New England Variable Annuity Separate Account, et al. – ‘485BPOS’ on 4/25/03

On:  Friday, 4/25/03, at 4:28pm ET   ·   Effective:  4/25/03   ·   Accession #:  950135-3-2599   ·   File #s:  333-51676, 811-08828

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Document/Exhibit                   Description                      Pages   Size 

 1: 485BPOS     American Forerunner Series                           259   1.53M 
 6: EX-99.10(I)  Consent of Deloitte & Touche                          1      7K 
 7: EX-99.10(II)  Consent of Sutherland & Asbill                       1      6K 
 2: EX-99.4(V)  Forms of Endorsement                                  29±    98K 
 3: EX-99.5(III)  Form of Application                                  4±    23K 
 4: EX-99.7     Automatic Reinsurance Agreement                       49    140K 
 5: EX-99.9     Opinion & Consent of Anne Goggin                       2      9K 

485BPOS   —   American Forerunner Series
Document Table of Contents

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 As filed with Securities and Exchange Commission on

April 25, 2003

 Registration Nos. 333-51676
811-8828

SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-4  

REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933   [ ] 
PRE-EFFECTIVE AMENDMENT NO.       [ ] 
POST-EFFECTIVE AMENDMENT NO. 2   [X]
 and
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940   [X] 
          AMENDMENT NO. 23       [X]

(CHECK APPROPRIATE BOX OR BOXES)

NEW ENGLAND VARIABLE ANNUITY SEPARATE ACCOUNT 
(Exact Name of Registrant)

NEW ENGLAND LIFE INSURANCE COMPANY
 (Name of Depositor)
501 Boylston Street, Boston, Massachusetts 02116
(Address of Depositor's Principal Executive Offices)
Depositor's Telephone Number: 617-578-2000

NAME AND ADDRESS OF AGENT FOR SERVICE:
 Anne M. Goggin, Esquire
 Senior Vice President and General Counsel
New England Life Insurance Company
 501 Boylston Street
 Boston, Massachusetts 02117

COPY TO:
Stephen E. Roth, Esquire
 Sutherland Asbill & Brennan LLP
1275 Pennsylvania Avenue, N.W.
 Washington, D.C. 20004-2415

It is proposed that this filing will become effective (check appropriate box)   

[ ]  immediately upon filing pursuant to paragraph (b) of Rule 485              
[X]  on May 1, 2003 pursuant to paragraph (b) of Rule 485                       
[ ]  60 days after filing pursuant to paragraph (a)(1) of Rule 485              
[ ]  on (date) pursuant to paragraph (a)(1) of Rule 485                         
Title of Securities Being Registered:  Individual Variable Annuity Contracts    

================================================================================

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NEW ENGLAND LIFE INSURANCE COMPANY
NEW ENGLAND VARIABLE ANNUITY SEPARATE ACCOUNT 

AMERICAN FORERUNNER SERIES

SUPPLEMENT DATED MAY 1, 2003
TO THE
PROSPECTUS DATED MAY 1, 2003

   The Prospectus describes the charges applicable to Contracts issued on or
after May 1, 2003. For Contracts issued prior to May 1, 2003, however, the      
Asset-Based Insurance Charge for the Annual Step-Up Death Benefit and the       
Greater of Annual Step-Up or 5% Annual Increase Death Benefit is 0.10% lower    
than described in the Prospectus on pages A-10 and A-35 for each Class.         

    In addition, for Contracts for which a completed application and any other
required paper work were received in good order at our Annuity Administrative   
Office by February 14, 2003, the charge for the Guaranteed Minimum Income       
Benefit is 0.15% lower than described in the Prospectus on pages A-8, A-10,     
A-38, and A-42 (0.35% rather than 0.50%).                                       

AFS Supp 05-03                                                                  

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AMERICAN FORERUNNER SERIES
Individual Flexible Premium Variable Annuity Contracts

                                                                [Download Table]
                                                                                
                   Issued By                                                    
New England Variable Annuity Separate Account of  Annuity Administrative Office:
       New England Life Insurance Company                 P.O. Box 14594        
              501 Boylston Street                   Des Moines, IA 50306-3594   
          Boston, Massachusetts 02116                                           
                 (800) 435-4117                                                 

This prospectus offers individual variable annuity contracts (the     
"Contracts") for individuals and some qualified and nonqualified retirement     
plans. You may allocate purchase payments to one or more subaccounts investing  
in these Eligible Funds of the Metropolitan Series Fund, Inc. ("Metropolitan    
Fund"), the Met Investors Series Trust and the American Funds Insurance Series. 

METROPOLITAN FUND                                                               

State Street Research Money Market Portfolio                                    

Lehman Brothers(R) Aggregate Bond Index Portfolio                               

Salomon Brothers Strategic Bond Opportunities                                   
Portfolio                                                                   

Salomon Brothers U.S. Government Portfolio                                      

State Street Research Bond Income Portfolio                                     

Balanced Portfolio                                                              

Alger Equity Growth Portfolio                                                   

Davis Venture Value Portfolio                                                   

FI Structured Equity Portfolio                                                  

Harris Oakmark Large Cap Value Portfolio                                        

MetLife Stock Index Portfolio                                                   

MFS Investors Trust Portfolio                                                   

MFS Research Managers Portfolio                                                 

Met/Putnam Voyager Portfolio                                                    

State Street Research Investment Trust Portfolio                                

State Street Research Large Cap Value Portfolio                                 

FI Mid Cap Opportunities Portfolio                                              

Harris Oakmark Focused Value Portfolio                                          

Janus Mid Cap Portfolio                                                         

MetLife Mid Cap Stock Index Portfolio                                           

Neuberger Berman Partners Mid Cap Value Portfolio                               

Franklin Templeton Small Cap Growth Portfolio                                   

Loomis Sayles Small Cap Portfolio                                               

Russell 2000(R) Index Portfolio                                                 

State Street Research Aurora Portfolio                                          

Morgan Stanley EAFE(R) Index Portfolio                                          

Putnam International Stock Portfolio                                            

MET INVESTORS SERIES TRUST                                                      

Lord Abbett Bond Debenture Portfolio                                            
PIMCO Total Return Portfolio                                                    

Janus Aggressive Growth Portfolio                                               

Met/AIM Mid Cap Core Equity Portfolio                                           

T. Rowe Price Mid-Cap Growth Portfolio                                          

Met/AIM Small Cap Growth Portfolio                                              
PIMCO Innovation Portfolio                                                      

Harris Oakmark International Portfolio                                          

MFS Research International Portfolio                                            

AMERICAN FUNDS INSURANCE SERIES                                                 

American Funds Growth Fund                                                      
American Funds Growth-Income Fund                                               
American Funds Global Small Capitalization Fund                                 

   You may also allocate purchase payments to a Fixed Account in states that
have approved this option. Limits apply to transfers to and from the Fixed      
Account.                                                                        

     When you purchase your Contract, you must select one of five Classes of the
Contract, each of which has different Withdrawal Charges and Asset-Based        
Insurance Charges. The five available Classes of the Contract are:              

-- Standard Class,                                                    

-- B Plus Class,                                                      

-- C Class,                                                           

-- L Class, and                                                       

-- P Class.                                                           

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     If you select the B Plus Class, we will add a bonus amount to each purchase
payment received in the first Contract Year. The overall expenses for the B Plus
Class Contract may be higher than the expenses for a similar Contract that does 
not pay a bonus. Over time, the value of the bonus could be more than offset by 
higher expenses.                                                                

Please read this prospectus carefully and keep it for reference. This 
prospectus contains information that you should know before investing.          

You can obtain a Statement of Additional Information ("SAI") about the
Contracts, dated May 1, 2003. The SAI is filed with the Securities and Exchange 
Commission ("SEC") and is incorporated by reference in this prospectus. The SAI 
Table of Contents is on page A-61 of the prospectus. For a free copy of the SAI,
write or call New England Securities Corporation, 501 Boylston St., Boston,     
Massachusetts 02116, 1-800-356-5015.                                            

NEITHER THE SEC NOR ANY STATE SECURITIES COMMISSION HAS APPROVED THESE
CONTRACTS OR DETERMINED IF THIS PROSPECTUS IS TRUTHFUL OR COMPLETE. ANY         
REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.                           

   THE SECURITIES AND EXCHANGE COMMISSION MAINTAINS A WEB SITE THAT CONTAINS
THE STATEMENT OF ADDITIONAL INFORMATION, MATERIAL INCORPORATED BY REFERENCE, AND
OTHER INFORMATION REGARDING REGISTRANTS THAT FILE ELECTRONICALLY WITH THE SEC.  
THE ADDRESS OF THE SITE IS http://www.sec.gov.                                  

     THE ELIGIBLE FUND PROSPECTUSES ARE ATTACHED. PLEASE READ THEM AND KEEP THEM
FOR REFERENCE.                                                                  

WE DO NOT GUARANTEE HOW ANY OF THE SUBACCOUNTS OR ELIGIBLE FUNDS WILL 
PERFORM. THE CONTRACTS AND THE ELIGIBLE FUNDS ARE NOT DEPOSITS OR OBLIGATIONS   
OF, OR GUARANTEED OR ENDORSED BY, ANY FINANCIAL INSTITUTION AND ARE NOT         
FEDERALLY INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION, THE FEDERAL     
RESERVE BOARD OR ANY OTHER GOVERNMENT AGENCY.                                   

MAY 1, 2003 

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TABLE OF CONTENTS 
OF
THE PROSPECTUS

                                                                [Download Table]

                                                                  PAGE
                                                                  ----
                                                                      
GLOSSARY OF SPECIAL TERMS USED IN THIS PROSPECTUS...........       A-5
HIGHLIGHTS..................................................       A-6
FEE TABLE...................................................      A-10
HOW THE CONTRACT WORKS......................................      A-16
THE COMPANY.................................................      A-17
THE VARIABLE ACCOUNT........................................      A-17
INVESTMENTS OF THE VARIABLE ACCOUNT.........................      A-17
  Investment Advice.........................................      A-21
  Share Classes of the Eligible Funds.......................      A-22
  Substitution of Investments...............................      A-22
THE FIXED ACCOUNT...........................................      A-23
THE CONTRACTS...............................................      A-23
  Standard Class............................................      A-23
  B Plus Class..............................................      A-23
  C Class...................................................      A-24
  L Class...................................................      A-24
  P Class...................................................      A-24
  Purchase Payments.........................................      A-24
  Ten Day Right to Review...................................      A-25
  Allocation of Purchase Payments...........................      A-25
  Contract Value and Accumulation Unit Value................      A-25
  Payment on Death Prior to Annuitization...................      A-25
  Standard Death Benefit....................................      A-26
  Annual Step-Up Death Benefit..............................      A-26
  Greater of Annual Step-Up or 5% Annual Increase Death               
     Benefit................................................      A-26
  Earnings Preservation Benefit Rider.......................      A-27
  Transfer Privilege........................................      A-29
  Dollar Cost Averaging.....................................      A-30
  Asset Rebalancing.........................................      A-31
  Withdrawals...............................................      A-32
  Systematic Withdrawals....................................      A-32
  Suspension of Payments....................................      A-33
  Inactive Contracts........................................      A-33
  Ownership Rights..........................................      A-33
  Requests and Elections....................................      A-34
  Confirming Transactions...................................      A-34
  State Variations..........................................      A-35
ASSET-BASED INSURANCE CHARGE, WITHDRAWAL CHARGE AND OTHER             
  DEDUCTIONS................................................      A-35
  Asset-Based Insurance Charge..............................      A-35
  Contract Administrative Fee...............................      A-36
  Withdrawal Charge.........................................      A-36
  Earnings Preservation Benefit Rider.......................      A-38
  Guaranteed Minimum Income Benefit Rider...................      A-38
  Premium and Other Tax Charges.............................      A-38
  Other Expenses............................................      A-38

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                                                                [Download Table]

                                                                  PAGE
                                                                  ----
                                                                      
ANNUITY PAYMENTS............................................      A-38
  Election of Annuity.......................................      A-38
  Annuity Options...........................................      A-39
  Amount of Annuity Payments................................      A-40
GUARANTEED MINIMUM INCOME BENEFIT...........................      A-41
  Ownership.................................................      A-42
  GMIB Annuity Table........................................      A-42
  Exercising the GMIB Rider.................................      A-42
  GMIB Rider Charge.........................................      A-42
  Termination Provisions....................................      A-43
RETIREMENT PLANS OFFERING FEDERAL TAX BENEFITS..............      A-43
FEDERAL INCOME TAX CONSIDERATIONS...........................      A-43
  Taxation of Non-Qualified Contracts.......................      A-44
  Taxation of Qualified Contracts...........................      A-45
  Possible Tax Law Changes..................................      A-46
VOTING RIGHTS...............................................      A-47
DISTRIBUTION OF THE CONTRACTS...............................      A-47
THE OPERATION OF THE FIXED ACCOUNT..........................      A-48
  Contract Value and Fixed Account Transactions.............      A-48
INVESTMENT PERFORMANCE INFORMATION..........................      A-49
  Yields....................................................      A-49
  Standard Return...........................................      A-49
  Non-Standard Return.......................................      A-49
  Other Performance.........................................      A-50
FINANCIAL STATEMENTS........................................      A-50
ACCUMULATION UNIT VALUES (Condensed Financial                         
  Information)..............................................      A-50
APPENDIX A: Consumer Tips...................................      A-57
APPENDIX B: Withdrawal Charge...............................      A-58
APPENDIX C: Premium Tax.....................................      A-59
APPENDIX D: Exchanged Contracts.............................      A-60
TABLE OF CONTENTS OF STATEMENT OF ADDITIONAL INFORMATION....      A-61

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GLOSSARY OF SPECIAL TERMS USED IN THIS PROSPECTUS 

We have tried to make this prospectus as understandable for you as    
possible. However, in explaining how the Contract works, we have had to use     
certain terms that have special meanings. These terms are defined below:        

ACCOUNT.  A subaccount of the Variable Account or the Fixed Account.  

 ACCUMULATION UNIT.  An accounting device used to calculate the Contract
Value before annuitization.                                                     

  ANNUITANT.  The natural person on whose life Annuity Payments are based.

  ANNUITIZATION.  Application of proceeds under the Contract to an annuity
option on the Maturity Date or upon an earlier date you choose.                 

ANNUITY DATE.  A date on which you choose to begin receiving Annuity  
Payments which must be at least 30 days after issue. If you do not choose a     
date, the Annuity Date will be no later than the Maturity Date shown on the     
Contract Schedule.                                                              

    ANNUITY UNIT.  An accounting device used to calculate the dollar amount of
Annuity payments.                                                               

BENEFICIARY.  The person designated to receive Death Proceeds under a 
Contract if a Contract Owner (or Annuitant, if the Contract is not owned by an  
individual) dies before annuitization of the Contract.                          

     CONTRACT YEAR.  A twelve month period beginning with the date shown on your
Contract and with each Contract anniversary thereafter.                         

DEATH PROCEEDS (PRIOR TO ANNUITIZATION).  The amount we pay, prior to 
annuitization, on receipt of due proof of the death of a Contract Owner (or of  
the annuitant if the Contract is not owned by an individual) and election of    
payment.                                                                        

  FIXED ACCOUNT.  A part of the Company's general account to which you can
allocate net purchase payments. The Fixed Account provides guarantees of        
principal and interest.                                                         

    MATURITY DATE.  The date on which annuity payments begin, unless you apply
the Contract Value to an annuity payment option before then. The Maturity Date  
is the later of (i) the date when the Annuitant at his or her nearest birthday  
would be age 95 (or the maximum age permitted by state law, if less), or (ii) 10
years from the issue date.                                                      

  OWNER (CONTRACT OWNER).  The person or entity which has all rights under
the Contract.                                                                   

PAYEE.  Any person or entity entitled to receive payments under the   
Contract. The term includes (i) an Annuitant, (ii) a Beneficiary or contingent  
Beneficiary who becomes entitled to death proceeds, and (iii) on full           
withdrawals or partial withdrawals of the Contract, the Contract Owner.         

  VARIABLE ACCOUNT.  A separate investment account of the Company, the New
England Variable Annuity Separate Account. The Variable Account is divided into 
subaccounts; each invests in shares of one Eligible Fund.                       

 VARIABLE ANNUITY.  An annuity providing for Annuity payments varying in
amount to reflect the investment experience of a separate investment account.   

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HIGHLIGHTS

TAX DEFERRED VARIABLE ANNUITIES:                                                

 Earnings under variable annuities are usually not taxed until paid out.
This tax treatment is intended to encourage you to save for retirement.         

THE CONTRACTS:                                                                  

    The American Forerunner Series provides for variable annuity payments that
begin at the Maturity Date, or earlier if you choose. Variable annuity payments 
fluctuate with the investment results of the Eligible Funds. (See "Amount of    
Annuity Payments.") We offer other variable annuity contracts that have         
different death benefits, contract features, fund selections, and optional      
programs. However, these other contracts also have different charges that would 
affect your subaccount performance and contract values. To obtain more          
information about these other contracts, contact our Annuity Administrative     
Office or your registered representative.                                       

The Contract allows you to select one of several different charge     
structures, each referred to as a Class, based on your specific situation. Each 
Class imposes varying levels of Withdrawal Charges and Asset-Based Insurance    
Charges. Depending on your expectations and preferences, you can choose the     
Class that best meets your needs.                                               

 Prior to issuance, you must select one of five available Classes of the
Contract:                                                                       

   -- Standard Class, which imposes a Withdrawal Charge on withdrawals equal
   to a maximum of 7% of each purchase payment, reducing annually over 7
years, and an Asset-Based Insurance Charge;                       

-- B Plus Class (which may be referred to as the "Bonus Class"), which
credits a bonus amount to purchase payments received in the first 
   Contract Year, imposes a higher Withdrawal Charge (maximum 9%) over a
longer period of time (9 years), and imposes a relatively higher  
Asset-Based Insurance Charge during the Withdrawal Charge period; 

     -- C Class, which does not impose any Withdrawal Charge on withdrawals, but
imposes a relatively higher Asset-Based Insurance Charge;         

  -- L Class, which reduces the period of time (3 years) that a Withdrawal
  Charge (maximum 7%) applies on withdrawals, but imposes a relatively
higher Asset-Based Insurance Charge; and                          

    -- P Class, which lengthens the period of time (9 years) that a Withdrawal
     Charge (maximum 8%) is imposed on withdrawals, and imposes a relatively
lower Asset-Based Insurance Charge.                               

For the B Plus Class, you should know that over time and under certain
circumstances (such as withdrawal during the last few years that a Withdrawal   
Charge applies, or after an extended period of poor market performance), the    
costs associated with the B Plus Class may exceed the bonus amount and any      
related earnings. You should consider this possibility before purchasing a B    
Plus Class Contract.                                                            

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   Your financial representative can help you decide which Class is best for
you. The following chart shows in graphic form the relative levels of the       
Withdrawal Charge and Asset-Based Insurance Charge under each Class:            

                    Relationship of Withdrawal Charges
                    to Asset-Based Insurance Charges
                    for Each Class of Contract

[GRAPH] 

For actual expenses of each Class, see the Fee Table on page A-10.    

PURCHASE PAYMENTS:                                                              

Currently, the minimum initial and subsequent purchase payments are as
follows (exceptions may apply):                                                 

                                                        [Enlarge/Download Table]

CLASS                                                    INITIAL            SUBSEQUENT
-----                                                    -------            ----------
                                                                                      
Standard, P................................... $ 5,000(nonqualified plans)     $500   
                                               $ 2,000(qualified plans)               
C,L........................................... $25,000                         $500   
B Plus........................................ $10,000                         $500   

We may limit the purchase payments you can make. In addition, you may not make a
purchase payment (1) within the seven years before the Contract's Maturity Date 
for the Standard Class, nine years for the P Class and the B Plus Class, and    
three years for the L Class, or (2) after a Contract Owner (or the Annuitant, if
the Contract is not owned by an individual) reaches age 91. For joint Contract  
Owners, you may not make a purchase payment after the older Contract Owner      
reaches age 86. (See "Purchase Payments.")                                      

OWNERSHIP:                                                                      

A purchaser may be an individual, employer, trust, corporation,       
partnership, custodian or any entity specified in an eligible employee benefit  
plan. A contract generally may have two owners (both of whom must be            
individuals). Subject to state approval, certain retirement plans qualified     
under the Internal Revenue Code ("the Code") may purchase the Contract.         

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  FOR ANY TAX QUALIFIED ACCOUNT (E.G. INDIVIDUAL RETIREMENT ACCOUNTS), THE
----    
TAX DEFERRED ACCRUAL FEATURE IS PROVIDED BY THE TAX QUALIFIED RETIREMENT PLAN.  
THEREFORE, THERE SHOULD BE REASONS OTHER THAN TAX DEFERRAL FOR ACQUIRING AN     
ANNUITY CONTRACT WITHIN A QUALIFIED PLAN.                                       

  For contract transactions, we rely on instructions from Contract Owners,
whether a trustee or custodian of an eligible retirement plan or an individual  
owner.                                                                          

INVESTMENT OPTIONS:                                                             

You may allocate purchase payments to the subaccounts or to the Fixed 
Account. The Fixed Account is not available to Contracts purchased on or after  
May 1, 2003 for which the C Class has been selected. The Fixed Account is also  
not available to Contracts purchased in New York on or after May 1, 2003. You   
can allocate your Contract Value to as many of the accounts as you choose       
including the Fixed Account at any time. You must allocate a minimum of $500    
dollars to each account you select. However, for individual retirement          
annuities, individual retirement accounts and Roth Individual Retirement        
Accounts, if purchase payments are less than $2,000, then you may allocate the  
payment to a maximum of four subaccounts.                                       

You can change your purchase payment allocation. We believe that under
current tax law you can transfer Contract Value between accounts without Federal
income tax. We reserve the right to limit transfers and charge a transfer fee.  
Currently, we do not charge a transfer fee or limit the number of transfers, but
we do apply special limits to "market timing." (See "Transfer Privilege.") The  
minimum transfer amount is currently $500, unless we have agreed otherwise.     
Special limits apply to transfers to and from the Fixed Account. (See "THE FIXED
ACCOUNT.") The maximum transfer amount is $500,000 for each transaction.        

CHARGES:                                                                        

We apply the following charges to your Contract:                      

-- premium tax charge, in some states.                                

 -- asset-based insurance charge at an annual rate ranging from 1.15% to
       1.95% of the Variable Account's daily net assets depending upon the Class
     and death benefit option you select (these amounts increase by .25% for
subaccounts investing in the American Funds Insurance Series).    

    -- annual contract administrative fee of $30 during the accumulation phase
and pro rata at annuitization (if the Contract Value is less than 
$50,000).                                                         

   -- except for C Class, withdrawal charge that varies by Class (maximum of
       9% of each purchase payment made) on certain full and partial withdrawals
and certain annuitization transactions.                           

   -- for Contracts with a Guaranteed Minimum Income Benefit Rider, a fee of
   0.50% imposed on the Income Base annually in arrears on each Contract
Anniversary prior to annuitization.                               

-- for Contracts with an Earnings Preservation Benefit Rider, a fee of
 0.25% deducted daily from subaccount assets prior to annuitization.

Certain waivers or reductions may apply. (See "ASSET-BASED INSURANCE  
CHARGE, WITHDRAWAL CHARGE AND OTHER DEDUCTIONS.")                               

We do not deduct a sales charge from purchase payments.               

     For information concerning compensation paid for the sale of contracts, see
"Distribution of the Contracts."                                                

TEN DAY RIGHT TO REVIEW:                                                        

    After you receive the Contract, you have ten days (more in some states) to
return it to us or our agent for cancellation. We will return the Contract Value
(or, in certain states, your purchase payments).                                

PAYMENT ON DEATH:                                                               

   If a Contract Owner (or the Annuitant, if the Contract is not owned by an
individual) dies before annuitization, the Beneficiary receives a death benefit.

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     You will receive the Standard Death Benefit unless you chose to receive one
of two enhanced death benefits--the Annual Step-Up Death Benefit or the Greater 
of Annual Step-Up or 5% Annual Increase Death Benefit. Each of these enhanced   
death benefits will increase the Asset-Based Insurance Charge applicable to your
Contract. You may also elect to purchase, for an additional charge, the Earnings
Preservation Benefit Rider, which provides an additional death benefit to assist
with covering income taxes payable at death, and a Guaranteed Minimum Income    
Benefit Rider ("GMIB"), which provides an additional "floor" on annuity         
payments.                                                                       

     The Standard Death Benefit equals the greater of the current Contract Value
or total purchase payments less a pro rata reduction for partial withdrawals.   
The Annual Step-Up Death Benefit equals the greater of current Contract Value or
the greatest Contract Value on any prior anniversary plus subsequent purchase   
payments, less a pro rata reduction for subsequent withdrawals. The Greater of  
Annual Step-Up or 5% Annual Increase Rider equals the greatest of: current      
Contract Value; purchase payments (less prior withdrawals) accumulated at an    
annual rate of 5%; or the greatest Contract Value on any prior anniversary plus 
subsequent purchase payments, less a pro rata reduction for subsequent          
withdrawals.                                                                    

    Death Proceeds are taxable and generally are included in the income of the
recipient as follows:                                                           

    -- If received under an annuity payment option, they are taxed in the same
manner as annuity payments.                                       

 -- If distributed in a lump sum, they are taxed in the same manner as a
full withdrawal.                                                  

WITHDRAWALS:                                                                    

   Before annuitization you can send us a written request to withdraw all or
part of your Contract Value. After a partial withdrawal, the remaining Contract 
Value must be at least $2,000. Currently, a partial withdrawal must be at least 
$500. Federal tax laws penalize and may prohibit certain premature distributions
from the Contract. (See "FEDERAL INCOME TAX CONSIDERATIONS.")                   

    A Withdrawal Charge will apply to certain full and partial withdrawals and
certain annuitization transactions for Standard, B Plus, L and P Class          
Contracts. On full withdrawals the annual contract administrative fee will be   
deducted. No Withdrawal Charge applies to C Class Contracts. We reserve the     
right to deduct a premium tax charge on full and partial withdrawals in some    
states.                                                                         

    On a Standard, B Plus, L, or P Class Contract in any Contract Year you can
make a withdrawal of a portion of your purchase payments free from any          
Withdrawal Charge (the "free withdrawal amount"). In the first Contract Year, no
free withdrawal amount is available unless it is part of a monthly systematic   
withdrawal program in which the monthly withdrawal amount does not exceed 1/12  
of 10% of total purchase payments. After the first Contract Year, the annual    
free withdrawal amount is equal to 10% of total purchase payments, less the     
total free withdrawal amount previously withdrawn in the same Contract Year.    
Earnings may be withdrawn at any time, free from any Withdrawal Charge.         

REPLACEMENT OF CONTRACTS                                                        

    Generally, it is not advisable to purchase a Contract as a replacement for
an existing annuity contract. You should replace an existing contract only when 
you determine that the Contract is better for you. You may have to pay a        
withdrawal charge on your existing contract, and the Contract will impose a new 
withdrawal charge period. Before you buy a Contract, ask your registered        
representative if purchasing a Contract would be advantageous, given the        
Contract's features, benefits and charges.                                      

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FEE TABLE 

    The following tables describe the fees and expenses that you will pay when
buying, owning, and surrendering the Contract. The first table describes the    
fees and expenses that you will pay at the time that you buy the Contract,      
surrender the Contract, or transfer cash value between Eligible Fund options.   
State premium taxes may also be deducted.                                       

CONTRACT OWNER TRANSACTION EXPENSES                                             

                                                                [Download Table]
                                                                        
Sales Charge Imposed on Purchase Payments.........  None                
Withdrawal Charge (as a percentage of each                              
  purchase payment)...............................  9% declining        
                                                    annually -- see Note
                                                    (1)                 
Transfer Fee(2)...................................  $25                 

NOTES:                                                                          

(1) The Withdrawal Charge is a declining percentage of each purchase payment and
varies by Contract Class, as follows:                                           

                                                        [Enlarge/Download Table]

NUMBER OF                                                                              
COMPLETE YEARS FROM RECEIPT OF  STANDARD CLASS  B PLUS CLASS  L CLASS  P CLASS  C CLASS
PURCHASE PAYMENT                    CHARGE         CHARGE     CHARGE   CHARGE   CHARGE 
------------------------------  --------------  ------------  -------  -------  -------
                                                                                       
0.............................         7%             9%          7%      8%     None  
1.............................         6%             8%          6%      8%           
2.............................         6%             8%          5%      8%           
3.............................         5%             7%          0%      7%           
4.............................         4%             6%          0%      6%           
5.............................         3%             5%          0%      5%           
6.............................         2%             4%          0%      4%           
7.............................         0%             2%          0%      3%           
8.............................         0%             2%          0%      2%           
9 and thereafter..............         0%             0%          0%      0%           

(2) Currently, we do not charge this fee. We reserve the right to limit the     
number and dollar amount of transfers and impose a transfer fee of up to $25. We
will not restrict transfers to less than 12 per Contract Year.                  

The next table describes the fees and expenses that you will pay      
periodically during the time that you own the Contract, not including Eligible  
Fund fees and expenses.                                                         

VARIABLE ACCOUNT ANNUAL EXPENSES                                                
(as a percentage of average daily net assets in the subaccounts)                

    Asset-Based Insurance Charge for all subaccounts except the American
     Funds Growth, American Funds Growth-Income, and American Funds Global
Small Capitalization Subaccounts(1)                             

                                                        [Enlarge/Download Table]

                                   STANDARD CLASS  B PLUS CLASS(2)  C CLASS  L CLASS  P CLASS
                                   --------------  ---------------  -------  -------  -------
                                                                                             
Standard Death Benefit............     1.25%            1.60%        1.60%    1.50%    1.15% 
Annual Step-Up Death Benefit......     1.45%            1.80%        1.80%    1.70%    1.35% 
Greater of Annual Step-Up or 5%                                                              
  Annual Increase Death Benefit...     1.60%            1.95%        1.95%    1.85%    1.50% 

    Asset-Based Insurance Charge for the American Funds Growth, American
   Funds Growth-Income, and American Funds Global Small Capitalization
Subaccounts(1)                                                  

                                                        [Enlarge/Download Table]

                                   STANDARD CLASS  B PLUS CLASS(2)  C CLASS  L CLASS  P CLASS
                                   --------------  ---------------  -------  -------  -------
                                                                                             
Standard Death Benefit............     1.50%            1.85%        1.85%    1.75%    1.40% 
Annual Step-Up Death Benefit......     1.70%            2.05%        2.05%    1.95%    1.60% 
Greater of Annual Step-Up or 5%                                                              
  Annual Increase Death Benefit...     1.85%            2.20%        2.20%    2.10%    1.75% 

                                                                [Download Table]
                                                                    
          Earnings Preservation Benefit Rider(3)............   0.25%
OTHER CONTRACT FEES                                                 
          Annual Contract Administrative Fee(4).............    $30 
          Guaranteed Minimum Income Benefit(5)..............   0.50%

NOTES:                                                                          

(1)  After annuitization, the amount of the Asset-Based Insurance Charge for    
each Class will be the charge that would apply for the standard death 
    benefit; except that for the B Plus Class and the P Class, the Asset-Based
     Insurance Charge will be 1.25% after annuitization. (1.50% for the American
Funds Growth, American Funds                                          
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     Growth-Income, and American Funds Global Small Capitalization Subaccounts).
     We reserve the right to impose an increased Asset-Based Insurance Charge on
   other subaccounts that we add to the Contract in the future. The increase
     will not exceed the annual rate of 0.25% of average daily net assets in any
such subaccounts.                                                     

(2)  The Asset-Based Insurance Charge will be reduced on the B Plus Class by    
0.35% after the expiration of the 9-year Withdrawal Charge period.    

(3)  The charge for the Earnings Preservation Benefit Rider will not be assessed
after annuitization.                                                  

(4)  We will also deduct this fee on full withdrawal (regardless of contract    
   size) and pro rata on annuitization. This fee will not be deducted during
   the accumulation period or on annuitization for Contracts with a Contract
  Value of $50,000 or more. We reserve the right to deduct this fee during
the Annuity Period, pro rata from each annuity payment.               

(5)  The Guaranteed Minimum Income Benefit Rider charge is imposed on the Income
   Base annually in arrears on each Contract Anniversary. The Income Base is
     based on the greater of premiums accumulated with interest and the greatest
 anniversary value for the Contract, subject to certain limitations. The
     charge for the Guaranteed Minimum Income Benefit will not be assessed after
    annuitization. See "GUARANTEED MINIMUM INCOME BENEFIT" on p. A-41 for more
information.                                                          

 This charge is reduced to 0.45% if you choose either the Annual Step-Up
    Death Benefit or the Greater of Annual Step-Up or 5% Annual Increase Death
Benefit.                                                              

The next item shows the minimum and maximum total operating expenses  
charged by the Eligible Funds that you may pay periodically during the time that
you own the Contract. More detail concerning each Eligible Fund's fees and      
expenses is contained below and in the prospectus for each Eligible Fund.       

RANGE OF ELIGIBLE FUND OPERATING EXPENSES                                       

(AS A PERCENTAGE OF AVERAGE NET ASSETS)                                         

                                                                [Download Table]

                                                              MINIMUM   MAXIMUM
                                                              -------   -------
                                                                               
Total Annual Eligible Fund Operating Expenses                                  

(expenses that are deducted from Eligible Fund assets,                         
including management fees, distribution (12b-1) fees, and                      
other expenses).............................................    .56%     4.67% 

                                                                [Download Table]

                                                              MINIMUM   MAXIMUM
                                                              -------   -------
                                                                               
Net Total Annual Eligible Fund Operating Expenses(1)                           

(expenses that are deducted from Eligible Fund assets,                         
including management fees, distribution (12b-1) fees, and                      
other expenses after any applicable waiver or reimbursement                    
arrangement)................................................    .56%     1.40% 

NOTE:                                                                           

(1) The range of Net Total Annual Eligible Fund Operating Expenses takes into   
    account contractual arrangements for certain Eligible Funds that require the
 investment adviser to reimburse or waive Eligible Fund operating expenses
until April 30, 2004, as described in more detail below.                

   The following table shows the annual operating expenses for each Eligible
Fund for the year ended December 31, 2002, before and after any applicable      
contractual expense subsidy or expense deferral arrangement:                    

ANNUAL ELIGIBLE FUND OPERATING EXPENSES                                         
(AS A PERCENTAGE OF AVERAGE NET ASSETS)(1)                                      

                                                        [Enlarge/Download Table]

                                                                           GROSS    CONTRACTUAL   NET TOTAL 
                                                     12B-1                 TOTAL      EXPENSE    CONTRACTUAL
                                      MANAGEMENT  DISTRIBUTION   OTHER     ANNUAL   SUBSIDY OR     ANNUAL   
                                         FEES       FEES(3)     EXPENSES  EXPENSES   DEFERRAL     EXPENSES  
                                      ----------  ------------  --------  --------  -----------  -----------
                                                                                                            
METROPOLITAN SERIES FUND, INC.(2)....                                                                       
State Street Research Money Market                                                                          
  Portfolio..........................    .35%         .25%        .08%      .68%          0%         .68%   
Lehman Brothers Aggregate Bond Index                                                                        
  Portfolio..........................    .25%         .25%        .09%      .59%          0%         .59%   

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                                                        [Enlarge/Download Table]

                                                                            GROSS    CONTRACTUAL   NET TOTAL 
                                                      12B-1                 TOTAL      EXPENSE    CONTRACTUAL
                                       MANAGEMENT  DISTRIBUTION   OTHER     ANNUAL   SUBSIDY OR     ANNUAL   
                                          FEES       FEES(3)     EXPENSES  EXPENSES   DEFERRAL     EXPENSES  
                                       ----------  ------------  --------  --------  -----------  -----------
                                                                                                             
Salomon Brothers Strategic Bond                                                                              
  Opportunities Portfolio............     .65%         .15%        .20%     1.00%          0%        1.00%   
Salomon Brothers U.S. Government                                                                             
  Portfolio(4).......................     .55%         .15%        .15%      .85%          0%         .85%   
State Street Research Bond Income                                                                            
  Portfolio..........................     .40%         .25%        .11%      .76%          0%         .76%   
Balanced Portfolio(5)................     .70%         .15%        .15%     1.00%          0%        1.00%   
Alger Equity Growth Portfolio........     .75%         .15%        .04%      .94%          0%         .94%   
Davis Venture Value Portfolio(5).....     .75%         .15%        .05%      .95%          0%         .95%   
FI Structured Equity Portfolio(5)....     .67%         .15%        .05%      .87%          0%         .87%   
Harris Oakmark Large Cap Value                                                                               
  Portfolio(5).......................     .75%         .15%        .08%      .98%          0%         .98%   
MetLife Stock Index Portfolio........     .25%         .25%        .06%      .56%          0%         .56%   
MFS Investors Trust                                                                                          
  Portfolio(4)(5)....................     .75%         .15%        .59%     1.49%        .34%        1.15%   
MFS Research Managers                                                                                        
  Portfolio(4)(5)....................     .75%         .15%        .39%     1.29%        .14%        1.15%   
Met/Putnam Voyager Portfolio(4)......     .80%         .15%        .27%     1.22%        .07%        1.15%   
State Street Research Investment                                                                             
  Trust Portfolio(5).................     .49%         .25%        .05%      .79%          0%         .79%   
State Street Research Large Cap Value                                                                        
  Portfolio(4).......................     .70%         .15%       1.63%     2.48%       1.38%        1.10%   
FI Mid Cap Opportunities                                                                                     
  Portfolio(4).......................     .80%         .25%       3.62%     4.67%       3.37%        1.30%   
Harris Oakmark Focused Value                                                                                 
  Portfolio..........................     .75%         .15%        .07%      .97%          0%         .97%   
Janus Mid Cap Portfolio..............     .69%         .25%        .06%     1.00%          0%        1.00%   
MetLife Mid Cap Stock Index                                                                                  
  Portfolio..........................     .25%         .25%        .18%      .68%          0%         .68%   
Neuberger Berman Partners Mid Cap                                                                            
  Value Portfolio(5).................     .69%         .25%        .11%     1.05%          0%        1.05%   
Franklin Templeton Small Cap Growth                                                                          
  Portfolio(4).......................     .90%         .25%        .61%     1.76%        .36%        1.40%   
Loomis Sayles Small Cap Portfolio....     .90%         .15%        .07%     1.12%          0%        1.12%   
Russell 2000 Index Portfolio.........     .25%         .25%        .24%      .74%          0%         .74%   
State Street Research Aurora                                                                                 
  Portfolio..........................     .85%         .15%        .10%     1.10%          0%        1.10%   
Morgan Stanley EAFE Index                                                                                    
  Portfolio(4).......................     .30%         .25%        .49%     1.04%        .04%        1.00%   
Putnam International Stock                                                                                   
  Portfolio..........................     .90%         .15%        .22%     1.27%          0%        1.27%   
MET INVESTORS SERIES TRUST(2)........                                                                        
Lord Abbett Bond Debenture                                                                                   
  Portfolio(6).......................     .60%         .25%        .20%     1.05%        .05%        1.00%   
PIMCO Total Return Portfolio.........     .50%         .25%        .15%      .90%          0%         .90%   
Janus Aggressive Growth                                                                                      
  Portfolio(6)(7)....................     .80%         .25%        .62%     1.67%        .52%        1.15%   
Met/AIM Mid Cap Core Equity                                                                                  
  Portfolio(6)(7)....................     .75%         .25%        .91%     1.91%        .71%        1.20%   
T. Rowe Price Mid-Cap Growth                                                                                 
  Portfolio(6)(7)....................     .75%         .25%        .51%     1.51%        .31%        1.20%   
Met/AIM Small Cap Growth                                                                                     
  Portfolio(6)(7)....................     .90%         .25%       1.17%     2.32%       1.02%        1.30%   
PIMCO Innovation Portfolio(6)(7).....     .95%         .25%        .76%     1.96%        .61%        1.35%   
Harris Oakmark International                                                                                 
  Portfolio Class B(6)(7)(8).........     .85%         .25%       1.54%     2.64%       1.19%        1.45%   
Harris Oakmark International                                                                                 
  Portfolio Class E(6)(7)(8).........     .85%         .15%       1.42%     2.42%       1.07%        1.35%   
MFS Research International                                                                                   
  Portfolio(6).......................     .80%         .25%       1.02%     2.07%        .72%        1.35%   
AMERICAN FUNDS INSURANCE SERIES(2)...                                                                        
American Funds Growth Fund...........     .38%         .25%        .02%      .65%          0%         .65%   
American Funds Growth-Income Fund....     .34%         .25%        .01%      .60%          0%         .60%   
American Funds Global Small                                                                                  
  Capitalization Fund................     .80%         .25%        .04%     1.09%          0%        1.09%   

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NOTES:                                                                          

(1)  The Eligible Fund expenses used to prepare this table were provided to us  
     by the Eligible Funds. We have not independently verified such information.
     The expenses shown are those incurred for the year ended December 31, 2002.
Current or future expenses may be greater or less than those shown.   

(2)  Our affiliate, MetLife Advisers, LLC ("MetLife Advisers") is the investment
 manager for the Portfolios of the Metropolitan Fund. Our affiliate, Met
 Investors Advisory LLC ("Met Investors Advisory") is the manager of the
Portfolios of the Met Investors Series Trust. Capital Research and    
Management Company is the investment adviser of the American Funds    
Insurance Series.                                                     

(3)  The Metropolitan Fund, Met Investors Series Trust, and American Funds      
    Insurance Series have each adopted a Distribution Plan under Rule 12b-1 of
   the Investment Company Act of 1940. The Distribution Plan is described in
more detail in the relevant Fund's prospectus.                        

(4)  MetLife Advisers and the Metropolitan Fund have entered into an Expense    
  Agreement under which MetLife Advisers will waive management fees and/or
    pay expenses (other than brokerage costs, interest, taxes or extraordinary
expenses) of certain Portfolios so that total annual expenses of these
portfolios will not exceed, at any time prior to April 30, 2004, the  
  following percentages: 1.15% for the Met/Putnam Voyager Portfolio; 1.00%
for the Morgan Stanley EAFE Index Portfolio; 1.40% for the Franklin   
   Templeton Small Cap Growth Portfolio; 1.10% for the State Street Research
Large Cap Value Portfolio; 1.30% for the FI Mid Cap Opportunities     
     Portfolio; and 1.15% for the MFS Investors Trust Portfolio and MFS Research
 Managers Portfolio. Under the agreement, if certain conditions are met,
   MetLife Advisers may be reimbursed for fees waived and expenses paid with
    respect to the Franklin Templeton Small Cap Growth Portfolio, State Street
Research Large Cap Value Portfolio, Salomon Brothers U.S. Government  
Portfolio, FI Mid Cap Opportunities Portfolio, and MFS Investors Trust
 Portfolio and MFS Research Managers Portfolio if, in the future, actual
    expenses of these portfolios are less than these expense limits. Net Total
  Contractual Annual Expenses for the Franklin Templeton Small Cap Growth,
  State Street Research Large Cap Value, MFS Investors Trust, MFS Research
 Managers, and FI Mid Cap Opportunities Portfolios have been restated to
reflect the terms of the Expense Agreement.                           

(5)  Net Total Contractual Annual Expenses do not reflect certain expense       
 reductions due to directed brokerage arrangements. If we included these
    reductions, Net Total Contractual Annual Expenses would have been .97% for
 the Harris Oakmark Large Cap Value Portfolio, .77% for the State Street
Research Investment Trust Portfolio, 1.02% for the Neuberger Berman   
Partners Mid Cap Value Portfolio, .93% for the Davis Venture Value    
Portfolio, .86% for the FI Structured Equity Portfolio, .98% for the  
    Balanced Portfolio, 1.13% for the MFS Investors Trust Portfolio, and 1.08%
for the MFS Research Managers Portfolio.                              

(6)  Met Investors Advisory and Met Investors Series Trust have entered into an 
    Expense Limitation Agreement under which Met Investors Advisory has agreed
   to waive or limit its fees and to assume other expenses so that the total
  annual expenses of each Portfolio (other than interest, taxes, brokerage
  commissions, other expenditures which are capitalized in accordance with
    generally accepted accounting principles, other extraordinary expenses and
12b-1 fees) will not exceed, at any time prior to April 30, 2004, the 
    following percentages: 1.00% for the Lord Abbett Bond Debenture Portfolio;
    1.20% for the Met/AIM Mid Cap Core Equity Portfolio; 1.30% for the Met/AIM
Small Cap Growth Portfolio; 1.20% for the T. Rowe Price Mid-Cap Growth
Portfolio; 1.35% for the PIMCO Innovation Portfolio; 1.35% for the MFS
   Research International Portfolio; 1.45% (Class B) and 1.35% (Class E) for
the Harris Oakmark International Portfolio and 1.15% for the Janus    
   Aggressive Growth Portfolio. Under certain circumstances, any fees waived
or expenses reimbursed by the investment manager may be repaid to the 
investment manager. Net Total Contractual Annual Expenses for the Lord
Abbett Bond Debenture, Janus Aggressive Growth, T. Rowe Price Mid-Cap 
Growth, MFS Research International, Harris Oakmark International, and 
  Met/AIM Mid Cap Core Equity Portfolios have been restated to reflect the
terms of the Expense Limitation Agreement.                            

(7)  Net Total Contractual Annual Expenses do not reflect certain expense       
 reductions due to directed brokerage arrangements. If we included these
     reductions, Net Total Contractual Annual Expenses would have been 1.11% for
    the T. Rowe Price Mid-Cap Growth Portfolio, 1.27% for the PIMCO Innovation
   Portfolio, 1.17% for the Met/AIM Mid Cap Core Equity Portfolio, 1.28% for
the Met/AIM Small Cap Growth Portfolio, 1.05% for the Janus Aggressive
  Growth Portfolio, and 1.41% (Class B) and 1.32% (Class E) for the Harris
Oakmark International Portfolio.                                      

(8)  The Harris Oakmark International Portfolio Class E is only available to    
    Contracts purchased prior to May 1, 2003. The Harris Oakmark International
    Portfolio Class B is only available to Contracts purchased on or after May
1, 2003.                                                              

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EXAMPLES                                                                        

  These Examples are intended to help you compare the cost of investing in
the Contract with the cost of investing in other variable annuity contracts.    
These costs include Contract Owner transaction expenses, Contract fees, Variable
Account annual expenses, and Eligible Fund fees and expenses. (1)               

     The examples assume that the Contract has (i) the Greater of Annual Step-Up
or 5% Annual Increase Death Benefit, (ii) the Guaranteed Minimum Income Benefit 
Rider, and (iii) the Earnings Preservation Benefit Rider.                       

EXAMPLE 1.  This Example assumes that you invest $10,000 in a Standard
                                                              --------
Class Contract for the time periods indicated. The Example also assumes that    
----- --------                                                                  
your investment has a 5% return each year and assumes the (a) maximum and (b)   
minimum fees and expenses of any of the Eligible Funds (before reimbursement    
and/or waiver). Although your actual costs may be higher or lower, based on     
these assumptions, your costs would be:                                         

(1) If you surrender your Contract or annuitize under a period certain
option for a specified period of less than 15 years (with applicable withdrawal 
charges deducted) at the end of the applicable time period:                     

                                                        [Enlarge/Download Table]

                                                1 YEAR     3 YEARS    5 YEARS   10 YEARS 
                                               ---------  ---------  ---------  ---------
                                                                                         
(a)........................................... $1,398.23  $2,601.67  $3,742.51  $6,509.44
                                               ---------  ---------  ---------  ---------
(b)........................................... $  995.69  $1,450.63  $1,918.49  $3,335.09
                                               ---------  ---------  ---------  ---------

    (2) If you do not surrender your Contract or if you annuitize under a life
contingency option or under a period certain option for a minimum specified     
period of 15 years (no withdrawal charges would be deducted (2)):               

                                                        [Enlarge/Download Table]

                                                 1 YEAR    3 YEARS    5 YEARS   10 YEARS 
                                                 -------  ---------  ---------  ---------
                                                                                         
(a)............................................. $698.23  $2,061.67  $3,382.51  $6,509.44
                                                 -------  ---------  ---------  ---------
(b)............................................. $295.69  $  910.63  $1,558.49  $3,335.09
                                                 -------  ---------  ---------  ---------

    EXAMPLE 2.  This Example assumes that you invest $10,000 in a B Plus Class
                                                                  - ---- -----
Contract for the time periods indicated. The Example also assumes that your     
--------                                                                        
investment has a 5% return each year and assumes the (a) maximum and (b) minimum
fees and expenses of any of the Eligible Funds (before reimbursement and/or     
waiver). Although your actual costs may be higher or lower, based on these      
assumptions, your costs would be:                                               

(1) If you surrender your Contract or annuitize under a period certain
option for a specified period of less than 15 years (with applicable withdrawal 
charges deducted) at the end of the applicable time period:                     

                                                        [Enlarge/Download Table]

                                                1 YEAR     3 YEARS    5 YEARS   10 YEARS 
                                               ---------  ---------  ---------  ---------
                                                                                         
(a)........................................... $1,629.84  $2,920.87  $4,156.41  $6,928.66
                                               ---------  ---------  ---------  ---------
(b)........................................... $1,228.63  $1,751.72  $2,307.28  $3,759.49
                                               ---------  ---------  ---------  ---------

    (2) If you do not surrender your Contract or if you annuitize under a life
contingency option or under a period certain option for a minimum specified     
period of 15 years (no withdrawal charges would be deducted (2)):               

                                                        [Enlarge/Download Table]

                                                 1 YEAR    3 YEARS    5 YEARS   10 YEARS 
                                                 -------  ---------  ---------  ---------
                                                                                         
(a)............................................. $729.84  $2,200.87  $3,616.41  $6,928.66
                                                 -------  ---------  ---------  ---------
(b)............................................. $328.63  $1,031.72  $1,767.28  $3,759.49
                                                 -------  ---------  ---------  ---------

EXAMPLE 3.  This Example assumes that you invest $10,000 in a C Class 
                                                             - -----
Contract for the time periods indicated. The Example also assumes that your     
--------                                                                        
investment has a 5% return each year and assumes the (a) maximum and (b) minimum
fees and expenses of any of the Eligible Funds (before reimbursement and/or     
waiver). Although your actual costs may be higher or lower, based on these      
assumptions, your costs would be:                                               

(1) If you surrender your Contract, do not surrender your Contract,   
annuitize or do not annuitize at the end of the applicable time period (no      
withdrawal charges apply to the C Class):                                       

                                                        [Enlarge/Download Table]

                                                 1 YEAR    3 YEARS    5 YEARS   10 YEARS 
                                                 -------  ---------  ---------  ---------
                                                                                         
(a)............................................. $728.88  $2,145.31  $3,508.67  $6,700.40
                                                 -------  ---------  ---------  ---------
(b)............................................. $327.63  $1,005.57  $1,715.04  $3,637.71
                                                 -------  ---------  ---------  ---------

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EXAMPLE 4.  This Example assumes that you invest $10,000 in an L Class
                                                               - -----
Contract for the time periods indicated. The Example also assumes that your     
--------                                                                        
investment has a 5% return each year and assumes the (a) maximum and (b) minimum
fees and expenses of any of the Eligible Funds (before reimbursement and/or     
waiver). Although your actual costs may be higher or lower, based on these      
assumptions, your costs would be:                                               

(1) If you surrender your Contract or annuitize under a period certain
option for a specified period of less than 15 years (with applicable withdrawal 
charges deducted) at the end of the applicable time period:                     

                                                        [Enlarge/Download Table]

                                                1 YEAR     3 YEARS    5 YEARS   10 YEARS 
                                               ---------  ---------  ---------  ---------
                                                                                         
(a)........................................... $1,420.27  $2,661.87  $3,473.40  $6,647.39
                                               ---------  ---------  ---------  ---------
(b)........................................... $1,018.66  $1,518.97  $1,671.28  $3,553.68
                                               ---------  ---------  ---------  ---------

    (2) If you do not surrender your Contract or if you annuitize under a life
contingency option or under a period certain option for a minimum specified     
period of 15 years (no withdrawal charges would be deducted (2)):               

                                                        [Enlarge/Download Table]

                                                 1 YEAR    3 YEARS    5 YEARS   10 YEARS 
                                                 -------  ---------  ---------  ---------
                                                                                         
(a)............................................. $720.27  $2,121.87  $3,473.40  $6,647.39
                                                 -------  ---------  ---------  ---------
(b)............................................. $318.66  $  978.97  $1,671.28  $3,553.68
                                                 -------  ---------  ---------  ---------

EXAMPLE 5.  This Example assumes that you invest $10,000 in a P Class 
                                                             - -----
Contract for the time periods indicated. The Example also assumes that your     
--------                                                                        
investment has a 5% return each year and assumes the (a) maximum and (b) minimum
fees and expenses of any of the Eligible Funds (before reimbursement and/or     
waiver). Although your actual costs may be higher or lower, based on these      
assumptions, your costs would be:                                               

(1) If you surrender your Contract or annuitize under a period certain
option for a specified period of less than 15 years (with applicable withdrawal 
charges deducted) at the end of the applicable time period:                     

                                                        [Enlarge/Download Table]

                                                1 YEAR     3 YEARS    5 YEARS   10 YEARS 
                                               ---------  ---------  ---------  ---------
                                                                                         
(a)........................................... $1,487.67  $2,752.72  $3,878.64  $6,442.18
                                               ---------  ---------  ---------  ---------
(b)........................................... $1,084.69  $1,597.77  $2,044.05  $3,228.57
                                               ---------  ---------  ---------  ---------

    (2) If you do not surrender your Contract or if you annuitize under a life
contingency option or under a period certain option for a minimum specified     
period of 15 years (no withdrawal charges would be deducted (2)):               

                                                        [Enlarge/Download Table]

                                                 1 YEAR    3 YEARS    5 YEARS   10 YEARS 
                                                 -------  ---------  ---------  ---------
                                                                                         
(a)............................................. $687.67  $2,032.72  $3,338.64  $6,442.18
                                                 -------  ---------  ---------  ---------
(b)............................................. $284.69  $  877.77  $1,504.05  $3,228.57
                                                 -------  ---------  ---------  ---------

PLEASE REMEMBER THAT THE EXAMPLES ARE SIMPLY ILLUSTRATIONS AND DO NOT 
REPRESENT PAST OR FUTURE EXPENSES. Your actual expenses may be higher or lower  
than those reflected in the examples depending on the features you choose.      
Similarly your rate of return may be more or less than the 5% assumed in the    
examples.                                                                       

NOTES:                                                                          

(1) The examples do not reflect transfer fees or premium taxes (which may range 
up to 3.5%, depending on the jurisdiction). The examples use an average 
    Contract Administrative Fee of .039% for the Standard Class, .019% for the B
   Plus Class, .011% for the C Class, .018% for the L Class, and .033% for the
P Class. (See (4), on p. A-11.)                                         

(2) If you subsequently withdraw the commuted value of amounts placed under any 
 of these options, we will deduct from the amount you receive a portion of
the Withdrawal Charge amount that would have been deducted when you     
originally applied the Contract proceeds to the option. (see "Withdrawal
Charge" and "Annuity Options" for more information.)                    
--------------------------------------------------------------------------------

Condensed financial information containing the Accumulation Unit Value history  
appears at the end of this prospectus (p. A-50).                                

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HOW THE CONTRACT WORKS

PURCHASE

- You must select one of five Classes of the Contract, each of which has        
different Withdrawal Charges and Asset-Based Insurance Charges:             

- Standard Class                                                            
- B Plus Class                                                              
- C Class                                                                   
- L Class                                                                   
- P Class                                                                   

- You can make a one-time investment or establish an ongoing investment program,
subject to the Company's minimum and maximum purchase payment guidelines,   
which vary by Class.                                                        
ADDITIONAL PAYMENTS 

- Generally may be made at any time, (subject to Company limits), but no        
purchase payments allowed: (1) during the seven years immediately preceding 
the Maturity Date for the Standard Class; nine years for the B Plus Class;  
three years for the L Class; and nine years for the P Class; or (2) after a 
Contract Owner (or the Annuitant, if not owned in an individual capacity)   
reaches age 91. Joint Contract Owners may not make a purchase payment after 
the older Contract Owner reaches age 86.                                    

- Minimum $500 with certain exceptions (see page A-24).                         

WITHDRAWALS 

- You may make withdrawals from your Contract, subject to imposition of a       
Withdrawal Charge.                                                          

- No Withdrawal Charge applies to Class C. For the other Classes, you may       
withdraw the free withdrawal amount each Contract Year without incurring the
Withdrawal Charge.                                                          

- In the first Contract Year, no free withdrawal amount is available unless it  
is part of a monthly systematic withdrawal program in which the monthly     
withdrawal amount does not exceed 1/12 of 10% of total purchase payments.   

- After the first Contract Year, the annual free withdrawal amount is equal to  
10% of total purchase payments, less the total free withdrawal amount       
previously withdrawn in the same Contract Year.                             

- Withdrawals may be taxable to the extent of gain.                             

- Prior to age 59 1/2 a 10% penalty tax may apply. A 25% penalty tax may apply  
upon surrender from a SIMPLE IRA within the first 2 years.                  

- Premium tax charge may apply.                                                 

DEATH PROCEEDS

- You will receive the Standard Death Benefit unless you chose to receive one of
  two enhanced death benefits -- the Annual Step-Up Death Benefit or the Greater
of Annual Step-Up or 5% Annual Increase Death Benefit.                      

- Each of these enhanced death benefits will increase the Asset-Based Insurance 
Charge applicable to your Contract.                                         

- You may also elect to purchase, for an additional charge, the Earnings        
Preservation Benefit Rider, which provides an additional death benefit to   
assist with covering taxes payable at death, and/or the Guaranteed Minimum  
Income Benefit Rider, which provides a "floor" on annuity payments.         

- Your Death Proceeds are guaranteed not to be less than your total purchase    
payments adjusted for any prior withdrawals (and, where applicable, net of  
premium tax charges).                                                       

- Death proceeds may be taxable.                                                

- Premium tax charge may apply.                                                 

CONTRACT VALUE

- You allocate payments to your choice, within limits, of Eligible Funds and/or 
the Fixed Account.                                                          
- The Contract Value reflects purchase payments, investment experience, interest
credited on Fixed Account allocations, partial withdrawals and Contract     
charges.                                                                    
- The Contract Value invested in the Eligible Funds is not guaranteed.          

- Earnings in the Contract are free of any current income taxes (see page A-43).

- You may change the allocation of future payments, within limits, at any time. 
- Prior to annuitization, you may transfer Contract Value among accounts,       
currently free of charge. (Special limits apply to the Fixed Account and to 
situations that involve "market timing.")                                   

RETIREMENT BENEFITS 
- Lifetime income options.                                                      
- Fixed and/or variable payout options.                                         
- Retirement benefits may be taxable.                                           
- Premium tax charge may apply.                                                 

DAILY DEDUCTION FROM VARIABLE ACCOUNT 

- We deduct an Asset-Based Insurance Charge from the Contract Value daily. The  
amount of the charge depends upon the Class of Contract you select, the     
features you choose for your Contract, and the subaccounts you select.      
  Asset-Based Insurance Charges (as an annual percentage of the daily net assets
 of each subaccount) for each Class and for each death benefit option prior to
annuitization are:                                                          

Standard Class -- MINIMUM-1.25%; MAXIMUM-1.60%                              

B Plus Class -- MINIMUM-1.60%; MAXIMUM-1.95%                                

C Class -- MINIMUM-1.60%; MAXIMUM-1.95%                                     

L Class -- MINIMUM-1.50%; MAXIMUM-1.85%                                     

P Class -- MINIMUM-1.15%; MAXIMUM-1.50%                                     

(These amounts increase by .25% for subaccounts investing in the American   
Funds Insurance Series)                                                     

- We reserve the right to impose an increased Asset-Based Insurance Charge on   
subaccounts that we add to the Contract in the future. The increase will not
exceed the annual rate of 0.25% of average daily net assets in any such     
subaccounts.                                                                

- After annuitization, the amount of the Asset-Based Insurance Charge for each  
Class will be the charge that would apply for the standard death benefit,   
 except that for the B Plus and P Class, the Asset-Based Insurance Charge will
be 1.25% after annuitization. These amounts increase by .25% for Subaccounts
investing in the American Funds Insurance Series.                           

- Investment advisory fees and operating expenses are deducted from the Eligible
Fund assets daily.                                                          

ANNUAL CONTRACT ADMINISTRATIVE FEE

- We deduct a $30 Contract Administrative Fee from the Contract Value in the    
Variable Account on each anniversary while the Contract is in-force and on  
full withdrawal. We deduct a pro rata portion on annuitization. We do not   
deduct this fee during the accumulation period or on annuitization if the   
Contract Value is $50,000 or more. We reserve the right to deduct this fee  
during the Annuity Period, pro rata from each annuity payment.              

WITHDRAWAL CHARGE 

- No Withdrawal Charge applies to Class C.                                      

- For the other Classes, we deduct a Withdrawal Charge (maximum of 9% of each   
purchase payment made) on certain full and partial withdrawals and certain  
annuitization transactions.                                                 

- You may withdraw the free withdrawal amount each Contract Year without        
incurring the Withdrawal Charge.                                            

- The applicable Withdrawal Charge varies by Class (see pages A-36 to A-38).    

