50 per policy. These charges are shown as a reduction to payments received from policyowners in the accompanying statement of changes in net assets. Additionally, NYLIAC reserves the right to charge Series I, II, III, IV, V and VI policies $30 for each transfer in excess of 12 in any one policy year, subject to certain restrictions. The Separate Account is charged for administrative services provided and the mortality and expense risks assumed by NYLIAC. For Series I, II, III, IV, V and VI policies, these charges are made daily at an annual rate of 1.40%, 1.55%, 1.60%, 1.45%, 1.85% and 1.75%, respectively of the daily average variable accumulation value of each Investment Division. The amounts of these charges retained in the Investment Divisions represent funds of NYLIAC. Accordingly, NYLIAC participates in the results of each Investment Division ratably with the policyowners. These charges are disclosed in the accompanying statement of operations. -------------------------------------------------------------------------------- NOTE 4--Distribution of Net Income: -------------------------------------------------------------------------------- The Separate Account does not expect to declare dividends to policyowners from accumulated net investment income and realized gains. The income and gains are distributed to policyowners as part of withdrawals of amounts (in the form of surrenders, death benefits, transfers, or annuity payments) in excess of the net premium payments. F-54 NYLIAC VARIABLE ANNUITY SEPARATE ACCOUNT-III (THIS PAGE INTENTIONALLY LEFT BLANK) F-55 NOTES TO FINANCIAL STATEMENTS (CONTINUED) NOTE 5--Unit Transactions (in 000's): -------------------------------------------------------------------------------- The changes in units outstanding for the years ended December 31, 2007 and 2006 were as follows:
MAINSTAY VP MAINSTAY VP CAPITAL BOND-- APPRECIATION-- INITIAL CLASS INITIAL CLASS ------------------ ------------------ 2007 2006 2007 2006 ---------------------------------------- SERIES I POLICIES Units Issued.......................... 117 110 144 202 Units Redeemed........................ (1,181) (2,022) (2,735) (3,697) ------ ------ ------ ------ Net Increase (Decrease)............. (1,064) (1,912) (2,591) (3,495) ====== ====== ====== ====== SERIES II POLICIES Units Issued.......................... 16 -- -- -- Units Redeemed........................ (21) (16) (16) (48) ------ ------ ------ ------ Net Increase (Decrease)............. (5) (16) (16) (48) ====== ====== ====== ====== SERIES III POLICIES Units Issued.......................... 116 43 21 41 Units Redeemed........................ (300) (633) (416) (673) ------ ------ ------ ------ Net Increase (Decrease)............. (184) (590) (395) (632) ====== ====== ====== ====== SERIES IV POLICIES Units Issued.......................... 18 26 23 13 Units Redeemed........................ (61) (170) (152) (137) ------ ------ ------ ------ Net Increase (Decrease)............. (43) (144) (129) (124) ====== ====== ====== ====== SERIES V POLICIES Units Issued.......................... 2 -- -- 1 Units Redeemed........................ (6) (4) -- (2) ------ ------ ------ ------ Net Increase (Decrease)............. (4) (4) -- (1) ====== ====== ====== ====== SERIES VI POLICIES Units Issued.......................... -- -- -- -- Units Redeemed........................ -- -- -- -- ------ ------ ------ ------ Net Increase (Decrease)............. -- -- -- -- ====== ====== ====== ======
Not all investment divisions are available under all policies. F-56 NYLIAC VARIABLE ANNUITY SEPARATE ACCOUNT-III --------------------------------------------------------------------------------
MAINSTAY VP MAINSTAY VP MAINSTAY VP COMMON MAINSTAY VP DEVELOPING CASH STOCK-- CONVERTIBLE-- GROWTH-- MANAGEMENT INITIAL CLASS INITIAL CLASS INITIAL CLASS ------------------ ------------------ ------------------ ------------------ 2007 2006 2007 2006 2007 2006 2007 2006 ------------------------------------------------------------------------------------ 51,819 22,980 83 114 91 96 122 38 (33,484) (33,846) (1,669) (2,005) (1,288) (1,432) (236) (258) ------- ------- ------ ------ ------ ------ ---- ---- 18,335 (10,866) (1,586) (1,891) (1,197) (1,336) (114) (220) ======= ======= ====== ====== ====== ====== ==== ==== 9,841 4,683 5 -- 7 4 -- 2 (2,977) (3,121) (15) (38) (26) (19) (3) (5) ------- ------- ------ ------ ------ ------ ---- ---- 6,864 1,562 (10) (38) (19) (15) (3) (3) ======= ======= ====== ====== ====== ====== ==== ==== 42,524 9,974 30 39 62 55 104 54 (11,800) (7,442) (549) (427) (223) (454) (54) (51) ------- ------- ------ ------ ------ ------ ---- ---- 30,724 2,532 (519) (388) (161) (399) 50 3 ======= ======= ====== ====== ====== ====== ==== ==== 17,473 23,484 8 19 19 19 10 4 (3,027) (16,940) (60) (94) (81) (125) (7) (19) ------- ------- ------ ------ ------ ------ ---- ---- 14,446 6,544 (52) (75) (62) (106) 3 (15) ======= ======= ====== ====== ====== ====== ==== ==== 3,326 1,996 1 3 1 21 6 1 (2,299) (1,105) (2) (19) (7) (6) -- (1) ------- ------- ------ ------ ------ ------ ---- ---- 1,027 891 (1) (16) (6) 15 6 -- ======= ======= ====== ====== ====== ====== ==== ==== 11,263 5,740 -- -- -- -- -- -- (2,888) (2,435) -- -- -- -- -- -- ------- ------- ------ ------ ------ ------ ---- ---- 8,375 3,305 -- -- -- -- -- -- ======= ======= ====== ====== ====== ====== ==== ====
F-57 NOTES TO FINANCIAL STATEMENTS (CONTINUED) NOTE 5--Unit Transactions (in 000's) (Continued): --------------------------------------------------------------------------------
MAINSTAY VP HIGH YIELD MAINSTAY VP CORPORATE GOVERNMENT-- BOND-- INITIAL CLASS INITIAL CLASS ------------------ ------------------ 2007 2006 2007 2006 ---------------------------------------- SERIES I POLICIES Units Issued.......................... 73 117 205 269 Units Redeemed........................ (1,067) (1,713) (3,974) (4,718) ------ ------ ------ ------ Net Increase (Decrease)............. (994) (1,596) (3,769) (4,449) ====== ====== ====== ====== SERIES II POLICIES Units Issued.......................... -- -- 16 60 Units Redeemed........................ (14) (29) (111) (41) ------ ------ ------ ------ Net Increase (Decrease)............. (14) (29) (95) 19 ====== ====== ====== ====== SERIES III POLICIES Units Issued.......................... 14 11 137 127 Units Redeemed........................ (259) (562) (823) (937) ------ ------ ------ ------ Net Increase (Decrease)............. (245) (551) (686) (810) ====== ====== ====== ====== SERIES IV POLICIES Units Issued.......................... 11 11 35 44 Units Redeemed........................ (121) (200) (335) (456) ------ ------ ------ ------ Net Increase (Decrease)............. (110) (189) (300) (412) ====== ====== ====== ====== SERIES V POLICIES Units Issued.......................... 2 1 2 2 Units Redeemed........................ (6) (9) (31) (26) ------ ------ ------ ------ Net Increase (Decrease)............. (4) (8) (29) (24) ====== ====== ====== ====== SERIES VI POLICIES Units Issued.......................... -- -- -- -- Units Redeemed........................ -- -- -- -- ------ ------ ------ ------ Net Increase (Decrease)............. -- -- -- -- ====== ====== ====== ======
Not all investment divisions are available under all policies. F-58 NYLIAC VARIABLE ANNUITY SEPARATE ACCOUNT-III --------------------------------------------------------------------------------
MAINSTAY VP MAINSTAY VP MAINSTAY VP MAINSTAY VP ICAP SELECT INCOME & INTERNATIONAL LARGE CAP EQUITY-- GROWTH-- EQUITY-- GROWTH-- INITIAL CLASS INITIAL CLASS INITIAL CLASS INITIAL CLASS ------------------ ------------------ ------------------ ------------------ 2007 2006 2007 2006 2007 2006 2007 2006 ------------------------------------------------------------------------------------ 2,644 102 33 50 227 744 84 75 (690) (366) (2,868) (851) (597) (585) (788) (933) ----- ---- ------ ---- ---- ---- ---- ---- 1,954 (264) (2,835) (801) (370) 159 (704) (858) ===== ==== ====== ==== ==== ==== ==== ==== 27 2 11 6 18 37 3 -- (6) (9) (27) (23) (24) (13) (6) (17) ----- ---- ------ ---- ---- ---- ---- ---- 21 (7) (16) (17) (6) 24 (3) (17) ===== ==== ====== ==== ==== ==== ==== ==== 797 103 1 32 102 504 68 51 (205) (96) (877) (105) (204) (99) (149) (143) ----- ---- ------ ---- ---- ---- ---- ---- 592 7 (876) (73) (102) 405 (81) (92) ===== ==== ====== ==== ==== ==== ==== ==== 187 28 1 7 37 93 25 10 (29) (17) (188) (20) (25) (32) (24) (23) ----- ---- ------ ---- ---- ---- ---- ---- 158 11 (187) (13) 12 61 1 (13) ===== ==== ====== ==== ==== ==== ==== ==== 2 -- -- 1 1 77 12 3 -- (17) (2) (4) (91) (8) (2) (3) ----- ---- ------ ---- ---- ---- ---- ---- 2 (17) (2) (3) (90) 69 10 -- ===== ==== ====== ==== ==== ==== ==== ==== -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- ----- ---- ------ ---- ---- ---- ---- ---- -- -- -- -- -- -- -- -- ===== ==== ====== ==== ==== ==== ==== ====
F-59 NOTES TO FINANCIAL STATEMENTS (CONTINUED) NOTE 5--Unit Transactions (in 000's) (Continued): --------------------------------------------------------------------------------
MAINSTAY VP MAINSTAY VP MID CAP MID CAP CORE-- GROWTH-- INITIAL CLASS INITIAL CLASS ------------------ ------------------ 2007 2006 2007 2006 ---------------------------------------- SERIES I POLICIES Units Issued.......................... 71 75 75 142 Units Redeemed........................ (408) (403) (843) (766) ---- ---- ---- ---- Net Increase (Decrease)............. (337) (328) (768) (624) ==== ==== ==== ==== SERIES II POLICIES Units Issued.......................... 1 7 1 1 Units Redeemed........................ (8) (1) (7) (9) ---- ---- ---- ---- Net Increase (Decrease)............. (7) 6 (6) (8) ==== ==== ==== ==== SERIES III POLICIES Units Issued.......................... 13 26 10 47 Units Redeemed........................ (183) (192) (202) (427) ---- ---- ---- ---- Net Increase (Decrease)............. (170) (166) (192) (380) ==== ==== ==== ==== SERIES IV POLICIES Units Issued.......................... 7 11 10 21 Units Redeemed........................ (22) (51) (57) (93) ---- ---- ---- ---- Net Increase (Decrease)............. (15) (40) (47) (72) ==== ==== ==== ==== SERIES V POLICIES Units Issued.......................... -- -- 1 -- Units Redeemed........................ -- (1) -- (1) ---- ---- ---- ---- Net Increase (Decrease)............. -- (1) 1 (1) ==== ==== ==== ==== SERIES VI POLICIES Units Issued.......................... -- -- -- -- Units Redeemed........................ -- -- -- -- ---- ---- ---- ---- Net Increase (Decrease)............. -- -- -- -- ==== ==== ==== ====
Not all investment divisions are available under all policies. F-60 NYLIAC VARIABLE ANNUITY SEPARATE ACCOUNT-III --------------------------------------------------------------------------------
MAINSTAY VP MAINSTAY VP MAINSTAY VP MID CAP S&P 500 SMALL CAP MAINSTAY VP VALUE-- INDEX-- GROWTH-- TOTAL RETURN-- INITIAL CLASS INITIAL CLASS INITIAL CLASS INITIAL CLASS ------------------ ------------------ ---------------- ---------------- 2007 2006 2007 2006 2007 2006 2007 2006 -------------------------------------------------------------------------------- 109 137 174 225 45 64 83 91 (1,179) (1,364) (3,252) (4,076) (749) (681) (1,569) (1,993) ------ ------ ------ ------ ---- ---- ------ ------ (1,070) (1,227) (3,078) (3,851) (704) (617) (1,486) (1,902) ====== ====== ====== ====== ==== ==== ====== ====== 3 -- 4 -- -- 2 -- -- (13) (14) (23) (67) (5) (20) (5) (19) ------ ------ ------ ------ ---- ---- ------ ------ (10) (14) (19) (67) (5) (18) (5) (19) ====== ====== ====== ====== ==== ==== ====== ====== 28 46 96 138 10 24 10 31 (525) (471) (1,814) (1,192) (309) (216) (307) (317) ------ ------ ------ ------ ---- ---- ------ ------ (497) (425) (1,718) (1,054) (299) (192) (297) (286) ====== ====== ====== ====== ==== ==== ====== ====== 16 23 30 28 5 12 3 7 (82) (129) (177) (207) (64) (99) (70) (54) ------ ------ ------ ------ ---- ---- ------ ------ (66) (106) (147) (179) (59) (87) (67) (47) ====== ====== ====== ====== ==== ==== ====== ====== -- -- 1 1 1 -- -- -- (2) (6) (1) (14) (1) (2) -- (21) ------ ------ ------ ------ ---- ---- ------ ------ (2) (6) -- (13) -- (2) -- (21) ====== ====== ====== ====== ==== ==== ====== ====== -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- ------ ------ ------ ------ ---- ---- ------ ------ -- -- -- -- -- -- -- -- ====== ====== ====== ====== ==== ==== ====== ======
F-61 NOTES TO FINANCIAL STATEMENTS (CONTINUED) NOTE 5--Unit Transactions (in 000's) (Continued): --------------------------------------------------------------------------------
ALGER MAINSTAY VP AMERICAN SMALL VALUE-- CAPITALIZATION-- INITIAL CLASS CLASS O SHARES ------------------ ------------------ 2007 2006 2007 2006 ---------------------------------------- SERIES I POLICIES Units Issued.................... 89 111 64 116 Units Redeemed.................. (1,458) (1,438) (1,231) (881) ------ ------ ------ ---- Net Increase (Decrease)....... (1,369) (1,327) (1,167) (765) ====== ====== ====== ==== SERIES II POLICIES Units Issued.................... 32 -- 1 5 Units Redeemed.................. (16) (26) (9) (16) ------ ------ ------ ---- Net Increase (Decrease)....... 16 (26) (8) (11) ====== ====== ====== ==== SERIES III POLICIES Units Issued.................... 30 46 29 103 Units Redeemed.................. (446) (343) (328) (129) ------ ------ ------ ---- Net Increase (Decrease)....... (416) (297) (299) (26) ====== ====== ====== ==== SERIES IV POLICIES Units Issued.................... 13 19 3 7 Units Redeemed.................. (115) (98) (26) (9) ------ ------ ------ ---- Net Increase (Decrease)....... (102) (79) (23) (2) ====== ====== ====== ==== SERIES V POLICIES Units Issued.................... 1 -- -- -- Units Redeemed.................. (1) (6) (1) (3) ------ ------ ------ ---- Net Increase (Decrease)....... -- (6) (1) (3) ====== ====== ====== ==== SERIES VI POLICIES Units Issued.................... -- -- -- -- Units Redeemed.................. -- -- -- -- ------ ------ ------ ---- Net Increase (Decrease)....... -- -- -- -- ====== ====== ====== ====
Not all investment divisions are available under all policies. F-62 NYLIAC VARIABLE ANNUITY SEPARATE ACCOUNT-III --------------------------------------------------------------------------------
FIDELITY(R) CVS CALVERT DREYFUS IP FIDELITY(R) VIP SOCIAL TECHNOLOGY VIP EQUITY- BALANCED GROWTH-- CONTRAFUND(R)-- INCOME-- PORTFOLIO INITIAL SHARES INITIAL CLASS INITIAL CLASS ------------------ ------------------ ------------------ ------------------ 2007 2006 2007 2006 2007 2006 2007 2006 ------------------------------------------------------------------------------------ 57 63 22 29 137 241 103 118 (268) (331) (241) (168) (2,445) (2,227) (1,613) (1,428) ---- ---- ---- ---- ------ ------ ------ ------ (211) (268) (219) (139) (2,308) (1,986) (1,510) (1,310) ==== ==== ==== ==== ====== ====== ====== ====== 6 9 -- 13 40 28 7 23 (4) (4) (3) (1) (35) (24) (9) (12) ---- ---- ---- ---- ------ ------ ------ ------ 2 5 (3) 12 5 4 (2) 11 ==== ==== ==== ==== ====== ====== ====== ====== 27 45 19 12 108 151 51 149 (120) (189) (68) (137) (464) (336) (349) (237) ---- ---- ---- ---- ------ ------ ------ ------ (93) (144) (49) (125) (356) (185) (298) (88) ==== ==== ==== ==== ====== ====== ====== ====== 27 51 -- 3 67 82 15 30 (46) (21) (22) (33) (75) (72) (87) (40) ---- ---- ---- ---- ------ ------ ------ ------ (19) 30 (22) (30) (8) 10 (72) (10) ==== ==== ==== ==== ====== ====== ====== ====== 3 3 1 1 1 7 5 6 (7) (5) -- (1) (11) (16) (16) (31) ---- ---- ---- ---- ------ ------ ------ ------ (4) (2) 1 -- (10) (9) (11) (25) ==== ==== ==== ==== ====== ====== ====== ====== 19 44 -- -- -- -- -- -- (31) (9) -- -- -- -- -- -- ---- ---- ---- ---- ------ ------ ------ ------ (12) 35 -- -- -- -- -- -- ==== ==== ==== ==== ====== ====== ====== ======
F-63 NOTES TO FINANCIAL STATEMENTS (CONTINUED) NOTE 5--Unit Transactions (in 000's) (Continued): --------------------------------------------------------------------------------
JANUS ASPEN JANUS ASPEN SERIES SERIES WORLDWIDE BALANCED-- GROWTH-- INSTITUTIONAL INSTITUTIONAL SHARES SHARES ------------------ ------------------ 2007 2006 2007 2006 ---------------------------------------- SERIES I POLICIES Units Issued.......................... 172 211 125 163 Units Redeemed........................ (3,629) (4,393) (2,060) (2,699) ------ ------ ------ ------ Net Increase (Decrease)............. (3,457) (4,182) (1,935) (2,536) ====== ====== ====== ====== SERIES II POLICIES Units Issued.......................... 11 6 -- 1 Units Redeemed........................ (14) (61) (42) (36) ------ ------ ------ ------ Net Increase (Decrease)............. (3) (55) (42) (35) ====== ====== ====== ====== SERIES III POLICIES Units Issued.......................... 68 59 26 24 Units Redeemed........................ (773) (855) (190) (284) ------ ------ ------ ------ Net Increase (Decrease)............. (705) (796) (164) (260) ====== ====== ====== ====== SERIES IV POLICIES Units Issued.......................... 31 23 5 11 Units Redeemed........................ (222) (191) (54) (64) ------ ------ ------ ------ Net Increase (Decrease)............. (191) (168) (49) (53) ====== ====== ====== ====== SERIES V POLICIES Units Issued.......................... 5 3 2 -- Units Redeemed........................ (14) (27) (1) (5) ------ ------ ------ ------ Net Increase (Decrease)............. (9) (24) 1 (5) ====== ====== ====== ====== SERIES VI POLICIES Units Issued.......................... -- -- -- -- Units Redeemed........................ -- -- -- -- ------ ------ ------ ------ Net Increase (Decrease)............. -- -- -- -- ====== ====== ====== ======
Not all investment divisions are available under all policies. F-64 NYLIAC VARIABLE ANNUITY SEPARATE ACCOUNT-III --------------------------------------------------------------------------------
NEUBERGER MFS(R) BERMAN INVESTORS MFS(R) MFS(R) AMT MID CAP TRUST RESEARCH UTILITIES GROWTH SERIES-- SERIES-- SERIES-- PORTFOLIO-- INITIAL CLASS INITIAL CLASS INITIAL CLASS CLASS I ------------------ ------------------ ------------------ ------------------ 2007 2006 2007 2006 2007 2006 2007 2006 ------------------------------------------------------------------------------------ 22 16 18 27 21 9 -- 19 (412) (412) (662) (714) (27) (99) (46) (57) ---- ---- ---- ---- --- --- --- --- (390) (396) (644) (687) (6) (90) (46) (38) ==== ==== ==== ==== === === === === 3 -- -- 1 2 2 1 -- (10) (4) (9) (4) (2) -- (1) (1) ---- ---- ---- ---- --- --- --- --- (7) (4) (9) (3) -- 2 -- (1) ==== ==== ==== ==== === === === === 12 6 9 12 14 55 1 4 (68) (125) (109) (96) (26) (47) (26) (24) ---- ---- ---- ---- --- --- --- --- (56) (119) (100) (84) (12) 8 (25) (20) ==== ==== ==== ==== === === === === 3 3 1 3 -- 1 -- 2 (14) (12) (8) (15) (2) (1) (6) (5) ---- ---- ---- ---- --- --- --- --- (11) (9) (7) (12) (2) -- (6) (3) ==== ==== ==== ==== === === === === -- -- -- -- -- -- -- -- -- (2) -- (2) -- (1) (1) (4) ---- ---- ---- ---- --- --- --- --- -- (2) -- (2) -- (1) (1) (4) ==== ==== ==== ==== === === === === -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- ---- ---- ---- ---- --- --- --- --- -- -- -- -- -- -- -- -- ==== ==== ==== ==== === === === ===
F-65 NOTES TO FINANCIAL STATEMENTS (CONTINUED) NOTE 5--Unit Transactions (in 000's) (Continued): --------------------------------------------------------------------------------
ROYCE ROYCE MICRO-CAP SMALL-CAP PORTFOLIO-- PORTFOLIO-- INVESTMENT INVESTMENT CLASS CLASS ------------------ ------------------ 2007 2006 2007 2006 ---------------------------------------- SERIES I POLICIES Units Issued.......................... 451 976 277 580 Units Redeemed........................ (149) (84) (106) (60) ---- --- ---- --- Net Increase (Decrease)............. 302 892 171 520 ==== === ==== === SERIES II POLICIES Units Issued.......................... 69 43 71 31 Units Redeemed........................ (25) (3) (8) (97) ---- --- ---- --- Net Increase (Decrease)............. 44 40 63 (66) ==== === ==== === SERIES III POLICIES Units Issued.......................... 175 607 209 361 Units Redeemed........................ (72) (21) (38) (19) ---- --- ---- --- Net Increase (Decrease)............. 103 586 171 342 ==== === ==== === SERIES IV POLICIES Units Issued.......................... 526 648 332 429 Units Redeemed........................ (36) (17) (27) (19) ---- --- ---- --- Net Increase (Decrease)............. 490 631 305 410 ==== === ==== === SERIES V POLICIES Units Issued.......................... 52 27 18 21 Units Redeemed........................ (6) (1) (4) (1) ---- --- ---- --- Net Increase (Decrease)............. 46 26 14 20 ==== === ==== === SERIES VI POLICIES Units Issued.......................... 239 447 212 274 Units Redeemed........................ (84) (16) (35) (17) ---- --- ---- --- Net Increase (Decrease)............. 155 431 177 257 ==== === ==== ===
Not all investment divisions are available under all policies. F-66 NYLIAC VARIABLE ANNUITY SEPARATE ACCOUNT-III --------------------------------------------------------------------------------
VAN KAMPEN T. ROWE PRICE UIF EMERGING EQUITY VAN ECK MARKETS INCOME WORLDWIDE EQUITY-- PORTFOLIO HARD ASSETS CLASS I ------------------ ------------------ ------------------ 2007 2006 2007 2006 2007 2006 -------------------------------------------------------------- 109 161 618 882 50 463 (1,738) (1,736) (390) (426) (547) (434) ------ ------ ---- ---- ---- ---- (1,629) (1,575) 228 456 (497) 29 ====== ====== ==== ==== ==== ==== 26 18 126 68 9 7 (23) (11) (32) (9) (41) (3) ------ ------ ---- ---- ---- ---- 3 7 94 59 (32) 4 ====== ====== ==== ==== ==== ==== 60 76 349 642 37 217 (587) (362) (468) (209) (99) (87) ------ ------ ---- ---- ---- ---- (527) (286) (119) 433 (62) 130 ====== ====== ==== ==== ==== ==== 25 20 554 702 5 34 (108) (80) (101) (73) (11) (14) ------ ------ ---- ---- ---- ---- (83) (60) 453 629 (6) 20 ====== ====== ==== ==== ==== ==== 1 5 31 39 3 2 (18) (24) (13) (2) (2) (2) ------ ------ ---- ---- ---- ---- (17) (19) 18 37 1 -- ====== ====== ==== ==== ==== ==== -- -- 448 503 -- -- -- -- (87) (50) -- -- ------ ------ ---- ---- ---- ---- -- -- 361 453 -- -- ====== ====== ==== ==== ==== ====
F-67 NOTES TO FINANCIAL STATEMENTS (CONTINUED) NOTE 5--Unit Transactions (in 000's) (Continued): --------------------------------------------------------------------------------
MAINSTAY VP MAINSTAY VP MAINSTAY VP CAPITAL BALANCED-- BOND-- APPRECIATION-- SERVICE CLASS SERVICE CLASS SERVICE CLASS ------------------ ------------------ ------------------ 2007 2006 2007 2006 2007 2006 -------------------------------------------------------------- SERIES I POLICIES Units Issued........... 612 1,382 330 272 103 150 Units Redeemed......... (969) (386) (74) (85) (74) (79) ---- ----- ---- ---- ---- ---- Net Increase (Decrease)........ (357) 996 256 187 29 71 ==== ===== ==== ==== ==== ==== SERIES II POLICIES Units Issued........... 120 189 319 61 36 16 Units Redeemed......... (58) (53) (29) (13) (6) (5) ---- ----- ---- ---- ---- ---- Net Increase (Decrease)........ 62 136 290 48 30 11 ==== ===== ==== ==== ==== ==== SERIES III POLICIES Units Issued........... 416 923 297 301 39 88 Units Redeemed......... (157) (110) (149) (348) (216) (203) ---- ----- ---- ---- ---- ---- Net Increase (Decrease)........ 259 813 148 (47) (177) (115) ==== ===== ==== ==== ==== ==== SERIES IV POLICIES Units Issued........... 647 972 534 442 50 116 Units Redeemed......... (124) (111) (157) (229) (138) (131) ---- ----- ---- ---- ---- ---- Net Increase (Decrease)........ 523 861 377 213 (88) (15) ==== ===== ==== ==== ==== ==== SERIES V POLICIES Units Issued........... 33 70 91 38 6 1 Units Redeemed......... (18) (33) (28) (20) (13) (2) ---- ----- ---- ---- ---- ---- Net Increase (Decrease)........ 15 37 63 18 (7) (1) ==== ===== ==== ==== ==== ==== SERIES VI POLICIES Units Issued........... 413 852 534 183 60 108 Units Redeemed......... (295) (152) (153) (101) (217) (166) ---- ----- ---- ---- ---- ---- Net Increase (Decrease)........ 118 700 381 82 (157) (58) ==== ===== ==== ==== ==== ====
Not all investment divisions are available under all policies. (a) For the period February 13, 2006 (Commencement of Investments) through December 31, 2006. F-68 NYLIAC VARIABLE ANNUITY SEPARATE ACCOUNT-III --------------------------------------------------------------------------------
MAINSTAY VP MAINSTAY VP MAINSTAY VP COMMON CONSERVATIVE MAINSTAY VP DEVELOPING STOCK-- ALLOCATION-- CONVERTIBLE-- GROWTH-- SERVICE CLASS SERVICE CLASS SERVICE CLASS SERVICE CLASS ------------------ ------------------ ------------------ ------------------ 2007 2006 2007 2006(A) 2007 2006 2007 2006 ------------------------------------------------------------------------------------ 132 147 1,753 1,712 210 244 107 98 (49) (24) (355) (100) (66) (101) (19) (17) --- ---- ----- ----- ---- ---- --- --- 83 123 1,398 1,612 144 143 88 81 === ==== ===== ===== ==== ==== === === 52 32 786 214 185 95 65 10 (2) (3) (86) (35) (16) (16) (3) (2) --- ---- ----- ----- ---- ---- --- --- 50 29 700 179 169 79 62 8 === ==== ===== ===== ==== ==== === === 105 152 1,501 938 246 294 91 91 (94) (112) (135) (19) (148) (247) (23) (69) --- ---- ----- ----- ---- ---- --- --- 11 40 1,366 919 98 47 68 22 === ==== ===== ===== ==== ==== === === 271 185 1,270 688 330 398 108 86 (74) (87) (45) (7) (171) (169) (24) (49) --- ---- ----- ----- ---- ---- --- --- 197 98 1,225 681 159 229 84 37 === ==== ===== ===== ==== ==== === === 13 9 174 109 43 29 17 3 (6) (3) (19) (18) (19) (22) (3) (2) --- ---- ----- ----- ---- ---- --- --- 7 6 155 91 24 7 14 1 === ==== ===== ===== ==== ==== === === 137 167 1,374 842 288 280 161 68 (53) (31) (97) (5) (95) (153) (18) (12) --- ---- ----- ----- ---- ---- --- --- 84 136 1,277 837 193 127 143 56 === ==== ===== ===== ==== ==== === ===
F-69 NOTES TO FINANCIAL STATEMENTS (CONTINUED) NOTE 5--Unit Transactions (in 000's) (Continued): --------------------------------------------------------------------------------
MAINSTAY VP MAINSTAY VP MAINSTAY VP GROWTH FLOATING RATE-- GOVERNMENT-- ALLOCATION-- SERVICE CLASS SERVICE CLASS SERVICE CLASS ------------------ ------------------ ------------------ 2007 2006 2007 2006 2007 2006(A) -------------------------------------------------------------- SERIES I POLICIES Units Issued........... 1,555 3,048 245 209 1,371 1,570 Units Redeemed......... (3,107) (359) (60) (85) (264) (46) ------ ----- ---- ---- ----- ----- Net Increase (Decrease)........ (1,552) 2,689 185 124 1,107 1,524 ====== ===== ==== ==== ===== ===== SERIES II POLICIES Units Issued........... 1,035 735 147 26 108 53 Units Redeemed......... (449) (311) (12) (14) (23) -- ------ ----- ---- ---- ----- ----- Net Increase (Decrease)........ 586 424 135 12 85 53 ====== ===== ==== ==== ===== ===== SERIES III POLICIES Units Issued........... 1,415 2,766 180 206 774 656 Units Redeemed......... (487) (115) (148) (160) (51) (10) ------ ----- ---- ---- ----- ----- Net Increase (Decrease)........ 928 2,651 32 46 723 646 ====== ===== ==== ==== ===== ===== SERIES IV POLICIES Units Issued........... 1,899 2,444 287 308 637 1,008 Units Redeemed......... (344) (143) (113) (159) (30) (9) ------ ----- ---- ---- ----- ----- Net Increase (Decrease)........ 1,555 2,301 174 149 607 999 ====== ===== ==== ==== ===== ===== SERIES V POLICIES Units Issued........... 188 244 120 48 37 64 Units Redeemed......... (194) (90) (22) (13) (15) -- ------ ----- ---- ---- ----- ----- Net Increase (Decrease)........ (6) 154 98 35 22 64 ====== ===== ==== ==== ===== ===== SERIES VI POLICIES Units Issued........... 1,133 1,383 386 178 783 522 Units Redeemed......... (411) (117) (58) (48) (42) (11) ------ ----- ---- ---- ----- ----- Net Increase (Decrease)........ 722 1,266 328 130 741 511 ====== ===== ==== ==== ===== =====
Not all investment divisions are available under all policies. (a) For the period February 13, 2006 (Commencement of Investments) through December 31, 2006. F-70 NYLIAC VARIABLE ANNUITY SEPARATE ACCOUNT-III --------------------------------------------------------------------------------
MAINSTAY VP MAINSTAY VP MAINSTAY VP HIGH YIELD ICAP SELECT MAINSTAY VP INTERNATIONAL CORPORATE BOND-- EQUITY-- INCOME & GROWTH-- EQUITY-- SERVICE CLASS SERVICE CLASS SERVICE CLASS SERVICE CLASS ------------------ ------------------ ------------------ ------------------ 2007 2006 2007 2006 2007 2006 2007 2006 ------------------------------------------------------------------------------------ 1,064 1,083 792 99 59 103 536 512 (331) (349) (39) (18) (431) (33) (69) (42) ------ ------ ----- --- ---- --- ---- --- 733 734 753 81 (372) 70 467 470 ====== ====== ===== === ==== === ==== === 850 405 328 27 23 25 290 129 (196) (95) (15) (3) (74) (4) (90) (13) ------ ------ ----- --- ---- --- ---- --- 654 310 313 24 (51) 21 200 116 ====== ====== ===== === ==== === ==== === 1,235 1,320 1,097 126 45 77 512 606 (1,156) (979) (101) (46) (686) (58) (232) (81) ------ ------ ----- --- ---- --- ---- --- 79 341 996 80 (641) 19 280 525 ====== ====== ===== === ==== === ==== === 1,701 1,726 1,257 199 66 97 779 988 (711) (1,080) (63) (30) (700) (53) (200) (93) ------ ------ ----- --- ---- --- ---- --- 990 646 1,194 169 (634) 44 579 895 ====== ====== ===== === ==== === ==== === 136 133 98 19 3 16 81 59 (238) (126) (25) (8) (60) (3) (25) (6) ------ ------ ----- --- ---- --- ---- --- (102) 7 73 11 (57) 13 56 53 ====== ====== ===== === ==== === ==== === 1,388 1,524 1,096 179 51 101 674 923 (645) (775) (97) (18) (610) (88) (402) (56) ------ ------ ----- --- ---- --- ---- --- 743 749 999 161 (559) 13 272 867 ====== ====== ===== === ==== === ==== ===
F-71 NOTES TO FINANCIAL STATEMENTS (CONTINUED) NOTE 5--Unit Transactions (in 000's) (Continued): --------------------------------------------------------------------------------
MAINSTAY VP MAINSTAY VP MAINSTAY VP LARGE CAP GROWTH-- MID CAP CORE-- MID CAP GROWTH-- SERVICE CLASS SERVICE CLASS SERVICE CLASS ------------------ ------------------ ------------------ 2007 2006 2007 2006 2007 2006 -------------------------------------------------------------- SERIES I POLICIES Units Issued........... 190 170 251 285 223 348 Units Redeemed......... (23) (29) (61) (39) (97) (118) --- --- ---- ---- ---- ---- Net Increase (Decrease)........ 167 141 190 246 126 230 === === ==== ==== ==== ==== SERIES II POLICIES Units Issued........... 58 20 126 57 76 51 Units Redeemed......... (6) (1) (14) (11) (18) (27) --- --- ---- ---- ---- ---- Net Increase (Decrease)........ 52 19 112 46 58 24 === === ==== ==== ==== ==== SERIES III POLICIES Units Issued........... 228 187 192 245 134 234 Units Redeemed......... (53) (43) (157) (98) (204) (248) --- --- ---- ---- ---- ---- Net Increase (Decrease)........ 175 144 35 147 (70) (14) === === ==== ==== ==== ==== SERIES IV POLICIES Units Issued........... 298 366 330 391 204 434 Units Redeemed......... (41) (29) (83) (84) (231) (168) --- --- ---- ---- ---- ---- Net Increase (Decrease)........ 257 337 247 307 (27) 266 === === ==== ==== ==== ==== SERIES V POLICIES Units Issued........... 28 15 28 27 13 13 Units Redeemed......... (7) (3) (27) (7) (21) (13) --- --- ---- ---- ---- ---- Net Increase (Decrease)........ 21 12 1 20 (8) -- === === ==== ==== ==== ==== SERIES VI POLICIES Units Issued........... 366 219 255 299 272 394 Units Redeemed......... (39) (18) (166) (106) (93) (348) --- --- ---- ---- ---- ---- Net Increase (Decrease)........ 327 201 89 193 179 46 === === ==== ==== ==== ====
Not all investment divisions are available under all policies. (a) For the period February 13, 2006 (Commencement of Investments) through December 31, 2006. F-72 NYLIAC VARIABLE ANNUITY SEPARATE ACCOUNT-III --------------------------------------------------------------------------------
MAINSTAY VP MAINSTAY VP MODERATE MAINSTAY VP MODERATE GROWTH MAINSTAY VP MAINSTAY VP MID CAP VALUE-- ALLOCATION-- ALLOCATION-- S&P 500 INDEX-- SMALL CAP GROWTH-- SERVICE CLASS SERVICE CLASS SERVICE CLASS SERVICE CLASS SERVICE CLASS ------------------ ------------------ ------------------ ------------------ ------------------ 2007 2006 2007 2006(A) 2007 2006(A) 2007 2006 2007 2006 ---------------------------------------------------------------------------------------------------------- 310 388 2,528 2,885 2,881 3,285 565 719 144 215 (104) (104) (604) (105) (455) (91) (258) (240) (84) (88) ---- ---- ----- ----- ----- ----- ---- ---- ---- ---- 206 284 1,924 2,780 2,426 3,194 307 479 60 127 ==== ==== ===== ===== ===== ===== ==== ==== ==== ==== 129 78 560 225 285 378 163 76 28 16 (24) (19) (27) (10) (45) (25) (14) (11) (3) (3) ---- ---- ----- ----- ----- ----- ---- ---- ---- ---- 105 59 533 215 240 353 149 65 25 13 ==== ==== ===== ===== ===== ===== ==== ==== ==== ==== 209 360 1,640 2,045 1,578 2,321 330 468 55 168 (392) (330) (108) (20) (133) (31) (820) (617) (218) (202) ---- ---- ----- ----- ----- ----- ---- ---- ---- ---- (183) 30 1,532 2,025 1,445 2,290 (490) (149) (163) (34) ==== ==== ===== ===== ===== ===== ==== ==== ==== ==== 430 630 2,036 1,987 1,691 2,013 493 731 80 219 (215) (297) (108) (25) (100) (32) (437) (300) (137) (164) ---- ---- ----- ----- ----- ----- ---- ---- ---- ---- 215 333 1,928 1,962 1,591 1,981 56 431 (57) 55 ==== ==== ===== ===== ===== ===== ==== ==== ==== ==== 23 28 207 175 106 170 62 44 8 8 (35) (20) (19) (4) (6) (3) (35) (80) (20) (22) ---- ---- ----- ----- ----- ----- ---- ---- ---- ---- (12) 8 188 171 100 167 27 (36) (12) (14) ==== ==== ===== ===== ===== ===== ==== ==== ==== ==== 254 423 1,356 1,564 1,813 1,422 415 556 94 158 (268) (350) (140) (38) (61) (11) (341) (222) (101) (254) ---- ---- ----- ----- ----- ----- ---- ---- ---- ---- (14) 73 1,216 1,526 1,752 1,411 74 334 (7) (96) ==== ==== ===== ===== ===== ===== ==== ==== ==== ====
F-73 NOTES TO FINANCIAL STATEMENTS (CONTINUED) NOTE 5--Unit Transactions (in 000's) (Continued): --------------------------------------------------------------------------------
ALGER AMERICAN MAINSTAY VP MAINSTAY VP SMALL TOTAL RETURN-- VALUE-- CAPITALIZATION-- SERVICE CLASS SERVICE CLASS CLASS S SHARES ------------------ ------------------ ------------------ 2007 2006 2007 2006 2007 2006 -------------------------------------------------------------- SERIES I POLICIES Units Issued........... 100 123 231 282 87 218 Units Redeemed......... (74) (68) (78) (49) (59) (18) ---- ---- ---- ---- ---- --- Net Increase (Decrease)........ 26 55 153 233 28 200 ==== ==== ==== ==== ==== === SERIES II POLICIES Units Issued........... 25 14 118 56 28 24 Units Redeemed......... (5) (1) (12) (4) (5) (6) ---- ---- ---- ---- ---- --- Net Increase (Decrease)........ 20 13 106 52 23 18 ==== ==== ==== ==== ==== === SERIES III POLICIES Units Issued........... 61 109 169 290 55 215 Units Redeemed......... (214) (131) (243) (128) (93) (41) ---- ---- ---- ---- ---- --- Net Increase (Decrease)........ (153) (22) (74) 162 (38) 174 ==== ==== ==== ==== ==== === SERIES IV POLICIES Units Issued........... 56 121 275 422 99 355 Units Redeemed......... (91) (85) (166) (78) (125) (37) ---- ---- ---- ---- ---- --- Net Increase (Decrease)........ (35) 36 109 344 (26) 318 ==== ==== ==== ==== ==== === SERIES V POLICIES Units Issued........... 4 8 28 12 4 6 Units Redeemed......... (7) (7) (12) (3) (12) (1) ---- ---- ---- ---- ---- --- Net Increase (Decrease)........ (3) 1 16 9 (8) 5 ==== ==== ==== ==== ==== === SERIES VI POLICIES Units Issued........... 51 136 256 418 90 261 Units Redeemed......... (88) (127) (241) (54) (99) (22) ---- ---- ---- ---- ---- --- Net Increase (Decrease)........ (37) 9 15 364 (9) 239 ==== ==== ==== ==== ==== ===
Not all investment divisions are available under all policies. F-74 NYLIAC VARIABLE ANNUITY SEPARATE ACCOUNT-III --------------------------------------------------------------------------------
COLUMBIA SMALL CAP DREYFUS IP VALUE FUND, TECHNOLOGY FIDELITY(R) VIP FIDELITY(R) VIP VARIABLE SERIES-- GROWTH-- CONTRAFUND(R)-- EQUITY-INCOME-- CLASS B SERVICE SHARES SERVICE CLASS 2 SERVICE CLASS 2 ------------------ ------------------ ------------------ ------------------ 2007 2006 2007 2006 2007 2006 2007 2006 ------------------------------------------------------------------------------------ 165 655 92 113 729 998 455 541 (166) (84) (43) (33) (151) (93) (93) (79) ---- --- --- --- ----- ----- ---- ---- (1) 571 49 80 578 905 362 462 ==== === === === ===== ===== ==== ==== 88 61 45 5 324 179 254 157 (8) (3) (4) (2) (62) (19) (44) (7) ---- --- --- --- ----- ----- ---- ---- 80 58 41 3 262 160 210 150 ==== === === === ===== ===== ==== ==== 92 489 31 58 619 856 424 374 (210) (24) (51) (76) (461) (149) (133) (133) ---- --- --- --- ----- ----- ---- ---- (118) 465 (20) (18) 158 707 291 241 ==== === === === ===== ===== ==== ==== 233 411 91 131 1,172 1,701 601 693 (40) (26) (85) (34) (281) (176) (176) (117) ---- --- --- --- ----- ----- ---- ---- 193 385 6 97 891 1,525 425 576 ==== === === === ===== ===== ==== ==== 16 35 6 2 116 91 90 97 (9) (1) (10) (1) (52) (13) (122) (27) ---- --- --- --- ----- ----- ---- ---- 7 34 (4) 1 64 78 (32) 70 ==== === === === ===== ===== ==== ==== 146 484 51 67 761 1,095 535 560 (231) (16) (22) (37) (319) (102) (276) (84) ---- --- --- --- ----- ----- ---- ---- (85) 468 29 30 442 993 259 476 ==== === === === ===== ===== ==== ====
F-75 NOTES TO FINANCIAL STATEMENTS (CONTINUED) NOTE 5--Unit Transactions (in 000's) (Continued): --------------------------------------------------------------------------------
FIDELITY(R) JANUS ASPEN JANUS ASPEN SERIES VIP MID CAP-- SERIES BALANCED-- WORLDWIDE GROWTH-- SERVICE CLASS 2 SERVICE SHARES SERVICE SHARES ------------------ ------------------ ------------------ 2007 2006 2007 2006 2007 2006 -------------------------------------------------------------- SERIES I POLICIES Units Issued........... 338 664 253 270 113 110 Units Redeemed......... (578) (411) (108) (71) (44) (50) ---- ---- ---- ---- --- ---- Net Increase (Decrease)........ (240) 253 145 199 69 60 ==== ==== ==== ==== === ==== SERIES II POLICIES Units Issued........... 112 67 114 40 53 5 Units Redeemed......... (25) (5) (5) (11) (1) (1) ---- ---- ---- ---- --- ---- Net Increase (Decrease)........ 87 62 109 29 52 4 ==== ==== ==== ==== === ==== SERIES III POLICIES Units Issued........... 220 327 213 311 66 59 Units Redeemed......... (340) (125) (182) (212) (29) (106) ---- ---- ---- ---- --- ---- Net Increase (Decrease)........ (120) 202 31 99 37 (47) ==== ==== ==== ==== === ==== SERIES IV POLICIES Units Issued........... 448 627 423 350 101 114 Units Redeemed......... (167) (104) (180) (252) (58) (63) ---- ---- ---- ---- --- ---- Net Increase (Decrease)........ 281 523 243 98 43 51 ==== ==== ==== ==== === ==== SERIES V POLICIES Units Issued........... 26 29 77 69 5 6 Units Redeemed......... (50) (15) (33) (27) (14) (1) ---- ---- ---- ---- --- ---- Net Increase (Decrease)........ (24) 14 44 42 (9) 5 ==== ==== ==== ==== === ==== SERIES VI POLICIES Units Issued........... 283 485 173 254 102 82 Units Redeemed......... (206) (144) (103) (90) (24) (46) ---- ---- ---- ---- --- ---- Net Increase (Decrease)........ 77 341 70 164 78 36 ==== ==== ==== ==== === ====
Not all investment divisions are available under all policies. F-76 NYLIAC VARIABLE ANNUITY SEPARATE ACCOUNT-III --------------------------------------------------------------------------------
NEUBERGER BERMAN AMT MID-CAP MFS(R) INVESTORS MFS(R) MFS(R) GROWTH TRUST SERIES-- RESEARCH SERIES-- UTILITIES SERIES-- PORTFOLIO-- SERVICE CLASS SERVICE CLASS SERVICE CLASS CLASS S ------------------ ------------------ ------------------ ------------------ 2007 2006 2007 2006 2007 2006 2007 2006 ------------------------------------------------------------------------------------ 13 13 21 29 1,700 1,688 210 150 (9) (5) (8) (11) (602) (541) (45) (37) --- --- --- --- ----- ----- --- --- 4 8 13 18 1,098 1,147 165 113 === === === === ===== ===== === === 2 6 9 1 454 189 42 4 (1) -- -- (2) (80) (45) (1) (1) --- --- --- --- ----- ----- --- --- 1 6 9 (1) 374 144 41 3 === === === === ===== ===== === === 27 23 28 18 1,236 1,055 185 75 (7) (11) (10) (13) (217) (157) (20) (12) --- --- --- --- ----- ----- --- --- 20 12 18 5 1,019 898 165 63 === === === === ===== ===== === === 24 16 25 31 1,275 1,002 147 116 (4) (8) (23) (15) (168) (127) (17) (12) --- --- --- --- ----- ----- --- --- 20 8 2 16 1,107 875 130 104 === === === === ===== ===== === === 1 2 2 5 137 105 9 4 (1) (1) -- (1) (34) (8) (1) (8) --- --- --- --- ----- ----- --- --- -- 1 2 4 103 97 8 (4) === === === === ===== ===== === === 9 25 16 16 1,341 946 182 73 (11) (7) (9) (12) (216) (258) (15) (6) --- --- --- --- ----- ----- --- --- (2) 18 7 4 1,125 688 167 67 === === === === ===== ===== === ===
F-77 NOTES TO FINANCIAL STATEMENTS (CONTINUED) NOTE 5--Unit Transactions (in 000's) (Continued): --------------------------------------------------------------------------------
VAN KAMPEN UIF VICTORY VIF T. ROWE PRICE EMERGING DIVERSIFIED EQUITY INCOME MARKETS EQUITY-- STOCK-- PORTFOLIO--II CLASS II CLASS A SHARES ------------------ ------------------ ------------------ 2007 2006 2007 2006 2007 2006 -------------------------------------------------------------- SERIES I POLICIES Units Issued........... 432 520 199 243 68 166 Units Redeemed......... (114) (74) (34) (21) (101) (71) ---- ---- ---- --- ---- --- Net Increase (Decrease)........ 318 446 165 222 (33) 95 ==== ==== ==== === ==== === SERIES II POLICIES Units Issued........... 260 138 105 34 27 21 Units Redeemed......... (75) (39) (10) (1) (4) -- ---- ---- ---- --- ---- --- Net Increase (Decrease)........ 185 99 95 33 23 21 ==== ==== ==== === ==== === SERIES III POLICIES Units Issued........... 347 444 197 301 51 65 Units Redeemed......... (476) (183) (67) (36) (15) (10) ---- ---- ---- --- ---- --- Net Increase (Decrease)........ (129) 261 130 265 36 55 ==== ==== ==== === ==== === SERIES IV POLICIES Units Issued........... 864 995 273 377 70 149 Units Redeemed......... (270) (197) (52) (35) (18) (12) ---- ---- ---- --- ---- --- Net Increase (Decrease)........ 594 798 221 342 52 137 ==== ==== ==== === ==== === SERIES V POLICIES Units Issued........... 132 114 24 16 6 26 Units Redeemed......... (104) (27) (13) (2) (9) (1) ---- ---- ---- --- ---- --- Net Increase (Decrease)........ 28 87 11 14 (3) 25 ==== ==== ==== === ==== === SERIES VI POLICIES Units Issued........... 651 691 219 397 31 78 Units Redeemed......... (256) (102) (135) (23) (49) (60) ---- ---- ---- --- ---- --- Net Increase (Decrease)........ 395 589 84 374 (18) 18 ==== ==== ==== === ==== ===
Not all investment divisions are available under all policies. F-78 NYLIAC VARIABLE ANNUITY SEPARATE ACCOUNT-III (THIS PAGE INTENTIONALLY LEFT BLANK) F-79 NOTES TO FINANCIAL STATEMENTS (CONTINUED) NOTE 6--Financial Highlights (Net Assets and Units Outstanding in 000's): -------------------------------------------------------------------------------- The following table presents financial highlights for each Investment Division as of December 31, 2007, 2006, 2005, 2004, and 2003:
MAINSTAY VP BOND--INITIAL CLASS ------------------------------------------------ 2007 2006 2005 2004 2003 ------------------------------------------------ SERIES I POLICIES (a) Net Assets......................... $103,808 $116,353 $143,751 $165,678 $196,827 Units Outstanding.................. 5,935 6,999 8,911 10,346 12,616 Variable Accumulation Unit Value... $ 17.47 $ 16.64 $ 16.14 $ 16.01 $ 15.60 Total Return....................... 5.0% 3.1% 0.8% 2.6% 3.1% Investment Income Ratio............ 3.5% 1.1% 3.0% 3.3% 3.7% SERIES II POLICIES (b) Net Assets......................... $ 936 $ 959 $ 1,139 $ 1,250 $ 1,536 Units Outstanding.................. 66 71 87 96 121 Variable Accumulation Unit Value... $ 14.12 $ 13.46 $ 13.08 $ 13.00 $ 12.68 Total Return....................... 4.9% 2.9% 0.6% 2.5% 2.9% Investment Income Ratio............ 3.4% 1.1% 3.1% 3.2% 3.3% SERIES III POLICIES (c) Net Assets......................... $ 39,600 $ 40,200 $ 46,639 $ 53,616 $ 64,492 Units Outstanding.................. 2,869 3,053 3,643 4,212 5,189 Variable Accumulation Unit Value... $ 13.81 $ 13.17 $ 12.80 $ 12.73 $ 12.43 Total Return....................... 4.8% 2.9% 0.6% 2.4% 2.9% Investment Income Ratio............ 3.7% 1.1% 3.0% 3.3% 4.2% SERIES IV POLICIES (d) Net Assets......................... $ 12,065 $ 11,976 $ 13,277 $ 14,522 $ 17,219 Units Outstanding.................. 971 1,014 1,158 1,276 1,552 Variable Accumulation Unit Value... $ 12.40 $ 11.82 $ 11.47 $ 11.39 $ 11.10 Total Return....................... 5.0% 3.0% 0.7% 2.6% 3.0% Investment Income Ratio............ 3.6% 1.1% 3.1% 3.4% 4.8% SERIES V POLICIES (e) Net Assets......................... $ 208 $ 240 $ 271 $ 274 $ 356 Units Outstanding.................. 17 21 25 25 33 Variable Accumulation Unit Value... $ 11.88 $ 11.36 $ 11.07 $ 11.03 $ 10.80 Total Return....................... 4.6% 2.6% 0.3% 2.2% 2.6% Investment Income Ratio............ 3.4% 1.1% 3.2% 3.2% 4.5% SERIES VI POLICIES (f) Net Assets......................... $ -- $ -- $ -- $ -- $ -- Units Outstanding.................. -- -- -- -- -- Variable Accumulation Unit Value... $ -- $ -- $ -- $ -- $ -- Total Return....................... -- -- -- -- -- Investment Income Ratio............ -- -- -- -- --
Not all investment divisions are available under all policies. Annualized percentages are shown for the Investment Income Ratio for all investment divisions in all periods. Charges and fees levied by NYLIAC are disclosed in Note 3. During the year that an individual division commenced operations, Total Return is calculated from the date of commencement through the end of the year. (a) Expenses as a percent of average variable accumulation value are 1.40%, excluding expenses of the underlying funds, surrender charges, policy service charges and charges for transferring funds between investment divisions. (b) Expenses as a percent of average variable accumulation value are 1.55%, excluding expenses of the underlying funds, policy service charges and charges for transferring funds between investment divisions. (c) Expenses as a percent of average variable accumulation value are 1.60%, excluding expenses of the underlying funds, surrender charges, policy service charges and charges for transferring funds between investment divisions. (d) Expenses as a percent of average variable accumulation value are 1.45%, excluding expenses of the underlying funds, surrender charges, policy service charges and charges for transferring funds between investment divisions. (e) Expenses as a percent of average variable accumulation value are 1.85%, excluding expenses of the underlying funds, surrender charges, policy service charges and charges for transferring funds between investment divisions. (f) Expenses as a percent of average variable accumulation value are 1.75%, excluding expenses of the underlying funds, surrender charges, policy service charges and charges for transferring funds between investment divisions. F-80 NYLIAC VARIABLE ANNUITY SEPARATE ACCOUNT-III --------------------------------------------------------------------------------
MainStay VP MainStay VP Capital Appreciation--Initial Class Cash Management ------------------------------------------------ ------------------------------------------------ 2007 2006 2005 2004 2003 2007 2006 2005 2004 2003 -------------------------------------------------------------------------------------------------- $198,461 $226,445 $282,124 $338,179 $377,779 $121,912 $94,109 $104,359 $125,022 $163,925 9,739 12,330 15,825 20,255 23,240 90,100 71,765 82,631 100,042 130,435 $ 20.37 $ 18.38 $ 17.85 $ 16.70 $ 16.26 $ 1.35 $ 1.31 $ 1.27 $ 1.25 $ 1.26 10.8% 3.0% 6.9% 2.7% 25.2% 3.4% 3.1% 1.5% (0.6%) (0.7%) 0.1% 0.3% -- 0.2% 0.2% 4.7% 4.5% 2.9% 0.8% 0.7% $ 256 $ 344 $ 652 $ 862 $ 976 $ 13,015 $ 5,265 $ 3,519 $ 3,728 $ 3,796 34 50 98 138 160 11,758 4,894 3,332 3,618 3,657 $ 7.61 $ 6.87 $ 6.68 $ 6.26 $ 6.11 $ 1.11 $ 1.08 $ 1.04 $ 1.03 $ 1.04 10.7% 2.8% 6.8% 2.6% 25.0% 3.2% 3.0% 1.4% (0.7%) (0.9%) 0.1% 0.3% -- 0.2% 0.2% 4.7% 4.5% 2.8% 0.8% 0.7% $ 16,543 $ 17,425 $ 20,832 $ 23,810 $ 25,919 $ 79,545 $44,139 $ 41,117 $ 40,778 $ 50,236 2,389 2,784 3,416 4,168 4,651 71,971 41,247 38,715 39,941 48,830 $ 6.93 $ 6.26 $ 6.09 $ 5.71 $ 5.57 $ 1.10 $ 1.06 $ 1.03 $ 1.02 $ 1.03 10.6% 2.8% 6.7% 2.5% 25.0% 3.2% 2.9% 1.3% (0.8%) (0.9%) 0.1% 0.3% -- 0.2% 0.3% 4.7% 4.5% 2.9% 0.8% 0.7% $ 6,849 $ 7,542 $ 8,595 $ 8,988 $ 8,812 $ 42,684 $26,243 $ 19,248 $ 17,481 $ 16,441 586 715 839 937 943 39,964 25,518 18,974 17,751 16,593 $ 11.69 $ 10.55 $ 10.25 $ 9.59 $ 9.34 $ 1.06 $ 1.03 $ 1.00 $ 0.98 $ 0.99 10.8% 2.9% 6.9% 2.7% 25.2% 3.3% 3.1% 1.5% (0.6%) (0.8%) 0.1% 0.3% -- 0.2% 0.3% 4.7% 4.5% 2.9% 0.9% 0.6% $ 8 $ 7 $ 30 $ 58 $ 60 $ 4,304 $ 3,113 $ 2,154 $ 2,339 $ 2,061 1 1 2 5 5 4,102 3,075 2,184 2,397 2,091 $ 14.12 $ 12.80 $ 12.49 $ 11.73 $ 11.47 $ 1.04 $ 1.01 $ 0.99 $ 0.98 $ 0.99 10.3% 2.5% 6.4% 2.2% 24.7% 2.9% 2.7% 1.1% (1.0%) (1.2%) 0.1% 0.3% -- 0.3% 0.3% 4.7% 4.5% 2.9% 0.8% 0.6% $ -- $ -- $ -- $ -- $ -- $ 20,615 $11,521 $ 7,743 $ 9,581 $ 2,868 -- -- -- -- -- 19,513 11,138 7,833 9,734 2,887 $ -- $ -- $ -- $ -- $ -- $ 1.05 $ 1.02 $ 1.00 $ 0.98 $ 0.99 -- -- -- -- -- 3.0% 2.8% 1.2% (0.9%) (0.7%) -- -- -- -- -- 4.7% 4.5% 2.9% 1.0% 0.6%
F-81 NOTES TO FINANCIAL STATEMENTS (CONTINUED) NOTE 6--Financial Highlights (Net Assets and Units Outstanding in 000's) (Continued): --------------------------------------------------------------------------------
MAINSTAY VP COMMON STOCK--INITIAL CLASS ------------------------------------------------ 2007 2006 2005 2004 2003 ------------------------------------------------ SERIES I POLICIES (a) Net Assets......................... $181,427 $217,729 $234,431 $270,485 $278,265 Units Outstanding.................. 6,457 8,043 9,934 12,168 13,689 Variable Accumulation Unit Value... $ 28.11 $ 27.11 $ 23.61 $ 22.23 $ 20.33 Total Return....................... 3.7% 14.9% 6.2% 9.4% 24.6% Investment Income Ratio............ 1.2% 0.5% 0.9% 1.4% 1.0% SERIES II POLICIES (b) Net Assets......................... $ 604 $ 684 $ 902 $ 1,065 $ 1,077 Units Outstanding.................. 62 72 110 137 152 Variable Accumulation Unit Value... $ 9.76 $ 9.43 $ 8.22 $ 7.75 $ 7.10 Total Return....................... 3.5% 14.7% 6.0% 9.2% 24.4% Investment Income Ratio............ 1.2% 0.5% 0.9% 1.4% 0.9% SERIES III POLICIES (c) Net Assets......................... $ 26,757 $ 30,739 $ 30,004 $ 32,680 $ 31,601 Units Outstanding.................. 2,725 3,244 3,632 4,192 4,424 Variable Accumulation Unit Value... $ 9.80 $ 9.47 $ 8.26 $ 7.80 $ 7.14 Total Return....................... 3.5% 14.6% 6.0% 9.1% 24.4% Investment Income Ratio............ 1.2% 0.6% 1.0% 1.4% 1.2% SERIES IV POLICIES (d) Net Assets......................... $ 9,415 $ 9,783 $ 9,394 $ 9,421 $ 8,754 Units Outstanding.................. 678 730 805 856 870 Variable Accumulation Unit Value... $ 13.89 $ 13.41 $ 11.68 $ 11.00 $ 10.07 Total Return....................... 3.6% 14.8% 6.1% 9.3% 24.6% Investment Income Ratio............ 1.3% 0.6% 1.0% 1.4% 1.3% SERIES V POLICIES (e) Net Assets......................... $ 114 $ 121 $ 316 $ 325 $ 247 Units Outstanding.................. 7 8 24 26 22 Variable Accumulation Unit Value... $ 15.44 $ 14.96 $ 13.08 $ 12.38 $ 11.37 Total Return....................... 3.2% 14.4% 5.7% 8.9% 24.1% Investment Income Ratio............ 1.2% 0.3% 1.1% 1.6% 1.6% SERIES VI POLICIES (f) Net Assets......................... $ -- $ -- $ -- $ -- $ -- Units Outstanding.................. -- -- -- -- -- Variable Accumulation Unit Value... $ -- $ -- $ -- $ -- $ -- Total Return....................... -- -- -- -- -- Investment Income Ratio............ -- -- -- -- --
Not all investment divisions are available under all policies. Annualized percentages are shown for the Investment Income Ratio for all investment divisions in all periods. Charges and fees levied by NYLIAC are disclosed in Note 3. During the year that an individual division commenced operations, Total Return is calculated from the date of commencement through the end of the year. (a) Expenses as a percent of average variable accumulation value are 1.40%, excluding expenses of the underlying funds, surrender charges, policy service charges and charges for transferring funds between investment divisions. (b) Expenses as a percent of average variable accumulation value are 1.55%, excluding expenses of the underlying funds, policy service charges and charges for transferring funds between investment divisions. (c) Expenses as a percent of average variable accumulation value are 1.60%, excluding expenses of the underlying funds, surrender charges, policy service charges and charges for transferring funds between investment divisions. (d) Expenses as a percent of average variable accumulation value are 1.45%, excluding expenses of the underlying funds, surrender charges, policy service charges and charges for transferring funds between investment divisions. (e) Expenses as a percent of average variable accumulation value are 1.85%, excluding expenses of the underlying funds, surrender charges, policy service charges and charges for transferring funds between investment divisions. (f) Expenses as a percent of average variable accumulation value are 1.75%, excluding expenses of the underlying funds, surrender charges, policy service charges and charges for transferring funds between investment divisions. F-82 NYLIAC VARIABLE ANNUITY SEPARATE ACCOUNT-III --------------------------------------------------------------------------------
MAINSTAY VP MAINSTAY VP CONVERTIBLE--INITIAL CLASS DEVELOPING GROWTH--INITIAL CLASS ------------------------------------------------ ------------------------------------------------ 2007 2006 2005 2004 2003 2007 2006 2005 2004 2003 -------------------------------------------------------------------------------------------------- $119,531 $129,667 $143,841 $162,933 $169,402 $ 18,278 $14,757 $15,387 $24,385 $25,669 5,245 6,442 7,778 9,263 10,078 1,275 1,389 1,609 2,817 3,094 $ 22.80 $ 20.13 $ 18.49 $ 17.59 $ 16.81 $ 14.26 $ 10.62 $ 9.57 $ 8.66 $ 8.30 13.3% 8.9% 5.1% 4.6% 20.5% 34.2% 11.1% 10.5% 4.4% 36.6% 2.2% 2.2% 1.5% 1.8% 2.4% -- -- -- -- -- $ 1,182 $ 1,254 $ 1,313 $ 1,516 $ 1,599 $ 212 $ 178 $ 188 $ 174 $ 225 92 111 126 153 168 15 18 21 21 28 $ 12.81 $ 11.33 $ 10.42 $ 9.93 $ 9.50 $ 13.58 $ 10.13 $ 9.14 $ 8.28 $ 7.95 13.1% 8.7% 5.0% 4.5% 20.4% 34.0% 10.9% 10.3% 4.2% 36.4% 2.2% 2.2% 1.4% 1.9% 2.0% -- -- -- -- -- $ 35,196 $ 32,850 $ 34,249 $ 41,714 $ 41,469 $ 8,932 $ 6,163 $ 5,528 $ 5,538 $ 5,667 2,876 3,037 3,436 4,391 4,559 656 606 603 666 710 $ 12.24 $ 10.83 $ 9.97 $ 9.50 $ 9.10 $ 13.62 $ 10.17 $ 9.17 $ 8.32 $ 7.99 13.0% 8.7% 4.9% 4.4% 20.3% 33.9% 10.8% 10.3% 4.2% 36.3% 2.3% 2.3% 1.4% 1.9% 2.8% -- -- -- -- -- $ 12,384 $ 11,775 $ 12,116 $ 12,704 $ 12,094 $ 2,147 $ 1,544 $ 1,575 $ 1,530 $ 1,394 819 881 987 1,087 1,083 118 115 130 139 132 $ 15.13 $ 13.36 $ 12.28 $ 11.68 $ 11.17 $ 18.09 $ 13.48 $ 12.15 $ 11.00 $ 10.54 13.2% 8.8% 5.1% 4.6% 20.5% 34.1% 11.0% 10.4% 4.3% 36.5% 2.3% 2.3% 1.5% 1.9% 3.0% -- -- -- -- -- $ 423 $ 464 $ 229 $ 246 $ 193 $ 164 $ 9 $ 15 $ 14 $ 8 26 32 17 19 15 7 1 1 1 1 $ 16.57 $ 14.70 $ 13.56 $ 12.96 $ 12.44 $ 22.17 $ 16.59 $ 15.01 $ 13.64 $ 13.13 12.8% 8.4% 4.7% 4.2% 20.0% 33.6% 10.6% 10.0% 3.9% 31.3% 2.2% 4.8% 1.5% 2.0% 4.1% -- -- -- -- -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- -- -- -- -- -- -- -- -- -- -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- --
F-83 NOTES TO FINANCIAL STATEMENTS (CONTINUED) NOTE 6--Financial Highlights (Net Assets and Units Outstanding in 000's) (Continued): --------------------------------------------------------------------------------
MAINSTAY VP GOVERNMENT--INITIAL CLASS ------------------------------------------------ 2007 2006 2005 2004 2003 ------------------------------------------------ SERIES I POLICIES (a) Net Assets......................... $70,190 $82,614 $105,432 $127,522 $169,701 Units Outstanding.................. 4,166 5,160 6,756 8,248 11,183 Variable Accumulation Unit Value... $ 16.85 $ 16.02 $ 15.61 $ 15.46 $ 15.17 Total Return....................... 5.2% 2.6% 1.0% 1.9% 0.5% Investment Income Ratio............ 4.6% 0.9% 2.9% 3.7% 3.6% SERIES II POLICIES (b) Net Assets......................... $ 579 $ 721 $ 1,063 $ 1,442 $ 1,957 Units Outstanding.................. 43 57 86 117 162 Variable Accumulation Unit Value... $ 13.33 $ 12.69 $ 12.38 $ 12.28 $ 12.07 Total Return....................... 5.0% 2.5% 0.8% 1.7% 0.3% Investment Income Ratio............ 4.3% 0.8% 2.8% 3.7% 2.9% SERIES III POLICIES (c) Net Assets......................... $30,102 $31,736 $ 37,741 $ 46,405 $ 59,899 Units Outstanding.................. 2,290 2,535 3,086 3,823 5,017 Variable Accumulation Unit Value... $ 13.15 $ 12.53 $ 12.23 $ 12.14 $ 11.94 Total Return....................... 5.0% 2.4% 0.8% 1.7% 0.3% Investment Income Ratio............ 4.7% 1.0% 2.8% 3.7% 4.2% SERIES IV POLICIES (d) Net Assets......................... $ 9,360 $10,147 $ 11,975 $ 13,857 $ 17,692 Units Outstanding.................. 783 893 1,082 1,262 1,641 Variable Accumulation Unit Value... $ 11.95 $ 11.36 $ 11.08 $ 10.98 $ 10.78 Total Return....................... 5.1% 2.6% 0.9% 1.8% 0.4% Investment Income Ratio............ 4.7% 0.9% 2.9% 3.7% 4.4% SERIES V POLICIES (e) Net Assets......................... $ 183 $ 217 $ 301 $ 361 $ 508 Units Outstanding.................. 16 20 28 34 48 Variable Accumulation Unit Value... $ 11.48 $ 10.96 $ 10.73 $ 10.68 $ 10.52 Total Return....................... 4.7% 2.1% 0.5% 1.4% -- Investment Income Ratio............ 4.8% 0.9% 2.9% 2.7% 5.0% SERIES VI POLICIES (f) Net Assets......................... $ -- $ -- $ -- $ -- $ -- Units Outstanding.................. -- -- -- -- -- Variable Accumulation Unit Value... $ -- $ -- $ -- $ -- $ -- Total Return....................... -- -- -- -- -- Investment Income Ratio............ -- -- -- -- --
Not all investment divisions are available under all policies. Annualized percentages are shown for the Investment Income Ratio for all investment divisions in all periods. Charges and fees levied by NYLIAC are disclosed in Note 3. During the year that an individual division commenced operations, Total Return is calculated from the date of commencement through the end of the year. (a) Expenses as a percent of average variable accumulation value are 1.40%, excluding expenses of the underlying funds, surrender charges, policy service charges and charges for transferring funds between investment divisions. (b) Expenses as a percent of average variable accumulation value are 1.55%, excluding expenses of the underlying funds, policy service charges and charges for transferring funds between investment divisions. (c) Expenses as a percent of average variable accumulation value are 1.60%, excluding expenses of the underlying funds, surrender charges, policy service charges and charges for transferring funds between investment divisions. (d) Expenses as a percent of average variable accumulation value are 1.45%, excluding expenses of the underlying funds, surrender charges, policy service charges and charges for transferring funds between investment divisions. (e) Expenses as a percent of average variable accumulation value are 1.85%, excluding expenses of the underlying funds, surrender charges, policy service charges and charges for transferring funds between investment divisions. (f) Expenses as a percent of average variable accumulation value are 1.75%, excluding expenses of the underlying funds, surrender charges, policy service charges and charges for transferring funds between investment divisions. F-84 NYLIAC VARIABLE ANNUITY SEPARATE ACCOUNT-III --------------------------------------------------------------------------------
MAINSTAY VP HIGH YIELD MAINSTAY VP CORPORATE BOND--INITIAL CLASS ICAP SELECT EQUITY--INITIAL CLASS ------------------------------------------------ ------------------------------------------------ 2007 2006 2005 2004 2003 2007 2006 2005 2004 2003 -------------------------------------------------------------------------------------------------- $382,936 $475,318 $532,635 $623,762 $617,551 $66,251 $36,095 $33,772 $37,374 $34,701 14,914 18,683 23,132 27,478 30,240 4,594 2,640 2,904 3,342 3,407 $ 25.68 $ 25.46 $ 23.05 $ 22.70 $ 20.42 $ 14.42 $ 13.68 $ 11.63 $ 11.18 $ 10.18 0.9% 10.5% 1.5% 11.2% 34.5% 5.4% 17.6% 4.0% 9.8% 26.2% 6.2% 1.8% 5.5% 6.9% 8.0% 0.6% 0.3% 0.9% 1.0% 0.8% $ 2,223 $ 3,736 $ 3,072 $ 5,698 $ 4,851 $ 583 $ 306 $ 336 $ 395 $ 374 137 232 213 396 375 45 24 31 38 40 $ 16.19 $ 16.07 $ 14.57 $ 14.38 $ 12.95 $ 13.27 $ 12.62 $ 10.74 $ 10.34 $ 9.43 0.7% 10.3% 1.4% 11.0% 34.3% 5.2% 17.5% 3.8% 9.7% 26.0% 5.2% 2.2% 4.3% 7.5% 9.3% 0.6% 0.2% 0.8% 1.0% 0.8% $ 93,011 $103,150 $105,143 $124,365 $118,930 $21,862 $13,419 $11,362 $13,234 $11,630 5,857 6,543 7,353 8,808 9,345 1,672 1,080 1,073 1,296 1,249 $ 15.88 $ 15.77 $ 14.31 $ 14.12 $ 12.73 $ 13.08 $ 12.44 $ 10.59 $ 10.21 $ 9.31 0.7% 10.3% 1.3% 10.9% 34.2% 5.2% 17.4% 3.8% 9.6% 25.9% 6.3% 1.9% 5.6% 7.2% 9.3% 0.6% 0.3% 0.9% 1.0% 1.0% $ 30,072 $ 34,662 $ 37,289 $ 42,153 $ 35,842 $ 6,279 $ 3,829 $ 3,129 $ 3,137 $ 2,835 1,842 2,142 2,554 2,920 2,759 441 283 272 284 281 $ 16.31 $ 16.17 $ 14.65 $ 14.44 $ 12.99 $ 14.23 $ 13.51 $ 11.49 $ 11.06 $ 10.07 0.8% 10.4% 1.5% 11.1% 34.4% 5.3% 17.6% 3.9% 9.8% 26.1% 6.4% 1.9% 5.6% 7.5% 10.4% 0.6% 0.3% 0.9% 1.0% 1.1% $ 418 $ 914 $ 1,179 $ 1,399 $ 1,542 $ 77 $ 42 $ 282 $ 273 $ 46 25 54 78 92 112 4 2 19 19 3 $ 16.99 $ 16.91 $ 15.38 $ 15.22 $ 13.75 $ 18.46 $ 17.60 $ 15.03 $ 14.52 $ 13.28 0.4% 10.0% 1.1% 10.7% 33.9% 4.9% 17.1% 3.5% 9.3% 32.8% 4.7% 1.8% 6.6% 8.8% 11.9% 0.6% -- 1.0% 1.0% 1.8% $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- -- -- -- -- -- -- -- -- -- -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- --
F-85 NOTES TO FINANCIAL STATEMENTS (CONTINUED) NOTE 6--Financial Highlights (Net Assets and Units Outstanding in 000's) (Continued): --------------------------------------------------------------------------------
MAINSTAY VP INCOME & GROWTH--INITIAL CLASS ------------------------------------------------ 2007 2006 2005 2004 2003 ------------------------------------------------ SERIES I POLICIES (a) Net Assets......................... $ -- $37,676 $42,001 $46,438 $44,045 Units Outstanding.................. -- 2,835 3,636 4,151 4,374 Variable Accumulation Unit Value... $-- $ 13.31 $ 11.55 $ 11.19 $ 10.07 Total Return....................... -- 15.2% 3.2% 11.1% 26.9% Investment Income Ratio............ -- 0.6% 1.1% 1.7% 1.4% SERIES II POLICIES (b) Net Assets......................... $-- $ 177 $ 314 $ 316 $ 309 Units Outstanding.................. -- 16 33 34 37 Variable Accumulation Unit Value... $-- $ 10.96 $ 9.52 $ 9.24 $ 8.33 Total Return....................... -- 15.1% 3.1% 10.9% 26.7% Investment Income Ratio............ -- 0.4% 1.1% 1.7% 1.6% SERIES III POLICIES (c) Net Assets......................... $-- $ 9,404 $ 8,863 $ 8,690 $ 7,574 Units Outstanding.................. -- 876 949 959 927 Variable Accumulation Unit Value... $-- $ 10.74 $ 9.34 $ 9.06 $ 8.17 Total Return....................... -- 15.0% 3.0% 10.9% 26.7% Investment Income Ratio............ -- 0.6% 1.2% 1.8% 1.8% SERIES IV POLICIES (d) Net Assets......................... $-- $ 2,554 $ 2,369 $ 2,452 $ 2,018 Units Outstanding.................. -- 187 200 214 195 Variable Accumulation Unit Value... $-- $ 13.64 $ 11.85 $ 11.48 $ 10.34 Total Return....................... -- 15.2% 3.2% 11.0% 26.8% Investment Income Ratio............ -- 0.6% 1.1% 1.8% 1.9% SERIES V POLICIES (e) Net Assets......................... $-- $ 24 $ 66 $ 12 $ 1 Units Outstanding.................. -- 2 5 1 -- Variable Accumulation Unit Value... $-- $ 14.90 $ 13.00 $ 12.65 $ 11.44 Total Return....................... -- 14.6% 2.8% 10.6% 14.4% Investment Income Ratio............ -- 0.3% 1.6% 1.1% 4.2% SERIES VI POLICIES (f) Net Assets......................... $-- $ -- $ -- $ -- $ -- Units Outstanding.................. -- -- -- -- -- Variable Accumulation Unit Value... $-- $ -- $ -- $ -- $ -- Total Return....................... -- -- -- -- -- Investment Income Ratio............ -- -- -- -- --
Not all investment divisions are available under all policies. Annualized percentages are shown for the Investment Income Ratio for all investment divisions in all periods. Charges and fees levied by NYLIAC are disclosed in Note 3. During the year that an individual division commenced operations, Total Return is calculated from the date of commencement through the end of the year. (a) Expenses as a percent of average variable accumulation value are 1.40%, excluding expenses of the underlying funds, surrender charges, policy service charges and charges for transferring funds between investment divisions. (b) Expenses as a percent of average variable accumulation value are 1.55%, excluding expenses of the underlying funds, policy service charges and charges for transferring funds between investment divisions. (c) Expenses as a percent of average variable accumulation value are 1.60%, excluding expenses of the underlying funds, surrender charges, policy service charges and charges for transferring funds between investment divisions. (d) Expenses as a percent of average variable accumulation value are 1.45%, excluding expenses of the underlying funds, surrender charges, policy service charges and charges for transferring funds between investment divisions. (e) Expenses as a percent of average variable accumulation value are 1.85%, excluding expenses of the underlying funds, surrender charges, policy service charges and charges for transferring funds between investment divisions. (f) Expenses as a percent of average variable accumulation value are 1.75%, excluding expenses of the underlying funds, surrender charges, policy service charges and charges for transferring funds between investment divisions. F-86 NYLIAC VARIABLE ANNUITY SEPARATE ACCOUNT-III --------------------------------------------------------------------------------
MAINSTAY VP MAINSTAY VP INTERNATIONAL EQUITY--INITIAL CLASS LARGE CAP GROWTH--INITIAL CLASS ------------------------------------------------ ------------------------------------------------ 2007 2006 2005 2004 2003 2007 2006 2005 2004 2003 -------------------------------------------------------------------------------------------------- $84,428 $90,947 $67,127 $52,910 $34,845 $56,461 $56,353 $63,856 $79,285 $97,271 3,273 3,643 3,484 2,925 2,229 3,618 4,322 5,180 6,615 7,818 $ 25.81 $ 24.94 $ 19.26 $ 18.09 $ 15.63 $ 15.61 $ 13.04 $ 12.33 $ 11.98 $ 12.44 3.5% 29.5% 6.5% 15.7% 28.2% 19.7% 5.7% 2.9% (3.7%) 26.3% 0.6% 0.3% 1.8% 1.1% 2.1% -- 0.1% -- 0.2% 0.2% $ 1,125 $ 1,182 $ 633 $ 577 $ 425 $ 391 $ 339 $ 439 $ 473 $ 633 72 78 54 52 45 44 47 64 71 91 $ 15.66 $ 15.16 $ 11.72 $ 11.02 $ 9.54 $ 8.68 $ 7.27 $ 6.88 $ 6.70 $ 6.96 3.3% 29.3% 6.3% 15.5% 28.0% 19.5% 5.6% 2.7% (3.8%) 26.1% 0.6% 0.3% 1.6% 0.9% 0.4% -- 0.1% -- 0.2% 0.2% $29,445 $30,076 $18,508 $15,214 $10,625 $12,304 $10,746 $10,732 $13,389 $16,377 1,879 1,981 1,576 1,377 1,110 1,654 1,735 1,827 2,343 2,754 $ 15.68 $ 15.18 $ 11.75 $ 11.05 $ 9.57 $ 7.40 $ 6.19 $ 5.87 $ 5.72 $ 5.95 3.3% 29.2% 6.3% 15.5% 27.9% 19.4% 5.5% 2.7% (3.9%) 26.0% 0.6% 0.3% 1.7% 1.1% 2.3% -- 0.1% -- 0.2% 0.2% $ 9,134 $ 8,631 $ 5,810 $ 4,582 $ 3,285 $ 3,646 $ 3,039 $ 3,000 $ 3,497 $ 3,610 490 478 417 351 291 292 291 304 364 362 $ 18.62 $ 18.01 $ 13.91 $ 13.07 $ 11.30 $ 12.48 $ 10.43 $ 9.87 $ 9.60 $ 9.97 3.4% 29.4% 6.4% 15.7% 28.1% 19.6% 5.7% 2.9% (3.7%) 26.2% 0.7% 0.3% 1.8% 1.0% 2.6% -- 0.1% -- 0.2% 0.2% $ 86 $ 1,858 $ 386 $ 375 $ 62 $ 260 $ 101 $ 90 $ 77 $ 48 4 94 25 26 5 17 8 8 7 4 $ 20.26 $ 19.67 $ 15.26 $ 14.39 $ 12.49 $ 14.88 $ 12.49 $ 11.87 $ 11.58 $ 12.08 3.0% 28.9% 6.0% 15.2% 27.6% 19.1% 5.3% 2.4% (4.1%) 25.8% 0.5% 0.8% 1.8% 1.4% 2.1% -- 0.1% -- 0.3% 0.3% $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- -- -- -- -- -- -- -- -- -- -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- --
F-87 NOTES TO FINANCIAL STATEMENTS (CONTINUED) NOTE 6--Financial Highlights (Net Assets and Units Outstanding in 000's) (Continued): --------------------------------------------------------------------------------
MAINSTAY VP MID CAP CORE--INITIAL CLASS ------------------------------------------------ 2007 2006 2005 2004 2003 ------------------------------------------------ SERIES I POLICIES (a) Net Assets......................... $44,024 $48,130 $47,318 $38,315 $24,078 Units Outstanding.................. 2,539 2,876 3,204 2,964 2,245 Variable Accumulation Unit Value... $ 17.34 $ 16.74 $ 14.77 $ 12.92 $ 10.73 Total Return....................... 3.6% 13.4% 14.3% 20.5% 33.6% Investment Income Ratio............ 0.4% -- 0.6% 0.6% 0.5% SERIES II POLICIES (b) Net Assets......................... $ 355 $ 468 $ 313 $ 155 $ 170 Units Outstanding.................. 19 26 20 11 15 Variable Accumulation Unit Value... $ 18.60 $ 17.98 $ 15.89 $ 13.93 $ 11.57 Total Return....................... 3.4% 13.2% 14.1% 20.3% 33.4% Investment Income Ratio............ 0.3% -- 0.7% 0.4% 0.5% SERIES III POLICIES (c) Net Assets......................... $18,072 $20,399 $20,574 $15,820 $11,573 Units Outstanding.................. 1,012 1,182 1,348 1,182 1,040 Variable Accumulation Unit Value... $ 17.85 $ 17.27 $ 15.27 $ 13.39 $ 11.13 Total Return....................... 3.4% 13.1% 14.0% 20.3% 33.3% Investment Income Ratio............ 0.4% -- 0.6% 0.5% 0.6% SERIES IV POLICIES (d) Net Assets......................... $ 7,041 $ 7,055 $ 6,824 $ 5,835 $ 4,278 Units Outstanding.................. 401 416 456 445 393 Variable Accumulation Unit Value... $ 17.55 $ 16.95 $ 14.96 $ 13.10 $ 10.88 Total Return....................... 3.5% 13.3% 14.2% 20.4% 33.5% Investment Income Ratio............ 0.4% -- 0.6% 0.5% 0.5% SERIES V POLICIES (e) Net Assets......................... $ 26 $ 26 $ 27 $ 24 $ 45 Units Outstanding.................. 1 1 2 2 4 Variable Accumulation Unit Value... $ 20.48 $ 19.86 $ 17.60 $ 15.47 $ 12.90 Total Return....................... 3.1% 12.8% 13.7% 20.0% 33.0% Investment Income Ratio............ 0.4% -- 0.5% 0.3% 0.6% SERIES VI POLICIES (f) Net Assets......................... $ -- $ -- $ -- $ -- $ -- Units Outstanding.................. -- -- -- -- -- Variable Accumulation Unit Value... $ -- $ -- $ -- $ -- $ -- Total Return....................... -- -- -- -- -- Investment Income Ratio............ -- -- -- -- --
Not all investment divisions are available under all policies. Annualized percentages are shown for the Investment Income Ratio for all investment divisions in all periods. Charges and fees levied by NYLIAC are disclosed in Note 3. During the year that an individual division commenced operations, Total Return is calculated from the date of commencement through the end of the year. (a) Expenses as a percent of average variable accumulation value are 1.40%, excluding expenses of the underlying funds, surrender charges, policy service charges and charges for transferring funds between investment divisions. (b) Expenses as a percent of average variable accumulation value are 1.55%, excluding expenses of the underlying funds, policy service charges and charges for transferring funds between investment divisions. (c) Expenses as a percent of average variable accumulation value are 1.60%, excluding expenses of the underlying funds, surrender charges, policy service charges and charges for transferring funds between investment divisions. (d) Expenses as a percent of average variable accumulation value are 1.45%, excluding expenses of the underlying funds, surrender charges, policy service charges and charges for transferring funds between investment divisions. (e) Expenses as a percent of average variable accumulation value are 1.85%, excluding expenses of the underlying funds, surrender charges, policy service charges and charges for transferring funds between investment divisions. (f) Expenses as a percent of average variable accumulation value are 1.75%, excluding expenses of the underlying funds, surrender charges, policy service charges and charges for transferring funds between investment divisions. F-88 NYLIAC VARIABLE ANNUITY SEPARATE ACCOUNT-III --------------------------------------------------------------------------------
MAINSTAY VP MAINSTAY VP MID CAP GROWTH--INITIAL CLASS MID CAP VALUE--INITIAL CLASS ------------------------------------------------ ------------------------------------------------ 2007 2006 2005 2004 2003 2007 2006 2005 2004 2003 -------------------------------------------------------------------------------------------------- $60,357 $63,407 $66,803 $54,207 $36,546 $73,160 $90,427 $96,022 $89,742 $65,297 3,847 4,615 5,239 4,905 3,998 5,250 6,320 7,547 7,353 6,201 $ 15.70 $ 13.75 $ 12.76 $ 11.05 $ 9.14 $ 13.95 $ 14.31 $ 12.72 $ 12.20 $ 10.53 14.2% 7.7% 15.5% 20.9% 42.8% (2.5%) 12.5% 4.2% 15.9% 27.2% -- -- -- -- -- 0.9% 0.1% 0.8% 0.9% 1.1% $ 293 $ 365 $ 470 $ 292 $ 198 $ 455 $ 614 $ 715 $ 807 $ 678 15 21 29 21 17 33 43 57 67 65 $ 19.94 $ 17.49 $ 16.26 $ 14.10 $ 11.68 $ 13.76 $ 14.14 $ 12.59 $ 12.10 $ 10.45 14.0% 7.5% 15.3% 20.7% 42.6% (2.7%) 12.3% 4.1% 15.7% 27.0% -- -- -- -- -- 0.9% 0.1% 0.7% 0.9% 1.0% $23,871 $23,626 $26,887 $22,005 $17,706 $34,312 $42,392 $43,214 $40,034 $30,861 1,505 1,697 2,077 1,958 1,901 2,456 2,953 3,378 3,255 2,903 $ 15.87 $ 13.93 $ 12.96 $ 11.24 $ 9.32 $ 13.97 $ 14.36 $ 12.79 $ 12.30 $ 10.63 13.9% 7.5% 15.3% 20.7% 42.5% (2.7%) 12.2% 4.0% 15.7% 26.9% -- -- -- -- -- 0.9% 0.1% 0.8% 0.9% 1.2% $ 9,478 $ 9,021 $ 9,387 $ 7,944 $ 5,924 $12,987 $14,247 $13,991 $13,799 $11,463 553 600 672 657 592 955 1,021 1,127 1,158 1,114 $ 17.15 $ 15.02 $ 13.96 $ 12.09 $ 10.01 $ 13.60 $ 13.96 $ 12.42 $ 11.92 $ 10.29 14.1% 7.7% 15.4% 20.8% 42.7% (2.6%) 12.4% 4.2% 15.9% 27.1% -- -- -- -- -- 1.0% 0.1% 0.8% 0.9% 1.3% $ 44 $ 19 $ 45 $ 106 $ 107 $ 174 $ 212 $ 259 $ 378 $ 302 2 1 2 6 7 13 15 21 32 29 $ 24.45 $ 21.51 $ 20.06 $ 17.45 $ 14.50 $ 13.50 $ 13.91 $ 12.42 $ 11.97 $ 10.37 13.7% 7.2% 15.0% 20.4% 42.1% (3.0%) 12.0% 3.8% 15.4% 26.6% -- -- -- -- -- 0.9% 0.1% 0.6% 0.8% 1.2% $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- -- -- -- -- -- -- -- -- -- -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- --
F-89 NOTES TO FINANCIAL STATEMENTS (CONTINUED) NOTE 6--Financial Highlights (Net Assets and Units Outstanding in 000's) (Continued): --------------------------------------------------------------------------------
MAINSTAY VP S&P 500 INDEX--INITIAL CLASS ------------------------------------------------ 2007 2006 2005 2004 2003 ------------------------------------------------ SERIES I POLICIES (a) Net Assets......................... $356,727 $425,316 $463,829 $533,383 $535,415 Units Outstanding.................. 12,943 16,021 19,872 23,603 25,814 Variable Accumulation Unit Value... $ 27.58 $ 26.58 $ 23.35 $ 22.60 $ 20.74 Total Return....................... 3.8% 13.8% 3.3% 9.0% 26.4% Investment Income Ratio............ 1.5% 0.5% 1.1% 1.5% 1.4% SERIES II POLICIES (b) Net Assets......................... $ 964 $ 1,128 $ 1,578 $ 1,797 $ 1,788 Units Outstanding.................. 93 112 179 210 227 Variable Accumulation Unit Value... $ 10.40 $ 10.04 $ 8.83 $ 8.56 $ 7.87 Total Return....................... 3.6% 13.7% 3.2% 8.8% 26.2% Investment Income Ratio............ 1.5% 0.5% 1.1% 1.5% 1.3% SERIES III POLICIES (c) Net Assets......................... $ 57,128 $ 71,942 $ 72,357 $ 76,899 $ 70,812 Units Outstanding.................. 5,662 7,380 8,434 9,241 9,253 Variable Accumulation Unit Value... $ 10.10 $ 9.75 $ 8.58 $ 8.32 $ 7.65 Total Return....................... 3.6% 13.6% 3.1% 8.7% 26.2% Investment Income Ratio............ 1.5% 0.5% 1.2% 1.5% 1.6% SERIES IV POLICIES (d) Net Assets......................... $ 20,632 $ 21,846 $ 21,290 $ 21,843 $ 19,067 Units Outstanding.................. 1,500 1,647 1,826 1,935 1,839 Variable Accumulation Unit Value... $ 13.76 $ 13.26 $ 11.66 $ 11.29 $ 10.37 Total Return....................... 3.7% 13.8% 3.3% 8.9% 26.4% Investment Income Ratio............ 1.6% 0.5% 1.2% 1.6% 1.8% SERIES V POLICIES (e) Net Assets......................... $ 190 $ 191 $ 345 $ 414 $ 264 Units Outstanding.................. 12 12 25 31 21 Variable Accumulation Unit Value... $ 16.18 $ 15.66 $ 13.82 $ 13.43 $ 12.39 Total Return....................... 3.3% 13.3% 2.9% 8.5% 25.8% Investment Income Ratio............ 1.6% 0.3% 1.1% 1.6% 1.7% SERIES VI POLICIES (f) Net Assets......................... $ -- $ -- $ -- $ -- $ -- Units Outstanding.................. -- -- -- -- -- Variable Accumulation Unit Value... $ -- $ -- $ -- $ -- $ -- Total Return....................... -- -- -- -- -- Investment Income Ratio............ -- -- -- -- --
Not all investment divisions are available under all policies. Annualized percentages are shown for the Investment Income Ratio for all investment divisions in all periods. Charges and fees levied by NYLIAC are disclosed in Note 3. During the year that an individual division commenced operations, Total Return is calculated from the date of commencement through the end of the year. (a) Expenses as a percent of average variable accumulation value are 1.40%, excluding expenses of the underlying funds, surrender charges, policy service charges and charges for transferring funds between investment divisions. (b) Expenses as a percent of average variable accumulation value are 1.55%, excluding expenses of the underlying funds, policy service charges and charges for transferring funds between investment divisions. (c) Expenses as a percent of average variable accumulation value are 1.60%, excluding expenses of the underlying funds, surrender charges, policy service charges and charges for transferring funds between investment divisions. (d) Expenses as a percent of average variable accumulation value are 1.45%, excluding expenses of the underlying funds, surrender charges, policy service charges and charges for transferring funds between investment divisions. (e) Expenses as a percent of average variable accumulation value are 1.85%, excluding expenses of the underlying funds, surrender charges, policy service charges and charges for transferring funds between investment divisions. (f) Expenses as a percent of average variable accumulation value are 1.75%, excluding expenses of the underlying funds, surrender charges, policy service charges and charges for transferring funds between investment divisions. F-90 NYLIAC VARIABLE ANNUITY SEPARATE ACCOUNT-III --------------------------------------------------------------------------------