PREMIUM TAX CHARGE

- Where applicable, we deduct a premium tax charge from the Contract Value when 
annuity benefits commence.                                                  

ADDITIONAL BENEFITS 

- You pay no taxes on your investment as long as it remains in the Contract.    

- You may withdraw your Contract Value at any time, less any applicable         
Withdrawal Charge, subject to any applicable tax law restrictions.          

- We may waive the Withdrawal Charge on evidence of terminal illness,           
confinement to a nursing home, or permanent and total disability, if this   
benefit is available in your state.                                         

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THE COMPANY 

     We were organized as a stock life insurance company in Delaware in 1980 and
are authorized to operate in all states, the District of Columbia and Puerto    
Rico. Formerly, we were a wholly-owned subsidiary of New England Mutual Life    
Insurance Company ("New England Mutual"). On August 30, 1996, New England Mutual
merged into MetLife, an insurance company whose principal office is One Madison 
Avenue, New York, NY 10010. MetLife is a wholly-owned subsidiary of MetLife,    
Inc., a publicly traded company. MetLife then became the parent of New England  
Variable Life Insurance Company which changed its name to "New England Life     
Insurance Company," (the "Company") and changed its domicile from the State of  
Delaware to the Commonwealth of Massachusetts. The Company is located at 501    
Boylston Street, Boston, Massachusetts 02116.                                   

We are a member of the Insurance Marketplace Standards Association    
("IMSA"), and as such may include the IMSA logo and information about IMSA      
membership in our advertisements. Companies that belong to IMSA subscribe to a  
set of ethical standards covering the various aspects of sales and service for  
individually sold life insurance and annuities.                                 

THE VARIABLE ACCOUNT

    We established a separate investment account, New England Variable Annuity
Separate Account (the "Variable Account"), under Delaware law on July 1, 1994,  
to hold the assets backing the Contracts. When the Company changed its domicile 
to Massachusetts on August 30, 1996 the Variable Account became subject to      
Massachusetts law. The Variable Account is registered as a unit investment trust
under the Investment Company Act of 1940. The Variable Account may be used to   
support other variable annuity contracts besides the Contracts. The other       
contracts may have different charges, and provide different benefits.           

     The assets of the Variable Account equal to its reserves and other contract
liabilities are not available to meet the claims of the Company's general       
creditors. The income and realized and unrealized capital gains or losses of the
Variable Account are credited to or charged against the Variable Account and not
to other income, gains or losses of the Company. All obligations arising under  
the Contracts are, however, general corporate obligations of the Company.       

  We allocate your purchase payments to the subaccounts that you elect. If
you allocate purchase payments to the Variable Account, the value of            
Accumulation Units credited to your Contract and the amount of the variable     
annuity payments depend on the investment experience of the Eligible Fund (a    
mutual fund) in which your selected subaccount invests. We do not guarantee the 
investment performance of the Variable Account. You bear the full investment    
risk for all amounts allocated to the Variable Account.                         

INVESTMENTS OF THE VARIABLE ACCOUNT 

     We will allocate your purchase payments to the subaccounts investing in one
or more of the Eligible Funds you chose, which we list below. No sales charge   
will apply at the time you make your payment. You may change your selection of  
Eligible Funds for future purchase payments at any time free of charge. (See    
"Requests and Elections.") You can transfer to or from any Eligible Fund,       
subject to certain conditions. (See "Transfer Privilege.") You may allocate your
Contract Value among as many accounts (including the Fixed Account, with certain
exceptions.) as you choose at any one time. You must allocate a minimum of $500 
to each account you select unless the Company consents to lower amounts. We     
reserve the right to add or remove Eligible Funds from time to time. See        
"Substitution of Investments."                                                  

   Certain Eligible Funds have investment objectives and policies similar to
other funds that may be managed by the same subadviser. The performance of the  
Eligible Funds, however, may be higher or lower than the other funds. We make no
representation that the investment results of any of the Eligible Funds will be 
comparable to the investment results of any other fund, even if the other fund  
has the same subadviser.                                                        

     Certain Eligible Funds available under the Contracts were previously series
of the New England Zenith Fund. Effective May 1, 2003, however, these series of 
the New England Zenith Fund were reorganized into newly established portfolios  
of the Metropolitan Fund. The reorganization did not affect the investment      
objectives or policies, investment advisory fees, or investment adviser or      
subadvisers of any of these series.                                             

  You'll find complete information about the Eligible Funds, including the
risks associated with each, in the accompanying prospectuses. They should be    
read along with this prospectus.                                                

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STATE STREET RESEARCH MONEY MARKET PORTFOLIO                          

    The State Street Research Money Market Portfolio's investment objective is
a high level of current income consistent with preservation of capital. An      
investment in the Money Market Portfolio is not insured or guaranteed by the    
Federal Deposit Insurance Corporation or any other government agency. Although  
the Money Market Portfolio seeks to maintain a net asset value of $100 per      
share, it is possible to lose money by investing in the Money Market Portfolio. 

     During extended periods of low interest rates, the yields of the subaccount
investing in the State Street Research Money Market Series may become extremely 
low and possibly negative.                                                      

LEHMAN BROTHERS AGGREGATE BOND INDEX PORTFOLIO                        

   The Lehman Brothers Aggregate Bond Index Portfolio's investment objective
is to equal the performance of the Lehman Brothers Aggregate Bond Index.        

SALOMON BROTHERS STRATEGIC BOND OPPORTUNITIES PORTFOLIO               

  The Salomon Brothers Strategic Bond Opportunities Portfolio's investment
objective is a high level of total return consistent with preservation of       
capital.                                                                        

SALOMON BROTHERS U.S. GOVERNMENT PORTFOLIO                            

    The Salomon Brothers U.S. Government Portfolio's investment objective is a
high level of current income consistent with preservation of capital and        
maintenance of liquidity.                                                       

STATE STREET RESEARCH BOND INCOME PORTFOLIO                           

     The State Street Research Bond Income Portfolio's investment objective is a
competitive total return primarily from investing in fixed-income securities.   

BALANCED PORTFOLIO                                                    

 The Balanced Portfolio's investment objective is long-term total return
from a combination of capital appreciation and current income.                  

ALGER EQUITY GROWTH PORTFOLIO                                         

The Alger Equity Growth Portfolio's investment objective is long-term 
capital appreciation.                                                           

DAVIS VENTURE VALUE PORTFOLIO                                         

The Davis Venture Value Portfolio's investment objective is growth of 
capital.                                                                        

FI STRUCTURED EQUITY PORTFOLIO                                        

The FI Structured Equity Portfolio's investment objective is long-term
growth of capital.                                                              

HARRIS OAKMARK LARGE CAP VALUE PORTFOLIO                              

The Harris Oakmark Large Cap Value Portfolio's investment objective is
long-term capital appreciation.                                                 

METLIFE STOCK INDEX PORTFOLIO                                         

  The MetLife Stock Index Portfolio's investment objective is to equal the
performance of the Standard & Poor's 500 Composite Stock Price Index ("S&P 500  
Index").                                                                        

MFS INVESTORS TRUST PORTFOLIO                                         

The MFS Investors Trust Portfolio's investment objective is long-term 
growth of capital with a secondary objective to seek reasonable current income. 

MFS RESEARCH MANAGERS PORTFOLIO                                       

 The MFS Research Managers Portfolio's investment objective is long-term
growth of capital.                                                              

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MET/PUTNAM VOYAGER PORTFOLIO (FORMERLY THE PUTNAM LARGE CAP GROWTH    
PORTFOLIO)                                                                      

The Met/Putnam Voyager Portfolio's investment objective is capital    
appreciation.                                                                   

STATE STREET RESEARCH INVESTMENT TRUST PORTFOLIO                      

     The State Street Research Investment Trust Portfolio's investment objective
is long-term growth of capital and income.                                      

STATE STREET RESEARCH LARGE CAP VALUE PORTFOLIO                       

    The State Street Research Large Cap Value Portfolio's investment objective
is long-term growth of capital.                                                 

FI MID CAP OPPORTUNITIES PORTFOLIO                                    

    The FI Mid Cap Opportunities Portfolio's investment objective is long-term
growth of capital.                                                              

HARRIS OAKMARK FOCUSED VALUE PORTFOLIO                                

The Harris Oakmark Focused Value Portfolio's investment objective is  
long-term capital appreciation.                                                 

JANUS MID CAP PORTFOLIO                                               

   The Janus Mid Cap Portfolio's investment objective is long-term growth of
capital.                                                                        

METLIFE MID CAP STOCK INDEX PORTFOLIO                                 

The MetLife Mid Cap Stock Index Portfolio's investment objective is to
equal the performance of the Standard & Poor's MidCap 400 Composite Stock Price 
Index ("S&P MidCap 400 Index").                                                 

NEUBERGER BERMAN PARTNERS MID CAP VALUE PORTFOLIO                     

The Neuberger Berman Partners Mid Cap Value Portfolio's investment    
objective is capital growth.                                                    

FRANKLIN TEMPLETON SMALL CAP GROWTH PORTFOLIO                         

     The Franklin Templeton Small Cap Growth Portfolio's investment objective is
long-term capital growth.                                                       

LOOMIS SAYLES SMALL CAP PORTFOLIO                                     

   The Loomis Sayles Small Cap Portfolio's investment objective is long-term
capital growth from investments in common stocks or other equity securities.    

RUSSELL 2000 INDEX PORTFOLIO                                          

 The Russell 2000 Index Portfolio's investment objective is to equal the
return of the Russell 2000 Index.                                               

STATE STREET RESEARCH AURORA PORTFOLIO                                

   The State Street Research Aurora Portfolio's investment objective is high
total return, consisting principally of capital appreciation.                   

MORGAN STANLEY EAFE INDEX PORTFOLIO                                   

    The Morgan Stanley EAFE Index Portfolio's investment objective is to equal
the performance of the MSCI EAFE(R) Index ("Morgan Stanley Capital International
Europe Australasia Far East Index").                                            

PUTNAM INTERNATIONAL STOCK PORTFOLIO                                  

The Putnam International Stock Portfolio's investment objective is    
long-term growth of capital.                                                    

LORD ABBETT BOND DEBENTURE PORTFOLIO                                  

The Lord Abbett Bond Debenture Portfolio's investment objective is to 
provide high current income and the opportunity for capital appreciation to     
produce a high total return.                                                    

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PIMCO TOTAL RETURN PORTFOLIO                                          

    The PIMCO Total Return Portfolio's investment objective is to seek maximum
total return, consistent with the preservation of capital and prudent investment
management.                                                                     

JANUS AGGRESSIVE GROWTH PORTFOLIO                                     

 The Janus Aggressive Growth Portfolio's investment objective is to seek
long-term growth of capital.                                                    

MET/AIM MID CAP CORE EQUITY PORTFOLIO                                 

The Met/AIM Mid Cap Core Equity Portfolio's investment objective is   
long-term growth of capital.                                                    

 T. ROWE PRICE MID-CAP GROWTH PORTFOLIO (FORMERLY THE MFS MID CAP GROWTH
PORTFOLIO)                                                                      

The T. Rowe Price Mid-Cap Growth Portfolio's investment objective is  
long-term growth of capital.                                                    

MET/AIM SMALL CAP GROWTH PORTFOLIO                                    

    The Met/AIM Small Cap Growth Portfolio's investment objective is long-term
growth of capital.                                                              

PIMCO INNOVATION PORTFOLIO                                            

  The PIMCO Innovation Portfolio's investment objective is to seek capital
appreciation; no consideration is given to income.                              

    HARRIS OAKMARK INTERNATIONAL PORTFOLIO (FORMERLY THE STATE STREET RESEARCH
CONCENTRATED INTERNATIONAL PORTFOLIO) CLASS B*                                  

 The Harris Oakmark International Portfolio's investment objective is to
seek long-term capital appreciation.                                            

MFS RESEARCH INTERNATIONAL PORTFOLIO                                  

    The MFS Research International Portfolio's investment objective is capital
appreciation.                                                                   

AMERICAN FUNDS GROWTH FUND                                            

  The American Funds Growth Fund's investment objective is to seek capital
appreciation through stocks.                                                    

AMERICAN FUNDS GROWTH-INCOME FUND                                     

 The American Funds Growth-Income Fund's investment objective is to seek
capital appreciation and income.                                                

AMERICAN FUNDS GLOBAL SMALL CAPITALIZATION FUND                       

    The American Funds Global Small Capitalization Fund's investment objective
is to seek capital appreciation through stocks.                                 
------------                                                                    

* Class E shares of the Harris Oakmark International Portfolio are only       
available to Contracts issued prior to May 1, 2003.                       
-----         

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INVESTMENT ADVICE                                                               

     MetLife Advisers, an affiliate of the Company, serves as Investment Adviser
for each Portfolio of the Metropolitan Fund. The chart below shows the          
Subadviser of each Portfolio. MetLife Advisers oversees and recommends the      
hiring or replacement of its Subadvisers and is ultimately responsible for the  
investment performance of these Eligible Funds. Each Subadviser is registered   
with the SEC as an investment adviser under the Investment Advisers Act of 1940.

                                                        [Enlarge/Download Table]

PORTFOLIO                                                   SUBADVISER                              
---------                                                   ----------                              
                                                                                                    
State Street Research Money Market......................... State Street Research & Management      
                                                            Company                                 
Lehman Brothers Aggregate Bond Index....................... Metropolitan Life Insurance Company     
Salomon Brothers Strategic Bond Opportunities*............. Salomon Brothers Asset Management Inc   
Salomon Brothers U.S. Government........................... Salomon Brothers Asset Management Inc   
State Street Research Bond Income.......................... State Street Research & Management      
                                                            Company                                 
Balanced................................................... Wellington Management Company, LLP      
Alger Equity Growth........................................ Fred Alger Management, Inc.             
Davis Venture Value........................................ Davis Selected Advisers, L.P.**         
FI Structured Equity....................................... Fidelity Management & Research Company  
Harris Oakmark Large Cap Value............................. Harris Associates L.P.                  
MetLife Stock Index........................................ Metropolitan Life Insurance Company     
MFS Investors Trust........................................ Massachusetts Financial Services Company
MFS Research Managers...................................... Massachusetts Financial Services Company
Met/Putnam Voyager......................................... Putnam Investment Management, LLC       
State Street Research Investment Trust..................... State Street Research & Management      
                                                            Company                                 
State Street Research Large Cap Value...................... State Street Research & Management      
                                                            Company                                 
FI Mid Cap Opportunities................................... Fidelity Management & Research Company  
Harris Oakmark Focused Value............................... Harris Associates L.P.                  
Janus Mid Cap.............................................. Janus Capital Management, LLC           
MetLife Mid Cap Stock Index................................ Metropolitan Life Insurance Company     
Neuberger Berman Partners Mid Cap Value.................... Neuberger Berman Management Inc.        
Franklin Templeton Small Cap Growth........................ Franklin Advisers, Inc.                 
Loomis Sayles Small Cap.................................... Loomis Sayles & Company, L.P.           
Russell 2000 Index......................................... Metropolitan Life Insurance Company     
State Street Research Aurora............................... State Street Research & Management      
                                                            Company                                 
Morgan Stanley EAFE Index.................................. Metropolitan Life Insurance Company     
Putnam International Stock................................. Putnam Investment Management, LLC       

------------                                                                    

* The Salomon Brothers Strategic Bond Opportunities Portfolio also receives   
certain investment sub-advisory services from Salomon Brothers Asset      
Management Limited, a London based affiliate of Salomon Brothers Asset    
Management Inc.                                                           

** Davis Selected Advisers, L.P. may delegate any of its responsibilities to    
Davis Selected Advisers--NY, Inc., a wholly-owned subsidiary.             

     For more information regarding the investment adviser and the subadviser of
the Metropolitan Fund Portfolios, see the Statement of Additional Information   
about the Contracts, and also see the Metropolitan Fund prospectus attached at  
the end of this prospectus and its Statement of Additional Information.         

   Met Investors Advisory LLC (formerly, Met Investors Advisory Corp.) is an
affiliate of the Company and is the Manager (i.e., investment adviser) for the  
Met Investors Series Trust Portfolios. Each of the Met Investors Series Trust   
Portfolios also has an Adviser (i.e., subadviser). Lord, Abbett & Co. is the    
Adviser to the Lord Abbett Bond Debenture Portfolio. Pacific Investment         
Management Company LLC, a subsidiary of Allianz Dresdner Asset Management of    
America L.P. ("ADAM LP"), is the Adviser to the PIMCO Total Return Portfolio.   
AIM Capital Management, Inc. is the Adviser to the Met/AIM Mid Cap Core Equity  
and Met/AIM Small Cap Growth Portfolios. Massachusetts Financial Services       
Company is the Adviser to the MFS Research International Portfolio. T. Rowe     
Price Associates, Inc. became the Adviser to the T. Rowe Price Mid-Cap Growth   
Portfolio on January 1, 2003. Prior to that time, Massachusetts Financial       
Services Company served as Adviser. PIMCO Equity Advisors, a division of ADAM   
LP, is the Adviser to the PIMCO Innovation Portfolio. Janus Capital Management  
LLC is the Adviser to the Janus Aggressive Growth Portfolio. Harris Associates  
L.P. became the Adviser to the Harris Oakmark International Portfolio on January
1, 2003. Prior to that time State Street Research & Management Company served as
Adviser. For more information regarding the Manager or Adviser of the Met       
Investors Series Trust Portfolios, see the                                      

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Statement of Additional Information about the Contracts, and also see the Met   
Investors Series Trust prospectus attached at the end of this prospectus and its
Statement of Additional Information.                                            

   Capital Research and Management Company is the Investment Adviser for the
American Funds Insurance Series Funds. For more information about the investment
adviser, see the American Funds Insurance Series prospectus attached at the end 
of this prospectus and its Statement of Additional Information.                 

 You can also get information about the Metropolitan Fund, Met Investors
Series Trust and the American Funds Insurance Series (including a copy of the   
Statement of Additional Information) by accessing the Securities and Exchange   
Commission's website at http://www.sec.gov.                                     

An investment adviser or affiliates thereof may compensate the Company
and/or certain affiliates for administrative, distribution, or other services   
relating to the Eligible Funds. This compensation is based on assets of the     
Eligible Funds attributable to the Contracts and certain other variable         
insurance products that we and our affiliates issue. We (or our affiliates) may 
also be compensated with 12b-1 distribution fees from the Eligible Funds, up to 
..25% of the assets of the Eligible Funds attributable to the Contracts. Some   
Eligible Funds or their advisers (or other affiliates) may pay us more than     
others and the amounts paid may be significant. New England Securities may also 
receive brokerage commissions on securities transactions initiated by an        
investment adviser.                                                             

SHARE CLASSES OF THE ELIGIBLE FUNDS                                             

 The Eligible Funds offer various classes of shares, each of which has a
different level of expenses. Attached prospectuses for the Eligible Funds may   
provide information for share classes that are not available through the        
Contract. When you consult the attached prospectus for any Eligible Fund, you   
should be careful to refer to only the information regarding the class of shares
that is available through the Contract. The following classes of shares are     
available under the Contract:                                                   

   -- For the Metropolitan Fund, we offer Class B shares of the State Street
               ----- -
       Research Money Market, State Street Research Bond Income, Lehman Brothers
   Aggregate Bond Index, State Street Research Investment Trust, MetLife
 Stock Index, MetLife Mid Cap Stock Index, FI Mid Cap Opportunities,
  Neuberger Berman Partners Mid Cap Value, Janus Mid Cap, Russell 2000
       Index, Franklin Templeton Small Cap Growth, and Morgan Stanley EAFE Index
 Portfolios; and Class E shares of Salomon Brothers U.S. Government,
----- -                           
   Salomon Brothers Strategic Bond Opportunities, Balanced, MFS Research
   Managers, MFS Investors Trust, State Street Research Large Cap Value,
 Harris Oakmark Large Cap Value, FI Structured Equity, Davis Venture
    Value, Met/Putnam Voyager, Alger Equity Growth, Harris Oakmark Focused
      Value, Loomis Sayles Small Cap, State Street Research Aurora, and Putnam
International Stock Portfolios;                                   

-- For the Met Investors Series Trust, we offer Class B shares of all 
                                 ----- -
    Portfolios except the Harris Oakmark International Portfolio, which is
  Class B for Contracts issued on or after May 1, 2003 and Class E for
----- -                      -- -- -----                 ----- -  
Contracts issued prior to May 1, 2003.                            
----- --                        

   -- For the American Funds Insurance Series, we offer Class 2 shares only.
                                           ----- -

    Additionally, shares of the Metropolitan Fund Portfolios may be offered to
insurance company separate accounts of both variable annuity and variable life  
insurance contracts and to Qualified Plans. Due to differences in tax treatment 
and other considerations, the interests of various contractowners participating 
in, and the interests of Qualified Plans investing in the Metropolitan Fund may 
conflict. The Metropolitan Fund Board of Directors will monitor events in order 
to identify the existence of any material irreconcilable conflicts and determine
what action, if any, should be taken in response to any such conflict.          

SUBSTITUTION OF INVESTMENTS                                                     

If investment in the Eligible Funds or a particular Fund is no longer 
possible, in our judgment becomes inappropriate for the purposes of the         
Contract, or for any other reason in our sole discretion, we may substitute     
another Eligible Fund or Funds without your consent. The substituted fund may   
have different fees and expenses. Substitution may be made with respect to      
existing investments or the investment of future purchase payments, or both, for
some or all classes of Contracts. However, we will not make such substitution   
without any necessary approval of the Securities and Exchange Commission.       
Furthermore, we may close subaccounts to allocation of purchase payments or     
Contract Value, or both, for some or all classes of Contracts, at any time in   
our sole discretion.                                                            

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FIXED ACCOUNT 

You may allocate purchase payments to the Fixed Account (except for   
Contracts purchased on or after May 1, 2003 for which the C Class has been      
selected or any Contracts which are purchased on or after that date in the state
of New York). The Fixed Account is a part of our general account and offers a   
guaranteed interest rate. (See "THE OPERATION OF THE FIXED ACCOUNT" for more    
information.)                                                                   

THE CONTRACTS 

     We will issue the Standard Class, C Class, L Class and P Class Contracts to
an individual through the age of 90 in all states except New York. In New York, 
we will issue the Standard Class to an individual through the age of 82; the L  
Class through the age of 86; the C Class through the age of 89; and the P Class 
through the age of 80. We will issue the Standard Class, C Class, L Class and P 
Class Contracts to joint contract owners through the age of 85 (based on the    
older contract owner) in all states except New York. In New York, we will issue 
the Standard Class to joint contract owners through the age of 82; the L Class  
and C Class through the age of 85; and the P Class through the age of 80. The   
maximum issue age for the B Plus Class (for an individual or joint contract     
owners) is through the age of 80 in all states. Unless otherwise noted,         
information provided in each section is applicable to all contract classes.     

The Contract allows you to select one of several different charge     
structures, each referred to as a Class, based on your specific situation. Each 
Class imposes varying levels of Withdrawal Charges and Asset-Based Insurance    
Charges. THE ASSET-BASED INSURANCE CHARGE AMOUNTS DESCRIBED BELOW WILL INCREASE 
BY .25% FOR SUBACCOUNTS INVESTING IN THE AMERICAN FUNDS INSURANCE SERIES.       
Depending on your expectations and preferences, you can choose the Class that   
best meets your needs. Prior to issuance, you must select one of the following  
five available Classes of the Contract:                                         

STANDARD CLASS                                                                  

  If you do not select a Class, your Contract will be issued as a Standard
Class Contract. The Standard Class imposes a Withdrawal Charge on withdrawals   
equal to a maximum of 7% of each purchase payment, reducing over 7 years. It    
also imposes an Asset-Based Insurance Charge that ranges from 1.25% to 1.60%    
during the accumulation period, depending on the death benefit that you select. 

B PLUS CLASS                                                                    

     If you select this Class, we will add a bonus amount to your Contract Value
every time you make a purchase payment within the first Contract Year (with     
certain exceptions). The amount of the bonus is currently 4% of the amount of   
the purchase payment. The purchase payment bonus will be allocated among the    
subaccounts and the Fixed Account in the same manner as your purchase payments. 

The B Plus Class imposes a Withdrawal Charge on withdrawals equal to a
maximum of 9% of each purchase payment, reducing over 9 years. It also imposes  
an Asset-Based Insurance Charge that ranges from 1.60% to 1.95% during the      
withdrawal charge period, depending on the death benefit that you select. This  
charge is reduced by 0.35% after the expiration of the withdrawal charge period.
The Asset-Based Insurance Charge will be 1.25% after annuitization (see         
"Asset-Based Insurance Charge").                                                

     Generally, an annuity with a purchase payment bonus may have higher charges
and expenses than a similar annuity without a purchase payment bonus. Or, it may
have less advantageous benefits and other features, or some combination of      
different charges and benefits. Alternatively, the charges and features could be
the same, but we could make less profit or pay lower commissions to sales       
agents, or both. Accordingly, you should always consider the expenses along with
the benefits and other features to be sure any annuity or class of annuity meets
your financial needs and goals. Additionally, the annuity purchase rates for the
B Plus Class Contract are different than for other Classes (see "Amount of      
Annuity Payments").                                                             

   Under certain limited circumstances, we may take back the bonus (i.e., we
may recapture it). If you cancel the Contract by returning it during the Free   
Look Period, we will deduct any bonus amounts from the refund amount. We will   
take back the premium credit as if it had never been applied if we recapture a  
purchase payment bonus. However, the amount returned to you will not be         
decreased by any investment loss and you will retain any investment gain        
attributable to the bonus.                                                      

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C CLASS                                                                         

The C Class does not impose any Withdrawal Charge on withdrawals, but 
imposes a higher Asset-Based Insurance Charge than the Standard Class. This     
Asset-Based Insurance Charge ranges from 1.60% to 1.95% during the accumulation 
period, depending on the death benefit that you select.                         

L CLASS                                                                         

    The L Class reduces the period of time that a Withdrawal Charge applies on
withdrawals, but imposes a higher Asset-Based Insurance Charge than the Standard
Class. Specifically, the L Class imposes a Withdrawal Charge on withdrawals for 
three years equal to a maximum of 7% of each purchase payment (reducing to 6% in
the second year and 5% in the third year). It also imposes an Asset-Based       
Insurance Charge that ranges from 1.50% to 1.85% during the accumulation period,
depending on the death benefit that you select.                                 

P CLASS                                                                         

The P Class lengthens the period of time that a Withdrawal Charge is  
imposed on withdrawals, and imposes a lower Asset-Based Insurance Charge than   
the Standard Class. Specifically, the P Class imposes a Withdrawal Charge on    
withdrawals equal to a maximum of 8% of each purchase payment, reducing over 9  
years. It also imposes an Asset-Based Insurance Charge that ranges from 1.15% to
1.50% during the accumulation period, depending on the death benefit that you   
select. The Asset-Based Insurance Charge will be 1.25% after annuitization (see 
"Asset-Based Insurance Charge").                                                

PURCHASE PAYMENTS                                                               

    Currently, the Standard Class and P Class minimum initial purchase payment
is $5,000 for non-qualified plans and $2,000 for qualified plans unless we agree
otherwise. The minimum subsequent purchase payment for non-qualified or         
qualified plans is $500 unless we agree otherwise. We will accept a different   
amount if required by Federal tax law. For the C Class and L Class, the minimum 
initial investment is $25,000 and the minimum subsequent purchase payment is    
$500, unless we agree otherwise. For the B Plus Class, the minimum initial      
investment is $10,000 and the minimum subsequent purchase payment is $500,      
unless we agree otherwise. The following exceptions may apply.                  

     -- For the Standard and P Classes only, when the Contract is bought as part
      of an individual retirement account under Section 408(a) of the Internal
      Revenue Code (the "Code") or individual retirement annuity under Section
     408(b) of the Code (both referred to as "IRAs"), or as a Roth IRA under
  Section 408A of the Code ("Roth IRA"), if you choose to have monthly
    purchase payments withdrawn from your financial institution account we
      will accept a monthly minimum of $100 in lieu of a single $2,000 initial
purchase payment.                                                 

-- For all other Contracts, we may accept monthly subsequent purchase 
   payments as low as $100 per month if they are made through the Master
   Service Account ("MSA"). The minimum initial purchase payment for the
selected class must still be met.                                 

 We may limit purchase payments made under a Contract. Currently, we may
refuse any purchase payment in excess of a maximum of $1,000,000. We may limit  
purchase payments under a flexible purchase payment contract to three times the 
amount shown in the application for any given Contract year.                    

NO PURCHASE PAYMENTS MAY BE MADE (1) WITHIN SEVEN YEARS PRIOR TO THE  
CONTRACT'S MATURITY DATE FOR THE STANDARD CLASS; NINE YEARS FOR THE B PLUS CLASS
AND THE P CLASS; AND THREE YEARS FOR THE L CLASS OR (2) AFTER A CONTRACT OWNER  
(OR THE ANNUITANT, IF THE CONTRACT IS NOT OWNED BY AN INDIVIDUAL) REACHES AGE   
91. FOR JOINT CONTRACT OWNERS, YOU MAY NOT MAKE A PURCHASE PAYMENT AFTER THE    
OLDER CONTRACT OWNER REACHES AGE 86.                                            

When we receive your completed application (information) and initial  
purchase payment, within two business days we will issue your Contract. The     
Contract Date is the date shown on your Contract. We will contact you if the    
application is incomplete and we need additional information. We will return    
initial purchase payments if the application is not complete within five        
business days unless you agree otherwise. We reserve the right to reject any    
application.                                                                    

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TEN DAY RIGHT TO REVIEW                                                         

   Within 10 days (or more where required by applicable state insurance law)
after you receive your Contract you may return it to us or our agent for        
cancellation. Upon cancellation of the Contract, we will return to you the      
Contract Value. If required by the insurance law or regulations of the state in 
which your Contract is issued, however, we will refund all purchase payments    
made. If you have selected the B Plus Class and you return your Contract during 
this period, we will recapture the bonus credit amount. The amount returned to  
you will not be decreased by any investment loss and you will retain any        
investment gain attributable to the bonus.                                      

ALLOCATION OF PURCHASE PAYMENTS                                                 

   Generally, you may allocate your purchase payments to as many accounts as
you select including the Fixed Account. You must allocate a minimum of $500     
dollars to each account you select. However, for IRAs and Roth IRAs, if purchase
payments are less than $2,000, you may allocate the payments to a maximum of    
four subaccounts. We convert your purchase payments, allocated to the Eligible  
Funds, to a unit of interest known as an Accumulation Unit. The number of       
Accumulation Units credited to the Contract is determined by dividing the       
purchase payment by the Accumulation Unit Value for the selected subaccounts at 
the end of the valuation day we receive your purchase payment at our Annuity    
Administrative Office.                                                          

CONTRACT VALUE AND ACCUMULATION UNIT VALUE                                      

We determine the value of your Contract by multiplying the number of  
Accumulation Units credited to your Contract by the appropriate Accumulation    
Unit Values. The Accumulation Unit Value for each Class and subaccount depends  
on the net investment experience of its corresponding Eligible Fund and reflects
the deduction of all fees and expenses.                                         

    The Accumulation Unit Value of each Class of each subaccount was initially
set at $1.00. We determine the Accumulation Unit Value by multiplying the most  
recent Accumulation Unit Value by the net investment factor for that day. The   
net investment factor is determined for each Class for each subaccount and      
reflects the change in net asset value per share of the corresponding Eligible  
Fund as of the close of regular trading on the New York Stock Exchange from the 
net asset value most recently determined, the amount of dividends or other      
distributions made by that Eligible Fund since the last determination of net    
asset value per share, and daily deductions from the average daily net asset    
value of the subaccount for the Separate Account annual expenses which vary     
depending upon the Class, death benefit, and subaccounts you choose. (See       
"Asset-Based Insurance Charge, Withdrawal Charge and Other Sales Deductions.")  
The net investment factor may be greater or less than one. We describe the      
formula for determining the net investment factor under the caption "Net        
Investment Factor" in the Statement of Additional Information.                  

   If you select the Fixed Account option, the total Contract Value includes
the amount of Contract Value held in the Fixed Account. (See "THE FIXED         
ACCOUNT.")                                                                      

PAYMENT ON DEATH PRIOR TO ANNUITIZATION                                         

   Prior to annuitization, your Contract's Death Proceeds will be determined
as of the end of the business day that we receive, at our Annuity Administration
Office, both due proof of the death of: (1) you as Contract Owner; (2) the first
Contract Owner to die, if your Contract has Joint Owners; or (3) the Annuitant, 
if your Contract is not owned in an individual capacity and an acceptable       
election for the payment method. (If there is no named Beneficiary under a joint
Contract, the Death Proceeds will be paid to the surviving Contract Owner.)     

     You will receive the Standard Death Benefit unless you chose to receive one
of two enhanced death benefits--the Annual Step-Up Death Benefit or the Greater 
of Annual Step-Up or 5% Annual Increase Death Benefit. Each of these enhanced   
death benefits will increase the Asset-Based Insurance Charge applicable to your
Contract. You may also elect to purchase, for an additional charge, the Earnings
Preservation Benefit Rider, which provides an additional death benefit to assist
with covering taxes payable at death, and/or the Guaranteed Minimum Income      
Benefit Rider, which provides a "floor" on annuity payments. After              
annuitization, the charge for the Earnings Preservation Benefit Rider and the   
Guaranteed Minimum Income Benefit Rider will not be assessed.                   

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STANDARD DEATH BENEFIT                                                          

The Standard Death Benefit at any time will be the greater of:        

(1) the Contract Value; or                                  

          (2) total Purchase Payments, reduced proportionately by the percentage
reduction in Contract Value attributable to each partial withdrawal   
(including any applicable Withdrawal Charge).                         

    If you are a natural person and change the Contract Owner to someone other
than your spouse during the accumulation period, the Standard Death Benefit     
payable when the new Contract Owner dies will be the greater of:                

(1) the Contract Value; or                                  

    (2) the Contract Value as of the effective date of the change of
Contract Owner, increased by any purchase payments made and reduced   
    proportionately by the percentage reduction in Contract Value attributable
 to any partial withdrawals (including any applicable Withdrawal Charge)
taken after that date.                                                

ANNUAL STEP-UP DEATH BENEFIT                                                    

  If you elect the Annual Step-Up Death Benefit, the death benefit will be
the greater of:                                                                 

(1) the Contract Value; or                                  

(2) the Highest Anniversary Value as defined below.         

   On the issue date, the Highest Anniversary Value is equal to your initial
purchase payment. Thereafter, the Highest Anniversary Value as recalculated will
be increased by subsequent purchase payments and reduced proportionately by the 
percentage reduction in Contract Value attributable to each subsequent partial  
withdrawal. On each Contract Anniversary prior to the Contract Owner's 81st     
birthday, the Highest Anniversary Value will be recalculated and set equal to   
the greater of the Highest Anniversary Value before the recalculation or the    
Contract Value on the date of the recalculation.                                

    If you are a natural person and change the Contract Owner to someone other
than your spouse, the death benefit is equal to the greatest of:                

(a) (1) above or                                            

    (b) the Contract Value as of the effective date of the change of
     Contract Owner, increased by purchase payments received after that date and
reduced proportionately by the percentage reduction in Contract Value 
attributable to each partial withdrawal (including any applicable     
Withdrawal Charge) made after that date; or                           

         (c) the Highest Anniversary Value, except that, on the effective date
of the Contract Owner change, the Highest Anniversary Value will be   
recalculated and set equal to the Contract Value on that date.        

If a non-natural person owns the Contract, then the Annuitant shall be
deemed to be Contract Owner in determining the death benefit. If Joint Owners   
are named, the age of the older will be used to determine the death benefit     
amount.                                                                         

GREATER OF ANNUAL STEP-UP OR 5% ANNUAL INCREASE DEATH BENEFIT                   

If you elect the Greater of Annual Step-Up or 5% Annual Increase Death
Benefit, the death benefit will be the greater of:                              

(1) the Contract Value; or                                  

(2) the Enhanced Death Benefit.                             

The Enhanced Death Benefit is the greater of (a) or (b) below:        

          (a) Highest Anniversary Value (as defined above for the Annual Step-Up
------- ----------- -----                           
Death Benefit).                                                       

      (b) Annual Increase Amount: On the Issue Date, the Annual Increase
------ -------- -------                             
  Amount is equal to your initial purchase payment. Thereafter, the Annual
Increase Amount is equal to (i) less (ii), where:                     

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           (i) is purchase payments accumulated at the Annual Increase Rate.
        The Annual Increase Rate is 5% per year through the Contract Anniversary
        immediately prior to the Contract Owner's 81st birthday, and 0% per year
thereafter; and                                                 

        (ii) Withdrawal Adjustments accumulated at the Annual Increase
 Rate. A Withdrawal Adjustment is equal to the value of the Annual
   Increase Amount immediately prior to a withdrawal multiplied by the
   percentage reduction in Contract Value attributable to that partial
withdrawal (including any applicable Withdrawal Charge).        

    If you are a natural person and change the Contract Owner to someone other
than your spouse, the death benefit is equal to the greater of the Contract     
Value or the Enhanced Death Benefit; however, for purposes of calculating the   
Enhanced Death Benefit:                                                         

          (a) the Highest Anniversary Value equals your Contract Value as of the
date the Contract Owner is changed; and                               

        (b) the current Annual Increase Amount equals your Contract Value as
  of the date the Contract Owner is changed. After that date, the Contract
Value on the date the Contract Owner is changed will be treated as the
initial purchase payment, and purchase payments received and partial  
     withdrawals taken (including any applicable Withdrawal Charge) prior to the
changes of Contract Owner will not be taken into account.             

If a non-natural person owns the Contract, then the Annuitant will be 
treated as the Contract Owner in determining the death benefit. If Joint Owners 
are named, the age of the older will be used to determine the death benefit     
amount.                                                                         

EARNINGS PRESERVATION BENEFIT RIDER                                             

    The Earnings Preservation Benefit Rider is an optional rider that provides
an additional death benefit ("Additional Death Benefit") to assist with covering
income taxes payable upon death. This rider may not be suitable for all Contract
Owners (particularly those approaching age 70 1/2) or in all circumstances. You 
should discuss with your registered representative whether this rider is        
appropriate for your needs and circumstances.                                   

  The Additional Death Benefit Amount will be calculated upon the death of
the first Owner or Joint Owner. If the spouse is the beneficiary and elects to  
continue the Contract, then he or she may: (1) continue the rider so that the   
Additional Death Benefit is payable upon his or her death; or (2) discontinue   
the rider and have the Additional Death Benefit that would have been payable at 
the Owner's death added to the Contract Value. The rider terminates, and the    
rider fee is no longer deducted, upon payment of the Additional Death Benefit.  

   Before the Contract Anniversary immediately prior to the Contract Owner's
81st birthday, the Earnings Preservation Benefit is equal to the applicable     
Benefit Percentage from the table below times the amount calculated by (a)-(b)  
below:                                                                          

(a) is the death benefit under your Contract; and           

          (b) total purchase payments not withdrawn. For purposes of calculating
this value, partial withdrawals (including any applicable Withdrawal  
     Charge) are first applied against earnings in the Contract and then against
purchase payments.                                                    

On or after the Contract Anniversary immediately prior to the Contract
Owner's 81st birthday, the Earnings Preservation Benefit is equal to the        
applicable Benefit Percentage times the amount calculated by (a)-(b) below:     

        (a) the death benefit amount on the Contract Anniversary immediately
prior to the Contract Owner's 81st birthday, increased by subsequent  
   purchase payments and reduced proportionately by the percentage reduction
in Contract Value attributable to each subsequent partial withdrawal  
(including any applicable Withdrawal Charge); and                     

          (b) total purchase payments not withdrawn. For purposes of calculating
this value, partial withdrawals (including any applicable Withdrawal  
Charge) are first applied against earnings in the Contract, and then  
against purchase payments.                                            

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BENEFIT PERCENTAGE

                                                                [Download Table]

    ISSUE AGE       PERCENTAGE
    ---------       ----------
                              
Ages 69 or younger      40%   
Ages 70-79              25%   
Ages 80 and above        0%   

If a non-natural person owns the Contract, then the Annuitant will be 
treated as Contract Owner in determining the Earnings Preservation Benefit. If  
Joint Owners are named, the age of the older Contract Owner will be used to     
determine the Earnings Preservation Benefit.                                    

WE DEDUCT A DAILY FEE AT THE ANNUAL RATE OF 0.25% OF AVERAGE DAILY NET
ASSETS IN THE SUBACCOUNTS FOR THIS RIDER PRIOR TO ANNUITIZATION.                

     Options for Death Proceeds.  For non-tax qualified plans, the Code requires
------- --- ----- ---------                                           
that if the Contract Owner (or, if applicable, Annuitant) dies prior to         
annuitization, we must pay Death Proceeds within 5 years from the date of death 
or apply the Death Proceeds to a payment option to begin within one year, but   
not to exceed the life expectancy of the beneficiary. We will pay the Death     
Proceeds, reduced by the amount of any applicable premium tax charge, in a lump 
sum or apply them to provide one or more of the fixed or variable methods of    
payment available (see "Annuity Options"). (Certain annuity payment options are 
not available for the Death Proceeds.) You may elect the form of payment during 
your lifetime (or during the Annuitant's lifetime, if the Contract is not owned 
by an individual). This election, particularly for Contracts issued in          
connection with retirement plans qualifying for tax benefited treatment, is     
subject to any applicable requirements of Federal tax law. For Death Proceeds to
be paid other than immediately in lump sum, any portion in the Variable Account 
remains in the Variable Account until distribution begins. From the time the    
Death Proceeds are determined until complete distribution is made, any amount in
the Variable Account will be subject to investment risk. The beneficiary bears  
such investment risk.                                                           

 If you have not elected a form of payment, your Beneficiary has 90 days
after we receive due proof of death, at our Annuity Administrative Office, to   
make an election. If you make no election, your Contract will be continued if   
permitted under our rules then in effect. Whether and when such an election is  
made could affect when the Death Proceeds are deemed to be received under the   
tax laws.                                                                       

The Beneficiary may: (1) receive payment in a single sum; (2) receive 
payment in the form of certain annuity payment options that begin within one    
year of the date of death; or (3) if eligible, continue the Contract under the  
Beneficiary Continuation provision or the Spousal Continuation provision, as    
further described below. We may also offer a payment option under which your    
Beneficiary may receive payments, over a period not extending beyond his or her 
life expectancy, under a method of distribution similar to the distribution of  
required minimum distributions from Qualified Contracts. IF THE BENEFICIARY DOES
NOT MAKE AN ELECTION WITHIN 90 DAYS AFTER WE RECEIVE DUE PROOF OF DEATH, AND THE
BENEFICIARY IS ELIGIBLE FOR EITHER THE BENEFICIARY CONTINUATION OR THE SPOUSAL  
CONTINUATION PROVISION, WE WILL CONTINUE THE CONTRACT UNDER THE APPLICABLE      
PROVISION.                                                                      

    There are comparable rules for distributions on the death of the Annuitant
under tax qualified plans. As noted, we may offer a payment option under which  
your Beneficiary may receive payments over a period not extending beyond his or 
her life expectancy under a method of distribution similar to the distribution  
of required minimum distributions from Qualified Contracts. For tax qualified   
plans, if this option is elected, we will issue a new Contract to your          
Beneficiary in order to facilitate the distribution of payments. The new        
Contract will be of the same class as your Contract, except if your Contract is 
a B Plus Class Contract, in which case we will issue a C Class Contract. Your   
Beneficiary may choose any optional death benefit available under the new       
Contract, but certain other Contract provisions and programs will not be        
available. Upon the death of your Beneficiary, the Death Proceeds would be      
required to be distributed to your Beneficiary's beneficiary at least as rapidly
as under the method of distribution in effect at the time of your Beneficiary's 
death. Moreover, if the Beneficiary under a tax qualified Contract is the       
Annuitant's spouse, the tax law also generally allows distributions to begin by 
the year in which the Annuitant would have reached 70 1/2 (which may be more or 
less than five years after the Annuitant's death).                              

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  If you (or, if applicable, the Annuitant) die on or after annuitization,
the remaining interest in the Contract will be distributed as quickly as under  
the method of distribution in effect on the date of death.                      

--BENEFICIARY CONTINUATION                                            

     Since tax law requires that Death Proceeds be distributed within five years
after the death of a Contract Owner (or, if applicable, the Annuitant), the     
Beneficiary Continuation provision permits a Beneficiary to keep the Death      
Proceeds in the Contract and to continue the Contract for a period ending five  
years after the date of death. The Death Proceeds must meet our published       
minimum (currently $5,000 for non-tax qualified Contracts and $2,000 for tax    
qualified Contracts) in order for the Contract to be continued by any           
Beneficiary.                                                                    

IF THE BENEFICIARY DOES NOT MAKE AN ELECTION WITHIN 90 DAYS AFTER WE  
RECEIVE DUE PROOF OF DEATH, AT OUR ANNUITY ADMINISTRATIVE OFFICE, WE WILL       
CONTINUE THE CONTRACT UNDER THE BENEFICIARY CONTINUATION PROVISION FOR A PERIOD 
ENDING FIVE YEARS AFTER THE DATE OF DEATH. IF BENEFICIARY CONTINUATION IS NOT   
AVAILABLE BECAUSE THE BENEFICIARY'S SHARE OF THE DEATH PROCEEDS DOES NOT MEET   
OUR PUBLISHED MINIMUM, HOWEVER, WE WILL PAY THE DEATH PROCEEDS IN A SINGLE SUM  
UNLESS THE BENEFICIARY ELECTS A PERMISSIBLE ANNUITY PAYMENT OPTION WITHIN 90    
DAYS AFTER WE RECEIVE DUE PROOF OF DEATH.                                       

The Death Proceeds become the Contract Value on the date of the       
continuation and are allocated among the accounts in the same proportion as they
had been prior to the continuation. In addition, the Beneficiary will have the  
right to make transfers and fully or partially withdraw his or her portion of   
the Contract Value, but may not make further purchase payments or exercise the  
dollar cost averaging feature. No minimum guaranteed death benefit amount or    
Withdrawal Charge will apply. Five years from the date of death of the Contract 
Owner (or, if applicable, the Annuitant), we will pay the Beneficiary's Contract
Value to the Beneficiary. If the Beneficiary dies during that five year period, 
the Beneficiary's death benefit is the Contract Value on the date when we       
receive due proof of death.                                                     

--SPECIAL OPTIONS FOR SPOUSES                                         

 Under the Spousal Continuation provision, the Contract may be continued
after your death prior to annuitization in certain situations: if a Contract has
spousal Joint Owners who are also the only Beneficiaries under the Contract, or 
if only one spouse is the Contract Owner (or, if applicable, the Annuitant) and 
the other spouse is the primary Beneficiary. In either of these situations, the 
surviving spouse may elect, within 90 days after we receive due proof of your   
death, at our Annuity Administrative Office,:                                   

  (1) to receive the Death Proceeds either in one sum or under a
permitted payment option;                                             

   (2) to continue the Contract under the Beneficiary Continuation
provision; or                                                         

         (3) to continue the Contract under the Spousal Continuation provision
 with the surviving spouse as the Contract Owner (or, if applicable, the
Annuitant).                                                           

   If the surviving spouse elects to continue the Contract under the Spousal
Continuation provision, the Contract Value under the continued Contract will be 
adjusted as of the date we received due proof of death to an amount equal to the
death benefit amount that would have been payable at the Contract Owner's death 
(excluding any amount that would have been payable under the Earnings           
Preservation Benefit Rider if the surviving spouse elects to continue the       
Rider). Any excess of the death benefit amount over the Contract Value will be  
allocated among the accounts in the same proportion as they had been prior to   
the continuation.                                                               

   IF THE SURVIVING SPOUSE DOES NOT MAKE AN ELECTION WITHIN 90 DAYS AFTER WE
RECEIVE DUE PROOF OF DEATH, WE WILL AUTOMATICALLY CONTINUE THE CONTRACT UNDER   
THE SPOUSAL CONTINUATION PROVISION IF OUR RULES PERMIT. The terms and conditions
of the Contract that applied prior to the death will continue to apply, with    
certain exceptions described in the Contract.                                   

TRANSFER PRIVILEGE                                                              

  Currently, you may transfer your Contract Value among subaccounts and/or
the Fixed Account without incurring federal income tax consequences. It is not  
clear, however, whether the Internal Revenue Service will limit the number of   
transfers between subaccounts and/or the Fixed Account. See the Statement of    
Additional Information about the Contracts, "Tax Status of the Contract."       

     We currently do not charge a transfer fee or limit the number of transfers.
We reserve the right to limit transfers and to charge a transfer fee of up to   
$25. We will not restrict transfers to less than 12. If we do change our policy,

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we will notify you in advance. Currently we allow a maximum of $500,000 and a   
minimum of $500 for each transfer unless otherwise agreed. (If a subaccount     
contains less than $500, that full amount may be transferred to a subaccount in 
which you already invested, or you may transfer this amount in combination with 
Contract Value from another subaccount so that the total transferred to the new 
subaccount is at least $500.)                                                   

During the Annuity Period, you may not make any transfers to the Fixed
Account if you are receiving payments under a variable payment option. No       
transfers are allowed if you are receiving payments under a fixed payment       
option. Under Contracts issued in New York, you may not transfer any Contract   
Value to any Portfolio of the American Funds Insurance Series during the Annuity
Period.                                                                         

  We will treat as one transfer all transfers requested by you on the same
day for all Contracts you own. For multiple transfers requested on the same day,
which exceed the $500,000 maximum, we will not execute any amount of the        
transfer. We will make transfers at the Accumulation Unit Values next determined
after we receive your request.                                                  

   Your right to make transfers is subject to limitations or modification by
us if we determine, in our sole opinion, that the exercise of the right by one  
or more Contract Owners with interests in the subaccount is, or would be, to the
disadvantage of other Contract Owners, including certain "market timing"        
activities. We may apply any such limitations or modifications to transfers to  
or from one or more of the subaccounts. These limitations or modifications may  
include (but are not limited to) any of the following:                          

-- the requirement of a minimum time period between each transfer;    

-- not accepting a transfer request from a third party acting under   
authorization on behalf of more than one Contract Owner;          

-- limiting the dollar amount that may be transferred between the     
subaccounts by a Contract Owner at any one time; and              

-- requiring that a written transfer request, for all subaccounts or  
   certain subaccounts that we specify, be provided to us at our Annuity
      Administrative Office, with an original signature of the Contract Owner.

We will notify any affected Contract Owner in a timely manner of any  
actions we take to restrict his or her ability to make transfers.               

  To the extent permitted by applicable law, we reserve the right to defer
the transfer privilege at any time that we are unable to purchase or redeem     
shares of any of the Eligible Funds available through the Variable Account. In  
addition, in accordance with applicable law, we reserve the right to modify or  
terminate the transfer privilege at any time.                                   

 In addition, certain Eligible Funds may restrict or refuse purchases or
redemptions of their shares as a result of certain market timing activities. You
should read the prospectuses of these Eligible Funds for more details.          

We reserve the right to limit the number of transfers during the      
accumulation and/or income periods. We also reserve the right to refuse         
transfers to the Fixed Account if we are paying an interest rate on the Fixed   
Account equivalent to our guaranteed minimum interest rate. We will notify you, 
in advance, if we change the above transfer provisions.                         

  See "Requests and Elections" for information regarding transfers made by
written request and by telephone.                                               

Special rules apply to transfers involving the Fixed Account. We limit
                                                              -- -----
transfers out of the Fixed Account as to amount. Special limits may apply on    
--------- --- -- --- ----- ------- -- -- -------                                
purchase payments and amounts transferred into the Fixed Account. See "THE      
OPERATION OF THE FIXED ACCOUNT" and the Statement of Additional Information.    

We may distribute your Contract Value among as many subaccounts as you
choose (including the Fixed Account) at any time. You must allocate a minimum of
$500 dollars per account. We will not process transfer requests not complying   
with this rule.                                                                 

DOLLAR COST AVERAGING                                                           

We offer an automated transfer privilege called dollar cost averaging.
There is no charge to you for this feature. Under this feature you may request  
that we transfer an amount of your Contract Value on the same day each month,   
prior to annuitization, from any one account of your choice to one or more of   
the other accounts (including the Fixed Account, subject to the limitations on  
transfers into the Fixed Account). We currently restrict the amount of Contract 
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Value which you may transfer from the Fixed Account. We allow one dollar cost   
averaging program to be active at a time. Currently, you must transfer a minimum
of $100 per transfer. You may cancel your use of the dollar cost averaging      
program at any time prior to the monthly transfer date. (See APPENDIX A for more
information about Dollar Cost Averaging and the Statement of Additional         
Information for more information on Dollar Cost Averaging and the Fixed         
Account.)                                                                       

   Guaranteed Account.  To the extent allowed by state law, we may credit an
---------- --------                                                   
interest rate different from the current Fixed Account rate to eligible payments
that you allocate to a Guaranteed Account we establish for the purpose of       
enhanced dollar cost averaging (an "enhanced dollar cost averaging option"). The
Guaranteed Account is part of our general account. Enhanced dollar cost         
averaging is available for Standard Class, P Class and L Class Contracts, but is
not available for B Plus Class and C Class Contracts. A purchase payment must be
a minimum of $10,000 in order for it to be eligible for the enhanced dollar cost
averaging option. A minimum of $500 must be allocated to the enhanced dollar    
cost averaging option. Only one dollar cost averaging program may be in effect  
at one time. Certain rules and limitations may apply to the purchase payments   
you can allocate to the Guaranteed Account.                                     

   Under enhanced dollar cost averaging, you currently may select a duration
of six or twelve months. We may in the future offer enhanced dollar cost        
averaging for a duration of three months. The first transfer will be made on the
date amounts are allocated to the enhanced dollar cost averaging option.        
Subsequent transfers will be made on the same day in subsequent months. If      
amounts are received on the 29th, 30th, or 31st of the month, dollar cost       
averaging transactions will be made on the 1st day of the following month. If   
the selected day is not a business day, the dollar cost averaging transaction   
will occur on the next business day.                                            

   The transfer amount will be equal to the amount allocated to the enhanced
dollar cost averaging option divided by the selected duration in months. For    
example, a $12,000 allocation to a six-month enhanced dollar cost averaging     
option will consist of a $2,000 transfer each month for six months, and a final 
transfer of any remaining amounts, including the interest credited, separately  
as a seventh transfer.                                                          

If a subsequent premium is allocated to an enhanced rate dollar cost  
averaging option while dollar cost averaging transfers are currently active, the
subsequent payment will be allocated to the active enhanced dollar cost         
averaging option (6 or 12 months) generally at the then current rate. The       
monthly dollar cost averaging transfer amount will be increased by the          
subsequent investment amount divided by the number of months in the selected    
duration period for the program. Using our example above, a subsequent $6,000   
allocation to a 6 month dollar cost averaging will increase the dollar cost     
averaging transfer amount from $2,000 to $3,000 ($12,000/6 + $6,000/6). Dollar  
cost averaging transfers will be made on a first-in first-out basis. If a       
subsequent premium is allocated to an enhanced rate dollar cost averaging       
option, the program will end when the assets are exhausted (which may be later  
than the selected period).                                                      

If you cancel your participation in the enhanced dollar cost averaging
option, any remaining balance of your Contract Value in the Guaranteed Account  
will be transferred to the State Street Research Money Market Subaccount unless 
you instruct us otherwise.                                                      

ASSET REBALANCING                                                               

We offer an asset rebalancing program for Contract Value. There is no 
charge to you for this program. Contract Value allocated to the subaccounts can 
be expected to increase or decrease at different rates due to market            
fluctuations. An asset rebalancing program automatically reallocates your       
Contract Value among the subaccounts periodically (either annually,             
semi-annually or quarterly) to return the allocation to the allocation          
percentages you specify. Asset rebalancing is intended to transfer Contract     
Value from those subaccounts that have increased in value to those that have    
declined, or not increased as much, in value. Over time, this method of         
investing may help you "buy low and sell high," although there can be no        
assurance that this objective will be achieved. Asset rebalancing does not      
guarantee profits, nor does it assure that you will not have losses.            

     You may select an asset rebalancing program when you apply for the Contract
or at a later date by contacting our Annuity Administrative Office. You specify 
the percentage allocations to which your Contract Value will be reallocated     
among the subaccounts (excluding the Fixed Account). On the last day of each    
period on which the New York Stock Exchange is open, we will transfer Contract  
Value among the subaccounts to the extent necessary to return the allocation to 
your specifications. Asset rebalancing will continue until you notify us in     
writing or by telephone at our Annuity Administrative Office. Asset rebalancing 
cannot continue beyond the Maturity Date. Currently, we don't count transfers   
made under an asset rebalancing program for purposes of the transfer rules      
described above.                                                                
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WITHDRAWALS                                                                     

    Before annuitization, you may withdraw all or part of your Contract Value.
You may receive the proceeds in cash or apply them to a payment option. The     
proceeds you receive will be the Contract Value determined as of the end of the 
business day that we receive your request at our Annuity Administration Office, 
reduced by the following amounts:                                               

-- any applicable Withdrawal Charge and                               

-- the Contract Administrative Fee.                                   

  We currently do not impose but reserve the right to deduct a premium tax
charge on withdrawals or payment of Death Proceeds in certain states.           

    See "ASSET-BASED INSURANCE CHARGE, WITHDRAWAL CHARGE AND OTHER DEDUCTIONS"
for a description of these charges and when they apply.                         

   Restrictions.  Federal tax laws, laws relating to employee benefit plans,
or the terms of benefit plans for which the Contracts may be purchased may      
restrict your right to withdraw your Contract Value.                            

 -- Federal tax laws impose penalties on certain premature distributions
from the Contracts. Full and partial withdrawals and systematic   
      withdrawals prior to age 59 1/2 may be subject to a 10% penalty tax (and
    25% in the case of a withdrawal from a SIMPLE IRA within the first two
years.). (See "FEDERAL INCOME TAX CONSIDERATIONS.")               

 Because a withdrawal may result in adverse tax consequences, you should
consult a qualified tax adviser before making the withdrawal. (See "FEDERAL     
INCOME TAX CONSIDERATIONS.")                                                    

How to withdraw all or part of your Contract Value.                   

 -- You must submit a request to our Annuity Administrative Office. (See
"Requests and Elections.")                                        

    -- You must provide satisfactory evidence of terminal illness, confinement
      to a nursing home or permanent and total disability if you would like to
    have the Withdrawal Charge waived. (See "ASSET-BASED INSURANCE CHARGE,
WITHDRAWAL CHARGE AND OTHER DEDUCTIONS.")                         

-- You must state in your request whether you would like to apply the 
      proceeds to a payment option (otherwise you will receive the proceeds in
a lump sum and may be taxed on them).                             

     -- We have to receive your withdrawal request in our Annuity Administrative
Office prior to the Maturity Date or Contract Owner's death.      

     We will normally pay withdrawal proceeds within seven days after receipt of
a request at the Annuity Administrative Office, but we may delay payment, by    
law, under certain circumstances. (See "Suspension of Payments.")               

   Amount of Withdrawal.  We will base the amount of the withdrawal proceeds
on the Accumulation Unit Values that are next computed after we receive the     
completed withdrawal request at our Annuity Administrative Office. However, if  
you choose to apply the withdrawal proceeds to a payment option, we will base   
the withdrawal proceeds on Accumulation Unit Values calculated on a later date  
if you so specify in your request. The amount of a partial withdrawal is a      
minimum of $500 unless we consent otherwise. After a partial withdrawal, your   
remaining Contract Value must be at least $2,000, unless we consent to a lower  
amount. A partial withdrawal will reduce your Contract Value in the subaccounts 
and Fixed Account in proportion to the amount of your Contract Value in each,   
unless you request otherwise.                                                   

SYSTEMATIC WITHDRAWALS                                                          

   Under the Systematic Withdrawal feature you may withdraw equal amounts of
your Contract Value automatically on a monthly, quarterly, semi-annual or annual
basis prior to annuitization. For all Classes other than the C Class, only      
monthly withdrawals may be made during the 1st Contract Year. The annualized    
amount to be withdrawn cannot exceed 10% of total purchase payments, unless we  
agree otherwise. Currently a withdrawal must be a minimum of $100 (unless we    
consent otherwise). We reserve the right to change the required minimum         
systematic withdrawal amount. If the New York Stock Exchange is closed on the   
day when the withdrawal is to be made, we will process the withdrawal on the    
next business day. The Withdrawal Charge will apply to amounts you              

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receive under the Systematic Withdrawal program in the same manner as it applies
to other partial withdrawals and withdrawals of Contract Value. (See "Withdrawal
Charge.")                                                                       

    If you continue to make purchase payments under the Contract while you are
making Systematic Withdrawals you could incur any applicable Withdrawal Charge  
on the withdrawals at the same time that you are making the new purchase        
payments.                                                                       

    You may only have one systematic withdrawal program in effect at any time.