MAINSTAY VP MAINSTAY VP SMALL CAP GROWTH--INITIAL CLASS TOTAL RETURN--INITIAL CLASS ------------------------------------------------ ------------------------------------------------ 2007 2006 2005 2004 2003 2007 2006 2005 2004 2003 -------------------------------------------------------------------------------------------------- $24,405 $33,405 $38,454 $45,369 $40,155 $133,026 $155,310 $179,431 $216,659 $233,917 2,292 2,996 3,613 4,375 4,177 6,205 7,691 9,593 12,145 13,754 $ 10.65 $ 11.16 $ 10.64 $ 10.37 $ 9.61 $ 21.45 $ 20.23 $ 18.74 $ 17.84 $ 17.01 (4.5%) 4.8% 2.6% 7.9% 39.7% 6.0% 8.0% 5.0% 4.9% 18.0% -- -- -- -- -- 2.1% 0.6% 1.4% 1.6% 1.9% $ 105 $ 167 $ 363 $ 449 $ 426 $ 336 $ 365 $ 500 $ 724 $ 1,895 10 15 33 42 43 34 39 58 88 242 $ 10.86 $ 11.40 $ 10.89 $ 10.63 $ 9.86 $ 9.81 $ 9.27 $ 8.60 $ 8.20 $ 7.83 (4.7%) 4.7% 2.5% 7.7% 39.5% 5.9% 7.8% 4.9% 4.7% 17.8% -- -- -- -- -- 2.1% 0.5% 1.3% 1.0% 1.7% $10,880 $14,717 $16,095 $18,573 $17,970 $ 15,244 $ 17,053 $ 18,186 $ 21,718 $ 21,510 1,036 1,335 1,527 1,804 1,879 1,627 1,924 2,210 2,767 2,868 $ 10.51 $ 11.04 $ 10.55 $ 10.30 $ 9.56 $ 9.38 $ 8.87 $ 8.23 $ 7.85 $ 7.50 (4.7%) 4.6% 2.4% 7.7% 39.4% 5.8% 7.8% 4.8% 4.7% 17.8% -- -- -- -- -- 2.2% 0.6% 1.4% 1.7% 2.3% $ 6,073 $ 7,081 $ 7,745 $ 8,101 $ 7,514 $ 5,942 $ 6,426 $ 6,488 $ 6,866 $ 6,662 531 590 677 726 726 459 526 573 636 647 $ 11.45 $ 12.00 $ 11.45 $ 11.16 $ 10.35 $ 12.95 $ 12.22 $ 11.33 $ 10.79 $ 10.29 (4.6%) 4.8% 2.6% 7.8% 39.7% 6.0% 7.9% 5.0% 4.8% 18.0% -- -- -- -- -- 2.2% 0.6% 1.5% 1.7% 2.6% $ 51 $ 57 $ 78 $ 130 $ 126 $ 48 $ 46 $ 308 $ 351 $ 305 4 4 6 10 11 3 3 24 29 26 $ 12.57 $ 13.23 $ 12.68 $ 12.41 $ 11.55 $ 14.45 $ 13.69 $ 12.74 $ 12.19 $ 11.67 (5.0%) 4.4% 2.2% 7.4% 39.1% 5.5% 7.5% 4.6% 4.4% 17.5% -- -- -- -- -- 2.3% 0.2% 1.4% 1.8% 3.1% $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- -- -- -- -- -- -- -- -- -- -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- --
F-91 NOTES TO FINANCIAL STATEMENTS (CONTINUED) NOTE 6--Financial Highlights (Net Assets and Units Outstanding in 000's) (Continued): --------------------------------------------------------------------------------
MAINSTAY VP VALUE--INITIAL CLASS ------------------------------------------------ 2007 2006 2005 2004 2003 ------------------------------------------------ SERIES I POLICIES (a) Net Assets......................... $151,097 $183,429 $184,372 $205,052 $202,324 Units Outstanding.................. 6,108 7,477 8,804 10,255 11,104 Variable Accumulation Unit Value... $ 24.74 $ 24.56 $ 20.95 $ 19.99 $ 18.22 Total Return....................... 0.8% 17.2% 4.8% 9.7% 25.6% Investment Income Ratio............ 1.5% 0.4% 1.1% 1.1% 1.6% SERIES II POLICIES (b) Net Assets......................... $ 956 $ 729 $ 936 $ 1,017 $ 1,072 Units Outstanding.................. 67 51 77 87 101 Variable Accumulation Unit Value... $ 14.37 $ 14.28 $ 12.20 $ 11.66 $ 10.64 Total Return....................... 0.6% 17.0% 4.6% 9.6% 25.4% Investment Income Ratio............ 1.7% 0.3% 1.1% 1.1% 1.6% SERIES III POLICIES (c) Net Assets......................... $ 39,764 $ 45,206 $ 42,103 $ 40,492 $ 36,811 Units Outstanding.................. 2,903 3,319 3,616 3,635 3,619 Variable Accumulation Unit Value... $ 13.70 $ 13.63 $ 11.65 $ 11.14 $ 10.17 Total Return....................... 0.6% 17.0% 4.6% 9.5% 25.4% Investment Income Ratio............ 1.5% 0.4% 1.2% 1.2% 1.8% SERIES IV POLICIES (d) Net Assets......................... $ 11,288 $ 12,559 $ 11,565 $ 11,987 $ 11,041 Units Outstanding.................. 865 967 1,046 1,135 1,147 Variable Accumulation Unit Value... $ 13.05 $ 12.95 $ 11.06 $ 10.56 $ 9.63 Total Return....................... 0.7% 17.2% 4.7% 9.7% 25.5% Investment Income Ratio............ 1.6% 0.4% 1.2% 1.2% 1.9% SERIES V POLICIES (e) Net Assets......................... $ 122 $ 131 $ 179 $ 234 $ 230 Units Outstanding.................. 9 9 15 21 22 Variable Accumulation Unit Value... $ 13.92 $ 13.87 $ 11.89 $ 11.40 $ 10.43 Total Return....................... 0.3% 16.7% 4.3% 9.2% 25.0% Investment Income Ratio............ 1.5% 0.3% 1.0% 1.1% 2.0% SERIES VI POLICIES (f) Net Assets......................... $ -- $ -- $ -- $ -- $ -- Units Outstanding.................. -- -- -- -- -- Variable Accumulation Unit Value... $ -- $ -- $ -- $ -- $ -- Total Return....................... -- -- -- -- -- Investment Income Ratio............ -- -- -- -- --
Not all investment divisions are available under all policies. Annualized percentages are shown for the Investment Income Ratio for all investment divisions in all periods. Charges and fees levied by NYLIAC are disclosed in Note 3. During the year that an individual division commenced operations, Total Return is calculated from the date of commencement through the end of the year. (a) Expenses as a percent of average variable accumulation value are 1.40%, excluding expenses of the underlying funds, surrender charges, policy service charges and charges for transferring funds between investment divisions. (b) Expenses as a percent of average variable accumulation value are 1.55%, excluding expenses of the underlying funds, policy service charges and charges for transferring funds between investment divisions. (c) Expenses as a percent of average variable accumulation value are 1.60%, excluding expenses of the underlying funds, surrender charges, policy service charges and charges for transferring funds between investment divisions. (d) Expenses as a percent of average variable accumulation value are 1.45%, excluding expenses of the underlying funds, surrender charges, policy service charges and charges for transferring funds between investment divisions. (e) Expenses as a percent of average variable accumulation value are 1.85%, excluding expenses of the underlying funds, surrender charges, policy service charges and charges for transferring funds between investment divisions. (f) Expenses as a percent of average variable accumulation value are 1.75%, excluding expenses of the underlying funds, surrender charges, policy service charges and charges for transferring funds between investment divisions. F-92 NYLIAC VARIABLE ANNUITY SEPARATE ACCOUNT-III --------------------------------------------------------------------------------
CVS CALVERT ALGER AMERICAN SOCIAL SMALL CAPITALIZATION-- BALANCED CLASS O SHARES PORTFOLIO ------------------------------------------------ ------------------------------------------------ 2007 2006 2005 2004 2003 2007 2006 2005 2004 2003 -------------------------------------------------------------------------------------------------- $60,436 $67,921 $66,237 $64,616 $60,347 $21,345 $25,281 $28,572 $30,071 $27,683 3,861 5,028 5,793 6,515 6,994 1,057 1,268 1,536 1,684 1,655 $ 15.64 $ 13.53 $ 11.43 $ 9.92 $ 8.63 $ 20.22 $ 19.96 $ 18.61 $ 17.86 $ 16.73 15.6% 18.3% 15.3% 15.0% 40.4% 1.3% 7.3% 4.2% 6.8% 17.7% -- -- -- -- -- 2.2% 2.1% 1.7% 1.7% 2.0% $ 379 $ 410 $ 430 $ 442 $ 418 $ 239 $ 213 $ 155 $ 157 $ 125 35 43 54 64 69 23 21 16 17 14 $ 10.89 $ 9.44 $ 7.99 $ 6.94 $ 6.05 $ 10.47 $ 10.35 $ 9.66 $ 9.29 $ 8.71 15.4% 18.2% 15.1% 14.8% 40.2% 1.2% 7.1% 4.0% 6.6% 17.5% -- -- -- -- -- 2.3% 2.4% 1.9% 1.6% 1.8% $13,722 $14,487 $12,448 $12,381 $10,455 $ 9,243 $10,060 $10,766 $10,514 $ 8,419 1,361 1,660 1,686 1,925 1,865 911 1,004 1,148 1,166 995 $ 10.08 $ 8.74 $ 7.40 $ 6.43 $ 5.61 $ 10.15 $ 10.03 $ 9.37 $ 9.02 $ 8.46 15.4% 18.1% 15.0% 14.7% 40.1% 1.1% 7.0% 4.0% 6.5% 17.4% -- -- -- -- -- 2.3% 2.2% 1.8% 1.8% 2.6% $ 3,672 $ 3,658 $ 3,090 $ 2,438 $ 2,010 $ 5,649 $ 5,824 $ 5,075 $ 4,417 $ 2,279 179 202 204 185 175 432 451 421 382 210 $ 20.78 $ 17.98 $ 15.20 $ 13.20 $ 11.49 $ 13.09 $ 12.92 $ 12.06 $ 11.58 $ 10.85 15.6% 18.3% 15.2% 14.9% 40.3% 1.3% 7.2% 4.1% 6.7% 17.6% -- -- -- -- -- 2.4% 2.4% 1.9% 2.1% 3.5% $ 77 $ 88 $ 133 $ 147 $ 54 $ 809 $ 867 $ 833 $ 751 $ 70 3 4 7 9 4 58 62 64 60 6 $ 24.07 $ 20.91 $ 17.75 $ 15.47 $ 13.52 $ 14.02 $ 13.90 $ 13.02 $ 12.55 $ 11.81 15.1% 17.8% 14.7% 14.4% 35.2% 0.9% 6.8% 3.7% 6.3% 17.1% -- -- -- -- -- 2.5% 2.4% 1.9% 2.7% 4.6% $ -- $ -- $ -- $ -- $ -- $ 2,832 $ 2,954 $ 2,345 $ 1,673 $ 469 -- -- -- -- -- 220 232 197 146 43 $ -- $ -- $ -- $ -- $ -- $ 12.87 $ 12.74 $ 11.92 $ 11.48 $ 10.80 -- -- -- -- -- 1.0% 6.9% 3.8% 6.4% 8.0% -- -- -- -- -- 2.4% 2.6% 2.1% 2.5% 7.3%
F-93 NOTES TO FINANCIAL STATEMENTS (CONTINUED) NOTE 6--Financial Highlights (Net Assets and Units Outstanding in 000's) (Continued): --------------------------------------------------------------------------------
DREYFUS IP TECHNOLOGY GROWTH-- INITIAL SHARES ------------------------------------------------ 2007 2006 2005 2004 2003 ------------------------------------------------ SERIES I POLICIES (a) Net Assets......................... $11,014 $11,723 $12,609 $16,780 $17,740 Units Outstanding.................. 1,065 1,284 1,423 1,936 2,027 Variable Accumulation Unit Value... $ 10.32 $ 9.12 $ 8.87 $ 8.67 $ 8.75 Total Return....................... 13.1% 2.9% 2.3% (0.9%) 48.9% Investment Income Ratio............ -- -- -- -- -- SERIES II POLICIES (b) Net Assets......................... $ 217 $ 224 $ 91 $ 113 $ 182 Units Outstanding.................. 17 20 8 11 17 Variable Accumulation Unit Value... $ 12.51 $ 11.08 $ 10.79 $ 10.56 $ 10.67 Total Return....................... 13.0% 2.7% 2.2% (1.1%) 48.6% Investment Income Ratio............ -- -- -- -- -- SERIES III POLICIES (c) Net Assets......................... $ 5,640 $ 5,428 $ 6,397 $ 8,362 $10,676 Units Outstanding.................. 541 590 715 952 1,201 Variable Accumulation Unit Value... $ 10.40 $ 9.21 $ 8.98 $ 8.79 $ 8.89 Total Return....................... 12.9% 2.6% 2.1% (1.1%) 48.6% Investment Income Ratio............ -- -- -- -- -- SERIES IV POLICIES (d) Net Assets......................... $ 1,863 $ 1,885 $ 2,156 $ 2,402 $ 2,206 Units Outstanding.................. 148 170 200 228 207 Variable Accumulation Unit Value... $ 12.54 $ 11.09 $ 10.79 $ 10.55 $ 10.65 Total Return....................... 13.1% 2.8% 2.3% (1.0%) 48.8% Investment Income Ratio............ -- -- -- -- -- SERIES V POLICIES (e) Net Assets......................... $ 69 $ 48 $ 45 $ 29 $ 32 Units Outstanding.................. 4 3 3 2 2 Variable Accumulation Unit Value... $ 16.42 $ 14.58 $ 14.24 $ 13.97 $ 14.17 Total Return....................... 12.6% 2.4% 1.9% (1.4%) 41.7% Investment Income Ratio............ -- -- -- -- -- SERIES VI POLICIES (f) Net Assets......................... $ -- $ -- $ -- $ -- $ -- Units Outstanding.................. -- -- -- -- -- Variable Accumulation Unit Value... $ -- $ -- $ -- $ -- $ -- Total Return....................... -- -- -- -- -- Investment Income Ratio............ -- -- -- -- --
Not all investment divisions are available under all policies. Annualized percentages are shown for the Investment Income Ratio for all investment divisions in all periods. Charges and fees levied by NYLIAC are disclosed in Note 3. During the year that an individual division commenced operations, Total Return is calculated from the date of commencement through the end of the year. (a) Expenses as a percent of average variable accumulation value are 1.40%, excluding expenses of the underlying funds, surrender charges, policy service charges and charges for transferring funds between investment divisions. (b) Expenses as a percent of average variable accumulation value are 1.55%, excluding expenses of the underlying funds, policy service charges and charges for transferring funds between investment divisions. (c) Expenses as a percent of average variable accumulation value are 1.60%, excluding expenses of the underlying funds, surrender charges, policy service charges and charges for transferring funds between investment divisions. (d) Expenses as a percent of average variable accumulation value are 1.45%, excluding expenses of the underlying funds, surrender charges, policy service charges and charges for transferring funds between investment divisions. (e) Expenses as a percent of average variable accumulation value are 1.85%, excluding expenses of the underlying funds, surrender charges, policy service charges and charges for transferring funds between investment divisions. (f) Expenses as a percent of average variable accumulation value are 1.75%, excluding expenses of the underlying funds, surrender charges, policy service charges and charges for transferring funds between investment divisions. F-94 NYLIAC VARIABLE ANNUITY SEPARATE ACCOUNT-III --------------------------------------------------------------------------------
FIDELITY(R) FIDELITY(R) VIP CONTRAFUND(R)-- VIP EQUITY-INCOME-- INITIAL CLASS INITIAL CLASS ------------------------------------------------ ------------------------------------------------ 2007 2006 2005 2004 2003 2007 2006 2005 2004 2003 -------------------------------------------------------------------------------------------------- $310,382 $328,808 $346,947 $319,270 $291,995 $143,891 $176,652 $173,409 $189,506 $179,594 10,034 12,342 14,328 15,206 15,836 6,579 8,089 9,399 10,725 11,179 $ 30.93 $ 26.67 $ 24.21 $ 21.00 $ 18.44 $ 21.89 $ 21.86 $ 18.45 $ 17.67 $ 16.07 16.0% 10.2% 15.3% 13.9% 26.7% 0.1% 18.5% 4.4% 10.0% 28.5% 0.9% 1.3% 0.3% 0.3% 0.5% 1.7% 3.3% 1.7% 1.5% 1.8% $ 2,180 $ 1,816 $ 1,588 $ 1,465 $ 1,321 $ 903 $ 934 $ 662 $ 1,372 $ 877 135 130 126 133 136 64 66 55 119 84 $ 16.15 $ 13.95 $ 12.68 $ 11.02 $ 9.69 $ 14.17 $ 14.17 $ 11.97 $ 11.49 $ 10.46 15.8% 10.0% 15.1% 13.7% 26.5% -- 18.3% 4.2% 9.8% 28.3% 0.9% 1.3% 0.3% 0.3% 0.4% 1.8% 3.3% 1.8% 1.1% 1.8% $ 66,442 $ 62,163 $ 58,804 $ 48,944 $ 41,757 $ 39,194 $ 43,301 $ 37,734 $ 39,178 $ 36,552 4,290 4,646 4,831 4,625 4,484 2,817 3,115 3,203 3,465 3,548 $ 15.49 $ 13.39 $ 12.18 $ 10.58 $ 9.31 $ 13.92 $ 13.93 $ 11.78 $ 11.31 $ 10.30 15.7% 9.9% 15.1% 13.6% 26.4% (0.1%) 18.3% 4.2% 9.8% 28.3% 0.9% 1.3% 0.3% 0.3% 0.3% 1.7% 3.4% 1.7% 1.5% 1.5% $ 23,041 $ 20,025 $ 18,030 $ 14,290 $ 11,685 $ 9,960 $ 10,984 $ 9,392 $ 9,223 $ 8,099 1,261 1,269 1,259 1,149 1,070 700 772 782 801 773 $ 18.29 $ 15.78 $ 14.33 $ 12.43 $ 10.93 $ 14.24 $ 14.23 $ 12.01 $ 11.51 $ 10.47 15.9% 10.1% 15.3% 13.8% 26.6% 0.1% 18.5% 4.3% 9.9% 28.5% 1.0% 1.3% 0.3% 0.3% 0.3% 1.7% 3.3% 1.6% 1.5% 1.0% $ 518 $ 628 $ 732 $ 526 $ 398 $ 304 $ 465 $ 694 $ 651 $ 370 24 34 43 36 31 22 33 58 56 35 $ 21.40 $ 18.54 $ 16.91 $ 14.73 $ 12.99 $ 14.11 $ 14.15 $ 12.00 $ 11.54 $ 10.54 15.4% 9.7% 14.8% 13.4% 26.1% (0.3%) 18.0% 3.9% 9.5% 27.9% 0.9% 1.3% 0.3% 0.3% 0.2% 1.9% 3.7% 1.6% 1.2% 1.0% $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- -- -- -- -- -- -- -- -- -- -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- --
F-95 NOTES TO FINANCIAL STATEMENTS (CONTINUED) NOTE 6--Financial Highlights (Net Assets and Units Outstanding in 000's) (Continued): --------------------------------------------------------------------------------
JANUS ASPEN SERIES BALANCED-- INSTITUTIONAL SHARES ------------------------------------------------ 2007 2006 2005 2004 2003 ------------------------------------------------ SERIES I POLICIES (a) Net Assets......................... $322,937 $378,517 $438,220 $501,432 $541,659 Units Outstanding.................. 12,429 15,886 20,068 24,437 28,250 Variable Accumulation Unit Value... $ 25.99 $ 23.85 $ 21.84 $ 20.52 $ 19.17 Total Return....................... 9.0% 9.2% 6.5% 7.0% 12.5% Investment Income Ratio............ 2.5% 2.1% 2.2% 2.2% 2.2% SERIES II POLICIES (b) Net Assets......................... $ 1,447 $ 1,377 $ 1,886 $ 2,176 $ 2,620 Units Outstanding.................. 109 112 167 205 264 Variable Accumulation Unit Value... $ 13.40 $ 12.31 $ 11.29 $ 10.62 $ 9.94 Total Return....................... 8.8% 9.0% 6.3% 6.9% 12.3% Investment Income Ratio............ 2.6% 2.1% 2.2% 2.1% 2.2% SERIES III POLICIES (c) Net Assets......................... $ 58,855 $ 62,239 $ 65,609 $ 74,259 $ 79,154 Units Outstanding.................. 4,677 5,382 6,178 7,429 8,458 Variable Accumulation Unit Value... $ 12.59 $ 11.57 $ 10.62 $ 10.00 $ 9.36 Total Return....................... 8.8% 9.0% 6.2% 6.8% 12.2% Investment Income Ratio............ 2.5% 2.1% 2.2% 2.2% 2.4% SERIES IV POLICIES (d) Net Assets......................... $ 18,624 $ 19,557 $ 19,881 $ 21,177 $ 21,004 Units Outstanding.................. 1,332 1,523 1,691 1,916 2,032 Variable Accumulation Unit Value... $ 13.98 $ 12.83 $ 11.76 $ 11.05 $ 10.33 Total Return....................... 8.9% 9.1% 6.4% 7.0% 12.4% Investment Income Ratio............ 2.5% 2.1% 2.3% 2.3% 2.6% SERIES V POLICIES (e) Net Assets......................... $ 323 $ 414 $ 680 $ 647 $ 513 Units Outstanding.................. 23 32 56 57 48 Variable Accumulation Unit Value... $ 14.27 $ 13.15 $ 12.10 $ 11.42 $ 10.72 Total Return....................... 8.5% 8.7% 6.0% 6.5% 12.0% Investment Income Ratio............ 2.3% 2.0% 2.3% 2.4% 2.9% SERIES VI POLICIES (f) Net Assets......................... $ -- $ -- $ -- $ -- $ -- Units Outstanding.................. -- -- -- -- -- Variable Accumulation Unit Value... $ -- $ -- $ -- $ -- $ -- Total Return....................... -- -- -- -- -- Investment Income Ratio............ -- -- -- -- --
Not all investment divisions are available under all policies. Annualized percentages are shown for the Investment Income Ratio for all investment divisions in all periods. Charges and fees levied by NYLIAC are disclosed in Note 3. During the year that an individual division commenced operations, Total Return is calculated from the date of commencement through the end of the year. (a) Expenses as a percent of average variable accumulation value are 1.40%, excluding expenses of the underlying funds, surrender charges, policy service charges and charges for transferring funds between investment divisions. (b) Expenses as a percent of average variable accumulation value are 1.55%, excluding expenses of the underlying funds, policy service charges and charges for transferring funds between investment divisions. (c) Expenses as a percent of average variable accumulation value are 1.60%, excluding expenses of the underlying funds, surrender charges, policy service charges and charges for transferring funds between investment divisions. (d) Expenses as a percent of average variable accumulation value are 1.45%, excluding expenses of the underlying funds, surrender charges, policy service charges and charges for transferring funds between investment divisions. (e) Expenses as a percent of average variable accumulation value are 1.85%, excluding expenses of the underlying funds, surrender charges, policy service charges and charges for transferring funds between investment divisions. (f) Expenses as a percent of average variable accumulation value are 1.75%, excluding expenses of the underlying funds, surrender charges, policy service charges and charges for transferring funds between investment divisions. F-96 NYLIAC VARIABLE ANNUITY SEPARATE ACCOUNT-III --------------------------------------------------------------------------------
Janus Aspen Series MFS(R) Worldwide Growth-- INVESTORS TRUST SERIES-- Institutional Shares INITIAL CLASS ------------------------------------------------ ------------------------------------------------ 2007 2006 2005 2004 2003 2007 2006 2005 2004 2003 -------------------------------------------------------------------------------------------------- $149,193 $173,489 $189,175 $231,574 $266,039 $16,463 $19,437 $21,375 $24,302 $24,572 7,468 9,403 11,939 15,251 18,103 1,374 1,764 2,160 2,599 2,885 $ 19.97 $ 18.48 $ 15.85 $ 15.18 $ 14.70 $ 11.99 $ 11.03 $ 9.90 $ 9.35 $ 8.52 8.1% 16.6% 4.4% 3.3% 22.3% 8.7% 11.4% 5.8% 9.8% 20.5% 0.7% 1.7% 1.3% 1.0% 1.1% 0.9% 0.5% 0.6% 0.6% 0.7% $ 392 $ 691 $ 829 $ 985 $ 1,136 $ 272 $ 322 $ 323 $ 368 $ 340 46 88 123 152 181 26 33 37 44 45 $ 8.46 $ 7.84 $ 6.74 $ 6.46 $ 6.27 $ 10.57 $ 9.73 $ 8.75 $ 8.28 $ 7.55 7.9% 16.4% 4.2% 3.2% 22.1% 8.6% 11.3% 5.7% 9.6% 20.3% 0.7% 1.8% 1.3% 0.9% 1.0% 0.9% 0.5% 0.6% 0.6% 0.7% $ 15,136 $ 15,213 $ 14,690 $ 16,987 $ 20,011 $ 5,209 $ 5,335 $ 5,819 $ 6,024 $ 5,795 1,951 2,115 2,375 2,864 3,479 502 558 677 740 780 $ 7.76 $ 7.19 $ 6.18 $ 5.93 $ 5.75 $ 10.37 $ 9.56 $ 8.60 $ 8.14 $ 7.43 7.9% 16.3% 4.2% 3.1% 22.0% 8.5% 11.2% 5.6% 9.6% 20.2% 0.7% 1.8% 1.4% 1.0% 1.4% 0.8% 0.5% 0.6% 0.6% 0.6% $ 5,875 $ 6,014 $ 5,713 $ 6,016 $ 6,275 $ 1,283 $ 1,334 $ 1,287 $ 1,319 $ 1,236 455 504 557 612 659 93 104 113 123 126 $ 12.91 $ 11.94 $ 10.25 $ 9.83 $ 9.52 $ 13.76 $ 12.67 $ 11.37 $ 10.75 $ 9.80 8.0% 16.5% 4.3% 3.3% 22.2% 8.7% 11.4% 5.8% 9.8% 20.4% 0.8% 1.8% 1.4% 1.0% 1.3% 0.8% 0.5% 0.6% 0.6% 0.6% $ 92 $ 81 $ 134 $ 135 $ 84 $ 72 $ 70 $ 91 $ 91 $ 74 6 5 10 11 7 4 4 6 7 6 $ 16.17 $ 15.03 $ 12.97 $ 12.48 $ 12.13 $ 17.21 $ 15.90 $ 14.35 $ 13.62 $ 12.46 7.6% 15.9% 3.9% 2.9% 21.8% 8.2% 10.8% 5.4% 9.3% 24.6% 0.7% 1.6% 1.4% 1.2% 1.2% 0.8% 0.4% 0.6% 0.6% 0.3% $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- -- -- -- -- -- -- -- -- -- -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- --
F-97 NOTES TO FINANCIAL STATEMENTS (CONTINUED) NOTE 6--Financial Highlights (Net Assets and Units Outstanding in 000's) (Continued): --------------------------------------------------------------------------------
MFS(R) RESEARCH SERIES--INITIAL CLASS ------------------------------------------------ 2007 2006 2005 2004 2003 ------------------------------------------------ SERIES I POLICIES (a) Net Assets......................... $20,040 $25,440 $30,730 $34,542 $33,395 Units Outstanding.................. 1,536 2,180 2,867 3,422 3,779 Variable Accumulation Unit Value... $ 13.05 $ 11.69 $ 10.73 $ 10.09 $ 8.84 Total Return....................... 11.6% 8.9% 6.3% 14.2% 23.0% Investment Income Ratio............ 0.7% 0.5% 0.5% 1.1% 0.7% SERIES II POLICIES (b) Net Assets......................... $ 181 $ 238 $ 246 $ 298 $ 307 Units Outstanding.................. 20 29 32 42 49 Variable Accumulation Unit Value... $ 9.20 $ 8.25 $ 7.59 $ 7.15 $ 6.27 Total Return....................... 11.5% 8.8% 6.1% 14.1% 22.8% Investment Income Ratio............ 0.7% 0.5% 0.5% 1.1% 0.7% SERIES III POLICIES (c) Net Assets......................... $ 5,125 $ 5,379 $ 5,561 $ 6,554 $ 6,172 Units Outstanding.................. 583 683 767 958 1,029 Variable Accumulation Unit Value... $ 8.79 $ 7.89 $ 7.26 $ 6.84 $ 6.00 Total Return....................... 11.4% 8.7% 6.1% 14.0% 22.7% Investment Income Ratio............ 0.7% 0.5% 0.5% 1.1% 0.6% SERIES IV POLICIES (d) Net Assets......................... $ 1,094 $ 1,079 $ 1,131 $ 1,125 $ 1,035 Units Outstanding.................. 77 84 96 102 107 Variable Accumulation Unit Value... $ 14.29 $ 12.80 $ 11.76 $ 11.07 $ 9.69 Total Return....................... 11.6% 8.9% 6.3% 14.2% 22.9% Investment Income Ratio............ 0.7% 0.5% 0.5% 1.1% 0.6% SERIES V POLICIES (e) Net Assets......................... $ 6 $ 7 $ 22 $ 27 $ 8 Units Outstanding.................. -- -- 2 2 1 Variable Accumulation Unit Value... $ 17.14 $ 15.43 $ 14.23 $ 13.44 $ 11.82 Total Return....................... 11.1% 8.4% 5.8% 13.7% 22.5% Investment Income Ratio............ 0.6% 0.9% 0.4% 0.5% 0.2% SERIES VI POLICIES (f) Net Assets......................... $ -- $ -- $ -- $ -- $ -- Units Outstanding.................. -- -- -- -- -- Variable Accumulation Unit Value... $ -- $ -- $ -- $ -- $ -- Total Return....................... -- -- -- -- -- Investment Income Ratio............ -- -- -- -- --
Not all investment divisions are available under all policies. Annualized percentages are shown for the Investment Income Ratio for all investment divisions in all periods. Charges and fees levied by NYLIAC are disclosed in Note 3. During the year that an individual division commenced operations, Total Return is calculated from the date of commencement through the end of the year. (a) Expenses as a percent of average variable accumulation value are 1.40%, excluding expenses of the underlying funds, surrender charges, policy service charges and charges for transferring funds between investment divisions. (b) Expenses as a percent of average variable accumulation value are 1.55%, excluding expenses of the underlying funds, policy service charges and charges for transferring funds between investment divisions. (c) Expenses as a percent of average variable accumulation value are 1.60%, excluding expenses of the underlying funds, surrender charges, policy service charges and charges for transferring funds between investment divisions. (d) Expenses as a percent of average variable accumulation value are 1.45%, excluding expenses of the underlying funds, surrender charges, policy service charges and charges for transferring funds between investment divisions. (e) Expenses as a percent of average variable accumulation value are 1.85%, excluding expenses of the underlying funds, surrender charges, policy service charges and charges for transferring funds between investment divisions. (f) Expenses as a percent of average variable accumulation value are 1.75%, excluding expenses of the underlying funds, surrender charges, policy service charges and charges for transferring funds between investment divisions. F-98 NYLIAC VARIABLE ANNUITY SEPARATE ACCOUNT-III --------------------------------------------------------------------------------
MFS(R) NEUBERGER BERMAN UTILITIES AMT MID-CAP SERIES--INITIAL CLASS GROWTH PORTFOLIO--CLASS I ------------------------------------------------ ------------------------------------------------ 2007 2006 2005 2004 2003 2007 2006 2005 2004 2003 -------------------------------------------------------------------------------------------------- $2,435 $2,035 $2,771 $1,792 $ 870 $3,160 $3,195 $3,233 $3,795 $4,336 112 118 208 155 97 212 258 296 390 511 $21.76 $17.25 $13.33 $11.57 $ 9.01 $14.92 $12.35 $10.92 $ 9.73 $ 8.49 26.1% 29.4% 15.2% 28.4% 34.0% 20.8% 13.1% 12.2% 14.7% 26.3% 0.9% 1.9% 0.5% 1.3% 1.7% -- -- -- -- -- $ 85 $ 58 $ 19 $ 23 $ 16 $ 43 $ 44 $ 43 $ 59 $ 69 3 3 1 2 2 3 3 4 6 8 $25.48 $20.24 $15.66 $13.61 $10.62 $15.29 $12.68 $11.23 $10.02 $ 8.75 25.9% 29.2% 15.0% 28.2% 33.8% 20.6% 12.9% 12.0% 14.5% 26.1% 0.5% 1.3% 0.6% 1.3% 2.1% -- -- -- -- -- $3,574 $3,030 $2,247 $1,955 $1,138 $3,264 $3,034 $2,913 $3,531 $3,204 176 188 180 180 134 213 238 258 350 364 $20.33 $16.15 $12.50 $10.87 $ 8.49 $15.36 $12.74 $11.28 $10.08 $ 8.81 25.9% 29.2% 15.0% 28.1% 33.7% 20.6% 12.9% 11.9% 14.5% 26.0% 1.0% 2.0% 0.6% 1.4% 2.1% -- -- -- -- -- $ 178 $ 170 $ 147 $ 132 $ 104 $ 768 $ 743 $ 711 $ 672 $ 619 5 7 7 8 8 36 42 45 48 51 $32.88 $26.08 $20.16 $17.50 $13.64 $21.44 $17.76 $15.71 $14.01 $12.22 26.1% 29.4% 15.2% 28.3% 33.9% 20.8% 13.0% 12.1% 14.6% 26.2% 1.0% 2.4% 0.6% 1.5% 2.2% -- -- -- -- -- $ 65 $ 41 $ 55 $ 44 $ 15 $ 65 $ 75 $ 117 $ 110 $ 82 2 2 3 3 1 3 4 8 8 7 $28.99 $23.09 $17.92 $15.62 $12.22 $20.45 $17.00 $15.11 $13.53 $11.85 25.6% 28.9% 14.7% 27.8% 22.2% 20.3% 12.5% 11.7% 14.2% 25.8% 0.9% 3.0% 0.6% 1.3% -- -- -- -- -- -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- -- -- -- -- -- -- -- -- -- -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- $ -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- --
F-99 NOTES TO FINANCIAL STATEMENTS (CONTINUED) NOTE 6--Financial Highlights (Net Assets and Units Outstanding in 000's) (Continued): --------------------------------------------------------------------------------
ROYCE ROYCE MICRO-CAP SMALL-CAP PORTFOLIO-- PORTFOLIO-- INVESTMENT CLASS INVESTMENT CLASS ---------------------------- ---------------------------- 2007 2006 2005 2007 2006 2005 ---------------------------------------------------------- SERIES I POLICIES (a) Net Assets......................... $20,156 $15,285 $1,905 $13,289 $11,550 $4,337 Units Outstanding.................. 1,353 1,051 159 1,078 907 387 Variable Accumulation Unit Value... $ 14.88 $ 14.51 $12.16 $ 12.27 $ 12.72 $11.18 Total Return....................... 2.5% 19.4% 21.6% (3.5%) 13.8% 11.8% Investment Income Ratio............ 1.5% 0.3% 1.5% 0.1% 0.1% -- SERIES II POLICIES (b) Net Assets......................... $ 1,311 $ 642 $ 46 $ 1,355 $ 645 $1,261 Units Outstanding.................. 88 44 4 116 53 119 Variable Accumulation Unit Value... $ 14.97 $ 14.62 $12.27 $ 11.58 $ 12.01 $10.56 Total Return....................... 2.4% 19.2% 22.7% (3.6%) 13.7% 5.6% Investment Income Ratio............ 1.7% 0.3% 1.5% 0.1% -- -- SERIES III POLICIES (c) Net Assets......................... $12,085 $10,364 $1,555 $ 8,700 $ 6,938 $2,400 Units Outstanding.................. 822 719 133 734 563 221 Variable Accumulation Unit Value... $ 14.67 $ 14.34 $12.04 $ 11.85 $ 12.30 $10.83 Total Return....................... 2.3% 19.1% 20.4% (3.7%) 13.6% 8.3% Investment Income Ratio............ 1.5% 0.3% 1.5% 0.1% 0.1% -- SERIES IV POLICIES (d) Net Assets......................... $19,048 $11,636 $2,259 $12,085 $ 8,687 $3,127 Units Outstanding.................. 1,311 821 190 999 694 284 Variable Accumulation Unit Value... $ 14.49 $ 14.14 $11.85 $ 12.05 $ 12.49 $10.98 Total Return....................... 2.5% 19.3% 18.5% (3.5%) 13.8% 9.8% Investment Income Ratio............ 1.7% 0.3% 1.6% 0.1% 0.1% -- SERIES V POLICIES (e) Net Assets......................... $ 1,124 $ 462 $ 77 $ 467 $ 311 $ 62 Units Outstanding.................. 79 33 7 40 26 6 Variable Accumulation Unit Value... $ 14.16 $ 13.87 $11.67 $ 11.40 $ 11.86 $10.47 Total Return....................... 2.1% 18.8% 16.7% (3.9%) 13.3% 4.7% Investment Income Ratio............ 1.9% 0.3% 2.3% 0.1% 0.1% -- SERIES VI POLICIES (f) Net Assets......................... $ 9,540 $ 7,136 $ 854 $ 6,950 $ 5,019 $1,622 Units Outstanding.................. 654 499 68 582 405 148 Variable Accumulation Unit Value... $ 14.57 $ 14.26 $11.98 $ 11.88 $ 12.35 $10.90 Total Return....................... 2.2% 19.0% 19.8% (3.8%) 13.3% 9.0% Investment Income Ratio............ 1.6% 0.3% 2.0% 0.1% 0.1% --
Not all investment divisions are available under all policies. Annualized percentages are shown for the Investment Income Ratio for all investment divisions in all periods. Charges and fees levied by NYLIAC are disclosed in Note 3. During the year that an individual division commenced operations, Total Return is calculated from the date of commencement through the end of the year. (a) Expenses as a percent of average variable accumulation value are 1.40%, excluding expenses of the underlying funds, surrender charges, policy service charges and charges for transferring funds between investment divisions. (b) Expenses as a percent of average variable accumulation value are 1.55%, excluding expenses of the underlying funds, policy service charges and charges for transferring funds between investment divisions. (c) Expenses as a percent of average variable accumulation value are 1.60%, excluding expenses of the underlying funds, surrender charges, policy service charges and charges for transferring funds between investment divisions. (d) Expenses as a percent of average variable accumulation value are 1.45%, excluding expenses of the underlying funds, surrender charges, policy service charges and charges for transferring funds between investment divisions. (e) Expenses as a percent of average variable accumulation value are 1.85%, excluding expenses of the underlying funds, surrender charges, policy service charges and charges for transferring funds between investment divisions. (f) Expenses as a percent of average variable accumulation value are 1.75%, excluding expenses of the underlying funds, surrender charges, policy service charges and charges for transferring funds between investment divisions. F-100 NYLIAC VARIABLE ANNUITY SEPARATE ACCOUNT-III --------------------------------------------------------------------------------
T. ROWE PRICE VAN ECK EQUITY WORLDWIDE INCOME PORTFOLIO HARD ASSETS ------------------------------------------------ ------------------------------------------------ 2007 2006 2005 2004 2003 2007 2006 2005 2004 2003 -------------------------------------------------------------------------------------------------- $124,889 $149,810 $150,117 $144,311 $117,894 $144,461 $94,179 $66,110 $19,773 $10,239 7,348 8,977 10,552 10,397 9,625 3,524 3,296 2,840 1,271 805 $ 16.99 $ 16.69 $ 14.22 $ 13.88 $ 12.25 $ 40.93 $ 28.55 $ 23.26 $ 15.55 $ 12.72 1.8% 17.3% 2.5% 13.3% 23.7% 43.3% 22.8% 49.6% 22.3% 43.1% 1.7% 1.6% 1.6% 1.6% 1.7% 0.1% 0.1% 0.2% 0.3% 0.4% $ 1,615 $ 1,548 $ 1,231 $ 1,478 $ 1,524 $ 8,507 $ 3,245 $ 1,299 $ 292 $ 190 101 98 91 112 130 209 115 56 19 15 $ 16.13 $ 15.86 $ 13.54 $ 13.24 $ 11.70 $ 40.36 $ 28.20 $ 23.01 $ 15.41 $ 12.62 1.7% 17.1% 2.3% 13.2% 23.6% 43.1% 22.6% 49.3% 22.1% 42.8% 1.7% 1.6% 1.5% 1.6% 1.7% 0.1% -- 0.2% 0.3% 0.3% $ 51,770 $ 59,049 $ 54,289 $ 50,653 $ 41,615 $105,879 $77,460 $53,056 $16,224 $ 5,745 3,284 3,811 4,097 3,910 3,633 2,593 2,712 2,279 1,040 449 $ 15.76 $ 15.51 $ 13.25 $ 12.95 $ 11.45 $ 40.82 $ 28.54 $ 23.29 $ 15.61 $ 12.79 1.6% 17.1% 2.3% 13.1% 23.5% 43.1% 22.5% 49.3% 22.0% 42.8% 1.7% 1.6% 1.6% 1.6% 1.8% 0.1% 0.1% 0.2% 0.3% 0.4% $ 15,378 $ 16,286 $ 14,572 $ 13,286 $ 11,020 $ 89,912 $50,508 $27,352 $ 7,059 $ 1,461 1,093 1,176 1,236 1,154 1,084 2,324 1,871 1,242 480 121 $ 14.07 $ 13.83 $ 11.79 $ 11.51 $ 10.17 $ 38.67 $ 26.99 $ 22.00 $ 14.71 $ 12.04 1.8% 17.3% 2.4% 13.3% 23.7% 43.3% 22.7% 49.5% 22.2% 43.0% 1.7% 1.6% 1.6% 1.6% 1.9% 0.1% 0.1% 0.2% 0.2% 0.3% $ 266 $ 495 $ 661 $ 634 $ 461 $ 4,747 $ 2,738 $ 1,221 $ 371 $ 63 19 36 55 54 45 99 81 44 20 4 $ 14.11 $ 13.92 $ 11.92 $ 11.68 $ 10.36 $ 48.17 $ 33.76 $ 27.62 $ 18.55 $ 15.24 1.4% 16.8% 2.0% 12.8% 23.2% 42.7% 22.2% 48.9% 21.7% 52.4% 1.5% 1.5% 1.6% 1.6% 1.9% 0.1% -- 0.2% 0.1% -- $ -- $ -- $ -- $ -- $ -- $ 71,046 $39,009 $20,900 $ 4,069 $ 348 -- -- -- -- -- 1,667 1,306 853 249 26 $ -- $ -- $ -- $ -- $ -- $ 42.57 $ 29.80 $ 24.36 $ 16.35 $ 13.42 -- -- -- -- -- 42.8% 22.3% 49.0% 21.8% 34.2% -- -- -- -- -- 0.1% 0.1% 0.2% 0.1% --
F-101 NOTES TO FINANCIAL STATEMENTS (CONTINUED) NOTE 6--Financial Highlights (Net Assets and Units Outstanding in 000's) (Continued): --------------------------------------------------------------------------------
VAN KAMPEN UIF EMERGING MARKETS EQUITY--CLASS I ------------------------------------------------ 2007 2006 2005 2004 2003 ------------------------------------------------ SERIES I POLICIES (a) Net Assets......................... $91,476 $77,264 $56,637 $39,055 $33,055 Units Outstanding.................. 2,910 3,407 3,378 3,076 3,161 Variable Accumulation Unit Value... $ 31.39 $ 22.66 $ 16.76 $ 12.70 $ 10.46 Total Return....................... 38.5% 35.2% 32.0% 21.4% 47.6% Investment Income Ratio............ 0.4% 0.8% 0.4% 0.7% -- SERIES II POLICIES (b) Net Assets......................... $ 436 $ 830 $ 570 $ 164 $ 697 Units Outstanding.................. 19 51 47 18 92 Variable Accumulation Unit Value... $ 22.55 $ 16.30 $ 12.07 $ 9.15 $ 7.55 Total Return....................... 38.3% 35.1% 31.8% 21.2% 47.4% Investment Income Ratio............ 0.5% 0.8% 0.3% 0.6% -- SERIES III POLICIES (c) Net Assets......................... $27,213 $20,872 $13,590 $ 7,050 $ 5,409 Units Outstanding.................. 1,041 1,103 973 663 617 Variable Accumulation Unit Value... $ 26.12 $ 18.90 $ 14.00 $ 10.63 $ 8.77 Total Return....................... 38.2% 35.0% 31.7% 21.2% 47.3% Investment Income Ratio............ 0.4% 0.8% 0.4% 0.7% -- SERIES IV POLICIES (d) Net Assets......................... $ 7,541 $ 5,612 $ 3,772 $ 1,965 $ 1,279 Units Outstanding.................. 217 223 203 139 110 Variable Accumulation Unit Value... $ 34.80 $ 25.14 $ 18.60 $ 14.10 $ 11.62 Total Return....................... 38.4% 35.2% 31.9% 21.3% 47.5% Investment Income Ratio............ 0.4% 0.7% 0.4% 0.7% -- SERIES V POLICIES (e) Net Assets......................... $ 260 $ 151 $ 112 $ 57 $ 19 Units Outstanding.................. 6 5 5 3 1 Variable Accumulation Unit Value... $ 44.08 $ 31.97 $ 23.75 $ 18.07 $ 14.95 Total Return....................... 37.9% 34.6% 31.4% 20.9% 49.5% Investment Income Ratio............ 0.3% 0.9% 0.4% 0.7% -- SERIES VI POLICIES (f) Net Assets......................... $ -- $ -- $ -- $ -- $ -- Units Outstanding.................. -- -- -- -- -- Variable Accumulation Unit Value... $ -- $ -- $ -- $ -- $ -- Total Return....................... -- -- -- -- -- Investment Income Ratio............ -- -- -- -- --
Not all investment divisions are available under all policies. Annualized percentages are shown for the Investment Income Ratio for all investment divisions in all periods. Charges and fees levied by NYLIAC are disclosed in Note 3. During the year that an individual division commenced operations, Total Return is calculated from the date of commencement through the end of the year. (a) Expenses as a percent of average variable accumulation value are 1.40%, excluding expenses of the underlying funds, surrender charges, policy service charges and charges for transferring funds between investment divisions. (b) Expenses as a percent of average variable accumulation value are 1.55%, excluding expenses of the underlying funds, policy service charges and charges for transferring funds between investment divisions. (c) Expenses as a percent of average variable accumulation value are 1.60%, excluding expenses of the underlying funds, surrender charges, policy service charges and charges for transferring funds between investment divisions. (d) Expenses as a percent of average variable accumulation value are 1.45%, excluding expenses of the underlying funds, surrender charges, policy service charges and charges for transferring funds between investment divisions. (e) Expenses as a percent of average variable accumulation value are 1.85%, excluding expenses of the underlying funds, surrender charges, policy service charges and charges for transferring funds between investment divisions. (f) Expenses as a percent of average variable accumulation value are 1.75%, excluding expenses of the underlying funds, surrender charges, policy service charges and charges for transferring funds between investment divisions. F-102 NYLIAC VARIABLE ANNUITY SEPARATE ACCOUNT-III (This page intentionally left blank) F-103 NOTES TO FINANCIAL STATEMENTS (CONTINUED) NOTE 6--Financial Highlights (Net Assets and Units Outstanding in 000's): --------------------------------------------------------------------------------
MAINSTAY VP MAINSTAY VP BALANCED-- BOND-- SERVICE CLASS SERVICE CLASS ---------------------------- ------------------------------------------------ 2007 2006 2005 2007 2006 2005 2004 2003 ------------------------------------------------------------------------------ SERIES I POLICIES (a) Net Assets......................... $43,180 $46,803 $32,603 $17,119 $13,611 $11,334 $ 7,474 $2,929 Units Outstanding.................. 3,754 4,111 3,115 1,553 1,297 1,110 737 296 Variable Accumulation Unit Value... $ 11.51 $ 11.38 $ 10.46 $ 10.99 $ 10.49 $ 10.20 $ 10.15 $ 9.91 Total Return....................... 1.1% 8.9% 4.6% 4.8% 2.8% 0.5% 2.4% (0.9%) Investment Income Ratio............ 2.0% 2.0% 1.7% 3.8% 1.1% 3.7% 4.8% 13.3% SERIES II POLICIES (b) Net Assets......................... $ 3,820 $ 3,074 $ 1,467 $ 4,131 $ 858 $ 349 $ 5 $ -- Units Outstanding.................. 334 272 136 373 83 35 1 -- Variable Accumulation Unit Value... $ 11.43 $ 11.32 $ 10.41 $ 10.80 $ 10.33 $ 10.06 $ 10.02 $ -- Total Return....................... 1.0% 8.7% 4.1% 4.6% 2.7% 0.3% 0.2% -- Investment Income Ratio............ 2.2% 2.2% 3.0% 5.9% 1.4% 7.8% 48.1% -- SERIES III POLICIES (c) Net Assets......................... $33,230 $29,963 $19,146 $27,639 $24,795 $24,637 $19,603 $6,344 Units Outstanding.................. 2,897 2,638 1,825 2,528 2,380 2,427 1,936 640 Variable Accumulation Unit Value... $ 11.45 $ 11.35 $ 10.44 $ 10.90 $ 10.42 $ 10.15 $ 10.12 $ 9.91 Total Return....................... 0.9% 8.7% 4.4% 4.6% 2.6% 0.3% 2.2% (0.9%) Investment Income Ratio............ 2.0% 2.0% 2.2% 3.7% 1.0% 3.4% 4.8% 17.1% SERIES IV POLICIES (d) Net Assets......................... $31,073 $24,827 $13,881 $31,506 $26,094 $23,266 $16,738 $5,867 Units Outstanding.................. 2,704 2,181 1,320 2,865 2,488 2,275 1,649 592 Variable Accumulation Unit Value... $ 11.50 $ 11.38 $ 10.45 $ 10.97 $ 10.48 $ 10.19 $ 10.15 $ 9.92 Total Return....................... 1.1% 8.8% 4.5% 4.7% 2.8% 0.4% 2.3% (0.8%) Investment Income Ratio............ 2.1% 2.1% 2.3% 3.7% 1.1% 3.5% 5.0% 15.6% SERIES V POLICIES (e) Net Assets......................... $ 2,238 $ 2,054 $ 1,509 $ 3,466 $ 2,662 $ 2,429 $ 1,362 $ 407 Units Outstanding.................. 196 181 144 323 260 242 136 41 Variable Accumulation Unit Value... $ 11.41 $ 11.34 $ 10.46 $ 10.70 $ 10.26 $ 10.02 $ 10.02 $ 9.83 Total Return....................... 0.7% 8.4% 4.6% 4.3% 2.4% -- 1.9% (1.7%) Investment Income Ratio............ 2.0% 2.2% 1.8% 3.9% 1.0% 3.7% 5.2% 14.8% SERIES VI POLICIES (f) Net Assets......................... $23,879 $22,364 $13,375 $20,338 $15,506 $14,340 $ 9,200 $3,343 Units Outstanding.................. 2,093 1,975 1,275 1,878 1,497 1,415 912 338 Variable Accumulation Unit Value... $ 11.41 $ 11.32 $ 10.43 $ 10.81 $ 10.36 $ 10.11 $ 10.09 $ 9.89 Total Return....................... 0.8% 8.5% 4.3% 4.4% 2.5% 0.1% 2.0% (1.1%) Investment Income Ratio............ 2.0% 2.1% 2.2% 4.0% 1.0% 3.7% 5.2% 14.5%
Not all investment divisions are available under all policies. Annualized percentages are shown for the Investment Income Ratio for all investment divisions in all periods. Charges and fees levied by NYLIAC are disclosed in Note 3. During the year that an individual division commenced operations, Total Return is calculated from the date of commencement through the end of the year. (a) Expenses as a percent of average variable accumulation value are 1.40%, excluding expenses of the underlying funds, surrender charges, policy service charges and charges for transferring funds between investment divisions. (b) Expenses as a percent of average variable accumulation value are 1.55%, excluding expenses of the underlying funds, policy service charges and charges for transferring funds between investment divisions. (c) Expenses as a percent of average variable accumulation value are 1.60%, excluding expenses of the underlying funds, surrender charges, policy service charges and charges for transferring funds between investment divisions. (d) Expenses as a percent of average variable accumulation value are 1.45%, excluding expenses of the underlying funds, surrender charges, policy service charges and charges for transferring funds between investment divisions. (e) Expenses as a percent of average variable accumulation value are 1.85%, excluding expenses of the underlying funds, surrender charges, policy service charges and charges for transferring funds between investment divisions. (f) Expenses as a percent of average variable accumulation value are 1.75%, excluding expenses of the underlying funds, surrender charges, policy service charges and charges for transferring funds between investment divisions. F-104 NYLIAC VARIABLE ANNUITY SEPARATE ACCOUNT-III --------------------------------------------------------------------------------
MAINSTAY VP MAINSTAY VP MAINSTAY VP CONSERVATIVE CAPITAL APPRECIATION-- COMMON STOCK-- ALLOCATION-- SERVICE CLASS SERVICE CLASS SERVICE CLASS ------------------------------------------------ ------------------------------------------------ ------------------ 2007 2006 2005 2004 2003 2007 2006 2005 2004 2003 2007 2006 ---------------------------------------------------------------------------------------------------------------------- $12,301 $10,744 $ 9,595 $ 7,459 $2,760 $11,644 $ 9,997 $ 7,104 $ 4,810 $1,842 $33,968 $17,229 888 859 788 653 248 745 662 539 387 162 3,010 1,612 $ 13.83 $ 12.51 $ 12.17 $ 11.42 $11.15 $ 15.61 $ 15.09 $ 13.17 $ 12.44 $11.40 $ 11.28 $ 10.66 10.6% 2.7% 6.6% 2.5% 11.5% 3.4% 14.6% 5.9% 9.1% 14.0% 5.7% 6.6% -- 0.2% -- 0.1% 0.5% 1.1% 0.5% 1.0% 1.6% 3.7% 3.3% 1.9% $ 601 $ 208 $ 78 $ 6 $ -- $ 1,029 $ 384 $ 34 $ -- $ -- $ 9,873 $ 1,967 48 18 7 1 -- 82 32 3 -- -- 879 179 $ 12.43 $ 11.26 $ 10.98 $ 10.31 $ -- $ 12.45 $ 12.05 $ 10.54 $ 10.00 $ -- $ 11.21 $ 10.62 10.4% 2.6% 6.4% 3.1% -- 3.3% 14.4% 5.4% -- -- 5.6% 6.2% -- 0.2% -- 0.8% -- 1.3% 0.8% 2.7% -- -- 4.7% 2.0% $16,119 $16,850 $17,835 $16,081 $5,334 $15,905 $15,284 $12,796 $10,274 $3,094 $25,713 $ 9,793 1,164 1,341 1,456 1,396 474 1,032 1,021 981 832 273 2,285 919 $ 13.86 $ 12.56 $ 12.25 $ 11.52 $11.26 $ 15.39 $ 14.91 $ 13.04 $ 12.34 $11.34 $ 11.23 $ 10.65 10.3% 2.5% 6.4% 2.2% 12.6% 3.2% 14.4% 5.7% 8.9% 13.4% 5.5% 6.5% -- 0.2% -- 0.1% 0.6% 1.1% 0.4% 0.9% 1.7% 4.1% 3.6% 1.9% $11,935 $11,896 $11,771 $10,571 $4,522 $21,137 $17,491 $14,034 $10,070 $3,340 $21,458 $ 7,239 865 953 968 926 406 1,358 1,161 1,063 810 293 1,906 681 $ 13.79 $ 12.48 $ 12.16 $ 11.41 $11.14 $ 15.57 $ 15.06 $ 13.15 $ 12.43 $11.40 $ 11.19 $ 10.58 10.5% 2.7% 6.6% 2.4% 11.4% 3.4% 14.5% 5.8% 9.0% 14.0% 5.7% 5.8% -- 0.2% -- 0.1% 0.5% 1.1% 0.4% 0.9% 1.7% 3.4% 3.6% 2.3% $ 517 $ 553 $ 554 $ 429 $ 86 $ 560 $ 449 $ 309 $ 213 $ 38 $ 2,745 $ 962 39 46 47 38 8 37 30 24 17 3 246 91 $ 13.37 $ 12.14 $ 11.88 $ 11.20 $10.98 $ 15.22 $ 14.78 $ 12.96 $ 12.29 $11.32 $ 11.15 $ 10.59 10.1% 2.2% 6.1% 2.0% 9.8% 3.0% 14.1% 5.4% 8.6% 13.2% 5.3% 5.9% -- 0.2% -- 0.1% 1.3% 1.1% 0.5% 0.9% 1.6% 2.4% 3.8% 2.9% $10,236 $11,233 $11,667 $ 8,794 $2,186 $12,001 $10,391 $ 7,321 $ 5,161 $1,484 $23,484 $ 8,859 752 909 967 774 197 781 697 561 417 130 2,114 837 $ 13.61 $ 12.35 $ 12.06 $ 11.36 $11.12 $ 15.36 $ 14.90 $ 13.05 $ 12.37 $11.38 $ 11.10 $ 10.54 10.2% 2.4% 6.2% 2.1% 11.2% 3.1% 14.2% 5.5% 8.7% 13.8% 5.4% 5.4% -- 0.2% -- 0.1% 0.5% 1.1% 0.5% 1.0% 1.8% 3.4% 3.8% 2.4%
F-105 NOTES TO FINANCIAL STATEMENTS (CONTINUED) NOTE 6--Financial Highlights (Net Assets and Units Outstanding in 000's) (Continued): --------------------------------------------------------------------------------
MAINSTAY VP MAINSTAY VP CONVERTIBLE-- DEVELOPING GROWTH-- SERVICE CLASS SERVICE CLASS ------------------------------------------- ------------------------------------------- 2007 2006 2005 2004 2003 2007 2006 2005 2004 2003 ---------------------------------------------------------------------------------------- SERIES I POLICIES (a) Net Assets......................... $20,596 $16,277 $13,293 $10,142 $3,817 $ 8,014 $4,675 $3,145 $1,949 $ 637 Units Outstanding.................. 1,392 1,248 1,105 884 347 404 316 235 161 55 Variable Accumulation Unit Value... $ 14.77 $ 13.07 $ 12.03 $ 11.48 $10.99 $ 19.79 $14.78 $13.34 $12.11 $11.63 Total Return....................... 13.0% 8.6% 4.9% 4.4% 9.9% 33.9% 10.8% 10.2% 4.1% 16.3% Investment Income Ratio............ 2.2% 2.4% 1.5% 2.4% 8.3% -- -- -- -- -- SERIES II POLICIES (b) Net Assets......................... $ 3,778 $ 1,298 $ 358 $ 24 $ -- $ 1,216 $ 151 $ 45 $ 3 $ -- Units Outstanding.................. 282 113 34 2 -- 74 12 4 -- -- Variable Accumulation Unit Value... $ 12.94 $ 11.47 $ 10.58 $ 10.11 $ -- $ 16.27 $12.17 $11.00 $10.00 $ -- Total Return....................... 12.8% 8.4% 4.7% 1.1% -- 33.7% 10.6% 10.0% -- -- Investment Income Ratio............ 2.9% 3.2% 4.8% 58.1% -- -- -- -- -- -- SERIES III POLICIES (c) Net Assets......................... $33,759 $28,651 $25,860 $23,424 $7,798 $10,746 $7,058 $6,081 $4,769 $1,458 Units Outstanding.................. 2,296 2,198 2,151 2,039 707 555 487 465 400 127 Variable Accumulation Unit Value... $ 14.70 $ 13.03 $ 12.02 $ 11.49 $11.03 $ 19.36 $14.49 $13.11 $11.92 $11.47 Total Return....................... 12.8% 8.4% 4.7% 4.2% 10.3% 33.6% 10.6% 10.0% 3.9% 14.7% Investment Income Ratio............ 2.2% 2.3% 1.4% 2.5% 9.0% -- -- -- -- -- SERIES IV POLICIES (d) Net Assets......................... $37,117 $30,765 $25,647 $20,014 $7,040 $10,779 $6,753 $5,606 $4,310 $1,358 Units Outstanding.................. 2,529 2,370 2,141 1,754 644 542 458 421 357 117 Variable Accumulation Unit Value... $ 14.66 $ 12.98 $ 11.96 $ 11.41 $10.94 $ 19.73 $14.74 $13.31 $12.09 $11.62 Total Return....................... 12.9% 8.6% 4.8% 4.3% 9.4% 33.8% 10.7% 10.1% 4.1% 16.2% Investment Income Ratio............ 2.2% 2.4% 1.5% 2.5% 8.5% -- -- -- -- -- SERIES V POLICIES (e) Net Assets......................... $ 2,407 $ 1,829 $ 1,608 $ 1,466 $ 533 $ 630 $ 266 $ 232 $ 170 $ 64 Units Outstanding.................. 167 143 136 129 49 33 19 18 14 6 Variable Accumulation Unit Value... $ 14.39 $ 12.80 $ 11.84 $ 11.34 $10.91 $ 19.07 $14.31 $12.97 $11.83 $11.41 Total Return....................... 12.5% 8.1% 4.4% 3.9% 9.1% 33.3% 10.3% 9.7% 3.6% 14.1% Investment Income Ratio............ 2.2% 2.3% 1.4% 2.4% 9.5% -- -- -- -- -- SERIES VI POLICIES (f) Net Assets......................... $25,017 $19,713 $16,730 $12,642 $3,430 $ 8,745 $4,415 $3,248 $2,228 $ 721 Units Outstanding.................. 1,738 1,545 1,418 1,120 316 441 298 242 182 61 Variable Accumulation Unit Value... $ 14.37 $ 12.76 $ 11.79 $ 11.28 $10.85 $ 19.74 $14.80 $13.40 $12.21 $11.77 Total Return....................... 12.6% 8.2% 4.5% 4.0% 8.5% 33.4% 10.4% 9.8% 3.7% 17.7% Investment Income Ratio............ 2.2% 2.4% 1.5% 2.8% 9.2% -- -- -- -- --
Not all investment divisions are available under all policies. Annualized percentages are shown for the Investment Income Ratio for all investment divisions in all periods. Charges and fees levied by NYLIAC are disclosed in Note 3. During the year that an individual division commenced operations, Total Return is calculated from the date of commencement through the end of the year. (a) Expenses as a percent of average variable accumulation value are 1.40%, excluding expenses of the underlying funds, surrender charges, policy service charges and charges for transferring funds between investment divisions. (b) Expenses as a percent of average variable accumulation value are 1.55%, excluding expenses of the underlying funds, policy service charges and charges for transferring funds between investment divisions. (c) Expenses as a percent of average variable accumulation value are 1.60%, excluding expenses of the underlying funds, surrender charges, policy service charges and charges for transferring funds between investment divisions. (d) Expenses as a percent of average variable accumulation value are 1.45%, excluding expenses of the underlying funds, surrender charges, policy service charges and charges for transferring funds between investment divisions. (e) Expenses as a percent of average variable accumulation value are 1.85%, excluding expenses of the underlying funds, surrender charges, policy service charges and charges for transferring funds between investment divisions. (f) Expenses as a percent of average variable accumulation value are 1.75%, excluding expenses of the underlying funds, surrender charges, policy service charges and charges for transferring funds between investment divisions. F-106 NYLIAC VARIABLE ANNUITY SEPARATE ACCOUNT-III --------------------------------------------------------------------------------
MAINSTAY VP MAINSTAY VP MAINSTAY VP FLOATING RATE-- GOVERNMENT-- GROWTH ALLOCATION SERVICE CLASS SERVICE CLASS SERVICE CLASS ---------------------------- ------------------------------------------------ ------------------ 2007 2006 2005 2007 2006 2005 2004 2003 2007 2006 -------------------------------------------------------------------------------------------------- $50,519 $66,344 $36,518 $12,747 $10,264 $ 8,799 $ 6,080 $2,651 $31,812 $16,922 4,749 6,301 3,612 1,190 1,005 881 614 272 2,631 1,524 $ 10.62 $ 10.52 $ 10.10 $ 10.71 $ 10.21 $ 9.97 $ 9.91 $ 9.75 $ 12.03 $ 11.08 0.9% 4.2% 1.0% 4.9% 2.4% 0.7% 1.6% (2.5%) 8.6% 10.8% 6.3% 6.1% 4.5% 5.0% 0.9% 3.6% 5.6% 14.3% 1.2% 1.4% $14,728 $ 8,414 $ 4,001 $ 2,056 $ 436 $ 316 $ 5 $ -- $ 1,602 $ 571 1,383 797 373 177 42 30 -- -- 138 53 $ 10.63 $ 10.56 $ 10.14 $ 10.78 $ 10.28 $ 10.06 $ 10.01 $ -- $ 11.64 $ 10.73 0.7% 4.1% 1.4% 4.8% 2.2% 0.5% 0.1% -- 8.4% 7.3% 6.3% 6.1% 4.9% 6.7% 1.0% 6.8% 86.3% -- 1.4% 1.6% $51,296 $41,204 $13,041 $18,224 $17,078 $16,243 $12,875 $4,087 $16,106 $ 7,010 4,851 3,923 1,272 1,723 1,691 1,645 1,310 422 1,369 646 $ 10.56 $ 10.49 $ 10.08 $ 10.57 $ 10.09 $ 9.88 $ 9.83 $ 9.69 $ 11.76 $ 10.85 0.7% 4.0% 0.8% 4.7% 2.1% 0.5% 1.4% (3.1%) 8.4% 8.5% 6.3% 6.2% 4.7% 4.9% 0.9% 3.3% 5.7% 18.2% 1.3% 1.4% $52,122 $35,265 $10,796 $19,355 $16,646 $14,766 $11,256 $4,147 $19,362 $11,086 4,908 3,353 1,052 1,804 1,630 1,481 1,136 425 1,606 999 $ 10.60 $ 10.52 $ 10.09 $ 10.70 $ 10.20 $ 9.97 $ 9.91 $ 9.76 $ 12.02 $ 11.07 0.8% 4.2% 0.9% 4.9% 2.3% 0.6% 1.6% (2.4%) 8.6% 10.7% 6.3% 6.1% 4.8% 4.8% 0.9% 3.4% 5.6% 16.5% 1.2% 1.4% $ 3,333 $ 3,441 $ 1,686 $ 2,733 $ 1,626 $ 1,257 $ 706 $ 421 $ 999 $ 686 312 318 164 260 162 127 72 43 86 64 $ 10.69 $ 10.64 $ 10.25 $ 10.51 $ 10.06 $ 9.87 $ 9.85 $ 9.74 $ 11.64 $ 10.77 0.4% 3.8% 2.5% 4.5% 1.9% 0.2% 1.2% (2.6%) 8.1% 7.7% 6.3% 6.1% 4.7% 5.6% 1.0% 3.8% 5.1% 14.0% 1.1% 1.2% $33,142 $25,234 $11,829 $13,450 $ 9,551 $ 8,125 $ 4,800 $1,800 $14,582 $ 5,801 3,133 2,411 1,145 1,276 948 818 487 185 1,252 511 $ 10.58 $ 10.52 $ 10.13 $ 10.54 $ 10.08 $ 9.88 $ 9.85 $ 9.73 $ 11.64 $ 10.76 0.5% 3.9% 1.3% 4.6% 2.0% 0.3% 1.3% (2.7%) 8.2% 7.6% 6.3% 6.1% 4.8% 5.2% 0.9% 3.8% 5.6% 16.2% 1.3% 1.6%
F-107 NOTES TO FINANCIAL STATEMENTS (CONTINUED) NOTE 6--Financial Highlights (Net Assets and Units Outstanding in 000's) (Continued): --------------------------------------------------------------------------------
MAINSTAY VP HIGH YIELD CORPORATE BOND-- SERVICE CLASS ------------------------------------------------ 2007 2006 2005 2004 2003 ------------------------------------------------ SERIES I POLICIES (a) Net Assets......................... $ 76,442 $ 65,778 $ 50,262 $ 33,434 $ 10,501 Units Outstanding.................. 5,387 4,654 3,920 2,643 920 Variable Accumulation Unit Value... $ 14.20 $ 14.12 $ 12.81 $ 12.65 $ 11.41 Total Return....................... 0.6% 10.2% 1.2% 10.9% 14.1% Investment Income Ratio............ 6.8% 2.0% 6.8% 10.1% 26.0% SERIES II POLICIES (b) Net Assets......................... $ 13,752 $ 6,351 $ 2,500 $ 64 $ -- Units Outstanding.................. 1,206 552 242 6 -- Variable Accumulation Unit Value... $ 11.38 $ 11.32 $ 10.29 $ 10.18 $ -- Total Return....................... 0.5% 10.0% 1.1% 1.8% -- Investment Income Ratio............ 7.9% 2.8% 12.6% 87.4% -- SERIES III POLICIES (c) Net Assets......................... $135,741 $134,191 $117,498 $94,871 $28,302 Units Outstanding.................. 9,684 9,605 9,264 7,556 2,495 Variable Accumulation Unit Value... $ 14.01 $ 13.95 $ 12.69 $ 12.56 $ 11.35 Total Return....................... 0.4% 10.0% 1.0% 10.7% 13.5% Investment Income Ratio............ 6.6% 1.9% 6.4% 10.2% 30.0% SERIES IV POLICIES (d) Net Assets......................... $138,150 $123,311 $103,496 $76,786 $25,512 Units Outstanding.................. 9,688 8,698 8,052 6,041 2,224 Variable Accumulation Unit Value... $ 14.25 $ 14.17 $ 12.86 $ 12.71 $ 11.47 Total Return....................... 0.6% 10.1% 1.2% 10.8% 14.7% Investment Income Ratio............ 6.8% 1.9% 6.4% 10.0% 26.4% SERIES V POLICIES (e) Net Assets......................... $ 11,504 $ 12,883 $ 11,657 $ 8,737 $ 2,901 Units Outstanding.................. 827 929 922 697 255 Variable Accumulation Unit Value... $ 13.90 $ 13.87 $ 12.64 $ 12.54 $ 11.36 Total Return....................... 0.2% 9.7% 0.8% 10.4% 13.6% Investment Income Ratio............ 6.1% 1.8% 6.5% 10.2% 27.0% SERIES VI POLICIES (f) Net Assets......................... $ 91,960 $ 81,548 $ 64,705 $39,920 $ 9,211 Units Outstanding.................. 6,578 5,835 5,086 3,173 809 Variable Accumulation Unit Value... $ 13.98 $ 13.94 $ 12.69 $ 12.58 $ 11.39 Total Return....................... 0.3% 9.8% 0.9% 10.5% 13.9% Investment Income Ratio............ 6.7% 2.0% 7.2% 11.7% 29.6%
Not all investment divisions are available under all policies. Annualized percentages are shown for the Investment Income Ratio for all investment divisions in all periods. Charges and fees levied by NYLIAC are disclosed in Note 3. During the year that an individual division commenced operations, Total Return is calculated from the date of commencement through the end of the year. (a) Expenses as a percent of average variable accumulation value are 1.40%, excluding expenses of the underlying funds, surrender charges, policy service charges and charges for transferring funds between investment divisions. (b) Expenses as a percent of average variable accumulation value are 1.55%, excluding expenses of the underlying funds, policy service charges and charges for transferring funds between investment divisions. (c) Expenses as a percent of average variable accumulation value are 1.60%, excluding expenses of the underlying funds, surrender charges, policy service charges and charges for transferring funds between investment divisions. (d) Expenses as a percent of average variable accumulation value are 1.45%, excluding expenses of the underlying funds, surrender charges, policy service charges and charges for transferring funds between investment divisions. (e) Expenses as a percent of average variable accumulation value are 1.85%, excluding expenses of the underlying funds, surrender charges, policy service charges and charges for transferring funds between investment divisions. (f) Expenses as a percent of average variable accumulation value are 1.75%, excluding expenses of the underlying funds, surrender charges, policy service charges and charges for transferring funds between investment divisions. F-108 NYLIAC VARIABLE ANNUITY SEPARATE ACCOUNT-III --------------------------------------------------------------------------------
MAINSTAY VP MAINSTAY VP ICAP SELECT EQUITY-- INCOME & GROWTH-- SERVICE CLASS SERVICE CLASS ------------------------------------------------ ------------------------------------------------ 2007 2006 2005 2004 2003 2007 2006 2005 2004 2003 -------------------------------------------------------------------------------------------------- $18,509 $ 6,252 $4,281 $3,119 $ 821 $-- $5,402 $3,830 $2,450 $ 503 1,166 413 332 251 73 -- 372 302 200 45 $ 15.87 $ 15.10 $12.87 $12.40 $11.32 $-- $14.53 $12.64 $12.27 $11.07 5.1% 17.3% 3.8% 9.6% 13.2% -- 14.9% 3.0% 10.8% 10.7% 0.6% 0.1% 0.9% 1.2% 2.7% -- 0.5% 1.2% 2.8% 5.6% $ 4,483 $ 327 $ 37 $ -- $ -- $-- $ 613 $ 311 $ 13 $ -- 340 27 3 -- -- -- 51 30 1 -- $ 12.94 $ 12.33 $10.53 $10.00 $ -- $-- $11.97 $10.43 $10.14 $ -- 5.0% 17.2% 5.3% -- -- -- 14.8% 2.9% 1.4% -- 0.7% 0.3% 3.1% -- -- -- 0.6% 1.6% 63.6% -- $25,973 $ 9,830 $7,357 $6,678 $1,807 $-- $9,524 $8,051 $5,324 $1,437 1,652 656 576 541 160 -- 641 622 423 126 $ 15.70 $ 14.97 $12.78 $12.34 $11.29 $-- $14.84 $12.94 $12.59 $11.38 4.9% 17.1% 3.5% 9.3% 12.9% -- 14.7% 2.8% 10.6% 13.8% 0.6% 0.1% 0.8% 1.1% 2.9% -- 0.5% 1.2% 2.6% 6.1% $30,523 $11,038 $7,259 $5,699 $2,039 $-- $9,406 $7,628 $5,136 $1,389 1,926 732 563 461 181 -- 634 590 410 123 $ 15.80 $ 15.04 $12.82 $12.37 $11.29 $-- $14.83 $12.91 $12.53 $11.32 5.1% 17.3% 3.7% 9.5% 12.9% -- 14.9% 3.0% 10.8% 13.2% -- -- 0.8% 1.1% 2.8% -- 0.5% 1.1% 2.5% 5.3% $ 2,136 $ 962 $ 686 $ 551 $ 133 $-- $ 826 $ 553 $ 292 $ 24 138 65 54 45 12 -- 57 44 24 2 $ 15.43 $ 14.75 $12.62 $12.22 $11.21 $-- $14.49 $12.67 $12.35 $11.19 4.6% 16.8% 3.3% 9.1% 12.1% -- 14.4% 2.6% 10.3% 11.9% -- -- 0.8% 1.2% 5.2% -- 0.6% 1.3% 3.0% 4.4% $23,613 $ 7,661 $4,536 $3,804 $ 907 $-- $8,151 $6,954 $3,499 $ 600 1,513 514 353 309 80 -- 559 546 282 53 $ 15.60 $ 14.89 $12.73 $12.32 $11.28 $-- $14.59 $12.73 $12.40 $11.23 4.7% 16.9% 3.4% 9.2% 12.8% -- 14.5% 2.7% 10.4% 12.3% 0.6% 0.2% 0.8% 1.0% 2.8% -- 0.5% 1.3% 3.2% 5.3%
F-109 NOTES TO FINANCIAL STATEMENTS (CONTINUED) NOTE 6--Financial Highlights (Net Assets and Units Outstanding in 000's) (Continued): --------------------------------------------------------------------------------
MAINSTAY VP INTERNATIONAL EQUITY-- SERVICE CLASS ------------------------------------------- 2007 2006 2005 2004 2003 ------------------------------------------- SERIES I POLICIES (a) Net Assets......................... $34,716 $24,928 $12,520 $ 5,975 $1,340 Units Outstanding.................. 1,806 1,339 869 441 114 Variable Accumulation Unit Value... $ 19.19 $ 18.59 $ 14.39 $ 13.55 $11.74 Total Return....................... 3.2% 29.2% 6.3% 15.4% 17.4% Investment Income Ratio............ 0.6% 0.2% 2.0% 1.3% 6.9% SERIES II POLICIES (b) Net Assets......................... $ 5,359 $ 2,397 $ 626 $ 8 $ -- Units Outstanding.................. 372 172 56 1 -- Variable Accumulation Unit Value... $ 14.38 $ 13.95 $ 10.82 $ 10.19 $ -- Total Return....................... 3.1% 29.0% 6.1% 1.9% -- Investment Income Ratio............ 0.7% 0.3% 4.1% 10.9% -- SERIES III POLICIES (c) Net Assets......................... $50,876 $44,302 $26,887 $16,793 $2,933 Units Outstanding.................. 2,712 2,432 1,907 1,262 254 Variable Accumulation Unit Value... $ 18.73 $ 18.18 $ 14.11 $ 13.30 $11.55 Total Return....................... 3.0% 28.9% 6.0% 15.2% 15.5% Investment Income Ratio............ 0.6% 0.2% 1.8% 1.4% 8.0% SERIES IV POLICIES (d) Net Assets......................... $62,627 $50,013 $26,069 $13,748 $2,849 Units Outstanding.................. 3,303 2,724 1,829 1,027 246 Variable Accumulation Unit Value... $ 18.93 $ 18.35 $ 14.21 $ 13.38 $11.60 Total Return....................... 3.2% 29.1% 6.2% 15.4% 16.0% Investment Income Ratio............ 0.6% 0.2% 2.0% 1.3% 6.6% SERIES V POLICIES (e) Net Assets......................... $ 4,100 $ 2,996 $ 1,609 $ 684 $ 78 Units Outstanding.................. 226 170 117 53 7 Variable Accumulation Unit Value... $ 18.11 $ 17.63 $ 13.71 $ 12.96 $11.28 Total Return....................... 2.8% 28.6% 5.8% 14.9% 12.8% Investment Income Ratio............ 0.6% 0.2% 2.2% 1.5% 11.7% SERIES VI POLICIES (f) Net Assets......................... $43,867 $37,864 $17,356 $ 7,562 $1,381 Units Outstanding.................. 2,390 2,118 1,251 578 121 Variable Accumulation Unit Value... $ 18.34 $ 17.83 $ 13.85 $ 13.08 $11.37 Total Return....................... 2.9% 28.7% 5.9% 15.0% 13.7% Investment Income Ratio............ 0.5% 0.2% 2.1% 1.5% 7.6%
Not all investment divisions are available under all policies. Annualized percentages are shown for the Investment Income Ratio for all investment divisions in all periods. Charges and fees levied by NYLIAC are disclosed in Note 3. During the year that an individual division commenced operations, Total Return is calculated from the date of commencement through the end of the year. (a) Expenses as a percent of average variable accumulation value are 1.40%, excluding expenses of the underlying funds, surrender charges, policy service charges and charges for transferring funds between investment divisions. (b) Expenses as a percent of average variable accumulation value are 1.55%, excluding expenses of the underlying funds, policy service charges and charges for transferring funds between investment divisions. (c) Expenses as a percent of average variable accumulation value are 1.60%, excluding expenses of the underlying funds, surrender charges, policy service charges and charges for transferring funds between investment divisions. (d) Expenses as a percent of average variable accumulation value are 1.45%, excluding expenses of the underlying funds, surrender charges, policy service charges and charges for transferring funds between investment divisions. (e) Expenses as a percent of average variable accumulation value are 1.85%, excluding expenses of the underlying funds, surrender charges, policy service charges and charges for transferring funds between investment divisions. (f) Expenses as a percent of average variable accumulation value are 1.75%, excluding expenses of the underlying funds, surrender charges, policy service charges and charges for transferring funds between investment divisions. F-110 NYLIAC VARIABLE ANNUITY SEPARATE ACCOUNT-III --------------------------------------------------------------------------------
MAINSTAY VP MAINSTAY VP LARGE CAP GROWTH-- MID CAP CORE-- SERVICE CLASS SERVICE CLASS ------------------------------------------------ ------------------------------------------------ 2007 2006 2005 2004 2003 2007 2006 2005 2004 2003 -------------------------------------------------------------------------------------------------- $ 8,089 $4,851 $3,045 $2,041 $ 820 $22,217 $18,032 $ 11,966 $ 5,876 $1,477 586 419 278 191 74 1,176 986 740 414 125 $ 13.79 $11.56 $10.96 $10.67 $11.11 $ 18.88 $ 18.28 $ 16.17 $ 14.19 $11.80 19.4% 5.5% 2.7% (3.9%) 11.1% 3.3% 13.1% 14.0% 20.2% 18.0% -- -- -- 0.1% 0.4% 0.2% -- 0.5% 0.5% 1.2% $ 1,146 $ 295 $ 72 $ -- $ -- $ 2,509 $ 973 $ 349 $ 11 $ -- 77 25 6 -- -- 186 74 28 1 -- $ 14.21 $11.92 $11.32 $10.00 $ -- $ 13.51 $ 13.09 $ 11.60 $ 10.19 $ -- 19.2% 5.3% 13.2% -- -- 3.2% 12.9% 13.8% 1.9% -- -- -- -- -- -- 0.3% -- 1.1% 3.1% -- $12,888 $8,805 $6,797 $6,358 $2,737 $29,030 $27,464 $ 21,987 $13,092 $2,774 943 768 624 598 247 1,557 1,522 1,375 931 237 $ 13.65 $11.46 $10.89 $10.63 $11.08 $ 18.60 $ 18.04 $ 15.99 $ 14.06 $11.72 19.1% 5.3% 2.5% (4.1%) 10.8% 3.1% 12.8% 13.7% 20.0% 17.2% -- -- -- -- 0.4% 0.2% -- 0.4% 0.5% 1.4% $15,201 $9,704 $5,526 $5,116 $2,233 $33,257 $27,704 $19,6780 $10,128 $2,677 1,099 842 505 480 201 1,774 1,527 1,220 719 228 $ 13.75 $11.52 $10.93 $10.65 $11.09 $ 18.73 $ 18.14 $ 16.05 $ 14.09 $11.73 19.3% 5.4% 2.6% (4.0%) 10.9% 3.3% 13.0% 13.9% 20.1% 17.3% -- -- -- -- 0.3% 0.2% -- 0.5% 0.5% 1.2% $ 999 $ 613 $ 453 $ 272 $ 60 $ 2,168 $ 2,092 $ 1,543 $ 656 $ 183 76 55 43 26 6 117 116 96 47 16 $ 13.13 $11.05 $10.53 $10.30 $10.77 $ 18.51 $ 18.00 $ 15.99 $ 14.09 $11.78 18.8% 5.0% 2.2% (4.3%) 7.7% 2.8% 12.6% 13.5% 19.7% 17.8% -- -- -- 0.1% 0.5% 0.2% -- 0.5% 0.5% 3.0% $11,767 $6,145 $3,647 $2,723 $1,265 $26,914 $24,573 $ 18,737 $ 7,802 $1,319 865 538 337 257 114 1,465 1,376 1,183 560 113 $ 13.55 $11.39 $10.84 $10.59 $11.06 $ 18.37 $ 17.84 $ 15.83 $ 13.94 $11.64 18.9% 5.1% 2.3% (4.2%) 10.6% 2.9% 12.7% 13.6% 19.8% 16.4% -- -- -- 0.1% 0.3% 0.2% -- 0.5% 0.6% 1.4%
F-111 NOTES TO FINANCIAL STATEMENTS (CONTINUED) NOTE 6--Financial Highlights (Net Assets and Units Outstanding in 000's) (Continued): --------------------------------------------------------------------------------
MAINSTAY VP MAINSTAY VP MID CAP GROWTH-- MID CAP VALUE-- SERVICE CLASS SERVICE CLASS ------------------------------------------- ------------------------------------------- 2007 2006 2005 2004 2003 2007 2006 2005 2004 2003 ---------------------------------------------------------------------------------------- SERIES I POLICIES (a) Net Assets......................... $30,018 $23,982 $18,597 $ 9,510 $2,376 $27,197 $24,729 $18,099 $ 9,220 $2,399 Units Outstanding.................. 1,460 1,334 1,104 653 197 1,788 1,582 1,298 688 207 Variable Accumulation Unit Value... $ 20.52 $ 18.02 $ 16.77 $ 14.56 $12.07 $ 15.20 $ 15.64 $ 13.94 $ 13.41 $11.60 Total Return....................... 13.9% 7.4% 15.2% 20.6% 20.7% (2.8%) 12.2% 4.0% 15.6% 16.0% Investment Income Ratio............ -- -- -- -- -- 0.9% -- 0.7% 1.1% 3.4% SERIES II POLICIES (b) Net Assets......................... $ 1,922 $ 947 $ 598 $ 5 $ -- $ 2,489 $ 1,288 $ 522 $ 34 $ -- Units Outstanding.................. 133 75 51 1 -- 213 108 49 3 -- Variable Accumulation Unit Value... $ 14.37 $ 12.64 $ 11.78 $ 10.24 $ -- $ 11.62 $ 11.97 $ 10.69 $ 10.29 $ -- Total Return....................... 13.7% 7.3% 15.0% 2.4% -- (2.9%) 12.0% 3.8% 2.9% -- Investment Income Ratio............ -- -- -- -- -- 1.0% -- 1.1% 7.1% -- SERIES III POLICIES (c) Net Assets......................... $39,208 $35,786 $33,555 $21,257 $5,125 $42,801 $47,112 $41,554 $25,830 $6,443 Units Outstanding.................. 1,970 2,040 2,054 1,494 434 2,809 2,992 2,962 1,910 550 Variable Accumulation Unit Value... $ 19.93 $ 17.54 $ 16.35 $ 14.23 $11.82 $ 15.24 $ 15.71 $ 14.03 $ 13.52 $11.72 Total Return....................... 13.7% 7.2% 15.0% 20.4% 18.2% (3.0%) 12.0% 3.8% 15.4% 17.2% Investment Income Ratio............ -- -- -- -- -- 0.8% -- 0.7% 1.0% 3.8% SERIES IV POLICIES (d) Net Assets......................... $42,594 $37,892 $30,962 $17,454 $5,111 $49,929 $48,022 $38,107 $21,168 $5,125 Units Outstanding.................. 2,123 2,150 1,884 1,224 432 3,289 3,074 2,741 1,580 442 Variable Accumulation Unit Value... $ 20.07 $ 17.63 $ 16.42 $ 14.26 $11.83 $ 15.17 $ 15.61 $ 13.92 $ 13.40 $11.59 Total Return....................... 13.8% 7.4% 15.1% 20.5% 18.3% (2.8%) 12.1% 3.9% 15.6% 15.9% Investment Income Ratio............ -- -- -- -- -- 0.8% -- 0.7% 1.1% 3.5% SERIES V POLICIES (e) Net Assets......................... $ 1,637 $ 1,581 $ 1,475 $ 854 $ 186 $ 2,020 $ 2,264 $ 1,915 $ 833 $ 122 Units Outstanding.................. 84 92 92 61 16 136 148 140 63 11 Variable Accumulation Unit Value... $ 19.38 $ 17.10 $ 15.98 $ 13.94 $11.61 $ 14.83 $ 15.31 $ 13.71 $ 13.25 $11.51 Total Return....................... 13.4% 7.0% 14.7% 20.1% 16.1% (3.2%) 11.7% 3.5% 15.1% 15.1% Investment Income Ratio............ -- -- -- -- -- 0.8% -- 0.8% 1.2% 4.3% SERIES VI POLICIES (f) Net Assets......................... $34,534 $27,243 $24,736 $11,705 $2,941 $29,486 $30,700 $26,504 $14,398 $2,519 Units Outstanding.................. 1,710 1,531 1,485 808 244 1,974 1,988 1,915 1,080 218 Variable Accumulation Unit Value... $ 20.20 $ 17.80 $ 16.62 $ 14.48 $12.05 $ 14.96 $ 15.44 $ 13.81 $ 13.33 $11.57 Total Return....................... 13.5% 7.1% 14.8% 20.2% 20.5% (3.1%) 11.8% 3.6% 15.2% 15.7% Investment Income Ratio............ -- -- -- -- -- 0.8% -- 0.7% 1.3% 3.8%
Not all investment divisions are available under all policies. Annualized percentages are shown for the Investment Income Ratio for all investment divisions in all periods. Charges and fees levied by NYLIAC are disclosed in Note 3. During the year that an individual division commenced operations, Total Return is calculated from the date of commencement through the end of the year. (a) Expenses as a percent of average variable accumulation value are 1.40%, excluding expenses of the underlying funds, surrender charges, policy service charges and charges for transferring funds between investment divisions. (b) Expenses as a percent of average variable accumulation value are 1.55%, excluding expenses of the underlying funds, policy service charges and charges for transferring funds between investment divisions. (c) Expenses as a percent of average variable accumulation value are 1.60%, excluding expenses of the underlying funds, surrender charges, policy service charges and charges for transferring funds between investment divisions. (d) Expenses as a percent of average variable accumulation value are 1.45%, excluding expenses of the underlying funds, surrender charges, policy service charges and charges for transferring funds between investment divisions. (e) Expenses as a percent of average variable accumulation value are 1.85%, excluding expenses of the underlying funds, surrender charges, policy service charges and charges for transferring funds between investment divisions. (f) Expenses as a percent of average variable accumulation value are 1.75%, excluding expenses of the underlying funds, surrender charges, policy service charges and charges for transferring funds between investment divisions. F-112 NYLIAC VARIABLE ANNUITY SEPARATE ACCOUNT-III --------------------------------------------------------------------------------
MAINSTAY VP MAINSTAY VP MODERATE MODERATE GROWTH MAINSTAY VP ALLOCATION-- ALLOCATION-- S&P 500 INDEX-- SERVICE CLASS SERVICE CLASS SERVICE CLASS ------------------ ------------------ ------------------------------------------------ 2007 2006 2007 2006 2007 2006 2005 2004 2003 ---------------------------------------------------------------------------------------- $54,540 $30,214 $66,815 $35,349 $49,749 $43,645 $32,438 $20,964 $ 6,828 4,704 2,780 5,620 3,194 3,356 3,049 2,570 1,713 606 $ 11.59 $ 10.83 $ 11.87 $ 11.03 $ 14.82 $ 14.32 $ 12.61 $ 12.24 $ 11.26 7.0% 8.3% 7.6% 10.3% 3.5% 13.5% 3.0% 8.7% 12.6% 2.5% 1.8% 2.0% 1.7% 1.5% 0.4% 1.2% 2.1% 4.6% $ 8,563 $ 2,332 $ 7,034 $ 3,820 $ 3,402 $ 1,502 $ 621 $ 16 $ -- 748 215 593 353 275 126 61 2 -- $ 11.41 $ 10.68 $ 11.63 $ 10.82 $ 12.36 $ 11.96 $ 10.55 $ 10.25 $ -- 6.8% 6.8% 7.5% 8.2% 3.3% 13.4% 2.9% 2.5% -- 3.6% 1.7% 2.0% 4.3% 1.7% 0.5% 2.8% 17.1% -- $40,680 $21,672 $43,548 $24,900 $65,496 $70,399 $63,957 $51,775 $13,604 3,557 2,025 3,735 2,290 4,480 4,970 5,119 4,261 1,215 $ 11.41 $ 10.69 $ 11.66 $ 10.85 $ 14.62 $ 14.16 $ 12.49 $ 12.15 $ 11.20 6.7% 6.9% 7.4% 8.5% 3.3% 13.3% 2.8% 8.5% 12.0% 2.7% 1.9% 2.0% 1.7% 1.4% 0.4% 1.1% 2.1% 5.6% $44,835 $21,125 $42,215 $21,832 $67,132 $64,145 $51,108 $38,290 $11,688 3,890 1,962 3,572 1,981 4,544 4,488 4,057 3,132 1,038 $ 11.50 $ 10.76 $ 11.80 $ 10.97 $ 14.78 $ 14.29 $ 12.59 $ 12.23 $ 11.26 6.9% 7.6% 7.6% 9.7% 3.5% 13.5% 3.0% 8.6% 12.6% 2.7% 2.0% 2.1% 1.8% 1.4% 0.4% 1.2% 2.1% 4.6% $ 4,096 $ 1,827 $ 3,059 $ 1,782 $ 4,530 $ 4,013 $ 4,000 $ 2,782 $ 1,344 359 171 267 167 312 285 321 229 120 $ 11.40 $ 10.70 $ 11.44 $ 10.67 $ 14.53 $ 14.10 $ 12.48 $ 12.16 $ 11.24 6.5% 7.0% 7.1% 6.7% 3.0% 13.0% 2.6% 8.2% 12.4% 2.8% 2.0% 2.0% 1.7% 1.4% 0.4% 1.2% 1.8% 5.1% $31,222 $16,309 $36,880 $15,902 $42,623 $40,283 $31,482 $18,986 $ 4,649 2,742 1,526 3,163 1,411 2,922 2,848 2,514 1,560 414 $ 11.38 $ 10.68 $ 11.63 $ 10.85 $ 14.58 $ 14.14 $ 12.50 $ 12.17 $ 11.24 6.6% 6.8% 7.2% 8.5% 3.1% 13.2% 2.7% 8.3% 12.4% 2.6% 1.5% 2.1% 1.8% 1.4% 0.4% 1.3% 2.2% 5.0%
F-113 NOTES TO FINANCIAL STATEMENTS (CONTINUED) NOTE 6--Financial Highlights (Net Assets and Units Outstanding in 000's) (Continued): --------------------------------------------------------------------------------
MAINSTAY VP MAINSTAY VP SMALL CAP GROWTH-- TOTAL RETURN-- SERVICE CLASS SERVICE CLASS -------------------------------------------- ------------------------------------------- 2007 2006 2005 2004 2003 2007 2006 2005 2004 2003 ----------------------------------------------------------------------------------------- SERIES I POLICIES (a) Net Assets......................... $14,893 $14,783 $12,419 $ 7,815 $2,355 $10,000 $ 9,122 $ 7,820 $ 5,622 $1,835 Units Outstanding.................. 1,108 1,048 921 593 192 746 720 665 501 171 Variable Accumulation Unit Value... $ 13.43 $ 14.10 $ 13.48 $ 13.17 $12.24 $ 13.39 $ 12.66 $ 11.76 $ 11.23 $10.73 Total Return....................... (4.8%) 4.6% 2.4% 7.6% 22.4% 5.8% 7.7% 4.7% 4.6% 7.3% Investment Income Ratio............ -- -- -- -- -- 2.1% 0.5% 1.5% 2.2% 6.8% SERIES II POLICIES (b) Net Assets......................... $ 612 $ 359 $ 215 $ 6 $ -- $ 409 $ 161 $ 14 $ 1 $ -- Units Outstanding.................. 58 33 20 1 -- 34 14 1 -- -- Variable Accumulation Unit Value... $ 10.45 $ 10.99 $ 10.53 $ 10.30 $ -- $ 12.00 $ 11.37 $ 10.57 $ 10.11 $ -- Total Return....................... (4.9%) 4.4% 2.2% 3.0% -- 5.6% 7.6% 4.5% 1.1% -- Investment Income Ratio............ -- -- -- -- -- 2.8% 0.6% 2.2% -- -- SERIES III POLICIES (c) Net Assets......................... $17,582 $20,801 $20,401 $16,734 $4,735 $16,167 $17,200 $16,290 $13,524 $4,276 Units Outstanding.................. 1,312 1,475 1,509 1,265 384 1,219 1,372 1,394 1,209 399 Variable Accumulation Unit Value... $ 13.41 $ 14.11 $ 13.52 $ 13.23 $12.32 $ 13.26 $ 12.57 $ 11.69 $ 11.19 $10.71 Total Return....................... (5.0%) 4.4% 2.2% 7.4% 23.2% 5.5% 7.5% 4.5% 4.4% 7.1% Investment Income Ratio............ -- -- -- -- -- 2.0% 0.4% 1.4% 2.1% 8.3% SERIES IV POLICIES (d) Net Assets......................... $20,001 $21,824 $20,161 $14,487 $4,235 $11,398 $11,226 $10,004 $ 8,502 $3,248 Units Outstanding.................. 1,522 1,579 1,524 1,122 353 843 878 842 749 299 Variable Accumulation Unit Value... $ 13.15 $ 13.81 $ 13.21 $ 12.91 $12.01 $ 13.52 $ 12.79 $ 11.88 $ 11.35 $10.86 Total Return....................... (4.8%) 4.5% 2.3% 7.6% 20.1% 5.7% 7.6% 4.7% 4.6% 8.6% Investment Income Ratio............ -- -- -- -- -- 2.1% 0.5% 1.4% 2.1% 7.6% SERIES V POLICIES (e) Net Assets......................... $ 639 $ 835 $ 986 $ 635 $ 93 $ 686 $ 684 $ 636 $ 487 $ 159 Units Outstanding.................. 51 63 77 51 8 53 56 55 44 15 Variable Accumulation Unit Value... $ 12.62 $ 13.31 $ 12.78 $ 12.54 $11.71 $ 12.96 $ 12.31 $ 11.48 $ 11.01 $10.57 Total Return....................... (5.2%) 4.1% 1.9% 7.1% 17.1% 5.3% 7.2% 4.3% 4.2% 5.7% Investment Income Ratio............ -- -- -- -- -- 2.1% 0.4% 1.5% 2.2% 10.4% SERIES VI POLICIES (f) Net Assets......................... $11,585 $12,311 $13,093 $ 9,643 $2,201 $ 8,801 $ 8,848 $ 8,131 $ 6,070 $2,168 Units Outstanding.................. 877 884 980 736 180 678 715 706 552 205 Variable Accumulation Unit Value... $ 13.21 $ 13.92 $ 13.36 $ 13.10 $12.21 $ 12.99 $ 12.33 $ 11.49 $ 11.01 $10.56 Total Return....................... (5.1%) 4.2% 2.0% 7.2% 22.1% 5.4% 7.3% 4.4% 4.3% 5.6% Investment Income Ratio............ -- -- -- -- -- 2.0% 0.5% 1.5% 2.1% 7.3%
Not all investment divisions are available under all policies. Annualized percentages are shown for the Investment Income Ratio for all investment divisions in all periods. Charges and fees levied by NYLIAC are disclosed in Note 3. During the year that an individual division commenced operations, Total Return is calculated from the date of commencement through the end of the year. (a) Expenses as a percent of average variable accumulation value are 1.40%, excluding expenses of the underlying funds, surrender charges, policy service charges and charges for transferring funds between investment divisions. (b) Expenses as a percent of average variable accumulation value are 1.55%, excluding expenses of the underlying funds, policy service charges and charges for transferring funds between investment divisions. (c) Expenses as a percent of average variable accumulation value are 1.60%, excluding expenses of the underlying funds, surrender charges, policy service charges and charges for transferring funds between investment divisions. (d) Expenses as a percent of average variable accumulation value are 1.45%, excluding expenses of the underlying funds, surrender charges, policy service charges and charges for transferring funds between investment divisions. (e) Expenses as a percent of average variable accumulation value are 1.85%, excluding expenses of the underlying funds, surrender charges, policy service charges and charges for transferring funds between investment divisions. (f) Expenses as a percent of average variable accumulation value are 1.75%, excluding expenses of the underlying funds, surrender charges, policy service charges and charges for transferring funds between investment divisions. F-114 NYLIAC VARIABLE ANNUITY SEPARATE ACCOUNT-III --------------------------------------------------------------------------------