The Federal tax laws may include systematic withdrawals in your gross 
income in the year in which you receive the withdrawal amount and will impose a 
penalty tax of 10% on certain systematic withdrawals which are premature        
distributions. The application for the systematic withdrawal program sets forth 
additional terms and conditions.                                                

SUSPENSION OF PAYMENTS                                                          

    We reserve the right to suspend or postpone the payment of any amounts due
under the Contract or transfers of Contract Values between subaccounts or to the
Fixed Account when permitted under applicable Federal laws, rules and           
regulations. Current Federal law permits such suspension or postponement if: (a)
the New York Stock Exchange is closed (other than for customary weekend and     
holiday closings); (b) trading on the Exchange is restricted; (c) an emergency  
exists so that it is not practical to dispose of securities held in the Variable
Account or to determine the value of its assets; or (d) the Securities and      
Exchange Commission by order so permits for the protection of securities        
holders.                                                                        

    Federal laws designed to counter terrorism and prevent money laundering by
criminals might, in certain circumstances, require us to reject a premium       
payment and/or block or "freeze" your account. If these laws apply in a         
particular situation, we would not be allowed to process any request for        
withdrawals, surrenders, or death benefits, make transfers, or continue making  
payments under your death benefit option until instructions are received from   
the appropriate regulator. We also may be required to provide additional        
information about your account to government regulators.                        

INACTIVE CONTRACTS                                                              

   We may terminate this Contract by paying you the Contract Value in a lump
sum if, prior to the date you choose to annuitize, you make no purchase payments
for two consecutive Contract Years, the total amount of purchase payments made, 
less any partial withdrawals, is less than $2,000 (or any lower amount required 
by Federal tax law), and the Contract Value on or after the end of such two year
period is less than $2,000.                                                     

OWNERSHIP RIGHTS                                                                

During the Annuitant's lifetime, all rights under the Contract belong 
solely to you as the Contract Owner unless otherwise provided.                  

These rights include the right to:                                    

-- change the Beneficiary                                             

-- change the Annuitant before the Annuity Date (subject to our       
underwriting and administrative rules)                            

-- assign the Contract (subject to limitations)                       

-- change the payment option                                          

   -- exercise all other rights, benefits, options and privileges allowed by
the Contract or us.                                               

   You may not change the ownership of your Contract without our consent. If
you use a Contract to fund an IRA or TSA Plan, the Contract Owner must be the   
Annuitant, and we will not allow a Contingent Annuitant.                        

    Qualified Plans and certain TSA Plans with sufficient employer involvement
are deemed to be "Pension Plans" under ERISA and may, therefore, be subject to  
rules under the Retirement Equity Act of 1984. These rules require that benefits
from annuity contracts purchased by a Pension Plan and distributed to or owned  
by a participant be provided in accordance with certain spousal consent, present
value and other requirements which are not enumerated in your Contract. You     
should consider carefully the tax consequences of the purchase of the Contracts 
by Pension Plans.                                                               

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  Contracts offered by the prospectus which we designed to qualify for the
favorable tax treatment described below under "FEDERAL INCOME TAX               
CONSIDERATIONS" contain restrictions on transfer or assignment, reflecting      
requirements of the Code which must be satisfied in order to assure continued   
eligibility for such tax treatment. In accordance with such requirements,       
ownership of such a Contract may not be changed and the Contract may not be     
sold, assigned or pledged as collateral for a loan or for any other purpose     
except under some limited circumstances. A Contract Owner contemplating a sale, 
assignment or pledge of the Contract should carefully review its provisions and 
consult a qualified tax adviser.                                                

    If your Contract is used in connection with deferred compensation plans or
retirement plans not qualifying for favorable Federal tax treatment, such plans 
may also restrict the exercise of your rights. You should review the provisions 
of any such plan.                                                               

REQUESTS AND ELECTIONS                                                          

   We will treat your request for a Contract transaction, or your submission
of a purchase payment, as received by us if we receive a request conforming to  
our administrative procedures or a payment at our Annuity Administrative Office 
before the close of regular trading on the New York Stock Exchange on that day. 
If we receive it after that time, or if the New York Stock Exchange is not open 
that day, then we will treat it as received on the next day when the New York   
Stock Exchange is open. Our Annuity Administrative Office is New England Life   
Insurance Company, c/o Annuity Administrative Office, P.O. Box 14594, Des       
Moines, IA 50306-3594.                                                          

Requests for subaccount transfers, address changes or reallocation of 
future purchase payments may be made:                                           

   -- By Telephone (1-800-435-4117), between the hours of 9:00 a.m. and 4:00
p.m. Eastern Time                                                 

-- Through your Registered Representative                             

-- In writing to New England Life Insurance Company, c/o Annuity      
 Administrative Office, P.O. Box 14594 Des Moines, IA 50306-3594, or

-- By fax (515) 457-4301                                              

All other requests must be in written form, satisfactory to us. We may
allow requests for a withdrawal over the telephone.                             

We do not currently offer Internet transactions capability to Contract
Owners, but may do so in the future. We will notify you if we begin to offer    
Internet transactions.                                                          

 We will use reasonable procedures such as requiring certain identifying
information, tape recording the telephone instructions, and providing written   
confirmation of the transaction, in order to confirm that instructions          
communicated by telephone or fax are genuine. Any telephone or fax instructions 
reasonably believed by us to be genuine will be your responsibility, including  
losses arising from any errors in the communication of instructions. As a result
of this policy, you will bear the risk of loss. If we do not employ reasonable  
procedures to confirm that instructions communicated by telephone or fax are    
genuine, we may be liable for any losses due to unauthorized or fraudulent      
transactions.                                                                   

 All other requests and elections under your Contract must be in writing
signed by the proper party, must include any necessary documentation and must be
received at our Annuity Administrative Office to be effective. If acceptable to 
us, requests or elections relating to Beneficiaries and ownership will take     
effect as of the date signed unless we have already acted in reliance on the    
prior status. We are not responsible for the validity of any written request or 
election.                                                                       

     Telephone, facsimile, and computer systems may not always be available. Any
telephone, facsimile or computer system, whether it is yours, your service      
provider's, your registered representative's, or ours, can experience outages or
slowdowns for a variety of reasons. These outages or slowdowns may delay or     
prevent our processing of your request. Although we have taken precautions to   
help our systems handle heavy use, we cannot promise complete reliability under 
all circumstances. If you experience technical difficulties or problems, you    
should make your request in writing to the Company's Annuity Administrative     
Office as described above.                                                      

CONFIRMING TRANSACTIONS                                                         

We will send out written statements confirming that a transaction was 
recently completed. Certain transactions may be confirmed quarterly. Unless you 
inform us of any errors within 60 days of receipt, we will consider these       
communications to be accurate and complete.                                     
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STATE VARIATIONS                                                                

    Contracts issued in your state may provide different features and benefits
from, and impose different costs than, those described in this prospectus. This 
prospectus provides a general description of the Contracts. Your actual Contract
and any endorsements are the controlling documents. If you would like to review 
a copy of the Contract and endorsements, contact our Annuity Administrative     
Office.                                                                         

ASSET-BASED INSURANCE CHARGE, 
WITHDRAWAL CHARGE AND OTHER DEDUCTIONS

We deduct various charges from your Contract Value for the services   
provided, expenses incurred and risks assumed in connection with your Contract. 
The charges are:                                                                

-- Asset-Based Insurance Charge                                       

-- Contract Administrative Fee                                        

-- Withdrawal Charge                                                  

    -- For Contracts with an Earnings Preservation Benefit Rider, an extra fee

-- For Contracts with a GMIB Rider, an extra fee                      

-- Premium Tax Charge and Other Expenses                              

     We describe these charges below. The amount of a charge may not necessarily
correspond to the costs associated with providing the services or benefits      
indicated by the designation of the charge or associated with the particular    
Contract. For example, the Withdrawal Charge may not fully cover all of the     
sales and distribution expenses actually incurred by us, and proceeds from other
charges, including the Asset-Based Insurance Charge, may be used in part to     
cover such expenses. We can profit from certain Contract charges. Eligible Fund 
operating expenses are shown on pages A-11 through A-12.                        

ASSET-BASED INSURANCE CHARGE                                                    

     We impose an annual Asset-Based Insurance Charge on the Contract Value. The
amount of the charge depends upon the Class of Contract you select, the features
you choose for your Contract, and the subaccounts you select. We deduct this    
charge daily from the assets in each subaccount.                                

  This amount compensates us for mortality risks we assume for the annuity
payment and death benefit guarantees made under the Contract. These guarantees  
include making annuity payments that won't change based on our actual mortality 
experience, and providing a guaranteed minimum death benefit under the Contract.
The charge also compensates us for expense risks we assume to cover Contract    
maintenance expenses. These expenses may include issuing Contracts, maintaining 
records, making and maintaining subaccounts available under the Contract and    
performing accounting, regulatory compliance, and reporting functions. This     
charge also compensates us for costs associated with the establishment and      
administration of the Contract, including programs like transfers and Dollar    
Cost Averaging.                                                                 

If the Asset-Based Insurance Charge is inadequate to cover the actual 
expenses of mortality, maintenance, and administration, we will bear the loss.  
If the charge exceeds the actual expenses, we will add the excess to our profit 
and it may be used to finance distribution expenses.                            

     The chart below lists the amount of the Asset-Based Insurance Charge (as an
annual percentage of the daily net assets of each subaccount) for each Class and
for each death benefit option prior to annuitization.*                          

                                                        [Enlarge/Download Table]

                                                     STANDARD  B PLUS                            
                                                      CLASS    CLASS**  C CLASS  L CLASS  P CLASS
                                                     --------  -------  -------  -------  -------
                                                                                                 
Standard Death Benefit..............................   1.25%    1.60%    1.60%    1.50%    1.15% 
Annual Step-Up Death Benefit........................   1.45%    1.80%    1.80%    1.70%    1.35% 
Greater of Annual Step-Up or 5% Annual Increase                                                  
  Death Benefit.....................................   1.60%    1.95%    1.95%    1.85%    1.50% 

* We currently impose an additional Asset-Based Insurance Charge of 0.25% of  
average daily net assets on the American Funds Growth, American Funds     
  Growth-Income and American Funds Global Small Capitalization Subaccounts. We
reserve the right                                                         

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to impose an increased Asset-Based Insurance Charge on subaccounts that we
add to the Contract in the future. The increase will not exceed the annual
rate of 0.25% of average daily net assets in any such subaccounts.        

** The Asset-Based Insurance Charge will be reduced on the B Plus Class by 0.35%
after the expiration of the 9-year Withdrawal Charge period.              

    We continue to assess an Asset-Based Insurance Charge after annuitization.
If you elect an enhanced death benefit, the amount of the Asset-Based Insurance 
Charge after annuitization will equal the level of the charge that would apply  
if you had not elected an enhanced death benefit; except that for the B Plus    
Class and P Class, the Asset-Based Insurance Charge will be 1.25% after         
annuitization. The Asset-Based Insurance Charge for all Classes increases by    
..25% for subaccounts investing in the American Funds Insurance Series.         

CONTRACT ADMINISTRATIVE FEE                                                     

The annual Contract Administrative Fee is $30. This fee (along with a 
portion of the Asset-Based Insurance Charge) is for such expenses as issuing    
Contracts, maintaining records, providing accounting, valuation, regulatory and 
reporting services, as well as expenses associated with marketing, sale and     
distribution of the Contracts.                                                  

   We deduct the fee for the prior Contract Year from your Contract Value on
each Contract anniversary, if your Contract Value is less than $50,000, and at  
the time of a full withdrawal regardless of your Contract size, from each       
subaccount in the ratio that the Contract Value in the subaccounts bears to your
total Contract Value (excluding the Fixed Account). We will deduct it, pro rata,
at annuitization if your Contract Value is less than $50,000. We reserve the    
right to deduct this fee during the Annuity Period, pro rata from each annuity  
payment. If we issue two Contracts to permit the funding of a spousal IRA, we   
will impose the Contract Administrative Fee only on the Contract to which you   
have allocated the larger purchase payments in your Contract application. We    
deduct the charge entirely from the Contract Value in the Variable Account, and 
not from the Contract Value in the Fixed Account.                               

WITHDRAWAL CHARGE                                                               

   We do not deduct or charge for sales expenses from your purchase payments
when they are made. However, a Withdrawal Charge may apply on certain events    
("withdrawal events"). THIS CHARGE DOES NOT APPLY TO THE C CLASS. Withdrawal    
events are: (a) a full or partial withdrawal of your Contract (including        
withdrawals where you apply the proceeds to certain payment options); (b) in    
some circumstances, a withdrawal of the commuted value of amounts that you      
applied to an annuity payment option; or (c) under Contracts issued in New York,
the Annuity Date if as of that date a purchase payment has been invested for    
less than seven years on the Standard Class, nine years on the B Plus and P     
Class, and three years on the L Class.                                          

    When you make a full withdrawal of your Contract, we take into account the
Withdrawal Charge in calculating the proceeds you will receive. On a partial    
withdrawal, we deduct the Withdrawal Charge from the Contract Value remaining   
after deduction of the amount you requested. We take the Withdrawal Charge from 
the Contract Value in the subaccounts and the Fixed Account in the same         
proportion as the Contract Value withdrawn.                                     

 The Charge equals a percentage of each purchase payment withdrawn. Each
purchase payment is subject to the charge for the applicable period specified   
below (12 month periods) from the date we receive it, as follows:               

                                                                [Download Table]

NUMBER OF COMPLETE         STANDARD                                   
YEARS FROM RECEIPT OF       CLASS     B PLUS CLASS   L CLASS   P CLASS
PURCHASE PAYMENT            CHARGE       CHARGE      CHARGE    CHARGE 
---------------------      --------   ------------   -------   -------
                                                                      
     0..................      7%           9%           7%        8%  
     1..................      6%           8%           6%        8%  
     2..................      6%           8%           5%        8%  
     3..................      5%           7%           0%        7%  
     4..................      4%           6%           0%        6%  
     5..................      3%           5%           0%        5%  
     6..................      2%           4%           0%        4%  
     7..................      0%           2%           0%        3%  
     8..................      0%           2%           0%        2%  
     9 and thereafter...      0%           0%           0%        0%  

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    On a Standard, B Plus, L, or P Class Contract in any Contract Year you may
withdraw the free withdrawal amount without incurring the Withdrawal Charge.    

   In the first Contract Year, no free withdrawal amount is available unless
it is part of a monthly systematic withdrawal program in which the monthly      
withdrawal amount does not exceed 1/12 of 10% of total purchase payments. After 
the first Contract Year, the annual free withdrawal amount is equal to 10% of   
total purchase payments, less the total free withdrawal amount previously       
withdrawn in the same Contract Year. Earnings may be withdrawn at any time, free
from any Withdrawal Charge.                                                     

We will attribute a withdrawal first to earnings, then to the free    
withdrawal amount, and then to remaining purchase payments. All withdrawals of  
purchase payments (including the free withdrawal amount) will result in the     
liquidation of purchase payments on a "first-in, first out" basis. That is, we  
will withdraw your purchase payments in the order you made them.                

 If your Contract Value is less than your total purchase payments due to
negative investment performance or deduction of the Contract Administrative Fee,
we apply the Withdrawal Charge to your Contract Value (instead of your purchase 
payments). Under such circumstances, the following rules apply for calculating  
the Withdrawal Charge: the deficiency will be attributed to your most recent    
purchase payment first, and subsequent earnings will be credited to that        
deficiency (and not treated as earnings) until Contract Value exceeds purchase  
payments.                                                                       

  Waiver of the Withdrawal Charge.  No Withdrawal Charge will apply to the
------ -- --- ---------- -------                                      
Standard, L, P and B Plus Class:                                                

-- On the Maturity Date or payment of the Death Proceeds.             

-- If you apply the proceeds to a variable or fixed payment option    
       involving a life contingency (described under "Annuity Options"), or, for
       a minimum specified period of 15 years, to either the Variable Income for
       a Specified Number of Years Option or the Variable Income Payments to Age
    100 Option (if elected prior to age 85), or a comparable fixed option.
       However, if you later withdraw the commuted value of amounts placed under
any of those options, we will deduct from the amount you receive a
      portion of the Withdrawal Charge amount that we would have deducted when
      you originally applied the Contract proceeds to the option. We will take
      into account the lapse of time from annuitization to withdrawal. We will
     base the portion of the Withdrawal Charge which applies on the ratio of
      (1) the number of whole months remaining, on the date of the withdrawal,
       until the date when the Withdrawal Charge would expire, to (2) the number
       of whole months that were remaining, when you applied the proceeds to the
  option, until the date when the Withdrawal Charge would expire. (See
example in APPENDIX B.)                                           

  -- On full or partial withdrawals if you, a Joint Owner, or Annuitant if
   the Contract is not owned by an individual, become terminally ill (as
 defined in the Contract), become chronically ill (as defined in the
   Contract), or are permanently and totally disabled (as defined in the
      Contract). These benefits are only available if you were not over age 65
(for the disability benefit) or age 80 (for the terminally ill or 
  chronically ill benefit) when we issued the Contract, and may not be
 available in every state. These waivers are only applicable for the
Standard, B Plus, L and P Class Contracts.                        

 -- On minimum distributions required by tax law. We currently waive the
      Withdrawal Charge on distributions that are intended to satisfy required
minimum distributions, calculated as if this Contract was the     
       participant's only retirement plan asset. This waiver only applies if the
     required minimum distribution exceeds the free withdrawal amount and no
    previous withdrawals were made during the Contract Year. (See "FEDERAL
INCOME TAX CONSIDERATIONS--Taxation of Qualified Contracts.")     

We may also waive the Withdrawal Charge if you surrender a Contract in
order to purchase a group variable annuity issued by us or an affiliate.        

   We may sell the Contracts directly, without compensation, to a registered
representative, to employees, officers, directors, and trustees of the Company  
and its affiliated companies, and certain family members of the foregoing, and  
to employees, officers, directors, trustees and registered representatives of   
any broker-dealer authorized to sell the Contracts or any bank affiliated with  
such a broker-dealer and of any subadviser to the Eligible Funds, and certain   
family members of the foregoing. If consistent with applicable state insurance  
law, we may sell the Contracts, without compensation, to us or MetLife for use  
with deferred compensation plans for agents, employees, officers, directors, and
trustees of the Company and its affiliated companies, subject to any            
restrictions imposed by the terms of such plans, or to persons who obtain their 
Contracts through a bank, adviser or consultant to whom they pay a fee          

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for investment or planning advice. If sold under these circumstances, we may    
credit the Contracts with an additional percentage of purchase payment to       
reflect in part or in whole any cost savings associated with the direct sale,   
but only if such credit will not be unfairly discriminatory to any person. We   
will not credit any additional purchase payment to Contracts purchased by       
persons described above in exchange for another variable annuity Contract issued
by us or our affiliated companies.                                              

EARNINGS PRESERVATION BENEFIT RIDER                                             

   If you have selected the Earnings Preservation Benefit Rider, we impose a
daily fee at the annual rate of 0.25% of average daily net assets in the        
subaccounts prior to annuitization.                                             

GUARANTEED MINIMUM INCOME BENEFIT RIDER                                         

    If you have selected the Guaranteed Minimum Income Benefit Rider ("GMIB"),
we impose a charge of 0.50% of the Income Base at the time the charge is        
assessed. The GMIB charge is reduced to 0.45% of the Income Base if you choose  
either the Annual Step-Up Death Benefit or the Greater of Annual Step-Up or 5%  
Annual Increase Death Benefit. See "GUARANTEED MINIMUM INCOME BENEFIT" for more 
information on how the charge is calculated.                                    

PREMIUM AND OTHER TAX CHARGES                                                   

     We reserve the right to deduct from the purchase payments or Contract Value
any taxes paid by us to any governmental entity relating to this Contract       
(including without limitation: premium taxes, federal, state and local          
withholding of income, estate, inheritance and other taxes required by law, and 
any new or increased state income taxes enacted). We will, at our sole          
discretion, determine when taxes relate to the Contract, including for example  
when they have resulted from: the investment experience of the Variable Account;
receipt by us of purchase payments; commencement of annuity benefits; payment of
death benefits; partial and full withdrawals; and any new or increased taxes    
which become effective that are imposed on us and which relate to purchase      
payments, earnings, gains, losses, fees, and charges under the Contract. We may,
at our sole discretion, pay taxes when due and make a deduction for such taxes  
from the Contract Value at a later date. Payment at an earlier date does not    
waive any right we may have to deduct amounts at a later date.                  

Most states impose a premium tax liability on the date when annuity   
benefits commence. In those states, we deduct the premium tax charge from the   
Contract Value on that date. To determine whether and when a premium tax charge 
will be imposed on a Contract, we will look to the state of residence of the    
Owner when a withdrawal is made or Death Proceeds are paid and to the state of  
residence of the annuitant when annuity benefits commence. In South Dakota, we  
reserve the right to deduct the premium tax charge at the earliest of: a full or
partial withdrawal of the Contract, the date when annuity benefits commence, or 
payment of the Death Proceeds (including application of the Death Proceeds to   
the Beneficiary Continuation provision).                                        

     Deductions for state premium tax charges currently range from 1/2% to 1.00%
of the Contract Value (or, if applicable, purchase payments or Death Proceeds)  
for Contracts used with retirement plans qualifying for tax benefited treatment 
under the Code and from 1% to 3.5% of the Contract Value (or, if applicable,    
Death Proceeds) for all other Contracts. For contracts sold in California to    
408(a) IRA Trusts, the premium tax charge is 2.35%. See Appendix C for a list of
premium tax rates.                                                              

OTHER EXPENSES                                                                  

     An investment advisory fee is deducted from, and certain other expenses are
paid out of, the assets of each Eligible Fund. (See "Expense Table.") The       
prospectus and Statement of Additional Information of the Eligible Funds        
describe these deductions and expenses.                                         

ANNUITY PAYMENTS

ELECTION OF ANNUITY                                                             

   The annuity period begins at the Maturity Date or at any earlier date you
choose to annuitize and provides for payments to be made to the Payee. You may  
apply your Contract Value to one of the payment options listed below (or a      
comparable fixed option).                                                       

     We base the Maturity Date of your Contract on the age of the Annuitant. The
Maturity Date is the later of (i) the date when the Annuitant, at his or her    
nearest birthday, would be age 95 (or the maximum age allowed by state law) or  
(ii) 10 years from the date of issue. If your Contract is acquired pursuant to  
an exchange from an old contract                                                

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(see "THE CONTRACTS--Purchase Payments"), the Maturity Date of the Contract     
would be set at age 95 (or the maximum allowed by state law) regardless of what 
the maturity date may have been for the old Contract.                           

    Upon the death of an Annuitant who is not the Owner or Joint Owner, during
the Accumulation Period, the Owner automatically becomes the Annuitant, unless  
the Owner chooses a new Annuitant subject to our underwriting rules in effect at
the time of the request for this change. If the Owner is a non-natural person,  
the death of the Annuitant will be treated as the death of an Owner. If you     
change the Annuitant, or the Owner becomes the Annuitant because of the original
Annuitant's death, we will change the Maturity Date, if necessary, so that it is
the date when the new Annuitant, at his or her nearest birthday, would be age 95
(or the maximum age allowed by state law).                                      

  Unless you elect another option, variable annuity payments will begin at
the Maturity Date for the life of the Payee, but for at least ten years. You can
change this annuity payment option at any time prior to annuitization. You may  
elect to have annuity payments under a Contract made on a variable basis or on a
fixed basis, or you may designate a portion to be paid on a variable basis and a
portion on a fixed basis. If you select payments on a fixed basis, we will      
transfer the amount of your Contract Value applied to the fixed payment option  
(net of any applicable charges described under "ASSET-BASED INSURANCE CHARGE,   
WITHDRAWAL CHARGE AND OTHER DEDUCTIONS") to our general account. We will fix the
annuity payments in amount and duration by the annuity payment option selected, 
the age of the Payee and, for Contracts issued in New York or Oregon for use in 
situations not involving an employer-sponsored plan, by the sex of the Payee.   
(See "Amount of Annuity Payments.")                                             

Contracts used in connection with retirement plans qualifying for tax 
benefited treatment may have various requirements for the time by which benefit 
payments must commence, the period over which such payments may be made, the    
annuity payment options that may be selected, and the minimum annual amounts of 
such payments. Penalty taxes or other adverse tax consequences may occur upon   
failure to meet such requirements.                                              

ANNUITY OPTIONS                                                                 

There are several annuity payment options. You may select one of the  
payment options prior to the Annuity Date, at full or partial withdrawal, or    
when death proceeds are payable (some options are not available for death       
proceeds).                                                                      

In addition to the annuity options described below, we may offer an   
additional payment option that would allow your Beneficiary to take distribution
of the Contract Value over a period not extending beyond his or her life        
expectancy. Under this option, annual distributions would not be made in the    
form of an annuity, but would be calculated in a manner similar to the          
calculation of required minimum distributions from Qualified Contracts. See     
"FEDERAL INCOME TAX CONSIDERATIONS--Taxation of Qualified Contracts." We intend 
to make this payment option available to both tax qualified and non-tax         
qualified Contracts.                                                            

   You select an annuity payment option by written request to us and subject
to any applicable Federal tax law restrictions.                                 

The Contract offers the variable annuity payment options listed below.

          Variable Income for a Specified Number of Years. We will make variable
 monthly payments for the number of years elected, which may not be more
than 30 except with our consent.                                      

      Variable Life Income. We will make variable monthly payments which
   will continue: while the Payee is living* ; while the Payee is living but
for at least ten years; or while the Payee is living but for at least 
     twenty years. (The latter two alternatives are referred to as Variable Life
Income with Period Certain Option.)                                   

         Variable Income Payments to Age 100 ("American Income Advantage"). We
     will make variable monthly payments for the number of whole years until the
Payee is age 100. THIS OPTION CANNOT BE SELECTED FOR DEATH PROCEEDS.  

     Variable Life Income for Two Lives. We will make variable monthly
   payments which will continue: while either of two Payees is living (Joint
   and Survivor Variable Life Income)*, while either of two Payees is living
but for at least 10 years (Joint and Survivor Variable Life Income, 10
  Years Certain); while two Payees are living, and, after the death of one
    while the other is still living, two-thirds to the survivor (Joint and 2/3
to Survivor Variable Life Income).* THIS OPTION CANNOT BE SELECTED FOR
DEATH PROCEEDS.                                                       

---------------                                                                 
*   It is possible under this option to receive only one variable annuity       
   payment if the Payee dies (or Payees die) before the due date of the second
  payment or to receive only two variable annuity payments if the Payee dies
(or Payees die) before the due date of the third payment, and so on.    
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   You may be able to purchase the Contract as the beneficiary of a deceased
person's Individual Retirement Account. If you do so, you must take distribution
of the Contract Value in accordance with the minimum required distribution rules
set forth in the Internal Revenue Code and IRS regulations. See "FEDERAL INCOME 
TAX CONSIDERATIONS--Taxation of Qualified Contracts." Under certain             
circumstances, you may satisfy those requirements by electing an annuity option,
but you may only elect an annuity option that is available for Death Proceeds.  
You may choose any optional death benefit available under the Contract, but     
certain other Contract provisions and programs will not be available. Upon your 
death, the Death Proceeds would be required to be distributed to your           
Beneficiary at least as rapidly as under the method of distribution in effect at
the time of your death.                                                         

Other annuity payment options (including other periods certain) may be
available from time to time, and you should ask us about their availability. If 
you do not elect an annuity payment option by the Maturity Date, we will make   
variable payments under the Contract while the Payee is living but for at least 
ten years. (This is the Variable Life Income with Period Certain Option.) If    
your purchase payments would be less than our published minimum, then you will  
need our consent to apply the Contract proceeds to an annuity payment option.   

    The Payee under the Variable Income for a Specified Number of Years Option
or the Variable Income Payments to Age 100 Option may withdraw the commuted     
value of the remaining payments. The Payee (or Payees) under the Variable Life  
Income with Period Certain Option or the Joint and Survivor Variable Life       
Income, 10 Years Certain Option may withdraw the commuted value of the remaining
period certain portion of the payment option. We calculate the commuted value of
such payments based on the same assumed interest rate that you selected under   
your Contract. The life income portion of the payment option cannot be commuted,
and variable annuity payments based on that portion will resume at the          
expiration of the period certain if the Annuitant is alive at that time. (See   
"Amount of Annuity Payments.") Amounts applied to a fixed payment option may not
be withdrawn.                                                                   

 See the section entitled "ASSET-BASED INSURANCE CHARGES, WITHDRAWAL AND
OTHER DEDUCTIONS" to find out whether a Withdrawal Charge applies when you      
annuitize or withdraw the commuted value of any payments certain.               

 If you are receiving payments under the Variable Income for a Specified
Number of Years Option or the Variable Income Payments to Age 100 Option you may
convert to an option involving a life contingency.                              

  The availability of certain annuity payment options may be restricted on
account of Company policy and Federal tax law, which among other things, may    
restrict payment to the life expectancy of the payee.                           

    We continue to assess an Asset-Based Insurance Charge after annuitization.
If you elect an enhanced death benefit, the amount of the Asset-Based Insurance 
Charge after annuitization will equal the level of the charge that would apply  
if you had not elected an enhanced death benefit; except that for the B Plus    
Class and P Class, the Asset-Based Insurance Charge will be 1.25% after         
annuitization. THE ASSET-BASED INSURANCE CHARGE FOR ALL CLASSES INCREASES BY    
..25% FOR SUBACCOUNTS INVESTING IN THE AMERICAN FUNDS INSURANCE SERIES. Charges 
for the Guaranteed Minimum Income Benefit and the Earnings Preservation Benefit 
Rider will not be assessed after annuitization.                                 

AMOUNT OF ANNUITY PAYMENTS                                                      

At the Annuity Date (or any other application of proceeds to a payment
option), your Contract Value (reduced by applicable premium tax, Contract       
Administrative Fee, and Withdrawal Charges) is applied toward the purchase of   
monthly annuity payments. We determine the amount of monthly variable annuity   
payments on the basis of (i) annuity purchase rates not lower than the rates set
forth in the Life Income Tables contained in the Contract that reflect the      
Payee's age, (ii) the assumed interest rate selected, (iii) the type of payment 
option selected, and (iv) the investment performance of the Eligible Funds      
selected. (The Fixed Account is not available under variable payment options.)  
Current annuity purchase rates may be changed by us periodically, and we will   
apply them prospectively on a non-discriminatory basis. You may select one of   
three assumed interest rates: 0%, 3.5%, or 5%. Your choice of assumed interest  
rate affects the pattern of your annuity payments.                              

We calculate the initial payment using the assumed interest rate you  
select. The amount of each payment after the initial payment will depend on how 
the subaccounts perform, relative to the assumed interest rate. If the actual   
net investment rate (annualized) exceeds your assumed interest rate, the payment
will increase. Conversely, if the actual rate is less than your assumed interest
rate, the annuity payment will decrease.                                        

 When selecting an assumed interest rate, you should keep in mind that a
lower assumed interest rate will result in a lower initial annuity payment, but 
subsequent annuity payments will increase more rapidly or decline more slowly as
changes occur in the investment experience of the Eligible Funds. On the other  
hand, a higher assumed                                                          
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interest rate will result in a higher initial payment than a lower assumed      
interest rate, but later payments will rise more slowly or fall more rapidly.   

     If you own a B Plus Class Contract and choose to annuitize under a fixed or
variable payment option during the 9-year withdrawal charge period, your annuity
payments will be based on a different set of current annuity purchase rates than
our other Classes. Additionally, our guaranteed rates for fixed or variable     
annuity payments will be different for B Plus Class Contracts than for other    
Classes. The effect of these different rates would be to lower your annuity     
payments.                                                                       

     For more information regarding annuity payment options, you should refer to
the Statement of Additional Information and also to the Contract, which contains
detailed information about the various forms of annuity payment options         
available, and other important matters.                                         

GUARANTEED MINIMUM INCOME BENEFIT 

You may also elect a Guaranteed Minimum Income Benefit. The GMIB is   
designed to provide you a predictable level of future income (for life)         
regardless of investment performance or actual Contract Value. The GMIB does not
establish or guarantee a Contract Value or a minimum return for any subaccount. 
The GMIB provides a minimum guaranteed lifetime fixed income benefit in the form
of a fixed monthly annuity payment. The amount of the benefit is determined by  
the Income Base when you exercise the rider. The amount of lifetime income that 
the GMIB guarantees may be less than the amount of income that would be provided
by applying your Contract Value on your Annuity Date to then-current annuity    
purchase rates.                                                                 

  The GMIB may be exercised after a 10 year waiting period, up through age
85, within 30 days following a Contract Anniversary. It is only available for   
Contract Owners up through age 75, and you must elect the GMIB on your Contract 
application. This election is irrevocable. If you purchase the GMIB, we will    
deduct an additional charge of 0.50% of the Income Base (see below) each year in
arrears.                                                                        

The Income Base is the greater of (a) or (b) below:                   

  (a) Highest Anniversary Value:  On the Issue Date, the Highest
------- ----------- ------                          
  Anniversary Value is equal to your initial purchase payment. Thereafter,
the Highest Anniversary Value will be increased by subsequent purchase
payments and reduced proportionately by the percentage reduction in   
Contract Value attributable to each subsequent partial withdrawal     
    (including any applicable Withdrawal Charge). On each Contract Anniversary
    prior to the Contract Owner's 81st birthday, the Highest Anniversary Value
will be recalculated and set equal to the greater of the Highest      
 Anniversary Value before the recalculation or the Contract Value on the
date of the recalculation.                                            

       (b) Annual Increase Amount:  On the Issue Date, the Annual Increase
------ -------- -------                             
  Amount is equal to your initial purchase payment. Thereafter, the Annual
Increase Amount is equal to (i) less (ii), where:                     

           (i) is purchase payments accumulated at the Annual Increase Rate.
        The Annual Increase Rate is 6% per year through the Contract Anniversary
        immediately prior to the Contract Owner's 81st birthday, and 0% per year
thereafter; and                                                 

           (ii) is Withdrawal Adjustments accumulated at the Annual Increase
        Rate. Withdrawal Adjustments in a Contract Year are determined according
to (1) or (2) as defined below:                                 

              (1) The Withdrawal Adjustment for each partial withdrawal in a
          Contract Year is the value of the Annual Increase Amount immediately
       prior to the withdrawal multiplied by the percentage reduction in
           Contract Value attributable to that partial withdrawal (including any
applicable Withdrawal Charge); or                         

             (2) If total partial withdrawals in a Contract Year are 6% or
 less of the Annual Increase Amount on the previous Contract
          Anniversary, the total Withdrawal Adjustments for that Contract Year
         will be set equal to the dollar amount of total partial withdrawals
         (including any applicable Withdrawal Charge) in that Contract Year.
          These Withdrawal Adjustments will replace the Withdrawal Adjustments
     defined in (1) above and be treated as though the corresponding
    partial withdrawals occurred at the end of that Contract Year.

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The Income Base does not change on or after the Contract Owner's 81st 
birthday, except that the Income Base on that date is increased for Purchase    
Payments made after that birthday, and decreased for partial withdrawals        
(including any applicable Withdrawal Charge) taken after that birthday.         

    THE INCOME BASE IS NOT AVAILABLE FOR CASH WITHDRAWALS AND IS ONLY USED FOR
PURPOSES OF CALCULATING THE GMIB PAYMENT AND THE RIDER CHARGE.                  

OWNERSHIP                                                                       

     While the GMIB Rider is in effect, the Contract Owner (or Joint Owners) and
Annuitant (or Joint Annuitants) must be the same. If a non-natural person owns  
the Contract, then Annuitant shall mean Contract Owner in determining the Income
Base and GMIB Payment. If Joint Owners are named, the age of the older will be  
used to determine the Income Base.                                              

GMIB ANNUITY TABLE                                                              

  The GMIB Annuity Table is calculated based on the Annuity 2000 Mortality
Table with a 7-year age setback with interest of 2.5% per year. The rate applied
will depend upon the Annuity Option elected and the Attained Age and sex of the 
Annuitant and Joint Annuitant, if applicable.                                   

EXERCISING THE GMIB RIDER                                                       

    If you exercise the GMIB Rider, you must elect to receive annuity payments
under one of the following Fixed Annuity Options:                               

      (1) Life Annuity with 10 Years of Annuity Payments Guaranteed. For
     annuitization ages over 79, the guaranteed component of the life annuity is
reduced as follows:                                                   

                                                                [Download Table]

AGE AT ANNUITIZATION           GUARANTEE PERIOD
--------------------           ----------------
                                               
     80......................         9        
     81......................         8        
     82......................         7        
     83......................         6        
     84 and 85...............         5        

         (2) Joint and Last Survivor Annuity with 10 Years of Annuity Payments
Guaranteed                                                            

    These Options are set forth in the Contract. Life Annuity with 10 Years of
Annuity Payments Guaranteed will be applied if no election is made under this   
Rider.                                                                          

   If you exercise the GMIB Rider, your annuity payments will be the greater
of:                                                                             

    - the annuity payment determined by applying the amount of the Income Base
to the GMIB Annuity Table, and                                    

    - the annuity payment determined for the same annuity option in accordance
with the base contract. (See "ANNUITY PAYMENTS--Amount of Annuity 
Payments.")                                                       

  Partial annuitizations are not permitted under the GMIB Rider. Also, you
may only elect an Annuity Date that is within 30 days following any Contract    
Anniversary and after the expiration of the Waiting Period. The Waiting Period  
is ten (10) Contract Years from the Issue Date. Applicable Withdrawal Charges on
the date that you exercise the Rider will be deducted from the Income Base. We  
also reserve the right to reduce the Income Base for any Premium and Other Taxes
that may apply. If you choose not to receive Annuity Payments as guaranteed     
under the Rider, you may elect any of the Annuity Options available under the   
Contract.                                                                       

GMIB RIDER CHARGE                                                               

Rider charges are 0.50% of the Income Base at the time the charge is  
assessed. The charge is reduced to 0.45% of the Income Base if you choose either
the Annual Step-Up Death Benefit or the Greater of Annual Step-Up or 5% Annual  
Increase Death Benefit. The charge is assessed at the first Contract            
Anniversary, and then at each subsequent Contract Anniversary up to and         
including the anniversary on or immediately preceding the date the Rider is     
exercised. Upon full withdrawal or annuitization, a pro rata portion of the     
Rider charge will be assessed.                                                  

     The Rider charge will result in the cancellation of Accumulation Units from
each applicable subaccount of the Variable Account and/or a reduction in the    
Account Value allocated to the Fixed Account in the ratio the Account Value in a
subaccount and/or the Fixed Account bears to the total Account Value.           

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TERMINATION PROVISIONS                                                          

The GMIB Rider will terminate upon the earliest of:                   

         (a) The date you elect to receive Annuity Payments under the Contract
and are not eligible to receive payments under the GMIB Rider;        

         (b) The 30th day following the Contract Anniversary immediately after
your 85th birthday;                                                   

      (c) The date you make a complete withdrawal of your Account Value;

         (d) Death of the Contract Owner (unless the spouse is the beneficiary
   and elects to continue the Contract and Rider), or death of the Annuitant
if a non-natural person owns the Contract; or                         

(e) Change of the Contract Owner, for any reason.           

RETIREMENT PLANS OFFERING FEDERAL TAX BENEFITS

     The Federal tax laws provide for a variety of retirement plans offering tax
benefits. These plans, which may be funded through the purchase of the          
individual variable annuity contracts offered in this prospectus, include:      

   1. Plans qualified under Section 401(a) of the Code ("Qualified
Plans");                                                              

   2. Annuity purchase plans adopted by public schools and certain
tax-exempt organizations pursuant to Section 403(b) of the Code ("TSA 
     Plans") which are funded solely by transfers from existing 403(b) plans and
which are not otherwise subject to ERISA; and                         

3. Individual retirement accounts adopted by or on behalf of
individuals pursuant to Section 408(a) of the Code and individual     
     retirement annuities purchased pursuant to Section 408(b) of the Code (both
of which may be referred to as "IRAs"), including simplified employee 
     pension plans and salary reduction simplified employee pension plans, which
  are specialized IRAs that meet the requirements of Section 408(k) of the
Code ("SEPs" and "SARSEPs"), Simple Retirement Accounts under Section 
    408(p) of the Code ("SIMPLE IRAs") and Roth Individual Retirement Accounts
   under Section 408A of the Code ("Roth IRAs"). SARSEPs are only allowed if
the Plan was established prior to January 1, 1997.                    

An investor should consult a qualified tax or other advisor as to the 
suitability of a Contract as a funding vehicle for retirement plans qualifying  
for tax benefited treatment, as to the rules underlying such plans and as to the
state and Federal tax aspects of such plans. In addition, because the underlying
                                             -- --------- ------- --- ----------
tax-favored retirement plan itself provides tax deferral, whether or not a      
----------- ---------- ---- ------ -------- --- --------- ------- -- --- -      
variable annuity is purchased, you should consider whether the features and     
-------- ------- -- ---------- --- ------ -------- ------- --- -------- ---     
benefits unique to variable annuities are appropriate for your needs when       
-------- ------ -- -------- --------- --- ----------- --- ---- ----- ----       
purchasing a Qualified Contract. In particular, the Contract is not intended for
---------- - --------- ---------                                                
use with TSA Plans that are subject to ERISA. The Company will not provide all  
the administrative support appropriate for such plans. Accordingly, the Contract
should NOT be purchased for use with such plans. The Company may make the       
Contract available for use with Section 401(k) plans.                           

A summary of the Federal tax laws regarding contributions to, and     
distributions from, the above tax benefited retirement plans may be found below 
under "FEDERAL INCOME TAX CONSIDERATIONS--Taxation of Qualified Contracts." It  
should be understood that should a tax benefited retirement plan lose its       
qualification for tax-exempt status, employees will lose some of the tax        
benefits described herein.                                                      

In the case of certain TSA Plans, IRAs and Roth IRAs, the individual  
variable annuity contracts offered in this prospectus comprise the retirement   
"plan" itself. These Contracts will be endorsed, if necessary, to comply with   
Federal and state legislation governing such plans, and such endorsements may   
alter certain Contract provisions described in this prospectus. Refer to the    
Contracts and any endorsements for more complete information.                   

FEDERAL INCOME TAX CONSIDERATIONS 

  The following discussion is general in nature and is not intended as tax
advice. Each person concerned should consult a competent tax advisor. No attempt
is made to consider any applicable state tax or other tax laws, or to address   
any federal estate, or state and local estate, inheritance and other tax        
consequences of ownership or receipt of distributions under a Contract.         

 When you invest in an annuity contract, you usually do not pay taxes on
your investment gains until you withdraw the money--generally for retirement    
purposes. If you invest in a variable annuity as part of an individual          
retirement plan, pension plan or employer-sponsored retirement program, your    
contract is called a Qualified Contract. If your annuity is independent of any  
formal retirement or pension plan, it is termed a Non-Qualified                 

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Contract. The tax rules applicable to Qualified Contracts vary according to the 
type of retirement plan and the terms and conditions of the plan.               

TAXATION OF NON-QUALIFIED CONTRACTS                                             

Non-Natural Person.  If a non-natural person (e.g., a corporation or a
trust) owns a Non-Qualified Contract, the taxpayer generally must include in    
income any increase in the excess of the account value over the investment in   
the Contract (generally, the premiums or other consideration paid for the       
Contract) during the taxable year. There are some exceptions to this rule and a 
prospective owner that is not a natural person should discuss these with a tax  
adviser.                                                                        

  The following discussion generally applies to Contracts owned by natural
persons.                                                                        

   Withdrawals.  When a withdrawal from a Non-Qualified Contract occurs, the
amount received will be treated as ordinary income subject to tax up to an      
amount equal to the excess (if any) of the account value immediately before the 
distribution over the Owner's investment in the Contract (generally, the        
premiums or other consideration paid for the Contract, reduced by any amount    
previously distributed from the Contract that was not subject to tax) at that   
time. In the case of a surrender under a Non-Qualified Contract, the amount     
received generally will be taxable only to the extent it exceeds the Owner's    
investment in the Contract.                                                     

   In the case of a withdrawal under a Qualified Contract, a ratable portion
of the amount received is taxable, generally based on the ratio of the          
"investment in the contract" to the individual's total account balance or       
accrued benefit under the retirement plan. The "investment in the contract"     
generally equals the amount of any non-deductible Purchase Payments paid by or  
on behalf of any individual. In many cases, the "investment in the contract"    
under a Qualified Contract can be zero.                                         

It is conceivable that charges for certain optional benefits under a  
variable annuity contract, such as any enhanced death benefit in excess of the  
Standard Death Benefit, may be considered as deemed distributions subject to    
immediate taxation. Consult your tax adviser prior to selecting any optional    
benefit under the Contract.                                                     

  Penalty Tax on Certain Withdrawals.  In the case of a distribution (or a
deemed distribution) from a Non-Qualified Contract, there may be imposed a      
federal tax penalty (in addition to ordinary income tax) equal to 10% of the    
amount treated as income. In general, however, there is no penalty on           
distributions:                                                                  

--  made on or after the taxpayer reaches age 59 1/2;               

--  made on or after the death of an Owner;                         

--  attributable to the taxpayer's becoming disabled;               

    --  made as part of a series of substantially equal periodic payment (at
        least annually) for the life (or life expectancy) of the taxpayer or
         the joint lives (or life expectancies) of the taxpayer and his or her
designated beneficiary; or                                  

--  under certain single premium immediate annuities providing for  
     substantially equal payments made at least annually and where the
     annuity date is no later than one year from the date of purchase.

    Other exceptions may be applicable under certain circumstances and special
rules may be applicable in connection with the exceptions enumerated above.     
Also, additional exceptions apply to distributions from a Qualified Contract.   
You should consult a tax adviser with regard to exceptions from the penalty tax.

Annuity Payments.  Although tax consequences may vary depending on the
payout option elected under an annuity contract, a portion of each annuity      
payment is generally not taxed and the remainder is taxed as ordinary income.   
The non-taxable portion of any annuity payment is generally determined in a     
manner that is designed to allow you to recover your investment in the contract 
ratably on a tax-free basis over the expected stream of annuity payments, as    
determined when annuity payments start. Once your investment in the contract has
been fully recovered, however, the full amount of each annuity payment is       
subject to tax as ordinary income.                                              

     The IRS has not furnished explicit guidance as to how the excludable amount
is to be determined each year under variable income annuities that permit       
transfers between investment sub-accounts after the annuity starting date.      
Consult your own tax advisor.                                                   

Taxation of Death Benefit Proceeds.  Amounts may be distributed from a
Contract because of your death or the death of the Annuitant. Generally, such   
amounts are includible in the income of the recipient as follows: (i) if        

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distributed in a lump sum, they are taxed in the same manner as a surrender of  
the Contract, or (ii) if distributed under a payout option, they are taxed in   
the same way as annuity payments.                                               

Transfers, Assignments or Exchanges of a Contract.  Where otherwise   
permitted under the terms of the Contract, a transfer or assignment of ownership
of a Contract, the designation or change of an annuitant, the selection of      
certain maturity dates, or the exchange of a Contract may result in certain     
adverse tax consequences to you that are not discussed herein. An owner         
contemplating any such transfer, assignment, exchange, or event should consult a
tax advisor as to the tax consequences.                                         

  Withholding.  Annuity distributions are generally subject to withholding
for the recipient's federal income tax liability. Recipients can generally      
elect, however, not to have tax withheld from distributions.                    

    Multiple Contracts.  All non-qualified deferred annuity contracts that are
issued by us (or our affiliates) to the same owner during any calendar year are 
treated as one annuity contract for purposes of determining the amount          
includible in such owner's income when a taxable distribution occurs.           

     Further Information.  We believe that the Contracts will qualify as annuity
contracts for Federal income tax purposes and the above discussion is based on  
that assumption. Further details can be found in the Statement of Additional    
Information under the heading "Tax Status of the Contracts."                    

TAXATION OF QUALIFIED CONTRACTS                                                 

    The tax rules applicable to Qualified Contracts vary according to the type
of retirement plan and the terms and conditions of the plan. Your rights under a
Qualified Contract may be subject to the terms of the retirement plan itself,   
regardless of the terms of the Qualified Contract. Adverse tax consequences may 
result if you do not ensure that contributions, distributions and other         
transactions with respect to the Contract comply with the law.                  

  Individual Retirement Accounts (IRA's), as defined in Section 408 of the
Internal Revenue Code (Code), permit individuals to make annual contributions of
up to the lesser of the applicable dollar amount for the year (for 2003, $3,000 
plus, for Owner's age 50 or older, $500) or the amount of compensation          
includible in the individual's gross income for the year. The contributions may 
be deductible in whole or in part, depending on the individual's income. If     
contributions are being made under a SEP or SARSEP plan of your employer,       
additional amounts may be contributed as permitted by the Code and the terms of 
the employer's plan. Distributions from certain retirement plans may be "rolled 
over" into an IRA on a tax-deferred basis without regard to these limits.       
Amounts in the IRA (other than non-deductible contributions) are taxed when     
distributed from the IRA. A 10% penalty tax generally applies to distributions  
made before age 59 1/2, unless an exception applies. THE INTERNAL REVENUE       
SERVICE HAS APPROVED THE FORMS OF THE IRA AND SIMPLE IRA ENDORSEMENTS, WHEN USED
WITH THE CONTRACT AND ITS RIDERS. FOR ROTH IRA'S WE USE THE LANGUAGE CONTAINED  
IN IRS MODEL ENDORSEMENT FORM 5305-RB, WITH THE RESULT THAT THE CONTRACT IS     
DEEMED TO BE APPROVED AS A ROTH IRA.                                            

  SIMPLE IRA's permit certain small employers to establish SIMPLE 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 $8,000 for 2003 (as may be   
increased in future years for cost of living adjustments). The sponsoring       
employer is generally required to make matching or non-elective contributions on
behalf of employees. Distributions from SIMPLE IRA's are subject to the same    
restrictions that apply to IRA distributions and are taxed as ordinary income.  
Subject to certain exceptions, premature 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 plan.                                                      

Roth IRAs, as described in Code section 408A, permit certain eligible 
individuals to make non-deductible contributions to a Roth IRA in cash or as a  
rollover or transfer from another Roth IRA or other IRA. A rollover from or     
conversion of an IRA to a Roth IRA is generally subject to tax, and other       
special rules apply. The Owner may wish to consult a tax adviser before         
combining any converted amounts with any other Roth IRA contributions, including
any other conversion amounts from other tax years. Distributions from a Roth IRA
generally are not taxed, except that, once aggregate distributions exceed       
contributions to the Roth IRA, income tax and a 10% penalty tax may apply to    
distributions made (1) before age 59 1/2 (subject to certain exceptions) or (2) 
during the five taxable years starting with the year in which the first         
contribution is made to any Roth IRA. A 10% penalty tax may apply to amounts    
attributable to a conversion from an IRA if they are distributed during the five
taxable years beginning with the year in which the conversion was made.         

     Corporate pension and profit-sharing plans under Section 401(a) of the Code
allow corporate employers to establish various types of retirement plans for    
employees, and self-employed individuals to establish qualified plans           

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for themselves and their employees. Adverse tax consequences to the retirement  
plan, the participant or both may result if the Contract is transferred to any  
individual as a means to provide benefit payments, unless the plan complies with
all the requirements applicable to such benefits prior to transferring the      
Contract. The Contract has an enhanced death benefit that in some cases may     
exceed the greater of the premium payments of the account value.                

     Tax Sheltered Annuities under section 403(b) of the Code allow employees of
certain Section 501(c)(3) organizations and public schools to exclude from their
gross income the premium payments made, within certain limits, on a contract    
that will provide an annuity for the employee's retirement. These premium       
payments may be subject to FICA (social security) tax. Distributions of (1)     
salary reduction contributions made in years beginning after December 31, 1988; 
(2) earnings on those contributions; and (3) earnings on amounts held as of the 
last year beginning before January 1, 1989, are not allowed prior to age 59 1/2,
separation from service, death or disability. Salary reduction contributions may
also be distributed upon hardship, but would generally be subject to penalties. 

     Death Benefits.  FOR CONTRACTS PURCHASED IN CONNECTION WITH QUALIFIED PLANS
UNDER SECTION 401(A) OR TSA PLANS UNDER SECTION 403(B), CERTAIN DEATH BENEFITS  
COULD CONCEIVABLY BE CHARACTERIZED AS AN INCIDENTAL BENEFIT, THE AMOUNT OF WHICH
IS LIMITED IN CERTAIN PENSION OR PROFIT-SHARING PLANS. BECAUSE THE DEATH BENEFIT
IN CERTAIN CASES MAY EXCEED THIS LIMITATION, EMPLOYERS USING THE CONTRACT IN    
CONNECTION WITH SUCH PLANS SHOULD CONSULT THEIR TAX ADVISER.                    

    Section 457(b) Plans, while not actually providing for a qualified plan as
that term is normally used, provides for certain eligible 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. The Contract 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. Under a non-governmental plan, all 
such investments, however, are owned by and are subject to, the claims of the   
general creditors of the sponsoring employer. In general, all amounts received  
under a non-governmental Section 457(b) plan are taxable and are subject to     
federal income tax withholding as wages.                                        

     Other Tax Issues.  Qualified Contracts have minimum distribution rules that
govern the timing and amount of distributions. You should refer to your         
retirement plan, adoption agreement, or consult a tax adviser for more          
information about these distribution roles. Failure to meet such rules generally
results in the imposition of a 50% excise tax on the amount which should have   
been, but was not, distributed.                                                 

     Distributions from Qualified Contracts generally are subject to withholding
for the Owner's federal income tax liability. The withholding rate varies       
according to the type of distribution and the Owner's tax status. The Owner will
be provided the opportunity to elect not to have tax withheld from              
distributions.                                                                  

Taxable "eligible rollover distributions" from section 401(a), 403(a),
403(b) and governmental Section 457(b) plans are subject to a mandatory federal 
income tax withholding of 20%. An eligible rollover distribution is any         
distribution to an employee (or employee's spouse or former spouse as           
beneficiary or alternate payee) from such a plan, except certain distributions  
such as distributions required by the Code, distributions in a specified annuity
form, hardship distributions or certain taxable distributions. The 20%          
withholding does not apply, however, if the employee chooses a "direct rollover"
from the plan to a tax-qualified plan, IRA or tax sheltered annuity or to a     
governmental 457 plan that agrees to separately account for rollover            
contributions.                                                                  

    Foreign Tax Credits.  To the extent permitted under the federal income tax
law, we may claim the benefit of certain foreign tax credits attributable to    
taxes paid by certain of the Eligible Funds to foreign jurisdictions.           

POSSIBLE TAX LAW CHANGES                                                        

Although the likelihood of legislative changes is uncertain, there is 
always the possibility that the tax treatment of the Contract could change by   
legislation or otherwise. Consult a tax adviser with respect to legislative     
developments and their effect on the Contract.                                  

     We have the right to modify the Contract in response to legislative changes
that could otherwise diminish the favorable tax treatment that annuity contract 
owners currently receive. We make no guarantee regarding the tax status of any  
Contract and do not intend the above discussion as tax advice.                  

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VOTING RIGHTS 

 We are the legal owner of the Eligible Fund shares held in the Variable
Account and have the right to vote those shares at meetings of the Eligible Fund
shareholders. However, to the extent required by Federal securities law, we will
give you, as Contract Owner, the right to instruct us how to vote the shares    
that are attributable to your Contract.                                         

    Prior to annuitization, we determine the number of votes on which you have
a right to instruct us, on the basis of your percentage interest in a subaccount
and the total number of votes attributable to the subaccount. After             
annuitization, the number of votes attributable to your Contract is determined  
on the basis of the reserve for your future annuity payments and the total      
number of votes attributable to the subaccount. After annuitization the votes   
attributable to your Contract decrease as reserves underlying your Contract     
decrease.                                                                       

We will determine, as of the record date, if you are entitled to give 
voting instructions and the number of shares as to which you have a right of    
instruction. If we do not receive timely instructions from you, we will vote    
your shares for, against, or withheld from voting on any proposition in the same
proportion as the shares held in that subaccount for all policies or contracts  
for which we have received voting instructions.                                 

We will vote for Eligible Fund shares held in our general investment  
account (or any unregistered separate account for which voting privileges are   
not given) in the same proportion as the aggregate of (i) the shares for which  
we received voting instructions and (ii) the shares that we vote in proportion  
to such voting instructions.                                                    

DISTRIBUTION OF THE CONTRACTS 

   We have entered into a distribution agreement with New England Securities
Corporation ("New England Securities") for the distribution and sale of the     
Contracts. Pursuant to this agreement, New England Securities serves as         
principal underwriter for the Contracts. New England Securities, a Massachusetts
corporation organized in 1968 and an indirect, wholly owned subsidiary of the   
Company, is located at 501 Boylston Street, Boston, Massachusetts 02116. New    
England Securities is registered as a broker-dealer with the Securities and     
Exchange Commission under the Securities Exchange Act of 1934 (the "1934 Act"), 
as well as with the securities commissions in the states in which it operates,  
and is a member of the National Association of Securities Dealers, Inc. (the    
"NASD").                                                                        

New England Securities offers the Contracts through its registered    
representatives who are registered with the NASD and with the states in which   
they do business. More information about New England Securities and its         
registered persons is available at http://www.nasdr.com or by calling           
1-800-289-9999. You also can obtain an investor brochure from NASD Regulation   
describing its Public Disclosure Program. Registered representatives with New   
England Securities are also licensed as insurance agents in the states in which 
they do business and are appointed with the Company.                            

   We pay sales commissions for the sale of the Contracts. Sales commissions
may vary, but are expected not to exceed 8% of purchase payments. We do not     
currently but reserve the right to pay lower commissions on purchase payments   
allocated to the Fixed Account and/or Guaranteed Account than we do for purchase
payments allocated to the Variable Account. We pay compensation either as a     
percentage of purchase payments at the time we receive them, as a percentage of 
Contract Value on an ongoing basis, or in some cases, a combination of both. All
or a portion of commissions may be returned if the Contract is not continued    
through the first Contract Year.                                                

New England Securities may enter into selling agreements with other   
broker-dealers registered under the 1934 Act to sell the Contracts. Under these 
agreements, the commissions paid to the broker-dealer on behalf of the          
registered representative are not expected to exceed those described above;     
selling firms may retain a portion of commissions.                              

    New England Securities does not retain any override as distributor for the
Contracts. However, New England Securities' operating and other expenses are    
paid for by the Company. Also, New England Securities or an affiliate may       
receive 12b-1 fees from certain Eligible Funds.                                 

Because registered representatives of New England Securities are also 
agents of the Company, they are eligible for various cash benefits, such as     
bonuses, insurance benefits and financing arrangements, and non-cash            
compensation programs that the Company offers, such as conferences, trips,      
prizes, and awards. Other payments may be made for other services that do not   
directly involve the sale of the Contracts. These services may include the      
recruitment and training of personnel, production of promotional literature, and
similar services.                                                               

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   We intend to recoup commissions and other sales expenses through fees and
charges imposed under the Contract. Commissions paid on the Contract, including 
other incentives or payments, are not charged directly to the Contract Owners or
the Variable Account.                                                           

THE OPERATION OF THE FIXED ACCOUNT

   The Contract has a Fixed Account option in states that have approved this
option. You may allocate net purchase payments and may transfer Contract Value  
in the Variable Account to the Fixed Account, which is part of our general      
account. The Fixed Account offers diversification to a Variable Account         
Contract, allowing you to protect principal and earn a guaranteed rate of       
interest. The Fixed Account is not available to Contracts purchased after May 1,
2003 for which the C Class has been selected or for any Contracts which are     
purchased on or after that date in the state of New York.                       

  Because of exemptive and exclusionary provisions, interests in the Fixed
Account have not been registered under the Securities Act of 1933, and neither  
the Fixed Account nor the general account has been registered as an investment  
company under the Investment Company Act of 1940. Therefore, neither the general
account, the Fixed Account nor any interests therein are generally subject to   
the provisions of these Acts, and we have been advised that the staff of the    
Securities and Exchange Commission does not review disclosures relating to the  
general account. Disclosures regarding the Fixed Account may, however, be       
subject to certain generally applicable provisions of the Federal securities    
laws relating to the accuracy and completeness of statements made in            
prospectuses.                                                                   

    Our general account consists of all assets owned by us other than those in
the Variable Account and the Company's other separate accounts. We have sole    
discretion over the investment of assets in the general account, including those
in the Fixed Account. You do not share in the actual investment experience of   
the assets in the Fixed Account. Instead, we guarantee that we will credit      
Contract Values in the Fixed Account with interest at an annual rate that will  
not be less than the minimum rate required by your state. (For Contracts issued 
prior to May 1, 2003, this rate will not be less than 3%). We are not obligated 
to credit interest at a higher rate, although we have sole discretion to do so. 
We will credit Contract Values in the Fixed Account with interest daily. We also
reserve the right to restrict transfers or purchase payments into the Fixed     
Account if we are paying an interest rate on the Fixed Account equivalent to our
guaranteed minimum interest rate or if the total Contract Value in the Fixed    
Account exceeds such maximum amount(s) that we establish from time to time. You 
can contact us or consult your registered representative for our current limits.

   Currently, any purchase payment or portion of Contract Value you allocate
to the Fixed Account will earn interest at an annual rate we determine for that 
deposit for a 12 month period. At the end of each succeeding 12 month period, we
will determine the interest rate that will apply to that deposit plus the       
accrued interest for the next 12 months. This renewal rate may differ from the  
interest rate that is applied to new deposits on that same day.                 