MAINSTAY VP ALGER AMERICAN SMALL VALUE-- CAPITALIZATION-- SERVICE CLASS CLASS S SHARES ------------------------------------------------ ------------------------------------------------ 2007 2006 2005 2004 2003 2007 2006 2005 2004 2003 -------------------------------------------------------------------------------------------------- $19,777 $17,301 $11,722 $ 8,003 $2,572 $12,944 $10,697 $ 5,850 $2,923 $ 671 1,274 1,121 888 633 223 592 564 364 210 55 $ 15.52 $ 15.44 $ 13.21 $ 12.64 $11.55 $ 21.83 $ 18.93 $ 16.04 $13.95 $12.16 0.5% 16.9% 4.5% 9.5% 15.5% 15.3% 18.1% 15.0% 14.7% 21.6% 1.5% 0.3% 1.2% 1.4% 5.3% -- -- -- -- -- $ 2,203 $ 868 $ 191 $ 6 $ -- $ 848 $ 404 $ 130 $ 7 $ -- 176 70 18 1 -- 52 29 11 1 -- $ 12.48 $ 12.44 $ 10.65 $ 10.21 $ -- $ 16.22 $ 14.09 $ 11.95 $10.41 $ -- 0.4% 16.7% 4.3% 2.1% -- 15.1% 17.9% 14.8% 4.1% -- 1.9% 0.4% 2.8% 15.5% -- -- -- -- -- -- $29,554 $30,643 $24,079 $19,389 $5,058 $16,110 $14,725 $ 9,680 $6,286 $1,576 1,929 2,003 1,841 1,546 440 745 783 609 452 130 $ 15.31 $ 15.27 $ 13.08 $ 12.54 $11.48 $ 21.63 $ 18.80 $ 15.95 $13.90 $12.15 0.3% 16.7% 4.3% 9.2% 14.8% 15.1% 17.8% 14.7% 14.4% 21.5% 1.4% 0.3% 1.1% 1.4% 6.3% -- -- -- -- -- $29,243 $27,446 $18,870 $14,111 $4,598 $21,172 $18,893 $10,949 $5,993 $1,594 1,862 1,753 1,409 1,101 392 977 1,003 685 432 132 $ 15.72 $ 15.64 $ 13.39 $ 12.82 $11.72 $ 21.69 $ 18.82 $ 15.95 $13.88 $12.11 0.5% 16.9% 4.4% 9.4% 17.2% 15.3% 18.0% 14.9% 14.6% 21.1% 1.5% 0.3% 1.2% 1.4% 5.3% -- -- -- -- -- $ 1,234 $ 989 $ 729 $ 544 $ 160 $ 538 $ 630 $ 457 $ 241 $ 22 81 65 56 43 14 26 34 29 18 2 $ 15.16 $ 15.15 $ 13.02 $ 12.51 $11.48 $ 21.09 $ 18.37 $ 15.63 $13.65 $11.96 0.1% 16.4% 4.0% 9.0% 14.8% 14.8% 17.5% 14.5% 14.2% 19.6% 1.5% 0.3% 1.2% 1.3% 7.5% -- -- -- -- -- $22,210 $21,934 $14,138 $ 8,534 $2,127 $12,425 $10,975 $ 5,548 $2,848 $ 495 1,453 1,438 1,074 679 185 578 587 348 205 41 $ 15.28 $ 15.25 $ 13.09 $ 12.57 $11.52 $ 21.50 $ 18.71 $ 15.90 $13.88 $12.15 0.2% 16.5% 4.1% 9.1% 15.2% 14.9% 17.6% 14.6% 14.3% 21.5% 1.4% 0.3% 1.3% 1.5% 5.9% -- -- -- -- --
F-115 NOTES TO FINANCIAL STATEMENTS (CONTINUED) NOTE 6--Financial Highlights (Net Assets and Units Outstanding in 000's) (Continued): --------------------------------------------------------------------------------
COLUMBIA SMALL CAP VALUE FUND, VARIABLE SERIES-- CLASS B -------------------------------------- 2007 2006 2005 2004 -------------------------------------- SERIES I POLICIES (a) Net Assets......................... $15,905 $16,552 $7,798 $ 521 Units Outstanding.................. 1,274 1,275 704 49 Variable Accumulation Unit Value... $ 12.48 $ 12.99 $11.03 $10.61 Total Return....................... (3.9%) 17.7% 4.0% 6.1% Investment Income Ratio............ 0.3% 0.4% -- 5.0% SERIES II POLICIES (b) Net Assets......................... $ 1,942 $ 1,030 $ 274 $ 7 Units Outstanding.................. 162 82 24 1 Variable Accumulation Unit Value... $ 12.01 $ 12.52 $10.66 $10.26 Total Return....................... (4.1%) 17.5% 3.9% 2.6% Investment Income Ratio............ 0.3% 0.4% -- 2.4% SERIES III POLICIES (c) Net Assets......................... $ 9,781 $11,725 $4,868 $ 304 Units Outstanding.................. 792 910 445 29 Variable Accumulation Unit Value... $ 12.35 $ 12.89 $10.97 $10.57 Total Return....................... (4.1%) 17.5% 3.8% 5.7% Investment Income Ratio............ 0.3% 0.4% -- 5.7% SERIES IV POLICIES (d) Net Assets......................... $13,314 $11,379 $5,433 $ 431 Units Outstanding.................. 1,073 880 495 41 Variable Accumulation Unit Value... $ 12.38 $ 12.90 $10.96 $10.54 Total Return....................... (4.0%) 17.6% 4.0% 5.4% Investment Income Ratio............ 0.3% 0.4% -- 5.6% SERIES V POLICIES (e) Net Assets......................... $ 782 $ 727 $ 250 $ -- Units Outstanding.................. 64 57 23 -- Variable Accumulation Unit Value... $ 12.21 $ 12.77 $10.90 $10.00 Total Return....................... (4.4%) 17.2% 9.0% -- Investment Income Ratio............ 0.3% 0.4% -- -- SERIES VI POLICIES (f) Net Assets......................... $ 8,043 $ 9,500 $3,044 $ 286 Units Outstanding.................. 656 741 273 27 Variable Accumulation Unit Value... $ 12.27 $ 12.81 $10.92 $10.54 Total Return....................... (4.3%) 17.3% 3.6% 5.4% Investment Income Ratio............ 0.3% 0.4% -- 5.6%
Not all investment divisions are available under all policies. Annualized percentages are shown for the Investment Income Ratio for all investment divisions in all periods. Charges and fees levied by NYLIAC are disclosed in Note 3. During the year that an individual division commenced operations, Total Return is calculated from the date of commencement through the end of the year. (a) Expenses as a percent of average variable accumulation value are 1.40%, excluding expenses of the underlying funds, surrender charges, policy service charges and charges for transferring funds between investment divisions. (b) Expenses as a percent of average variable accumulation value are 1.55%, excluding expenses of the underlying funds, policy service charges and charges for transferring funds between investment divisions. (c) Expenses as a percent of average variable accumulation value are 1.60%, excluding expenses of the underlying funds, surrender charges, policy service charges and charges for transferring funds between investment divisions. (d) Expenses as a percent of average variable accumulation value are 1.45%, excluding expenses of the underlying funds, surrender charges, policy service charges and charges for transferring funds between investment divisions. (e) Expenses as a percent of average variable accumulation value are 1.85%, excluding expenses of the underlying funds, surrender charges, policy service charges and charges for transferring funds between investment divisions. (f) Expenses as a percent of average variable accumulation value are 1.75%, excluding expenses of the underlying funds, surrender charges, policy service charges and charges for transferring funds between investment divisions. F-116 NYLIAC VARIABLE ANNUITY SEPARATE ACCOUNT-III --------------------------------------------------------------------------------
DREYFUS IP TECHNOLOGY GROWTH-- SERVICE SHARES -------------------------------------- 2007 2006 2005 2004 -------------------------------------- $7,241 $5,802 $4,703 $3,225 525 476 396 277 $13.74 $12.18 $11.87 $11.63 12.8% 2.6% 2.0% (1.2%) -- -- -- -- $ 640 $ 100 $ 61 $ -- 50 9 6 -- $12.70 $11.27 $11.00 $10.00 12.7% 2.4% 10.0% -- -- -- -- -- $7,548 $6,936 $6,985 $7,184 558 578 596 624 $13.52 $12.01 $11.73 $11.52 12.6% 2.4% 1.8% (1.4%) -- -- -- -- $9,539 $8,384 $7,047 $5,905 700 694 597 512 $13.61 $12.07 $11.77 $11.54 12.8% 2.5% 2.0% (1.2%) -- -- -- -- $ 264 $ 280 $ 263 $ 208 20 24 23 18 $13.35 $11.88 $11.64 $11.45 12.3% 2.1% 1.6% (1.6%) -- -- -- -- $4,328 $3,503 $3,105 $2,927 323 294 264 255 $13.42 $11.93 $11.67 $11.48 12.5% 2.2% 1.7% (1.5%) -- -- -- -- DREYFUS IP TECHNOL- OGY GROWTH-- FIDELITY(R) VIP SERVICE CONTRAFUND(R)-- SHARES SERVICE CLASS 2 -------- ------------------------------------------------ 2003 2007 2006 2005 2004 2003 ---------------------------------------------------------- $1,226 $ 63,639 $45,285 $27,416 $12,675 $3,715 104 3,275 2,697 1,792 955 318 $11.77 $ 19.41 $ 16,78 $ 15.27 $ 13.27 $11.69 17.7% 15.7% 9.9% 15.0% 13.6% 16.9% -- 0.8% 1.0% 0.1% 0.1% -- $ -- $ 7,894 $ 3,332 $ 1,179 $ 30 $ -- -- 520 258 98 3 -- $ -- $ 14.93 $ 12.93 $ 11.79 $ 10.26 $ -- -- 15.5% 9.7% 14.9% 2.6% -- -- 1.0% 1.2% -- -- -- $2,883 $ 78,566 $65,402 $48,984 $29,756 $7,143 247 4,113 3,955 3,248 2,266 616 $11.67 $ 19.08 $ 16.53 $ 15.08 $ 13.13 $11.59 16.7% 15.4% 9.7% 14.8% 13.3% 15.9% -- 0.8% 1.0% 0.1% 0.1% -- $2,684 $118,355 $87,036 $55,871 $26,881 $5,521 230 6,028 5,137 3,612 2,004 467 $11.68 $ 19.58 $ 16.94 $ 15.42 $ 13.41 $11.82 16.8% 15.6% 9.8% 15.0% 13.5% 18.2% -- 0.8% 1.0% 0.1% 0.1% -- $ 100 $ 8,135 $ 6,012 $ 4,332 $ 1,800 $ 316 9 434 370 292 139 28 $11.64 $ 18.71 $ 16.25 $ 14.86 $ 12.97 $11.48 16.4% 15.2% 9.4% 14.5% 13.0% 14.8% -- 0.8% 1.0% 0.1% 0.1% -- $1,302 $ 70,070 $53,528 $34,138 $15,263 $2,520 112 3,719 3,277 2,284 1,174 219 $11.65 $ 18.81 $ 16.32 $ 14.91 $ 13.00 $11.49 16.5% 15.3% 9.5% 14.6% 13.2% 14.9% -- 0.8% 1.0% 0.1% 0.1% --
F-117 NOTES TO FINANCIAL STATEMENTS (CONTINUED) NOTE 6--Financial Highlights (Net Assets and Units Outstanding in 000's) (Continued): --------------------------------------------------------------------------------
FIDELITY(R) VIP EQUITY-INCOME-- SERVICE CLASS 2 ------------------------------------------- 2007 2006 2005 2004 2003 ------------------------------------------- SERIES I POLICIES (a) Net Assets......................... $33,726 $28,156 $17,710 $10,243 $2,888 Units Outstanding.................. 2,168 1,806 1,344 810 251 Variable Accumulation Unit Value... $ 15.54 $ 15.57 $ 13.16 $ 12.64 $11.53 Total Return....................... (0.1%) 18.3% 4.1% 9.7% 15.3% Investment Income Ratio............ 1.7% 3.0% 1.1% 0.8% -- SERIES II POLICIES (b) Net Assets......................... $ 5,347 $ 2,651 $ 661 $ 10 $ -- Units Outstanding.................. 423 213 63 1 -- Variable Accumulation Unit Value... $ 12.43 $ 12.47 $ 10.56 $ 10.16 $ -- Total Return....................... (0.3%) 18.1% 4.0% 1.6% -- Investment Income Ratio............ 2.0% 3.4% -- -- -- SERIES III POLICIES (c) Net Assets......................... $45,913 $41,670 $32,146 $23,055 $5,733 Units Outstanding.................. 3,015 2,724 2,483 1,852 504 Variable Accumulation Unit Value... $ 15.22 $ 15.27 $ 12.94 $ 12.45 $11.37 Total Return....................... (0.3%) 18.0% 3.9% 9.5% 13.7% Investment Income Ratio............ 1.7% 3.0% 1.3% 0.8% -- SERIES IV POLICIES (d) Net Assets......................... $51,193 $44,641 $30,273 $19,399 $4,827 Units Outstanding.................. 3,308 2,883 2,307 1,542 421 Variable Accumulation Unit Value... $ 15.45 $ 15.48 $ 13.09 $ 12.58 $11.48 Total Return....................... (0.2%) 18.2% 4.1% 9.6% 14.8% Investment Income Ratio............ 1.7% 3.0% 1.2% 0.8% -- SERIES V POLICIES (e) Net Assets......................... $ 4,705 $ 5,222 $ 3,530 $ 2,305 $ 823 Units Outstanding.................. 308 340 270 183 71 Variable Accumulation Unit Value... $ 15.29 $ 15.38 $ 13.06 $ 12.60 $11.54 Total Return....................... (0.6%) 17.7% 3.6% 9.2% 15.4% Investment Income Ratio............ 1.6% 3.1% 1.2% 0.8% -- SERIES VI POLICIES (f) Net Assets......................... $36,726 $32,980 $21,893 $14,146 $2,977 Units Outstanding.................. 2,414 2,155 1,679 1,131 260 Variable Accumulation Unit Value... $ 15.22 $ 15.29 $ 12.98 $ 12.51 $11.44 Total Return....................... (0.5%) 17.8% 3.7% 9.3% 14.4% Investment Income Ratio............ 1.7% 3.1% 1.2% 0.8% --
Not all investment divisions are available under all policies. Annualized percentages are shown for the Investment Income Ratio for all investment divisions in all periods. Charges and fees levied by NYLIAC are disclosed in Note 3. During the year that an individual division commenced operations, Total Return is calculated from the date of commencement through the end of the year. (a) Expenses as a percent of average variable accumulation value are 1.40%, excluding expenses of the underlying funds, surrender charges, policy service charges and charges for transferring funds between investment divisions. (b) Expenses as a percent of average variable accumulation value are 1.55%, excluding expenses of the underlying funds, policy service charges and charges for transferring funds between investment divisions. (c) Expenses as a percent of average variable accumulation value are 1.60%, excluding expenses of the underlying funds, surrender charges, policy service charges and charges for transferring funds between investment divisions. (d) Expenses as a percent of average variable accumulation value are 1.45%, excluding expenses of the underlying funds, surrender charges, policy service charges and charges for transferring funds between investment divisions. (e) Expenses as a percent of average variable accumulation value are 1.85%, excluding expenses of the underlying funds, surrender charges, policy service charges and charges for transferring funds between investment divisions. (f) Expenses as a percent of average variable accumulation value are 1.75%, excluding expenses of the underlying funds, surrender charges, policy service charges and charges for transferring funds between investment divisions. F-118 NYLIAC VARIABLE ANNUITY SEPARATE ACCOUNT-III --------------------------------------------------------------------------------
FIDELITY(R) VIP JANUS ASPEN SERIES MID CAP-- BALANCED-- SERVICE CLASS 2 SERVICE SHARES ------------------------------------------------ -------------------------------------- 2007 2006 2005 2004 2003 2007 2006 2005 2004 ---------------------------------------------------------------------------------------- $72,917 $68,477 $57,754 $28,222 $2,237 $ 22,049 $ 18,394 $ 14,526 $ 10,378 3,593 3,833 3,580 2,037 199 1,561 1,416 1,217 924 $ 20.32 $ 17.87 $ 16.12 $ 13.85 $11.27 $ 14.12 $ 12.98 $ 11.92 $ 11.23 13.7% 10.8% 16.4% 22.9% 12.7% 8.8% 8.9% 6.2% 6.8% 0.5% 0.2% -- -- -- 2.3% 2.0% 2.2% 2.8% $ 3,433 $ 1,615 $ 568 $ 88 $ 1 $ 2,486 $ 995 $ 568 $ 9 188 101 39 7 -- 193 84 55 1 $ 18.22 $ 16.05 $ 14.50 $ 12.48 $10.17 $ 12.80 $ 11.79 $ 10.84 $ 10.23 13.6% 10.7% 16.2% 22.7% 1.7% 8.6% 8.7% 6.0% 2.3% 0.4% 0.1% -- -- -- 2.7% 2.1% 3.1% 28.9% $49,973 $46,256 $38,491 $21,172 $1,207 $ 32,202 $ 29,255 $ 25,740 $ 21,340 2,493 2,613 2,411 1,537 107 2,287 2,256 2,157 1,895 $ 20.09 $ 17.70 $ 16.00 $ 13.78 $11.23 $ 14.07 $ 12.97 $ 11.93 $ 11.26 13.5% 10.6% 16.1% 22.7% 12.3% 8.5% 8.7% 6.0% 6.6% 0.5% 0.2% -- -- -- 2.3% 2.0% 2.2% 2.8% $54,914 $43,212 $30,428 $14,301 $1,082 $ 37,642 $ 31,424 $ 27,775 $ 20,968 2,671 2,390 1,867 1,020 95 2,668 2,425 2,327 1,869 $ 20.54 $ 18.07 $ 16.31 $ 14.02 $11.41 $ 14.09 $ 12.96 $ 11.91 $ 11.22 13.7% 10.8% 16.3% 22.9% 14.1% 8.7% 8.8% 6.1% 6.7% 0.5% 0.2% -- -- -- 2.3% 2.0% 2.2% 2.8% $ 2,554 $ 2,664 $ 2,205 $ 1,071 $ 39 $ 3,807 $ 2,958 $ 2,226 $ 1,132 134 158 144 81 4 275 231 189 101 $ 19.07 $ 16.84 $ 15.27 $ 13.18 $10.77 $ 13.84 $ 12.79 $ 11.80 $ 11.16 13.2% 10.3% 15.8% 22.4% 7.7% 8.3% 8.4% 5.7% 6.3% 0.5% 0.2% -- -- -- 2.4% 2.0% 2.4% 2.7% $34,658 $29,234 $21,051 $ 9,297 $ 499 $ 20,698 $ 18,200 $ 14,847 $ 11,228 1,707 1,630 1,289 664 44 1,488 1,418 1,254 1,004 $ 20.32 $ 17.93 $ 16.23 $ 14.00 $11.43 $ 13.91 $ 12.83 $ 11.83 $ 11.18 13.3% 10.4% 16.0% 22.5% 14.3% 8.4% 8.5% 5.8% 6.4% 0.5% 0.2% -- -- -- 2.3% 2.0% 2.2% 2.8% JANUS ASPEN SERIES BAL- ANCED-- SERVICE SHARES -------- 2003 -------- $ 4,308 410 $ 10.52 5.2% 3.4% $ -- -- $ -- -- -- $ 8,228 779 $ 10.57 5.7% 4.1% $ 7,590 722 $ 10.51 5.1% 3.6% $ 441 42 $ 10.50 5.0% 3.4% $ 4,069 387 $ 10.51 5.1% 3.5%
F-119 NOTES TO FINANCIAL STATEMENTS (CONTINUED) NOTE 6--Financial Highlights (Net Assets and Units Outstanding in 000's) (Continued): --------------------------------------------------------------------------------
JANUS ASPEN SERIES WORLDWIDE GROWTH-- SERVICE SHARES ------------------------------------------------ 2007 2006 2005 2004 2003 ------------------------------------------------ SERIES I POLICIES (a) Net Assets......................... $ 8,450 $6,855 $5,145 $3,533 $1,398 Units Outstanding.................. 545 476 416 297 121 Variable Accumulation Unit Value... $ 15.51 $14.38 $12.37 $11.88 $11.53 Total Return....................... 7.8% 16.3% 4.1% 3.1% 15.3% Investment Income Ratio............ 0.6% 1.7% 1.3% 1.1% 0.9% SERIES II POLICIES (b) Net Assets......................... $ 871 $ 176 $ 85 $ -- $ -- Units Outstanding.................. 67 15 11 -- -- Variable Accumulation Unit Value... $ 13.04 $12.11 $10.43 $10.00 $ -- Total Return....................... 7.7% 16.1% 4.3% -- -- Investment Income Ratio............ 0.8% 1.8% 2.3% -- -- SERIES III POLICIES (c) Net Assets......................... $10,031 $8,971 $8,306 $7,463 $2,542 Units Outstanding.................. 669 632 679 634 222 Variable Accumulation Unit Value... $ 15.28 $14.20 $12.23 $11.78 $11.45 Total Return....................... 7.6% 16.1% 3.9% 2.9% 14.5% Investment Income Ratio............ 0.6% 1.6% 1.2% 1.1% 1.0% SERIES IV POLICIES (d) Net Assets......................... $11,313 $9,858 $7,855 $6,067 $2,226 Units Outstanding.................. 734 691 640 515 195 Variable Accumulation Unit Value... $ 15.37 $14.26 $12.27 $11.79 $11.44 Total Return....................... 7.8% 16.2% 4.1% 3.0% 14.4% Investment Income Ratio............ 0.6% 1.7% 1.3% 1.1% 0.9% SERIES V POLICIES (e) Net Assets......................... $ 480 $ 576 $ 436 $ 380 $ 22 Units Outstanding.................. 32 41 36 33 2 Variable Accumulation Unit Value... $ 14.95 $13.92 $12.03 $11.61 $11.31 Total Return....................... 7.4% 15.8% 3.6% 2.6% 13.1% Investment Income Ratio............ 0.5% 1.7% 1.2% 1.4% 1.2% SERIES VI POLICIES (f) Net Assets......................... $ 6,671 $5,130 $4,001 $2,880 $ 983 Units Outstanding.................. 448 370 334 250 88 Variable Accumulation Unit Value... $ 14.91 $13.87 $11.97 $11.54 $11.23 Total Return....................... 7.5% 15.9% 3.7% 2.7% 12.3% Investment Income Ratio............ 0.6% 1.7% 1.3% 1.2% 0.9%
Not all investment divisions are available under all policies. Annualized percentages are shown for the Investment Income Ratio for all investment divisions in all periods. Charges and fees levied by NYLIAC are disclosed in Note 3. During the year that an individual division commenced operations, Total Return is calculated from the date of commencement through the end of the year. (a) Expenses as a percent of average variable accumulation value are 1.40%, excluding expenses of the underlying funds, surrender charges, policy service charges and charges for transferring funds between investment divisions. (b) Expenses as a percent of average variable accumulation value are 1.55%, excluding expenses of the underlying funds, policy service charges and charges for transferring funds between investment divisions. (c) Expenses as a percent of average variable accumulation value are 1.60%, excluding expenses of the underlying funds, surrender charges, policy service charges and charges for transferring funds between investment divisions. (d) Expenses as a percent of average variable accumulation value are 1.45%, excluding expenses of the underlying funds, surrender charges, policy service charges and charges for transferring funds between investment divisions. (e) Expenses as a percent of average variable accumulation value are 1.85%, excluding expenses of the underlying funds, surrender charges, policy service charges and charges for transferring funds between investment divisions. (f) Expenses as a percent of average variable accumulation value are 1.75%, excluding expenses of the underlying funds, surrender charges, policy service charges and charges for transferring funds between investment divisions. F-120 NYLIAC VARIABLE ANNUITY SEPARATE ACCOUNT-III --------------------------------------------------------------------------------
MFS(R) INVESTORS MFS(R) TRUST SERIES-- RESEARCH SERIES-- SERVICE CLASS SERVICE CLASS ------------------------------------------------ ------------------------------------------------ 2007 2006 2005 2004 2003 2007 2006 2005 2004 2003 -------------------------------------------------------------------------------------------------- $1,576 $1,400 $1,151 $ 833 $ 135 $2,305 $1,886 $1,486 $ 930 $ 382 104 100 92 70 12 143 130 112 74 35 $15.14 $13.96 $12.56 $11.91 $10.86 $16.13 $14.48 $13.33 $12.56 $11.02 8.5% 11.1% 5.5% 9.6% 8.6% 11.4% 8.7% 6.1% 14.0% 10.2% 0.6% 0.3% 0.3% 0.3% -- 0.5% 0.3% 0.3% 0.8% -- $ 94 $ 72 $ 1 $ -- $ -- $ 168 $ 45 $ 55 $ -- $ -- 7 6 -- -- -- 13 4 5 -- -- $12.89 $11.90 $10.73 $10.00 $ -- $12.99 $11.68 $10.77 $10.00 $ -- 8.3% 11.0% 7.3% -- -- 11.2% 8.5% 7.7% -- -- 0.5% 0.1% -- -- -- 0.3% 0.3% 0.1% -- -- $2,159 $1,715 $1,404 $ 874 $ 314 $2,844 $2,282 $2,038 $1,616 $ 637 143 123 111 73 29 178 160 155 130 58 $15.12 $13.97 $12.60 $11.96 $10.94 $15.88 $14.29 $13.18 $12.45 $10.95 8.2% 10.9% 5.3% 9.4% 9.4% 11.1% 8.4% 5.9% 13.7% 9.5% 0.6% 0.2% 0.3% 0.4% -- 0.5% 0.3% 0.3% 0.8% -- $2,583 $2,086 $1,769 $1,095 $ 469 $2,931 $2,602 $2,182 $1,604 $ 460 168 148 140 91 43 186 184 168 131 43 $15.26 $14.08 $12.68 $12.02 $10.97 $15.70 $14.11 $12.99 $12.25 $10.75 8.4% 11.1% 5.5% 9.5% 9.7% 11.3% 8.6% 6.0% 13.9% 7.5% 0.6% 0.3% 0.3% 0.4% -- 0.5% 0.3% 0.3% 0.7% -- $ 156 $ 143 $ 107 $ 39 $ 13 $ 135 $ 107 $ 44 $ 26 $ 15 10 10 9 3 1 9 7 3 2 1 $14.95 $13.85 $12.52 $11.91 $10.92 $15.88 $14.32 $13.24 $12.54 $11.05 8.0% 10.6% 5.1% 9.1% 9.2% 10.9% 8.2% 5.6% 13.4% 10.5% 0.7% 0.2% 0.3% 0.3% -- 0.5% 0.2% 0.3% 0.8% -- $1,458 $1,367 $1,015 $ 783 $ 187 $2,223 $1,914 $1,715 $ 856 $ 279 97 99 81 66 17 139 132 128 68 25 $14.95 $13.83 $12.49 $11.88 $10.88 $16.06 $14.47 $13.36 $12.64 $11.13 8.1% 10.7% 5.2% 9.2% 8.8% 11.0% 8.3% 5.7% 13.6% 11.3% 0.6% 0.3% 0.3% 0.3% -- 0.5% 0.3% 0.3% 0.7% --
F-121 NOTES TO FINANCIAL STATEMENTS (CONTINUED) NOTE 6--Financial Highlights (Net Assets and Units Outstanding in 000's) (Continued): --------------------------------------------------------------------------------
MFS(R) UTILITIES SERIES-- SERVICE CLASS ------------------------------------------------ 2007 2006 2005 2004 2003 ------------------------------------------------ SERIES I POLICIES (a) Net Assets......................... $170,943 $113,299 $69,366 $15,141 $ 3 Units Outstanding.................. 6,591 5,493 4,346 1,092 -- Variable Accumulation Unit Value... $ 25.89 $ 20.58 $ 15.94 $ 13.86 $10.83 Total Return....................... 25.8% 29.1% 15.0% 28.0% 8.3% Investment Income Ratio............ 0.8% 1.8% 0.4% -- -- SERIES II POLICIES (b) Net Assets......................... $ 15,026 $ 4,987 $ 1,822 $ 154 $ -- Units Outstanding.................. 645 271 127 12 -- Variable Accumulation Unit Value... $ 23.13 $ 18.42 $ 14.29 $ 12.45 $ -- Total Return....................... 25.6% 28.9% 14.8% 24.5% -- Investment Income Ratio............ 0.6% 1.6% 0.3% -- -- SERIES III POLICIES (c) Net Assets......................... $124,909 $ 77,235 $44,612 $11,129 $ 80 Units Outstanding.................. 4,601 3,582 2,684 763 7 Variable Accumulation Unit Value... $ 27.07 $ 21.56 $ 16.73 $ 14.58 $11.41 Total Return....................... 25.5% 28.9% 14.7% 27.8% 14.1% Investment Income Ratio............ 0.7% 1.8% 0.4% 0.1% -- SERIES IV POLICIES (d) Net Assets......................... $110,284 $ 63,579 $34,325 $ 6,513 $ 63 Units Outstanding.................. 4,026 2,919 2,044 444 5 Variable Accumulation Unit Value... $ 27.34 $ 21.75 $ 16.85 $ 14.67 $11.46 Total Return....................... 25.7% 29.1% 14.9% 28.0% 14.6% Investment Income Ratio............ 0.7% 1.8% 0.4% 0.1% -- SERIES V POLICIES (e) Net Assets......................... $ 8,806 $ 4,821 $ 2,110 $ 417 $ 11 Units Outstanding.................. 326 223 126 28 1 Variable Accumulation Unit Value... $ 27.01 $ 21.57 $ 16.78 $ 14.66 $11.50 Total Return....................... 25.2% 28.6% 14.4% 27.5% 15.0% Investment Income Ratio............ 0.7% 1.5% 0.4% 0.2% -- SERIES VI POLICIES (f) Net Assets......................... $103,710 $ 58,633 $34,143 $ 6,561 $ 1 Units Outstanding.................. 3,855 2,730 2,042 451 -- Variable Accumulation Unit Value... $ 26.86 $ 21.43 $ 16.65 $ 14.54 $11.39 Total Return....................... 25.3% 28.7% 14.6% 27.6% 13.9% Investment Income Ratio............ 0.7% 1.7% 0.4% -- --
Not all investment divisions are available under all policies. Annualized percentages are shown for the Investment Income Ratio for all investment divisions in all periods. Charges and fees levied by NYLIAC are disclosed in Note 3. During the year that an individual division commenced operations, Total Return is calculated from the date of commencement through the end of the year. (a) Expenses as a percent of average variable accumulation value are 1.40%, excluding expenses of the underlying funds, surrender charges, policy service charges and charges for transferring funds between investment divisions. (b) Expenses as a percent of average variable accumulation value are 1.55%, excluding expenses of the underlying funds, policy service charges and charges for transferring funds between investment divisions. (c) Expenses as a percent of average variable accumulation value are 1.60%, excluding expenses of the underlying funds, surrender charges, policy service charges and charges for transferring funds between investment divisions. (d) Expenses as a percent of average variable accumulation value are 1.45%, excluding expenses of the underlying funds, surrender charges, policy service charges and charges for transferring funds between investment divisions. (e) Expenses as a percent of average variable accumulation value are 1.85%, excluding expenses of the underlying funds, surrender charges, policy service charges and charges for transferring funds between investment divisions. (f) Expenses as a percent of average variable accumulation value are 1.75%, excluding expenses of the underlying funds, surrender charges, policy service charges and charges for transferring funds between investment divisions. F-122 NYLIAC VARIABLE ANNUITY SEPARATE ACCOUNT-III --------------------------------------------------------------------------------
NEUBERGER BERMAN AMT T. ROWE PRICE MID-CAP GROWTH PORTFOLIO-- EQUITY INCOME CLASS S PORTFOLIO--II ------------------------------------------------ -------------------------------------- 2007 2006 2005 2004 2003 2007 2006 2005 2004 ---------------------------------------------------------------------------------------- $9,826 $5,496 $3,298 $1,365 $ 6 $34,245 $28,873 $18,925 $ 9,680 514 349 236 109 1 2,224 1,906 1,460 765 $18.99 $15.76 $13.96 $12.48 $10.91 $ 15.39 $ 15.15 $ 12.94 $ 12.66 20.5% 12.9% 11.9% 14.4% 9.1% 1.6% 17.0% 2.2% 13.0% -- -- -- -- -- 1.5% 1.4% 1.5% 1.6% $ 777 $ 83 $ 29 $ 2 $ -- $ 4,607 $ 2,250 $ 903 $ 16 47 6 3 -- -- 368 183 84 2 $16.17 $13.44 $11.92 $10.67 $ -- $ 12.50 $ 12.32 $ 10.55 $ 10.33 20.3% 12.7% 11.7% 6.7% -- 1.4% 16.8% 2.1% 3.3% -- -- -- -- -- 1.6% 1.5% 1.9% 4.8% $8,100 $4,128 $2,766 $1,635 $ 105 $47,651 $49,082 $38,632 $26,791 427 262 199 130 10 3,138 3,267 3,006 2,128 $18.96 $15.77 $14.00 $12.54 $10.98 $ 15.21 $ 15.00 $ 12.85 $ 12.59 20.3% 12.6% 11.6% 14.2% 9.8% 1.4% 16.8% 2.1% 12.8% -- -- -- -- -- 1.5% 1.4% 1.4% 1.6% $8,821 $5,184 $3,083 $1,505 $ 269 $75,255 $65,052 $45,332 $24,618 447 317 213 116 24 4,884 4,290 3,492 1,941 $19.67 $16.33 $14.47 $12.95 $11.32 $ 15.39 $ 15.16 $ 12.96 $ 12.68 20.4% 12.8% 11.8% 14.4% 13.2% 1.5% 16.9% 2.2% 13.0% -- -- -- -- -- 1.5% 1.4% 1.5% 1.6% $ 548 $ 335 $ 356 $ 307 $ 82 $ 7,212 $ 6,702 $ 4,636 $ 2,966 29 21 25 24 7 479 451 364 237 $19.02 $15.86 $14.11 $12.67 $11.12 $ 15.02 $ 14.85 $ 12.75 $ 12.53 20.0% 12.4% 11.4% 13.9% 11.2% 1.1% 16.5% 1.8% 12.5% -- -- -- -- -- 1.5% 1.4% 1.5% 1.6% $7,017 $3,184 $1,887 $ 970 $ 56 $49,094 $42,586 $29,037 $15,499 367 200 133 76 5 3,245 2,850 2,261 1,233 $19.11 $15.91 $14.15 $12.69 $11.13 $ 15.12 $ 14.93 $ 12.81 $ 12.57 20.1% 12.5% 11.5% 14.0% 11.3% 1.2% 16.6% 1.9% 12.6% -- -- -- -- -- 1.5% 1.4% 1.5% 1.7% T. ROWE PRICE EQUITY INCOME PORTFO- LIO--II -------- 2003 -------- $2,506 224 $11.20 12.0% 2.1% $ -- -- $ -- -- -- $5,783 518 $11.16 11.6% 2.4% $5,370 478 $11.23 12.3% 2.3% $ 933 84 $11.13 11.3% 2.5% $3,257 292 $11.16 11.6% 2.4%
F-123 NOTES TO FINANCIAL STATEMENTS (CONTINUED) NOTE 6--Financial Highlights (Net Assets and Units Outstanding in 000's) (Continued): --------------------------------------------------------------------------------
VAN KAMPEN UIF VICTORY VIF EMERGING MARKETS EQUITY-- DIVERSIFIED STOCK-- CLASS II CLASS A SHARES ------------------------------------------- ---------------------------------- 2007 2006 2005 2004 2003 2007 2006 2005 2004 ------------------------------------------------------------------------------- SERIES I POLICIES (a) Net Assets.......... $28,552 $15,653 $ 6,717 $2,225 $ 424 $7,960 $7,789 $5,802 $2,061 Units Outstanding... 691 526 304 134 31 545 578 483 184 Variable Accumulation Unit Value............. $ 41.09 $ 29.67 $ 21.93 $16.63 $13.71 $14.59 $13.45 $12.00 $11.19 Total Return........ 38.5% 35.3% 31.9% 21.3% 37.1% 8.4% 12.1% 7.2% 11.9% Investment Income Ratio............. 0.4% 0.8% 0.4% 0.7% -- 0.6% 0.3% 0.1% 1.6% SERIES II POLICIES (b) Net Assets.......... $ 3,758 $ 882 $ 183 $ 1 $ -- $ 743 $ 407 $ 136 $ -- Units Outstanding... 141 46 13 -- -- 57 34 13 -- Variable Accumulation Unit Value............. $ 26.25 $ 18.98 $ 14.06 $10.67 $ -- $12.93 $11.94 $10.67 $10.00 Total Return........ 38.3% 35.0% 31.7% 6.7% -- 8.3% 11.9% 6.7% -- Investment Income Ratio............. 0.4% 0.7% 0.4% -- -- 0.6% 0.3% -- -- SERIES III POLICIES (c) Net Assets.......... $37,274 $23,362 $11,562 $4,867 $1,422 $4,571 $3,751 $2,706 $1,176 Units Outstanding... 950 820 555 305 108 319 283 228 106 Variable Accumulation Unit Value............. $ 39.25 $ 28.40 $ 21.04 $15.98 $13.20 $14.35 $13.26 $11.85 $11.08 Total Return........ 38.2% 35.0% 31.7% 21.0% 32.0% 8.2% 11.9% 7.0% 10.8% Investment Income Ratio............. 0.4% 0.8% 0.4% 0.7% -- 0.7% 0.3% 0.1% 1.5% SERIES IV POLICIES (d) Net Assets.......... $46,863 $27,320 $12,712 $4,745 $ 729 $7,803 $6,514 $4,210 $1,599 Units Outstanding... 1,145 924 582 287 53 550 498 361 147 Variable Accumulation Unit Value............. $ 40.83 $ 29.49 $ 21.82 $16.55 $13.65 $14.18 $13.08 $11.68 $10.90 Total Return........ 38.4% 35.2% 31.8% 21.2% 36.5% 8.4% 12.0% 7.2% 9.0% Investment Income Ratio............. 0.4% 0.7% 0.4% 0.7% -- 0.6% 0.3% 0.1% 1.8% SERIES V POLICIES (e) Net Assets.......... $ 1,635 $ 949 $ 462 $ 73 $ -- $ 617 $ 605 $ 260 $ 13 Units Outstanding... 53 42 28 6 -- 44 47 22 1 Variable Accumulation Unit Value............. $ 31.08 $ 22.54 $ 16.74 $12.76 $10.57 $13.95 $12.92 $11.58 $10.85 Total Return........ 37.9% 34.6% 31.3% 20.7% 5.7% 7.9% 11.6% 6.8% 8.5% Investment Income Ratio............. 0.4% 0.7% 0.3% 0.9% -- 0.7% 0.3% 0.1% 2.0% SERIES VI POLICIES (f) Net Assets.......... $34,141 $22,375 $ 8,696 $2,312 $ 297 $3,864 $3,798 $3,197 $1,007 Units Outstanding... 870 786 412 144 22 270 288 270 91 Variable Accumulation Unit Value............. $ 39.16 $ 28.37 $ 21.05 $16.01 $13.25 $14.27 $13.21 $11.82 $11.06 Total Return........ 38.0% 34.8% 31.5% 20.9% 32.5% 8.0% 11.7% 6.9% 10.6% Investment Income Ratio............. 0.4% 0.8% 0.4% 0.9% -- 0.7% 0.3% 0.1% 2.2%
Not all investment divisions are available under all policies. Annualized percentages are shown for the Investment Income Ratio for all investment divisions in all periods. Charges and fees levied by NYLIAC are disclosed in Note 3. During the year that an individual division commenced operations, Total Return is calculated from the date of commencement through the end of the year. (a) Expenses as a percent of average variable accumulation value are 1.40%, excluding expenses of the underlying funds, surrender charges, policy service charges and charges for transferring funds between investment divisions. (b) Expenses as a percent of average variable accumulation value are 1.55%, excluding expenses of the underlying funds, policy service charges and charges for transferring funds between investment divisions. (c) Expenses as a percent of average variable accumulation value are 1.60%, excluding expenses of the underlying funds, surrender charges, policy service charges and charges for transferring funds between investment divisions. (d) Expenses as a percent of average variable accumulation value are 1.45%, excluding expenses of the underlying funds, surrender charges, policy service charges and charges for transferring funds between investment divisions. (e) Expenses as a percent of average variable accumulation value are 1.85%, excluding expenses of the underlying funds, surrender charges, policy service charges and charges for transferring funds between investment divisions. (f) Expenses as a percent of average variable accumulation value are 1.75%, excluding expenses of the underlying funds, surrender charges, policy service charges and charges for transferring funds between investment divisions. F-124 NYLIAC VARIABLE ANNUITY SEPARATE ACCOUNT-III (THIS PAGE INTENTIONALLY LEFT BLANK) F-125 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM -------------------------------------------------------------------------------- To the Board of Directors of New York Life Insurance and Annuity Corporation and the Variable Annuity Separate Account-III Policyowners: In our opinion, the accompanying statement of assets and liabilities and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of the subaccounts listed in Note 1 of the New York Life Insurance and Annuity Corporation Variable Annuity Separate Account -- III as of December 31, 2007, the results of each of their operations, the changes in each of their net assets and the financial highlights for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America. These financial statements and the financial highlights (hereafter referred to as "financial statements") are the responsibility of New York Life Insurance and Annuity Corporation management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit 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, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of investments at December 31, 2007 by correspondence with the funds, provide a reasonable basis for our opinion. (-s- Pricewaterhouse Cooper LLP) PricewaterhouseCoopers LLP New York, New York February 14, 2008 F-126 NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION (A WHOLLY OWNED SUBSIDIARY OF NEW YORK LIFE INSURANCE COMPANY) CONSOLIDATED FINANCIAL STATEMENTS (GAAP BASIS) DECEMBER 31, 2007 AND 2006 NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION (A WHOLLY OWNED SUBSIDIARY OF NEW YORK LIFE INSURANCE COMPANY) CONSOLIDATED BALANCE SHEET
DECEMBER 31, ----------------- 2007 2006 ------- ------- (IN MILLIONS) ASSETS Fixed maturities, at fair value Available-for-sale (includes securities pledged as collateral that can be sold or repledged of $1,625 in 2007 and $971 in 2006)................................... $39,799 $38,529 Trading securities.......................................... 71 12 Equity securities, at fair value Available-for-sale.......................................... 15 74 Trading securities.......................................... -- 62 Mortgage loans................................................ 5,208 4,189 Policy loans.................................................. 703 651 Securities purchased under agreements to resell............... 682 377 Other investments............................................. 631 554 ------- ------- Total investments........................................ 47,109 44,448 Cash and cash equivalents..................................... 893 583 Deferred policy acquisition costs............................. 3,431 3,310 Interest in annuity contracts................................. 4,468 4,240 Amounts recoverable from reinsurer............................ 6,601 6,432 Other assets.................................................. 869 856 Separate account assets....................................... 19,093 16,579 ------- ------- Total assets............................................. $82,464 $76,448 ======= ======= LIABILITIES AND STOCKHOLDER'S EQUITY LIABILITIES Policyholders' account balances............................... $42,795 $41,309 Future policy benefits........................................ 2,766 2,087 Policy claims................................................. 183 156 Obligations under structured settlement agreements............ 4,468 4,240 Amounts payable to reinsurer.................................. 5,379 5,114 Other liabilities............................................. 2,807 2,308 Separate account liabilities.................................. 19,093 16,579 ------- ------- Total liabilities........................................ 77,491 71,793 ------- ------- STOCKHOLDER'S EQUITY Capital stock -- par value $10,000 (20,000 shares authorized, 2,500 issued and outstanding)............................... 25 25 Additional paid in capital.................................... 1,410 1,410 Accumulated other comprehensive income........................ 95 77 Retained earnings............................................. 3,443 3,143 ------- ------- Total stockholder's equity............................... 4,973 4,655 ------- ------- Total liabilities and stockholder's equity............... $82,464 $76,448 ======= =======
The accompanying notes are an integral part of the consolidated financial statements. 2 NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION (A WHOLLY OWNED SUBSIDIARY OF NEW YORK LIFE INSURANCE COMPANY) CONSOLIDATED STATEMENT OF INCOME
YEAR ENDED DECEMBER 31, ------------------------ 2007 2006 2005 ------ ------ ------ (IN MILLIONS) REVENUES Premiums................................................ $ 855 $ 565 $ 138 Fees-universal life and annuity policies................ 601 487 376 Net investment income................................... 2,578 2,400 2,187 Net investment losses................................... (66) (41) -- Net revenue from reinsurance............................ 206 214 276 Other income............................................ 36 28 33 ------ ------ ------ Total revenues....................................... 4,210 3,653 3,010 ------ ------ ------ EXPENSES Interest credited to policyholders' account balances.... 1,781 1,646 1,488 Increase in liabilities for future policy benefits...... 777 529 155 Policyholder benefits................................... 204 114 71 Operating expenses...................................... 963 899 865 ------ ------ ------ Total expenses....................................... 3,725 3,188 2,579 ------ ------ ------ Income before income taxes.............................. 485 465 431 Income tax expense...................................... 159 138 138 ------ ------ ------ NET INCOME................................................ $ 326 $ 327 $ 293 ====== ====== ======
The accompanying notes are an integral part of the consolidated financial statements. 3 NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION (A WHOLLY OWNED SUBSIDIARY OF NEW YORK LIFE INSURANCE COMPANY) CONSOLIDATED STATEMENT OF STOCKHOLDER'S EQUITY YEARS ENDED DECEMBER 31, 2007, 2006 AND 2005 (IN MILLIONS)