CONTRACT VALUE AND FIXED ACCOUNT TRANSACTIONS                                   

  A Contract's total Contract Value will include its Contract Value in the
Variable Account, in the Fixed Account, or in the Company's general account (but
outside the Fixed Account).                                                     

Amounts you surrender from the Fixed Account will be on a "first-in,  
first-out" basis. The amounts you allocate to the Fixed Account are subject to  
the same rights and limitations as in the Variable Account regarding withdrawals
and partial withdrawals. Special limits, however, apply to transfers involving  
the Fixed Account (see below). Unless you request otherwise, any partial        
withdrawal you make will reduce the Contract Value in the subaccounts of the    
Variable Account and the Fixed Account, proportionately.                        

     We limit the amount of Contract Value which you may transfer from the Fixed
Account, except with our consent to the greater of (i) 25% of Contract Value in 
the Fixed Account at the end of the first day of the Contract Year, or (ii) the 
amount of Contract Value that you transferred from the Fixed Account in the     
prior Contract Year. However, these limits do not apply to new deposits to the  
Fixed Account for which the dollar cost averaging program has been elected      
within 30 days from the date of deposit. Amounts you transfer to the subaccounts
from the Fixed Account will be on a "last-in, first-out" basis. No transfers to 
the Fixed Account are allowed for 180 days after the date of a transfer out of  
the Fixed Account and we reserve the right to restrict purchase payments to the 
Fixed Account during this period. See the Statement of Additional Information.  

 We will deduct the annual Contract Administrative Fee entirely from the
Contract Value in the Variable Account, and not from the Contract Value in the  
Fixed Account.                                                                  

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    For more information on the Fixed Account please refer to the Statement of
Additional Information.                                                         

INVESTMENT PERFORMANCE INFORMATION

   We may advertise or include in sales literature (i) current and effective
yields for the subaccounts for a Class; (ii) total returns for the subaccounts  
for a Class, (iii) non-standard returns for the subaccounts for a Class and (iv)
historical and hypothetical illustrations of the growth and value of a purchase 
payment or payments invested in the subaccounts for a specified period for a    
Class. Total returns for the subaccounts are based on the investment performance
of the corresponding Eligible Funds. THESE FIGURES ARE BASED ON HISTORICAL      
EARNINGS AND DO NOT INDICATE OR PROJECT FUTURE PERFORMANCE. We may also         
advertise or include in sales literature a subaccount's performance for a Class 
compared to certain performance rankings and indexes compiled by independent    
organizations, and we may present performance rankings and indexes without such 
a comparison. See the Statement of Additional Information. We may reflect bonus 
amounts in performance relating to the B Plus Class.                            

YIELDS                                                                          

The current yield of the State Street Research Money Market Subaccount
refers to the annualized income generated by an investment in the subaccount    
over a specified 7-day period on a Class-specific basis. The current yield is   
calculated by assuming that the income generated for that 7-day period is       
generated each 7-day period over a 52-week period and is shown as a percentage  
of the investment. The effective yield is calculated similarly but, when        
annualized, the income earned by an investment is assumed to be reinvested. The 
effective yield will be slightly higher than the current yield because of the   
compounding effect of this assumed reinvestment.                                

  The yield of a subaccount (beside the State Street Research Money Market
Subaccount) refers to the annualized income generated by an investment in the   
subaccount over a specified 30-day or one-month period on a Class-specific      
basis. The yield is calculated by assuming the income generated by the          
investment during that 30-day or one-month period is generated each period over 
12 months and is shown as a percentage of the investment.                       

STANDARD RETURN                                                                 

  The total return of a subaccount refers to return quotations assuming an
investment under a Contract has been held in the subaccount for the stated      
times. Average annual total return of a subaccount tells you the return you     
would have experienced if you allocated a $1,000 purchase payment to a          
subaccount for the specified period. We provide average annual total returns for
the subaccounts on a Class-specific basis. Standardized average annual total    
return reflects all historical investment results, less all charges and         
deductions applied against the subaccount for that Class (assuming selection of 
the Standard Death Benefit), including any Withdrawal Charge that would apply if
you terminated a Contract at the end of each period indicated, but excluding any
deductions for premium taxes. Standard total return for a Class will reflect the
charge for the GMIB but will not reflect charges for any other optional         
additional benefits, including the Earnings Preservation Benefit Rider. From    
time to time in response to changes in the marketplace, promotional emphasis,   
and actual sales experience, we may modify our determination of which charges   
and deductions for optional features to factor into each Class' standardized    
average annual total returns. Narrative disclosure accompanying performance     
information in marketing materials always will indicate clearly which charges   
and deductions are reflected in performance for each Class. Standardized total  
return may be quoted for various periods including 1 year, 5 years, and 10      
years, or from inception of the subaccount if any of those periods are not      
available. See the Statement of Additional Information.                         

NON-STANDARD RETURN                                                             

   "Non-Standard" average annual total return information for a Class may be
presented, computed on the same basis as described above, except that deductions
may not include the Withdrawal Charge or the charge for the GMIB. We may from   
time to time disclose average annual total return for non-standard periods and  
cumulative total return for a subaccount. We may also provide non-standard      
performance that reflects the inclusion or exclusion of various optional riders 
on a Class-specific basis. Narrative disclosure in marketing material containing
non-standard returns will indicate which charges and deductions are reflected.  
Non-standard performance for a Class will be accompanied by standard performance
for that Class. See the Statement of Additional Information.                    

   We may also illustrate on a Class-specific basis what would have been the
growth and value of a specified purchase payment or payments if it or they had  
been invested in each of the Eligible Funds on the first day of the first month 
after those Eligible Funds had commenced operations. This illustration will show
Contract Value and Withdrawal Value, calculated in the same manner as average   
annual total return, as of the end of each year, ending with the date of the    
illustration. Withdrawal Value reflects the deduction of any Withdrawal Charge  
that may apply, but does not reflect the deduction of any premium tax charge. We
may also show annual percentage changes in                                      
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Contract Value and Withdrawal Value, cumulative returns, and annual effective   
rates of return. We determine the annual percentage change in Contract Value by 
taking the difference between the Contract Value or Withdrawal Value at the     
beginning and at the end of each year and dividing it by the beginning Contract 
Value or Withdrawal Value. We determine cumulative return by taking the         
difference between the investment at the beginning of the period and the ending 
Contract Value or Withdrawal Value and dividing it by the investment at the     
beginning of the period. We calculate the annual effective rate of return in the
same manner as average annual total return.                                     

We may show the percent change in accumulation unit value and annual  
effective rate of return of a subaccount. Accumulation unit values do not       
reflect the impact of any Withdrawal Charge, premium tax charge, or the annual  
Contract Administrative Fee. The percent change in accumulation unit value is   
calculated by dividing the difference in accumulation unit values at the        
beginning and end of the period by the beginning accumulation unit value. See   
the Statement of Additional Information for a description of the method for     
calculating the annual effective rate of return.                                

   We may present illustrations for a hypothetical Contract assuming monthly
transfers from one subaccount to designated other subaccounts under a Dollar    
Cost Averaging Program. We may also present illustrations designed to show      
required minimum distributions and other values for hypothetical Contracts under
certain qualified plans.                                                        

    We may also illustrate growth and value of a specified purchase payment or
payments on a Class-specific basis in the same manner as described above based  
on hypothetical returns.                                                        

OTHER PERFORMANCE                                                               

     In advertising and sales literature, we may compare the performance of each
subaccount on a Class-specific basis to the performance of other variable       
annuity issuers in general or to the performance of particular types of variable
annuities investing in mutual funds, or investment series of mutual funds with  
investment objectives similar to each of the subaccounts. Advertising and sales 
literature may also show the performance rankings of the subaccounts assigned by
independent services, such as Variable Annuity Research Data Services ("VARDS") 
or may compare to the performance of a subaccount on a Class-specific basis to  
that of a widely used index, such as Standard & Poor's Index of 500 Common      
Stocks. We may also use other independent ranking services and indexes as a     
source of performance comparison.                                               

FINANCIAL STATEMENTS

You may find the financial statements of the Company and the Variable 
Account in the Statement of Additional Information.                             

ACCUMULATION UNIT VALUES

NEW ENGLAND VARIABLE ANNUITY SEPARATE ACCOUNT 
CONDENSED FINANCIAL INFORMATION 

     The following tables show the Accumulation Unit Values through December 31,
2002 for each subaccount. The Accumulation Unit Values are shown for Contracts  
with the lowest total Variable Account charge that applied through December 31, 
2002, and for Contracts with the highest total Variable Account Charge that     
applied through December 31, 2002. The first table shows Contracts with the     
Standard Death Benefit and no riders (1.15% Variable Account charge for all     
subaccounts except those investing in the American Funds Insurance Series, where
it was 1.40%). The second table shows Contracts with the Greater of Annual      
Step-Up or 5% Annual Increase Death Benefit and the Earnings Preservation       
Benefit Rider (2.10% Variable Account charge for all subaccounts except those   
investing in the American Funds Insurance Series, where it was 2.35%. Higher    
charges apply for this death benefit under Contracts issued on and after May 1, 
2003.) All other possible combination of charges for an American Forerunner     
Series Contract appear in the Statement of Additional Information, which is     
available upon request by calling 1-800-356-5015.                               

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ACCUMULATION UNIT VALUES
(FOR AN ACCUMULATION UNIT OUTSTANDING THROUGH THE PERIOD) 

NEW ENGLAND VARIABLE ANNUITY SEPARATE ACCOUNT 
CONDENSED FINANCIAL INFORMATION 

                                                        [Enlarge/Download Table]

                                                                   1.15% VARIABLE ACCOUNT CHARGE         
                                                           ----------------------------------------------
                                                                                             NUMBER OF   
                                                           ACCUMULATION    ACCUMULATION     ACCUMULATION 
                                                           UNIT VALUE AT   UNIT VALUE AT       UNITS     
                                                           BEGINNING OF       END OF       OUTSTANDING AT
                                                              PERIOD          PERIOD       END OF PERIOD 
                                                           -------------   -------------   --------------
                                                                                                         
State Street Research Money Market Subaccount                                                            
  07/02/01* to 12/31/01...................................    2.316819        2.332723         365,811   
  01/01/02 to 12/31/02....................................    2.332723        2.332902       2,821,839   
Lehman Brothers Aggregate Bond Index Subaccount                                                          
  07/02/01* to 12/31/01...................................    1.104444        1.137665         214,731   
  01/01/02 to 12/31/02....................................    1.137665        1.236464       3,314,448   
Salomon Brothers Strategic Bond Opportunities Subaccount                                                 
  07/02/01* to 12/31/01...................................    1.578946        1.617494         180,096   
  01/01/02 to 12/31/02....................................    1.617494        1.748711       1,639,255   
Salomon Brothers U.S. Government Subaccount                                                              
  07/02/01* to 12/31/01...................................    1.458588        1.504292         871,165   
  01/01/02 to 12/31/02....................................    1.504292        1.600461       4,380,584   
State Street Research Bond Income Subaccount                                                             
  07/02/01* to 12/31/01...................................    3.967687        4.116171         163,045   
  01/01/02 to 12/31/02....................................    4.116171        4.401486       1,804,114   
Balanced Subaccount                                                                                      
  07/02/01* to 12/31/01...................................    1.524385        1.498780          35,048   
  01/01/02 to 12/31/02....................................    1.498780        1.278295       1,327,453   
Alger Equity Growth Subaccount                                                                           
  07/02/01* to 12/31/01...................................    3.039302        2.779486         273,278   
  01/01/02 to 12/31/02....................................    2.779486        1.834415       2,050,719   
Davis Venture Value Subaccount                                                                           
07/02/01* to 12/31/01.....................................    2.834665        2.692728         574,764   
  01/01/02 to 12/31/02....................................    2.692728        2.221363       4,781,789   
FI Structured Equity Subaccount                                                                          
  07/02/01* to 12/31/01...................................    2.652774        2.411373          98,150   
  01/01/02 to 12/31/02....................................    2.411373        1.917459         342,085   
Harris Oakmark Large Cap Value Subaccount                                                                
  05/01/02** to 12/31/02..................................    1.194373        0.981276       1,013,132   
MetLife Stock Index Subaccount                                                                           
  07/02/01* to 12/31/01...................................    3.893357        3.611292         114,642   
  01/01/02 to 12/31/02....................................    3.611292        2.766136       1,416,238   
MFS Investors Trust Subaccount                                                                           
  07/02/01* to 12/31/01...................................    0.899677        0.835084         110,905   
  01/01/02 to 12/31/02....................................    0.835084        0.658436         813,019   
MFS Research Managers Subaccount                                                                         
  07/02/01* to 12/31/01...................................    0.981512        0.881920          14,318   
  01/01/02 to 12/31/02....................................    0.881920        0.660796         488,204   
Met/Putnam Voyager Subaccount                                                                            
  07/02/01* to 12/31/01...................................    0.576172        0.494393         357,289   
  01/01/02 to 12/31/02....................................    0.494393        0.347151       1,678,334   
State Street Research Investment Trust Subaccount                                                        
  07/02/01* to 12/31/01...................................    7.405651        6.772549           9,147   
  01/01/02 to 12/31/02....................................    6.772549        4.935403         174,161   

                                                        [Enlarge/Download Table]
                                                                                                          
----------------------------------------------------------------------------------------------------------
 * Date on which the Contract first became available.                                                     
** Date on which the Subaccount first became available.                                                   

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                                                                   1.15% VARIABLE ACCOUNT CHARGE         
                                                           ----------------------------------------------
                                                                                             NUMBER OF   
                                                           ACCUMULATION    ACCUMULATION     ACCUMULATION 
                                                           UNIT VALUE AT   UNIT VALUE AT       UNITS     
                                                           BEGINNING OF       END OF       OUTSTANDING AT
                                                              PERIOD          PERIOD       END OF PERIOD 
                                                           -------------   -------------   --------------
                                                                                                         
State Street Research Large Cap Value Subaccount                                                         
  05/01/02** to 12/31/02..................................    1.000000        0.793737         375,552   
FI Mid Cap Opportunities Subaccount                                                                      
  05/01/02** to 12/31/02..................................    1.000000        0.811723         318,975   
Harris Oakmark Focused Value Subaccount                                                                  
  07/02/01* to 12/31/01...................................    2.560091        2.685555         481,964   
  01/01/02 to 12/31/02....................................    2.685555        2.416292       4,907,449   
Janus Mid Cap Subaccount                                                                                 
  07/02/01* to 12/31/01...................................    1.899424        1.567463         164,995   
  01/01/02 to 12/31/02....................................    1.567463        1.097472         607,378   
MetLife Mid Cap Stock Index Subaccount                                                                   
  07/02/01* to 12/31/01...................................    1.053577        1.033666         118,901   
  01/01/02 to 12/31/02....................................    1.033666        0.867457       1,826,447   
Neuberger Berman Partners Mid Cap Value Subaccount                                                       
  07/02/01* to 12/31/01...................................    1.561179        1.512601          63,321   
  01/01/02 to 12/31/02....................................    1.512601        1.347074         805,768   
Franklin Templeton Small Cap Growth Subaccount                                                           
  07/02/01* to 12/31/01...................................    0.954129        0.881183         178,826   
  01/01/02 to 12/31/02....................................    0.881183        0.626828       1,795,413   
Loomis Sayles Small Cap Subaccount                                                                       
  07/02/01* to 12/31/01...................................    2.417476        2.290415         145,572   
  01/01/02 to 12/31/02....................................    2.290415        1.774181       1,198,186   
Russell 2000 Index Subaccount                                                                            
  07/02/01* to 12/31/01...................................    1.226300        1.193849         176,064   
  01/01/02 to 12/31/02....................................    1.193849        0.936865       1,652,423   
State Street Research Aurora Subaccount                                                                  
  07/02/01* to 12/31/01...................................    1.432285        1.403202         642,658   
  01/01/02 to 12/31/02....................................    1.403202        1.089106       8,010,482   
Morgan Stanley EAFE Index Subaccount                                                                     
  07/02/01* to 12/31/01...................................    0.950882        0.858220          78,621   
  01/01/02 to 12/31/02....................................    0.858220        0.706207       1,730,884   
Putnam International Stock Subaccount                                                                    
  07/02/01* to 12/31/01...................................    1.286985        1.177236         302,022   
  01/01/02 to 12/31/02....................................    1.177236        0.958676       3,281,364   
Lord Abbett Bond Debenture Subaccount                                                                    
  07/02/01* to 12/31/01...................................    1.380912        1.390395          52,634   
  01/01/02 to 12/31/02....................................    1.390395        1.366616         963,586   
PIMCO Total Return Portfolio Subaccount                                                                  
  07/02/01* to 12/31/01...................................    1.008542        1.056141       1,136,384   
  01/01/02 to 12/31/02....................................    1.056141        1.141098       9,603,432   
Janus Aggressive Growth Subaccount(1)                                                                    
  07/02/01* to 12/31/01...................................    0.952135        0.775990         338,843   
  01/01/02 to 12/31/02....................................    0.775990        0.530690       1,339,061   
MET/AIM Mid Cap Core Equity Subaccount                                                                   
  05/01/02** to 12/31/02..................................    1.141290        0.969561         430,746   
T. Rowe Price Mid-Cap Growth Subaccount                                                                  
  07/02/01* to 12/31/01...................................    0.931854        0.825545          41,122   
  01/01/02 to 12/31/02....................................    0.825545        0.456732       1,655,011   

                                                        [Enlarge/Download Table]
                                                                                                          
----------------------------------------------------------------------------------------------------------
 * Date on which the Contract first became available.                                                     
** Date on which the Subaccount first became available.                                                   

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                                                                   1.15% VARIABLE ACCOUNT CHARGE         
                                                           ----------------------------------------------
                                                                                             NUMBER OF   
                                                           ACCUMULATION    ACCUMULATION     ACCUMULATION 
                                                           UNIT VALUE AT   UNIT VALUE AT       UNITS     
                                                           BEGINNING OF       END OF       OUTSTANDING AT
                                                              PERIOD          PERIOD       END OF PERIOD 
                                                           -------------   -------------   --------------
                                                                                                         
MET/AIM Small Cap Growth Subaccount                                                                      
  05/01/02** to 12/31/02..................................    1.123754        0.849902         651,148   
PIMCO Innovation Subaccount                                                                              
  07/02/01* to 12/31/01...................................    0.758624        0.610737         236,284   
  01/01/02 to 12/31/02....................................    0.610737        0.297460       1,811,806   
Harris Oakmark International Subaccount Class E(2)                                                       
  05/01/02** to 12/31/02..................................    1.061095        0.886493         261,778   
MFS Research International Subaccount                                                                    
  07/02/01* to 12/31/01...................................    0.927492        0.849702          93,021   
  01/01/02 to 12/31/02....................................    0.849702        0.740836       1,816,147   

                                                                   1.40% VARIABLE ACCOUNT CHARGE         
                                                           ----------------------------------------------
American Funds Growth Subaccount                                                                         
  07/02/01* to 12/31/01...................................   12.984914       11.482368          92,536   
  01/01/02 to 12/31/02....................................   11.482368        8.553669       1,339,395   
American Funds Growth -- Income Subaccount                                                               
  07/02/01* to 12/31/01...................................    8.799275        8.540522         110,485   
  01/01/02 to 12/31/02....................................    8.540522        6.876843       1,449,139   
American Funds Global Small Capitalization Subaccount                                                    
  07/02/01* to 12/31/01...................................    1.467879        1.354944         174,008   
  01/01/02 to 12/31/02....................................    1.354944        1.081534       2,084,831   

---------------                                                                 

* Date on which the Contract first became available.                          

** Date on which the Subaccount first became available.                         

(1) On or about April 28, 2003, the Janus Growth Portfolio merged into the Janus
Aggressive Growth Portfolio. Information shown for the Janus Aggressive 
  Growth Portfolio is based on the May 1, 2001 inception of the Janus Growth
Portfolio, and reflects the performance of the Janus Growth Portfolio   
through the date of the merger.                                         

(2) The Harris Oakmark International Portfolio Class E shares are only available
 under Contracts issued prior to May 1, 2003. Contracts issued on or after
   that date will offer Class B shares, which impose a 12b-1 distribution fee.

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ACCUMULATION UNIT VALUES
(FOR AN ACCUMULATION UNIT OUTSTANDING THROUGH THE PERIOD) 

NEW ENGLAND VARIABLE ANNUITY SEPARATE ACCOUNT 
CONDENSED FINANCIAL INFORMATION 

                                                        [Enlarge/Download Table]

                                                                   2.10% VARIABLE ACCOUNT CHARGE         
                                                           ----------------------------------------------
                                                                                             NUMBER OF   
                                                           ACCUMULATION    ACCUMULATION     ACCUMULATION 
                                                           UNIT VALUE AT   UNIT VALUE AT       UNITS     
                                                           BEGINNING OF       END OF       OUTSTANDING AT
                                                              PERIOD          PERIOD       END OF PERIOD 
                                                           -------------   -------------   --------------
                                                                                                         
State Street Research Money Market Subaccount                                                            
  07/02/01* to 12/31/01...................................    1.955288        1.959407          25,825   
  01/01/02 to 12/31/02....................................    1.959407        1.941029         398,104   
Lehman Brothers Aggregate Bond Index Subaccount                                                          
  07/02/01* to 12/31/01...................................    1.077024        1.104180           2,711   
  01/01/02 to 12/31/02....................................    1.104180        1.188729          71,715   
Salomon Brothers Strategic Bond Opportunities Subaccount                                                 
  07/02/01* to 12/31/01...................................    1.481967        1.510974          29,557   
  01/01/02 to 12/31/02....................................    1.510974        1.618109         117,768   
Salomon Brothers U.S. Government Subaccount                                                              
  07/02/01* to 12/31/01...................................    1.368998        1.405225          28,861   
  01/01/02 to 12/31/02....................................    1.405225        1.480929         488,913   
State Street Research Bond Income Subaccount                                                             
  07/02/01* to 12/31/01...................................    3.348569        3.457474           3,908   
  01/01/02 to 12/31/02....................................    3.457474        3.662183         165,303   
Balanced Subaccount                                                                                      
  07/02/01* to 12/31/01...................................    1.430755        1.400069           7,944   
  01/01/02 to 12/31/02....................................    1.400069        1.182801          44,339   
Alger Equity Growth Subaccount                                                                           
  07/02/01* to 12/31/01...................................    2.852660        2.596441           9,993   
  01/01/02 to 12/31/02....................................    2.596441        1.697366          88,407   
Davis Venture Value Subaccount                                                                           
  07/02/01* to 12/31/01...................................    2.660627        2.515437          11,201   
  01/01/02 to 12/31/02....................................    2.515437        2.055460          60,331   
FI Structured Equity Subaccount                                                                          
  07/02/01* to 12/31/01...................................    2.454584        2.220652          36,187   
  01/01/02 to 12/31/02....................................    2.220652        1.749079          56,862   
Harris Oakmark Large Cap Value Subaccount                                                                
  05/01/02** to 12/31/02..................................    1.155572        0.943378         130,205   
MetLife Stock Index Subaccount                                                                           
  07/02/01* to 12/31/01...................................    3.501337        3.232291           4,710   
  01/01/02 to 12/31/02....................................    3.232291        2.452378          63,080   
MFS Investors Trust Subaccount                                                                           
  07/02/01* to 12/31/01...................................    0.881272        0.814128              --   
  01/01/02 to 12/31/02....................................    0.814128        0.635833             113   
MFS Research Managers Subaccount                                                                         
  07/02/01* to 12/31/01...................................    0.961428        0.859781           7,569   
  01/01/02 to 12/31/02....................................    0.859781        0.638105           7,673   

                                                        [Enlarge/Download Table]
                                                                                                          
----------------------------------------------------------------------------------------------------------
   * Date on which the Contract first became available.                                                   
  ** Date on which the Subaccount first became available.                                                 

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                                                                   2.10% VARIABLE ACCOUNT CHARGE         
                                                           ----------------------------------------------
                                                                                             NUMBER OF   
                                                           ACCUMULATION    ACCUMULATION     ACCUMULATION 
                                                           UNIT VALUE AT   UNIT VALUE AT       UNITS     
                                                           BEGINNING OF       END OF       OUTSTANDING AT
                                                              PERIOD          PERIOD       END OF PERIOD 
                                                           -------------   -------------   --------------
                                                                                                         
Met/Putnam Voyager Subaccount                                                                            
  07/02/01* to 12/31/01...................................    0.569784        0.486594              --   
  01/01/02 to 12/31/02....................................    0.486594        0.338437          34,493   
State Street Research Investment Trust Subaccount                                                        
  07/02/01* to 12/31/01...................................    6.239924        5.679428           1,315   
  01/01/02 to 12/31/02....................................    5.679428        4.099590          16,995   
State Street Research Large Cap Value Subaccount                                                         
  05/01/02** to 12/31/02..................................    1.000000        0.788700             100   
FI Mid Cap Opportunities Subaccount                                                                      
  05/01/02** to 12/31/02..................................    1.000000        0.806573          50,629   
Harris Oakmark Focused Value Subaccount                                                                  
  07/02/01* to 12/31/01...................................    2.368786        2.473127          33,396   
  01/01/02 to 12/31/02....................................    2.473127        2.204099         331,747   
Janus Mid Cap Subaccount                                                                                 
  07/02/01* to 12/31/01...................................    1.822773        1.497072           2,970   
  01/01/02 to 12/31/02....................................    1.497072        1.038253              55   
MetLife Mid Cap Stock Index Subaccount                                                                   
  07/02/01* to 12/31/01...................................    1.043692        1.019119              --   
  01/01/02 to 12/31/02....................................    1.019119        0.847150          16,352   
Neuberger Berman Partners Mid Cap Value Subaccount                                                       
  07/02/01* to 12/31/01...................................    1.522434        1.468079              --   
  01/01/02 to 12/31/02....................................    1.468079        1.295045          19,405   
Franklin Templeton Small Cap Growth Subaccount                                                           
  07/02/01* to 12/31/01...................................    0.952586        0.875591           3,862   
  01/01/02 to 12/31/02....................................    0.875591        0.616948          97,321   
Loomis Sayles Small Cap Subaccount                                                                       
  07/02/01* to 12/31/01...................................    2.258249        2.129423              --   
  01/01/02 to 12/31/02....................................    2.129423        1.633847              44   
Russell 2000 Index Subaccount                                                                            
  07/02/01* to 12/31/01...................................    1.195845        1.158687              --   
  01/01/02 to 12/31/02....................................    1.158687        0.900657          42,371   
State Street Research Aurora Subaccount                                                                  
  07/02/01* to 12/31/01...................................    1.418872        1.383474          49,920   
  01/01/02 to 12/31/02....................................    1.383474        1.063621         483,139   
Morgan Stanley EAFE Index Subaccount                                                                     
  07/02/01* to 12/31/01...................................    0.927270        0.832943              --   
  01/01/02 to 12/31/02....................................    0.832943        0.678915          18,924   
Putnam International Stock Subaccount                                                                    
  07/02/01* to 12/31/01...................................    1.168365        1.063666              --   
  01/01/02 to 12/31/02....................................    1.063666        0.857986          37,972   
Lord Abbett Bond Debenture Subaccount                                                                    
  07/02/01* to 12/31/01...................................    1.314712        1.317483              --   
  01/01/02 to 12/31/02....................................    1.317483        1.282707          49,603   

                                                        [Enlarge/Download Table]
                                                                                                          
----------------------------------------------------------------------------------------------------------
   * Date on which the Contract first became available.                                                   
  ** Date on which the Subaccount first became available.                                                 

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                                                                   2.10% VARIABLE ACCOUNT CHARGE         
                                                           ----------------------------------------------
                                                                                             NUMBER OF   
                                                           ACCUMULATION    ACCUMULATION     ACCUMULATION 
                                                           UNIT VALUE AT   UNIT VALUE AT       UNITS     
                                                           BEGINNING OF       END OF       OUTSTANDING AT
                                                              PERIOD          PERIOD       END OF PERIOD 
                                                           -------------   -------------   --------------
                                                                                                         
PIMCO Total Return Portfolio Subaccount                                                                  
  07/02/01* to 12/31/01...................................    1.004874        1.046965          24,484   
  01/01/02 to 12/31/02....................................    1.046965        1.120492         339,905   
Janus Aggressive Growth Subaccount(1)                                                                    
  07/02/01* to 12/31/01...................................    0.950596        0.771061          54,146   
  01/01/02 to 12/31/02....................................    0.771061        0.522320         139,090   
Met/AIM Mid Cap Core Equity Subaccount                                                                   
  05/01/02** to 12/31/02..................................    1.135249        0.958313              88   
T. Rowe Price Mid-Cap Growth Subaccount                                                                  
  07/02/01* to 12/31/01...................................    0.928441        0.818624              --   
  01/01/02 to 12/31/02....................................    0.818624        0.448606             108   
Met/AIM Small Cap Growth Subaccount                                                                      
  05/01/02** to 12/31/02..................................    1.117804        0.840036              89   
PIMCO Innovation Subaccount                                                                              
  07/02/01* to 12/31/01...................................    0.755846        0.605611           8,411   
  01/01/02 to 12/31/02....................................    0.605611        0.292164         103,536   
Harris Oakmark International Subaccount Class E(2)                                                       
  05/01/02** to 12/31/02..................................    1.055473        0.876205              95   
MFS Research International Subaccount                                                                    
  07/02/01* to 12/31/01...................................    0.924114        0.842595              --   
  01/01/02 to 12/31/02....................................    0.842595        0.727687          63,480   

                                                                   2.35% VARIABLE ACCOUNT CHARGE         
                                                           ----------------------------------------------
                                                                                                         
American Funds Growth Subaccount                                                                         
  07/02/01* to 12/31/01...................................   11.005967        9.686230              --   
  01/01/02 to 12/31/02....................................    9.686230        7.147287          12,640   
American Funds Growth -- Income Subaccount                                                               
  07/02/01* to 12/31/01...................................    7.458425        7.204822           6,415   
  01/01/02 to 12/31/02....................................    7.204822        5.746394          80,731   
American Funds Global Small Capitalization Subaccount                                                    
  07/02/01* to 12/31/01...................................    1.424257        1.308440              --   
  01/01/02 to 12/31/02....................................    1.308440        1.034523          86,675   

---------------                                                                 
* Date on which the Contract first became available.                          
** Date on which the Subaccount first became available.                         

(1) On or about April 28, 2003, the Janus Growth Portfolio merged into the Janus
Aggressive Growth Portfolio. Information shown for the Janus Aggressive 
  Growth Portfolio is based on the May 1, 2001 inception of the Janus Growth
Portfolio, and reflects the performance of the Janus Growth Portfolio   
through the date of the merger.                                         

(2) The Harris Oakmark International Portfolio Class E shares are only available
 under Contracts issued prior to May 1, 2003. Contracts issued on or after
   that date will offer Class B shares, which impose a 12b-1 distribution fee.

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APPENDIX A

CONSUMER TIPS 

DOLLAR COST AVERAGING                                                           

Dollar cost averaging allows you to take advantage of long-term stock 
market results. It does not guarantee a profit or protect against a loss. If you
follow a program of dollar cost averaging on a long-term basis and the stock    
fund selected performs at least as well as the S&P 500 has historically, it is  
likely although not guaranteed that the price at which shares are withdrawn will
be higher than the average cost per share.                                      

     Under dollar cost averaging you invest the same amount of money in the same
professionally managed fund at regular intervals over a long period of time.    
Dollar cost averaging keeps you from investing too much when the price of shares
is high and too little when the price is low. When the price of shares is low,  
the money invested buys more shares. When it is high, the money invested buys   
fewer shares. If you have the ability and desire to maintain this program over a
long period of time (for example, 20 years), and the stock fund chosen follows  
the historical upward market trends, the price at which the shares are sold     
should be higher than their average cost. The price could be lower, however, if 
the fund chosen does not follow these historical trends.                        

If you are contemplating the use of dollar cost averaging, you should 
consider your ability to continue the on-going purchases in order to take       
advantage of periods of low price levels.                                       

DIVERSIFICATION                                                                 

   Diversifying investment choices can enhance returns, by providing a wider
opportunity for safe returns, and reduce risks, by spreading the chance of loss.
Holding a single investment requires a safe return because a loss may risk the  
entire investment. By diversifying, on the other hand, you can more safely take 
a chance that some investments will under-perform and that others will          
over-perform. Thus you can potentially earn a better-than-average rate of return
on a diversified portfolio than on a single safe investment. This is because,   
although some of a diversified investment may be totally lost, some of the      
investment may perform at above-average rates that more than compensate for the 
loss.                                                                           

MISCELLANEOUS                                                                   

                                                        [Enlarge/Download Table]
                                                                                              
Toll-free telephone service:  --  A recording of daily unit values is available by calling    
                                  1-800-333-2501.                                             

                              --  Fund transfers, address changes and changes of future       
                                  purchase payment allocations can be made by calling         
                                  1-800-435-4117.                                             

Written Communications:       --  All communications and inquiries regarding address changes, 
                                  premium payments, billing, fund transfers, withdrawals,     
                                  maturities and any other processing matters relating to your
                                  Contract should be directed to:                             

                                    New England Life Insurance Company                        
                                    c/o Annuity Administrative Office                         
                                    P.O. Box 14594                                            
                                    Des Moines, IA 50306-3594                                 
                                    fax: (515) 457-4301                                       

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APPENDIX B

WITHDRAWAL CHARGE 

    The following example illustrates how the Withdrawal Charge would apply if
the commuted value of amounts that have been placed under certain payment       
options is later withdrawn. As described in the prospectus in the section       
"Withdrawal Charge," no Withdrawal Charge will apply for any Class of the       
Contract if at any time more than 30 days from the time we issued your Contract 
you apply the proceeds to a variable or fixed payment option involving a life   
contingency or, for a minimum specified period of 15 years, to either the       
Variable Income for a Specified Number of Years Option or the Variable Income   
Payments to Age 100 Option, or a comparable fixed option. However, if you later 
withdraw the commuted value of amounts placed under the variable payment        
options, we will deduct from the amount you receive a portion of the Withdrawal 
Charge for your Contract Class that was waived. Amounts applied to a fixed      
payment option may not be commuted. We base the waiver on the ratio of: (1) the 
number of whole months remaining on the date of withdrawal until the date when  
the Withdrawal Charge for your Contract Class would expire, to (2) the number of
whole months that were remaining when you applied the proceeds to the option,   
until the date when the Withdrawal Charge for your Contract Class would expire. 

As an example, assume that you apply $100,000 of Contract Value on a  
Standard Class Contract (net of any premium tax charge and Contract             
Administrative fee to the Variable Income for a Specified Number of Years Option
for a 20 year period. Assume further that the proceeds are derived from a       
$30,000 purchase payment made ten years ago, a $30,000 purchase payment made    
exactly two years ago, and investment earnings, and that the Withdrawal Charge  
waived when you applied the proceeds to the payment option was $1,620. If the   
Payee surrenders the commuted value of the proceeds under option six months     
later, the Withdrawal Charge would be $1,458 (representing the $1,620 waived at 
annuitization multiplied by 54/60, where 54 is the number of whole months       
currently remaining until the Withdrawal Charge would expire, and 60 is the     
number of whole months that remained at the time of annuitization until the     
Withdrawal Charge would expire).                                                

     We calculate this amount in the same manner for each Class of Contract that
imposes a Withdrawal Charge, using the Withdrawal Charge percentage applicable  
to that Class.                                                                  

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APPENDIX C

PREMIUM TAX 

     Premium tax rates are subject to change. At present we pay premium taxes in
the following jurisdictions at the rates shown.                                 

                                                                [Download Table]

                CONTRACTS USED WITH TAX                       
JURISDICTION   QUALIFIED RETIREMENT PLANS  ALL OTHER CONTRACTS
------------   --------------------------  -------------------
                                                              
California                0.50%*                  2.35%       
Maine                       --                    2.00%       
Nevada                      --                    3.50%       
Puerto Rico               1.00%                   1.00%       
South Dakota                --                    1.25%       
West Virginia             1.00%                   1.00%       
Wyoming                     --                    1.00%       

---------------                                                                 

* Contracts sold to sec.408(a) IRA Trusts are taxed at 2.35%.                   

See "Premium Tax Charges" in the prospectus for more information about how      
premium taxes affect your Contract.                                             

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APPENDIX D

EXCHANGED CONTRACTS 

    We offer an exchange program under which you may exchange certain existing
annuity contracts issued by New England Life Insurance Company (NELICO) and its 
affiliates for the Standard Class of the Contract (a "new Contract"). An        
existing contract is eligible for this exchange if a withdrawal from, or        
surrender of, the contract would not trigger a contingent deferred sales charge.
The contract value of the new Contract attributable to the exchanged assets will
not be subject to any withdrawal charge or be eligible for enhanced dollar cost 
averaging. Any additional purchase payments contributed to the new Contract will
be subject to all fees and charges, including the withdrawal charge. Only       
additions of at least $10,000 will be eligible for enhanced dollar cost         
averaging.                                                                      

    You may exchange your existing NELICO or affiliated company contract for a
new Contract if (1) your age does not exceed the maximum issue age for the      
Standard Class; (2) the contract value of the existing contract (along with any 
purchase payments submitted with the exchange application) is at least equal to 
the minimum purchase payment for the Standard Class; and (3) you meet our       
underwriting standards (unless we waive them). As of the date you make the      
exchange, we will credit the contract value of the existing contract as the     
initial purchase payment to the new Contract.                                   

If you are contemplating an exchange, you should compare all charges  
(including investment advisory fees) deducted under your existing contract and  
under the new Contract, as well as the investment options offered under your    
existing contract and the new Contract. Your financial representative can help  
you decide if exchanging your existing contract would be to your advantage.     

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TABLE OF CONTENTS 
OF
STATEMENT OF ADDITIONAL INFORMATION 

                                                                [Download Table]

                                                                 PAGE 
                                                                ------
                                                                      
THE COMPANY.................................................      II-3
SERVICES RELATING TO THE VARIABLE ACCOUNT...................      II-3
PERFORMANCE COMPARISONS.....................................      II-3
INVESTMENT ADVICE...........................................      II-3
CALCULATION OF PERFORMANCE DATA.............................      II-4
CALCULATION OF YIELDS.......................................     II-62
NET INVESTMENT FACTOR.......................................     II-64
ANNUITY PAYMENTS............................................     II-64
HYPOTHETICAL ILLUSTRATIONS OF ANNUITY PAYOUTS...............     II-65
HISTORICAL ILLUSTRATIONS OF ANNUITY PAYOUTS.................     II-66
ACCUMULATION UNIT VALUES (Condensed Financial                         
  Information)..............................................     II-67
THE FIXED ACCOUNT...........................................    II-100
TAX STATUS OF THE CONTRACTS.................................    II-100
EXPERTS.....................................................    II-101
LEGAL MATTERS...............................................    II-101
APPENDIX A..................................................    II-102
FINANCIAL STATEMENTS........................................       F-1

     If you would like a copy of the Statement of Additional Information, please
complete the request form below and mail to:                                    

New England Securities Corporation                                    
501 Boylston Street                                                   
Boston, Massachusetts 02116                                           

Please send a copy of the Statement of Additional Information for New 
England Variable Annuity Separate Account (American Forerunner Series) to:      

--------------------------------------------------------------------------------
Name                                                                            

--------------------------------------------------------------------------------
Street                                                                          

--------------------------------------------------------------------------------
City                                  State                                  Zip

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501 Boylston Street                                                             
Boston, Massachusetts 02116-3700                                                
e-mail: AskUs@nef.com                                                           
internet: http://www.nef.com                                                    

--------------------------------------------------------------------------------

EQUAL OPPORTUNITY EMPLOYER                                                      

New England Financial is the service mark for NELICO, Boston, MA, and related   
companies.                                                                      

VA-406-03                                                                       

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NEW ENGLAND VARIABLE ANNUITY SEPARATE ACCOUNT 

AMERICAN FORERUNNER SERIES
INDIVIDUAL VARIABLE ANNUITY CONTRACTS 
ISSUED BY NEW ENGLAND LIFE INSURANCE COMPANY

STATEMENT OF ADDITIONAL INFORMATION 
(PART B)

MAY 1, 2003 

This Statement of Additional Information is not a prospectus. This    
Statement of Additional Information relates to the Prospectus dated May 1, 2003 
and should be read in conjunction therewith. A copy of the Prospectus may be    
obtained by writing to New England Securities Corporation ("New England         
Securities") 501 Boylston Street, Boston, Massachusetts 02116.                  

VA-407-03                                                                       

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TABLE OF CONTENTS 

                                                                [Download Table]

                                                               PAGE 
                                                              ------
                                                                    
THE COMPANY.................................................  II-3  
SERVICES RELATING TO THE VARIABLE ACCOUNT...................  II-3  
PERFORMANCE COMPARISONS.....................................  II-3  
INVESTMENT ADVICE...........................................  II-3  
CALCULATION OF PERFORMANCE DATA.............................  II-4  
CALCULATION OF YIELDS.......................................  II-62 
NET INVESTMENT FACTOR.......................................  II-64 
ANNUITY PAYMENTS............................................  II-64 
HYPOTHETICAL ILLUSTRATIONS OF ANNUITY PAYOUTS...............  II-65 
HISTORICAL ILLUSTRATIONS OF ANNUITY PAYOUTS.................  II-66 
ACCUMULATION UNIT VALUES (Condensed Financial                       
  Information)..............................................  II-67 
THE FIXED ACCOUNT...........................................  II-100
TAX STATUS OF THE CONTRACTS.................................  II-100
EXPERTS.....................................................  II-101
LEGAL MATTERS...............................................  II-101
APPENDIX A..................................................  II-102
FINANCIAL STATEMENTS........................................  F-1   

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THE COMPANY 

New England Life Insurance Company ("The Company" or "NELICO") is an  
indirect, wholly-owned subsidiary of Metropolitan Life Insurance Company        
("MetLife"). MetLife is a wholly-owned subsidiary of MetLife, Inc., a publicly  
traded company.                                                                 

SERVICES RELATING TO THE VARIABLE ACCOUNT 

 The Company maintains the books and records of the Variable Account and
provides issuance and other administrative services for the Contracts.          

  Auditors.  Deloitte & Touche LLP, located at 201 East Kennedy Boulevard,
Tampa, Florida 33602, conducts an annual audit of the Variable Account's        
financial statements.                                                           

  Principal Underwriter.  New England Securities Corporation ("New England
Securities"), an indirect subsidiary of the Company, serves as principal        
underwriter for the Variable Account pursuant to a distribution agreement with  
the Company. The Contracts are offered continuously and may be sold by          
registered representatives of broker-dealers that have selling agreements with  
New England Securities as well as by the Company's life insurance agents and    
insurance brokers who are registered representatives of New England Securities. 
The Company pays commissions, none of which are retained by New England         
Securities, in connection with sales of the Contracts. For the years ended      
December 31, 2000, 2001 and 2002, the Company paid commissions in the amount of 
$15,592,947, $16,986,480 and $25,188,719, respectively.                         

PERFORMANCE COMPARISONS 

 Articles and releases, developed by the Company, the Eligible Funds (as
defined in the Prospectus) and other parties, about the Variable Account or the 
Eligible Funds regarding performance, rankings, statistics and analyses of the  
Account's, the individual Eligible Funds' and fund groups' asset levels and     
sales volumes, statistics and analyses of industry sales volumes and asset      
levels, and other characteristics may appear in publications, including, but not
limited to, those publications listed in Appendix A to this Statement of        
Additional Information. In particular, some or all of these publications may    
publish their own rankings or performance reviews including the Account or the  
Eligible Funds. References to or reprints of such articles may be used in       
promotional literature. Such literature may refer to personnel of the advisers  
and/or subadvisers who have portfolio management responsibility, and their      
investment style. The references may allude to or include excerpts from articles
appearing in the media.                                                         

 The advertising and sales literature for the Contracts and the Variable
Account may refer to historical, current and prospective economic trends and may
include historical and current performance and total returns of investment      
alternatives.                                                                   

     In addition, sales literature may be published concerning topics of general
investor interest for the benefit of registered representatives and prospective 
Contract Owners. These materials may include, but are not limited to,           
discussions of college planning, retirement planning, reasons for investing and 
historical examples of the investment performance of various classes of         
securities, securities markets and indices.                                     

INVESTMENT ADVICE 

   The Variable Account invests in the Portfolios of the Metropolitan Series
Fund, Inc. ("Metropolitan Fund"), the Met Investors Series Trust, and other     
unaffiliated open-end management investment companies that serve as investment  
vehicles for variable life and variable annuity separate accounts. MetLife      
Advisers, LLC ("MetLife Advisers") and Met Investors Advisory LLC ("Met         
Investors Advisory"), as the Advisers to the Metropolitan Fund and the Met      
Investors Series Trust, respectively, may, from time to time, replace the       
subadviser of a Portfolio with a new subadviser. A number of subadviser changes 
have been made with respect to the Portfolios in which the Variable Account     
invests.                                                                        

     MetLife Advisers (formerly known as New England Investment Management, Inc.
which was formerly known as TNE Advisers, Inc.) became the investment Adviser to
the Portfolios of the Metropolitan Fund on May 1, 2001. Prior to May 1, 2001,   
Metropolitan Life Insurance Company was the investment Adviser for all          
Portfolios of the Metropolitan Fund.                                            

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   MetLife Advisers was also the investment Adviser to each of the Series of
the New England Zenith Fund ("Zenith Fund") until May 1, 2003, the date on which
each Series became a Portfolio of the Metropolitan Fund. MetLife Advisers had   
been the Adviser to all Series of the Zenith Fund since 1994, with the following
exceptions: in the case of the Back Bay Advisors Money Market Series (currently 
known as the State Street Research Money Market Portfolio), the Back Bay        
Advisors Bond Income Series (currently known as the State Street Research Bond  
Income Portfolio), the Westpeak Value Growth Series (formerly, the Westpeak     
Growth and Income Series and currently known as the FI Structured Equity        
Portfolio), the Loomis Sayles Small Cap Series and the Loomis Sayles Avanti     
Growth Series (currently known as the Harris Oakmark Focused Value Portfolio),  
MetLife Advisers became the Adviser on May 1, 1995.                             

Met Investors Advisory (formerly known as Met Investors Advisory Corp.
which was formerly known as Security First Investment Management) became the    
investment Manager (i.e., the investment Adviser) for the Portfolios of the Met 
Investors Series Trust on February 12, 2001.                                    

     The following is the subadviser history of the Metropolitan Fund Portfolios
that, prior to May 1, 2003, were Series of the Zenith Fund:                     

The subadviser to the FI Structured Equity Portfolio (formerly, the   
Westpeak Growth and Income Series which was formerly the Westpeak Value Growth  
Series) was Westpeak Investment Advisors, L.P. until May 1, 2002, when Fidelity 
Management & Research Company became the subadviser. The subadviser to the State
Street Research Money Market Portfolio (formerly, the Back Bay Advisors Money   
Market Series) and the State Street Research Bond Income Portfolio (formerly,   
the Back Bay Advisors Bond Income Series) was Back Bay Advisors, L.P. until July
1, 2001, when State Street Research & Management Company became the subadviser. 
The subadviser to the Harris Oakmark Focused Value Portfolio (formerly, the     
Harris Oakmark Mid Cap Value Series which was formerly the Goldman Sachs Midcap 
Value Series which was formerly the Loomis Sayles Avanti Growth Series) was     
Loomis, Sayles and Company, L.P. until May 1, 1998, when Goldman Sachs Asset    
Management, a separate operating division of Goldman Sachs & Co., became the    
subadviser; Harris Associates L.P. became the subadviser on May 1, 2000. The    
subadviser to the Balanced Portfolio (formerly, the Loomis Sayles Balanced      
Series) was Loomis, Sayles and Company, L.P. until May 1, 2000, when Wellington 
Management Company, LLP became the subadviser.                                  

    The following is the subadviser history of the remaining Metropolitan Fund
Portfolios:                                                                     

 Metropolitan Life Insurance Company became the subadviser to the Lehman
Brothers(R) Aggregate Bond Index Portfolio, the MetLife Stock Index Portfolio,  
the MetLife Mid Cap Stock Index Portfolio, the Morgan Stanley EAFE(R) Index     
Portfolio and the Russell 2000(R) Index Portfolio on May 1, 2001. The Putnam    
International Stock Portfolio's (formerly, the Santander International Stock    
Portfolio) subadvisor was Santander Global Advisors, Inc. until January 24,     
2000, when Putnam Investment Management, LLC became the subadviser.             

  The following is the Adviser (i.e., the "subadviser") history of the Met
Investors Series Trust:                                                         

     The subadviser to the T. Rowe Price Mid-Cap Growth Portfolio (formerly, the
MFS Mid Cap Growth Portfolio) was Massachusetts Financial Services Company until
January 1, 2003, when T. Rowe Price Associates, Inc. became the subadviser. The 
subadviser to the Harris Oakmark International Portfolio (formerly, State Street
Research Concentrated International Portfolio) was State Street Research &      
Management Company until December 31, 2002 and Harris Associates L.P. became the
subadviser effective January 1, 2003.                                           

CALCULATION OF PERFORMANCE DATA 

AVERAGE ANNUAL TOTAL RETURN 

   The tables below illustrate hypothetical average annual total returns for
each subaccount on a Class-specific basis for the periods shown, based on the   
actual investment experience of the subaccounts, the Metropolitan Series Fund   
Inc., the Met Investors Series Trust and the American Funds Insurance Series    
during those periods. The tables do not represent what may happen in the future.

 The Variable Account was not established until July 1994. The Contracts
were not available before June 1, 2001.                                         

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   The following Portfolios of the Metropolitan Fund commenced operations as
series of the New England Zenith Fund as follows: State Street Research Money   
Market Portfolio and State Street Research Bond Income Portfolio, August 26,    
1983; Salomon Brothers Strategic Bond Opportunities Portfolio, Salomon Brothers 
U.S. Government Portfolio, Balanced Portfolio, Alger Equity Growth Portfolio and
Davis Venture Value Portfolio, October 31, 1994; Harris Oakmark Focused Value   
Portfolio, April 30, 1993; Loomis Sayles Small Cap Portfolio, May 2, 1994; MFS  
Investors Trust Portfolio and MFS Research Managers Portfolio, April 30, 1999;  
FI Structured Equity Portfolio, April 30, 1993; and FI Mid Cap Opportunities    
Portfolio, May 1, 2002.                                                         

   The following Portfolios of the Metropolitan Fund commenced operations as
follows: Lehman Brothers(R) Aggregate Bond Index and Harris Oakmark Large Cap   
Value Portfolios, November 9, 1998; Janus Mid Cap Portfolio, March 3, 1997;     
MetLife Stock Index Portfolio, May 1, 1990; Neuberger Berman Partners Mid Cap   
Value Portfolio, November 9, 1998; Met/Putnam Voyager Portfolio, May 1, 2000;   
Morgan Stanley EAFE(R) Index Portfolio, November 9, 1998; Putnam International  
Stock Portfolio, May 1, 1991; Russell 2000(R) Index Portfolio, November 9, 1998;
State Street Research Investment Trust Portfolio, June 24, 1983 (performance    
figures for the period from June 24, 1983 through September 6, 1994 are based on
month-end Net Asset Values, as daily Net Asset Value information is not         
available); MetLife Mid Cap Stock Index and State Street Research Aurora        
Portfolios, July 5, 2000; Franklin Templeton Small Cap Growth Portfolio, May 1, 
2001; and State Street Research Large Cap Value Portfolio, May 1, 2002.         

  The following Portfolios of Met Investors Series commenced operations as
follows: Lord Abbett Bond Debenture Portfolio, May 1, 1996; PIMCO Total Return  
Portfolio, PIMCO Innovation Portfolio, T. Rowe Price Mid-Cap Growth Portfolio   
(formerly, MFS Mid Cap Growth Portfolio) and MFS Research International         
Portfolio, February 12, 2001; and Met/AIM Mid Cap Core Equity Portfolio, Met/AIM
Small Cap Growth Portfolio and Harris Oakmark International Portfolio (formerly,
State Street Research Concentrated International Portfolio), October 9, 2001. On
or about April 28, 2003, the Janus Growth Portfolio of the Metropolitan Fund    
merged into the Janus Aggressive Growth Portfolio of the Met Investors Series.  
The Portfolio inception date used in the following examples of Fund Total Return
Adjusted for Contract Charges is that of the Janus Growth Portfolio, May 1,     
2001.                                                                           

The following Funds of the American Funds Insurance Series ("American 
Funds") commenced operations as follows: American Funds Growth Fund and American
Funds Growth-Income Fund, February 8, 1984; and American Funds Global Small     
Capitalization Fund, April 30, 1998.                                            

   We base calculations of average annual total return for each Class on the
assumption that a single investment of $1,000 was made at the beginning of each 
period shown. The figures do not reflect the effect of any premium tax charge,  
which applies in certain states, and which would reduce the results shown.      

The average annual total return is related to withdrawal value and is 
calculated as follows for each Class. The amount of the assumed $1,000 purchase 
payment for a Contract issued at the beginning of the period is divided by the  
Accumulation Unit Value of each subaccount for the relevant Class at the        
beginning of the period shown to arrive at the number of Accumulation Units     
purchased. The Accumulation Unit Values reflect the applicable Asset-Based      
Insurance Charge for each Class, assuming the Standard Death Benefit: 1.25% for 
the Standard Class; 1.60% for the B Plus Class; 1.60% for the C Class; 1.50% for
the L Class; and 1.15% for the P Class. (These charges increase by 0.25% for    
subaccounts investing in the American Funds Insurance Series.) The total number 
of units held under the Contract at the beginning of the last Contract Year     
covered by the period shown is multiplied by the Accumulation Unit Value on     
December 31, 2002 to arrive at the Contract Value on that date. The Contract    
Value is also reduced for the GMIB rider charge which is assessed as .50% per   
year of the GMIB Income Base. This Contract Value is then reduced by the        
applicable Withdrawal Charge and by a factor that reflects the $30 Contract     
Administrative Fee which would be deducted upon withdrawal on December 31, 2002 
to arrive at the withdrawal value. The average annual total return is the annual
compounded rate of return which would produce the withdrawal value on December  
31, 2002. In other words, the average annual total return is the rate which,    
when added to 1, raised to a power reflecting the number of years in the period 
shown, and multiplied by the initial $1,000 investment, yields the withdrawal   
value at the end of the period. The average annual total returns assume that no 
premium tax charge has been deducted.                                           

   The Accumulation Unit Values used for this purpose reflect an average per
unit charge for the $30 Contract Administrative Fee. Based on the actual        
distribution of Contract sizes, we have assumed the average per unit Contract   
Administrative Fee to be: .039% for the Standard Class; .019% for the Bonus     
Class; .011% for the C Class; .018% for the L Class; and .033% for the P Class. 

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   Subaccount average annual total return, which is calculated in accordance
with the Securities and Exchange Commission ("SEC") standardized formula, uses  
the inception date of the subaccount through which the Eligible Fund shown is   
available. Eligible Fund total return adjusted for Contract charges, which is   
non-standard performance, uses the inception date of the Eligible Fund shown,   
and therefore may reflect periods prior to the availability of the corresponding
subaccount under the Contract. For non-standard performance, if there is a      
partial year included in the reporting period, we reflect only a pro rata       
portion of the average per unit Contract Administrative Fee factor for that     
partial year. For non-standard performance, we do not reflect the charge for the
GMIB. THIS INFORMATION DOES NOT INDICATE OR REPRESENT FUTURE PERFORMANCE.       

   Certain portfolios of the Metropolitan Fund and Met Investors Series have
been managed by different investment advisers or investment subadvisers.        
Accordingly, the performance shown below may reflect, for some of the periods   
described, the management of previous advisers or subadvisers. For prior        
advisory and subadvisory history, see "INVESTMENT ADVICE" on page II-3.         