ACCUMULATED ADDITIONAL OTHER TOTAL CAPITAL PAID IN RETAINED COMPREHENSIVE STOCKHOLDER'S STOCK CAPITAL EARNINGS INCOME (LOSS) EQUITY ------- ---------- -------- ------------- ------------- BALANCE AT JANUARY 1, 2005........... $25 $1,410 $2,535 $ 653 $4,623 ------ Comprehensive income: Net income......................... 293 293 ------ Unrealized investment losses, net of related offsets, reclassification adjustments and income taxes.............. (422) (422) ------ Other comprehensive loss........... (422) ------ Total comprehensive loss............. (129) --- ------ ------ ----- ------ BALANCE AT DECEMBER 31, 2005......... 25 1,410 2,828 231 4,494 ------ Comprehensive income: Net income......................... 327 327 ------ Unrealized investment losses, net of related offsets, reclassification adjustments and income taxes.............. (154) (154) ------ Other comprehensive loss........... (154) ------ Total comprehensive income........... 173 ------ Distribution to stockholder........ (12) (12) --- ------ ------ ----- ------ BALANCE AT DECEMBER 31, 2006......... 25 1,410 3,143 77 4,655 ------ Cumulative effect of changes in accounting principles, net of income tax (see Note 2)......... (26) (26) --- ------ ------ ----- ------ BALANCE AT JANUARY 1, 2007, AS ADJUSTED........................... 25 1,410 3,117 77 4,629 ------ Comprehensive income: Net income......................... 326 326 ------ Unrealized investment gains, net of related offsets, reclassification adjustments and income taxes.............. 18 18 ------ Other comprehensive income......... 18 ------ Total comprehensive income........... 344 --- ------ ------ ----- ------ BALANCE AT DECEMBER 31, 2007......... $25 $1,410 $3,443 $ 95 $4,973 === ====== ====== ===== ======
The accompanying notes are an integral part of the consolidated financial statements. 4 NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION (A WHOLLY OWNED SUBSIDIARY OF NEW YORK LIFE INSURANCE COMPANY) CONSOLIDATED STATEMENT OF CASH FLOWS
YEAR ENDED DECEMBER 31, ------------------------------ 2007 2006 2005 -------- -------- -------- (IN MILLIONS) CASH FLOWS FROM OPERATING ACTIVITIES: Net income............................................ $ 326 $ 327 $ 293 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization...................... 34 55 62 Net capitalization of deferred policy acquisition costs............................................ (128) (248) (232) Annuity and universal life fees.................... (455) (412) (375) Interest credited to policyholders' account balances......................................... 1,781 1,646 1,488 Net investment losses.............................. 66 41 -- Equity in earnings of limited partnerships......... 1 1 -- Deferred income taxes.............................. 1 52 16 Net revenue from intercompany reinsurance.......... (45) (57) (20) Net change in unearned revenue liability........... 30 49 16 Changes in: Other assets and other liabilities............... (64) 5 (52) Reinsurance recoverables and payables............ 10 25 76 Trading securities............................... 9 (1) 32 Policy claims.................................... 27 30 (25) Future policy benefits........................... 781 543 156 -------- -------- -------- NET CASH PROVIDED BY OPERATING ACTIVITIES..... 2,374 2,056 1,435 -------- -------- -------- CASH FLOWS FROM INVESTING ACTIVITIES: Proceeds from: Sale of available-for-sale fixed maturities........ 12,765 11,100 17,013 Maturity of available-for-sale fixed maturities.... 997 1,337 532 Sale of equity securities.......................... 67 44 39 Repayment of mortgage loans........................ 449 618 459 Sale of other investments.......................... 181 95 329 Cost of: Available-for-sale fixed maturities acquired....... (15,147) (15,182) (20,109) Equity securities acquired......................... (5) (50) (10) Mortgage loans acquired............................ (1,468) (1,198) (978) Securities purchased under agreements to resell.... (305) (90) (26) Other investments acquired......................... (278) (262) (70) Policy loans (net).................................... (51) (52) (29) -------- -------- -------- NET CASH USED IN INVESTING ACTIVITIES......... (2,795) (3,640) (2,850) -------- -------- -------- CASH FLOWS FROM FINANCING ACTIVITIES: Policyholders' account balances: Deposits........................................... 5,467 6,183 5,812 Withdrawals........................................ (4,809) (4,174) (2,981) Net transfers to the separate accounts............. (544) (371) (254) Increase (decrease) in loaned securities.............. 642 247 (341) Securities sold under agreements to repurchase (net).. 2 (154) (867) Net (paydowns) proceeds from affiliated credit agreements......................................... -- -- (233) Net (paydowns) proceeds from debt..................... (1) 8 -- Change in book and bank overdrafts.................... (19) 18 21 Distribution to stockholder........................... -- (12) -- Net distribution to limited partner................... (7) -- -- -------- -------- -------- NET CASH PROVIDED BY FINANCING ACTIVITIES..... 731 1,745 1,157 -------- -------- -------- Net increase (decrease) in cash and cash equivalents.... 310 161 (258) -------- -------- -------- Cash and cash equivalents, beginning of year............ 583 422 680 -------- -------- -------- CASH AND CASH EQUIVALENTS, END OF YEAR.................. $ 893 $ 583 $ 422 ======== ======== ========
The accompanying notes are an integral part of the consolidated financial statements. 5 NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION (A WHOLLY OWNED SUBSIDIARY OF NEW YORK LIFE INSURANCE COMPANY) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (GAAP BASIS) DECEMBER 31, 2007, 2006 AND 2005 NOTE 1 -- NATURE OF OPERATIONS New York Life Insurance and Annuity Corporation (the "Company") is a direct, wholly owned subsidiary of New York Life Insurance Company ("New York Life"), domiciled in the State of Delaware. The Company offers a wide variety of interest sensitive and variable life insurance and annuity products to a large cross section of the insurance market. The Company markets its products in all 50 of the United States, and the District of Columbia, primarily through its agency force with certain products also marketed through independent brokers and brokerage general agents. Prior to July 1, 2002, the Company also had marketed individual life insurance through its branch office and agency force in Taiwan. On July 1, 2002, the branch office was transferred to an affiliated company, as described in Note 9 -- Reinsurance. BASIS OF PRESENTATION The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP") and reflect the consolidation with majority owned and controlled limited liability companies. Certain amounts in prior years have been reclassified to conform to the current year presentation. These reclassifications had no effect on net income or stockholder's equity as previously reported. NOTE 2 -- SIGNIFICANT ACCOUNTING POLICIES USE OF ESTIMATES The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements. Actual results could differ from those estimates. INVESTMENTS Fixed maturity investments classified as available-for-sale or trading are reported at fair value. For publicly traded fixed maturities, estimated fair value is determined using quoted market prices. For fixed maturities without a readily ascertainable fair value, the Company has determined an estimated fair value using a discounted cash flow approach, broker-dealer quotations or management's pricing model. Unrealized gains and losses on available-for-sale securities are reported in other comprehensive income, net of deferred taxes and related adjustments. Unrealized gains and losses from investments classified as trading fixed maturities are reflected in net investment losses in the accompanying Consolidated Statement of Income. Changes in future anticipated cash flows on mortgage and asset-backed securities from the original purchase assumptions are accounted for using the retrospective yield adjustment method. Equity securities are carried at fair value. The estimated fair value of equity securities has been determined using quoted market prices for publicly traded securities and management's pricing model for private placement securities. Unrealized gains and losses on equity securities classified as available-for-sale are reflected in net unrealized investment gains in other comprehensive income, net of deferred taxes and related adjustments. Unrealized gains and losses from investments in equity securities classified as trading are reflected in net investment losses in the accompanying Consolidated Statement of Income. The cost basis of fixed maturities and equity securities is adjusted for impairments in value deemed to be other than temporary, with the associated realized loss reported in net investment losses in the accompanying Consolidated Statement of Income. Factors considered in evaluating whether a decline in value is other than temporary 6 NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION (A WHOLLY OWNED SUBSIDIARY OF NEW YORK LIFE INSURANCE COMPANY) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) include: i) whether the decline is substantial; ii) the amount of time that the fair value has been less than cost; iii) the financial condition and near-term prospects of the issuer; and iv) the Company's ability and intent to retain the investment for the period of time sufficient to allow for an anticipated recovery in value. Mortgage loans on real estate are carried at unpaid principal balances, net of discounts/premiums and valuation allowances, and are secured. Specific valuation allowances are established for the excess carrying value of the mortgage loan over its estimated fair value, when it is probable that, based on current information and events, the Company will be unable to collect all amounts due under the contractual terms of the loan agreement. Specific valuation allowances are based upon the fair value of the collateral or present value of expected future cash flows discounted at the loan's original effective interest rate. The Company also has a general valuation allowance for estimated future credit losses on currently performing mortgages. The general allowance is based on the Company's historical loss experience for the mortgage loan portfolio. Policy loans are stated at the aggregate balance due, which approximates fair value since loans on policies have no defined maturity date and reduce amounts payable at death or surrender. Cash equivalents include investments that have remaining maturities of three months or less at date of purchase and are carried at amortized cost, which approximates fair value. Short-term investments include investments with remaining maturities of one year or less, but greater than three months, at the time of acquisition and are stated at amortized cost, which approximates fair value. Short-term investments are included in fixed maturities in the accompanying Consolidated Balance Sheet. Other investments consist primarily of direct investments in limited partnerships, limited liability companies, derivatives, real estate and collateralized third party commercial loans. Investments in limited partnerships and limited liability companies are accounted for by the equity method of accounting. Investments in real estate, which the Company has the intent to hold for the production of income, are carried at depreciated cost, net of write- downs for other-than-temporary declines in fair value. Collateralized third party commercial loans are reported at their outstanding principal balance reduced by any charge-off or specific or general valuation allowance and net of any deferred fees or costs on originated loans or unamortized premiums or discounts on purchased loans. Loan origination fees are capitalized and recognized as an adjustment of the yield of the related loan using the interest method. Net investment gains and losses on sales are generally computed using the specific identification method. In many cases, investment in limited partnerships and limited liability companies qualify as investment companies and apply specialized accounting practices, which result in unrealized gains and losses being recorded in the accompanying Consolidated Statement of Income. The Company retains this special accounting practice. For such consolidated limited partnerships, the unrealized gains and losses from the underlying investments are reported in net investment losses in the accompanying Consolidated Statement of Income. For such limited partnerships accounted for under the equity method, the unrealized gains and losses from the underlying investments are reported in net investment income in the accompanying Consolidated Statement of Income. VARIABLE INTEREST ENTITIES ("VIES") In the normal course of its activities, the Company enters into relationships with various special purpose entities and other entities that are deemed to be VIEs, in accordance with Financial Accounting Standards Board ("FASB") Interpretation ("FIN") No. 46(R), "Consolidation of Variable Interest Entities." A VIE is an entity that either (i) has equity investors that lack certain essential characteristics of a controlling financial interest (including the ability to control the entity, the obligation to absorb the entity's expected losses and the right to receive the entity's expected residual returns) or (ii) lacks sufficient equity to finance its own activities without financial support provided by other entities, which in turn would be expected to absorb at least some of the expected losses of 7 NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION (A WHOLLY OWNED SUBSIDIARY OF NEW YORK LIFE INSURANCE COMPANY) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) the VIE. If the Company determines that it stands to absorb a majority of the VIEs expected losses or to receive a majority of the VIEs expected residual returns, or both, the Company would be deemed to be the VIEs "primary beneficiary" and would be required to consolidate the VIE. The Company's investment in VIEs is discussed in Note 3 -- Investments. LOANED SECURITIES AND REPURCHASE AGREEMENTS Securities loaned are treated as financing arrangements, and are recorded at the amount of cash advanced or received. With respect to securities loaned, the Company obtains collateral in an amount equal to 102% and 105% of the fair value of the domestic and foreign securities, respectively. The Company monitors the fair value of securities loaned with additional collateral obtained as necessary. The Company enters into agreements to purchase and resell securities, and agreements to sell and repurchase securities for the purpose of enhancing income on the securities portfolio. Securities purchased under agreements to resell are treated as investing activities and are carried at fair value including accrued interest. It is the Company's policy to generally take possession or control of the securities purchased under these agreements to resell. For triparty repurchase agreements, the Company's designated custodian takes possession of the underlying collateral securities. The fair value of the securities to be repurchased or resold is monitored and additional collateral is obtained, where appropriate, to protect against credit exposure. Securities purchased under agreement to resell are reflected separately in the accompanying Consolidated Balance Sheet. Under agreements to sell and repurchase securities, the Company obtains the use of funds from a broker for generally one month. Securities sold under agreements to repurchase are treated as financing arrangements. Collateral received is invested in short-term investments with an offsetting collateral liability. The liability is included in other liabilities in the accompanying Consolidated Balance Sheet and approximates fair value. DEFERRED POLICY ACQUISITION COSTS ("DAC") The costs of acquiring new and maintaining renewal business and certain costs of issuing policies that vary with and are primarily related to the production of new and renewal business have been deferred and recorded as an asset in the accompanying Consolidated Balance Sheet. These costs consist primarily of commissions, certain expenses of underwriting and issuing contracts, and certain agency expenses. DAC for universal life and deferred annuity contracts are amortized in proportion to estimated gross profits over the effective life of the contracts, which is assumed to be 25 years for universal life contracts and 15 years for deferred annuities. The Company uses a pricing based approach for projections of future gross margins, which include original pricing earned rates. Changes in assumptions for all policies and contracts are reflected as retroactive adjustments in the current year's amortization. For these contracts the carrying amount of the DAC asset is adjusted at each balance sheet date as if the unrealized investment gains or losses had been realized and included in the gross profits used to determine current period amortization. The increase or decrease in the DAC asset due to unrealized gains or losses is recorded in other comprehensive income. DAC for annuity policies with life contingencies are amortized in proportion to premium income over the effective premium-paying period of the contract. Assumptions as to anticipated premiums are made at the date of policy issuance and are consistently applied during the life of the contract. Deviations from estimated experience are included in operating expenses in the accompanying Consolidated Statement of Income when they occur. Effective January 1, 2007, the Company adopted a new accounting standard for DAC on internal replacements of certain insurance and investment contracts. See Note 2 -- Recent Accounting Pronouncements. 8 NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION (A WHOLLY OWNED SUBSIDIARY OF NEW YORK LIFE INSURANCE COMPANY) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) SALES INDUCEMENTS For some deferred annuity products, the Company offers policyholders a bonus equal to a specified percentage of the policyholder's initial deposit and additional credits to the policyholder's account value related to minimum accumulation benefits, which are considered sales inducements in certain instances. The Company defers these aforementioned sales inducements and amortizes them over the life of the policy using the same methodology and assumptions used to amortize DAC. Deferred sales inducements are reported in other assets in the accompanying Consolidated Balance Sheet. DERIVATIVE FINANCIAL INSTRUMENTS Derivative financial instruments are accounted for at fair value. The treatment of changes in the fair value of derivatives depends on the characteristics of the transaction, including whether it has been designated and qualifies as part of a hedging relationship. Derivatives that do not qualify for hedge accounting are carried at fair value with changes in value included in net investment losses in the accompanying Consolidated Statement of Income. To qualify as a hedge, the hedge relationship is designated and formally documented at inception by detailing the particular risk management objective and strategy for the hedge. This includes the item and risk that is being hedged, the derivative that is being used, as well as how effectiveness is being assessed and measured. A derivative must be highly effective in accomplishing the objective of offsetting either changes in fair value or cash flows for the risk being hedged. The hedging relationship is considered highly effective if the changes in fair value or discounted cash flows of the hedging instrument is within 80-125% of the inverse changes in the fair value or discounted cash flows of the hedged item. The Company formally assesses effectiveness of its hedging relationships both at the hedge inception and on an ongoing basis in accordance with its risk management policy. The Company designates and accounts for the following as fair value hedges when they have met the requirements of Statement of Financial Accounting Standards ("SFAS") No. 149 "Amendment of Statement 133 on Derivative Instruments and Hedging Activities": (i) interest rate swaps to convert fixed rate investments to floating rate investments; (ii) foreign currency swaps to hedge the foreign currency fair value exposure of foreign currency denominated investments; (iii) equity swaps to hedge the market price risk for common stock investments. For fair value hedges, the Company generally uses a qualitative assessment to assess hedge effectiveness, which matches the critical terms of the derivative with the underlying hedged item. For fair value hedges of equity investments, the Company uses regression analysis, which measures the correlation to the equity exposure being hedged. For fair value hedges, in which derivatives hedge the fair value of assets, changes in the fair value of derivatives are reflected in net investment losses, together with changes in the fair value of the related hedged item. The Company's fair value hedges are primarily hedges of available-for-sale fixed maturity and equity securities. The Company designates and accounts for the following as cash flow hedges, when they have met the requirements of SFAS No. 149: (i) interest rate swaps to convert floating rate investments to fixed rate investments; (ii) interest rate swaps to convert floating rate liabilities into fixed rate liabilities; (iii) foreign currency swaps to hedge the foreign currency cash flow exposure of foreign currency denominated investments and liabilities; and (iv) interest rate swaps to hedge the interest rate risk associated with forecasted transactions. For cash flow hedges, in which derivatives hedge the variability of cash flows related to variable rate available-for-sale securities, and available-for- sale securities that are exposed to foreign exchange risk, the accounting treatment depends on the effectiveness of the hedge. To the extent these derivatives are effective in offsetting the variability of the hedged cash flows, changes in the derivatives' fair value will not be included in current earnings but will be reported as changes in other comprehensive income. These changes in fair value will be included in net investment gains and losses of future periods when earnings are also affected by the variability of the hedged cash flows. For hedges of assets or liabilities that are subject to transaction gains and losses under SFAS No. 52 "Foreign Currency Translation," the change in fair value relative to the change in spot rates during the reporting period is 9 NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION (A WHOLLY OWNED SUBSIDIARY OF NEW YORK LIFE INSURANCE COMPANY) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) reclassified and reported with the transaction gain or loss of the asset/liability being hedged. To the extent these derivatives are not effective, changes in their fair values are immediately included in earnings in net investment losses. The Company's cash flow hedges primarily include hedges of floating rate available-for-sale securities and available-for-sale securities that are exposed to foreign exchange risk. The assessment of hedge effectiveness for cash flow hedges of interest rate risk excludes amounts relating to risks other than exposure to the benchmark interest rate. For cash flow hedges of interest rate risk, the Company uses either the short-cut method, if appropriate, or regression analysis to assess hedge effectiveness to changes in the benchmark interest rate. The change in variable cash flows method is used to measure hedge ineffectiveness when appropriate. For cash flow hedges, hedge accounting is discontinued when it is probable that a forecasted transaction will not occur. In these cases, the derivative will continue to be carried on the balance sheet at its fair value, and gains and losses that were accumulated in other comprehensive income will be recognized immediately in net investment gains and losses. When the hedged forecasted transaction is no longer probable, but is reasonably possible, the accumulated gain or loss remains in other comprehensive income and will be recognized when the transaction affects net income; however, prospective hedge accounting for the transaction is terminated. In all other cash flow hedge situations in which hedge accounting is discontinued, the gains and losses that were accumulated in other comprehensive income will be recognized immediately in net investment gains and losses and the derivative will be carried at its fair value on the balance sheet, with changes in its fair value recognized in current period net investment losses in the accompanying Consolidated Statement of Income. The Company discontinues hedge accounting prospectively if: (i) it is determined that the derivative is no longer effective in offsetting changes in the fair value or cash flows of a hedged item; (ii) the derivative expires or is sold, terminated, or exercised; (iii) the derivative is de-designated as a hedge instrument; (iv) it is probable that the forecasted transaction will not occur; or (v) management determines that designation of the derivative as a hedge instrument is no longer appropriate. The Company may enter into contracts that are not themselves derivative instruments but contain embedded derivatives. For each contract, the Company assesses whether the economic characteristics of the embedded derivative are clearly and closely related to those of the host contract and determines whether a separate instrument with the same terms as the embedded instrument would meet the definition of a derivative instrument. When it is determined that the embedded derivative possesses economic characteristics that are not clearly and closely related to the economic characteristics of the host contract, and that a separate instrument with the same terms would qualify as a derivative instrument, the embedded derivative is separated from the host contract and accounted for as a stand-alone derivative. Such embedded derivatives are recorded on the balance sheet at fair value and changes in their fair value are recorded currently in earnings. If the Company is unable to properly identify and measure an embedded derivative for separation from its host contract, the entire contract is carried on the balance sheet at fair value. Effective January 1, 2007, the Company began recognizing derivatives and embedded derivatives related to beneficial interests in securitized financial instruments. See Note 2 -- Recent Accounting Pronouncements. POLICYHOLDERS' ACCOUNT BALANCES The Company's liability for policyholders' account balances represents the contract value that has accrued to the benefit of the policyholder as of the balance sheet date. This liability is generally equal to the accumulated account deposits, plus interest credited, less policyholder withdrawals and other charges assessed against the account balance. This liability also includes amounts that have been assessed to compensate the insurer for services to be performed over future periods, and the fair value of embedded derivatives in the above contracts. 10 NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION (A WHOLLY OWNED SUBSIDIARY OF NEW YORK LIFE INSURANCE COMPANY) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) FUTURE POLICY BENEFITS The Company's liability for future policy benefits is primarily comprised of the present value of estimated future payments to or on behalf of policyholders, where the timing and amount of payment depends on policyholder mortality, less the present value of future net premiums. For non-participating traditional life insurance and annuity products, expected mortality and lapse or surrender are generally based on the Company's historical experience or standard industry tables including a provision for the risk of adverse deviation. Interest rate assumptions are based on factors such as market conditions and expected investment returns. Although mortality and interest rate assumptions are "locked-in" upon the issuance of new insurance or annuity business with fixed and guaranteed terms, significant changes in experience or assumptions may require the Company to provide for expected future losses on a product by establishing premium deficiency reserves. Premium deficiency reserves, if required, are determined based on assumptions at the time the premium deficiency reserve is established and do not include a provision for the risk of adverse deviation. The Company's liability for future policy benefits also includes liabilities for guarantee benefits related to certain nontraditional long- duration life and annuity contracts, which are discussed more fully in Note 5 -- Policyholders' Liabilities. OTHER ASSETS AND OTHER LIABILITIES Other assets primarily consist of investment income due and accrued, amounts receivable for undelivered securities and sales inducements. Other liabilities consist primarily of securities loaned, amounts payable for undelivered securities, payable to affiliates, net deferred tax liabilities and repurchase agreements. RECOGNITION OF INCOME AND RELATED EXPENSES Premiums from annuity policies with life contingencies and from whole and term life policies are recognized as income when due. The associated benefits and expenses are matched with premiums so as to result in the recognition of profits over the life of the contracts. This match is accomplished by providing for liabilities for future policy benefits (as discussed in Note 5 -- Policyholders' Liabilities) and the deferral and subsequent amortization of policy acquisition costs. Premiums for contracts with a single premium or a limited number of premium payments due over a significantly shorter period than the total period over which benefits are provided, are recorded as income when due. Any excess profit is deferred and recognized as income in a constant relationship to insurance inforce and, for annuities, in relation to the amount of expected future benefit payments. The Company did not have any excess profit for the years ended December 31, 2007, 2006 and 2005. Amounts received under deferred annuity and universal life contracts are reported as deposits to policyholders' account balances (as discussed in Note 5 -- Policyholders' Liabilities). Revenues from these contracts consist of amounts assessed during the period for mortality and expense risk, policy administration and surrender charges, and are included as fee income in the accompanying Consolidated Statement of Income. In addition to fees, the Company earns investment income from the investment of policyholders' deposits in the Company's general account portfolio. Amounts previously assessed to compensate the Company for services to be performed over future periods are deferred and recognized into income over the period benefited using the same assumptions and factors used to amortize DAC. Policy benefits and claims that are charged to expense include benefit claims incurred in the period in excess of related policyholders' account balances. Premiums, universal life fee income, benefits and expenses are stated net of reinsurance ceded. Estimated reinsurance ceding allowances are recognized over the life of the reinsured policies using assumptions consistent with those used to account for the underlying policies. Net revenue from reinsurance primarily represents the experience rated refund, amortization of the deferred gain, and the reserve adjustment associated with the reinsurance business ceded to New York Life, as discussed in 11 NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION (A WHOLLY OWNED SUBSIDIARY OF NEW YORK LIFE INSURANCE COMPANY) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) Note 9 -- Reinsurance. This net revenue adjustment excludes ceded universal life fees and ceded policyholder benefits, which are included on these respective lines in the accompanying Consolidated Statement of Income. INCOME TAXES The Company is a member of a group that files a consolidated federal income tax return with New York Life. The consolidated income tax provision or benefit is allocated among the members of the group in accordance with a tax allocation agreement. The tax allocation agreement provides that the Company is allocated its share of the consolidated tax provision or benefit, determined generally on a separate company basis. Intercompany tax balances are generally settled quarterly on an estimated basis with a final settlement within 30 days of the filing of the consolidated return. Current federal income taxes are charged or credited to operations based upon amounts estimated to be payable or recoverable as a result of taxable operations for the current year and any adjustments to such estimates from prior years. Deferred federal income tax assets ("DTAs") and liabilities ("DTLs") are recognized for expected future tax consequences of temporary differences between GAAP and taxable income. Temporary differences are identified and measured using a balance sheet approach whereby GAAP and tax balance sheets are compared. Deferred income taxes are generally recognized based on enacted tax rates and a valuation allowance is recorded if it is more likely than not that any portion of the deferred tax asset will not be realized. Effective January 1, 2007, the Company adopted a new accounting standard for uncertain tax positions. See Note 2 -- Recent Accounting Pronouncements. SEPARATE ACCOUNTS The Company has separate accounts, some of which are registered with the Securities and Exchange Commission ("SEC"), and others that are not registered with the SEC. The separate accounts have varying investment objectives, and are segregated from the Company's general account and are maintained for the benefit of separate account policyholders. At December 31, 2007 and 2006, all separate account assets are stated at fair value. Separate account liabilities at December 31, 2007 and 2006 represent the policyholders' interest in the account, and includes accumulated net investment income and realized and unrealized gains and losses on the assets, which generally reflects fair value. FAIR VALUES OF FINANCIAL INSTRUMENTS Fair values of various assets and liabilities are included throughout the notes to the consolidated financial statements. Specifically, fair value disclosure of fixed maturities, equity securities, short-term investments, cash equivalents, mortgage loans and policy loans are reported in Note 2 -- Significant Accounting Policies and Note 3 -- Investments. Fair values of policyholders' account balances are reported in Note 5 -- Policyholders' Liabilities. Fair values for derivatives are reported in Note 10 -- Derivative Financial Instruments and Risk Management. Fair values of repurchase agreements are reported in Note 11 -- Commitments and Contingencies. BUSINESS RISKS AND UNCERTAINTIES The Company's investment portfolio consists principally of fixed income securities as well as mortgage loans, policy loans, limited partnerships, and preferred and common stocks. The fair value of the Company's investments varies depending on economic and market conditions and the interest rate environment. For example, if interest rates rise, the securities in the Company's fixed income portfolio generally will decrease in value. If interest rates decline, the securities in the fixed income portfolio generally will increase in value. For various reasons, the Company may, from time to time, be required to sell certain investments at a price and a time when their fair value is less than their book value. 