STANDARD CLASS                                                                  
--------------                                                                  

SUBACCOUNT AVERAGE ANNUAL TOTAL RETURN

  For purchase payment allocated to the State Street Research Money Market
Subaccount                                                                      

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................      -7.61%
5 Years.....................................................       1.54%
Since Inception of the Subaccount (4/19/95).................       2.52%

 For purchase payment allocated to the State Street Research Bond Income
Subaccount                                                                      

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................      -0.71%
5 Years.....................................................       3.97%
Since Inception of the Subaccount (4/19/95).................       5.95%

For purchase payment allocated to the Salomon Brothers Strategic Bond 
Opportunities Subaccount                                                        

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................       0.46%
5 Years.....................................................       2.67%
Since Inception of the Subaccount (4/19/95).................       6.40%

For purchase payment allocated to the Salomon Brothers U.S. Government
Subaccount                                                                      

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................      -1.25%
5 Years.....................................................       3.85%
Since Inception of the Subaccount (4/19/95).................       4.96%

For purchase payment allocated to the Balanced Subaccount             

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -21.28%
5 Years.....................................................      -6.11%
Since Inception of the Subaccount (4/19/95).................       1.57%

For purchase payment allocated to the Alger Equity Growth Subaccount  

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -39.20%
5 Years.....................................................      -2.66%
Since Inception of the Subaccount (4/19/95).................       6.19%

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STANDARD CLASS (CONTINUED)                                                      
---------------------------                                                     

For purchase payment allocated to the Davis Venture Value Subaccount  

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -23.88%
5 Years.....................................................      -0.93%
Since Inception of the Subaccount (4/19/95).................       9.18%

For purchase payment allocated to the Harris Oakmark Focused Value    
Subaccount                                                                      

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -16.93%
5 Years.....................................................       3.17%
Since Inception of the Subaccount (4/19/95).................       8.74%

  For purchase payment allocated to the Loomis Sayles Small Cap Subaccount

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -28.55%
5 Years.....................................................      -3.17%
Since Inception of the Subaccount (4/19/95).................       6.84%

For purchase payment allocated to the MFS Investors Trust Subaccount  

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -27.27%
Since Inception of the Subaccount (7/1/99)..................     -13.73%

For purchase payment allocated to the MFS Research Managers Subaccount

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -30.91%
Since Inception of the Subaccount (7/1/99)..................     -14.40%

For purchase payment allocated to the FI Structured Equity Subaccount 

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -26.64%
5 Years.....................................................      -4.84%
Since Inception of the Subaccount (4/19/95).................       5.61%

For purchase payment allocated to the Met/Putnam Voyager Subaccount   

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -35.28%
Since Inception of the Subaccount (5/1/00)..................     -34.75%

     For purchase payment allocated to the Putnam International Stock Subaccount

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -24.86%
Since Inception of the Subaccount (5/1/00)..................     -20.84%

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STANDARD CLASS (CONTINUED)                                                      
---------------------------                                                     

    For purchase payment allocated to the Lehman Brothers Aggregate Bond Index
Subaccount                                                                      

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................       1.03%
Since Inception of the Subaccount (1/22/01).................       3.53%

For purchase payment allocated to the Janus Mid Cap Subaccount        

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -35.47%
Since Inception of the Subaccount (1/22/01).................     -38.48%

For purchase payment allocated to the MetLife Stock Index Subaccount  

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -29.36%
Since Inception of the Subaccount (1/22/01).................     -23.12%

 For purchase payment allocated to the Neuberger Berman Partners Mid Cap
Value Subaccount                                                                

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -17.79%
Since Inception of the Subaccount (5/1/01)..................     -11.67%

    For purchase payment allocated to the Morgan Stanley EAFE Index Subaccount

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -24.07%
Since Inception of the Subaccount (1/22/01).................     -23.73%

For purchase payment allocated to the Russell 2000 Index Subaccount   

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -27.61%
Since Inception of the Subaccount (1/22/01).................     -15.56%

For purchase payment allocated to the State Street Research Investment
Trust Subaccount                                                                

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -32.81%
Since Inception of the Subaccount (5/1/01)..................     -26.47%

     For purchase payment allocated to the Lord Abbett Bond Debenture Subaccount

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................      -9.21%
Since Inception of the Subaccount (5/1/01)..................      -5.45%

For purchase payment allocated to the American Funds Growth Subaccount

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -31.31%
Since Inception of the Subaccount (5/1/01)..................     -26.91%

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STANDARD CLASS (CONTINUED)                                                      
---------------------------                                                     

For purchase payment allocated to the American Funds Growth-Income    
Subaccount                                                                      

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -25.71%
Since Inception of the Subaccount (5/1/01)..................     -17.36%

For purchase payment allocated to the American Funds Global Small     
Capitalization Subaccount                                                       

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -26.36%
Since Inception of the Subaccount (5/1/01)..................     -20.62%

     For purchase payment allocated to the Janus Aggressive Growth Subaccount(1)

(previously the Janus Growth Subaccount)                              

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -36.98%
Since Inception of the Subaccount (5/1/01)..................     -34.30%

   For purchase payment allocated to the Franklin Templeton Small Cap Growth
Subaccount                                                                      

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -34.43%
Since Inception of the Subaccount (5/1/01)..................     -27.37%

For purchase payment allocated to the MetLife Mid Cap Stock Index     
Subaccount                                                                      

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -22.56%
Since Inception of the Subaccount (1/22/01).................     -12.04%

For purchase payment allocated to the State Street Research Aurora    
Subaccount                                                                      

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -28.41%
Since Inception of the Subaccount (1/22/01).................      -9.51%

For purchase payment allocated to the PIMCO Total Return Subaccount   

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................       0.39%
Since Inception of the Subaccount (5/1/01)..................       4.32%

For purchase payment allocated to the PIMCO Innovation Subaccount     

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -55.26%
Since Inception of the Subaccount (5/1/01)..................     -47.78%

     For purchase payment allocated to the MFS Research International Subaccount

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -19.52%
Since Inception of the Subaccount (5/1/01)..................     -18.40%

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STANDARD CLASS (CONTINUED)                                                      
---------------------------                                                     

For purchase payment allocated to the T. Rowe Price Mid-Cap Growth    
Subaccount                                                                      

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -49.11%
Since Inception of the Subaccount (5/1/01)..................     -39.27%

For purchase payment allocated to the Harris Oakmark Large Cap Value  
Subaccount                                                                      

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
Since Inception of the Subaccount (5/1/02)..................     -23.30%

     For purchase payment allocated to the State Street Research Large Cap Value
Subaccount                                                                      

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
Since Inception of the Subaccount (5/1/02)..................     -25.88%

   For purchase payment allocated to the FI Mid Cap Opportunities Subaccount

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
Since Inception of the Subaccount (5/1/02)..................     -24.21%

For purchase payment allocated to the Met/AIM Mid Cap Core Equity     
Subaccount                                                                      

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
Since Inception of the Subaccount (5/1/02)..................     -20.70%

   For purchase payment allocated to the Met/AIM Small Cap Growth Subaccount

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
Since Inception of the Subaccount (5/1/02)..................     -29.36%

For purchase payment allocated to the Harris Oakmark International    
Subaccount -- Class E(2)                                                        

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
Since Inception of the Subaccount (5/1/02)..................     -22.01%

------------                                                                    

(1) On or about April 28, 2003, the Janus Growth Portfolio merged into the Janus
Aggressive Growth Portfolio. Performance shown for the Janus Aggressive 
  Growth Portfolio is based on the May 1, 2001 inception of the Janus Growth
Portfolio, and reflects the performance of the Janus Growth Portfolio   
through the date of the merger.                                         

(2) The Harris Oakmark International Portfolio Class E shares are only available
 under Contracts issued prior to May 1, 2003. Contracts issued on or after
  that date will offer Class B shares, which impose a 12b-1 distribution fee
of 0.25%.                                                               

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B PLUS CLASS                                                                    
------------                                                                    

SUBACCOUNT AVERAGE ANNUAL TOTAL RETURN

  For purchase payment allocated to the State Street Research Money Market
Subaccount                                                                      

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................      -5.98%
5 Years.....................................................       1.68%
Since Inception of the Subaccount (4/19/95).................       2.50%

 For purchase payment allocated to the State Street Research Bond Income
Subaccount                                                                      

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................       1.19%
5 Years.....................................................       4.15%
Since Inception of the Subaccount (4/19/95).................       5.97%

For purchase payment allocated to the Salomon Brothers Strategic Bond 
Opportunities Subaccount                                                        

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................       2.40%
5 Years.....................................................       2.83%
Since Inception of the Subaccount (4/19/95).................       6.44%

For purchase payment allocated to the Salomon Brothers U.S. Government
Subaccount                                                                      

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................       0.63%
5 Years.....................................................       4.03%
Since Inception of the Subaccount (4/19/95).................       4.97%

For purchase payment allocated to the Balanced Subaccount             

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -20.16%
5 Years.....................................................      -6.04%
Since Inception of the Subaccount (4/19/95).................       1.55%

For purchase payment allocated to the Alger Equity Growth Subaccount  

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -38.33%
5 Years.....................................................      -2.58%
Since Inception of the Subaccount (4/19/95).................       6.23%

For purchase payment allocated to the Davis Venture Value Subaccount  

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -22.79%
5 Years.....................................................      -0.83%
Since Inception of the Subaccount (4/19/95).................       9.25%

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B PLUS CLASS (CONTINUED)                                                        
------------------------                                                        

For purchase payment allocated to the Harris Oakmark Focused Value    
Subaccount                                                                      

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -15.75%
5 Years.....................................................       3.34%
Since Inception of the Subaccount (4/19/95).................       8.81%

  For purchase payment allocated to the Loomis Sayles Small Cap Subaccount

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -27.54%
5 Years.....................................................      -3.09%
Since Inception of the Subaccount (4/19/95).................       6.88%

For purchase payment allocated to the MFS Investors Trust Subaccount  

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -26.23%
Since Inception of the Subaccount (7/1/99)..................     -13.49%

For purchase payment allocated to the MFS Research Managers Subaccount

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -29.92%
Since Inception of the Subaccount (7/1/99)..................     -14.17%

For purchase payment allocated to the FI Structured Equity Subaccount 

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -25.60%
5 Years.....................................................      -4.76%
Since Inception of the Subaccount (4/19/95).................       5.64%

For purchase payment allocated to the Met/Putnam Voyager Subaccount   

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -34.36%
Since Inception of the Subaccount (5/1/00)..................     -34.39%

     For purchase payment allocated to the Putnam International Stock Subaccount

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -23.79%
Since Inception of the Subaccount (5/1/00)..................     -20.47%

    For purchase payment allocated to the Lehman Brothers Aggregate Bond Index
Subaccount                                                                      

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................       2.99%
Since Inception of the Subaccount (1/22/01).................       4.50%

For purchase payment allocated to the Janus Mid Cap Subaccount        

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -34.55%
Since Inception of the Subaccount (1/22/01).................     -37.97%

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B PLUS CLASS (CONTINUED)                                                        
------------------------                                                        

For purchase payment allocated to the MetLife Stock Index Subaccount  

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -28.35%
Since Inception of the Subaccount (1/22/01).................     -22.54%

 For purchase payment allocated to the Neuberger Berman Partners Mid Cap
Value Subaccount                                                                

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -16.61%
Since Inception of the Subaccount (5/1/01)..................     -10.89%

    For purchase payment allocated to the Morgan Stanley EAFE Index Subaccount

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -22.99%
Since Inception of the Subaccount (1/22/01).................     -23.15%

For purchase payment allocated to the Russell 2000 Index Subaccount   

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -26.58%
Since Inception of the Subaccount (1/22/01).................     -14.95%

For purchase payment allocated to the State Street Research Investment
Trust Subaccount                                                                

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -31.86%
Since Inception of the Subaccount (5/1/01)..................     -25.79%

     For purchase payment allocated to the Lord Abbett Bond Debenture Subaccount

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................      -7.76%
Since Inception of the Subaccount (5/1/01)..................      -4.63%

For purchase payment allocated to the American Funds Growth Subaccount

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -30.33%
Since Inception of the Subaccount (5/1/01)..................     -26.24%

For purchase payment allocated to the American Funds Growth-Income    
Subaccount                                                                      

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -24.65%
Since Inception of the Subaccount (5/1/01)..................     -16.62%

For purchase payment allocated to the American Funds Global Small     
Capitalization Subaccount                                                       

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -25.31%
Since Inception of the Subaccount (5/1/01)..................     -19.91%

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B PLUS CLASS (CONTINUED)                                                        
------------------------                                                        

     For purchase payment allocated to the Janus Aggressive Growth Subaccount(1)

(previously the Janus Growth Subaccount)                              

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -36.08%
Since Inception of the Subaccount (5/1/01)..................     -33.67%

   For purchase payment allocated to the Franklin Templeton Small Cap Growth
Subaccount                                                                      

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -33.50%
Since Inception of the Subaccount (5/1/01)..................     -26.69%

For purchase payment allocated to the MetLife Mid Cap Stock Index     
Subaccount                                                                      

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -21.45%
Since Inception of the Subaccount (1/22/01).................     -11.42%

For purchase payment allocated to the State Street Research Aurora    
Subaccount                                                                      

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -27.39%
Since Inception of the Subaccount (1/22/01).................      -8.88%

For purchase payment allocated to the PIMCO Total Return Subaccount   

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................       2.33%
Since Inception of the Subaccount (5/1/01)..................       5.56%

For purchase payment allocated to the PIMCO Innovation Subaccount     

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -54.62%
Since Inception of the Subaccount (5/1/01)..................     -47.22%

     For purchase payment allocated to the MFS Research International Subaccount

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -18.37%
Since Inception of the Subaccount (5/1/01)..................     -17.67%

For purchase payment allocated to the T. Rowe Price Mid-Cap Growth    
Subaccount                                                                      

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -48.39%
Since Inception of the Subaccount (5/1/01)..................     -38.66%

For purchase payment allocated to the Harris Oakmark Large Cap Value  
Subaccount                                                                      

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
Since Inception of the Subaccount (5/1/02)..................     -21.92%

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B PLUS CLASS (CONTINUED)                                                        
------------------------                                                        

For purchase payment allocated to the State Street Research Large Cap 
Subaccount                                                                      

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
Since Inception of the Subaccount (5/1/02)..................     -24.55%

   For purchase payment allocated to the FI Mid Cap Opportunities Subaccount

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
Since Inception of the Subaccount (5/1/02)..................     -22.85%

For purchase payment allocated to the Met/AIM Mid Cap Core Equity     
Subaccount                                                                      

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
Since Inception of the Subaccount (5/1/02)..................     -19.29%

   For purchase payment allocated to the Met/AIM Small Cap Growth Subaccount

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
Since Inception of the Subaccount (5/1/02)..................     -28.08%

For purchase payment allocated to the Harris Oakmark International    
Subaccount -- Class E(2)                                                        

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
Since Inception of the Subaccount (5/1/02)..................     -20.61%

------------                                                                    

(1) On or about April 28, 2003, the Janus Growth Portfolio merged into the Janus
Aggressive Growth Portfolio. Performance shown for the Janus Aggressive 
  Growth Portfolio is based on the May 1, 2001 inception of the Janus Growth
Portfolio, and reflects the performance of the Janus Growth Portfolio   
through the date of the merger.                                         

(2) The Harris Oakmark International Portfolio Class E shares are only available
 under Contracts issued prior to May 1, 2003. Contracts issued on or after
  that date will offer Class B shares, which impose a 12b-1 distribution fee
of 0.25%.                                                               

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C CLASS                                                                         
-------                                                                         

SUBACCOUNT AVERAGE ANNUAL TOTAL RETURN

  For purchase payment allocated to the State Street Research Money Market
Subaccount                                                                      

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................      -0.98%
5 Years.....................................................       1.87%
Since Inception of the Subaccount (4/19/95).................       2.18%

 For purchase payment allocated to the State Street Research Bond Income
Subaccount                                                                      

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................       5.91%
5 Years.....................................................       4.23%
Since Inception of the Subaccount (4/19/95).................       5.60%

For purchase payment allocated to the Salomon Brothers Strategic Bond 
Opportunities Subaccount                                                        

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................       7.08%
5 Years.....................................................       2.97%
Since Inception of the Subaccount (4/19/95).................       6.06%

For purchase payment allocated to the Salomon Brothers U.S. Government
Subaccount                                                                      

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................       5.37%
5 Years.....................................................       4.12%
Since Inception of the Subaccount (4/19/95).................       4.61%

For purchase payment allocated to the Balanced Subaccount             

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -15.63%
5 Years.....................................................      -5.76%
Since Inception of the Subaccount (4/19/95).................       1.25%

For purchase payment allocated to the Alger Equity Growth Subaccount  

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -34.84%
5 Years.....................................................      -2.27%
Since Inception of the Subaccount (4/19/95).................       5.85%

For purchase payment allocated to the Davis Venture Value Subaccount  

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -18.42%
5 Years.....................................................      -0.52%
Since Inception of the Subaccount (4/19/95).................       8.83%

For purchase payment allocated to the Harris Oakmark Focused Value    
Subaccount                                                                      

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -10.97%
5 Years.....................................................       3.46%
Since Inception of the Subaccount (4/19/95).................       8.39%

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C CLASS (CONTINUED)                                                             
------------------                                                              

  For purchase payment allocated to the Loomis Sayles Small Cap Subaccount

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -23.43%
5 Years.....................................................      -2.78%
Since Inception of the Subaccount (4/19/95).................       6.49%

For purchase payment allocated to the MFS Investors Trust Subaccount  

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -22.05%
Since Inception of the Subaccount (7/1/99)..................     -12.95%

For purchase payment allocated to the MFS Research Managers Subaccount

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -25.95%
Since Inception of the Subaccount (7/1/99)..................     -13.63%

For purchase payment allocated to the FI Structured Equity Subaccount 

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -21.38%
5 Years.....................................................      -4.47%
Since Inception of the Subaccount (4/19/95).................       5.27%

For purchase payment allocated to the Met/Putnam Voyager Subaccount   

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -30.64%
Since Inception of the Subaccount (5/1/00)..................     -33.91%

     For purchase payment allocated to the Putnam International Stock Subaccount

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -19.47%
Since Inception of the Subaccount (5/1/00)..................     -19.58%

    For purchase payment allocated to the Lehman Brothers Aggregate Bond Index
Subaccount                                                                      

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................       7.64%
Since Inception of the Subaccount (1/22/01).................       5.84%

For purchase payment allocated to the Janus Mid Cap Subaccount        

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -30.84%
Since Inception of the Subaccount (1/22/01).................     -37.20%

For purchase payment allocated to the MetLife Stock Index Subaccount  

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -24.29%
Since Inception of the Subaccount (1/22/01).................     -21.29%

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C CLASS (CONTINUED)                                                             
------------------                                                              

 For purchase payment allocated to the Neuberger Berman Partners Mid Cap
Value Subaccount                                                                

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -11.88%
Since Inception of the Subaccount (5/1/01)..................      -9.02%

    For purchase payment allocated to the Morgan Stanley EAFE Index Subaccount

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -18.62%
Since Inception of the Subaccount (1/22/01).................     -21.92%

For purchase payment allocated to the Russell 2000 Index Subaccount   

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -22.42%
Since Inception of the Subaccount (1/22/01).................     -13.48%

For purchase payment allocated to the State Street Research Investment
Trust Subaccount                                                                

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -27.99%
Since Inception of the Subaccount (5/1/01)..................     -24.39%

     For purchase payment allocated to the Lord Abbett Bond Debenture Subaccount

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................      -2.69%
Since Inception of the Subaccount (5/1/01)..................      -2.57%

For purchase payment allocated to the American Funds Growth Subaccount

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -26.38%
Since Inception of the Subaccount (5/1/01)..................     -24.85%

For purchase payment allocated to the American Funds Growth-Income    
Subaccount                                                                      

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -20.38%
Since Inception of the Subaccount (5/1/01)..................     -14.93%

For purchase payment allocated to the American Funds Global Small     
Capitalization Subaccount                                                       

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -21.08%
Since Inception of the Subaccount (5/1/01)..................     -18.32%

     For purchase payment allocated to the Janus Aggressive Growth Subaccount(1)
(previously the Janus Growth Portfolio)                               

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -32.46%
Since Inception of the Subaccount (5/1/01)..................     -32.53%

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C CLASS (CONTINUED)                                                             
------------------                                                              

   For purchase payment allocated to the Franklin Templeton Small Cap Growth
Subaccount                                                                      

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -29.72%
Since Inception of the Subaccount (5/1/01)..................     -25.33%

For purchase payment allocated to the MetLife Mid Cap Stock Index     
Subaccount                                                                      

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -17.00%
Since Inception of the Subaccount (1/22/01).................      -9.84%

For purchase payment allocated to the State Street Research Aurora    
Subaccount                                                                      

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -23.27%
Since Inception of the Subaccount (1/22/01).................      -7.23%

For purchase payment allocated to the PIMCO Total Return Subaccount   

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................       7.01%
Since Inception of the Subaccount (5/1/01)..................       7.11%

For purchase payment allocated to the PIMCO Innovation Subaccount     

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -52.05%
Since Inception of the Subaccount (5/1/01)..................     -46.56%

     For purchase payment allocated to the MFS Research International Subaccount

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -13.74%
Since Inception of the Subaccount (5/1/01)..................     -16.01%

For purchase payment allocated to the T. Rowe Price Mid-Cap Growth    
Subaccount                                                                      

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -45.46%
Since Inception of the Subaccount (5/1/01)..................     -37.70%

For purchase payment allocated to the Harris Oakmark Large Cap Value  
Subaccount                                                                      

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
Since Inception of the Subaccount (5/1/02)..................     -18.45%

     For purchase payment allocated to the State Street Research Large Cap Value
Subaccount                                                                      

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
Since Inception of the Subaccount (5/1/02)..................     -21.22%

   For purchase payment allocated to the FI Mid Cap Opportunities Subaccount

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C CLASS (CONTINUED)                                                             
------------------                                                              

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
Since Inception of the Subaccount (5/1/02)..................     -19.43%

For purchase payment allocated to the Met/AIM Mid Cap Core Equity     
Subaccount                                                                      

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
Since Inception of the Subaccount (5/1/02)..................     -15.66%

   For purchase payment allocated to the Met/AIM Small Cap Growth Subaccount

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
Since Inception of the Subaccount (5/1/02)..................     -24.95%

For purchase payment allocated to the Harris Oakmark International    
Subaccount -- Class E(2)                                                        

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
Since Inception of the Subaccount (5/1/02)..................     -17.06%

------------                                                                    

(1) On or about April 28, 2003, the Janus Growth Portfolio merged into the Janus
Aggressive Growth Portfolio. Performance shown for the Janus Aggressive 
  Growth Portfolio is based on the May 1, 2001 inception of the Janus Growth
Portfolio, and reflects the performance of the Janus Growth Portfolio   
through the date of the merger.                                         

(2) The Harris Oakmark International Portfolio Class E shares are only available
 under Contracts issued prior to May 1, 2003. Contracts issued on or after
  that date will offer Class B shares, which impose a 12b-1 distribution fee
of 0.25%.                                                               

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L CLASS                                                                         
-------                                                                         

SUBACCOUNT AVERAGE ANNUAL TOTAL RETURN

  For purchase payment allocated to the State Street Research Money Market
Subaccount                                                                      

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................      -7.83%
5 Years.....................................................       1.96%
Since Inception of the Subaccount (4/19/95).................       2.28%

 For purchase payment allocated to the State Street Research Bond Income
Subaccount                                                                      

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................      -0.96%
5 Years.....................................................       4.33%
Since Inception of the Subaccount (4/19/95).................       5.70%

For purchase payment allocated to the Salomon Brothers Strategic Bond 
Opportunities Subaccount                                                        

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................       0.22%
5 Years.....................................................       3.06%
Since Inception of the Subaccount (4/19/95).................       6.16%

For purchase payment allocated to the Salomon Brothers U.S. Government
Subaccount                                                                      

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................      -1.49%
5 Years.....................................................       4.22%
Since Inception of the Subaccount (4/19/95).................       4.71%

For purchase payment allocated to the Balanced Subaccount             

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -21.47%
5 Years.....................................................      -5.67%
Since Inception of the Subaccount (4/19/95).................       1.34%

For purchase payment allocated to the Alger Equity Growth Subaccount  

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -39.34%
5 Years.....................................................      -2.17%
Since Inception of the Subaccount (4/19/95).................       5.95%

For purchase payment allocated to the Davis Venture Value Subaccount  

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -24.06%
5 Years.....................................................      -0.43%
Since Inception of the Subaccount (4/19/95).................       8.93%

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L CLASS (CONTINUED)                                                             
-------------------                                                             

For purchase payment allocated to the Harris Oakmark Focused Value    
Subaccount                                                                      

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -17.12%
5 Years.....................................................       3.56%
Since Inception of the Subaccount (4/19/95).................       8.49%

  For purchase payment allocated to the Loomis Sayles Small Cap Subaccount

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -28.72%
5 Years.....................................................      -2.69%
Since Inception of the Subaccount (4/19/95).................       6.59%

For purchase payment allocated to the MFS Investors Trust Subaccount  

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -27.43%
Since Inception of the Subaccount (7/1/99)..................     -12.86%

For purchase payment allocated to the MFS Research Managers Subaccount

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -31.07%
Since Inception of the Subaccount (7/1/99)..................     -13.55%

For purchase payment allocated to the FI Structured Equity Subaccount 

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -26.81%
5 Years.....................................................      -4.38%
Since Inception of the Subaccount (4/19/95).................       5.37%

For purchase payment allocated to the Met/Putnam Voyager Subaccount   

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -35.43%
Since Inception of the Subaccount (5/1/00)..................     -34.72%

     For purchase payment allocated to the Putnam International Stock Subaccount

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -25.04%
Since Inception of the Subaccount (5/1/00)..................     -20.76%

    For purchase payment allocated to the Lehman Brothers Aggregate Bond Index
Subaccount                                                                      

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................       0.78%
Since Inception of the Subaccount (1/22/01).................       3.28%

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L CLASS (CONTINUED)                                                             
-------------------                                                             

For purchase payment allocated to the Janus Mid Cap Subaccount        

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -35.62%
Since Inception of the Subaccount (1/22/01).................     -38.62%

For purchase payment allocated to the MetLife Stock Index Subaccount  

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -29.52%
Since Inception of the Subaccount (1/22/01).................     -23.29%

 For purchase payment allocated to the Neuberger Berman Partners Mid Cap
Value Subaccount                                                                

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -17.97%
Since Inception of the Subaccount (5/1/01)..................      11.86%

    For purchase payment allocated to the Morgan Stanley EAFE Index Subaccount

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -24.25%
Since Inception of the Subaccount (1/22/01).................      23.90%

For purchase payment allocated to the Russell 2000 Index Subaccount   

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -27.78%
Since Inception of the Subaccount (1/22/01).................     -15.75%

For purchase payment allocated to the State Street Research Investment
Trust Subaccount                                                                

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -32.97%
Since Inception of the Subaccount (5/1/01)..................     -26.63%

     For purchase payment allocated to the Lord Abbett Bond Debenture Subaccount

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................      -9.42%
Since Inception of the Subaccount (5/1/01)..................      -5.66%

For purchase payment allocated to the American Funds Growth Subaccount

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -31.47%
Since Inception of the Subaccount (5/1/01)..................     -27.08%

For purchase payment allocated to the American Funds Growth-Income    
Subaccount                                                                      

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -25.88%
Since Inception of the Subaccount (5/1/01)..................     -17.55%

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L CLASS (CONTINUED)                                                             
-------------------                                                             

For purchase payment allocated to the American Funds Global Small     
Capitalization Subaccount                                                       

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -26.53%
Since Inception of the Subaccount (5/1/01)..................     -20.80%

     For purchase payment allocated to the Janus Aggressive Growth Subaccount(1)
(previously the Janus Growth Portfolio)                               

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -37.13%
Since Inception of the Subaccount (5/1/01)..................     -34.45%

   For purchase payment allocated to the Franklin Templeton Small Cap Growth
Subaccount                                                                      

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -34.58%
Since Inception of the Subaccount (5/1/01)..................     -27.53%

For purchase payment allocated to the MetLife Mid Cap Stock Index     
Subaccount                                                                      

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -22.73%
Since Inception of the Subaccount (1/22/01).................     -12.24%

For purchase payment allocated to the State Street Research Aurora    
Subaccount                                                                      

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -28.58%
Since Inception of the Subaccount (1/22/01).................      -9.72%

For purchase payment allocated to the PIMCO Total Return Subaccount   

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................       0.15%
Since Inception of the Subaccount (5/1/01)..................       4.06%

For purchase payment allocated to the PIMCO Innovation Subaccount     

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -55.36%
Since Inception of the Subaccount (5/1/01)..................     -47.90%

     For purchase payment allocated to the MFS Research International Subaccount

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -19.71%
Since Inception of the Subaccount (5/1/01)..................     -18.58%

For purchase payment allocated to the T. Rowe Price Mid-Cap Growth    
Subaccount                                                                      

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -49.23%
Since Inception of the Subaccount (5/1/01)..................     -39.41%

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L CLASS (CONTINUED)                                                             
-------------------                                                             

For purchase payment allocated to the Harris Oakmark Large Cap Value  
Subaccount                                                                      

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
Since Inception of the Subaccount (5/1/02)..................     -23.41%

For purchase payment allocated to the State Street Research Large Cap 
Subaccount                                                                      

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
Since Inception of the Subaccount (5/1/02)..................     -25.99%

   For purchase payment allocated to the FI Mid Cap Opportunities Subaccount

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
Since Inception of the Subaccount (5/1/02)..................     -24.32%

For purchase payment allocated to the Met/AIM Mid Cap Core Equity     
Subaccount                                                                      

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
Since Inception of the Subaccount (5/1/02)..................     -20.82%

   For purchase payment allocated to the Met/AIM Small Cap Growth Subaccount

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
Since Inception of the Subaccount (5/1/02)..................     -29.46%

For purchase payment allocated to the Harris Oakmark International    
Subaccount -- Class E(2)                                                        

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
Since Inception of the Subaccount (5/1/02)..................     -22.12%

------------                                                                    

(1) On or about April 28, 2003, the Janus Growth Portfolio merged into the Janus
Aggressive Growth Portfolio. Performance shown for the Janus Aggressive 
  Growth Portfolio is based on the May 1, 2001 inception of the Janus Growth
Portfolio, and reflects the performance of the Janus Growth Portfolio   
through the date of the merger.                                         

(2) The Harris Oakmark International Portfolio Class E shares are only available
 under Contracts issued prior to May 1, 2003. Contracts issued on or after
  that date will offer Class B shares, which impose a 12b-1 distribution fee
of 0.25%.                                                               

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P CLASS                                                                         
-------                                                                         

SUBACCOUNT AVERAGE ANNUAL TOTAL RETURN

  For purchase payment allocated to the State Street Research Money Market
Subaccount                                                                      

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................      -8.51%
5 Years.....................................................       1.31%
Since Inception of the Subaccount (4/19/95).................       2.33%

 For purchase payment allocated to the State Street Research Bond Income
Subaccount                                                                      

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                            
              -------------------------------                            
                                                                         
1 Year......................................................      -1.59%%
5 Years.....................................................       3.78% 
Since Inception of the Subaccount (4/19/95).................       5.82% 

For purchase payment allocated to the Salomon Brothers Strategic Bond 
Opportunities Subaccount                                                        

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................      -0.42%
5 Years.....................................................       2.46%
Since Inception of the Subaccount (4/19/95).................       6.29%

For purchase payment allocated to the Salomon Brothers U.S. Government
Subaccount                                                                      

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................      -2.13%
5 Years.....................................................       3.66%
Since Inception of the Subaccount (4/19/95).................       4.82%

For purchase payment allocated to the Balanced Subaccount             

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -22.05%
5 Years.....................................................      -6.35%
Since Inception of the Subaccount (4/19/95).................       1.37%

For purchase payment allocated to the Alger Equity Growth Subaccount  

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -39.79%
5 Years.....................................................      -2.91%
Since Inception of the Subaccount (4/19/95).................       6.07%

For purchase payment allocated to the Davis Venture Value Subaccount  

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -24.62%
5 Years.....................................................      -1.19%
Since Inception of the Subaccount (4/19/95).................       9.11%

For purchase payment allocated to the Harris Oakmark Focused Value    
Subaccount                                                                      

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -17.74%
5 Years.....................................................       2.97%
Since Inception of the Subaccount (4/19/95).................       8.66%

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P CLASS (CONTINUED)                                                             
-------------------                                                             

  For purchase payment allocated to the Loomis Sayles Small Cap Subaccount

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -29.25%
5 Years.....................................................      -3.42%
Since Inception of the Subaccount (4/19/95).................       6.73%

For purchase payment allocated to the MFS Investors Trust Subaccount  

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -27.97%
Since Inception of the Subaccount (7/1/99)..................     -14.07%

For purchase payment allocated to the MFS Research Managers Subaccount

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -31.58%
Since Inception of the Subaccount (7/1/99)..................     -14.74%

For purchase payment allocated to the FI Structured Equity Subaccount 

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -27.36%
5 Years.....................................................      -5.08%
Since Inception of the Subaccount (4/19/95).................       5.48%

For purchase payment allocated to the Met/Putnam Voyager Subaccount   

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -35.91%
Since Inception of the Subaccount (5/1/00)..................     -35.04%

     For purchase payment allocated to the Putnam International Stock Subaccount

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -25.59%
Since Inception of the Subaccount (5/1/00)..................     -21.27%

    For purchase payment allocated to the Lehman Brothers Aggregate Bond Index
Subaccount                                                                      

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................       0.15%
Since Inception of the Subaccount (1/22/01).................       2.75%

For purchase payment allocated to the Janus Mid Cap Subaccount        

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -36.09%
Since Inception of the Subaccount (1/22/01).................     -38.92%

For purchase payment allocated to the MetLife Stock Index Subaccount  

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -30.04%
Since Inception of the Subaccount (1/22/01).................     -23.74%

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P CLASS (CONTINUED)                                                             
-------------------                                                             

 For purchase payment allocated to the Neuberger Berman Partners Mid Cap
Value Subaccount                                                                

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -18.58%
Since Inception of the Subaccount (5/1/01)..................     -12.57%

    For purchase payment allocated to the Morgan Stanley EAFE Index Subaccount

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -24.81%
Since Inception of the Subaccount (1/22/01).................     -24.34%

For purchase payment allocated to the Russell 2000 Index Subaccount   

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -28.32%
Since Inception of the Subaccount (1/22/01).................     -16.27%

For purchase payment allocated to the State Street Research Investment
Trust Subaccount                                                                

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -33.47%
Since Inception of the Subaccount (5/1/01)..................     -27.17%

     For purchase payment allocated to the Lord Abbett Bond Debenture Subaccount

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -10.09%
Since Inception of the Subaccount (5/1/01)..................      -6.43%

For purchase payment allocated to the American Funds Growth Subaccount

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -31.98%
Since Inception of the Subaccount (5/1/01)..................     -27.61%

For purchase payment allocated to the American Funds Growth-Income    
Subaccount                                                                      

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -26.43%
Since Inception of the Subaccount (5/1/01)..................     -18.19%

For purchase payment allocated to the American Funds Global Small     
Capitalization Subaccount                                                       

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -27.08%
Since Inception of the Subaccount (5/1/01)..................     -21.41%

   For purchase payment allocated to the Janus Aggressive Growth Subaccount(1)

(previously the Janus Growth Portfolio)                                 

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -37.59%
Since Inception of the Subaccount (5/1/01)..................     -34.91%

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P CLASS (CONTINUED)                                                             
-------------------                                                             

   For purchase payment allocated to the Franklin Templeton Small Cap Growth
Subaccount                                                                      

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -35.06%
Since Inception of the Subaccount (5/1/01)..................     -28.07%

For purchase payment allocated to the MetLife Mid Cap Stock Index     
Subaccount                                                                      

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -23.31%
Since Inception of the Subaccount (1/22/01).................     -12.79%

For purchase payment allocated to the State Street Research Aurora    
Subaccount                                                                      

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -29.10%
Since Inception of the Subaccount (1/22/01).................     -10.29%

For purchase payment allocated to the PIMCO Total Return Subaccount   

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................      -0.49%
Since Inception of the Subaccount (5/1/01)..................       3.41%

For purchase payment allocated to the PIMCO Innovation Subaccount     

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -55.69%
Since Inception of the Subaccount (5/1/01)..................     -48.20%

     For purchase payment allocated to the MFS Research International Subaccount

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -20.30%
Since Inception of the Subaccount (5/1/01)..................     -19.21%

For purchase payment allocated to the T. Rowe Price Mid-Cap Growth    
Subaccount                                                                      

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
1 Year......................................................     -49.61%
Since Inception of the Subaccount (5/1/01)..................     -39.80%

For purchase payment allocated to the Harris Oakmark Large Cap Value  
Subaccount                                                                      

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
Since Inception of the Subaccount (5/1/02)..................     -23.96%

For purchase payment allocated to the State Street Research Large Cap 
Subaccount                                                                      

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
Since Inception of the Subaccount (5/1/02)..................     -26.52%

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P CLASS (CONTINUED)                                                             
-------------------                                                             

   For purchase payment allocated to the FI Mid Cap Opportunities Subaccount

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
Since Inception of the Subaccount (5/1/02)..................     -24.87%

For purchase payment allocated to the Met/AIM Mid Cap Core Equity     
Subaccount                                                                      

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
Since Inception of the Subaccount (5/1/02)..................     -21.39%

   For purchase payment allocated to the Met/AIM Small Cap Growth Subaccount

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
Since Inception of the Subaccount (5/1/02)..................     -29.96%

For purchase payment allocated to the Harris Oakmark International    
Subaccount -- Class E(2)                                                        

                                                                [Download Table]

              PERIOD ENDING DECEMBER 31, 2002                           
              -------------------------------                           
                                                                        
Since Inception of the Subaccount (5/1/02)..................     -22.68%

------------                                                                    

(1) On or about April 28, 2003, the Janus Growth Portfolio merged into the Janus
Aggressive Growth Portfolio. Performance shown for the Janus Aggressive 
  Growth Portfolio is based on the May 1, 2001 inception of the Janus Growth
Portfolio, and reflects the performance of the Janus Growth Portfolio   
through the date of the merger.                                         

(2) The Harris Oakmark International Portfolio Class E shares are only available
 under Contracts issued prior to May 1, 2003. Contracts issued on or after
  that date will offer Class B shares, which impose a 12b-1 distribution fee
of 0.25%.                                                               

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     These returns are based on the Standard Death Benefit for all classes. They
do not reflect charges for any optional benefit, including the GMIB.            

STANDARD CLASS                                                                  
--------------                                                                  

FUND TOTAL RETURN ADJUSTED FOR CONTRACT CHARGES 
(NON-STANDARD)

  For purchase payment allocated to the State Street Research Money Market
Portfolio                                                                       

                                                                [Download Table]

                                                          WITH       WITHOUT  
                                                       WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002               CHARGE       CHARGE  
           -------------------------------             ----------   ----------
                                                                              
1 Year...............................................     -7.61%       -0.13% 
5 Years..............................................      1.54%        2.76% 
10 Years.............................................      2.27%        2.89% 
Since Inception of the Fund (8/26/83)................      3.73%        4.33% 

 For purchase payment allocated to the State Street Research Bond Income
Portfolio                                                                       

                                                                [Download Table]

                                                          WITH       WITHOUT  
                                                       WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002               CHARGE       CHARGE  
           -------------------------------             ----------   ----------
                                                                              
1 Year...............................................     -0.71%        6.78% 
5 Years..............................................      3.97%        5.13% 
10 Years.............................................      5.62%        6.17% 
Since Inception of the Fund (8/26/83)................      7.27%        7.81% 

For purchase payment allocated to the Salomon Brothers Strategic Bond 
Opportunities Portfolio                                                         

                                                                [Download Table]

                                                          WITH       WITHOUT  
                                                       WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002               CHARGE       CHARGE  
           -------------------------------             ----------   ----------
                                                                              
1 Year...............................................      0.46%        7.96% 
5 Years..............................................      2.67%        3.89% 
Since Inception of the Fund (10/31/94)...............      6.39%        6.93% 

For purchase payment allocated to the Salomon Brothers U.S. Government
Portfolio                                                                       

                                                                [Download Table]

                                                          WITH       WITHOUT  
                                                       WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002               CHARGE       CHARGE  
           -------------------------------             ----------   ----------
                                                                              
1 Year...............................................     -1.25%        6.25% 
5 Years..............................................      3.85%        5.01% 
Since Inception of the Fund (10/31/94)...............      5.24%        5.78% 

For purchase payment allocated to the Balanced Portfolio              

                                                                [Download Table]

                                                          WITH       WITHOUT  
                                                       WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002               CHARGE       CHARGE  
           -------------------------------             ----------   ----------
                                                                              
1 Year...............................................    -21.28%      -14.83% 
5 Years..............................................     -6.11%       -4.83% 
Since Inception of the Fund (10/31/94)...............      2.35%        2.91% 

For purchase payment allocated to the Alger Equity Growth Portfolio   

                                                                [Download Table]

                                                          WITH       WITHOUT  
                                                       WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002               CHARGE       CHARGE  
           -------------------------------             ----------   ----------
                                                                              
1 Year...............................................    -39.20%      -34.09% 
5 Years..............................................     -2.66%       -1.29% 
Since Inception of the Fund (10/31/94)...............      6.92%        7.56% 

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STANDARD CLASS (CONTINUED)                                                      
--------------------------                                                      

For purchase payment allocated to the Davis Venture Value Portfolio   

                                                                [Download Table]

                                                          WITH       WITHOUT  
                                                       WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002               CHARGE       CHARGE  
           -------------------------------             ----------   ----------
                                                                              
1 Year...............................................    -23.88%      -17.62% 
5 Years..............................................     -0.93%        0.36% 
Since Inception of the Fund (10/31/94)...............      9.51%       10.11% 

For purchase payment allocated to the Harris Oakmark Focused Value    
Portfolio                                                                       

                                                                [Download Table]

                                                          WITH       WITHOUT  
                                                       WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002               CHARGE       CHARGE  
           -------------------------------             ----------   ----------
                                                                              
1 Year...............................................    -16.93%      -10.15% 
5 Years..............................................      3.17%        4.38% 
Since Inception of the Fund (4/30/93)................      8.83%        9.40% 

 For purchase payment allocated to the Loomis Sayles Small Cap Portfolio

                                                                [Download Table]

                                                          WITH       WITHOUT  
                                                       WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002               CHARGE       CHARGE  
           -------------------------------             ----------   ----------
                                                                              
1 Year...............................................    -28.55%      -22.65% 
5 Years..............................................     -3.17%       -1.90% 
Since Inception of the Fund (5/2/94).................      6.10%        6.69% 

For purchase payment allocated to the MFS Investors Trust Portfolio   

                                                                [Download Table]

                                                          WITH       WITHOUT  
                                                       WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002               CHARGE       CHARGE  
           -------------------------------             ----------   ----------
                                                                              
1 Year...............................................    -27.27%      -21.26% 
Since Inception of the Fund (4/30/99)................    -12.54%      -10.88% 

For purchase payment allocated to the MFS Research Managers Portfolio 

                                                                [Download Table]

                                                          WITH       WITHOUT  
                                                       WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002               CHARGE       CHARGE  
           -------------------------------             ----------   ----------
                                                                              
1 Year...............................................    -30.91%      -25.18% 
Since Inception of the Fund (4/30/99)................    -12.44%      -10.80% 

For purchase payment allocated to the FI Structured Equity Portfolio  

                                                                [Download Table]

                                                          WITH       WITHOUT  
                                                       WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002               CHARGE       CHARGE  
           -------------------------------             ----------   ----------
                                                                              
1 Year...............................................    -26.64%      -20.59% 
5 Years..............................................     -4.84%       -3.58% 
Since Inception of the Fund (4/30/93)................      6.23%        6.82% 

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STANDARD CLASS (CONTINUED)                                                      
--------------------------                                                      

    For purchase payment allocated to the Lehman Brothers Aggregate Bond Index
Portfolio                                                                       

                                                                [Download Table]

                                                          WITH       WITHOUT  
                                                       WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002               CHARGE       CHARGE  
           -------------------------------             ----------   ----------
                                                                              
1 Year...............................................      1.03%        8.53% 
Since Inception of the Fund (11/9/98)................      3.78%        5.11% 

For purchase payment allocated to the Janus Mid Cap Portfolio         

                                                                [Download Table]

                                                          WITH       WITHOUT  
                                                       WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002               CHARGE       CHARGE  
           -------------------------------             ----------   ----------
                                                                              
1 Year...............................................    -35.47%      -30.08% 
5 Years..............................................     -4.58%       -2.98% 
Since Inception of the Fund (3/3/97).................     -0.11%        1.47% 

For purchase payment allocated to the MetLife Stock Index Portfolio   

                                                                [Download Table]

                                                          WITH       WITHOUT  
                                                       WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002               CHARGE       CHARGE  
           -------------------------------             ----------   ----------
                                                                              
1 Year...............................................    -29.36%      -23.51% 
5 Years..............................................     -3.93%       -2.63% 
10 Years.............................................      6.54%        7.14% 
Since Inception of the Fund (5/1/90).................      7.62%        8.21% 

 For purchase payment allocated to the Neuberger Berman Partners Mid Cap
Value Portfolio                                                                 

                                                                [Download Table]

                                                          WITH       WITHOUT  
                                                       WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002               CHARGE       CHARGE  
           -------------------------------             ----------   ----------
                                                                              
1 Year...............................................    -17.79%      -11.07% 
Since Inception of the Fund (11/9/98)................      6.02%        7.31% 

For purchase payment allocated to the Met/Putnam Voyager Portfolio    

                                                                [Download Table]

                                                          WITH       WITHOUT  
                                                       WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002               CHARGE       CHARGE  
           -------------------------------             ----------   ----------
                                                                              
1 Year...............................................    -35.28%      -29.88% 
Since Inception of the Fund (5/1/00).................    -34.75%      -32.84% 

   For purchase payment allocated to the Morgan Stanley EAFE Index Portfolio

                                                                [Download Table]

                                                          WITH       WITHOUT  
                                                       WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002               CHARGE       CHARGE  
           -------------------------------             ----------   ----------
                                                                              
1 Year...............................................    -24.07%      -17.83% 
Since Inception of the Fund (11/9/98)................     -9.57%       -8.18% 

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STANDARD CLASS (CONTINUED)                                                      
--------------------------                                                      

    For purchase payment allocated to the Putnam International Stock Portfolio

                                                                [Download Table]

                                                          WITH       WITHOUT  
                                                       WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002               CHARGE       CHARGE  
           -------------------------------             ----------   ----------
                                                                              
1 Year...............................................    -24.86%      -18.68% 
5 Years..............................................     -6.07%       -4.79% 
10 Years.............................................      0.31%        0.89% 
Since Inception of the Fund (5/1/91).................     -1.11%       -0.50% 

For purchase payment allocated to the Russell 2000 Index Portfolio    

                                                                [Download Table]

                                                          WITH       WITHOUT  
                                                       WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002               CHARGE       CHARGE  
           -------------------------------             ----------   ----------
                                                                              
1 Year...............................................    -27.61%      -21.64% 
Since Inception of the Fund (11/9/98)................     -3.12%       -1.70% 

For purchase payment allocated to the State Street Research Investment
Trust Portfolio(1)                                                              

                                                                [Download Table]

                                                          WITH       WITHOUT  
                                                       WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002               CHARGE       CHARGE  
           -------------------------------             ----------   ----------
                                                                              
1 Year...............................................    -32.81%      -27.23% 
5 Years..............................................     -5.41%       -4.13% 
10 Years.............................................      5.05%        5.65% 
Since Inception of the Fund (6/24/83)................      7.78%        8.37% 

For purchase payment allocated to the Lord Abbett Bond Debenture      
Portfolio(2)                                                                    

                                                                [Download Table]

                                                          WITH       WITHOUT  
                                                       WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002               CHARGE       CHARGE  
           -------------------------------             ----------   ----------
                                                                              
1 Year...............................................     -9.21%       -1.85% 
5 Years..............................................     -0.05%        1.23% 
Since Inception of the Fund (5/1/96).................      3.90%        4.65% 

For purchase payment allocated to the American Funds Growth Fund      

                                                                [Download Table]

                                                          WITH       WITHOUT  
                                                       WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002               CHARGE       CHARGE  
           -------------------------------             ----------   ----------
                                                                              
1 Year...............................................    -31.31%      -25.61% 
5 Years..............................................      3.70%        4.93% 
10 Years.............................................      9.72%       10.32% 
Since Inception of the Fund (2/8/84).................     11.27%       11.87% 

 For purchase payment allocated to the American Funds Growth-Income Fund

                                                                [Download Table]

                                                          WITH       WITHOUT  
                                                       WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002               CHARGE       CHARGE  
           -------------------------------             ----------   ----------
                                                                              
1 Year...............................................    -25.71%      -19.59%%
5 Years..............................................      0.69%        1.91% 
10 Years.............................................      8.07%        8.62% 
Since Inception of the Fund (2/8/84).................     10.02%       10.59% 

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STANDARD CLASS (CONTINUED)                                                      
--------------------------                                                      

For purchase payment allocated to the American Funds Global Small     
Capitalization Fund                                                             

                                                                [Download Table]

                                                          WITH       WITHOUT  
                                                       WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002               CHARGE       CHARGE  
           -------------------------------             ----------   ----------
                                                                              
1 Year...............................................    -26.36%      -20.29% 
Since Inception of the Fund (4/30/98)................      0.13%        1.55% 

    For purchase payment allocated to the Janus Aggressive Growth Portfolio(3)

(previously the Janus Growth Portfolio)                               

                                                                [Download Table]

                                                          WITH       WITHOUT  
                                                       WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002               CHARGE       CHARGE  
           -------------------------------             ----------   ----------
                                                                              
1 Year...............................................    -36.98%      -31.71% 
Since Inception of the Fund (5/1/01).................    -34.30%      -31.71% 

   For purchase payment allocated to the Franklin Templeton Small Cap Growth
Portfolio                                                                       

                                                                [Download Table]

                                                          WITH       WITHOUT  
                                                       WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002               CHARGE       CHARGE  
           -------------------------------             ----------   ----------
                                                                              
1 Year...............................................    -34.43%      -28.96% 
Since Inception of the Fund (5/1/01).................    -27.37%      -24.54% 

     For purchase payment allocated to the MetLife Mid Cap Stock Index Portfolio

                                                                [Download Table]

                                                          WITH       WITHOUT  
                                                       WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002               CHARGE       CHARGE  
           -------------------------------             ----------   ----------
                                                                              
1 Year...............................................    -22.56%      -16.20% 
Since Inception of the Fund (7/5/00).................     -8.26%       -5.68% 

For purchase payment allocated to the State Street Research Aurora    
Portfolio                                                                       

                                                                [Download Table]

                                                          WITH       WITHOUT  
                                                       WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002               CHARGE       CHARGE  
           -------------------------------             ----------   ----------
                                                                              
1 Year...............................................    -28.41%      -22.49% 
Since Inception of the Fund (7/5/00).................      0.67%        3.35% 

For purchase payment allocated to the PIMCO Total Return Portfolio    

                                                                [Download Table]

                                                          WITH       WITHOUT  
                                                       WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002               CHARGE       CHARGE  
           -------------------------------             ----------   ----------
                                                                              
1 Year...............................................      0.39%        7.89% 
Since Inception of the Fund (2/12/01)................      3.84%        7.10% 

For purchase payment allocated to the PIMCO Innovation Portfolio      

                                                                [Download Table]

                                                          WITH       WITHOUT  
                                                       WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002               CHARGE       CHARGE  
           -------------------------------             ----------   ----------
                                                                              
1 Year...............................................    -55.26%      -51.36% 
Since Inception of the Fund (2/12/01)................    -49.40%      -47.59% 

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STANDARD CLASS (CONTINUED)                                                      
--------------------------                                                      

    For purchase payment allocated to the MFS Research International Portfolio

                                                                [Download Table]

                                                          WITH       WITHOUT  
                                                       WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002               CHARGE       CHARGE  
           -------------------------------             ----------   ----------
                                                                              
1 Year...............................................    -19.52%      -12.93% 
Since Inception of the Fund (2/12/01)................    -17.82%      -14.86% 

For purchase payment allocated to the T. Rowe Price Mid-Cap Growth    
Portfolio                                                                       

                                                                [Download Table]

                                                          WITH       WITHOUT  
                                                       WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002               CHARGE       CHARGE  
           -------------------------------             ----------   ----------
                                                                              
1 Year...............................................    -49.11%      -44.75% 
Since Inception of the Fund (2/12/01)................    -36.44%      -34.17% 

For purchase payment allocated to the Harris Oakmark Large Cap Value  
Portfolio                                                                       

                                                                [Download Table]

                                                          WITH       WITHOUT  
                                                       WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002               CHARGE       CHARGE  
           -------------------------------             ----------   ----------
                                                                              
1 Year...............................................    -21.80%      -15.39% 
Since Inception of the Fund (11/9/98)................     -2.07%       -0.59% 

     For purchase payment allocated to the State Street Research Large Cap Value
Portfolio                                                                       

                                                                [Download Table]

                                                          WITH       WITHOUT  
                                                       WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002               CHARGE       CHARGE  
           -------------------------------             ----------   ----------
                                                                              
Since Inception of the Fund (5/1/02).................    -25.88%      -20.70% 

  For purchase payment allocated to the FI Mid Cap Opportunities Portfolio

                                                                [Download Table]

                                                          WITH       WITHOUT  
                                                       WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002               CHARGE       CHARGE  
           -------------------------------             ----------   ----------
                                                                              
Since Inception of the Fund (5/1/02).................    -24.21%      -18.90% 

     For purchase payment allocated to the Met/AIM Mid Cap Core Equity Portfolio

                                                                [Download Table]

                                                          WITH       WITHOUT  
                                                       WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002               CHARGE       CHARGE  
           -------------------------------             ----------   ----------
                                                                              
1 Year...............................................    -18.62%      -11.96% 
Since Inception of the Fund (10/9/01)................     -7.50%       -2.62% 

  For purchase payment allocated to the Met/AIM Small Cap Growth Portfolio

                                                                [Download Table]

                                                          WITH       WITHOUT  
                                                       WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002               CHARGE       CHARGE  
           -------------------------------             ----------   ----------
                                                                              
1 Year...............................................    -33.94%      -28.43% 
Since Inception of the Fund (10/9/01)................    -16.93%      -12.54% 

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STANDARD CLASS (CONTINUED)                                                      
--------------------------                                                      

For purchase payment allocated to the Harris Oakmark International    
Portfolio -- Class E(4)                                                         

                                                                [Download Table]

                                                          WITH       WITHOUT  
                                                       WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002               CHARGE       CHARGE  
           -------------------------------             ----------   ----------
                                                                              
1 Year...............................................    -25.27%      -19.11% 
Since Inception of the Fund (10/9/01)................    -14.00%       -9.48% 

------------                                                                    

(1) The performance shown for the State Street Research Investment Trust for the
    period June 24, 1984 through September 6, 1994 is based on the month-end net
asset values, as daily net asset value information is not available.    

(2) The performance shown for the Lord Abbett Bond Debenture Portfolio's Class B
Shares is the performance of the Portfolio's predecessor fund (Bond     
Debenture Portfolio, a series of Cova Series Trust), whose assets were  
    transferred to the Portfolio on February 12, 2001. The performance shown for
the predecessor fund has been adjusted to reflect Class B's .25% 12b-1  
distribution fee.                                                       

(3) On or about April 28, 2003, the Janus Growth Portfolio merged into the Janus
Aggressive Growth Portfolio. Performance shown for the Janus Aggressive 
  Growth Portfolio is based on the May 1, 2001 inception of the Janus Growth
Portfolio, and reflects the performance of the Janus Growth Portfolio   
through the date of the merger.                                         

(4) The Harris Oakmark International Portfolio Class E shares are only available
 under Contracts issued prior to May 1, 2003. Contracts issued on or after
  that date will offer Class B shares, which impose a 12b-1 distribution fee
of 0.25%.                                                               

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B PLUS CLASS                                                                    
------------                                                                    

FUND TOTAL RETURN ADJUSTED FOR CONTRACT CHARGES 
(NON-STANDARD)

  For purchase payment allocated to the State Street Research Money Market
Portfolio                                                                       

                                                                [Download Table]

                                                           WITH       WITHOUT  
                                                        WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002                CHARGE       CHARGE  
           -------------------------------              ----------   ----------
                                                                               
1 Year................................................     -5.98%       -0.46% 
5 Years...............................................      1.68%        2.42% 
10 Years..............................................      2.36%        2.55% 
Since Inception of the Fund (8/26/83).................      3.78%        3.99% 

 For purchase payment allocated to the State Street Research Bond Income
Portfolio                                                                       

                                                                [Download Table]

                                                           WITH       WITHOUT  
                                                        WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002                CHARGE       CHARGE  
           -------------------------------              ----------   ----------
                                                                               
1 Year................................................      1.19%        6.43% 
5 Years...............................................      4.15%        4.78% 
10 Years..............................................      5.72%        5.82% 
Since Inception of the Fund (8/26/83).................      7.33%        7.45% 

For purchase payment allocated to the Salomon Brothers Strategic Bond 
Opportunities Portfolio                                                         

                                                                [Download Table]

                                                           WITH       WITHOUT  
                                                        WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002                CHARGE       CHARGE  
           -------------------------------              ----------   ----------
                                                                               
1 Year................................................      2.40%        7.61% 
5 Years...............................................      2.83%        3.54% 
Since Inception of the Fund (10/31/94)................      6.41%        6.58% 

For purchase payment allocated to the Salomon Brothers U.S. Government
Portfolio                                                                       

                                                                [Download Table]

                                                           WITH       WITHOUT  
                                                        WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002                CHARGE       CHARGE  
           -------------------------------              ----------   ----------
                                                                               
1 Year................................................      0.63%        5.90% 
5 Years...............................................      4.03%        4.67% 
Since Inception of the Fund (10/31/94)................      5.24%        5.43% 

For purchase payment allocated to the Balanced Portfolio              

                                                                [Download Table]

                                                           WITH       WITHOUT  
                                                        WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002                CHARGE       CHARGE  
           -------------------------------              ----------   ----------
                                                                               
1 Year................................................    -20.16%      -15.11% 
5 Years...............................................     -6.04%       -5.14% 
Since Inception of the Fund (10/31/94)................      2.32%        2.57% 

For purchase payment allocated to the Alger Equity Growth Portfolio   

                                                                [Download Table]

                                                           WITH       WITHOUT  
                                                        WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002                CHARGE       CHARGE  
           -------------------------------              ----------   ----------
                                                                               
1 Year................................................    -38.33%      -34.31% 
5 Years...............................................     -2.58%       -1.62% 
Since Inception of the Fund (10/31/94)................      6.95%        7.21% 

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B PLUS CLASS (CONTINUED)                                                        
------------------------                                                        

For purchase payment allocated to the Davis Venture Value Portfolio   

                                                                [Download Table]

                                                           WITH       WITHOUT  
                                                        WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002                CHARGE       CHARGE  
           -------------------------------              ----------   ----------
                                                                               
1 Year................................................    -22.79%      -17.89% 
5 Years...............................................     -0.83%        0.02% 
Since Inception of the Fund (10/31/94)................      9.56%        9.75% 

For purchase payment allocated to the Harris Oakmark Focused Value    
Portfolio                                                                       

                                                                [Download Table]

                                                           WITH       WITHOUT  
                                                        WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002                CHARGE       CHARGE  
           -------------------------------              ----------   ----------
                                                                               
1 Year................................................    -15.75%      -10.45% 
5 Years...............................................      3.34%        4.03% 
Since Inception of the Fund (4/30/93).................      8.94%        9.04% 

 For purchase payment allocated to the Loomis Sayles Small Cap Portfolio

                                                                [Download Table]

                                                           WITH       WITHOUT  
                                                        WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002                CHARGE       CHARGE  
           -------------------------------              ----------   ----------
                                                                               
1 Year................................................    -27.54%      -22.90% 
5 Years...............................................     -3.09%       -2.23% 
Since Inception of the Fund (5/2/94)..................      6.10%        6.34% 

For purchase payment allocated to the MFS Investors Trust Portfolio   

                                                                [Download Table]

                                                           WITH       WITHOUT  
                                                        WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002                CHARGE       CHARGE  
           -------------------------------              ----------   ----------
                                                                               
1 Year................................................    -26.23%      -21.52% 
Since Inception of the Fund (4/30/99).................    -12.33%      -11.18% 

For purchase payment allocated to the MFS Research Managers Portfolio 

                                                                [Download Table]

                                                           WITH       WITHOUT  
                                                        WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002                CHARGE       CHARGE  
           -------------------------------              ----------   ----------
                                                                               
1 Year................................................    -29.92%      -25.42% 
Since Inception of the Fund (4/30/99).................    -12.23%      -11.09% 

For purchase payment allocated to the FI Structured Equity Portfolio  

                                                                [Download Table]

                                                           WITH       WITHOUT  
                                                        WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002                CHARGE       CHARGE  
           -------------------------------              ----------   ----------
                                                                               
1 Year................................................    -25.60%      -20.86% 
5 Years...............................................     -4.76%       -3.90% 
Since Inception of the Fund (4/30/93).................      6.34%        6.46% 

    For purchase payment allocated to the Lehman Brothers Aggregate Bond Index
Portfolio                                                                       

                                                                [Download Table]

                                                           WITH       WITHOUT  
                                                        WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002                CHARGE       CHARGE  
           -------------------------------              ----------   ----------
                                                                               
1 Year................................................      2.99%        8.18% 
Since Inception of the Fund (11/9/98).................      4.06%        4.76% 

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B PLUS CLASS (CONTINUED)                                                        
------------------------                                                        

For purchase payment allocated to the Janus Mid Cap Portfolio         

                                                                [Download Table]

                                                           WITH       WITHOUT  
                                                        WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002                CHARGE       CHARGE  
           -------------------------------              ----------   ----------
                                                                               
1 Year................................................    -34.55%      -30.31% 
5 Years...............................................     -4.51%       -3.30% 
Since Inception of the Fund (3/3/97)..................     -0.07%        1.13% 

For purchase payment allocated to the MetLife Stock Index Portfolio   

                                                                [Download Table]

                                                           WITH       WITHOUT  
                                                        WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002                CHARGE       CHARGE  
           -------------------------------              ----------   ----------
                                                                               
1 Year................................................    -28.35%      -23.76% 
5 Years...............................................     -3.85%       -2.95% 
10 Years..............................................      6.64%        6.79% 
Since Inception of the Fund (5/1/90)..................      7.71%        7.86% 

 For purchase payment allocated to the Neuberger Berman Partners Mid Cap
Value Portfolio                                                                 

                                                                [Download Table]

                                                           WITH       WITHOUT  
                                                        WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002                CHARGE       CHARGE  
           -------------------------------              ----------   ----------
                                                                               
1 Year................................................    -16.61%      -11.36% 
Since Inception of the Fund (11/9/98).................      6.34%        6.95% 

For purchase payment allocated to the Met/Putnam Voyager Portfolio    

                                                                [Download Table]

                                                           WITH       WITHOUT  
                                                        WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002                CHARGE       CHARGE  
           -------------------------------              ----------   ----------
                                                                               
1 Year................................................    -34.36%      -30.11% 
Since Inception of the Fund (5/1/00)..................    -34.39       -33.07  

   For purchase payment allocated to the Morgan Stanley EAFE Index Portfolio

                                                                [Download Table]

                                                           WITH       WITHOUT  
                                                        WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002                CHARGE       CHARGE  
           -------------------------------              ----------   ----------
                                                                               
1 Year................................................    -22.99%      -18.10% 
Since Inception of the Fund (11/9/98).................     -9.41%       -8.49% 

    For purchase payment allocated to the Putnam International Stock Portfolio

                                                                [Download Table]

                                                           WITH       WITHOUT  
                                                        WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002                CHARGE       CHARGE  
           -------------------------------              ----------   ----------
                                                                               
1 Year................................................    -23.79%      -18.95% 
5 Years...............................................     -5.99%       -5.10% 
10 Years..............................................      0.40%        0.56% 
Since Inception of the Fund (5/1/91)..................     -1.04%       -0.83% 

For purchase payment allocated to the Russell 2000 Index Portfolio    

                                                                [Download Table]

                                                           WITH       WITHOUT  
                                                        WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002                CHARGE       CHARGE  
           -------------------------------              ----------   ----------
                                                                               
1 Year................................................    -26.58%      -21.89% 
Since Inception of the Fund (11/9/98).................     -2.96%       -2.02% 

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B PLUS CLASS (CONTINUED)                                                        
------------------------                                                        

For purchase payment allocated to the State Street Research Investment
Trust Portfolio(1)                                                              

                                                                [Download Table]

                                                           WITH       WITHOUT  
                                                        WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002                CHARGE       CHARGE  
           -------------------------------              ----------   ----------
                                                                               
1 Year................................................    -31.86%      -27.47% 
5 Years...............................................     -5.33%       -4.45% 
10 Years..............................................      5.16%        5.31% 
Since Inception of the Fund (6/24/83).................      7.84%        8.01% 

For purchase payment allocated to the Lord Abbett Bond Debenture      
Portfolio(2)                                                                    

                                                                [Download Table]

                                                           WITH       WITHOUT  
                                                        WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002                CHARGE       CHARGE  
           -------------------------------              ----------   ----------
                                                                               
1 Year................................................     -7.76%       -2.17% 
5 Years...............................................      0.06%        0.90% 
Since Inception of the Fund (5/1/96)..................      3.96%        4.31% 

For purchase payment allocated to the American Funds Growth Fund      

                                                                [Download Table]

                                                           WITH       WITHOUT  
                                                        WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002                CHARGE       CHARGE  
           -------------------------------              ----------   ----------
                                                                               
1 Year................................................    -30.33%      -25.86% 
5 Years...............................................      3.88%        4.59% 
10 Years..............................................      9.82%        9.96% 
Since Inception of the Fund (2/8/84)..................     11.34%       11.51% 

 For purchase payment allocated to the American Funds Growth-Income Fund

                                                                [Download Table]

                                                           WITH       WITHOUT  
                                                        WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002                CHARGE       CHARGE  
           -------------------------------              ----------   ----------
                                                                               
1 Year................................................    -24.65%      -19.86% 
5 Years...............................................      0.82%        1.57% 
10 Years..............................................      8.17%        8.27% 
Since Inception of the Fund (2/8/84)..................     10.09%       10.23% 

For purchase payment allocated to the American Funds Global Small     
Capitalization Fund                                                             

                                                                [Download Table]

                                                           WITH       WITHOUT  
                                                        WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002                CHARGE       CHARGE  
           -------------------------------              ----------   ----------
                                                                               
1 Year................................................    -25.31%      -20.55% 
Since Inception of the Fund (4/30/98).................      0.28%        1.22% 

    For purchase payment allocated to the Janus Aggressive Growth Portfolio(3)

(previously the Janus Growth Portfolio)                               

                                                                [Download Table]

                                                           WITH       WITHOUT  
                                                        WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002                CHARGE       CHARGE  
           -------------------------------              ----------   ----------
                                                                               
1 Year................................................    -36.08%      -31.93% 
Since Inception of the Fund (5/1/01)..................    -33.67%      -31.93% 

   For purchase payment allocated to the Franklin Templeton Small Cap Growth
Portfolio                                                                       

                                                                [Download Table]

                                                           WITH       WITHOUT  
                                                        WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002                CHARGE       CHARGE  
           -------------------------------              ----------   ----------
                                                                               
1 Year................................................    -33.50%      -29.20% 
Since Inception of the Fund (5/1/01)..................    -26.69%      -24.79% 

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B PLUS CLASS (CONTINUED)                                                        
------------------------                                                        

     For purchase payment allocated to the MetLife Mid Cap Stock Index Portfolio

                                                                [Download Table]

                                                           WITH       WITHOUT  
                                                        WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002                CHARGE       CHARGE  
           -------------------------------              ----------   ----------
                                                                               
1 Year................................................    -21.45%      -16.47% 
Since Inception of the Fund (7/5/00)..................     -7.82%       -6.00% 

For purchase payment allocated to the State Street Research Aurora    
Portfolio                                                                       

                                                                [Download Table]

                                                           WITH       WITHOUT  
                                                        WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002                CHARGE       CHARGE  
           -------------------------------              ----------   ----------
                                                                               
1 Year................................................    -27.39%      -22.75% 
Since Inception of the Fund (7/5/00)..................      1.29%        3.00% 

For purchase payment allocated to the PIMCO Total Return Portfolio    

                                                                [Download Table]

                                                           WITH       WITHOUT  
                                                        WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002                CHARGE       CHARGE  
           -------------------------------              ----------   ----------
                                                                               
1 Year................................................      2.33%        7.54% 
Since Inception of the Fund (2/12/01).................      4.89%        6.78% 

For purchase payment allocated to the PIMCO Innovation Portfolio      

                                                                [Download Table]

                                                           WITH       WITHOUT  
                                                        WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002                CHARGE       CHARGE  
           -------------------------------              ----------   ----------
                                                                               
1 Year................................................    -54.62%      -51.52% 
Since Inception of the Fund (2/12/01).................    -48.91%      -47.76% 

    For purchase payment allocated to the MFS Research International Portfolio

                                                                [Download Table]

                                                           WITH       WITHOUT  
                                                        WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002                CHARGE       CHARGE  
           -------------------------------              ----------   ----------
                                                                               
1 Year................................................    -18.37%      -13.22% 
Since Inception of the Fund (2/12/01).................    -17.20%      -15.14% 

For purchase payment allocated to the T. Rowe Price Mid-Cap Growth    
Portfolio                                                                       

                                                                [Download Table]

                                                           WITH       WITHOUT  
                                                        WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002                CHARGE       CHARGE  
           -------------------------------              ----------   ----------
                                                                               
1 Year................................................    -48.39%      -44.93% 
Since Inception of the Fund (2/12/01).................    -35.90%      -34.38% 

For purchase payment allocated to the Harris Oakmark Large Cap Value  
Portfolio                                                                       

                                                                [Download Table]

                                                           WITH       WITHOUT  
                                                        WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002                CHARGE       CHARGE  
           -------------------------------              ----------   ----------
                                                                               
1 Year................................................    -20.69%      -15.67% 
Since Inception of the Fund (11/9/98).................     -1.92%       -0.92% 

     For purchase payment allocated to the State Street Research Large Cap Value
Portfolio                                                                       

                                                                [Download Table]

                                                           WITH       WITHOUT  
                                                        WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002                CHARGE       CHARGE  
           -------------------------------              ----------   ----------
                                                                               
Since Inception of the Fund (5/1/02)..................    -24.55%      -20.88% 

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B PLUS CLASS (CONTINUED)                                                        
------------------------                                                        

  For purchase payment allocated to the FI Mid Cap Opportunities Portfolio

                                                                [Download Table]

                                                           WITH       WITHOUT  
                                                        WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002                CHARGE       CHARGE  
           -------------------------------              ----------   ----------
                                                                               
Since Inception of the Fund (5/1/02)..................    -22.85%      -19.08% 

     For purchase payment allocated to the Met/AIM Mid Cap Core Equity Portfolio

                                                                [Download Table]

                                                           WITH       WITHOUT  
                                                        WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002                CHARGE       CHARGE  
           -------------------------------              ----------   ----------
                                                                               
1 Year................................................    -17.45%      -12.25% 
Since Inception of the Fund (10/9/01).................     -6.30%       -2.95% 

  For purchase payment allocated to the Met/AIM Small Cap Growth Portfolio

                                                                [Download Table]

                                                           WITH       WITHOUT  
                                                        WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002                CHARGE       CHARGE  
           -------------------------------              ----------   ----------
                                                                               
1 Year................................................    -32.99%      -28.67% 
Since Inception of the Fund (10/9/01).................    -15.83%      -12.83% 

For purchase payment allocated to the Harris Oakmark International    
Portfolio -- Class E(4)                                                         

                                                                [Download Table]

                                                           WITH       WITHOUT  
                                                        WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002                CHARGE       CHARGE  
           -------------------------------              ----------   ----------
                                                                               
1 Year................................................    -24.20%      -19.38% 
Since Inception of the Fund (10/9/01).................    -12.87%       -9.78% 

------------                                                                    

(1) The performance shown for the State Street Research Investment Trust for the
    period June 24, 1984 through September 6, 1994 is based on the month-end net
asset values, as daily net asset value information is not available.    

(2) The performance shown for the Lord Abbett Bond Debenture Portfolio's Class B
Shares is the performance of the Portfolio's predecessor fund (Bond     
debenture Portfolio, a series of Cova Series Trust), whose assets were  
    transferred to the Portfolio on February 12, 2001. The performance shown for
the predecessor fund has been adjusted to reflect Class B's .25% 12b-1  
distribution fee.                                                       

(3) On or about April 28, 2003, the Janus Growth Portfolio merged into the Janus
Aggressive Growth Portfolio. Performance shown for the Janus Aggressive 
  Growth Portfolio is based on the May 1, 2001 inception of the Janus Growth
Portfolio, and reflects the performance of the Janus Growth Portfolio   
through the date of the merger.                                         

(4) The Harris Oakmark International Portfolio Class E shares are only available
 under Contracts issued prior to May 1, 2003. Contracts issued on or after
  that date will offer Class B shares, which impose a 12b-1 distribution fee
of 0.25%.                                                               

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C CLASS                                                                         
-------                                                                         

FUND TOTAL RETURN ADJUSTED FOR CONTRACT CHARGES 
(NON-STANDARD)

  For purchase payment allocated to the State Street Research Money Market
Portfolio                                                                       

                                                                [Download Table]

                                                           WITH       WITHOUT  
                                                        WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002                CHARGE       CHARGE  
           -------------------------------              ----------   ----------
                                                                               
1 Year................................................     -0.98%       -0.45% 
5 Years...............................................      1.87%        2.43% 
10 Years..............................................      1.93%        2.56% 
Since Inception of the Fund (8/26/83).................      3.38%        3.99% 

 For purchase payment allocated to the State Street Research Bond Income
Portfolio                                                                       

                                                                [Download Table]

                                                           WITH       WITHOUT  
                                                        WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002                CHARGE       CHARGE  
           -------------------------------              ----------   ----------
                                                                               
1 Year................................................      5.91%        6.44% 
5 Years...............................................      4.23%        4.79% 
10 Years..............................................      5.28%        5.82% 
Since Inception of the Fund (8/26/83).................      6.92%        7.46% 

For purchase payment allocated to the Salomon Brothers Strategic Bond 
Opportunities Portfolio                                                         

                                                                [Download Table]

                                                           WITH       WITHOUT  
                                                        WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002                CHARGE       CHARGE  
           -------------------------------              ----------   ----------
                                                                               
1 Year................................................      7.08%        7.62% 
5 Years...............................................      2.97%        3.55% 
Since Inception of the Fund (10/31/94)................      6.05%        6.59% 

For purchase payment allocated to the Salomon Brothers U.S. Government
Portfolio                                                                       

                                                                [Download Table]

                                                           WITH       WITHOUT  
                                                        WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002                CHARGE       CHARGE  
           -------------------------------              ----------   ----------
                                                                               
1 Year................................................      5.37%        5.90% 
5 Years...............................................      4.12%        4.68% 
Since Inception of the Fund (10/31/94)................      4.89%        5.44% 

For purchase payment allocated to the Balanced Portfolio              

                                                                [Download Table]

                                                           WITH       WITHOUT  
                                                        WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002                CHARGE       CHARGE  
           -------------------------------              ----------   ----------
                                                                               
1 Year................................................    -15.63%      -15.10% 
5 Years...............................................     -5.76%       -5.13% 
Since Inception of the Fund (10/31/94)................      2.02%        2.58% 

For purchase payment allocated to the Alger Equity Growth Portfolio   

                                                                [Download Table]

                                                           WITH       WITHOUT  
                                                        WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002                CHARGE       CHARGE  
           -------------------------------              ----------   ----------
                                                                               
1 Year................................................    -34.84%      -34.31% 
5 Years...............................................     -2.27%       -1.61% 
Since Inception of the Fund (10/31/94)................      6.58%        7.22% 

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C CLASS (CONTINUED)                                                             
-------------------                                                             

For purchase payment allocated to the Davis Venture Value Portfolio   

                                                                [Download Table]

                                                           WITH       WITHOUT  
                                                        WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002                CHARGE       CHARGE  
           -------------------------------              ----------   ----------
                                                                               
1 Year................................................    -18.42%      -17.89% 
5 Years...............................................     -0.52%        0.03% 
Since Inception of the Fund (10/31/94)................      9.16%        9.76% 

For purchase payment allocated to the Harris Oakmark Focused Value    
Portfolio                                                                       

                                                                [Download Table]

                                                           WITH       WITHOUT  
                                                        WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002                CHARGE       CHARGE  
           -------------------------------              ----------   ----------
                                                                               
1 Year................................................    -10.97%      -10.44% 
5 Years...............................................      3.46%        4.04% 
Since Inception of the Fund (4/30/93).................      8.48%        9.05% 

 For purchase payment allocated to the Loomis Sayles Small Cap Portfolio

                                                                [Download Table]

                                                           WITH       WITHOUT  
                                                        WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002                CHARGE       CHARGE  
           -------------------------------              ----------   ----------
                                                                               
1 Year................................................    -23.43%      -22.90% 
5 Years...............................................     -2.78%       -2.22% 
Since Inception of the Fund (5/2/94)..................      5.76%        6.35% 

For purchase payment allocated to the MFS Investors Trust Portfolio   

                                                                [Download Table]

                                                           WITH       WITHOUT  
                                                        WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002                CHARGE       CHARGE  
           -------------------------------              ----------   ----------
                                                                               
1 Year................................................    -22.05%      -21.52% 
Since Inception of the Fund (4/30/99).................    -11.79%      -11.17% 

For purchase payment allocated to the MFS Research Managers Portfolio 

                                                                [Download Table]

                                                           WITH       WITHOUT  
                                                        WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002                CHARGE       CHARGE  
           -------------------------------              ----------   ----------
                                                                               
1 Year................................................    -25.95%      -25.42% 
Since Inception of the Fund (4/30/99).................    -11.69%      -11.08% 

For purchase payment allocated to the FI Structured Equity Portfolio  

                                                                [Download Table]

                                                           WITH       WITHOUT  
                                                        WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002                CHARGE       CHARGE  
           -------------------------------              ----------   ----------
                                                                               
1 Year................................................    -21.38%      -20.85% 
5 Years...............................................     -4.47%       -3.89% 
Since Inception of the Fund (4/30/93).................      5.89%        6.47% 

    For purchase payment allocated to the Lehman Brothers Aggregate Bond Index
Portfolio                                                                       

                                                                [Download Table]

                                                           WITH       WITHOUT  
                                                        WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002                CHARGE       CHARGE  
           -------------------------------              ----------   ----------
                                                                               
1 Year................................................      7.64%        8.19% 
Since Inception of the Fund (11/9/98).................      4.21%        4.77% 

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C CLASS (CONTINUED)                                                             
-------------------                                                             

For purchase payment allocated to the Janus Mid Cap Portfolio         

                                                                [Download Table]

                                                           WITH       WITHOUT  
                                                        WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002                CHARGE       CHARGE  
           -------------------------------              ----------   ----------
                                                                               
1 Year................................................    -30.84%      -30.31% 
5 Years...............................................     -4.21%       -3.29% 
Since Inception of the Fund (3/3/97)..................      0.01%        1.14% 

For purchase payment allocated to the MetLife Stock Index Portfolio   

                                                                [Download Table]

                                                           WITH       WITHOUT  
                                                        WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002                CHARGE       CHARGE  
           -------------------------------              ----------   ----------
                                                                               
1 Year................................................    -24.29%      -23.76% 
5 Years...............................................     -3.55%       -2.94% 
10 Years..............................................      6.19%        6.80% 
Since Inception of the Fund (5/1/90)..................      7.28%        7.86% 

 For purchase payment allocated to the Neuberger Berman Partners Mid Cap
Value Portfolio                                                                 

                                                                [Download Table]

                                                           WITH       WITHOUT  
                                                        WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002                CHARGE       CHARGE  
           -------------------------------              ----------   ----------
                                                                               
1 Year................................................    -11.88%      -11.35% 
Since Inception of the Fund (11/9/98).................      6.40%        6.96% 

For purchase payment allocated to the Met/Putnam Voyager Portfolio    

                                                                [Download Table]

                                                           WITH       WITHOUT  
                                                        WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002                CHARGE       CHARGE  
           -------------------------------              ----------   ----------
                                                                               
1 Year................................................    -30.64%      -30.11% 
Since Inception of the Fund (5/1/00)..................    -33.91%      -33.06% 

   For purchase payment allocated to the Morgan Stanley EAFE Index Portfolio

                                                                [Download Table]

                                                           WITH       WITHOUT  
                                                        WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002                CHARGE       CHARGE  
           -------------------------------              ----------   ----------
                                                                               
1 Year................................................    -18.62%      -18.09% 
Since Inception of the Fund (11/9/98).................     -9.10%       -8.48% 

    For purchase payment allocated to the Putnam International Stock Portfolio

                                                                [Download Table]

                                                           WITH       WITHOUT  
                                                        WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002                CHARGE       CHARGE  
           -------------------------------              ----------   ----------
                                                                               
1 Year................................................    -19.47%      -18.94% 
5 Years...............................................     -5.71%       -5.10% 
10 Years..............................................     -0.02%        0.57% 
Since Inception of the Fund (5/1/91)..................     -1.44%       -0.82% 

For purchase payment allocated to the Russell 2000 Index Portfolio    

                                                                [Download Table]

                                                           WITH       WITHOUT  
                                                        WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002                CHARGE       CHARGE  
           -------------------------------              ----------   ----------
                                                                               
1 Year................................................    -22.42%      -21.89% 
Since Inception of the Fund (11/9/98).................     -2.58%       -2.02% 

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C CLASS (CONTINUED)                                                             
-------------------                                                             

For purchase payment allocated to the State Street Research Investment
Trust Portfolio(1)                                                              

                                                                [Download Table]

                                                           WITH       WITHOUT  
                                                        WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002                CHARGE       CHARGE  
           -------------------------------              ----------   ----------
                                                                               
1 Year................................................    -27.99%      -27.46% 
5 Years...............................................     -5.04%       -4.44% 
10 Years..............................................      4.72%        5.31% 
Since Inception of the Fund (6/24/83).................      7.43%        8.02% 

For purchase payment allocated to the Lord Abbett Bond Debenture      
Portfolio(2)                                                                    

                                                                [Download Table]

                                                           WITH       WITHOUT  
                                                        WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002                CHARGE       CHARGE  
           -------------------------------              ----------   ----------
                                                                               
1 Year................................................     -2.69%       -2.16% 
5 Years...............................................      0.33%        0.91% 
Since Inception of the Fund (5/1/96)..................      3.78%        4.31% 

For purchase payment allocated to the American Funds Growth Fund      

                                                                [Download Table]

                                                           WITH       WITHOUT  
                                                        WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002                CHARGE       CHARGE  
           -------------------------------              ----------   ----------
                                                                               
1 Year................................................    -26.38%      -25.85% 
5 Years...............................................      3.97%        4.59% 
10 Years..............................................      9.37%        9.97% 
Since Inception of the Fund (2/8/84)..................     10.91%       11.51% 

 For purchase payment allocated to the American Funds Growth-Income Fund

                                                                [Download Table]

                                                           WITH       WITHOUT  
                                                        WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002                CHARGE       CHARGE  
           -------------------------------              ----------   ----------
                                                                               
1 Year................................................    -20.38%      -19.85% 
5 Years...............................................      1.05%        1.58% 
10 Years..............................................      7.72%        8.27% 
Since Inception of the Fund (2/8/84)..................      9.67%       10.23% 

For purchase payment allocated to the American Funds Global Small     
Capitalization Fund                                                             

                                                                [Download Table]

                                                           WITH       WITHOUT  
                                                        WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002                CHARGE       CHARGE  
           -------------------------------              ----------   ----------
                                                                               
1 Year................................................    -21.08%      -20.55% 
Since Inception of the Fund (4/30/98).................      0.56%        1.22% 

    For purchase payment allocated to the Janus Aggressive Growth Portfolio(3)
(previously the Janus Growth Portfolio)                               

                                                                [Download Table]

                                                           WITH       WITHOUT  
                                                        WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002                CHARGE       CHARGE  
           -------------------------------              ----------   ----------
                                                                               
1 Year................................................    -32.46%      -31.93% 
Since Inception of the Fund (5/1/01)..................    -32.53%      -31.93% 

   For purchase payment allocated to the Franklin Templeton Small Cap Growth
Portfolio                                                                       

                                                                [Download Table]

                                                           WITH       WITHOUT  
                                                        WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002                CHARGE       CHARGE  
           -------------------------------              ----------   ----------
                                                                               
1 Year................................................    -29.72%      -29.19% 
Since Inception of the Fund (5/1/01)..................    -25.33%      -24.78% 

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C CLASS (CONTINUED)                                                             
-------------------                                                             

     For purchase payment allocated to the MetLife Mid Cap Stock Index Portfolio

                                                                [Download Table]

                                                           WITH       WITHOUT  
                                                        WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002                CHARGE       CHARGE  
           -------------------------------              ----------   ----------
                                                                               
1 Year................................................    -17.00%      -16.47% 
Since Inception of the Fund (7/5/00)..................     -6.53%       -5.99% 

For purchase payment allocated to the State Street Research Aurora    
Portfolio                                                                       

                                                                [Download Table]

                                                           WITH       WITHOUT  
                                                        WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002                CHARGE       CHARGE  
           -------------------------------              ----------   ----------
                                                                               
1 Year................................................    -23.27%      -22.74% 
Since Inception of the Fund (7/5/00)..................      2.45%        3.01% 

For purchase payment allocated to the PIMCO Total Return Portfolio    

                                                                [Download Table]

                                                           WITH       WITHOUT  
                                                        WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002                CHARGE       CHARGE  
           -------------------------------              ----------   ----------
                                                                               
1 Year................................................      7.01%        7.55% 
Since Inception of the Fund (2/12/01).................      6.25%        6.78% 

For purchase payment allocated to the PIMCO Innovation Portfolio      

                                                                [Download Table]

                                                           WITH       WITHOUT  
                                                        WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002                CHARGE       CHARGE  
           -------------------------------              ----------   ----------
                                                                               
1 Year................................................    -52.05%      -51.52% 
Since Inception of the Fund (2/12/01).................    -48.48%      -47.76% 

    For purchase payment allocated to the MFS Research International Portfolio

                                                                [Download Table]

                                                           WITH       WITHOUT  
                                                        WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002                CHARGE       CHARGE  
           -------------------------------              ----------   ----------
                                                                               
1 Year................................................    -13.74%      -13.21% 
Since Inception of the Fund (2/12/01).................    -15.74%      -15.13% 

For purchase payment allocated to the T. Rowe Price Mid-Cap Growth    
Portfolio                                                                       

                                                                [Download Table]

                                                           WITH       WITHOUT  
                                                        WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002                CHARGE       CHARGE  
           -------------------------------              ----------   ----------
                                                                               
1 Year................................................    -45.46%      -44.93% 
Since Inception of the Fund (2/12/01).................    -35.02%      -34.38% 

For purchase payment allocated to the Harris Oakmark Large Cap Value  
Portfolio                                                                       

                                                                [Download Table]

                                                           WITH       WITHOUT  
                                                        WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002                CHARGE       CHARGE  
           -------------------------------              ----------   ----------
                                                                               
1 Year................................................    -16.19%      -15.66% 
Since Inception of the Fund (11/9/98).................     -1.52%       -0.91% 

     For purchase payment allocated to the State Street Research Large Cap Value
Portfolio                                                                       

                                                                [Download Table]

                                                           WITH       WITHOUT  
                                                        WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002                CHARGE       CHARGE  
           -------------------------------              ----------   ----------
                                                                               
Since Inception of the Fund (5/1/02)..................    -21.22%      -20.87% 

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C CLASS (CONTINUED)                                                             
-------------------                                                             

  For purchase payment allocated to the FI Mid Cap Opportunities Portfolio

                                                                [Download Table]

                                                           WITH       WITHOUT  
                                                        WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002                CHARGE       CHARGE  
           -------------------------------              ----------   ----------
                                                                               
Since Inception of the Fund (5/1/02)..................    -19.43%      -19.08% 

     For purchase payment allocated to the Met/AIM Mid Cap Core Equity Portfolio

                                                                [Download Table]

                                                           WITH       WITHOUT  
                                                        WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002                CHARGE       CHARGE  
           -------------------------------              ----------   ----------
                                                                               
1 Year................................................    -12.77%      -12.24% 
Since Inception of the Fund (10/9/01).................     -3.54%       -2.94% 

  For purchase payment allocated to the Met/AIM Small Cap Growth Portfolio

                                                                [Download Table]

                                                           WITH       WITHOUT  
                                                        WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002                CHARGE       CHARGE  
           -------------------------------              ----------   ----------
                                                                               
1 Year................................................    -29.19%      -28.66% 
Since Inception of the Fund (10/9/01).................    -13.44%      -12.82% 

For purchase payment allocated to the Harris Oakmark International    
Portfolio Class E(4)                                                            

                                                                [Download Table]

                                                           WITH       WITHOUT  
                                                        WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002                CHARGE       CHARGE  
           -------------------------------              ----------   ----------
                                                                               
1 Year................................................    -19.90%      -19.37% 
Since Inception of the Fund (10/9/01).................    -10.36%       -9.77% 

------------                                                                    

(1) The performance shown for the State Street Research Investment Trust for the
    period June 24, 1984 through September 6, 1994 is based on the month-end net
asset values, as daily net asset value information is not available.    

(2) The performance shown for the Lord Abbett Bond Debenture Portfolio's Class B
Shares is the performance of the Portfolio's predecessor fund (Bond     
debenture Portfolio, a series of Cova Series Trust), whose assets were  
    transferred to the Portfolio on February 12, 2001. The performance shown for
the predecessor fund has been adjusted to reflect Class B's .25% 12b-1  
distribution fee.                                                       

(3) On or about April 28, 2003, the Janus Growth Portfolio merged into the Janus
Aggressive Growth Portfolio. Performance shown for the Janus Aggressive 
  Growth Portfolio is based on the May 1, 2001 inception of the Janus Growth
Portfolio, and reflects the performance of the Janus Growth Portfolio   
through the date of the merger.                                         

(4) The Harris Oakmark International Portfolio Class E shares are only available
 under Contracts issued prior to May 1, 2003. Contracts issued on or after
  that date will offer Class B shares, which impose a 12b-1 distribution fee
of 0.25%.                                                               

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L CLASS                                                                         
-------                                                                         

FUND TOTAL RETURN ADJUSTED FOR CONTRACT CHARGES 
(NON-STANDARD)

  For purchase payment allocated to the State Street Research Money Market
Portfolio                                                                       

                                                                [Download Table]

                                                          WITH       WITHOUT  
                                                       WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002               CHARGE       CHARGE  
           -------------------------------             ----------   ----------
                                                                              
1 Year...............................................     -7.83%       -0.36% 
5 Years..............................................      1.96%        2.53% 
10 Years.............................................      2.03%        2.66% 
Since Inception of the Fund (8/26/83)................      3.48%        4.09% 

 For purchase payment allocated to the State Street Research Bond Income
Portfolio                                                                       

                                                                [Download Table]

                                                          WITH       WITHOUT  
                                                       WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002               CHARGE       CHARGE  
           -------------------------------             ----------   ----------
                                                                              
1 Year...............................................     -0.96%        6.54% 
5 Years..............................................      4.33%        4.89% 
10 Years.............................................      5.38%        5.92% 
Since Inception of the Fund (8/26/83)................      7.02%        7.56% 

For purchase payment allocated to the Salomon Brothers Strategic Bond 
Opportunities Portfolio                                                         

                                                                [Download Table]

                                                          WITH       WITHOUT  
                                                       WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002               CHARGE       CHARGE  
           -------------------------------             ----------   ----------
                                                                              
1 Year...............................................      0.22%        7.72% 
5 Years..............................................      3.06%        3.65% 
Since Inception of the Fund (10/31/94)...............      6.15%        6.69% 

For purchase payment allocated to the Salomon Brothers U.S. Government
Portfolio                                                                       

                                                                [Download Table]

                                                          WITH       WITHOUT  
                                                       WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002               CHARGE       CHARGE  
           -------------------------------             ----------   ----------
                                                                              
1 Year...............................................     -1.49%        6.00% 
5 Years..............................................      4.22%        4.77% 
Since Inception of the Fund (10/31/94)...............      4.99%        5.54% 

For purchase payment allocated to the Balanced Portfolio              

                                                                [Download Table]

                                                          WITH       WITHOUT  
                                                       WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002               CHARGE       CHARGE  
           -------------------------------             ----------   ----------
                                                                              
1 Year...............................................    -21.47%      -15.02% 
5 Years..............................................     -5.67%       -5.04% 
Since Inception of the Fund (10/31/94)...............      2.12%        2.67% 

For purchase payment allocated to the Alger Equity Growth Portfolio   

                                                                [Download Table]

                                                          WITH       WITHOUT  
                                                       WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002               CHARGE       CHARGE  
           -------------------------------             ----------   ----------
                                                                              
1 Year...............................................    -39.34%      -34.25% 
5 Years..............................................     -2.17%       -1.52% 
Since Inception of the Fund (10/31/94)...............      6.68%        7.32% 

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L CLASS (CONTINUED)                                                             
-------------------                                                             

For purchase payment allocated to the Davis Venture Value Portfolio   

                                                                [Download Table]

                                                          WITH       WITHOUT  
                                                       WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002               CHARGE       CHARGE  
           -------------------------------             ----------   ----------
                                                                              
1 Year...............................................    -24.06%      -17.81% 
5 Years..............................................     -0.43%        0.13% 
Since Inception of the Fund (10/31/94)...............      9.26%        9.86% 

For purchase payment allocated to the Harris Oakmark Focused Value    
Portfolio                                                                       

                                                                [Download Table]

                                                          WITH       WITHOUT  
                                                       WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002               CHARGE       CHARGE  
           -------------------------------             ----------   ----------
                                                                              
1 Year...............................................    -17.12%      -10.36% 
5 Years..............................................      3.56%        4.14% 
Since Inception of the Fund (4/30/93)................      8.58%        9.15% 

 For purchase payment allocated to the Loomis Sayles Small Cap Portfolio

                                                                [Download Table]

                                                          WITH       WITHOUT  
                                                       WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002               CHARGE       CHARGE  
           -------------------------------             ----------   ----------
                                                                              
1 Year...............................................    -28.72%      -22.82% 
5 Years..............................................     -2.69%       -2.13% 
Since Inception of the Fund (5/2/94).................      5.86%        6.45% 

For purchase payment allocated to the MFS Investors Trust Portfolio   

                                                                [Download Table]

                                                          WITH       WITHOUT  
                                                       WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002               CHARGE       CHARGE  
           -------------------------------             ----------   ----------
                                                                              
1 Year...............................................    -27.43%      -21.44% 
Since Inception of the Fund (4/30/99)................    -11.71%      -11.09% 

For purchase payment allocated to the MFS Research Managers Portfolio 

                                                                [Download Table]

                                                          WITH       WITHOUT  
                                                       WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002               CHARGE       CHARGE  
           -------------------------------             ----------   ----------
                                                                              
1 Year...............................................    -31.07%      -25.35% 
Since Inception of the Fund (4/30/99)................    -11.61%      -11.00% 

For purchase payment allocated to the FI Structured Equity Portfolio  

                                                                [Download Table]

                                                          WITH       WITHOUT  
                                                       WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002               CHARGE       CHARGE  
           -------------------------------             ----------   ----------
                                                                              
1 Year...............................................    -26.81%      -20.78% 
5 Years..............................................     -4.38%       -3.80% 
Since Inception of the Fund (4/30/93)................      5.99%        6.57% 

For purchase payment allocated to the Met/Putnam Voyager Portfolio    

                                                                [Download Table]

                                                          WITH       WITHOUT  
                                                       WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002               CHARGE       CHARGE  
           -------------------------------             ----------   ----------
                                                                              
1 Year...............................................    -35.43%      -30.04% 
Since Inception of the Fund (5/1/00).................    -34.72%      -33.00% 

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L CLASS (CONTINUED)                                                             
-------------------                                                             

    For purchase payment allocated to the Putnam International Stock Portfolio

                                                                [Download Table]

                                                          WITH       WITHOUT  
                                                       WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002               CHARGE       CHARGE  
           -------------------------------             ----------   ----------
                                                                              
1 Year...............................................    -25.04%      -18.87% 
5 Years..............................................     -5.62%       -5.01% 
10 Years.............................................      0.08%        0.66% 
Since Inception of the Fund (5/1/91).................     -1.35%       -0.73% 

    For purchase payment allocated to the Lehman Brothers Aggregate Bond Index
Portfolio                                                                       

                                                                [Download Table]

                                                          WITH       WITHOUT  
                                                       WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002               CHARGE       CHARGE  
           -------------------------------             ----------   ----------
                                                                              
1 Year...............................................      0.78%        8.29% 
Since Inception of the Fund (11/9/98)................      4.31%        4.87% 

For purchase payment allocated to the Janus Mid Cap Portfolio         

                                                                [Download Table]

                                                          WITH       WITHOUT  
                                                       WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002               CHARGE       CHARGE  
           -------------------------------             ----------   ----------
                                                                              
1 Year...............................................    -35.62%      -30.24% 
5 Years..............................................     -4.12%       -3.20% 
Since Inception of the Fund (3/3/97).................      0.11%        1.23% 

For purchase payment allocated to the MetLife Stock Index Portfolio   

                                                                [Download Table]

                                                          WITH       WITHOUT  
                                                       WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002               CHARGE       CHARGE  
           -------------------------------             ----------   ----------
                                                                              
1 Year...............................................    -29.52%      -23.69% 
5 Years..............................................     -3.46%       -2.85% 
10 Years.............................................      6.29%        6.90% 
Since Inception of the Fund (5/1/90).................      7.38%        7.96% 

 For purchase payment allocated to the Neuberger Berman Partners Mid Cap
Value Portfolio                                                                 

                                                                [Download Table]

                                                          WITH       WITHOUT  
                                                       WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002               CHARGE       CHARGE  
           -------------------------------             ----------   ----------
                                                                              
1 Year...............................................    -17.97%      -11.27% 
Since Inception of the Fund (11/9/98)................      6.50%        7.06% 

   For purchase payment allocated to the Morgan Stanley EAFE Index Portfolio

                                                                [Download Table]

                                                          WITH       WITHOUT  
                                                       WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002               CHARGE       CHARGE  
           -------------------------------             ----------   ----------
                                                                              
1 Year...............................................    -24.25%      -18.02% 
Since Inception of the Fund (11/9/98)................     -9.01%       -8.39% 

For purchase payment allocated to the Russell 2000 Index Portfolio    

                                                                [Download Table]

                                                          WITH       WITHOUT  
                                                       WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002               CHARGE       CHARGE  
           -------------------------------             ----------   ----------
                                                                              
1 Year...............................................    -27.78%      -21.81% 
Since Inception of the Fund (11/9/98)................     -2.49%       -1.92% 

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L CLASS (CONTINUED)                                                             
-------------------                                                             

For purchase payment allocated to the State Street Research Investment
Trust Portfolio(1)                                                              

                                                                [Download Table]

                                                          WITH       WITHOUT  
                                                       WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002               CHARGE       CHARGE  
           -------------------------------             ----------   ----------
                                                                              
1 Year...............................................    -32.97%      -27.40% 
5 Years..............................................     -4.95%       -4.35% 
10 Years.............................................      4.81%        5.41% 
Since Inception of the Fund (6/24/83)................      7.53%        8.12% 

For purchase payment allocated to the Lord Abbett Bond Debenture      
Portfolio(2)                                                                    

                                                                [Download Table]

                                                          WITH       WITHOUT  
                                                       WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002               CHARGE       CHARGE  
           -------------------------------             ----------   ----------
                                                                              
1 Year...............................................     -9.42%       -2.07% 
5 Years..............................................      0.42%        1.00% 
Since Inception of the Fund (5/1/96).................      3.88%        4.41% 

For purchase payment allocated to the American Funds Growth Fund      

                                                                [Download Table]

                                                          WITH       WITHOUT  
                                                       WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002               CHARGE       CHARGE  
           -------------------------------             ----------   ----------
                                                                              
1 Year...............................................    -31.47%      -25.78% 
5 Years..............................................      4.07%        4.69% 
10 Years.............................................      9.47%       10.07% 
Since Inception of the Fund (2/8/84).................     11.02%       11.62% 

 For purchase payment allocated to the American Funds Growth-Income Fund

                                                                [Download Table]

                                                          WITH       WITHOUT  
                                                       WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002               CHARGE       CHARGE  
           -------------------------------             ----------   ----------
                                                                              
1 Year...............................................    -25.88%      -19.78% 
5 Years..............................................      1.14%        1.68% 
10 Years.............................................      7.82%        8.37% 
Since Inception of the Fund (2/8/84).................      9.77%       10.34% 

For purchase payment allocated to the American Funds Global Small     
Capitalization Fund                                                             

                                                                [Download Table]

                                                          WITH       WITHOUT  
                                                       WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002               CHARGE       CHARGE  
           -------------------------------             ----------   ----------
                                                                              
1 Year...............................................    -26.53%      -20.47% 
Since Inception of the Fund (4/30/98)................      0.65%        1.32% 

    For purchase payment allocated to the Janus Aggressive Growth Portfolio(3)

(previously the Janus Growth Portfolio)                               

                                                                [Download Table]

                                                          WITH       WITHOUT  
                                                       WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002               CHARGE       CHARGE  
           -------------------------------             ----------   ----------
                                                                              
1 Year...............................................    -37.13%      -31.86% 
Since Inception of the Fund (5/1/01).................    -34.45%      -31.86% 

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L CLASS (CONTINUED)                                                             
-------------------                                                             

   For purchase payment allocated to the Franklin Templeton Small Cap Growth
Portfolio                                                                       

                                                                [Download Table]

                                                          WITH       WITHOUT  
                                                       WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002               CHARGE       CHARGE  
           -------------------------------             ----------   ----------
                                                                              
1 Year...............................................    -34.58%      -29.13% 
Since Inception of the Fund (5/1/01).................    -27.53%      -24.71% 

     For purchase payment allocated to the MetLife Mid Cap Stock Index Portfolio

                                                                [Download Table]

                                                          WITH       WITHOUT  
                                                       WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002               CHARGE       CHARGE  
           -------------------------------             ----------   ----------
                                                                              
1 Year...............................................    -22.73%      -16.39% 
Since Inception of the Fund (7/5/00).................     -8.12%       -5.90% 

For purchase payment allocated to the State Street Research Aurora    
Portfolio                                                                       

                                                                [Download Table]

                                                          WITH       WITHOUT  
                                                       WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002               CHARGE       CHARGE  
           -------------------------------             ----------   ----------
                                                                              
1 Year...............................................    -28.58%      -22.67% 
Since Inception of the Fund (7/5/00).................      0.78%        3.11% 

For purchase payment allocated to the PIMCO Total Return Portfolio    

                                                                [Download Table]

                                                          WITH       WITHOUT  
                                                       WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002               CHARGE       CHARGE  
           -------------------------------             ----------   ----------
                                                                              
1 Year...............................................      0.15%        7.65% 
Since Inception of the Fund (2/12/01)................      3.58%        6.85% 

For purchase payment allocated to the PIMCO Innovation Portfolio      

                                                                [Download Table]

                                                          WITH       WITHOUT  
                                                       WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002               CHARGE       CHARGE  
           -------------------------------             ----------   ----------
                                                                              
1 Year...............................................    -55.36%      -51.48% 
Since Inception of the Fund (2/12/01)................    -49.51%      -47.71% 

    For purchase payment allocated to the MFS Research International Portfolio

                                                                [Download Table]

                                                          WITH       WITHOUT  
                                                       WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002               CHARGE       CHARGE  
           -------------------------------             ----------   ----------
                                                                              
1 Year...............................................    -19.71%      -13.13% 
Since Inception of the Fund (2/12/01)................    -18.01%      -15.06% 

For purchase payment allocated to the T. Rowe Price Mid-Cap Growth    
Portfolio                                                                       

                                                                [Download Table]

                                                          WITH       WITHOUT  
                                                       WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002               CHARGE       CHARGE  
           -------------------------------             ----------   ----------
                                                                              
1 Year...............................................    -49.23%      -44.88% 
Since Inception of the Fund (2/12/01)................    -36.58%      -34.32% 

For purchase payment allocated to the Harris Oakmark Large Cap Value  
Portfolio                                                                       

                                                                [Download Table]

                                                          WITH       WITHOUT  
                                                       WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002               CHARGE       CHARGE  
           -------------------------------             ----------   ----------
                                                                              
1 Year...............................................    -21.98%      -15.58% 
Since Inception of the Fund (11/9/98)................     -1.43%       -0.82% 

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L CLASS (CONTINUED)                                                             
-------------------                                                             

     For purchase payment allocated to the State Street Research Large Cap Value
Portfolio                                                                       

                                                                [Download Table]

                                                          WITH       WITHOUT  
                                                       WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002               CHARGE       CHARGE  
           -------------------------------             ----------   ----------
                                                                              
Since Inception of the Fund (5/1/02).................    -25.99%      -20.82% 

  For purchase payment allocated to the FI Mid Cap Opportunities Portfolio

                                                                [Download Table]

                                                          WITH       WITHOUT  
                                                       WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002               CHARGE       CHARGE  
           -------------------------------             ----------   ----------
                                                                              
Since Inception of the Fund (5/1/02).................    -24.32%      -19.03% 

     For purchase payment allocated to the Met/AIM Mid Cap Core Equity Portfolio

                                                                [Download Table]

                                                          WITH       WITHOUT  
                                                       WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002               CHARGE       CHARGE  
           -------------------------------             ----------   ----------
                                                                              
1 Year...............................................    -18.80%      -12.16% 
Since Inception of the Fund (10/9/01)................     -7.70%       -2.85% 

  For purchase payment allocated to the Met/AIM Small Cap Growth Portfolio

                                                                [Download Table]

                                                          WITH       WITHOUT  
                                                       WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002               CHARGE       CHARGE  
           -------------------------------             ----------   ----------
                                                                              
1 Year...............................................    -34.09%      -28.60% 
Since Inception of the Fund (10/9/01)................    -17.11%      -12.74% 

For purchase payment allocated to the Harris Oakmark International    
Portfolio -- Class E(4)                                                         

                                                                [Download Table]

                                                           WITH       WITHOUT  
                                                        WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002                CHARGE       CHARGE  
           -------------------------------              ----------   ----------
                                                                               
1 Year................................................    -25.44%      -19.30% 
Since Inception of the Fund (10/9/01).................    -14.19%       -9.69% 

------------                                                                    

(1) The performance shown for the State Street Research Investment Trust for the
    period June 24, 1984 through September 6, 1994 is based on the month-end net
asset values, as daily net asset value information is not available.    

(2) The performance shown for the Lord Abbett Bond Debenture Portfolio's Class B
Shares is the performance of the Portfolio's predecessor fund (Bond     
Debenture Portfolio, a series of Cova Series Trust), whose assets were  
    transferred to the Portfolio on February 12, 2001. The performance shown for
the predecessor fund has been adjusted to reflect Class B's .25% 12b-1  
distribution fee.                                                       

(3) On or about April 28, 2003, the Janus Growth Portfolio merged into the Janus
Aggressive Growth Portfolio. Performance shown for the Janus Aggressive 
  Growth Portfolio is based on the May 1, 2001 inception of the Janus Growth
Portfolio, and reflects the performance of the Janus Growth Portfolio   
through the date of the merger.                                         

(4) The Harris Oakmark International Portfolio Class E shares are only available
 under Contracts issued prior to May 1, 2003. Contracts issued on or after
  that date will offer Class B shares, which impose a 12b-1 distribution fee
of 0.25%.                                                               

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P CLASS                                                                         
-------                                                                         

FUND TOTAL RETURN ADJUSTED FOR CONTRACT CHARGES 
(NON-STANDARD)

  For purchase payment allocated to the State Street Research Money Market
Portfolio                                                                       

                                                                [Download Table]

                                                           WITH       WITHOUT  
                                                        WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002                CHARGE       CHARGE  
           -------------------------------              ----------   ----------
                                                                               
1 Year................................................     -8.51%       -0.02% 
5 Years...............................................      1.31%        2.87% 
10 Years..............................................      2.38%        3.00% 
Since Inception of the Fund (8/26/83).................      3.85%        4.44% 

 For purchase payment allocated to the State Street Research Bond Income
Portfolio                                                                       

                                                                [Download Table]

                                                           WITH       WITHOUT  
                                                        WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002                CHARGE       CHARGE  
           -------------------------------              ----------   ----------
                                                                               
1 Year................................................     -1.59%        6.90% 
5 Years...............................................      3.78%        5.24% 
10 Years..............................................      5.74%        6.28% 
Since Inception of the Fund (8/26/83).................      7.38%        7.92% 

For purchase payment allocated to the Salomon Brothers Strategic Bond 
Opportunities Portfolio                                                         

                                                                [Download Table]

                                                           WITH       WITHOUT  
                                                        WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002                CHARGE       CHARGE  
           -------------------------------              ----------   ----------
                                                                               
1 Year................................................     -0.42%        8.08% 
5 Years...............................................      2.46%        4.00% 
Since Inception of the Fund (10/31/94)................      6.37%        7.05% 

For purchase payment allocated to the Salomon Brothers U.S. Government
Portfolio                                                                       

                                                                [Download Table]

                                                           WITH       WITHOUT  
                                                        WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002                CHARGE       CHARGE  
           -------------------------------              ----------   ----------
                                                                               
1 Year................................................     -2.13%        6.36% 
5 Years...............................................      3.66%        5.12% 
Since Inception of the Fund (10/31/94)................      5.20%        5.89% 

For purchase payment allocated to the Balanced Portfolio              

                                                                [Download Table]

                                                           WITH       WITHOUT  
                                                        WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002                CHARGE       CHARGE  
           -------------------------------              ----------   ----------
                                                                               
1 Year................................................    -22.05%      -14.74% 
5 Years...............................................     -6.35%       -4.72% 
Since Inception of the Fund (10/31/94)................      2.27%        3.02% 

For purchase payment allocated to the Alger Equity Growth Portfolio   

                                                                [Download Table]

                                                           WITH       WITHOUT  
                                                        WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002                CHARGE       CHARGE  
           -------------------------------              ----------   ----------
                                                                               
1 Year................................................    -39.79%      -34.02% 
5 Years...............................................     -2.91%       -1.19% 
Since Inception of the Fund (10/31/94)................      6.90%        7.68% 

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P CLASS (CONTINUED)                                                             
-------------------                                                             

For purchase payment allocated to the Davis Venture Value Portfolio   

                                                                [Download Table]

                                                           WITH       WITHOUT  
                                                        WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002                CHARGE       CHARGE  
           -------------------------------              ----------   ----------
                                                                               
1 Year................................................    -24.62%      -17.53% 
5 Years...............................................     -1.19%        0.46% 
Since Inception of the Fund (10/31/94)................      9.51%       10.23% 

For purchase payment allocated to the Harris Oakmark Focused Value    
Portfolio                                                                       

                                                                [Download Table]

                                                           WITH       WITHOUT  
                                                        WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002                CHARGE       CHARGE  
           -------------------------------              ----------   ----------
                                                                               
1 Year................................................    -17.74%      -10.06% 
5 Years...............................................      2.97%        4.49% 
Since Inception of the Fund (4/30/93).................      8.94%        9.52% 

 For purchase payment allocated to the Loomis Sayles Small Cap Portfolio

                                                                [Download Table]

                                                           WITH       WITHOUT  
                                                        WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002                CHARGE       CHARGE  
           -------------------------------              ----------   ----------
                                                                               
1 Year................................................    -29.25%      -22.57% 
5 Years...............................................     -3.42%       -1.80% 
Since Inception of the Fund (5/2/94)..................      6.09%        6.81% 

For purchase payment allocated to the MFS Investors Trust Portfolio   

                                                                [Download Table]

                                                           WITH       WITHOUT  
                                                        WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002                CHARGE       CHARGE  
           -------------------------------              ----------   ----------
                                                                               
1 Year................................................    -27.97%      -21.18% 
Since Inception of the Fund (4/30/99).................    -12.87%      -10.79% 

For purchase payment allocated to the MFS Research Managers Portfolio 

                                                                [Download Table]

                                                           WITH       WITHOUT  
                                                        WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002                CHARGE       CHARGE  
           -------------------------------              ----------   ----------
                                                                               
1 Year................................................    -31.58%      -25.10% 
Since Inception of the Fund (4/30/99).................    -12.77%      -10.70% 

For purchase payment allocated to the FI Structured Equity Portfolio  

                                                                [Download Table]

                                                           WITH       WITHOUT  
                                                        WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002                CHARGE       CHARGE  
           -------------------------------              ----------   ----------
                                                                               
1 Year................................................    -27.36%      -20.51% 
5 Years...............................................     -5.08%       -3.48% 
Since Inception of the Fund (4/30/93).................      6.35%        6.93% 

    For purchase payment allocated to the Lehman Brothers Aggregate Bond Index
Portfolio                                                                       

                                                                [Download Table]

                                                           WITH       WITHOUT  
                                                        WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002                CHARGE       CHARGE  
           -------------------------------              ----------   ----------
                                                                               
1 Year................................................      0.15%        8.65% 
Since Inception of the Fund (11/9/98).................      3.51%        5.22% 

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P CLASS (CONTINUED)                                                             
-------------------                                                             

For purchase payment allocated to the Janus Mid Cap Portfolio         

                                                                [Download Table]

                                                           WITH       WITHOUT  
                                                        WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002                CHARGE       CHARGE  
           -------------------------------              ----------   ----------
                                                                               
1 Year................................................    -36.09%      -30.01% 
5 Years...............................................     -4.83%       -2.87% 
Since Inception of the Fund (3/3/97)..................     -0.30%        1.57% 

For purchase payment allocated to the MetLife Stock Index Portfolio   

                                                                [Download Table]

                                                           WITH       WITHOUT  
                                                        WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002                CHARGE       CHARGE  
           -------------------------------              ----------   ----------
                                                                               
1 Year................................................    -30.04%      -23.43% 
5 Years...............................................     -4.18%       -2.53% 
10 Years..............................................      6.65%        7.25% 
Since Inception of the Fund (5/1/90)..................      7.74%        8.33% 

 For purchase payment allocated to the Neuberger Berman Partners Mid Cap
Value Portfolio                                                                 

                                                                [Download Table]

                                                           WITH       WITHOUT  
                                                        WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002                CHARGE       CHARGE  
           -------------------------------              ----------   ----------
                                                                               
1 Year................................................    -18.58%      -10.97% 
Since Inception of the Fund (11/9/98).................      5.78%        7.42% 

For purchase payment allocated to the Met/Putnam Voyager Portfolio    

                                                                [Download Table]

                                                           WITH       WITHOUT  
                                                        WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002                CHARGE       CHARGE  
           -------------------------------              ----------   ----------
                                                                               
1 Year................................................    -35.91%      -29.81% 
Since Inception of the Fund (5/1/00)..................    -35.04%      -32.77% 

   For purchase payment allocated to the Morgan Stanley EAFE Index Portfolio

                                                                [Download Table]

                                                           WITH       WITHOUT  
                                                        WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002                CHARGE       CHARGE  
           -------------------------------              ----------   ----------
                                                                               
1 Year................................................    -24.81%      -17.74% 
Since Inception of the Fund (11/9/98).................     -9.86%       -8.08% 

    For purchase payment allocated to the Putnam International Stock Portfolio

                                                                [Download Table]

                                                           WITH       WITHOUT  
                                                        WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002                CHARGE       CHARGE  
           -------------------------------              ----------   ----------
                                                                               
1 Year................................................    -25.59%      -18.59% 
5 Years...............................................     -6.31%       -4.69% 
10 Years..............................................      0.42%        1.00% 
Since Inception of the Fund (5/1/91)..................     -1.00%       -0.39% 

For purchase payment allocated to the Russell 2000 Index Portfolio    

                                                                [Download Table]

                                                           WITH       WITHOUT  
                                                        WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002                CHARGE       CHARGE  
           -------------------------------              ----------   ----------
                                                                               
1 Year................................................    -28.32%      -21.55% 
Since Inception of the Fund (11/9/98).................     -3.45%       -1.59% 

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P CLASS (CONTINUED)                                                             
-------------------                                                             

For purchase payment allocated to the State Street Research Investment
Trust Portfolio(1)                                                              

                                                                [Download Table]

                                                           WITH       WITHOUT  
                                                        WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002                CHARGE       CHARGE  
           -------------------------------              ----------   ----------
                                                                               
1 Year................................................    -33.47%      -27.15% 
5 Years...............................................     -5.65%       -4.03% 
10 Years..............................................      5.17%        5.77% 
Since Inception of the Fund (6/24/83).................      7.90%        8.49% 

For purchase payment allocated to the Lord Abbett Bond Debenture      
Portfolio(2)                                                                    

                                                                [Download Table]

                                                           WITH       WITHOUT  
                                                        WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002                CHARGE       CHARGE  
           -------------------------------              ----------   ----------
                                                                               
1 Year................................................    -10.09%       -1.74% 
5 Years...............................................     -0.30%        1.34% 
Since Inception of the Fund (5/1/96)..................      3.80%        4.76% 

For purchase payment allocated to the American Funds Growth Fund      

                                                                [Download Table]

                                                           WITH       WITHOUT  
                                                        WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002                CHARGE       CHARGE  
           -------------------------------              ----------   ----------
                                                                               
1 Year................................................    -31.98%      -25.53% 
5 Years...............................................      3.51%        5.04% 
10 Years..............................................      9.84%       10.44% 
Since Inception of the Fund (2/8/84)..................     11.39%       11.99% 

 For purchase payment allocated to the American Funds Growth-Income Fund

                                                                [Download Table]

                                                           WITH       WITHOUT  
                                                        WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002                CHARGE       CHARGE  
           -------------------------------              ----------   ----------
                                                                               
1 Year................................................    -26.43%      -19.51% 
5 Years...............................................      0.45%        2.02% 
10 Years..............................................      8.18%        8.74% 
Since Inception of the Fund (2/8/84)..................     10.14%       10.71% 

For purchase payment allocated to the American Funds Global Small     
Capitalization Fund                                                             

                                                                [Download Table]

                                                           WITH       WITHOUT  
                                                        WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002                CHARGE       CHARGE  
           -------------------------------              ----------   ----------
                                                                               
1 Year................................................    -27.08%      -20.21% 
Since Inception of the Fund (4/30/98).................     -0.14%        1.66% 

    For purchase payment allocated to the Janus Aggressive Growth Portfolio(3)

(previously the Janus Growth Portfolio)                               

                                                                [Download Table]

                                                           WITH       WITHOUT  
                                                        WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002                CHARGE       CHARGE  
           -------------------------------              ----------   ----------
                                                                               
1 Year................................................    -37.59%      -31.63% 
Since Inception of the Fund (5/1/01)..................    -34.91%      -31.64% 

   For purchase payment allocated to the Franklin Templeton Small Cap Growth
Portfolio                                                                       

                                                                [Download Table]

                                                           WITH       WITHOUT  
                                                        WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002                CHARGE       CHARGE  
           -------------------------------              ----------   ----------
                                                                               
1 Year................................................    -35.06%      -28.89% 
Since Inception of the Fund (5/1/01)..................    -28.07%      -24.46% 

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P CLASS (CONTINUED)                                                             
-------------------                                                             

     For purchase payment allocated to the MetLife Mid Cap Stock Index Portfolio

                                                                [Download Table]

                                                           WITH       WITHOUT  
                                                        WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002                CHARGE       CHARGE  
           -------------------------------              ----------   ----------
                                                                               
1 Year................................................    -23.31%      -16.11% 
Since Inception of the Fund (7/5/00)..................     -8.85%       -5.58% 

For purchase payment allocated to the State Street Research Aurora    
Portfolio                                                                       

                                                                [Download Table]

                                                           WITH       WITHOUT  
                                                        WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002                CHARGE       CHARGE  
           -------------------------------              ----------   ----------
                                                                               
1 Year................................................    -29.10%      -22.41% 
Since Inception of the Fund (7/5/00)..................      0.06%        3.46% 

For purchase payment allocated to the PIMCO Total Return Portfolio    

                                                                [Download Table]

                                                           WITH       WITHOUT  
                                                        WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002                CHARGE       CHARGE  
           -------------------------------              ----------   ----------
                                                                               
1 Year................................................     -0.49%        8.01% 
Since Inception of the Fund (2/12/01).................      3.05%        7.23% 

For purchase payment allocated to the PIMCO Innovation Portfolio      

                                                                [Download Table]

                                                           WITH       WITHOUT  
                                                        WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002                CHARGE       CHARGE  
           -------------------------------              ----------   ----------
                                                                               
1 Year................................................    -55.69%      -51.31% 
Since Inception of the Fund (2/12/01).................    -49.71%      -47.53% 

    For purchase payment allocated to the MFS Research International Portfolio

                                                                [Download Table]

                                                           WITH       WITHOUT  
                                                        WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002                CHARGE       CHARGE  
           -------------------------------              ----------   ----------
                                                                               
1 Year................................................    -20.30%      -12.84% 
Since Inception of the Fund (2/12/01).................    -18.53%      -14.77% 

For purchase payment allocated to the T. Rowe Price Mid-Cap Growth    
Portfolio                                                                       

                                                                [Download Table]

                                                           WITH       WITHOUT  
                                                        WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002                CHARGE       CHARGE  
           -------------------------------              ----------   ----------
                                                                               
1 Year................................................    -49.61%      -44.69% 
Since Inception of the Fund (2/12/01).................    -36.92%      -34.10% 

For purchase payment allocated to the Harris Oakmark Large Cap Value  
Portfolio                                                                       

                                                                [Download Table]

                                                           WITH       WITHOUT  
                                                        WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002                CHARGE       CHARGE  
           -------------------------------              ----------   ----------
                                                                               
1 Year................................................    -22.56%      -15.30% 
Since Inception of the Fund (11/9/98).................     -2.41%       -0.49% 

     For purchase payment allocated to the State Street Research Large Cap Value
Portfolio                                                                       

                                                                [Download Table]

                                                           WITH       WITHOUT  
                                                        WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002                CHARGE       CHARGE  
           -------------------------------              ----------   ----------
                                                                               
Since Inception of the Fund (5/1/02)..................    -26.52%      -20.64% 

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P CLASS (CONTINUED)                                                             
-------------------                                                             

  For purchase payment allocated to the FI Mid Cap Opportunities Portfolio

                                                                [Download Table]

                                                           WITH       WITHOUT  
                                                        WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002                CHARGE       CHARGE  
           -------------------------------              ----------   ----------
                                                                               
Since Inception of the Fund (5/1/02)..................    -24.87%      -18.85% 

     For purchase payment allocated to the Met/AIM Mid Cap Core Equity Portfolio

                                                                [Download Table]

                                                           WITH       WITHOUT  
                                                        WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002                CHARGE       CHARGE  
           -------------------------------              ----------   ----------
                                                                               
1 Year................................................    -19.41%      -11.87% 
Since Inception of the Fund (10/9/01).................     -8.83%       -2.52% 

  For purchase payment allocated to the Met/AIM Small Cap Growth Portfolio

                                                                [Download Table]

                                                           WITH       WITHOUT  
                                                        WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002                CHARGE       CHARGE  
           -------------------------------              ----------   ----------
                                                                               
1 Year................................................    -34.58%      -28.36% 
Since Inception of the Fund (10/9/01).................    -18.11%      -12.45% 

For purchase payment allocated to the Harris Oakmark International    
Portfolio -- Class E(4)                                                         

                                                                [Download Table]

                                                           WITH       WITHOUT  
                                                        WITHDRAWAL   WITHDRAWAL
           PERIOD ENDING DECEMBER 31, 2002                CHARGE       CHARGE  
           -------------------------------              ----------   ----------
                                                                               
1 Year................................................    -25.99%      -19.03% 
Since Inception of the Fund (10/9/01).................    -15.22%       -9.39% 

---------------                                                                 

(1) The performance shown for the State Street Research Investment Trust for the
    period June 24, 1984 through September 6, 1994 is based on the month-end net
asset values, as daily net asset value information is not available.    

(2) The performance shown for the Lord Abbett Bond Debenture Portfolio's Class B
Shares is the performance of the Portfolio's predecessor fund (Bond     
Debenture Portfolio, a series of Cova Series Trust), whose assets were  
    transferred to the Portfolio on February 12, 2001. The performance shown for
the predecessor fund has been adjusted to reflect Class B's .25% 12b-1  
distribution fee.                                                       

(3) On or about April 28, 2003, the Janus Growth Portfolio merged into the Janus
Aggressive Growth Portfolio. Performance shown for the Janus Aggressive 
  Growth Portfolio is based on the May 1, 2001 inception of the Janus Growth
Portfolio, and reflects the performance of the Janus Growth Portfolio   
through the date of the merger.                                         

(4) The Harris Oakmark International Portfolio Class E shares are only available
 under Contracts issued prior to May 1, 2003. Contracts issued on or after
  that date will offer Class B shares, which impose a 12b-1 distribution fee
of 0.25%.                                                               

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As discussed in the prospectus in the section entitled "Investment    
Performance Information", the Variable Account may illustrate historical        
investment performance on a Class-specific basis by showing the Percentage      
Change in Unit Value and the Annual Effective Rate of Return of each subaccount 
of the Variable Account for every calendar year since inception of the          
corresponding Eligible Funds to the date of the illustration and for the ten,   
five and one year periods ending with the date of the illustration. Such        
illustrations do not reflect the impact of any Withdrawal Charge, premium tax   
charge, or the annual $30 Contract Administrative Fee. The method of calculating
the percentage change in unit value is described in the prospectus under        
"Investment Performance Information." The annual effective rate of return in    
these illustrations for each Class is calculated by dividing the unit value at  
the end of the period by the unit value at the beginning of the period, raising 
this quantity to the power of 1/n (where n is the number of years in the        
period), and then subtracting 1.                                                

    We may show daily unit values for each subaccount in advertising and sales
literature, including on our website.                                           

CALCULATION OF YIELDS 

MONEY MARKET YIELD                                                              

    From time to time, we may quote in advertisements and sales literature the
current yield for the State Street Research Money Market Subaccount for a 7-day 
period in a manner that does not take into consideration any realized or        
unrealized gains or losses on shares of the underlying Eligible Fund or on its  
respective portfolio securities. On a Class-specific basis, the current yield is
computed by: (a) determining the net change (exclusive of realized gains and    
losses on the sales of securities and unrealized appreciation and depreciation) 
at the end of the 7-day period in the value of a hypothetical account under a   
Contract having a balance of one Accumulation Unit at the beginning of the      
period, (b) dividing such net change in subaccount value by the subaccount value
at the beginning of the period to determine the base period return; and (c)     
annualizing this quotient on a 365-day basis. The net change in subaccount value
reflects: (1) net income from the Eligible Fund attributable to the hypothetical
account; and (2) charges and deductions imposed under the Contract which are    
attributable to the hypothetical account. The charges and deductions include the
per unit charges for the hypothetical account for: (1) the asset-based insurance
charge for each Class assuming the Standard Death Benefit (1.25% for the        
Standard Class; 1.60% for the Bonus Class; 1.60% for the C Class; 1.50% for the 
L Class; and 1.15% for the P Class); and (2) the annual $30 Contract            
Administrative Fee. For purposes of calculating current yield for a Contract, an
average per unit Contract Administrative Fee is used. Based on the actual       
distribution of Contract sizes, we have assumed the average per unit Contract   
Administrative Fee to be .039% for the Standard Class; .019% for the Bonus      
Class; .011% for the C Class; .018% for the L Class; and .033% for the P Class. 