12 NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION (A WHOLLY OWNED SUBSIDIARY OF NEW YORK LIFE INSURANCE COMPANY) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) Mortgage loans, many of which have balloon payment maturities, are generally illiquid and carry a greater risk of investment losses than investment grade fixed maturities. Changes in interest rates can have significant effects on the Company's profitability. Under certain circumstances of interest rate volatility, the Company is exposed to disintermediation risk and reduction in net interest spread or profit margins. The fair value of the Company's invested assets fluctuates depending on market and other general economic conditions and the interest rate environment. In addition, mortgage prepayments, life insurance and annuity surrenders and bond calls are affected by interest rate fluctuations. Although management of the Company employs a number of asset/liability management strategies to minimize the effects of interest rate volatility, no guarantee can be given that it will be successful in managing the effects of such volatility and that such volatility will not have a material adverse impact on the Company's business, financial condition and results of operation. Credit defaults and impairments may result in write-downs in the value of fixed income and equity securities held by the Company. Additionally, credit rating agencies, may in the future, downgrade certain issuers or guarantors of fixed maturity securities held by the Company due to changing assessments of the credit quality of the issuers or guarantors. The Company regularly invests in mortgage loans, mortgage-backed securities and other securities subject to prepayment and/or call risk. Significant changes in prevailing interest rates and/or geographic conditions may adversely affect the timing and amount of cash flows on these investments, as well as their related values. In addition, the amortization of market premium and accretion of market discount for mortgage-backed securities is based on historical experience and estimates of future payment experience on the underlying mortgage loans. Actual prepayment timing will differ from original estimates and may result in material adjustments to asset values and amortization or accretion recorded in future periods. Subprime residential mortgage lending is the origination of residential mortgage loans to customers with weak credit profiles, including using relaxed mortgage underwriting standards that provide for affordable mortgage products. The Company's exposure to subprime residential mortgage lending is through fixed maturity investments that are collateralized by mortgages that have characteristics of subprime lending. These investments are primarily in the form of mortgage-backed securities supported by subprime mortgage loans. The collective market value of these investments is approximately $141 million with an unrealized loss of $3 million. Of the total subprime-related investments, 90% had "AAA" or "AA" credit quality ratings. The Company manages its subprime risk exposure by limiting the Company's holdings in these types of instruments; maintaining high credit quality investments; and performing ongoing analysis of cash flows, prepayment speeds, default rates and other stress variables. Weak equity market performance may adversely affect sales of variable products, cause potential purchasers of the Company's products to refrain from new or additional investments, and may cause current investors to withdraw from the market or reduce their rates of ongoing investment. Revenues of the Company's variable products are to a large extent based on fees related to the value of assets under management. Consequently, poor equity market performance limits fee revenue on some variable products. Although the federal government does not directly regulate the business of insurance, federal legislation and administrative policies in several areas, including pension regulation, financial services regulation and federal taxation, can significantly and adversely affect the insurance industry and the Company. The Company is unable to predict whether any changes will be made, whether any administrative or legislative proposals will be adopted in the future, or the effect, if any, such proposals would have on the Company. The development of policy reserves and DAC for the Company's products requires management to make estimates and assumptions regarding mortality, lapse, expense and investment experience. Such estimates are primarily based on historical experience and future expectations of mortality, expense, persistency and investment 13 NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION (A WHOLLY OWNED SUBSIDIARY OF NEW YORK LIFE INSURANCE COMPANY) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) experience. Actual results could differ from those estimates. Management monitors actual experience, and where circumstances warrant, revises its assumptions and the related estimates for policy reserves and DAC. The Company issues certain variable products with various types of guaranteed minimum benefit features. The Company currently reserves for the expected payments resulting from these features. The Company bears the risk that payments may be higher than expected as a result of significant, sustained downturns in the stock market. The Company also bears the risk that additional reserves may be required if partial surrender activity increases significantly for some annuity products during the period when account values are less than guaranteed amounts. CONTINGENCIES Amounts related to contingencies are accrued if it is probable that a liability has been incurred and an amount is reasonably estimable. Regarding litigation, management evaluates whether there are incremental legal or other costs directly associated with the ultimate resolution of the matter that are reasonably estimable and, if so, includes these costs in the accrual. RECENT ACCOUNTING PRONOUNCEMENTS In July 2006, the FASB issued FIN No. 48, "Accounting for Uncertainty in Income Taxes" an interpretation of FASB Statement No. 109. This interpretation prescribes a comprehensive model for how a company should recognize, measure, present, and disclose in its financial statements uncertain tax positions that it has taken or expects to take on a tax return. This interpretation is effective for fiscal years beginning after December 15, 2006. The Company adopted FIN No. 48 on January 1, 2007. The cumulative effect of the adoption of FIN No. 48, as of January 1, 2007, resulted in a decrease to retained earnings and an increase to the Company's tax liability of $39 million. In February 2006, the FASB issued SFAS No. 155, "Accounting for Certain Hybrid Financial Instruments" -- an amendment of FASB Statements No. 133 and 140." This statement removes an exception from the requirement to bifurcate an embedded derivative feature from a beneficial interest in securitized financial assets. This statement also provides an irrevocable election to measure at fair value an entire hybrid financial instrument that contains an embedded derivative requiring bifurcation, on an instrument-by-instrument basis, rather than measuring only the embedded derivative on a fair value basis. The Company has used the exception for investments made in securitized financial assets in the normal course of operations, and thus has not previously had to consider whether such investments contain an embedded derivative. The new requirement to identify embedded derivatives in beneficial interests is required to be applied on a prospective basis only to beneficial interests acquired, issued, or subject to certain remeasurement conditions after the adoption date of the new guidance. The Company adopted SFAS No. 155 effective January 1, 2007. The Company's adoption of SFAS No. 155 did not have a material effect on the Company's consolidated financial statements. The Company elected to measure at fair value certain financial instruments that contained an embedded derivative that would otherwise require bifurcation. These amounts were included in "fixed maturities -- trading securities" and totaled $64 million at December 31, 2007. In September 2005, the Accounting Standards Executive Committee of the American Institute of Certified Public Accountants issued Statement of Position ("SOP") 05-1, "Accounting by Insurance Enterprises for Deferred Acquisition Costs in Connection With Modifications or Exchanges of Insurance Contracts ("SOP 05-1")." SOP 05-1 provides guidance on accounting by insurance enterprises for DAC on internal replacements of insurance and investment contracts other than those specifically described in SFAS No. 97. The SOP defines an internal replacement as a modification in product benefits, features, rights, or coverages that occurs by the exchange of a contract for a new contract, or by amendment, endorsement, or rider to a contract, or by the election of a feature or coverage within a contract. SOP 05-1 is effective for internal replacements occurring in fiscal years beginning after December 15, 2006. Under SOP 05-1, exchanges of deferred annuity contracts are generally considered substantially unchanged contracts and DAC is not written off. Prior to the adoption of SOP 05- 1 the Company accounted for 14 NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION (A WHOLLY OWNED SUBSIDIARY OF NEW YORK LIFE INSURANCE COMPANY) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) exchanges of deferred annuities as replacements and wrote off the DAC. The Company adopted SOP 05-1 on January 1, 2007, which resulted in an increase to retained earnings of $13 million, net of income taxes. In September 2006, the FASB issued SFAS No. 157, "Fair Value Measurements." This statement defines fair value, establishes a framework for measuring fair value in GAAP, and expands disclosures around fair value measurements. This statement does not require any new fair value measurements, but the application of this statement could change current practices in determining fair value. The guidance in SFAS No. 157 will be applied prospectively with certain exceptions. This statement is effective January 1, 2008, at which time the Company plans to adopt this guidance. The Company is currently evaluating the impact of SFAS No. 157 on the Company's consolidated financial statements. In February 2007, the FASB issued SFAS No. 159 "The Fair Value Option for Financial Assets and Financial Liabilities -- including an amendment of FAS 115." This statement permits entities to choose to measure many financial instruments and certain other items at fair value that are not currently required to be measured at fair value. A company should report unrealized gains and losses on items for which the fair value option has been elected in earnings. This statement also establishes presentation and disclosure requirements designed to facilitate comparisons between entities that choose different measurement attributes for similar types of assets and liabilities. The Company plans to adopt this guidance effective January 1, 2008. The Company is currently evaluating the impact of SFAS No. 159 on the Company's consolidated financial statements. In November 2005, the FASB issued FSP No. 115-1, "The Meaning of Other- Than-Temporary Impairment and Its Application to Certain Investments." This FSP addresses the determination as to when an investment is considered impaired, whether that impairment is other-than-temporary, and the measurement of an impairment loss. It also includes accounting considerations subsequent to the recognition of an other-than-temporary impairment and requires certain disclosures about unrealized losses that have not been recognized as other-than- temporary impairments. The Company adopted this guidance effective January 1, 2006, and it did not have a material effect on the Company's Consolidated Statement of Income. NOTE 3 -- INVESTMENTS FIXED MATURITIES The amortized cost and estimated fair value of fixed maturities as of December 31, 2007 and 2006, by contractual maturity is presented below (in millions). Expected maturities may differ from contractual maturities because borrowers may have the right to call or repay obligations with or without call or prepayment penalties.
2007 2006 ---------------------- ---------------------- AMORTIZED ESTIMATED AMORTIZED ESTIMATED AVAILABLE-FOR-SALE COST FAIR VALUE COST FAIR VALUE ------------------ --------- ---------- --------- ---------- Due in one year or less................. $ 171 $ 172 $ 161 $ 162 Due after one year through five years... 8,084 8,185 6,490 6,464 Due after five years through ten years.. 12,226 12,166 13,177 13,147 Due after ten years..................... 5,986 6,133 6,233 6,429 Mortgage and asset-backed securities: U.S. Government or U.S. Government agency............................. 1,512 1,509 1,522 1,499 Other mortgage-backed securities...... 7,945 7,994 7,538 7,557 Other asset-backed securities......... 3,597 3,549 3,143 3,131 Redeemable preferred securities....... 92 91 140 140 ------- ------- ------- ------- TOTAL AVAILABLE-FOR-SALE.............. $39,613 $39,799 $38,404 $38,529 ======= ======= ======= =======
15 NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION (A WHOLLY OWNED SUBSIDIARY OF NEW YORK LIFE INSURANCE COMPANY) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) At December 31, 2007 and 2006, the distribution of gross unrealized gains and losses on investments in fixed maturities was as follows (in millions):
2007 ------------------------------------------------ AMORTIZED UNREALIZED UNREALIZED ESTIMATED AVAILABLE-FOR-SALE COST GAINS LOSSES FAIR VALUE ------------------ --------- ---------- ---------- ---------- U.S. Treasury and U.S. Government corporations and agencies............. $ 2,984 $ 43 $ 14 $ 3,013 U.S. agencies, state and municipal...... 487 55 1 541 Foreign governments..................... 160 9 1 168 Corporate............................... 24,348 513 418 24,443 Mortgage-backed securities.............. 7,945 121 72 7,994 Asset-backed securities................. 3,597 28 76 3,549 Redeemable preferred securities......... 92 1 2 91 ------- ---- ---- ------- TOTAL AVAILABLE-FOR-SALE.............. $39,613 $770 $584 $39,799 ======= ==== ==== =======
2006 ------------------------------------------------ AMORTIZED UNREALIZED UNREALIZED ESTIMATED AVAILABLE-FOR-SALE COST GAINS LOSSES FAIR VALUE ------------------ --------- ---------- ---------- ---------- U.S. Treasury and U.S. Government corporations and agencies............. $ 2,433 $ 18 $ 35 $ 2,416 U.S. agencies, state and municipal...... 516 44 4 556 Foreign governments..................... 137 5 * 142 Corporate............................... 24,497 455 365 24,587 Mortgage-backed securities.............. 7,538 87 68 7,557 Asset-backed securities................. 3,143 17 29 3,131 Redeemable preferred securities......... 140 2 2 140 ------- ---- ---- ------- TOTAL AVAILABLE-FOR-SALE.............. $38,404 $628 $503 $38,529 ======= ==== ==== =======
-------- * Unrealized loss is less than $1 million At December 31, 2007, the Company had no outstanding contractual obligations to acquire additional private placement securities. At 2006, the Company had $32 million in contractual obligations to acquire additional private placement securities. The Company accrues interest income on fixed maturity securities to the extent it is deemed collectible and the security continues to perform under its original contractual terms. Interest income on impaired securities is recognized on a cash basis. At December 31, 2007, there were no investments in bonds that have been non-income producing for the last twelve months. Investments in bonds that have been non-income producing for the last twelve months totaled $4 million at December 31,2006. These investments have been deemed other than temporarily impaired. 16 NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION (A WHOLLY OWNED SUBSIDIARY OF NEW YORK LIFE INSURANCE COMPANY) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) EQUITY SECURITIES At December 31, 2007 and 2006, the distribution of gross unrealized gains and losses on available-for-sale equity securities was as follows (in millions):
UNREALIZED UNREALIZED ESTIMATED COST GAINS LOSSES FAIR VALUE ---- ---------- ---------- ---------- 2007....................................... $12 $5 $ 2 $15 2006....................................... $69 $5 $ -- $74
MORTGAGE LOANS The Company's mortgage loan investments are diversified by property type, location and borrower and are collateralized by the related property. The fair value of the mortgage loan portfolio at December 31, 2007 and 2006 was estimated to be $5,234 million and $4,233 million, respectively. Fair value is determined by discounting the projected cash flow for each loan to determine the current net present value. The discount rate used approximates the current rate for new mortgages with comparable characteristics and similar remaining maturities. At December 31, 2007 and 2006, contractual commitments to extend credit under commercial and residential mortgage loan agreements amounted to $106 million and $257 million, respectively, at fixed and floating interest rates ranging from 5.4% to 6.1% in 2007, and fixed and floating interest rates ranging from 3.6% to 7.6% in 2006. These commitments are diversified by property type and geographic region. The Company accrues interest income on problem loans to the extent it is deemed collectible and the loan continues to perform under its original or restructured contractual terms. Interest income on impaired loans is recognized on a cash basis. Cash payments on loans in the process of foreclosure are treated as a return of principal. 17 NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION (A WHOLLY OWNED SUBSIDIARY OF NEW YORK LIFE INSURANCE COMPANY) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) At December 31, 2007 and 2006, the distribution of the mortgage loan portfolio by property type and geographic region was as follows (in millions):
2007 2006 ---------------- ---------------- CARRYING % OF CARRYING % OF VALUE TOTAL VALUE TOTAL -------- ----- -------- ----- PROPERTY TYPE: Residential................................. $1,322 25.4% $1,187 28.3% Office buildings............................ 1,285 24.7% 1,019 24.3% Retail facilities........................... 882 16.9% 787 18.8% Apartment buildings......................... 895 17.2% 652 15.6% Industrial.................................. 809 15.5% 514 12.3% Other....................................... 15 0.3% 30 0.7% ------ ----- ------ ----- TOTAL.................................... $5,208 100.0% $4,189 100.0% ====== ===== ====== ===== GEOGRAPHIC REGION: Central..................................... $1,448 27.8% $1,091 26.0% Pacific..................................... 1,398 26.8% 1,057 25.2% South Atlantic.............................. 1,131 21.7% 965 23.1% Middle Atlantic............................. 982 18.9% 831 19.8% New England................................. 244 4.7% 245 5.9% Other....................................... 5 0.1% -- -- ------ ----- ------ ----- TOTAL.................................... $5,208 100.0% $4,189 100.0% ====== ===== ====== =====
The activity in the mortgage loan specific and general reserves as of December 31, 2007 and 2006 is summarized below (in millions):
2007 2006 ---- ---- Beginning balance............................................ $7 $6 Additions charged to operations.............................. 2 1 -- -- ENDING BALANCE............................................... $9 $7 == ==
OTHER INVESTMENTS The components of other investments as of December 31, 2007 and 2006 were as follows (in millions):
2007 2006 ---- ---- New York Life Short-Term Investment Fund.................... $191 $220 Collateralized third party loans............................ 160 147 Limited partnerships/Limited liability companies............ 225 152 Derivatives................................................. 44 25 Real estate................................................. 11 10 ---- ---- TOTAL OTHER INVESTMENTS................................... $631 $554 ==== ====
The New York Life Short Term Investment Fund ("STIF") was formed by New York Life to improve short-term returns through greater flexibility to choose attractive maturities and enhanced portfolio diversification. The 18 NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION (A WHOLLY OWNED SUBSIDIARY OF NEW YORK LIFE INSURANCE COMPANY) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) STIF is a commingled fund managed by New York Life Investment Management LLC ("NYLIM"), an indirect wholly owned subsidiary of New York Life, where all participants are subsidiaries or affiliates of New York Life. Net unrealized investment losses on limited partnerships and limited liability companies that do not apply specialized industry company accounting aggregated $10 million and $1 million for the years ended December 31, 2007 and 2006, respectively, and were recorded as a component of other comprehensive income in the accompanying Consolidated Balance Sheet. Accumulated depreciation on real estate was $6 million and $5 million for December 31, 2007 and 2006, respectively. Depreciation expense for December 31, 2007, 2006 and 2005 totaled less than $1 million. Depreciation expense is recorded as a component of net investment income in the accompanying Consolidated Statement of Income. Unfunded commitments on limited partnerships and limited liability companies amounted to $125 million and $161 million at December 31, 2007 and 2006, respectively. VARIABLE INTEREST ENTITIES The Company may invest in debt or equity securities issued by certain asset backed investment vehicles (commonly referred to as collateralized debt obligations, or "CDOs"). CDOs raise capital by issuing debt and equity securities, and use the proceeds to purchase investments, typically interest- bearing financial instruments. The Company's maximum exposure to loss resulting from its relationship with the CDOs it manages is limited to its investment in the CDOs. In addition, in the normal course of its activities, the Company will invest in structured investments, some of which are VIEs. These structured investments typically invest in fixed income investments and are managed by a third party. The Company's maximum exposure to loss on these structured investments, both VIEs and non-VIEs, is limited to the amount of its investment. The following table presents the Company's maximum exposure to loss relating to investments it holds that are deemed significant VIEs at December 31, 2007 and 2006 (in millions):
MAXIMUM EXPOSURE TO LOSS ----------- 2007 2006 ---- ---- Asset-backed securitizations................................ $ 25 $ 36 Private placement structured notes.......................... 82 86 Other investments: Equity in asset-backed securitizations.................... 15 23 Limited partnerships...................................... 6 12 ---- ---- TOTAL.................................................. $128 $157 ==== ====
These VIEs did not require consolidation because management determined that the Company was not the primary beneficiary. Accordingly, these VIEs are subject to ongoing review for impairment and for events that may cause management to reconsider whether or not it is the primary beneficiary in these VIEs. The Company has no additional economic interest in these VIEs in the form of derivatives, commitments, related guarantees, credit enhancement or similar instruments and obligations. The Company's maximum exposure to loss on variable interests in unconsolidated VIEs is limited to the carrying value of the invested assets. 19 NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION (A WHOLLY OWNED SUBSIDIARY OF NEW YORK LIFE INSURANCE COMPANY) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) RESTRICTED ASSETS AND SPECIAL DEPOSITS Assets of $4 million and $3 million at December 31, 2007 and 2006, respectively, were on deposit with governmental authorities or trustees as required by certain state insurance laws and are included in available-for-sale fixed maturities in the accompanying Consolidated Balance Sheet. NOTE 4 -- INVESTMENT INCOME AND INVESTMENT GAINS AND LOSSES The components of net investment income for the years ended December 31, 2007, 2006 and 2005 were as follows (in millions):
2007 2006 2005 ------ ------ ------ Fixed maturities.................................... $2,308 $2,179 $1,982 Equity securities................................... 8 5 8 Mortgage loans...................................... 271 239 206 Policy loans........................................ 48 46 44 Other investments................................... 54 32 29 ------ ------ ------ Gross investment income........................... 2,689 2,501 2,269 Investment expenses................................. (111) (101) (82) ------ ------ ------ NET INVESTMENT INCOME............................. $2,578 $2,400 $2,187 ====== ====== ======
For the years ended December 31, 2007, 2006 and 2005, net investment losses were as follows (in millions):
2007 2006 2005 ---- ---- ---- Fixed maturities........................................ $(70) $(28) $(3) Equity securities....................................... 7 (8) 5 Mortgage loans.......................................... (2) (1) -- Derivative instruments.................................. 5 (6) (4) Other investments....................................... (6) 2 2 ---- ---- --- NET INVESTMENT LOSSES................................. $(66) $(41) $-- ==== ==== ===
The net losses on trading securities (both fixed maturities and equity securities) amounted to $4 million for both December 31, 2007 and 2006. For December 31, 2005 the net losses amounted to $12 million. Trading gains and losses are included in net investment losses in the accompanying Consolidated Statement of Income. Realized gains on sales of available-for-sale fixed maturities were $100 million, $67 million and $98 million for the years ended December 31, 2007, 2006 and 2005, respectively; and realized losses were $114 million, $100 million and $82 million, respectively. Losses from other-than-temporary impairments in fixed maturities (included in net investment losses on fixed maturities above) were $51 million, $3 million and $15 million for the years ended December 31, 2007, 2006 and 2005, respectively. Losses from other-than-temporary impairments in equity securities (included in net investment losses on equity securities above) were less than $1 million for December 31, 2007 and $2 million for December 31, 2006. There were no other-than-temporary impairments on equity securities for December 31, 2005. 20 NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION (A WHOLLY OWNED SUBSIDIARY OF NEW YORK LIFE INSURANCE COMPANY) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) The following table presents the Company's gross unrealized losses and fair values for available-for-sale fixed maturities and equities with unrealized losses that are deemed to be only temporarily impaired, aggregated by investment category and length of time that individual securities have been in an unrealized loss position at December 31, 2007 and 2006 (in millions):
2007 ----------------------------------------------------------------- GREATER THAN LESS THAN 12 MONTHS 12 MONTHS TOTAL ------------------- -------------------- -------------------- FAIR UNREALIZED FAIR UNREALIZED FAIR UNREALIZED VALUE LOSSES VALUE LOSSES VALUE LOSSES ------ ---------- ------- ---------- ------- ---------- FIXED MATURITIES U.S. Treasury and U.S. Government corporations and agencies.................... $ 86 $ 1 $ 879 $ 13 $ 965 $ 14 U.S. agencies, state and municipal................... -- -- 47 1 47 1 Foreign governments............ 19 1 4 * 23 1 Corporate...................... 3,795 152 7,297 266 11,092 418 Mortgage-backed securities..... 1,186 34 1,540 38 2,726 72 Asset-backed securities........ 1,212 46 876 30 2,088 76 Redeemable preferred securities.................. 1 * 44 2 45 2 ------ ---- ------- ---- ------- ---- TOTAL FIXED MATURITIES......... 6,299 234 10,687 350 16,986 584 ------ ---- ------- ---- ------- ---- EQUITIES** Common stock................... 5 2 -- -- 5 2 ------ ---- ------- ---- ------- ---- TOTAL EQUITIES................. 5 2 -- -- 5 2 ------ ---- ------- ---- ------- ---- TOTAL TEMPORARILY IMPAIRED SECURITIES.................. $6,304 $236 $10,687 $350 $16,991 $586 ====== ==== ======= ==== ======= ====
2006 ----------------------------------------------------------------- GREATER THAN LESS THAN 12 MONTHS 12 MONTHS TOTAL ------------------- -------------------- -------------------- FAIR UNREALIZED FAIR UNREALIZED FAIR UNREALIZED VALUE LOSSES VALUE LOSSES VALUE LOSSES ------ ---------- ------- ---------- ------- ---------- FIXED MATURITIES U.S. Treasury and U.S. Government corporations and agencies.................... $ 553 $ 5 $ 1,108 $ 30 $ 1,661 $ 35 U.S. agencies, state and municipal................... 80 1 91 3 171 4 Foreign governments............ 15 * 26 * 41 * Corporate...................... 3,980 57 9,198 308 13,178 365 Mortgage-backed securities..... 1,579 12 2,197 56 3,776 68 Asset-backed securities........ 644 4 1,019 25 1,663 29 Redeemable preferred securities.................. 10 * 52 2 62 2 ------ --- ------- ---- ------- ---- TOTAL TEMPORARILY IMPAIRED FIXED MATURITIES............ $6,861 $79 $13,691 $424 $20,552 $503 ====== === ======= ==== ======= ====
-------- * Unrealized loss is less than $1 million. ** At December 31, 2006, there were no unrealized losses for equity securities. 21 NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION (A WHOLLY OWNED SUBSIDIARY OF NEW YORK LIFE INSURANCE COMPANY) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) At December 31, 2007, fixed maturities represented approximately 99% of the Company's total unrealized loss amount, which was comprised of approximately 2,915 different securities. Equity securities comprised the remaining 1% of the Company's unrealized loss amount. Fixed maturities that were in an unrealized loss position less than twelve months at December 31, 2007, totaled $234 million or 40% of the Company's unrealized losses for fixed maturities, and securities in an unrealized loss position greater than twelve months totaled $350 million or 60% of the Company's unrealized losses for fixed maturities. Of the total amount of fixed maturities unrealized losses, $426 million or 73% is related to unrealized losses on investment grade securities. Investment grade is defined as a security having a credit rating from the National Association of Insurance Commissioners ("NAIC") of 1 or 2; a rating of Aaa, Aa, A or Baa from Moody's or a rating of AAA, AA, A or BBB from Standard & Poor's ("S&P"); or a comparable internal rating if an externally provided rating is not available. Unrealized losses on fixed maturity securities with a rating below investment grade represent $158 million or 27% of the Company's total fixed maturities unrealized losses. Change in interest rates, widening of credit spreads, and general market volatility sparked by the subprime credit crisis in 2007 contributed to the increase in the number of securities with fair values below amortized cost and in the amount of unrealized losses as follows: U.S. Treasury and U.S. Government Corporations and Agencies. Unrealized losses on the Company's investments in U.S. Treasury obligations and direct obligations of U.S. corporations and agencies were $14 million or 2% of the Company's unrealized losses for fixed maturities, which were spread across 111 securities. The contractual terms of these investments are guaranteed by the full faith and credit of the U.S. Government. Because the Company has the ability and intent to retain the investment for the period of time sufficient to allow for an anticipated recovery in value, the Company did not consider these investments to be other than temporarily impaired. Corporate Bonds. Unrealized losses on corporate bonds were $418 million or 72% of the total unrealized losses for fixed maturities. The amount of unrealized losses on the Company's investment in corporate bonds is spread over 1,816 individual securities with varying interest rates and maturities. Corporate securities with a fair value below 95% of the security's amortized cost totaled $131 million or 22% of the total unrealized losses for fixed maturities. Corporate spreads widened significantly in the second half of 2007 due to the credit crunch that was sparked by the subprime mortgage crisis. General market volatility, liquidity concerns, a slowing economy and credit deterioration in certain sectors contributed to the unrealized losses. The losses were spread across all industry sectors. The largest sectors with unrealized losses on securities with a fair value below 95% of the security's amortized cost being the Real Estate Investment Trust ($23 million), Finance ($19 million), Banking ($18 million) and Electric Utilities ($16 million). Because the securities continue to meet their contractual payments and the Company has the ability and intent to retain the investment for the period of time sufficient to allow for an anticipated recovery in value, the Company did not consider these investments to be other than temporarily impaired. Mortgage-Backed Securities. Unrealized losses on mortgage-backed securities were $72 million or 12% of the total unrealized losses for fixed maturities. The amount of unrealized losses on the Company's investment in mortgage-backed securities was due to the widening of credit spreads for mortgage securities in response to the subprime credit crisis. These losses are spread across approximately 530 fixed and variable rate investment grade securities. Mortgage-backed securities that were priced below 95% of the security's amortized cost represented $33 million or 46% of the total unrealized losses on mortgage-backed securities. The majority of the Company's holdings (over 99%) are investment grade and management believes all deals remain well collateralized. The Company measures its mortgage-backed portfolio for impairments based on the security's credit rating and whether the security has an unrealized loss. When the fair value of the securities are below amortized cost and there are negative changes in estimated future cash flows, the securities are deemed other than temporarily impaired and a realized loss is recognized in net investment losses in the accompanying Consolidated Statement of Income. The 22 NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION (A WHOLLY OWNED SUBSIDIARY OF NEW YORK LIFE INSURANCE COMPANY) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) Company also evaluates these securities for other than temporary impairments based on facts and circumstances, even if there has been no negative change in estimated future cash flows. The Company has the ability and intent to retain the investment for the period of time sufficient to allow for an anticipated recovery in value, therefore the Company did not consider these investments to be other than temporarily impaired. Asset-Backed Securities. Unrealized losses on asset-backed securities were $76 million or 13% of the total unrealized losses for fixed maturities. The unrealized losses on these investments are largely due to the declining market for mortgage related securities in reaction to the subprime credit crisis. These losses are spread across approximately 442 securities. Similar to mortgage- backed securities, the Company measures its asset-backed portfolio for impairments based on the security's credit rating and whether the security has an unrealized loss. When the fair value of the securities are below amortized cost and there are negative changes in estimated future cash flows, the securities are deemed other than temporarily impaired and a realized loss is recognized in net investment losses in the accompanying Consolidated Statement of Income. The Company also evaluates these securities for other than temporary impairments based on facts and circumstances, even if there has been no negative change in estimated future cash flows. Asset-backed securities that were priced below 95% of the security's amortized cost represented $50 million or 66% of the total unrealized losses for asset-backed securities. The Company did not consider these investments to be other than temporarily impaired. NET UNREALIZED INVESTMENT GAINS (LOSSES) Net unrealized investment gains (losses) on available-for-sale investments are included in the Consolidated Balance Sheet as a component of accumulated other comprehensive income. Changes in these amounts include reclassification adjustments for prior period unrealized gains (losses) that have been recognized as realized gains (losses) during the current year and are included in net investment losses in the accompanying Consolidated Statement of Income. The amounts for the years ended December 31, 2007, 2006 and 2005 are as follows (in millions):
2007 2006 2005 ---- ----- ----- Net unrealized investment gains, beginning of the year................................................ $ 77 $ 231 $ 653 ---- ----- ----- Changes in net unrealized investment gains (losses) attributable to: Investments: Net unrealized investment gains (losses) arising during the period.............................. 41 (217) (578) Less: Reclassification adjustments for gains (losses) included in net income................ 15 (1) 60 ---- ----- ----- Change in net unrealized investment gains (losses), net of adjustments................... 26 (216) (638) Impact of net unrealized investment gains (losses) on: DAC................................................. (14) 55 201 Policyholders' account balances and future policy benefits......................................... 9 4 (10) Other assets (deferred sales inducements)........... (3) 3 25 ---- ----- ----- Change in net unrealized investment gains (losses).... 18 (154) (422) ---- ----- ----- NET UNREALIZED INVESTMENT GAINS, END OF YEAR.......... $ 95 $ 77 $ 231 ==== ===== =====
Net unrealized investment gains (losses) arising during the period reported in the preceding table for the years ended December 31, 2007, 2006 and 2005 are net of income tax expense (benefit) of $22 million, $(117) million and $(311) million, respectively. 23 NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION (A WHOLLY OWNED SUBSIDIARY OF NEW YORK LIFE INSURANCE COMPANY) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) Reclassification adjustments reported in the preceding table for the years ended December 31, 2007, 2006 and 2005 are net of income tax expense (benefit) of $8 million, less than $(1) million and $32 million, respectively. DAC in the preceding table for the years ended December 31, 2007, 2006 and 2005 are net of income tax (benefit) expense of $(8) million, $29 million and $108 million, respectively. Policyholders' account balances and future policy benefits reported in the preceding table for the years ended December 31, 2007, 2006 and 2005 are net of income tax expense (benefit) of $5 million, $2 million and $(5) million, respectively. Other assets (deferred sales inducements) in the preceding table for the years ended December 31, 2007, 2006 and 2005 are net of income tax (benefit) expense of $(1) million, $2 million, and $14 million, respectively. The components of net unrealized investment gains reported in other comprehensive income at December 31, 2007, 2006 and 2005 are as follows (in millions):
2007 2006 2005 ---- ---- ----- Net unrealized investment gains....................... $177 $137 $ 473 Impact of net unrealized investment gains on: DAC................................................. (41) (19) (103) Policyholders' account balance and future policy benefits......................................... 9 (5) (11) Other assets (deferred sales inducements)........... 1 5 (1) Deferred taxes...................................... (51) (41) (127) ---- ---- ----- TOTAL NET UNREALIZED INVESTMENT GAINS................. $ 95 $ 77 $ 231 ==== ==== =====
NOTE 5 -- POLICYHOLDERS' LIABILITIES POLICYHOLDERS' ACCOUNT BALANCES Policyholders' account balances at December 31, 2007 and 2006 were as follows (in millions):
2007 2006 ------- ------- Deferred annuities...................................... $23,950 $23,243 Universal life contracts................................ 18,180 17,549 Supplementary contracts without life contingencies...... 287 263 Unearned revenue liability.............................. 270 245 Other................................................... 108 9 ------- ------- TOTAL POLICYHOLDERS' ACCOUNT BALANCES................. $42,795 $41,309 ======= =======
Policyholders' account balances on the above contracts are equal to cumulative deposits plus interest credited less withdrawals and less mortality and expense charges, where applicable. For deferred annuities, supplementary contracts without life contingencies, and other deposit type contracts, account value approximates fair value. Unearned revenue liability represents amounts that have been assessed to compensate the insurer for services to be performed over future periods. Included in other is the fair value of embedded derivatives related to guaranteed minimum accumulation benefits ("GMAB") on deferred annuity contracts. 24 NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION (A WHOLLY OWNED SUBSIDIARY OF NEW YORK LIFE INSURANCE COMPANY) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) The following table highlights the interest rate assumptions generally utilized in calculating policyholders' account balances, as well as certain withdrawal characteristics associated with these accounts at December 31, 2007:
PRODUCT INTEREST RATE WITHDRAWAL/SURRENDER CHARGES ------- ------------- ---------------------------- Deferred annuities................ 2.25% to 8.00% Surrender charges 0% to 10% for up to 10 years. Universal life contracts.......... 3.05% to 5.76% Various up to 19 years. Supplementary contracts without life contingencies.............. 3.50% No surrender or withdrawal charges.