  On a Class-specific basis, current yield will be calculated according to
the following formula:                                                          

Current Yield = ((NCF - ES)/UV) x (365/7) 

Where:                                                                

NCF = the net change in the value of the Eligible Fund (exclusive of  
realized gains and losses on the sale of securities and unrealized appreciation 
and depreciation) for the 7-day period attributable to a hypothetical account   
having a balance of one Accumulation Unit.                                      

   ES = per unit expenses for the hypothetical account for the 7-day period.

UV = the unit value on the first day of the 7-day period.             

     The current yield for the State Street Research Money Market Subaccount for
the 7-day period ended December 31, 2002 for the Standard, B Plus, C, L and P   
Classes was -0.43%, -0.76%, -0.75%, -0.65%, and -0.32%, respectively.           

  We may also quote the effective yield of the State Street Research Money
Market Subaccount for the same 7-day period, determined on a compounded basis.  
The effective yield is calculated by compounding the unannualized base period   
return according to the following formula:                                      

Effective Yield = (1 + ((NCF - ES)/UV))365/7 - 1

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Where:                                                                

NCF = the net change in the value of the Eligible Fund (exclusive of  
realized gains and losses on the sale of securities and unrealized appreciation 
and depreciation) for the 7-day period attributable to a hypothetical account   
having a balance of one Accumulation Unit.                                      

  ES = per unit expenses of the hypothetical account for the 7-day period.

UV = the unit value for the first day of the 7-day period.            

   The effective yield for the State Street Research Money Market Subaccount
for the 7-day period ended December 31, 2002 for the Standard, B Plus, C, L and 
P Classes was -0.42%, -0.75%, -0.74%, -0.65%, and -0.32%, respectively.         

     Because of the charges and deductions imposed under the Contract, the yield
for the State Street Research Money Market Subaccount will be lower than the    
yield for the corresponding underlying Eligible Fund. The yields on amounts held
in the State Street Research Money Market Subaccount normally will fluctuate on 
a daily basis. Therefore, the disclosed yield for any given past period is not  
an indication or representation of future yields or rates of return. The actual 
yield for the subaccount is affected by changes in interest rates on money      
market securities, average portfolio maturity of the underlying Eligible Fund,  
the types and qualities of portfolio securities held by the Eligible Fund, and  
the Eligible Fund's operating expenses. Yields on amounts held in the State     
Street Research Money Market Subaccount may also be presented for periods other 
than a 7-day period.                                                            

OTHER SUBACCOUNT YIELDS                                                         

   From time to time, we may quote in sales literature or advertisements the
current annualized yield of one or more of the subaccounts (other than the State
Street Research Money Market Subaccount) for a Contract for a 30-day or         
one-month period. The annualized yield of a subaccount refers to income         
generated by the subaccount over a specified 30-day or one-month period on a    
Class-specific basis. Because the yield is annualized, the yield generated by   
the subaccount during the 30-day or one-month period is assumed to be generated 
each period over a 12-month period. On a Class-specific basis, the yield is     
computed by: (1) dividing the net investment income of the Eligible Fund        
attributable to the subaccount units less subaccount expenses for the period; by
(2) the maximum offering price per unit on the last day of the period times the 
daily average number of units outstanding for the period; then (3) compounding  
that yield for a 6-month period; and then (4) multiplying that result by 2. The 
charges and deductions include the per unit charges for the hypothetical account
for: (1) the asset-based insurance charge for each Class assuming the Standard  
Death Benefit (1.25% for the Standard Class; 1.60% for the Bonus Class; 1.60%   
for the C Class; 1.50% for the L Class; and 1.15% for the P Class); and (2) the 
annual $30 Contract Administrative Fee. For purposes of calculating the 30-day  
or one-month yield, an average per unit Contract Administrative Fee is used.    
Based on average contract size and withdrawals, we have assumed the average per 
unit Contract Administrative Fee to be: .039% for the Standard Class; .019% for 
the Bonus Class; .011% for the C Class; .018% for the L Class; and .033% for the
P Class.                                                                        

On a Class-specific basis, the 30-day or one-month yield is calculated
according to the following formula:                                             

Yield = 2 x ((((NI - ES)/(U x UV)) + 1)(6) - 1) 
Where:                                                                

     NI = net investment income of the Eligible Fund for the 30-day or one-month
period attributable to the subaccount's units.                                  

ES = expenses of the subaccount for the 30-day or one-month period.   

U = the average number of units outstanding.                          

     UV = the Accumulation Unit Value at the close of the last day in the 30-day
or one-month period.                                                            

Because of the charges and deductions imposed under the Contracts, the
yield for a subaccount will be lower than the yield for the corresponding       
Eligible Fund. The yield on the amounts held in the subaccounts normally will   
fluctuate over time. Therefore, the disclosed yield for any given past period is
not an indication or representation of future yields or rates of return. A      
subaccount's actual yield is affected by the types and quality of portfolio     
securities held by the corresponding Eligible Fund, and its operating expenses. 
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NET INVESTMENT FACTOR 

    The Company determines the net investment factor ("Net Investment Factor")
for each Class of subaccount on each day on which the New York Stock Exchange is
open for trading as follows:                                                    

       (1) The Company takes the net asset value per share of the Eligible
   Fund held in the subaccount determined as of the close of regular trading
on the New York Stock Exchange on a particular day;                   

      (2) Next, the Company adds the per share amount of any dividend or
 capital gains distribution made by the Eligible Fund since the close of
 regular trading on the New York Stock Exchange on the preceding trading
day.                                                                  

          (3) This total amount is then divided by the net asset value per share
 of the Eligible Fund as of the close of regular trading on the New York
Stock Exchange on the preceding trading day.                          

(4) Finally, the Company subtracts the daily charges for the
Asset-Based Insurance Charge for that Class since the close of regular
   trading on the New York Stock Exchange on the preceding trading day. (See
   "Asset-Based Insurance Charge, Withdrawal Charge and Other Deductions" in
the prospectus.)                                                      

ANNUITY PAYMENTS

At annuitization, the Contract Value is applied toward the purchase of
monthly variable annuity payments. The amount of these payments will be         
determined on the basis of (i) annuity purchase rates not lower than the rates  
set forth in the Life Income Tables contained in the Contract that reflect the  
age of the Payee at annuitization, (ii) the assumed interest rate selected,     
(iii) the type of payment option selected, (iv) the investment performance of   
the Eligible Fund(s) selected, and (v) the Class of Contract. If you elected the
Guaranteed Minimum Income Benefit Rider, you may be able to elect to receive    
annuity payments under that Rider (see the prospectus for more information). If 
you own a B Plus Class Contract and choose to annuitize under a fixed payment   
option during the 9-year Withdrawal Charge period, your annuity payments will be
based on a different set of current annuity purchase rates than our other       
Classes. Additionally, our guaranteed rates for variable annuity payments will  
be different on B Plus Class Contracts than on other Classes. The effect of     
these different rates would lower your annuity payments.                        

   When a variable annuity payment option is selected, the Contract proceeds
will be applied at annuity purchase rates, which vary depending on the          
particular option selected and the age of the Payee, to calculate the basic     
payment level purchased by the Contract Value. With respect to Contracts issued 
in New York or Oregon for use in situations not involving an employer-sponsored 
plan, annuity purchase rates used to calculate the basic payment level will also
reflect the sex of the Payee when the annuity payment option involves a life    
contingency. Under such Contracts, a given Contract Value will produce a higher 
basic payment level for a male Payee than for a female Payee, reflecting the    
longer life expectancy of the female Payee. If the Contract Owner has selected  
an annuity payment option that guarantees that payments will be made for a      
certain number of years regardless of whether the Payee remains alive, the      
Contract Value will purchase lower monthly benefits than under a life contingent
option.                                                                         

The amount of the basic payment level is determined by applying the   
applicable annuity purchase rate to the amount applied from each subaccount to  
provide the annuity. This basic payment level is converted into annuity units,  
the number of which remains constant. Each monthly annuity payment is in an     
amount equal to that number of annuity units multiplied by the applicable       
annuity unit value for that payment (described below). The applicable annuity   
unit value for each Class and subaccount will change from day to day depending  
upon the investment performance of the subaccount, which in turn depends upon   
the investment performance of the Eligible Fund in which the subaccount invests,
and applicable charges and expenses.                                            

  The selection of an assumed interest rate ("Assumed Interest Rate") will
affect both the basic payment level and the amount by which subsequent payments 
increase or decrease. The basic payment level is calculated on the assumption   
that the Net Investment Factors applicable to the Contract will be equivalent on
an annual basis to a net investment return at the Assumed Interest Rate. If this
assumption is met following the date any payment is determined, then the amount 
of the next payment will be exactly equal to the amount of the preceding        
payment. If the actual Net Investment Factors are equivalent to a net investment
return greater than the Assumed Interest Rate, the next payment will be larger  
than the preceding one; if the actual Net Investment Factors are equivalent to a
net                                                                             

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investment return smaller than the Assumed Interest Rate, then the next payment 
will be smaller than the preceding payment.                                     

   Unless otherwise provided, the assumed interest rate will be at an annual
effective rate of 3.5%. You may select as an alternative an assumed interest    
rate equal to an annual effective rate of 0% or, if allowed by applicable law or
regulation, 5%. A higher assumed interest rate will produce a higher first      
payment, a more slowly rising series of subsequent payments when the actual net 
investment performance exceeds the assumed interest rate, and a more rapid drop 
in subsequent payments when the actual net investment performance is less than  
the assumed interest rate. A lower assumed interest rate will produce a lower   
first payment, a more rapidly rising series of subsequent payments when the     
actual net investment performance exceeds the assumed interest rate, and a less 
rapid drop in subsequent payments when the actual net investment performance is 
less than the assumed interest rate.                                            

 The number of annuity units credited under a variable payment option is
determined as follows:                                                          

  (1) The Contract proceeds are applied at the Company's annuity
purchase rates for the selected Assumed Interest Rate to determine the
basic payment level. (The amount of Contract Value or Death Proceeds  
applied will be reduced by any applicable Withdrawal Charge, Contract 
  Administrative Fee, premium tax charge, and/or any outstanding loan plus
accrued interest, as described in the prospectus.)                    

        (2) The number of annuity units is determined by dividing the amount
    of the basic payment level by the applicable annuity unit value(s) for the
Class next determined following the date of application of proceeds.  

The dollar amount of the initial payment will be at the basic payment 
level. (If the initial payment is due more than 14 days after the proceeds are  
applied, the Company will add interest to that initial payment.) The dollar     
amount of each subsequent payment is determined by multiplying the number of    
annuity units by the applicable annuity unit value for the Class which is       
determined at least 10 days before the payment is due.                          

  The value of an annuity unit for the Class of each subaccount depends on
the Assumed Interest Rate and on the Net Investment Factors applicable at the   
time of valuation. The initial annuity unit values were set at $1.00 effective  
on or about the date on which shares of the corresponding Eligible Funds were   
first publicly available. For each Class the Net Investment Factor and,         
therefore, changes in the value of an annuity unit under a variable payment     
option, reflect the deduction of the Asset-Based Insurance Charge. (See "Net    
Investment Factor" above.)                                                      

  On a Class-specific basis, the annuity unit value for each subaccount is
equal to the corresponding annuity unit value for the subaccount previously     
determined multiplied by the applicable Net Investment Factor for that          
subaccount for the New York Stock Exchange trading day then ended, and further  
multiplied by the assumed interest factor ("Assumed Interest Factor") for each  
day of the valuation period. The Assumed Interest Factor represents the daily   
equivalent of the Contract's annual Assumed Interest Rate. In the calculation of
annuity unit values, the Assumed Interest Factor has the effect of reducing the 
Net Investment Factor by an amount equal to the daily equivalent of the         
Contract's Assumed Interest Rate. The result of this adjustment is that if the  
Net Investment Factor for a valuation period is greater (when expressed as an   
annual net investment return) than the Assumed Interest Rate, the annuity unit  
value will increase. If the Net Investment Factor for the period is less (when  
expressed as an annual net investment return) than the Assumed Interest Rate,   
the annuity unit value will decrease. At an Assumed Interest Rate of 3.5%, the  
Assumed Interest Factor is .9999058. Assumed Interest Factors for other Assumed 
Interest Rates are computed on a consistent basis.                              

HYPOTHETICAL ILLUSTRATIONS OF ANNUITY PAYOUTS 

  We may provide illustrations to show how variable annuity payments under
each Class of the Contract change with investment performance over an extended  
period of time. The illustrations show on a Class-specific basis how monthly    
annuity income payments would vary over time if the return on assets in the     
selected portfolios were a uniform gross annual rate of return of up to 10%. One
of the gross rates illustrated is 0%. The values would be different from those  
shown if the actual returns averaged the illustrated rates but fluctuated over  
and under those averages throughout the years.                                  

     The Class-specific illustrations reflect the Contract charges applicable to
that Class of Contract with the death benefit and optional features you select, 
and take into account the Eligible Funds' management fees and other operating   
expenses. The monthly annuity payments illustrated are on a pre-tax basis. The  
Federal income tax                                                              

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treatment of annuity income considerations is generally described in the section
of your current prospectus entitled "FEDERAL INCOME TAX CONSIDERATIONS".        

 When part of the Contract Value has been allocated to the fixed annuity
payment option, the guaranteed minimum annuity payment resulting from this      
allocation is also shown. The illustrated variable annuity payments are         
determined through the use of standard mortality tables and an assumed interest 
rate. If the Assumed Interest Rate is 3.5%, then actual performance greater than
3.5% per year will result in increasing annuity payments and actual performance 
less than 3.5% per year will result in decreasing annuity payments. The Company 
offers alternative Assumed Interest Rates from which you may select. Fixed      
annuity payments remain constant. Initial monthly annuity payments under a fixed
annuity payout are generally higher than initial payments under a variable      
payout option.                                                                  

     The illustrations show the monthly income payments for several hypothetical
constant assumed interest rates. Of course, actual investment performance will  
not be constant and may be volatile. Actual monthly income amounts would differ 
from those illustrated if the actual rate of return averaged the rate shown over
a period of years, but also fluctuated above or below those averages for        
individual contract years.                                                      

   As noted in the prospectus under "Investment Performance Information", we
may also illustrate the growth and value of a specified purchase payment or     
payments prior to annuitization on a Class-specific basis based on hypothetical 
returns. In these illustrations we may use any assumed gross annual rate up to  
12%.                                                                            

HISTORICAL ILLUSTRATIONS OF ANNUITY PAYOUTS 

   We also provide illustrations to show how variable annuity payments under
each Class of the Contract change with investment performance over an extended  
period of time. In comparison with hypothetical illustrations based on a uniform
annual rate of return, these illustrations use historical annual returns to     
illustrate that monthly annuity payments vary over time based on fluctuations in
annual returns.                                                                 

The Class-specific illustrations reflect the daily charge to the      
subaccounts for the applicable Asset Based Insurance Charge with the death      
benefit illustrated. The amounts shown in the illustrations also take into      
account the actual Eligible Funds' management fees and operating expenses.      
Actual fees and expenses of the Eligible Funds associated with your Contract may
be more or less than the historical fees, will vary from year to year, and will 
depend on how you allocate your Contract Value. See the section in your current 
prospectus entitled "Fee Table" for more complete details. The monthly annuity  
payments illustrated are on a pre-tax basis. The Federal income tax treatment of
annuity payment considerations is generally described in the section of your    
current prospectus entitled "FEDERAL INCOME TAX CONSIDERATIONS."                

     The illustrations reflect the performance from the year of inception of the
selected Eligible Fund(s). The historical variable annuity payments are based on
an assumed interest rate. If the Assumed Interest Rate is 3.5%, then actual     
performance greater than 3.5% per year results in an increased annuity payment  
and actual performance less than 3.5% per year results in a decreased annuity   
payment. We offer alternative Assumed Interest Rates (AIR) from which you may   
select: 0% and 5%. An AIR of 0% will result in a lower initial payment than a   
3.5% or 5% AIR. Similarly, an AIR of 5% will result in a higher initial payment 
than a 0% or 3.5% AIR. The illustrations are based on the current annuity       
purchase rates used by the Company. The rates may differ at the time you        
annuitize.                                                                      

For each Class, the illustrations show the amount of the first monthly
payment for each year shown. During each year, the monthly payments would vary  
to reflect fluctuations in the actual rate of return on the Eligible Funds.     

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THESE TABLES REFLECT ALL POSSIBLE COMBINATIONS OF CHARGES NOT SHOWN IN THE
PROSPECTUS TABLES.

ACCUMULATION UNIT VALUES
(FOR AN ACCUMULATION UNIT OUTSTANDING THROUGH THE PERIOD) 

NEW ENGLAND VARIABLE ANNUITY SEPARATE ACCOUNT 
CONDENSED FINANCIAL INFORMATION 

     The following tables show the Accumulation Unit Values through December 31,
2002.                                                                           

                                                        [Enlarge/Download Table]

                                                                   1.25% VARIABLE ACCOUNT CHARGE        
                                                           ---------------------------------------------
                                                                                            NUMBER OF   
                                                           ACCUMULATION                    ACCUMULATION 
                                                            UNIT VALUE    ACCUMULATION        UNITS     
                                                           AT BEGINNING   UNIT VALUE AT   OUTSTANDING AT
                                                            OF PERIOD     END OF PERIOD   END OF PERIOD 
                                                           ------------   -------------   --------------
                                                                                                        
State Street Research Money Market Subaccount                                                           
  07/02/01* to 12/31/01...................................   2.275807        2.290287          981,708  
  01/01/02 to 12/31/02....................................   2.290287        2.288173        7,080,343  
Lehman Brothers Aggregate Bond Index Subaccount                                                         
  07/02/01* to 12/31/01...................................   1.101525        1.134093          647,303  
  01/01/02 to 12/31/02....................................   1.134093        1.231350        5,241,579  
Salomon Brothers Strategic Bond Opportunities Subaccount                                                
  07/02/01* to 12/31/01...................................   1.568445        1.605936          287,447  
  01/01/02 to 12/31/02....................................   1.605936        1.734480        3,519,888  
Salomon Brothers U.S. Government Subaccount                                                             
  07/02/01* to 12/31/01...................................   1.448887        1.493542          847,646  
  01/01/02 to 12/31/02....................................   1.493542        1.587436        8,277,460  
State Street Research Bond Income Subaccount                                                            
  07/02/01* to 12/31/01...................................   3.897455        4.041296          406,052  
  01/01/02 to 12/31/02....................................   4.041296        4.317102        3,666,963  
Balanced Subaccount                                                                                     
  07/02/01* to 12/31/01...................................   1.514247        1.488069          360,833  
  01/01/02 to 12/31/02....................................   1.488069        1.267889        2,635,315  
Alger Equity Growth Subaccount                                                                          
  07/02/01* to 12/31/01...................................   3.019092        2.759624          337,995  
  01/01/02 to 12/31/02....................................   2.759624        1.819481        2,109,027  
Davis Venture Value Subaccount                                                                          
  07/02/01* to 12/31/01...................................   2.815820        2.673490          929,183  
  01/01/02 to 12/31/02....................................   2.673490        2.203285        6,433,899  
FI Structured Equity Subaccount                                                                         
  07/02/01* to 12/31/01                                                                                 
  01/01/02 to 12/31/02....................................   2.631178        2.390547          138,790  
  01/01/02 to 12/31/02....................................   2.390547        1.898996          675,852  
Harris Oakmark Large Cap Value Subaccount                                                               
  05/01/02** to 12/31/02..................................   1.190228        0.977216        1,679,195  
MetLife Stock Index Subaccount                                                                          
  07/02/01* to 12/31/01...................................   3.850101        3.569386          179,083  
  01/01/02 to 12/31/02....................................   3.569386        2.731299        1,942,937  
MFS Investors Trust Subaccount                                                                          
  07/02/01* to 12/31/01...................................   0.897721        0.832853          120,423  
  01/01/02 to 12/31/02....................................   0.832853        0.656019        1,530,612  
MFS Research Managers Subaccount                                                                        
  07/02/01* to 12/31/01...................................   0.979378        0.879562          122,347  
  01/01/02 to 12/31/02....................................   0.879562        0.658370          802,087  

------------                                                                    

* Date on which the Contract first became available.                          

** Date on which the Subaccount first became available.                         

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                                                                   1.25% VARIABLE ACCOUNT CHARGE        
                                                           ---------------------------------------------
                                                                                            NUMBER OF   
                                                           ACCUMULATION                    ACCUMULATION 
                                                            UNIT VALUE    ACCUMULATION        UNITS     
                                                           AT BEGINNING   UNIT VALUE AT   OUTSTANDING AT
                                                            OF PERIOD     END OF PERIOD   END OF PERIOD 
                                                           ------------   -------------   --------------
                                                                                                        
Met/Putnam Voyager Subaccount                                                                           
  07/02/01* to 12/31/01...................................   0.575496        0.493566          404,240  
  01/01/02 to 12/31/02....................................   0.493566        0.346223        2,441,313  
State Street Research Investment Trust Subaccount                                                       
  07/02/01* to 12/31/01...................................   7.273319        6.648203           19,133  
  01/01/02 to 12/31/02....................................   6.648203        4.839935          340,601  
State Street Research Large Cap Value Subaccount                                                        
  05/01/02** to 12/31/02..................................   1.000000        0.793205          530,074  
FI Mid Cap Opportunities Subaccount                                                                     
  05/01/02** to 12/31/02..................................   1.000000        0.811179          217,753  
Harris Oakmark Focused Value Subaccount                                                                 
  07/02/01* to 12/31/01...................................   2.539245        2.662359          822,817  
  01/01/02 to 12/31/02....................................   2.662359        2.393025        6,928,769  
Janus Mid Cap Subaccount                                                                                
  07/02/01* to 12/31/01...................................   1.891206        1.559899          131,929  
  01/01/02 to 12/31/02....................................   1.559899        1.091082          722,960  
MetLife Mid Cap Stock Index Subaccount                                                                  
  07/02/01* to 12/31/01...................................   1.052532        1.032125          223,464  
  01/01/02 to 12/31/02....................................   1.032125        0.865297        2,492,483  
Neuberger Berman Mid Cap Value Subaccount                                                               
  07/02/01* to 12/31/01...................................   1.557054        1.507851           78,495  
  01/01/02 to 12/31/02....................................   1.507851        1.341499        1,245,456  
Franklin Templeton Small Cap Growth Subaccount                                                          
  07/02/01* to 12/31/01...................................   0.953966        0.880593          333,496  
  01/01/02 to 12/31/02....................................   0.880593        0.625781        2,870,903  
Loomis Sayles Small Cap Subaccount                                                                      
  07/02/01* to 12/31/01...................................   2.400198        2.272909          202,579  
  01/01/02 to 12/31/02....................................   2.272909        1.758858        1,641,772  
Russell 2000 Index Subaccount                                                                           
  07/02/01* to 12/31/01...................................   1.223058        1.190097          277,659  
  01/01/02 to 12/31/02....................................   1.190097        0.932986        2,510,267  
State Street Research Aurora Subaccount                                                                 
  07/02/01* to 12/31/01...................................   1.430867        1.401112        1,221,865  
  01/01/02 to 12/31/02....................................   1.401112        1.086395       10,392,688  
Morgan Stanley EAFE Index Subaccount                                                                    
  07/02/01* to 12/31/01...................................   0.948368        0.855523          209,511  
  01/01/02 to 12/31/02....................................   0.855523        0.703283        2,746,997  
Putnam International Stock Subaccount                                                                   
  07/02/01* to 12/31/01...................................   1.273950        1.164731          480,562  
  01/01/02 to 12/31/02....................................   1.164731        0.947543        4,943,896  
Lord Abbett Bond Debenture Subaccount                                                                   
  07/02/01* to 12/31/01...................................   1.373789        1.382533          122,188  
  01/01/02 to 12/31/02....................................   1.382533        1.357531        2,439,994  
PIMCO Total Return Portfolio Subaccount                                                                 
  07/02/01* to 12/31/01...................................   1.008155        1.054911        1,119,475  
  01/01/02 to 12/31/02....................................   1.054911        1.138630       16,599,383  
Janus Aggressive Growth Subaccount(1)                                                                   
  07/02/01* to 12/31/01...................................   0.951972        0.775470          389,694  
  01/01/02 to 12/31/02....................................   0.775470        0.529802        2,103,838  

------------                                                                    

* Date on which the Contract first became available.                          

** Date on which the Subaccount first became available.                         

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                                                                   1.25% VARIABLE ACCOUNT CHARGE        
                                                           ---------------------------------------------
                                                                                            NUMBER OF   
                                                           ACCUMULATION                    ACCUMULATION 
                                                            UNIT VALUE    ACCUMULATION        UNITS     
                                                           AT BEGINNING   UNIT VALUE AT   OUTSTANDING AT
                                                            OF PERIOD     END OF PERIOD   END OF PERIOD 
                                                           ------------   -------------   --------------
                                                                                                        
Met/AIM Mid Cap Core Equity Subaccount                                                                  
  05/01/02** to 12/31/02..................................   1.140653        0.968370          631,334  
T. Rowe Price Mid-Cap Growth Subaccount                                                                 
  07/02/01* to 12/31/01...................................   0.931494        0.824814          342,075  
  01/01/02 to 12/31/02....................................   0.824814        0.455869        2,938,916  
Met/AIM Small Cap Growth Subaccount                                                                     
  05/01/02** to 12/31/02..................................   1.123126        0.848858          430,464  
PIMCO Innovation Subaccount                                                                             
  07/02/01* to 12/31/01...................................   0.758331        0.610195           94,456  
  01/01/02 to 12/31/02....................................   0.610195        0.296898        1,890,616  
Harris Oakmark International Subaccount -- Class E(2)                                                   
  05/01/02** to 12/31/02..................................   1.060502        0.885404          217,557  
MFS Research International Subaccount                                                                   
  07/02/01* to 12/31/01...................................   0.927136        0.848951          277,020  
  01/01/02 to 12/31/02....................................   0.848951        0.739441        2,846,609  
American Funds Growth Subaccount                                                                        
  07/02/01* to 12/31/01...................................  12.760851       11.278583          168,238  
  01/01/02 to 12/31/02....................................  11.278583        8.393445        1,874,264  
American Funds Growth -- Income Subaccount                                                              
  07/02/01* to 12/31/01...................................   8.647461        8.388980          190,117  
  01/01/02 to 12/31/02....................................   8.388980        6.748058        2,226,755  
American Funds Global Small Capitalization Subaccount                                                   
  07/02/01* to 12/31/01...................................   1.463224        1.349972          295,927  
  01/01/02 to 12/31/02....................................   1.349972        1.076486        2,760,128  

------------                                                                    

* Date on which the Contract first became available.                          

** Date on which the Subaccount first became available.                         

(1) On or about April 28, 2003, the Janus Growth Portfolio merged into the Janus
Aggressive Growth Portfolio. Information shown for the Janus Aggressive 
  Growth Portfolio is based on the May 1, 2001 inception of the Janus Growth
Portfolio, and reflects the performance of the Janus Growth Portfolio   
through the date of the merger.                                         

(2) The Harris Oakmark International Portfolio Class E shares are only available
 under Contracts issued prior to May 1, 2003. Contracts issued on or after
   that date will offer Class B shares, which impose a 12b-1 distribution fee.

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ACCUMULATION UNIT VALUES
(FOR AN ACCUMULATION UNIT OUTSTANDING THROUGH THE PERIOD) 

NEW ENGLAND VARIABLE ANNUITY SEPARATE ACCOUNT 
CONDENSED FINANCIAL INFORMATION 

                                                        [Enlarge/Download Table]

                                                                   1.35% VARIABLE ACCOUNT CHARGE        
                                                           ---------------------------------------------
                                                                                            NUMBER OF   
                                                           ACCUMULATION                    ACCUMULATION 
                                                            UNIT VALUE    ACCUMULATION        UNITS     
                                                           AT BEGINNING   UNIT VALUE AT   OUTSTANDING AT
                                                            OF PERIOD     END OF PERIOD   END OF PERIOD 
                                                           ------------   -------------   --------------
                                                                                                        
State Street Research Money Market Subaccount                                                           
  07/02/01* to 12/31/01...................................   2.235536        2.248638         869,330   
  01/01/02 to 12/31/02....................................   2.248638        2.244318       2,741,837   
Lehman Brothers Aggregate Bond Index Subaccount                                                         
  07/02/01* to 12/31/01...................................   1.098614        1.130533         229,823   
  01/01/02 to 12/31/02....................................   1.130533        1.226259       1,687,331   
Salomon Brothers Strategic Bond Opportunities Subaccount                                                
  07/02/01* to 12/31/01...................................   1.558017        1.594464         179,069   
  01/01/02 to 12/31/02....................................   1.594464        1.720370       1,763,673   
Salomon Brothers U.S. Government Subaccount                                                             
  07/02/01* to 12/31/01...................................   1.439254        1.482873         406,922   
  01/01/02 to 12/31/02....................................   1.482873        1.574522       3,752,623   
State Street Research Bond Income Subaccount                                                            
  07/02/01* to 12/31/01...................................   3.828491        3.967809         217,116   
  01/01/02 to 12/31/02....................................   3.967809        4.234365       1,818,388   
Balanced Subaccount                                                                                     
  07/02/01* to 12/31/01...................................   1.504179        1.477438          45,831   
  01/01/02 to 12/31/02....................................   1.477438        1.257572         858,351   
Alger Equity Growth Subaccount                                                                          
  07/02/01* to 12/31/01...................................   2.999024        2.739911         165,746   
  01/01/02 to 12/31/02....................................   2.739911        1.804674       1,376,184   
Davis Venture Value Subaccount                                                                          
  07/02/01* to 12/31/01...................................   2.797107        2.654397         441,860   
  01/01/02 to 12/31/02....................................   2.654397        2.185361       3,544,762   
FI Structured Equity Subaccount                                                                         
  07/02/01* to 12/31/01...................................   2.609765        2.369909          44,802   
  01/01/02 to 12/31/02....................................   2.369909        1.880717         386,064   
Harris Oakmark Large Cap Value Subaccount                                                               
  05/01/02** to 12/31/02..................................   1.186098        0.973174         648,931   
MetLife Stock Index Subaccount                                                                          
  07/02/01* to 12/31/01...................................   3.807341        3.527981          64,482   
  01/01/02 to 12/31/02....................................   3.527981        2.696913         652,639   
MFS Investors Trust Subaccount                                                                          
  07/02/01* to 12/31/01...................................   0.895771        0.830628         227,620   
  01/01/02 to 12/31/02....................................   0.830628        0.653612         852,130   
MFS Research Managers Subaccount                                                                        
  07/02/01* to 12/31/01...................................   0.977250        0.877212          59,840   
  01/01/02 to 12/31/02....................................   0.877212        0.655953         253,040   
Met/Putnam Voyager Subaccount                                                                           
  07/02/01* to 12/31/01...................................   0.574821        0.492741         112,128   
  01/01/02 to 12/31/02....................................   0.492741        0.345299       1,428,969   

------------                                                                    

* Date on which the Contract first became available.                          

** Date on which the Subaccount first became available.                         

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                                                                   1.35% VARIABLE ACCOUNT CHARGE        
                                                           ---------------------------------------------
                                                                                            NUMBER OF   
                                                           ACCUMULATION                    ACCUMULATION 
                                                            UNIT VALUE    ACCUMULATION        UNITS     
                                                           AT BEGINNING   UNIT VALUE AT   OUTSTANDING AT
                                                            OF PERIOD     END OF PERIOD   END OF PERIOD 
                                                           ------------   -------------   --------------
                                                                                                        
State Street Research Investment Trust Subaccount                                                       
  07/02/01* to 12/31/01...................................   7.143398        6.526184          20,628   
  01/01/02 to 12/31/02....................................   6.526184        4.746347         124,713   
State Street Research Large Cap Value Subaccount                                                        
  05/01/02** to 12/31/02..................................   1.000000        0.792674         149,186   
FI Mid Cap Opportunities Subaccount                                                                     
  05/01/02* to 12/31/02...................................   1.000000        0.810636          97,989   
Harris Oakmark Focused Value Subaccount                                                                 
  07/02/01* to 12/31/01...................................   2.518576        2.639371         401,779   
  01/01/02 to 12/31/02....................................   2.639371        2.369989       3,706,789   
Janus Mid Cap Subaccount                                                                                
  07/02/01* to 12/31/01...................................   1.883025        1.552375          61,360   
  01/01/02 to 12/31/02....................................   1.552375        1.084732         353,346   
MetLife Mid Cap Stock Index Subaccount                                                                  
  07/02/01* to 12/31/01...................................   1.051488        1.030586          46,529   
  01/01/02 to 12/31/02....................................   1.030586        0.863142         722,105   
Neuberger Berman Mid Cap Value Subaccount                                                               
  07/02/01* to 12/31/01...................................   1.552941        1.503118          34,558   
  01/01/02 to 12/31/02....................................   1.503118        1.335950         361,709   
Franklin Templeton Small Cap Growth Subaccount                                                          
  07/02/01* to 12/31/01...................................   0.953804        0.880003         258,180   
  01/01/02 to 12/31/02....................................   0.880003        0.624736       1,365,065   
Loomis Sayles Small Cap Subaccount                                                                      
  07/02/01* to 12/31/01...................................   2.383050        2.255543          52,241   
  01/01/02 to 12/31/02....................................   2.255543        1.743672         707,530   
Russell 2000 Index Subaccount                                                                           
  07/02/01* to 12/31/01...................................   1.219826        1.186359          69,714   
  01/01/02 to 12/31/02....................................   1.186359        0.929124         980,925   
State Street Research Aurora Subaccount                                                                 
  07/02/01* to 12/31/01...................................   1.429451        1.399026         558,279   
  01/01/02 to 12/31/02....................................   1.399026        1.083691       5,041,638   
Morgan Stanley EAFE Index Subaccount                                                                    
  07/02/01* to 12/31/01...................................   0.945862        0.852836          67,835   
  01/01/02 to 12/31/02....................................   0.852836        0.700372       1,081,587   
Putnam International Stock Subaccount                                                                   
  07/02/01* to 12/31/01...................................   1.261053        1.152362         239,674   
  01/01/02 to 12/31/02....................................   1.152362        0.936542       2,208,624   
Lord Abbett Bond Debenture Subaccount                                                                   
  07/02/01* to 12/31/01...................................   1.366705        1.374718          65,506   
  01/01/02 to 12/31/02....................................   1.374718        1.348508       1,037,918   
PIMCO Total Return Portfolio Subaccount                                                                 
  07/02/01* to 12/31/01...................................   1.007769        1.054194         654,487   
  01/01/02 to 12/31/02....................................   1.054194        1.136720       7,591,886   
Janus Aggressive Growth Subaccount(1)                                                                   
  07/02/01* to 12/31/01...................................   0.951810        0.774950         212,536   
  01/01/02 to 12/31/02....................................   0.774950        0.528917         890,937   
Met/AIM Mid Cap Core Equity Subaccount                                                                  
  05/01/02** to 12/31/02..................................   1.140016        0.967182         213,941   

------------                                                                    

* Date on which the Contract first became available.                          

** Date on which the Subaccount first became available.                         

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                                                                   1.35% VARIABLE ACCOUNT CHARGE        
                                                           ---------------------------------------------
                                                                                            NUMBER OF   
                                                           ACCUMULATION                    ACCUMULATION 
                                                            UNIT VALUE    ACCUMULATION        UNITS     
                                                           AT BEGINNING   UNIT VALUE AT   OUTSTANDING AT
                                                            OF PERIOD     END OF PERIOD   END OF PERIOD 
                                                           ------------   -------------   --------------
                                                                                                        
T. Rowe Price Mid-Cap Growth Subaccount                                                                 
  07/02/01* to 12/31/01...................................   0.931134        0.824083         228,099   
  01/01/02 to 12/31/02....................................   0.824083        0.455009       1,350,231   
Met/AIM Small Cap Growth Subaccount                                                                     
  05/01/02** to 12/31/02..................................   1.122499        0.847816         145,764   
PIMCO Innovation Subaccount                                                                             
  07/02/01* to 12/31/01...................................   0.758038        0.609654          58,620   
  01/01/02 to 12/31/02....................................   0.609654        0.296337         684,856   
Harris Oakmark International Subaccount -- Class E(2)                                                   
  05/01/02** to 12/31/02..................................   1.059909        0.884317          32,461   
MFS Research International Subaccount                                                                   
  07/02/01* to 12/31/01...................................   0.926780        0.848201         161,048   
  01/01/02 to 12/31/02....................................   0.848201        0.738048       1,165,514   
American Funds Growth Subaccount                                                                        
  07/02/01* to 12/31/01...................................  12.540653       11.078414          95,874   
  01/01/02 to 12/31/02....................................  11.078414        8.236223         893,722   
American Funds Growth -- Income Subaccount                                                              
  07/02/01* to 12/31/01...................................   8.498265        8.240125         126,008   
  01/01/02 to 12/31/02....................................   8.240125        6.621684       1,040,860   
American Funds Global Small Capitalization Subaccount                                                   
  07/02/01* to 12/31/01...................................   1.458585        1.345018         130,815   
  01/01/02 to 12/31/02....................................   1.345018        1.071462         961,486   

------------                                                                    

* Date on which the Contract first became available.                          

** Date on which the Subaccount first became available.                         

(1) On or about April 28, 2003, the Janus Growth Portfolio merged into the Janus
Aggressive Growth Portfolio. Information shown for the Janus Aggressive 
  Growth Portfolio is based on the May 1, 2001 inception of the Janus Growth
Portfolio, and reflects the performance of the Janus Growth Portfolio   
through the date of the merger.                                         

(2) The Harris Oakmark International Portfolio Class E shares are only available
 under Contracts issued prior to May 1, 2003. Contracts issued on or after
   that date will offer Class B shares, which impose a 12b-1 distribution fee.

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ACCUMULATION UNIT VALUES
(FOR AN ACCUMULATION UNIT OUTSTANDING THROUGH THE PERIOD) 

NEW ENGLAND VARIABLE ANNUITY SEPARATE ACCOUNT 
CONDENSED FINANCIAL INFORMATION 

                                                        [Enlarge/Download Table]

                                                                   1.40% VARIABLE ACCOUNT CHARGE        
                                                           ---------------------------------------------
                                                                                            NUMBER OF   
                                                           ACCUMULATION                    ACCUMULATION 
                                                            UNIT VALUE    ACCUMULATION        UNITS     
                                                           AT BEGINNING   UNIT VALUE AT   OUTSTANDING AT
                                                            OF PERIOD     END OF PERIOD   END OF PERIOD 
                                                           ------------   -------------   --------------
                                                                                                        
State Street Research Money Market Subaccount                                                           
  07/02/01* to 12/31/01...................................   2.215661        2.228091          22,885   
  01/01/02 to 12/31/02....................................   2.228091        2.222698         117,801   
Lehman Brothers Aggregate Bond Index Subaccount                                                         
  07/02/01* to 12/31/01...................................   1.097162        1.128756           9,922   
  01/01/02 to 12/31/02....................................   1.128756        1.223720         112,812   
Salomon Brothers Strategic Bond Opportunities Subaccount                                                
  07/02/01* to 12/31/01...................................   1.552828        1.588757          32,226   
  01/01/02 to 12/31/02....................................   1.588757        1.713355         194,906   
Salomon Brothers U.S. Government Subaccount                                                             
  07/02/01* to 12/31/01...................................   1.434460        1.477565          75,153   
  01/01/02 to 12/31/02....................................   1.477565        1.568102         592,262   
State Street Research Bond Income Subaccount                                                            
  07/02/01* to 12/31/01...................................   3.794455        3.931555          41,262   
  01/01/02 to 12/31/02....................................   3.931555        4.193578         201,281   
Balanced Subaccount                                                                                     
  07/02/01* to 12/31/01...................................   1.499169        1.472150              --   
  01/01/02 to 12/31/02....................................   1.472150        1.252443         146,985   
Alger Equity Growth Subaccount                                                                          
  07/02/01* to 12/31/01...................................   2.989036        2.730104          15,331   
  01/01/02 to 12/31/02....................................   2.730104        1.797313         103,979   
Davis Venture Value Subaccount                                                                          
  07/02/01* to 12/31/01...................................   2.787793        2.644898          76,898   
  01/01/02 to 12/31/02....................................   2.644898        2.176450         330,044   
FI Structured Equity Subaccount                                                                         
  07/02/01* to 12/31/01...................................   2.599120        2.359652           9,164   
  01/01/02 to 12/31/02....................................   2.359652        1.871640          81,051   
Harris Oakmark Large Cap Value Subaccount                                                               
  05/01/02** to 12/31/02..................................   1.184038        0.971158         105,515   
MetLife Stock Index Subaccount                                                                          
  07/02/01* to 12/31/01...................................   3.786132        3.507451          17,785   
  01/01/02 to 12/31/02....................................   3.507451        2.679876         114,121   
MFS Investors Trust Subaccount                                                                          
  07/02/01* to 12/31/01...................................   0.894797        0.829518          11,890   
  01/01/02 to 12/31/02....................................   0.829518        0.652412         116,329   
MFS Research Managers Subaccount                                                                        
  07/02/01* to 12/31/01...................................   0.976187        0.876039             857   
  01/01/02 to 12/31/02....................................   0.876039        0.654748          11,992   
Met/Putnam Voyager Subaccount                                                                           
  07/02/01* to 12/31/01...................................   0.574484        0.492328           8,715   
  01/01/02 to 12/31/02....................................   0.492328        0.344837          92,649   
State Street Research Investment Trust Subaccount                                                       
  07/02/01* to 12/31/01...................................   7.079287        6.465995           1,703   
  01/01/02 to 12/31/02....................................   6.465995        4.700216           9,125   

------------                                                                    

* Date on which the Contract first became available.                          

** Date on which the Subaccount first became available.                         

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                                                                   1.40% VARIABLE ACCOUNT CHARGE        
                                                           ---------------------------------------------
                                                                                            NUMBER OF   
                                                           ACCUMULATION                    ACCUMULATION 
                                                            UNIT VALUE    ACCUMULATION        UNITS     
                                                           AT BEGINNING   UNIT VALUE AT   OUTSTANDING AT
                                                            OF PERIOD     END OF PERIOD   END OF PERIOD 
                                                           ------------   -------------   --------------
                                                                                                        
State Street Research Large Cap Value Subaccount                                                        
  05/01/02** to 12/31/02..................................   1.000000        0.792409           3,190   
FI Mid Cap Opportunities Subaccount                                                                     
  05/01/02** to 12/31/02..................................   1.000000        0.810364          17,439   
Harris Oakmark Focused Value Subaccount                                                                 
  07/02/01* to 12/31/01...................................   2.508301        2.627948          57,009   
  01/01/02 to 12/31/02....................................   2.627948        2.358550         407,484   
Janus Mid Cap Subaccount                                                                                
  07/02/01* to 12/31/01...................................   1.878947        1.548625          10,059   
  01/01/02 to 12/31/02....................................   1.548625        1.081569          82,679   
MetLife Mid Cap Stock Index Subaccount                                                                  
  07/02/01* to 12/31/01...................................   1.050967        1.029818         223,464   
  01/01/02 to 12/31/02....................................   1.029818        0.862067         183,553   
Neuberger Berman Mid Cap Value Subaccount                                                               
  07/02/01* to 12/31/01...................................   1.550889        1.500756           9,241   
  01/01/02 to 12/31/02....................................   1.500756        1.333183         170,229   
Franklin Templeton Small Cap Growth Subaccount                                                          
  07/02/01* to 12/31/01...................................   0.953723        0.879708           1,538   
  01/01/02 to 12/31/02....................................   0.879708        0.624213         120,614   
Loomis Sayles Small Cap Subaccount                                                                      
  07/02/01* to 12/31/01...................................   2.374519        2.246907           5,907   
  01/01/02 to 12/31/02....................................   2.246907        1.736125          36,115   
Russell 2000 Index Subaccount                                                                           
  07/02/01* to 12/31/01...................................   1.218212        1.184494           9,068   
  01/01/02 to 12/31/02....................................   1.184494        0.927198          82,611   
State Street Research Aurora Subaccount                                                                 
  07/02/01* to 12/31/01...................................   1.428743        1.397984          79,337   
  01/01/02 to 12/31/02....................................   1.397984        1.082341         549,921   
Morgan Stanley EAFE Index Subaccount                                                                    
  07/02/01* to 12/31/01...................................   0.944611        0.851495          21,894   
  01/01/02 to 12/31/02....................................   0.851495        0.698921         299,954   
Putnam International Stock Subaccount                                                                   
  07/02/01* to 12/31/01...................................   1.254650        1.146225          84,462   
  01/01/02 to 12/31/02....................................   1.146225        0.931088         191,102   
Lord Abbett Bond Debenture Subaccount                                                                   
  07/02/01* to 12/31/01...................................   1.363175        1.370826              --   
  01/01/02 to 12/31/02....................................   1.370826        1.344018          98,324   
PIMCO Total Return Portfolio Subaccount                                                                 
  07/02/01* to 12/31/01...................................   1.007576        1.053729         194,398   
  01/01/02 to 12/31/02....................................   1.053729        1.135650       1,187,935   
Janus Aggressive Growth Subaccount(1)                                                                   
  07/02/01* to 12/31/01...................................   0.951729        0.774690          20,766   
  01/01/02 to 12/31/02....................................   0.774690        0.528474         217,421   
Met/AIM Mid Cap Core Equity Subaccount                                                                  
  05/01/02** to 12/31/02..................................   1.139697        0.966588           6,516   
T. Rowe Price Mid-Cap Growth Subaccount                                                                 
  07/02/01* to 12/31/01...................................   0.930955        0.823718           1,317   
  01/01/02 to 12/31/02....................................   0.823718        0.454579          49,482   

------------                                                                    

* Date on which the Contract first became available.                          

** Date on which the Subaccount first became available.                         

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                                                                   1.40% VARIABLE ACCOUNT CHARGE        
                                                           ---------------------------------------------
                                                                                            NUMBER OF   
                                                           ACCUMULATION                    ACCUMULATION 
                                                            UNIT VALUE    ACCUMULATION        UNITS     
                                                           AT BEGINNING   UNIT VALUE AT   OUTSTANDING AT
                                                            OF PERIOD     END OF PERIOD   END OF PERIOD 
                                                           ------------   -------------   --------------
                                                                                                        
Met/AIM Small Cap Growth Subaccount                                                                     
  05/01/02** to 12/31/02..................................   1.122185        0.847295          34,333   
PIMCO Innovation Subaccount                                                                             
  07/02/01* to 12/31/01...................................   0.757892        0.609384           3,655   
  01/01/02 to 12/31/02....................................   0.609384        0.296057          37,645   
Harris Oakmark International Subaccount -- Class E(2)                                                   
  05/01/02** to 12/31/02..................................   1.059613        0.883774           2,226   
MFS Research International Subaccount                                                                   
  07/02/01* to 12/31/01...................................   0.926602        0.847826           8,799   
  01/01/02 to 12/31/02....................................   0.847826        0.737353         106,045   
American Funds Growth Subaccount                                                                        
  07/02/01* to 12/31/01...................................  12.432061       10.979737          16,988   
  01/01/02 to 12/31/02....................................  10.979737        8.158775         128,625   
American Funds Growth -- Income Subaccount                                                              
  07/02/01* to 12/31/01...................................   8.424689        8.166745           9,169   
  01/01/02 to 12/31/02....................................   8.166745        6.559432         108,984   
American Funds Global Small Capitalization Subaccount                                                   
  07/02/01* to 12/31/01...................................   1.456272        1.342549          15,917   
  01/01/02 to 12/31/02....................................   1.342549        1.068960         202,341   

------------                                                                    

* Date on which the Contract first became available.                          

** Date on which the Subaccount first became available.                         

(1) On or about April 28, 2003, the Janus Growth Portfolio merged into the Janus
Aggressive Growth Portfolio. Information shown for the Janus Aggressive 
  Growth Portfolio is based on the May 1, 2001 inception of the Janus Growth
Portfolio, and reflects the performance of the Janus Growth Portfolio   
through the date of the merger.                                         

(2) The Harris Oakmark International Class E shares are only available under    
Contracts issued prior to May 1, 2003. Contracts issued on or after that
date will offer Class B shares, which impose a 12b-1 distribution fee.  

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ACCUMULATION UNIT VALUES
(FOR AN ACCUMULATION UNIT OUTSTANDING THROUGH THE PERIOD) 

NEW ENGLAND VARIABLE ANNUITY SEPARATE ACCOUNT 
CONDENSED FINANCIAL INFORMATION 

                                                        [Enlarge/Download Table]

                                                                   1.50% VARIABLE ACCOUNT CHARGE        
                                                           ---------------------------------------------
                                                                                            NUMBER OF   
                                                           ACCUMULATION                    ACCUMULATION 
                                                            UNIT VALUE    ACCUMULATION        UNITS     
                                                           AT BEGINNING   UNIT VALUE AT   OUTSTANDING AT
                                                            OF PERIOD     END OF PERIOD   END OF PERIOD 
                                                           ------------   -------------   --------------
                                                                                                        
State Street Research Money Market Subaccount                                                           
  07/02/01* to 12/31/01...................................   2.176439        2.187558         324,274   
  01/01/02 to 12/31/02....................................   2.187558        2.180082       1,244,380   
Lehman Brothers Aggregate Bond Index Subaccount                                                         
  07/02/01* to 12/31/01...................................   1.094262        1.125212         138,917   
  01/01/02 to 12/31/02....................................   1.125212        1.218659         563,451   
Salomon Brothers Strategic Bond Opportunities Subaccount                                                
  07/02/01* to 12/31/01...................................   1.542500        1.577404         191,781   
  01/01/02 to 12/31/02....................................   1.577404        1.699411         532,430   
Salomon Brothers U.S. Government Subaccount                                                             
  07/02/01* to 12/31/01...................................   1.424919        1.467006         381,965   
  01/01/02 to 12/31/02....................................   1.467006        1.555340       1,252,719   
State Street Research Bond Income Subaccount                                                            
  07/02/01* to 12/31/01...................................   3.727288        3.860036         225,528   
  01/01/02 to 12/31/02....................................   3.860036        4.113179         582,376   
Balanced Subaccount                                                                                     
  07/02/01* to 12/31/01...................................   1.489198        1.461629          58,534   
  01/01/02 to 12/31/02....................................   1.461629        1.242248         298,841   
Alger Equity Growth Subaccount                                                                          
  07/02/01* to 12/31/01...................................   2.969160        2.710594         332,685   
  01/01/02 to 12/31/02....................................   2.710594        1.782681         415,897   
Davis Venture Value Subaccount                                                                          
  07/02/01* to 12/31/01...................................   2.769260        2.626002         429,539   
  01/01/02 to 12/31/02....................................   2.626002        2.158738       1,057,579   
FI Structured Equity Subaccount                                                                         
  07/02/01* to 12/31/01...................................   2.577961        2.339273          45,616   
  01/01/02 to 12/31/02....................................   2.339273        1.853617         101,294   
Harris Oakmark Large Cap Value Subaccount                                                               
  05/01/02** to 12/31/02..................................   1.179929        0.967140         249,450   
MetLife Stock Index Subaccount                                                                          
  07/02/01* to 12/31/01...................................   3.744067        3.466749          56,920   
  01/01/02 to 12/31/02....................................   3.466749        2.646125         315,866   
MFS Investors Trust Subaccount                                                                          
  07/02/01* to 12/31/01...................................   0.892852        0.827301          69,338   
  01/01/02 to 12/31/02....................................   0.827301        0.650017         209,693   
MFS Research Managers Subaccount                                                                        
  07/02/01* to 12/31/01...................................   0.974065        0.873698          35,218   
  01/01/02 to 12/31/02....................................   0.873698        0.652344         254,373   
Met/Putnam Voyager Subaccount                                                                           
  07/02/01* to 12/31/01...................................   0.573810        0.491505          65,984   
  01/01/02 to 12/31/02....................................   0.491505        0.343915         287,464   
State Street Research Investment Trust Subaccount                                                       
  07/02/01* to 12/31/01...................................   6.952785        6.347276           6,420   
  01/01/02 to 12/31/02....................................   6.347276        4.609296          26,015   

------------                                                                    
* Date on which the Contract first became available.                          

** Date on which the Subaccount first became available.                         

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                                                                   1.50% VARIABLE ACCOUNT CHARGE        
                                                           ---------------------------------------------
                                                                                            NUMBER OF   
                                                           ACCUMULATION                    ACCUMULATION 
                                                            UNIT VALUE    ACCUMULATION        UNITS     
                                                           AT BEGINNING   UNIT VALUE AT   OUTSTANDING AT
                                                            OF PERIOD     END OF PERIOD   END OF PERIOD 
                                                           ------------   -------------   --------------
                                                                                                        
State Street Research Large Cap Value Subaccount                                                        
  05/01/02** to 12/31/02..................................   1.000000        0.791878          12,191   
FI Mid Cap Opportunities Subaccount                                                                     
  05/01/02** to 12/31/02..................................   1.000000        0.809822          11,006   
Harris Oakmark Focused Value Subaccount                                                                 
  07/02/01* to 12/31/01...................................   2.487876        2.605249         590,460   
  01/01/02 to 12/31/02....................................   2.605249        2.335838       1,289,841   
Janus Mid Cap Subaccount                                                                                
  07/02/01* to 12/31/01...................................   1.870817        1.541152          42,264   
  01/01/02 to 12/31/02....................................   1.541152        1.075272         155,536   
MetLife Mid Cap Stock Index Subaccount                                                                  
  07/02/01* to 12/31/01...................................   1.049924        1.028283          35,737   
  01/01/02 to 12/31/02....................................   1.028283        0.859920         181,927   
Neuberger Berman Mid Cap Value Subaccount                                                               
  07/02/01* to 12/31/01...................................   1.546791        1.496043          16,557   
  01/01/02 to 12/31/02....................................   1.496043        1.327666         153,771   
Franklin Templeton Small Cap Growth Subaccount                                                          
  07/02/01* to 12/31/01...................................   0.953560        0.879119         120,968   
  01/01/02 to 12/31/02....................................   0.879119        0.623170         325,762   
Loomis Sayles Small Cap Subaccount                                                                      
  07/02/01* to 12/31/01...................................   2.357548        2.229733          97,823   
  01/01/02 to 12/31/02....................................   2.229733        1.721130         169,262   
Russell 2000 Index Subaccount                                                                           
  07/02/01* to 12/31/01...................................   1.214991        1.180772          41,596   
  01/01/02 to 12/31/02....................................   1.180772        0.923359         296,688   
State Street Research Aurora Subaccount                                                                 
  07/02/01* to 12/31/01...................................   1.427329        1.395901         796,821   
  01/01/02 to 12/31/02....................................   1.395901        1.079647       1,933,552   
Morgan Stanley EAFE Index Subaccount                                                                    
  07/02/01* to 12/31/01...................................   0.942114        0.848819          61,803   
  01/01/02 to 12/31/02....................................   0.848819        0.696027         348,113   
Putnam International Stock Subaccount                                                                   
  07/02/01* to 12/31/01...................................   1.241943        1.134049         190,791   
  01/01/02 to 12/31/02....................................   1.134049        0.920274         690,284   
Lord Abbett Bond Debenture Subaccount                                                                   
  07/02/01* to 12/31/01...................................   1.356144        1.363075         115,521   
  01/01/02 to 12/31/02....................................   1.363075        1.335082         363,197   
PIMCO Total Return Portfolio Subaccount                                                                 
  07/02/01* to 12/31/01...................................   1.007189        1.052336         385,965   
  01/01/02 to 12/31/02....................................   1.052336        1.133016       2,638,927   
Janus Aggressive Growth Subaccount(1)                                                                   
  07/02/01* to 12/31/01...................................   0.951567        0.774171          88,806   
  01/01/02 to 12/31/02....................................   0.774171        0.527591         299,874   
Met/AIM Mid Cap Core Equity Subaccount                                                                  
  05/01/02** to 12/31/02..................................   1.139061        0.965401          63,403   
T. Rowe Price Mid-Cap Growth Subaccount                                                                 
  07/02/01* to 12/31/01...................................   0.930595        0.822989          35,676   
  01/01/02 to 12/31/02....................................   0.822989        0.453721         216,411   

------------                                                                    
* Date on which the Contract first became available.                          

** Date on which the Subaccount first became available.                         
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                                                                   1.50% VARIABLE ACCOUNT CHARGE        
                                                           ---------------------------------------------
                                                                                            NUMBER OF   
                                                           ACCUMULATION                    ACCUMULATION 
                                                            UNIT VALUE    ACCUMULATION        UNITS     
                                                           AT BEGINNING   UNIT VALUE AT   OUTSTANDING AT
                                                            OF PERIOD     END OF PERIOD   END OF PERIOD 
                                                           ------------   -------------   --------------
                                                                                                        
Met/AIM Small Cap Growth Subaccount                                                                     
  05/01/02** to 12/31/02..................................   1.121558        0.846254          40,889   
PIMCO Innovation Subaccount                                                                             
  07/02/01* to 12/31/01...................................   0.757599        0.608843         236,284   
  01/01/02 to 12/31/02....................................   0.608843        0.295498         625,233   
Harris Oakmark International Subaccount -- Class E(2)                                                   
  05/01/02** to 12/31/02..................................   1.059020        0.882689          50,270   
MFS Research International Subaccount                                                                   
  07/02/01* to 12/31/01...................................   0.926246        0.847077          69,731   
  01/01/02 to 12/31/02....................................   0.847077        0.735964         320,965   
American Funds Growth Subaccount                                                                        
  07/02/01* to 12/31/01...................................  12.217535       10.784870          87,006   
  01/01/02 to 12/31/02....................................  10.784870        8.005947         303,680   
American Funds Growth -- Income Subaccount                                                              
  07/02/01* to 12/31/01...................................   8.279336        8.021833          93,671   
  01/01/02 to 12/31/02....................................   8.021833        6.436590         361,204   
American Funds Global Small Capitalization Subaccount                                                   
  07/02/01* to 12/31/01...................................   1.451655        1.337622         101,630   
  01/01/02 to 12/31/02....................................   1.337622        1.063971         495,579   

------------                                                                    

* Date on which the Contract first became available.                          

** Date on which the Subaccount first became available.                         

(1) On or about April 28, 2003, the Janus Growth Portfolio merged into the Janus
Aggressive Growth Portfolio. Information shown for the Janus Aggressive 
  Growth Portfolio is based on the May 1, 2001 inception of the Janus Growth
Portfolio, and reflects the performance of the Janus Growth Portfolio   
through the date of the merger.                                         

(2) The Harris Oakmark International Portfolio Class E shares are only available
 under Contracts issued prior to May 1, 2003. Contracts issued on or after
   that date will offer Class B shares, which impose a 12b-1 distribution fee.