FUTURE POLICY BENEFITS Future policy benefits at December 31, 2007 and 2006 were as follows (in millions):
2007 2006 ------ ------ Life insurance: Taiwan business -- 100% coinsured....................... $ 968 $1,055 Other life.............................................. 75 66 ------ ------ Total life insurance............................... 1,043 1,121 Individual and group payout annuities..................... 1,680 927 Other contract liabilities................................ 43 39 ------ ------ TOTAL FUTURE POLICY BENEFITS......................... $2,766 $2,087 ====== ======
The following table highlights the key assumptions generally utilized in the calculation of future policy benefit reserves at December 31, 2007:
PRODUCT MORTALITY INTEREST RATE ESTIMATION METHOD ------- --------- ------------- ----------------- Life insurance: Based upon best 3.80% - 7.50% Net level Taiwan business- estimates at time of premium reserve 100% coinsured policy issuance with taking into provision for adverse account death deviations ("PAD"). benefits, lapses and maintenance expenses with PAD. Individual and group payout Based upon best 4.30% - 9.50% Present value of annuities estimates at time of expected future policy issuance with payments at a PAD. rate expected at issue with PAD.
GUARANTEED MINIMUM BENEFITS At December 31, 2007 and 2006, the Company had the following variable contracts with guarantees. (Note that the Company's variable contracts with guarantees may offer more than one type of guarantee in each contract; therefore, the amounts listed are not mutually exclusive). For guarantees of amounts in the event of death, the net amount at risk is defined as the current guaranteed minimum death benefit ("GMDB") in excess of the current account balance at the balance sheet date. For guarantees of accumulation balances, the net amount at risk is defined as GMAB minus the current account balance. 25 NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION (A WHOLLY OWNED SUBSIDIARY OF NEW YORK LIFE INSURANCE COMPANY) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) VARIABLE ANNUITY CONTRACTS -- GMDB AND GMAB The Company issues certain variable annuity contracts with GMDB and GMAB features that guarantee either: a) Return of deposits: the benefit is the greater of current account value or premiums paid (adjusted for withdrawals). b) Ratchet: the benefit is the greater of the current account value, premiums paid (adjusted for withdrawals), or the highest account value on any contractually specified anniversary up to contractually specified ages (adjusted for withdrawals). The following chart provides the account value, net amount at risk and average attained age of contractholders at December 31, 2007 and 2006 for GMDB and GMAB ($ in millions):
2007 --------------------------------------------------- RETURN OF NET DEPOSITS RATCHET --------------------------------- --------------- IN THE EVENT OF ACCUMULATION AT IN THE EVENT OF DEATH SPECIFIED DATE DEATH (GMDB) (GMAB) (GMDB) --------------- --------------- --------------- Account value........................... $4,635 $1,808 $13,989 Net amount at risk...................... $ 11 $ 5 $ 168 Average attained age of contractholders....................... 56 -- 56
2006 --------------------------------------------------- RETURN OF NET DEPOSITS RATCHET --------------------------------- --------------- IN THE EVENT OF ACCUMULATION AT IN THE EVENT OF DEATH SPECIFIED DATE DEATH (GMDB) (GMAB) (GMDB) --------------- --------------- --------------- Account value........................... $3,962 $1,281 $13,456 Net amount at risk...................... $ 16 $ 1 $ 177 Average attained age of contractholders....................... 56 -- 56
The following summarizes the liabilities for guarantees on variable contracts reflected in the general account as future policy benefits for GMDB and policyholders' account balances for GMAB in the accompanying Consolidated Balance Sheet (in millions):
GMDB GMAB TOTALS ---- ---- ------ Balance at January 1, 2005........................... $23 $ 3 $ 26 Incurred guarantee benefits........................ 12 6 18 Paid guarantee benefits............................ (5) -- (5) --- --- ---- Balance at December 31, 2005......................... 30 9 39 Incurred guarantee benefits........................ 4 (2) 2 Paid guarantee benefits............................ (3) -- (3) --- --- ---- Balance at December 31, 2006......................... 31 7 38 Incurred guarantee benefits........................ 13 65 78 Paid guarantee benefits............................ (2) -- (2) --- --- ---- BALANCE AT DECEMBER 31, 2007......................... $42 $72 $114 === === ====
For GMAB, incurred guaranteed minimum benefits incorporates all changes in fair value other than amounts resulting from paid guarantee benefits. The GMDB liability is determined each period end by estimating the 26 NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION (A WHOLLY OWNED SUBSIDIARY OF NEW YORK LIFE INSURANCE COMPANY) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) expected value of death benefits in excess of the projected account balance and recognizing the excess ratably over the accumulation period based on total expected assessments. The Company regularly evaluates estimates used and adjusts the additional liability balance, with a related charge or credit to increase in liabilities for future policy benefits, if actual experience or other evidence suggests that earlier assumptions should be revised. The following assumptions and methodology were used to determine the GMDB liability at December 31, 2007 and 2006: - Data used was 1,000 stochastically generated investment performance scenarios. - Mean investment performance assumption ranged from 0.77% to 7.50% for 2007 and 7.02% to 7.24% for 2006. - Volatility assumption was 14.62% for 2007 and 14.58% for 2006. - Mortality was assumed to be 91%, and 93% of the A2000 table for 2007 and 2006, respectively. - Lapse rates vary by contract type and duration and range from 0.5% to 30%, with an average of 12% for 2007, and 0% to 18%, with an average of 8% for 2006. - Discount rates ranged from 5.26% to 7.61% for 2007 and 6.01% to 7.61% for 2006. GMABs are considered to be derivatives under SFAS No. 149, and are recognized at fair value through interest credited to policyholders' account balances in the accompanying Consolidated Statement of Income. The following table presents the aggregate fair value of assets at December 31, 2007 and 2006, by major investment fund options (including the general and separate account fund options), held by variable annuity products that are subject to GMDB and GMAB benefits and guarantees. Since variable contracts with GMDB guarantees may also offer GMAB guarantees in each contract, the GMDB and GMAB amounts listed are not mutually exclusive (in millions):
2007 2006 ---------------- ---------------- INVESTMENT FUND OPTION: GMDB GMAB GMDB GMAB ----------------------- ------- ------ ------- ------ Separate Account: Equity.................................... $ 9,326 $1,169 $ 8,897 $ 918 Fixed income.............................. 2,148 184 2,413 173 Balanced.................................. 2,063 162 1,830 110 General Account............................. 5,087 293 4,278 80 ------- ------ ------- ------ TOTAL.................................. $18,624 $1,808 $17,418 $1,281 ======= ====== ======= ======
SOP 03-1 LIABILITY FOR INDIVIDUAL LIFE PRODUCTS SOP 03-1 provides guidance for calculating additional liabilities for contracts with certain insurance benefit features. These certain insurance benefit features are generally those that result in profits in early years and losses in subsequent years. For the Company's individual life contracts, SOP 03- 1 primarily affects universal life policies with cost of insurance charges that are significantly less than the expected mortality costs in the intermediate and later policy durations. Generally, the Company has separately defined an insurance benefit feature to be the excess of expected mortality over all assessments. This insurance benefit feature is in addition to the base mortality feature, which the Company defines as expected mortality not in excess of assessments. 27 NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION (A WHOLLY OWNED SUBSIDIARY OF NEW YORK LIFE INSURANCE COMPANY) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) The following table summarizes the SOP 03-1 liability for individual life products reflected in the general account in future policy benefits at December 31, 2007 and 2006 (in millions):
2007 2006 ---- ---- Beginning balance............................................ $23 $15 Net liability increase....................................... 6 8 --- --- Ending balance............................................... $29 $23 === ===
NOTE 6 -- SEPARATE ACCOUNTS The Company maintains nineteen separate accounts for its variable deferred annuity and variable life products; nine of these are registered with the SEC. The assets of these separate accounts represent investments in shares of the New York Life sponsored Mainstay VP Series Funds and other non-proprietary funds. The assets in separate accounts for December 31, 2007 and 2006 are as follows (in millions):
2007 2006 ------- ------- Registered.............................................. $18,340 $16,204 Non-registered.......................................... 753 375 ------- ------- TOTAL SEPARATE ACCOUNT ASSETS......................... $19,093 $16,579 ======= =======
NOTE 7 -- DEFERRED POLICY ACQUISITION COSTS AND SALES INDUCEMENTS An analysis of DAC for the years ended December 31, 2007, 2006 and 2005 was as follows (in millions):
2007 2006 2005 ------ ------ ------ Balance at beginning of year........................ $3,310 $2,978 $2,437 Cumulative effect of change in accounting principle, pre tax (SOP 05-1).................. 15 -- -- ------ ------ ------ Balance at beginning of year, as adjusted......... 3,325 2,978 2,437 Current year additions............................ 560 593 572 Amortized during year............................. (432) (345) (340) ------ ------ ------ Balance at end of year before related adjustments.................................... 128 248 232 Adjustment for change in unrealized investment gains.......................................... (22) 84 309 ------ ------ ------ BALANCE AT END OF YEAR............................ $3,431 $3,310 $2,978 ====== ====== ======
As discussed in Note 2 -- Significant Accounting Policies, the Company adopted SOP 05-1 effective January 1, 2007. 28 NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION (A WHOLLY OWNED SUBSIDIARY OF NEW YORK LIFE INSURANCE COMPANY) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) SALES INDUCEMENTS Changes in deferred sales inducements are as follows (in millions):
2007 2006 2005 ---- ---- ---- Balance at beginning of year........................... $228 $230 $195 Cumulative effect of change in accounting principle, pre-tax (SOP 05-1)................................ 6 -- -- ---- ---- ---- Balance at beginning of year, as adjusted............ 234 230 195 Current year additions............................... 90 37 30 Amortized during year................................ (48) (44) (34) Adjustment for change in unrealized investment gains............................................. (4) 5 39 ---- ---- ---- BALANCE AT END OF YEAR............................... $272 $228 $230 ==== ==== ====
As discussed in Note 2 -- Significant Accounting Policies, the Company adopted SOP 05-1 effective January 1, 2007. NOTE 8 -- INCOME TAXES A summary of the income tax expense included in the accompanying Consolidated Statement of Income is as follows (in millions):
2007 2006 2005 ---- ---- ---- Current: Federal.............................................. $154 $ 85 $119 State and local...................................... 4 1 3 ---- ---- ---- 158 86 122 Deferred: Federal.............................................. 1 52 16 ---- ---- ---- INCOME TAX EXPENSE..................................... $159 $138 $138 ==== ==== ====
The components of the net deferred tax liability reported in other liabilities in the accompanying Consolidated Balance Sheet as of December 31, 2007 and 2006 are as follows (in millions):
2007 2006 ------ ---- Deferred tax assets: Future policyholder benefits............................. $ 669 $623 Employee and agents benefits............................. 61 62 Other.................................................... 16 1 ------ ---- Gross deferred tax assets............................. 746 686 ------ ---- Deferred tax liabilities: DAC...................................................... 964 952 Investments.............................................. 60 44 ------ ---- Gross deferred tax liabilities........................ 1,024 996 ------ ---- NET DEFERRED TAX LIABILITY.......................... $ 278 $310 ====== ====
29 NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION (A WHOLLY OWNED SUBSIDIARY OF NEW YORK LIFE INSURANCE COMPANY) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) Deferred income taxes are generally recognized, based on enacted tax rates, when assets and liabilities have different values for financial statement and tax purposes. The Company's management has concluded that the deferred tax assets are more likely than not to be realized. Therefore, no valuation allowance has been provided. Below is a reconciliation of the statutory Federal income tax rate to the effective tax rate for 2007, 2006 and 2005:
2007 2006 2005 ---- ---- ---- Statutory Federal income tax rate.................... 35.0% 35.0% 35.0% Tax exempt income.................................... (4.7)% (4.9)% (3.8)% Audit liability provision............................ 2.8% -- 0.5% Other................................................ (0.3)% (0.3)% 0.3% ---- ---- ---- EFFECTIVE TAX RATE................................... 32.8% 29.8% 32.0% ==== ==== ====
Pursuant to the tax allocation agreement discussed in Note 2 -- Significant Accounting Policies, as of December 31, 2007 and 2006, the Company had recorded an income tax (payable)/receivable from New York Life of $(95) million and $5 million, respectively, included in other liabilities and other assets in the accompanying Consolidated Balance Sheet. The Company's federal income tax returns are routinely examined by the Internal Revenue Service ("IRS") and provisions are made in the financial statements in anticipation of the results of these audits. The IRS has completed audits through 2001 and has begun auditing tax years 2002 through 2004. There were no material effects on the Company's results of operations as a result of these audits. The Company believes that its recorded income tax liabilities are adequate for all open years. A reconciliation of the beginning and ending amount of unrecognized tax benefits at December 31, 2007 is as follows (in millions):
TOTAL UNRECOGNIZED TAX BENEFITS ------------ BALANCE AT JANUARY 1, 2007 (DATE OF ADOPTION OF FIN NO. 48).. $ 94 Reductions for tax positions of prior years.................. (1) Additions for tax positions of current year.................. 14 ---- BALANCE AT DECEMBER 31, 2007................................. $107 ====
The total amount of unrecognized tax benefits that, if recognized, would impact the effective tax rate is $42 million. The Company classifies interest and penalties related to tax uncertainties as income tax expense. Total interest and penalties for the year ended December 31, 2007 aggregated $10 million and is included in income tax expense in the accompanying Consolidated Statement of Income. At December 31, 2007, the Company had accrued $33 million of liabilities for tax-related interest, which is reported on the accompanying Consolidated Balance Sheet (included in other liabilities). The Company does not anticipate any significant changes to its total unrecognized tax benefits within the next 12 months. NOTE 9 -- REINSURANCE The Company enters into reinsurance agreements in the normal course of its insurance business to reduce overall risk and to be able to issue life insurance policies in excess of its retention. Currently the Company reinsures the mortality risk on new life insurance policies on a quota-share yearly renewable term basis for almost all products. The Company had typically retained 10% of each risk until 2005 when it began retaining larger shares on 30 NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION (A WHOLLY OWNED SUBSIDIARY OF NEW YORK LIFE INSURANCE COMPANY) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) many products. The quota-share retained now ranges from 10% to 63% and most products are fully retained if the policy size is less than $1 million. Most of the reinsured business is on an automatic basis. Cases in excess of the Company's retention and certain substandard cases are reinsured facultatively. The Company does not have any individual life reinsurance agreements that do not transfer risk or contain risk limiting features. The Company remains liable for reinsurance ceded if the reinsurer fails to meet its obligation on the business it has assumed. The Company periodically reviews the financial condition of its reinsurers and amounts recoverable in order to minimize its exposure to losses from reinsurer insolvencies. When necessary, an allowance is recorded for reinsurance the Company cannot collect. Three reinsurance companies account for approximately 72% and 69% of the reinsurance ceded to non-affiliates at December 31, 2007 and 2006, respectively. In December 2004, the Company reinsured 90% of a block of inforce life insurance business, consisting of Universal Life, Variable Universal Life (VUL), Target Life and Asset Preserver, with New York Life. The agreement used a combination of coinsurance with funds withheld for the fixed portion maintained in the general account and modified coinsurance (MODCO) for the VUL policies in the Separate Accounts. Under both the MODCO and Funds Withheld treaties, the Company will retain the assets held in relation to the policyholders' account balances and separate account liabilities. An experience refund will be paid to the Company at the end of each quarterly accounting period for 100% of the profits in excess of $5 million per year. Under SFAS No. 133, "Accounting for Derivative Instruments and Hedging Activities" Implementation Issue No. B36, "Embedded Derivatives: Modified Coinsurance Arrangements and Debt Instruments that Incorporate Credit Risk Exposures that are Unrelated or Only Partially Related to Creditworthiness of the Obligor under those Instruments", the Funds Withheld and the MODCO treaties, along with the experience rating refund represents an embedded derivative, which is required to be carried at fair value. The fair value of this embedded derivative approximated $4 million and $3 million for December 31, 2007 and 2006, respectively, and is included in amounts recoverable from reinsurer in the accompanying Consolidated Balance Sheet. The change in fair value of this embedded derivative was $1 million, $3 million and $0 million for the year ended December 31, 2007, 2006 and 2005, respectively, and is included in net revenue from reinsurance in the accompanying Consolidated Statement of Income. In connection with the above described reinsurance agreement with New York Life, the Company recorded a deferred gain of $244 million, which includes the $25 million purchase price and $219 million of GAAP reserves recoverable from the reinsurer in excess of the funds withheld liability. For the year ended December 31, 2007, 2006 and 2005, $44 million, $54 million and $20 million, respectively, of the deferred gain was amortized and is included in net revenue from reinsurance in the accompanying Consolidated Statement of Income. The effect of this affiliated reinsurance agreement for the years ended December 31, 2007, 2006 and 2005 was as follows (in millions):
2007 2006 2005 ------ ------ ------ Fees-universal life policies ceded.................. $ 317 $ 341 $ 387 ------ ------ ------ Net revenue from reinsurance........................ $ 204 $ 210 $ 266 ------ ------ ------ Policyholders' benefits ceded....................... $ 110 $ 130 $ 117 ------ ------ ------ Amounts recoverable from reinsurer.................. $5,455 $5,238 $5,020 ------ ------ ------ Amounts payable to reinsurer........................ $5,349 $5,089 $4,821 ------ ------ ------ Other liabilities (deferred gain, net of amortization)..................................... $ 126 $ 170 $ 224 ------ ------ ------
Effective July 1, 2002, the Company transferred the Taiwan branch's insurance book of business to an affiliated company, New York Life Insurance Taiwan Corporation ("NYLT"), an indirect wholly owned subsidiary of New York Life. The Company is jointly liable with NYLT for two years from the giving of notice to all obligees for all matured obligations and for two years after the maturity date of not-yet matured obligations. NYLT is also contractually liable, under indemnification provisions of the transaction, for any liabilities that may be asserted against the Company. The 31 NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION (A WHOLLY OWNED SUBSIDIARY OF NEW YORK LIFE INSURANCE COMPANY) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) transfer of the branch's net assets was accounted for as a long-duration coinsurance transaction. Under this accounting treatment, the insurance related liabilities remain on the books of the Company and an offsetting reinsurance recoverable is established. Additionally, premiums and benefits associated with any business sold prior to July 1, 2002 are reflected in the Company's accompanying Consolidated Statement of Income. Accordingly, the Company recorded the following with respect to this transaction (in millions):
2007 2006 2005 ---- ------ ---- Amounts recoverable from reinsurer.................... $968 $1,055 $961 Premiums ceded........................................ $121 $ 158 $127 Benefits ceded........................................ $214 $ 81 $ 69
The effects of all reinsurance for the years ended December 31, 2007, 2006 and 2005 were as follows (in millions):
2007 2006 2005 ------ ------ ------ Premiums: Direct............................................ $ 976 $ 723 $ 265 Assumed........................................... 1 1 1 Ceded............................................. (122) (159) (128) ------ ------ ------ Net premiums........................................ $ 855 $ 565 $ 138 ====== ====== ====== Fees-universal life and annuity policies ceded...... $ 515 $ 509 $ 530 ------ ------ ------ Net revenue from reinsurance........................ $ 206 $ 214 $ 276 ------ ------ ------ Policyholders' benefits ceded....................... $ 522 $ 350 $ 312 ------ ------ ------ Increase in ceded liabilities for future policyholder benefits............................. $ 11 $ 8 $ 10 ------ ------ ------ Amounts recoverable from reinsurer.................. $6,601 $6,432 $6,090 ------ ------ ------ Amounts payable to reinsurer........................ $5,379 $5,114 $4,844 ------ ------ ------ Other liabilities (deferred gain, net of amortization)..................................... $ 126 $ 170 $ 224 ------ ------ ------
NOTE 10 -- DERIVATIVE FINANCIAL INSTRUMENTS AND RISK MANAGEMENT The Company uses derivative financial instruments to manage interest rate, currency and market risk. These derivative financial instruments include interest rate and equity options and interest rate and currency swaps. The Company does not engage in derivative financial instrument transactions for speculative purposes. The Company deals with highly rated counterparties and does not expect the counterparties to fail to meet their obligations under the contracts. The Company has controls in place to monitor credit exposures by limiting transactions with specific counterparties within specified dollar limits and assessing the creditworthiness of counterparties. The Company uses netting arrangements incorporated in master agreements and collateral support agreements with counterparties and adjusts transaction levels, when appropriate, to minimize risk. To further minimize risk, credit support annexes are negotiated as part of swap documentation entered into by the Company with counterparties. The credit support annex requires that a swap counterparty post collateral to secure that portion of its anticipated swap obligation in excess of a specified threshold. The threshold is lowered with a decline in the counterparties' rating. Collateral received is invested in short-term investments. Notional or contractual amounts of derivative financial instruments provide a measure of involvement in these types of transactions and do not represent the amounts exchanged between the parties engaged in the transaction. 32 NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION (A WHOLLY OWNED SUBSIDIARY OF NEW YORK LIFE INSURANCE COMPANY) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) The amounts exchanged are determined by reference to the notional amounts and other terms of the derivative financial instruments, which relate to interest rates, exchange rates, or other financial indices. The following table presents the notional and fair value of derivative financial instruments for the years ended December 31, 2007 and 2006 (in millions):
DECEMBER 31, DECEMBER 31, 2007 2006 ---------------- ---------------- NOTIONAL FAIR NOTIONAL FAIR VALUE VALUE VALUE VALUE -------- ----- -------- ----- Interest rate swaps........................... $ 1,183 $ 12 $ 2,549 $11 Currency swaps................................ 129 (14) 101 (5) Equity options................................ 315 19 315 11 Interest rate options......................... 19,050 27 9,500 8 Credit default swaps.......................... 1 -- -- -- ------- ---- ------- --- TOTAL....................................... $20,678 $ 44 $12,465 $25 ======= ==== ======= ===
The notional and fair value amounts by type of hedge designation for the years ended December 31, 2007 and 2006 is as follows (in millions):
DECEMBER 31, DECEMBER 31, 2007 2006 ---------------- ---------------- NOTIONAL FAIR NOTIONAL FAIR VALUE VALUE VALUE VALUE -------- ----- -------- ----- Fair value hedges............................. $ -- $-- $ -- $-- Cash flow hedges.............................. 245 -- 242 4 Non-qualifying derivatives.................... 20,433 44 12,223 21 ------- --- ------- --- TOTAL....................................... $20,678 $44 $12,465 $25 ======= === ======= ===
For the years ended December 31, 2007 and 2006, there were no net investment (losses) gains related to the ineffective portion of fair value hedges. During 2007 and 2006, there were no fair value hedges that discontinued hedge accounting treatment due to ineffectiveness. Presented below is a roll forward of the components of other comprehensive (loss) income before taxes related to cash flow hedges (in millions):
2007 2006 2005 ---- ---- ---- Other comprehensive income balance at the beginning of the year............................................... $ 2 $ 7 $ 8 Losses deferred in other comprehensive income on the effective portion of cash flow hedges.................. (5) (7) (1) Losses (gains) reclassified to net income................ 1 2 -- --- --- --- Other comprehensive (loss) income balance at the end of the year............................................... $(2) $ 2 $ 7 === === ===
The ineffective portion of cash flow hedges was less than $1 million for the years ended December 31, 2007, 2006, and 2005. All components of each derivative's gains or losses were included in the assessment of hedge effectiveness. There were no instances in which the Company discontinued cash flow hedge accounting because the forecasted transactions did not occur on the anticipated date or in the additional time period permitted by 33 NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION (A WHOLLY OWNED SUBSIDIARY OF NEW YORK LIFE INSURANCE COMPANY) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) SFAS No. 149. There were no hedged forecasted transactions, other than the receipt or payment of variable interest payments. For cash flow hedges, the estimated amount of existing gains and losses that are reported in accumulated other comprehensive income at December 31, 2007 related to periodic interest payments on assets and liabilities being hedged that is expected to be reclassified into earnings within the next 12 months is less than $(1) million. The Company has derivative instruments that do not qualify for hedge accounting treatment, which include interest rate corridor and equity options and various interest rate swaps. Derivatives that do not qualify for hedge accounting are carried at fair value with changes in value included in net investment losses. For the years ended December 31, 2007, 2006 and 2005, the Company included in net investment losses in the accompanying Consolidated Statement of Income $16 million, $(6) million and $(3) million, respectively, for changes in fair value related to derivatives that do not qualify for hedge accounting. As of December 31, 2007 and 2006, there were no embedded derivatives that could not be separated from their host contracts. NOTE 11 -- COMMITMENTS AND CONTINGENCIES LITIGATION The Company is a defendant in individual and/or alleged class action suits arising from its agency sales force, insurance (including variable contracts registered under the federal securities law), investment, retail securities, and/or other operations, including actions involving retail sales practices. Most of these actions seek substantial or unspecified compensatory and punitive damages. The Company is also from time to time involved in various governmental, administrative, and investigative proceedings and inquiries. Notwithstanding the uncertain nature of litigation and regulatory inquiries, the outcome of which cannot be predicted, the Company believes that, after provisions made in the financial statements, the ultimate liability that could result from litigation and proceedings would not have a material adverse effect on the Company's financial position; however, it is possible that settlements or adverse determinations in one or more actions or other proceedings in the future could have a material adverse effect on the Company's operating results for a given year. ASSESSMENTS Most of the jurisdictions in which the Company is licensed to transact business, require life insurers to participate in guaranty associations which are organized to pay contractual benefits pursuant to insurance policies issued by impaired, insolvent or failed life 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 line of business in which the impaired, insolvent or failed life insurer is engaged. Some states permit member insurers to recover assessments through full or partial premium tax offsets. The Company has received notification of the insolvency of various life insurers. It is expected that these insolvencies will result in remaining guaranty fund assessments against the Company of approximately $6 million, which have been accrued in other liabilities in the accompanying Consolidated Balance Sheet. LOANED SECURITIES AND REPURCHASE AGREEMENTS The Company participates in a securities lending program for the purpose of enhancing income on certain securities held. At December 31, 2007 and 2006, $1,625 million and $971 million, respectively, of the Company's fixed maturity securities were on loan to others. Such assets reflect the extent of the Company's involvement in securities lending, not the Company's risk of loss. At December 31, 2007 and 2006, the Company recorded cash collateral received under these agreements of $1,656 million and $1,014 million, respectively, and established a 34 NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION (A WHOLLY OWNED SUBSIDIARY OF NEW YORK LIFE INSURANCE COMPANY) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) corresponding liability for the same amount, which is included in other liabilities in the accompanying Consolidated Balance Sheet. The Company did not hold collateral in the form of securities at December 31, 2007 and 2006, respectively. The Company enters into agreements to purchase and resell securities, and agreements to sell and repurchase securities for the purpose of enhancing income on the securities portfolio. At December 31, 2007 and 2006, the Company had agreements to purchase and resell securities totaling $682 million and $377 million at an average coupon rate of 4.20% and 5.26%, respectively. At December 31, 2007, the Company had agreements to sell and repurchase securities totaling $2 million at an average coupon rate of 4.50%. At December 31, 2006, the Company did not have any agreements to sell and repurchase securities. Under these agreements to sell and repurchase, the Company obtains the use of funds from a broker for generally one month. Collateral received is invested in short-term investments with an offsetting collateral liability. The liability reported in the accompanying Consolidated Balance Sheet (included in other liabilities) approximates fair value. NOTE 12 -- RELATED PARTY TRANSACTIONS The Company has significant transactions with New York Life and its affiliates. Because of these relationships, it is possible that the terms of the transactions are not the same as those that would result from transactions among wholly unrelated parties. New York Life provides the Company with services and facilities for the sale of insurance and other activities related to the business of insurance. New York Life charges the Company for the identified costs associated with these services and facilities under the terms of an administrative service agreement between New York Life and the Company. Such costs, amounting to $629 million, $624 million and $590 million for the years ended December 31, 2007, 2006 and 2005, respectively, are reflected in operating expenses and net investment income in the accompanying Consolidated Statement of Income. The Company is a party to an affiliated group air transportation service agreement entered into with NYLIFE LLC, a direct wholly owned subsidiary of New York Life, in November 2004. Under the terms of the agreement the Company, in conjunction with certain specified affiliates, leases an aircraft from NYLIFE LLC. Costs associated with the lease are determined on a fully allocated basis and allotted to the parties based on usage. The Company's share of expenses associated with the lease of the aircraft was $1 million for each of the years ended December 31, 2007, 2006 and 2005. The agreement expires in November 2009, with automatic one-year renewals, unless terminated earlier. The Company has entered into an investment advisory and administrative services agreement with New York Life Investment Management LLC ("NYLIM"), an indirect wholly owned subsidiary of New York Life, to provide investment advisory services to the Company. At December 31, 2007, 2006 and 2005, the total cost for these services amounted to $41 million, $40 million and $37 million, respectively, which are included in the costs of services billed by New York Life to the Company, as noted above. In addition, NYLIM has an Investment Advisory Agreement with the Mainstay VP Series Fund, Inc. (the "Fund"), a registered investment company whose shares are sold to various separate accounts of the Company. NYLIM, the administrator of the Fund and the Company have entered into agreements regarding administrative services to be provided by the Company. Under the terms of the agreement, NYLIM pays the Company administrative fees for providing services to the Fund. The Company recorded fee income from NYLIM for the years ended December 31, 2007, 2006 and 2005 of $17 million, $15 million, and $13 million, respectively. At December 31, 2007 and 2006, the Company had a net liability of $197 million and $239 million, respectively, for the above described services which are included in other liabilities in the accompanying Consolidated Balance Sheet. The terms of the settlement generally require that these amounts be settled in cash within ninety days. 35 NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION (A WHOLLY OWNED SUBSIDIARY OF NEW YORK LIFE INSURANCE COMPANY) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) To satisfy its obligations under certain structured settlement agreements with unaffiliated insurance companies, beneficiaries and other non-affiliated entities, the Company owns certain single premium annuities issued by New York Life. The carrying value of the annuity contracts is based upon the actuarially determined value of the obligations under the structured settlement contracts, which generally have some life contingent benefits. The obligations are based upon the actuarially determined present value of expected future payments. Interest rates used in establishing such obligations range from 5.02% to 7.81%. At December 31, 2007 and 2006, the carrying value of the interest in annuity contracts and the obligations under structured settlement agreements in the accompanying Consolidated Balance Sheet amounted to $4,468 million and $4,240 million, respectively. The Company has directed New York Life to make the payments under the annuity contracts directly to the payees under the structured settlement agreements. In addition, the Company has issued certain annuity contracts to New York Life in order that New York Life may satisfy its third party obligations under certain structured settlement agreements. Interest rates used in establishing such obligations range from 5.84% to 6.37%. The Company has been directed by New York Life to make the payments under the annuity contracts directly to the beneficiaries under these structured settlement agreements. At December 31, 2007 and 2006, the amount of outstanding reserves on these contracts included in future policy benefits was $184 million and $183 million, respectively. The Company has a variable product distribution agreement with NYLIFE Distributors, an indirect wholly owned subsidiary of New York Life, granting NYLIFE Distributors the exclusive right to distribute, and be the principal underwriter of the Company's variable product policies. NYLIFE Distributors has an agreement with NYLIFE Securities, another indirect wholly owned subsidiary of New York Life, under which registered representatives of NYLIFE Securities solicit sales of these policies. In connection with this agreement, the Company incurred commission expense to NYLIFE Securities' registered representatives of $111 million, $92 million and $86 million, for the years ended December 31, 2007, 2006 and 2005, respectively. The Company has a credit agreement with New York Life, dated April 1, 1999, wherein New York Life can borrow funds from the Company. The maximum amount available to New York Life is $490 million. No outstanding balance was due to the Company at December 31, 2007 or December 31, 2006. The Company also has a credit agreement with New York Life, dated September 30, 1993, in which the Company can borrow up to $490 million. During 2007 and 2006, the credit facility was not used, no interest was paid and no outstanding balance was due. As an alternative credit facility to the foregoing credit arrangement with New York Life, on December 23, 2004, the Company entered into a credit agreement with New York Life Capital Corporation ("Capital Corporation"), an indirect wholly owned subsidiary of New York Life, in which the Company can borrow up to $490 million. As of December 31, 2007 and 2006 there was no outstanding balance due to Capital Corporation. Interest expense for 2007, 2006 and 2005 was $1 million, $5 million, and $2 million, respectively. During August 2003, the Company transferred without recourse several private placement debt securities to Madison Capital Funding LLC ("MCF"). MCF is an indirect wholly owned subsidiary of New York Life. MCF paid for the purchase price of the securities transferred by delivering to the Company promissory notes with terms identical to the securities transferred. At December 31, 2007 and 2006, the Company had recorded a receivable from MCF, included in other assets, of $5 million. The Company received interest payments from MCF of less than $1 million for the years ended December 31, 2007, 2006 and 2005. The Company has an arrangement with New York Life whereby a policyholder may convert a New York Life term policy or term rider to a Target Life policy issued by the Company, without any additional underwriting. As compensation for this arrangement, the Company recorded other income of $15 million, $14 million and $17 million for the years ended December 31, 2007, 2006 and 2005, respectively. 36 NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION (A WHOLLY OWNED SUBSIDIARY OF NEW YORK LIFE INSURANCE COMPANY) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) The Company has issued various Corporate Owned Life policies to New York Life for the purpose of informally funding certain benefits for New York Life employees and agents. These policies were issued on the same basis as policies sold to unrelated customers. As of December 31, 2007 and 2006, the Company recorded liabilities of approximately $2,305 million and $2,135 million, respectively, which are included in policyholders' account balances and separate account liabilities in the accompanying Consolidated Balance Sheet. The Company has also issued various Corporate Owned Life policies to separate Voluntary Employees' Beneficiary Association (VEBA) trusts formed for the benefit of New York Life's retired employees and agents. These policies were issued on the same basis as policies sold to unrelated customers. As of December 31, 2007 and 2006, policyholders' account balances and separate account liabilities related to these policies aggregated $313 million and $305 million, respectively. The Company has an agreement with NYLINK Insurance Agency Incorporated ("NYLINK"), an indirect wholly owned subsidiary of New York Life, granting NYLINK the right to solicit applications for the Company's products through NYLINK's subagents. For the years ended December 31, 2007, 2006 and 2005, the Company recorded commission and fee expense to NYLINK agents of $6 million. Effective December 31, 2004, the Company entered into a reinsurance agreement with New York Life (see Note 9 -- Reinsurance for more details). Effective July 1, 2002, the Company transferred its Taiwan branch insurance book of business to NYLT, which is accounted for as a long-duration coinsurance transaction (see Note 9 -- Reinsurance for more details). NOTE 13 -- SUPPLEMENTAL CASH FLOW INFORMATION Income taxes paid were $146 million, $78 million and $85 million during 2007, 2006 and 2005, respectively. Total interest paid was $17 million, $18 million and $19 million during 2007, 2006 and 2005, respectively. Non-cash investing transactions were $4 million, $35 million and $13 million for the years ended December 31, 2007, 2006 and 2005, respectively. NOTE 14 -- STATUTORY FINANCIAL INFORMATION Accounting practices used to prepare statutory financial statements for regulatory filings of life insurance companies differ in certain instances from GAAP. The Delaware Insurance Department (the "Department") recognizes only statutory accounting practices for determining and reporting the financial condition and results of operations of an insurance company, and for determining its solvency under the Delaware Insurance Law. In making such determinations the Department gives no consideration to financial statements prepared in accordance with accounting principles generally accepted in the United States of America. At December 31, 2007 and 2006, statutory stockholder's equity was $2,650 million and $2,324 million, respectively. Statutory net income for the years ended December 31, 2007, 2006 and 2005 was $289 million, $252 million and $231 million, respectively. The Company is restricted as to the amounts it may pay as dividends to New York Life. Under Delaware Insurance Law, dividends on capital stock can be distributed only out of earned surplus. Furthermore, without prior approval of the Delaware Insurance Commissioner, dividends cannot be declared or distributed which exceed the greater of ten percent of the Company's surplus or one hundred percent of net gain from operations. The Company did not pay or declare a dividend in 2007. The Company declared and paid a $12 million dividend to its sole shareholder New York Life for December 31, 2006. As of December 31, 2007, the amount of available and accumulated funds derived from earned surplus from which the Company can pay dividends is $1,215 million. The maximum amount of dividends that may be paid in 2008 without prior approval is $348 million. 37 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Board of Directors and Stockholder of New York Life Insurance and Annuity Corporation: In our opinion, the accompanying consolidated balance sheet and the related consolidated statements of income, of stockholder's equity and of cash flow present fairly, in all material respects, the financial position of New York Life Insurance and Annuity Corporation and its subsidiaries (the "Company") at December 31, 2007 and 2006, and the results of their operations and their cash flows for each of the three years in the period ended December 31, 2007 in conformity with accounting principles generally accepted in the United States of America. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit 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, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. As disclosed in Note 12 to the consolidated financial statements, the Company has significant transactions with New York Life Insurance Company and its affiliates. Because of these relationships, it is possible that the terms of the transactions are not the same as those that would result from transactions among wholly unrelated parties. As described in Note 2 of the consolidated financial statements, the Company changed its method of accounting for uncertainty in income taxes and for deferred acquisition costs in connection with modifications or exchanges of insurance contracts on January 1, 2007. PricewaterhouseCoopers LLP New York, New York March 19, 2008 38