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ACCUMULATION UNIT VALUES
(FOR AN ACCUMULATION UNIT OUTSTANDING THROUGH THE PERIOD) 

NEW ENGLAND VARIABLE ANNUITY SEPARATE ACCOUNT 
CONDENSED FINANCIAL INFORMATION 

                                                        [Enlarge/Download Table]

                                                                    1.60% VARIABLE ACCOUNT CHARGE        
                                                            ---------------------------------------------
                                                                                             NUMBER OF   
                                                            ACCUMULATION                    ACCUMULATION 
                                                             UNIT VALUE    ACCUMULATION        UNITS     
                                                            AT BEGINNING   UNIT VALUE AT   OUTSTANDING AT
                                                             OF PERIOD     END OF PERIOD   END OF PERIOD 
                                                            ------------   -------------   --------------
                                                                                                         
State Street Research Money Market Subaccount                                                            
  07/02/01* to 12/31/01...................................    2.137911        2.147762       2,305,462   
  01/01/02 to 12/31/02....................................    2.147762        2.138283       6,180,906   
Lehman Brothers Aggregate Bond Index Subaccount                                                          
  07/02/01* to 12/31/01...................................    1.091369        1.121679         576,433   
  01/01/02 to 12/31/02....................................    1.121679        1.213618       2,200,010   
Salomon Brothers Strategic Bond Opportunities Subaccount                                                 
  07/02/01* to 12/31/01...................................    1.532241        1.566131         299,653   
  01/01/02 to 12/31/02....................................    1.566131        1.685581       1,305,077   
Salomon Brothers U.S. Government Subaccount                                                              
  07/02/01* to 12/31/01...................................    1.415442        1.456523         713,433   
  01/01/02 to 12/31/02....................................    1.456523        1.542682       3,752,159   
State Street Research Bond Income Subaccount                                                             
  07/02/01* to 12/31/01...................................    3.661310        3.789819         381,067   
  01/01/02 to 12/31/02....................................    3.789819        4.034321       1,414,185   
Balanced Subaccount                                                                                      
  07/02/01* to 12/31/01...................................    1.479293        1.451183         175,118   
  01/01/02 to 12/31/02....................................    1.451183        1.232135         690,524   
Alger Equity Growth Subaccount                                                                           
  07/02/01* to 12/31/01...................................    2.949416        2.691224         456,780   
  01/01/02 to 12/31/02....................................    2.691224        1.768168       1,436,860   
Davis Venture Value Subaccount                                                                           
  07/02/01* to 12/31/01...................................    2.750849        2.607240         953,766   
  01/01/02 to 12/31/02....................................    2.607240        2.141170       3,273,900   
FI Structured Equity Subaccount                                                                          
  07/02/01* to 12/31/01...................................    2.556973        2.319069          83,093   
  01/01/02 to 12/31/02....................................    2.319069        1.835768         279,173   
Harris Oakmark Large Cap Value Subaccount                                                                
  05/01/02** to 12/31/02..................................    1.175834        0.963138         942,490   
MetLife Stock Index Subaccount                                                                           
  07/02/01* to 12/31/01...................................    3.702470        3.426520         432,859   
  01/01/02 to 12/31/02....................................    3.426520        2.612799       1,640,905   
MFS Investors Trust Subaccount                                                                           
  07/02/01* to 12/31/01...................................    0.890911        0.825091         151,361   
  01/01/02 to 12/31/02....................................    0.825091        0.647631         602,750   
MFS Research Managers Subaccount                                                                         
  07/02/01* to 12/31/01...................................    0.971947        0.871362         147,273   
  01/01/02 to 12/31/02....................................    0.871362        0.649949         452,260   
Met/Putnam Voyager Subaccount                                                                            
  07/02/01* to 12/31/01...................................    0.573137        0.490683         475,290   
  01/01/02 to 12/31/02....................................    0.490683        0.342996       1,530,060   
---------------------------------------------------------------------------------------------------------
 * Date on which the Contract first became available.                                                    
** Date on which the Subaccount first became available.                                                  

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                                                                    1.60% VARIABLE ACCOUNT CHARGE        
                                                            ---------------------------------------------
                                                                                             NUMBER OF   
                                                            ACCUMULATION                    ACCUMULATION 
                                                             UNIT VALUE    ACCUMULATION        UNITS     
                                                            AT BEGINNING   UNIT VALUE AT   OUTSTANDING AT
                                                             OF PERIOD     END OF PERIOD   END OF PERIOD 
                                                            ------------   -------------   --------------
                                                                                                         
State Street Research Investment Trust Subaccount                                                        
  07/02/01* to 12/31/01...................................    6.828543        6.230737          76,773   
  01/01/02 to 12/31/02....................................    6.230737        4.520134         187,509   
State Street Research Large Cap Value Subaccount                                                         
  05/01/02** to 12/31/02..................................    1.000000        0.791347         539,213   
FI Mid Cap Opportunities Subaccount                                                                      
  05/01/02** to 12/31/02..................................    1.000000        0.809279         108,375   
Harris Oakmark Focused Value Subaccount                                                                  
  07/02/01* to 12/31/01...................................    2.467618        2.582746         893,806   
  01/01/02 to 12/31/02....................................    2.582746        2.313345       3,917,017   
Janus Mid Cap Subaccount                                                                                 
  07/02/01* to 12/31/01...................................    1.862721        1.533716         284,648   
  01/01/02 to 12/31/02....................................    1.533716        1.069011         723,043   
MetLife Mid Cap Stock Index Subaccount                                                                   
  07/02/01* to 12/31/01...................................    1.048883        1.026749         368,177   
  01/01/02 to 12/31/02....................................    1.026749        0.857778       1,293,872   
Neuberger Berman Mid Cap Value Subaccount                                                                
  07/02/01* to 12/31/01...................................    1.542704        1.491345         156,452   
  01/01/02 to 12/31/02....................................    1.491345        1.322173         452,404   
Franklin Templeton Small Cap Growth Subaccount                                                           
  07/02/01* to 12/31/01...................................    0.953398        0.878529         201,706   
  01/01/02 to 12/31/02....................................    0.878529        0.622129       1,587,342   
Loomis Sayles Small Cap Subaccount                                                                       
  07/02/01* to 12/31/01...................................    2.340698        2.212691         302,661   
  01/01/02 to 12/31/02....................................    2.212691        1.706264         815,619   
Russell 2000 Index Subaccount                                                                            
  07/02/01* to 12/31/01...................................    1.211779        1.177062         303,150   
  01/01/02 to 12/31/02....................................    1.177062        0.919536         973,414   
State Street Research Aurora Subaccount                                                                  
  07/02/01* to 12/31/01...................................    1.425916        1.393822         871,034   
  01/01/02 to 12/31/02....................................    1.393822        1.076959       4,781,568   
Morgan Stanley EAFE Index Subaccount                                                                     
  07/02/01* to 12/31/01...................................    0.939623        0.846152         157,511   
  01/01/02 to 12/31/02....................................    0.846152        0.693145         814,299   
Putnam International Stock Subaccount                                                                    
  07/02/01* to 12/31/01...................................    1.229365        1.122002         407,797   
  01/01/02 to 12/31/02....................................    1.122002        0.909586       2,317,297   
Lord Abbett Bond Debenture Subaccount                                                                    
  07/02/01* to 12/31/01...................................    1.349148        1.355367         163,651   
  01/01/02 to 12/31/02....................................    1.355367        1.326206       1,072,346   
PIMCO Total Return Portfolio Subaccount                                                                  
  07/02/01* to 12/31/01...................................    1.006803        1.052106       1,449,917   
  01/01/02 to 12/31/02....................................    1.052106        1.131635       8,141,626   
---------------------------------------------------------------------------------------------------------
 * Date on which the Contract first became available.                                                    
** Date on which the Subaccount first became available.                                                  

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                                                                   1.60% VARIABLE ACCOUNT CHARGE        
                                                           ---------------------------------------------
                                                                                            NUMBER OF   
                                                           ACCUMULATION                    ACCUMULATION 
                                                            UNIT VALUE    ACCUMULATION        UNITS     
                                                           AT BEGINNING   UNIT VALUE AT   OUTSTANDING AT
                                                            OF PERIOD     END OF PERIOD   END OF PERIOD 
                                                           ------------   -------------   --------------
                                                                                                        
Janus Aggressive Growth Subaccount(1)                                                                   
  07/02/01* to 12/31/01...................................   0.951406        0.773651         170,013   
  01/01/02 to 12/31/02....................................   0.773651        0.526708       1,057,349   
Met/AIM Mid Cap Core Equity Subaccount                                                                  
  05/01/02** to 12/31/02..................................   1.138424        0.964216         123,638   
T. Rowe Price Mid-Cap Growth Subaccount                                                                 
  07/02/01* to 12/31/01...................................   0.930236        0.822259         224,552   
  01/01/02 to 12/31/02....................................   0.822259        0.452865       1,291,525   
Met/AIM Small Cap Growth Subaccount                                                                     
  05/01/02** to 12/31/02..................................   1.120932        0.845214         218,214   
PIMCO Innovation Subaccount                                                                             
  07/02/01* to 12/31/01...................................   0.757307        0.608303         515,626   
  01/01/02 to 12/31/02....................................   0.608303        0.294939       1,178,635   
Harris Oakmark International Subaccount -- Class E(2)                                                   
  05/01/02** to 12/31/02..................................   1.058428        0.881605         173,778   
MFS Research International Subaccount                                                                   
  07/02/01* to 12/31/01...................................   0.925891        0.846328         279,255   
  01/01/02 to 12/31/02....................................   0.846328        0.734578       1,226,544   
American Funds Growth Subaccount                                                                        
  07/02/01* to 12/31/01...................................  12.006710       10.593460         282,325   
  01/01/02 to 12/31/02....................................  10.593460        7.855980       1,029,766   
American Funds Growth -- Income Subaccount                                                              
  07/02/01* to 12/31/01...................................   8.136490        7.879491         382,342   
  01/01/02 to 12/31/02....................................   7.879491        6.316047       1,187,975   
American Funds Global Small Capitalization Subaccount                                                   
  07/02/01* to 12/31/01...................................   1.447052        1.332714         225,130   
  01/01/02 to 12/31/02....................................   1.332714        1.059005       1,200,298   

------------                                                                    

* Date on which the Contract first became available.                          

** Date on which the Subaccount first became available.                         

(1) On or about April 28, 2003, the Janus Growth Portfolio merged into the Janus
Aggressive Growth Portfolio. Information shown for the Janus Aggressive 
  Growth Portfolio is based on the May 1, 2001 inception of the Janus Growth
Portfolio, and reflects the performance of the Janus Growth Portfolio   
through the date of the merger.                                         

(2) The Harris Oakmark International Portfolio Class E shares are only available
 under Contracts issued prior to May 1, 2003. Contracts issued on or after
   that date will offer Class B shares, which impose a 12b-1 distribution fee.

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ACCUMULATION UNIT VALUES
(FOR AN ACCUMULATION UNIT OUTSTANDING THROUGH THE PERIOD) 

NEW ENGLAND VARIABLE ANNUITY SEPARATE ACCOUNT 
CONDENSED FINANCIAL INFORMATION 

                                                        [Enlarge/Download Table]

                                                                  1.65% VARIABLE ACCOUNT CHARGE        
                                                          ---------------------------------------------
                                                                                           NUMBER OF   
                                                          ACCUMULATION                    ACCUMULATION 
                                                           UNIT VALUE    ACCUMULATION        UNITS     
                                                          AT BEGINNING   UNIT VALUE AT   OUTSTANDING AT
                                                           OF PERIOD     END OF PERIOD   END OF PERIOD 
                                                          ------------   -------------   --------------
                                                                                                       
State Street Research Money Market Subaccount                                                          
  07/02/01* to 12/31/01..................................   2.118918        2.128151           29,771  
  01/01/02 to 12/31/02...................................   2.128151        2.117700           41,021  
Lehman Brothers Aggregate Bond Index Subaccount                                                        
  07/02/01* to 12/31/01..................................   1.089927        1.119918            2,467  
  01/01/02 to 12/31/02...................................   1.119918        1.211107          105,974  
Salomon Brothers Strategic Bond Opportunities Subaccount                                               
  07/02/01* to 12/31/01..................................   1.527141        1.560530            7,228  
  01/01/02 to 12/31/02...................................   1.560530        1.678713           88,719  
Salomon Brothers U.S. Government Subaccount                                                            
  07/02/01* to 12/31/01..................................   1.410730        1.451313           13,733  
  01/01/02 to 12/31/02...................................   1.451313        1.536397          181,818  
State Street Research Bond Income Subaccount                                                           
  07/02/01* to 12/31/01..................................   3.628784        3.755216           13,595  
  01/01/02 to 12/31/02...................................   3.755216        3.995489           83,676  
Balanced Subaccount                                                                                    
  07/02/01* to 12/31/01..................................   1.474369        1.445992              820  
  01/01/02 to 12/31/02...................................   1.445992        1.227114           94,937  
Alger Equity Growth Subaccount                                                                         
  07/02/01* to 12/31/01..................................   2.939600        2.681597            2,305  
  01/01/02 to 12/31/02...................................   2.681597        1.760962           91,276  
Davis Venture Value Subaccount                                                                         
  07/02/01* to 12/31/01..................................   2.741696        2.597917           89,277  
  01/01/02 to 12/31/02...................................   2.597917        2.132445          282,543  
FI Structured Equity Subaccount                                                                        
  07/02/01* to 12/31/01..................................   2.546551        2.309040               --  
  01/01/02 to 12/31/02...................................   2.309040        1.826915           13,684  
Harris Oakmark Large Cap Value Subaccount                                                              
  05/01/02** to 12/31/02.................................   1.173793        0.961145           24,807  
MetLife Stock Index Subaccount                                                                         
  07/02/01* to 12/31/01..................................   3.681859        3.406595           16,625  
  01/01/02 to 12/31/02...................................   3.406595        2.596305          150,802  
MFS Investors Trust Subaccount                                                                         
  07/02/01* to 12/31/01..................................   0.889943        0.823989           57,606  
  01/01/02 to 12/31/02...................................   0.823989        0.646442           78,777  
MFS Research Managers Subaccount                                                                       
  07/02/01* to 12/31/01..................................   0.970890        0.870198               --  
  01/01/02 to 12/31/02...................................   0.870198        0.648755              103  
Met/Putnam Voyager Subaccount                                                                          
  07/02/01* to 12/31/01..................................   0.572801        0.490273               --  
  01/01/02 to 12/31/02...................................   0.490273        0.342538           82,209  
State Street Research Investment Trust Subaccount                                                      
  07/02/01* to 12/31/01..................................   6.767301        6.173313               --  
  01/01/02 to 12/31/02...................................   6.173313        4.476234               15  

------------                                                                    

* Date on which the Contract first became available.                          

** Date on which the Subaccount first became available.                         

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                                                                  1.65% VARIABLE ACCOUNT CHARGE        
                                                          ---------------------------------------------
                                                                                           NUMBER OF   
                                                          ACCUMULATION                    ACCUMULATION 
                                                           UNIT VALUE    ACCUMULATION        UNITS     
                                                          AT BEGINNING   UNIT VALUE AT   OUTSTANDING AT
                                                           OF PERIOD     END OF PERIOD   END OF PERIOD 
                                                          ------------   -------------   --------------
                                                                                                       
State Street Research Large Cap Value Subaccount                                                       
  05/01/02** to 12/31/02.................................   1.000000        0.791082            8,561  
FI Mid Cap Opportunities Subaccount                                                                    
  05/01/02** to 12/31/02.................................   1.000000        0.809009              100  
Harris Oakmark Focused Value Subaccount                                                                
  07/02/01* to 12/31/01..................................   2.457558        2.571575           31,498  
  01/01/02 to 12/31/02...................................   2.571575        2.302187          156,026  
Janus Mid Cap Subaccount                                                                               
  07/02/01* to 12/31/01..................................   1.858690        1.530013            1,405  
  01/01/02 to 12/31/02...................................   1.530013        1.065896            7,970  
MetLife Mid Cap Stock Index Subaccount                                                                 
  07/02/01* to 12/31/01..................................   1.048363        1.025984            2,149  
  01/01/02 to 12/31/02...................................   1.025984        0.856710           93,784  
Neuberger Berman Mid Cap Value Subaccount                                                              
  07/02/01* to 12/31/01..................................   1.540666        1.489003               --  
  01/01/02 to 12/31/02...................................   1.489003        1.319436           31,442  
Franklin Templeton Small Cap Growth Subaccount                                                         
  07/02/01* to 12/31/01..................................   0.953317        0.878235            3,957  
  01/01/02 to 12/31/02...................................   0.878235        0.621609           15,577  
Loomis Sayles Small Cap Subaccount                                                                     
  07/02/01* to 12/31/01..................................   2.332325        2.204225               --  
  01/01/02 to 12/31/02...................................   2.204225        1.698884           16,519  
Russell 2000 Index Subaccount                                                                          
  07/02/01* to 12/31/01..................................   1.210177        1.175212              607  
  01/01/02 to 12/31/02...................................   1.175212        0.917631          191,944  
State Street Research Aurora Subaccount                                                                
  07/02/01* to 12/31/01..................................   1.425210        1.392785           12,728  
  01/01/02 to 12/31/02...................................   1.392785        1.075618          182,103  
Morgan Stanley EAFE Index Subaccount                                                                   
  07/02/01* to 12/31/01..................................   0.938381        0.844822               --  
  01/01/02 to 12/31/02...................................   0.844822        0.691710           16,339  
Putnam International Stock Subaccount                                                                  
  07/02/01* to 12/31/01..................................   1.223128        1.116030           13,915  
  01/01/02 to 12/31/02...................................   1.116030        0.904293           27,576  
Lord Abbett Bond Debenture Subaccount                                                                  
  07/02/01* to 12/31/01..................................   1.345666        1.351533            7,688  
  01/01/02 to 12/31/02...................................   1.351533        1.321793           46,992  
PIMCO Total Return Portfolio Subaccount                                                                
  07/02/01* to 12/31/01..................................   1.006610        1.050993          105,424  
  01/01/02 to 12/31/02...................................   1.050993        1.129873          487,947  
Janus Aggressive Growth Subaccount(1)                                                                  
  07/02/01* to 12/31/01..................................   0.951325        0.773392               --  
  01/01/02 to 12/31/02...................................   0.773392        0.526268           18,358  
Met/AIM Mid Cap Core Equity Subaccount                                                                 
  05/01/02** to 12/31/02.................................   1.138107        0.963625            4,819  
T. Rowe Price Mid-Cap Growth Subaccount                                                                
  07/02/01* to 12/31/01..................................   0.930056        0.821895               --  
  01/01/02 to 12/31/02...................................   0.821895        0.452437            3,510  

------------                                                                    

* Date on which the Contract first became available.                          

** Date on which the Subaccount first became available.                         

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                                                                  1.65% VARIABLE ACCOUNT CHARGE        
                                                          ---------------------------------------------
                                                                                           NUMBER OF   
                                                          ACCUMULATION                    ACCUMULATION 
                                                           UNIT VALUE    ACCUMULATION        UNITS     
                                                          AT BEGINNING   UNIT VALUE AT   OUTSTANDING AT
                                                           OF PERIOD     END OF PERIOD   END OF PERIOD 
                                                          ------------   -------------   --------------
                                                                                                       
Met/AIM Small Cap Growth Subaccount                                                                    
  05/01/02** to 12/31/02.................................   1.120619        0.844695            1,607  
PIMCO Innovation Subaccount                                                                            
  07/02/01* to 12/31/01..................................   0.757161        0.608034               --  
  01/01/02 to 12/31/02...................................   0.608034        0.294661              132  
Harris Oakmark International Subaccount -- Class E(2)                                                  
  05/01/02** to 12/31/02.................................   1.058133        0.881063               95  
MFS Research International Subaccount                                                                  
  07/02/01* to 12/31/01..................................   0.925713        0.845955            9,503  
  01/01/02 to 12/31/02...................................   0.845955        0.733886           29,350  
American Funds Growth Subaccount                                                                       
  07/02/01* to 12/31/01..................................  11.902664       10.499033            3,986  
  01/01/02 to 12/31/02...................................  10.499033        7.782054           45,138  
American Funds Growth -- Income Subaccount                                                             
  07/02/01* to 12/31/01..................................   8.065993        7.809270              117  
  01/01/02 to 12/31/02...................................   7.809270        6.256625           66,264  
American Funds Global Small Capitalization Subaccount                                                  
  07/02/01* to 12/31/01..................................   1.444756        1.330266              535  
  01/01/02 to 12/31/02...................................   1.330266        1.056531           20,279  

------------                                                                    

* Date on which the Contract first became available.                          

** Date on which the Subaccount first became available.                         

(1) On or about April 28, 2003, the Janus Growth Portfolio merged into the Janus
Aggressive Growth Portfolio. Information shown for the Janus Aggressive 
  Growth Portfolio is based on the May 1, 2001 inception of the Janus Growth
Portfolio, and reflects the performance of the Janus Growth Portfolio   
through the date of the merger.                                         

(2) The Harris Oakmark International Portfolio Class E shares are only available
 under Contracts issued prior to May 1, 2003. Contracts issued on or after
   that date will offer Class B shares, which impose a 12b-1 distribution fee.

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ACCUMULATION UNIT VALUES
(FOR AN ACCUMULATION UNIT OUTSTANDING THROUGH THE PERIOD) 

NEW ENGLAND VARIABLE ANNUITY SEPARATE ACCOUNT 
CONDENSED FINANCIAL INFORMATION 

                                                        [Enlarge/Download Table]

                                                                   1.70% VARIABLE ACCOUNT CHARGE        
                                                           ---------------------------------------------
                                                                                            NUMBER OF   
                                                           ACCUMULATION                    ACCUMULATION 
                                                            UNIT VALUE    ACCUMULATION        UNITS     
                                                           AT BEGINNING   UNIT VALUE AT   OUTSTANDING AT
                                                            OF PERIOD     END OF PERIOD   END OF PERIOD 
                                                           ------------   -------------   --------------
                                                                                                        
State Street Research Money Market Subaccount                                                           
  07/02/01* to 12/31/01...................................   2.100079        2.108705       1,663,887   
  01/01/02 to 12/31/02....................................   2.108705        2.097299       4,061,865   
Lehman Brothers Aggregate Bond Index Subaccount                                                         
  07/02/01* to 12/31/01...................................   1.088486        1.118158         274,931   
  01/01/02 to 12/31/02....................................   1.118158        1.208600       1,449,415   
Salomon Brothers Strategic Bond Opportunities Subaccount                                                
  07/02/01* to 12/31/01...................................   1.522054        1.554944         165,060   
  01/01/02 to 12/31/02....................................   1.554944        1.671869       1,042,646   
Salomon Brothers U.S. Government Subaccount                                                             
  07/02/01* to 12/31/01...................................   1.406031        1.446118         353,452   
  01/01/02 to 12/31/02....................................   1.446118        1.530132       2,456,065   
State Street Research Bond Income Subaccount                                                            
  07/02/01* to 12/31/01...................................   3.596523        3.720903         407,618   
  01/01/02 to 12/31/02....................................   3.720903        3.957003       1,001,017   
Balanced Subaccount                                                                                     
  07/02/01* to 12/31/01...................................   1.469458        1.440815         181,947   
  01/01/02 to 12/31/02....................................   1.440815        1.222109         881,791   
Alger Equity Growth Subaccount                                                                          
  07/02/01* to 12/31/01...................................   2.929810        2.671999         160,718   
  01/01/02 to 12/31/02....................................   2.671999        1.753779         603,656   
Davis Venture Value Subaccount                                                                          
  07/02/01* to 12/31/01...................................   2.732567        2.588620         362,611   
  01/01/02 to 12/31/02....................................   2.588620        2.123750       1,875,489   
FI Structured Equity Subaccount                                                                         
  07/02/01* to 12/31/01...................................   2.536164        2.299048          59,189   
  01/01/02 to 12/31/02....................................   2.299048        1.818097         141,546   
Harris Oakmark Large Cap Value Subaccount                                                               
  05/1/02** to 12/31/02...................................   1.171754        0.959154         346,899   
MetLife Stock Index Subaccount                                                                          
  07/02/01* to 12/31/01...................................   3.661349        3.386771          48,928   
  01/01/02 to 12/31/02....................................   3.386771        2.579904         429,949   
MFS Investors Trust Subaccount                                                                          
  07/02/01* to 12/31/01...................................   0.888975        0.822887          65,241   
  01/01/02 to 12/31/02....................................   0.822887        0.645254         357,005   
MFS Research Managers Subaccount                                                                        
  07/02/01* to 12/31/01...................................   0.969834        0.869034          20,965   
  01/01/02 to 12/31/02....................................   0.869034        0.647563         194,801   
Met/Putnam Voyager Subaccount                                                                           
  07/02/01* to 12/31/01...................................   0.572465        0.489863         352,657   
  01/01/02 to 12/31/02....................................   0.489863        0.342080         798,408   
State Street Research Investment Trust Subaccount                                                       
  07/02/01* to 12/31/01...................................   6.706564        6.116378          35,574   
  01/01/02 to 12/31/02....................................   6.116378        4.432728         100,630   
------------                                                                                            
 * Date on which the Contract first became available.                                                   
** Date on which the Subaccount first became available.                                                 

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485BPOS
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                                                                   1.70% VARIABLE ACCOUNT CHARGE        
                                                           ---------------------------------------------
                                                                                            NUMBER OF   
                                                           ACCUMULATION                    ACCUMULATION 
                                                            UNIT VALUE    ACCUMULATION        UNITS     
                                                           AT BEGINNING   UNIT VALUE AT   OUTSTANDING AT
                                                            OF PERIOD     END OF PERIOD   END OF PERIOD 
                                                           ------------   -------------   --------------
                                                                                                        
State Street Research Large Cap Value Subaccount                                                        
  05/01/02** to 12/31/02..................................   1.000000        0.790817         121,578   
FI Mid Cap Opportunities Subaccount                                                                     
  05/01/02** to 12/31/02..................................   1.000000        0.808738          45,544   
Harris Oakmark Focused Value Subaccount                                                                 
  07/02/01* to 12/31/01...................................   2.447531        2.560445         334,770   
  01/01/02 to 12/31/02....................................   2.560445        2.291076       2,067,511   
Janus Mid Cap Subaccount                                                                                
  07/02/01* to 12/31/01...................................   1.854664        1.526317          36,995   
  01/01/02 to 12/31/02....................................   1.526317        1.062789         109,598   
MetLife Mid Cap Stock Index Subaccount                                                                  
  07/02/01* to 12/31/01...................................   1.047843        1.025219          66,365   
  01/01/02 to 12/31/02....................................   1.025219        0.855642         639,277   
Neuberger Berman Mid Cap Value Subaccount                                                               
  07/02/01* to 12/31/01...................................   1.538630        1.486664          20,342   
  01/01/02 to 12/31/02....................................   1.486664        1.316703         288,491   
Franklin Templeton Small Cap Growth Subaccount                                                          
  07/02/01* to 12/31/01...................................   0.953235        0.877941          55,533   
  01/01/02 to 12/31/02....................................   0.877941        0.621089         741,502   
Loomis Sayles Small Cap Subaccount                                                                      
  07/02/01* to 12/31/01...................................   2.323975        2.195785          83,016   
  01/01/02 to 12/31/02....................................   2.195785        1.691532         446,503   
Russell 2000 Index Subaccount                                                                           
  07/02/01* to 12/31/01...................................   1.208576        1.173364         102,424   
  01/01/02 to 12/31/02....................................   1.173364        0.915729         343,070   
State Street Research Aurora Subaccount                                                                 
  07/02/01* to 12/31/01...................................   1.424505        1.391747         273,428   
  01/01/02 to 12/31/02....................................   1.391747        1.074279       2,295,466   
Morgan Stanley EAFE Index Subaccount                                                                    
  07/02/01* to 12/31/01...................................   0.937140        0.843494         226,647   
  01/01/02 to 12/31/02....................................   0.843494        0.690276         498,276   
Putnam International Stock Subaccount                                                                   
  07/02/01* to 12/31/01...................................   1.216918        1.110087          82,951   
  01/01/02 to 12/31/02....................................   1.110087        0.899026         955,576   
Lord Abbett Bond Debenture Subaccount                                                                   
  07/02/01* to 12/31/01...................................   1.342191        1.347706          42,359   
  01/01/02 to 12/31/02....................................   1.347706        1.317392         416,402   
PIMCO Total Return Portfolio Subaccount                                                                 
  07/02/01* to 12/31/01...................................   1.006417        1.050877         562,362   
  01/01/02 to 12/31/02....................................   1.050877        1.129185       4,762,348   
Janus Aggressive Growth Subaccount(1)                                                                   
  07/02/01* to 12/31/01...................................   0.951244        0.773133         124,762   
  01/01/02 to 12/31/02....................................   0.773133        0.525828         514,392   
Met/AIM Mid Cap Core Equity Subaccount                                                                  
  05/01/02** to 12/31/02..................................   1.137789        0.963033         137,723   
T. Rowe Price Mid-Cap Growth Subaccount                                                                 
  07/02/01* to 12/31/01...................................   0.929877        0.821531          71,429   
  01/01/02 to 12/31/02....................................   0.821531        0.452010         409,032   
Met/AIM Small Cap Growth Subaccount                                                                     
  05/01/02** to 12/31/02..................................   1.120305        0.844176          79,574   
------------                                                                                            
 * Date on which the Contract first became available.                                                   
** Date on which the Subaccount first became available.                                                 

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                                                                   1.70% VARIABLE ACCOUNT CHARGE        
                                                           ---------------------------------------------
                                                                                            NUMBER OF   
                                                           ACCUMULATION                    ACCUMULATION 
                                                            UNIT VALUE    ACCUMULATION        UNITS     
                                                           AT BEGINNING   UNIT VALUE AT   OUTSTANDING AT
                                                            OF PERIOD     END OF PERIOD   END OF PERIOD 
                                                           ------------   -------------   --------------
                                                                                                        
PIMCO Innovation Subaccount                                                                             
  07/02/01* to 12/31/01...................................   0.757014        0.607764          18,155   
  01/01/02 to 12/31/02....................................   0.607764        0.294382         519,010   
Harris Oakmark International Subaccount -- Class E(2)                                                   
  05/01/02** to 12/31/02..................................   1.057837        0.880522          37,801   
MFS Research International Subaccount                                                                   
  07/02/01* to 12/31/01...................................   0.925535        0.845581         121,011   
  01/01/02 to 12/31/02....................................   0.845581        0.733195         442,986   
American Funds Growth Subaccount                                                                        
  07/02/01* to 12/31/01...................................  11.799521       10.405447          68,458   
  01/01/02 to 12/31/02....................................  10.405447        7.708822         494,235   
American Funds Growth -- Income Subaccount                                                              
  07/02/01* to 12/31/01...................................   7.996107        7.739675         100,571   
  01/01/02 to 12/31/02....................................   7.739675        6.197761         534,754   
American Funds Global Small Capitalization Subaccount                                                   
  07/02/01* to 12/31/01...................................   1.442464        1.327823         105,244   
  01/01/02 to 12/31/02....................................   1.327823        1.054062         469,062   

------------                                                                    

* Date on which the Contract first became available.                          

** Date on which the Subaccount first became available.                         

(1) On or about April 28, 2003, the Janus Growth Portfolio merged into the Janus
Aggressive Growth Portfolio. Information shown for the Janus Aggressive 
  Growth Portfolio is based on the May 1, 2001 inception of the Janus Growth
Portfolio, and reflects the performance of the Janus Growth Portfolio   
through the date of the merger.                                         

(2) The Harris Oakmark International Portfolio Class E shares are only available
 under Contracts issued prior to May 1, 2003. Contracts issued on or after
   that date will offer Class B shares, which impose a 12b-1 distribution fee.

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ACCUMULATION UNIT VALUES
(FOR AN ACCUMULATION UNIT OUTSTANDING THROUGH THE PERIOD) 

NEW ENGLAND VARIABLE ANNUITY SEPARATE ACCOUNT 
CONDENSED FINANCIAL INFORMATION 

                                                        [Enlarge/Download Table]

                                                                   1.75% VARIABLE ACCOUNT CHARGE        
                                                           ---------------------------------------------
                                                                                            NUMBER OF   
                                                           ACCUMULATION                    ACCUMULATION 
                                                            UNIT VALUE    ACCUMULATION        UNITS     
                                                           AT BEGINNING   UNIT VALUE AT   OUTSTANDING AT
                                                            OF PERIOD     END OF PERIOD   END OF PERIOD 
                                                           ------------   -------------   --------------
                                                                                                        
State Street Research Money Market Subaccount                                                           
  07/02/01* to 12/31/01...................................   2.081408        2.089436          3,726    
  01/01/02 to 12/31/02....................................   2.089436        2.077096        115,911    
Lehman Brothers Aggregate Bond Index Subaccount                                                         
  07/02/01* to 12/31/01...................................   1.087046        1.116401         62,580    
  01/01/02 to 12/31/02....................................   1.116401        1.206098        196,049    
Salomon Brothers Strategic Bond Opportunities Subaccount                                                
  07/02/01* to 12/31/01...................................   1.516984        1.549378         38,272    
  01/01/02 to 12/31/02....................................   1.549378        1.665052        132,507    
Salomon Brothers U.S. Government Subaccount                                                             
  07/02/01* to 12/31/01...................................   1.401347        1.440942         61,324    
  01/01/02 to 12/31/02....................................   1.440942        1.523893        241,884    
State Street Research Bond Income Subaccount                                                            
  07/02/01* to 12/31/01...................................   3.564549        3.686904         21,660    
  01/01/02 to 12/31/02....................................   3.686904        3.918887        103,404    
Balanced Subaccount                                                                                     
  07/02/01* to 12/31/01...................................   1.464563        1.435657          1,192    
  01/01/02 to 12/31/02....................................   1.435657        1.217125         66,379    
Alger Equity Growth Subaccount                                                                          
  07/02/01* to 12/31/01...................................   2.920053        2.662434          3,467    
  01/01/02 to 12/31/02....................................   2.662434        1.746625         35,532    
Davis Venture Value Subaccount                                                                          
  07/02/01* to 12/31/01...................................   2.723469        2.579356         24,718    
  01/01/02 to 12/31/02....................................   2.579356        2.115091         83,313    
FI Structured Equity Subaccount                                                                         
  07/02/01* to 12/31/01...................................   2.525819        2.289098          2,385    
  01/01/02 to 12/31/02....................................   2.289098        1.809323          4,199    
Harris Oakmark Large Cap Value Subaccount                                                               
  05/01/02** to 12/31/02..................................   1.169719        0.957167          6,240    
MetLife Stock Index Subaccount                                                                          
  07/02/01* to 12/31/01...................................   3.640953        3.367063          1,602    
  01/01/02 to 12/31/02....................................   3.367063        2.563606         12,885    
MFS Investors Trust Subaccount                                                                          
  07/02/01* to 12/31/01...................................   0.888009        0.821787             --    
  01/01/02 to 12/31/02....................................   0.821787        0.644069            113    
MFS Research Managers Subaccount                                                                        
  07/02/01* to 12/31/01...................................   0.968779        0.867872             --    
  01/01/02 to 12/31/02....................................   0.867872        0.646373         34,021    
Met/Putnam Voyager Subaccount                                                                           
  07/02/01* to 12/31/01...................................   0.572129        0.489453          9,969    
  01/01/02 to 12/31/02....................................   0.489453        0.341622         47,944    
State Street Research Investment Trust Subaccount                                                       
  07/02/01* to 12/31/01...................................   6.646372        6.059967             --    
  01/01/02 to 12/31/02....................................   6.059967        4.389645            474    

------------                                                                    

*Date on which the Contract first became available.                           

**Date on which the Subaccount first became available.                          

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                                                                   1.75% VARIABLE ACCOUNT CHARGE        
                                                           ---------------------------------------------
                                                                                            NUMBER OF   
                                                           ACCUMULATION                    ACCUMULATION 
                                                            UNIT VALUE    ACCUMULATION        UNITS     
                                                           AT BEGINNING   UNIT VALUE AT   OUTSTANDING AT
                                                            OF PERIOD     END OF PERIOD   END OF PERIOD 
                                                           ------------   -------------   --------------
                                                                                                        
State Street Research Large Cap Value Subaccount                                                        
  05/01/02** to 12/31/02..................................   1.000000        0.790552            177    
FI Mid Cap Opportunities Subaccount                                                                     
  05/01/02** to 12/31/02..................................   1.000000        0.808467            100    
Harris Oakmark Focused Value Subaccount                                                                 
  07/02/01* to 12/31/01...................................   2.437546        2.549363         37,773    
  01/01/02 to 12/31/02....................................   2.549363        2.280018        155,827    
Janus Mid Cap Subaccount                                                                                
  07/02/01* to 12/31/01...................................   1.850647        1.522630          1,120    
  01/01/02 to 12/31/02....................................   1.522630        1.059690          7,895    
MetLife Mid Cap Stock Index Subaccount                                                                  
  07/02/01* to 12/31/01...................................   1.047323        1.024455         11,128    
  01/01/02 to 12/31/02....................................   1.024455        0.854576        105,536    
Neuberger Berman Mid Cap Value Subaccount                                                               
  07/02/01* to 12/31/01...................................   1.536596        1.484327             --    
  01/01/02 to 12/31/02....................................   1.484327        1.313976         26,949    
Franklin Templeton Small Cap Growth Subaccount                                                          
  07/02/01* to 12/31/01...................................   0.953154        0.877647          4,721    
  01/01/02 to 12/31/02....................................   0.877647        0.620570        174,872    
Loomis Sayles Small Cap Subaccount                                                                      
  07/02/01* to 12/31/01...................................   2.315655        2.187377         28,649    
  01/01/02 to 12/31/02....................................   2.187377        1.684210         87,636    
Russell 2000 Index Subaccount                                                                           
  07/02/01* to 12/31/01...................................   1.206977        1.171519            179    
  01/01/02 to 12/31/02....................................   1.171519        0.913832         23,573    
State Street Research Aurora Subaccount                                                                 
  07/02/01* to 12/31/01...................................   1.423799        1.390710         20,109    
  01/01/02 to 12/31/02....................................   1.390710        1.072941        127,030    
Morgan Stanley EAFE Index Subaccount                                                                    
  07/02/01* to 12/31/01...................................   0.935900        0.842168         11,455    
  01/01/02 to 12/31/02....................................   0.842168        0.688846         24,171    
Putnam International Stock Subaccount                                                                   
  07/02/01* to 12/31/01...................................   1.210739        1.104175          7,748    
  01/01/02 to 12/31/02....................................   1.104175        0.893790         76,640    
Lord Abbett Bond Debenture Subaccount                                                                   
  07/02/01* to 12/31/01...................................   1.338725        1.343890         38,193    
  01/01/02 to 12/31/02....................................   1.343890        1.313005        209,548    
PIMCO Total Return Portfolio Subaccount                                                                 
  07/02/01* to 12/31/01...................................   1.006224        1.050762         67,026    
  01/01/02 to 12/31/02....................................   1.050762        1.128497        379,123    
Janus Aggressive Growth Subaccount(1)                                                                   
  07/02/01* to 12/31/01...................................   0.951163        0.772873         10,431    
  01/01/02 to 12/31/02....................................   0.772873        0.525388         40,581    
Met/AIM Mid Cap Core Equity Subaccount                                                                  
  05/01/02** to 12/31/02..................................   1.137471        0.962442             88    
T. Rowe Price Mid-Cap Growth Subaccount                                                                 
  07/02/01* to 12/31/01...................................   0.929697        0.821167         21,033    
  01/01/02 to 12/31/02....................................   0.821167        0.451583         97,033    
Met/AIM Small Cap Growth Subaccount                                                                     
  05/01/02** to 12/31/02..................................   1.119992        0.843658          2,402    
PIMCO Innovation Subaccount                                                                             
  07/02/01* to 12/31/01...................................   0.756868        0.607494            541    
  01/01/02 to 12/31/02....................................   0.607494        0.294104         48,205    

------------                                                                    
* Date on which the Contract first became available.                          

** Date on which the Subaccount first became available.                         
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                                                                   1.75% VARIABLE ACCOUNT CHARGE        
                                                           ---------------------------------------------
                                                                                            NUMBER OF   
                                                           ACCUMULATION                    ACCUMULATION 
                                                            UNIT VALUE    ACCUMULATION        UNITS     
                                                           AT BEGINNING   UNIT VALUE AT   OUTSTANDING AT
                                                            OF PERIOD     END OF PERIOD   END OF PERIOD 
                                                           ------------   -------------   --------------
                                                                                                        
Harris Oakmark International Subaccount -- Class E(2)                                                   
  05/01/02** to 12/31/02..................................   1.057541        0.879981             95    
MFS Research International Subaccount                                                                   
  07/02/01* to 12/31/01...................................   0.925357        0.845207          9,822    
  01/01/02 to 12/31/02....................................   0.845207        0.732504         63,544    
American Funds Growth Subaccount                                                                        
  07/02/01* to 12/31/01...................................  11.697271       10.312695          9,898    
  01/01/02 to 12/31/02....................................  10.312695        7.636280         41,293    
American Funds Growth -- Income Subaccount                                                              
  07/02/01* to 12/31/01...................................   7.926827        7.670699         15,325    
  01/01/02 to 12/31/02....................................   7.670699        6.139452         57,868    
American Funds Global Small Capitalization Subaccount                                                   
  07/02/01* to 12/31/01...................................   1.440175        1.325384          4,070    
  01/01/02 to 12/31/02....................................   1.325384        1.051600         31,805    

------------                                                                    

* Date on which the Contract first became available.                          

**Date on which the Subaccount first became available.                          

(1)On or about April 28, 2003, the Janus Growth Portfolio merged into the Janus 
Aggressive Growth Portfolio. Information shown for the Janus Aggressive   
Growth Portfolio is based on the May 1, 2001 inception of the Janus Growth
   Portfolio, and reflects the performance of the Janus Growth Portfolio through
the date of the merger.                                                   

(2)The Harris Oakmark International Portfolio Class E shares are only available 
under Contracts issued prior to May 1, 2003. Contracts issued on or after 
 that date will offer Class B shares, which impose a 12b-1 distribution fee.

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ACCUMULATION UNIT VALUES
(FOR AN ACCUMULATION UNIT OUTSTANDING THROUGH THE PERIOD) 

NEW ENGLAND VARIABLE ANNUITY SEPARATE ACCOUNT 
CONDENSED FINANCIAL INFORMATION 

                                                        [Enlarge/Download Table]

                                                                   1.85% VARIABLE ACCOUNT CHARGE        
                                                           ---------------------------------------------
                                                                                            NUMBER OF   
                                                           ACCUMULATION                    ACCUMULATION 
                                                            UNIT VALUE    ACCUMULATION        UNITS     
                                                           AT BEGINNING   UNIT VALUE AT   OUTSTANDING AT
                                                            OF PERIOD     END OF PERIOD   END OF PERIOD 
                                                           ------------   -------------   --------------
                                                                                                        
State Street Research Money Market Subaccount                                                           
  07/02/01* to 12/31/01...................................   2.044562        2.051424         201,503   
  01/01/02 to 12/31/02....................................   2.051424        2.037271         964,619   
Lehman Brothers Aggregate Bond Index Subaccount                                                         
  07/02/01* to 12/31/01...................................   1.084173        1.112895          40,082   
  01/01/02 to 12/31/02....................................   1.112895        1.201109         383,757   
Salomon Brothers Strategic Bond Opportunities Subaccount                                                
  07/02/01* to 12/31/01...................................   1.506894        1.538306         103,068   
  01/01/02 to 12/31/02....................................   1.538306        1.651501         351,381   
Salomon Brothers U.S. Government Subaccount                                                             
  07/02/01* to 12/31/01...................................   1.392026        1.430644         379,947   
  01/01/02 to 12/31/02....................................   1.430644        1.511490         977,904   
State Street Research Bond Income Subaccount                                                            
  07/02/01* to 12/31/01...................................   3.501451        3.619835          84,982   
  01/01/02 to 12/31/02....................................   3.619835        3.843753         367,970   
Balanced Subaccount                                                                                     
  07/02/01* to 12/31/01...................................   1.454822        1.425397         123,058   
  01/01/02 to 12/31/02....................................   1.425397        1.207217         265,627   
Alger Equity Growth Subaccount                                                                          
  07/02/01* to 12/31/01...................................   2.900635        2.643408          85,374   
  01/01/02 to 12/31/02....................................   2.643408        1.732406          87,089   
Davis Venture Value Subaccount                                                                          
  07/02/01* to 12/31/01...................................   2.705362        2.560928         191,591   
  01/01/02 to 12/31/02....................................   2.560928        2.097878         484,421   
FI Structured Equity Subaccount                                                                         
  07/02/01* to 12/31/01...................................   2.505256        2.269327          85,627   
  01/01/02 to 12/31/02....................................   2.269327        1.791900         174,701   
Harris Oakmark Large Cap Value Subaccount                                                               
  05/01/02** to 12/31/02..................................   1.165659        0.953207         167,441   
MetLife Stock Index Subaccount                                                                          
  07/02/01* to 12/31/01...................................   3.600500        3.327989          34,007   
  01/01/02 to 12/31/02....................................   3.327989        2.531318         165,994   
MFS Investors Trust Subaccount                                                                          
  07/02/01* to 12/31/01...................................   0.886078        0.819591          40,859   
  01/01/02 to 12/31/02....................................   0.819591        0.641705         156,500   
MFS Research Managers Subaccount                                                                        
  07/02/01** to 12/31/01..................................   0.966673        0.865552           8,533   
  01/01/02 to 12/31/02....................................   0.865552        0.644000          29,803   
Met/Putnam Voyager Subaccount                                                                           
  07/02/01* to 12/31/01...................................   0.571458        0.488634         124,798   
  01/01/02 to 12/31/02....................................   0.488634        0.340709         177,725   
State Street Research Investment Trust Subaccount                                                       
  07/02/01* to 12/31/01...................................   6.527604        5.948701          17,338   
  01/01/02 to 12/31/02....................................   5.948701        4.304731          29,816   
------------                                                                                            
 * Date on which the Contract first became available.                                                   
** Date on which the Subaccount first became available.                                                 

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                                                                   1.85% VARIABLE ACCOUNT CHARGE        
                                                           ---------------------------------------------
                                                                                            NUMBER OF   
                                                           ACCUMULATION                    ACCUMULATION 
                                                            UNIT VALUE    ACCUMULATION        UNITS     
                                                           AT BEGINNING   UNIT VALUE AT   OUTSTANDING AT
                                                            OF PERIOD     END OF PERIOD   END OF PERIOD 
                                                           ------------   -------------   --------------
                                                                                                        
State Street Research Large Cap Value Subaccount                                                        
  05/01/02** to 12/31/02..................................   1.000000        0.790023          86,591   
FI Mid Cap Opportunities Subaccount                                                                     
  05/01/02** to 12/31/02..................................   1.000000        0.807925          44,810   
Harris Oakmark Focused Value Subaccount                                                                 
  07/02/01* to 12/31/01...................................   2.417697        2.527342         151,414   
  01/01/02 to 12/31/02....................................   2.527342        2.258062         570,820   
Janus Mid Cap Subaccount                                                                                
  07/02/01* to 12/31/01...................................   1.842639        1.515283          43,023   
  01/01/02 to 12/31/02....................................   1.515283        1.053520          38,872   
MetLife Mid Cap Stock Index Subaccount                                                                  
  07/02/01* to 12/31/01...................................   1.046284        1.022927          59,366   
  01/01/02 to 12/31/02....................................   1.022927        0.852447         108,174   
Neuberger Berman Mid Cap Value Subaccount                                                               
  07/02/01* to 12/31/01...................................   1.532536        1.479666          16,606   
  01/01/02 to 12/31/02....................................   1.479666        1.308539         149,440   
Franklin Templeton Small Cap Growth Subaccount                                                          
  07/02/01* to 12/31/01...................................   0.952992        0.877059          66,878   
  01/01/02 to 12/31/02....................................   0.877059        0.619533         181,969   
Loomis Sayles Small Cap Subaccount                                                                      
  07/02/01* to 12/31/01...................................   2.299104        2.170658          23,355   
  01/01/02 to 12/31/02....................................   2.170658        1.669663         107,049   
Russell 2000 Index Subaccount                                                                           
  07/02/01* to 12/31/01...................................   1.203786        1.167838          49,396   
  01/01/02 to 12/31/02....................................   1.167838        0.910048         111,573   
State Street Research Aurora Subaccount                                                                 
  07/02/01* to 12/31/01...................................   1.422390        1.388638         157,084   
  01/01/02 to 12/31/02....................................   1.388638        1.070269         760,612   
Morgan Stanley EAFE Index Subaccount                                                                    
  07/02/01* to 12/31/01...................................   0.933426        0.839521          27,550   
  01/01/02 to 12/31/02....................................   0.839521        0.685993         103,767   
Putnam International Stock Subaccount                                                                   
  07/02/01* to 12/31/01...................................   1.198477        1.092445          16,241   
  01/01/02 to 12/31/02....................................   1.092445        0.883410         223,223   
Lord Abbett Bond Debenture Subaccount                                                                   
  07/02/01* to 12/31/01...................................   1.331819        1.336291          71,753   
  01/01/02 to 12/31/02....................................   1.336291        1.304275         144,282   
PIMCO Total Return Portfolio Subaccount                                                                 
  07/02/01* to 12/31/01...................................   1.005838        1.049534         287,549   
  01/01/02 to 12/31/02....................................   1.049534        1.126052       1,288,141   
Janus Aggressive Growth Subaccount(1)                                                                   
  07/02/01* to 12/31/01...................................   0.951001        0.772355         106,288   
  01/01/02 to 12/31/02....................................   0.772355        0.524510         148,841   
Met/AIM Mid Cap Core Equity Subaccount                                                                  
  05/01/02** to 12/31/02..................................   1.136835        0.961260          24,037   
T. Rowe Price Mid-Cap Growth Subaccount                                                                 
  07/02/01* to 12/31/01...................................   0.929338        0.820440          81,714   
  01/01/02 to 12/31/02....................................   0.820440        0.450730         134,696   
------------                                                                                            
 * Date on which the Contract first became available.                                                   
** Date on which the Subaccount first became available.                                                 

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                                                                   1.85% VARIABLE ACCOUNT CHARGE        
                                                           ---------------------------------------------
                                                                                            NUMBER OF   
                                                           ACCUMULATION                    ACCUMULATION 
                                                            UNIT VALUE    ACCUMULATION        UNITS     
                                                           AT BEGINNING   UNIT VALUE AT   OUTSTANDING AT
                                                            OF PERIOD     END OF PERIOD   END OF PERIOD 
                                                           ------------   -------------   --------------
                                                                                                        
Met/AIM Small Cap Growth Subaccount                                                                     
  05/01/02** to 12/31/02..................................   1.119366        0.842621          26,727   
PIMCO Innovation Subaccount                                                                             
  07/02/01* to 12/31/01...................................   0.756576        0.606956          95,989   
  01/01/02 to 12/31/02....................................   0.606956        0.293548          18,562   
Harris Oakmark International Subaccount -- Class E(2)                                                   
  05/01/02** to 12/31/02..................................   1.056950        0.878900           7,092   
MFS Research International Subaccount                                                                   
  07/02/01* to 12/31/01...................................   0.925002        0.844460          54,060   
  01/01/02 to 12/31/02....................................   0.844460        0.731124         101,507   
American Funds Growth Subaccount                                                                        
  07/02/01* to 12/31/01...................................  11.495493       10.129730          22,270   
  01/01/02 to 12/31/02....................................  10.129730        7.493288         102,806   
American Funds Growth -- Income Subaccount                                                              
  07/02/01* to 12/31/01...................................   7.790110        7.534636          39,554   
  01/01/02 to 12/31/02....................................   7.534636        6.024514         178,521   
American Funds Global Small Capitalization Subaccount                                                   
  07/02/01* to 12/31/01...................................   1.435610        1.320522          93,775   
  01/01/02 to 12/31/02....................................   1.320522        1.046693         166,626   

------------                                                                    

* Date on which the Contract first became available.                          

** Date on which the Subaccount first became available.                         

(1) On or about April 28, 2003, the Janus Growth Portfolio merged into the Janus
Aggressive Growth Portfolio. Information shown for the Janus Aggressive 
  Growth Portfolio is based on the May 1, 2001 inception of the Janus Growth
Portfolio, and reflects the performance of the Janus Growth Portfolio   
through the date of the merger.                                         

(2) The Harris Oakmark International Portfolio Class E shares are only available
 under Contracts issued prior to May 1, 2003. Contracts issued on or after
   that date will offer Class B shares, which impose a 12b-1 distribution fee.

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ACCUMULATION UNIT VALUES
(FOR AN ACCUMULATION UNIT OUTSTANDING THROUGH THE PERIOD) 

NEW ENGLAND VARIABLE ANNUITY SEPARATE ACCOUNT 
CONDENSED FINANCIAL INFORMATION 

                                                        [Enlarge/Download Table]

                                                                 1.95% VARIABLE ACCOUNT CHARGE         
                                                        -----------------------------------------------
                                                                                           NUMBER OF   
                                                        ACCUMULATION                      ACCUMULATION 
                                                         UNIT VALUE     ACCUMULATION         UNITS     
                                                        AT BEGINNING    UNIT VALUE AT    OUTSTANDING AT
                                                         OF PERIOD      END OF PERIOD    END OF PERIOD 
                                                        ------------    -------------    --------------
                                                                                                       
State Street Research Money Market Subaccount                                                          
  07/02/01* to 12/31/01................................   2.008368        2.014105          220,232    
  01/01/02 to 12/31/02.................................   2.014105        1.998209          272,112    
Lehman Brothers Aggregate Bond Index Subaccount                                                        
  07/02/01* to 12/31/01................................   1.081307        1.109401           23,997    
  01/01/02 to 12/31/02.................................   1.109401        1.196141           75,524    
Salomon Brothers Strategic Bond Opportunities                                                          
  Subaccount                                                                                           
  07/02/01* to 12/31/01................................   1.496872        1.527313           18,898    
  01/01/02 to 12/31/02.................................   1.527313        1.638061          156,100    
Salomon Brothers U.S. Government Subaccount                                                            
  07/02/01* to 12/31/01................................   1.382767        1.420421           81,484    
  01/01/02 to 12/31/02.................................   1.420421        1.499189          307,626    
State Street Research Bond Income Subaccount                                                           
  07/02/01* to 12/31/01................................   3.439469        3.553986           59,043    
  01/01/02 to 12/31/02.................................   3.553986        3.770058          143,354    
Balanced Subaccount                                                                                    
  07/02/01* to 12/31/01................................   1.445146        1.415210           68,427    
  01/01/02 to 12/31/02.................................   1.415210        1.197389          308,024    
Alger Equity Growth Subaccount                                                                         
  07/02/01* to 12/31/01................................   2.881346        2.624517           12,874    
  01/01/02 to 12/31/02.................................   2.624517        1.718302           51,854    
Davis Venture Value Subaccount                                                                         
  07/02/01* to 12/31/01................................   2.687376        2.542631          121,352    
  01/01/02 to 12/31/02.................................   2.542631        2.080804          313,036    
FI Structured Equity Subaccount                                                                        
  07/02/01* to 12/31/01................................   2.484860        2.249728           46,359    
  01/01/02 to 12/31/02.................................   2.249728        1.774645          165,117    
Harris Oakmark Large Cap Value Subaccount                                                              
  05/01/02** to 12/31/02...............................   1.161613        0.949262           25,941    
MetLife Stock Index Subaccount                                                                         
  07/02/01* to 12/31/01................................   3.560497        3.289369           24,005    
  01/01/02 to 12/31/02.................................   3.289369        2.499437           95,818    
MFS Investors Trust Subaccount                                                                         
  07/02/01* to 12/31/01................................   0.884152        0.817401               --    
  01/01/02 to 12/31/02.................................   0.817401        0.639349              113    
MFS Research Managers Subaccount                                                                       
  07/02/01* to 12/31/01................................   0.964571        0.863239           11,616    
  01/01/02 to 12/31/02.................................   0.863239        0.641635           43,565    
Met/Putnam Voyager Subaccount                                                                          
  07/02/01* to 12/31/01................................   0.570788        0.487817          182,320    
  01/01/02 to 12/31/02.................................   0.487817        0.339798          201,314    
State Street Research Investment Trust Subaccount                                                      
  07/02/01* to 12/31/01................................   6.410958        5.839478            4,566    
  01/01/02 to 12/31/02.................................   5.839478        4.221459           16,215    

------------                                                                                           
 * Date on which the Contract first became available.                                                  
** Date on which the Subaccount first became available.                                                

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                                                                 1.95% VARIABLE ACCOUNT CHARGE         
                                                        -----------------------------------------------
                                                                                           NUMBER OF   
                                                        ACCUMULATION                      ACCUMULATION 
                                                         UNIT VALUE     ACCUMULATION         UNITS     
                                                        AT BEGINNING    UNIT VALUE AT    OUTSTANDING AT
                                                         OF PERIOD      END OF PERIOD    END OF PERIOD 
                                                        ------------    -------------    --------------
                                                                                                       
State Street Research Large Cap Value Subaccount                                                       
  05/01/02** to 12/31/02...............................   1.000000        0.789493              100    
FI Mid Cap Opportunities Subaccount                                                                    
  05/01/02** to 12/31/02...............................   1.000000        0.807384              100    
Harris Oakmark Focused Value Subaccount                                                                
  07/02/01* to 12/31/01................................   2.398010        2.505512           34,665    
  01/01/02 to 12/31/02.................................   2.505512        2.236317          277,772    
Janus Mid Cap Subaccount                                                                               
  07/02/01* to 12/31/01................................   1.834666        1.507971               --    
  01/01/02 to 12/31/02.................................   1.507971        1.047386           17,205    
MetLife Mid Cap Stock Index Subaccount                                                                 
  07/02/01* to 12/31/01................................   1.045247        1.021402           58,568    
  01/01/02 to 12/31/02.................................   1.021402        0.850324           96,070    
Neuberger Berman Mid Cap Value Subaccount                                                              
  07/02/01* to 12/31/01................................   1.528486        1.475020            5,550    
  01/01/02 to 12/31/02.................................   1.475020        1.303124            5,590    
Franklin Templeton Small Cap Growth Subaccount                                                         
  07/02/01* to 12/31/01................................   0.952829        0.876471           83,475    
  01/01/02 to 12/31/02.................................   0.876471        0.618498          139,280    
Loomis Sayles Small Cap Subaccount                                                                     
  07/02/01* to 12/31/01................................   2.282672        2.154067           15,539    
  01/01/02 to 12/31/02.................................   2.154067        1.655242           51,749    
Russell 2000 Index Subaccount                                                                          
  07/02/01* to 12/31/01................................   1.200603        1.164168           41,306    
  01/01/02 to 12/31/02.................................   1.164168        0.906279           77,389    
State Street Research Aurora Subaccount                                                                
  07/02/01* to 12/31/01................................   1.420982        1.386570           30,583    
  01/01/02 to 12/31/02.................................   1.386570        1.067605          234,686    
Morgan Stanley EAFE Index Subaccount                                                                   
  07/02/01* to 12/31/01................................   0.930958        0.836883            6,859    
  01/01/02 to 12/31/02.................................   0.836883        0.683153           42,456    
Putnam International Stock Subaccount                                                                  
  07/02/01* to 12/31/01................................   1.186338        1.080839           10,065    
  01/01/02 to 12/31/02.................................   1.080839        0.873150           37,534    
Lord Abbett Bond Debenture Subaccount                                                                  
  07/02/01* to 12/31/01................................   1.324949        1.328735            5,256    
  01/01/02 to 12/31/02.................................   1.328735        1.295604           41,947    
PIMCO Total Return Portfolio Subaccount                                                                
  07/02/01* to 12/31/01................................   1.005452        1.048307               --    
  01/01/02 to 12/31/02.................................   1.048307        1.123611          142,585    
Janus Aggressive Growth Subaccount(1)                                                                  
  07/02/01* to 12/31/01................................   0.950839        0.771837          107,551    
  01/01/02 to 12/31/02.................................   0.771837        0.523633          211,745    
Met/AIM Mid Cap Core Equity Subaccount                                                                 
  05/01/02** to 12/31/02...............................   1.136200        0.960080            5,923    
T. Rowe Price Mid-Cap Growth Subaccount                                                                
  07/02/01* to 12/31/01................................   0.928979        0.819713           24,117    
  01/01/02 to 12/31/02.................................   0.819713        0.449879           92,081    
Met/AIM Small Cap Growth Subaccount                                                                    
  05/01/02** to 12/31/02...............................   1.118741        0.841586           34,441    
------------                                                                                           
 * Date on which the Contract first became available.                                                  
** Date on which the Subaccount first became available.                                                

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                                                                 1.95% VARIABLE ACCOUNT CHARGE         
                                                        -----------------------------------------------
                                                                                           NUMBER OF   
                                                        ACCUMULATION                      ACCUMULATION 
                                                         UNIT VALUE     ACCUMULATION         UNITS     
                                                        AT BEGINNING    UNIT VALUE AT    OUTSTANDING AT
                                                         OF PERIOD      END OF PERIOD    END OF PERIOD 
                                                        ------------    -------------    --------------
                                                                                                       
PIMCO Innovation Subaccount                                                                            
  07/02/01* to 12/31/01................................   0.756284        0.606417           16,536    
  01/01/02 to 12/31/02.................................   0.606417        0.292993           65,868    
Harris Oakmark International Subaccount -- Class E(2)                                                  
  05/01/02** to 12/31/02...............................   1.056359        0.877821               95    
MFS Research International Subaccount                                                                  
  07/02/01* to 12/31/01................................   0.924647        0.843713            5,957    
  01/01/02 to 12/31/02.................................   0.843713        0.729747           46,061    
American Funds Growth Subaccount                                                                       
  07/02/01* to 12/31/01................................  11.297123        9.949944           16,083    
  01/01/02 to 12/31/02.................................   9.949944        7.352922           66,881    
American Funds Growth -- Income Subaccount                                                             
  07/02/01* to 12/31/01................................   7.655703        7.400937            9,338    
  01/01/02 to 12/31/02.................................   7.400937        5.911686           41,859    
American Funds Global Small Capitalization Subaccount                                                  
  07/02/01* to 12/31/01................................   1.431058        1.315676            2,408    
  01/01/02 to 12/31/02.................................   1.315676        1.041808           38,659    

------------                                                                    

* Date on which the Contract first became available.                          

** Date on which the Subaccount first became available.                         

(1) On or about April 28, 2003, the Janus Growth Portfolio merged into the Janus
Aggressive Growth Portfolio. Information shown for the Janus Aggressive 
  Growth Portfolio is based on the May 1, 2001 inception of the Janus Growth
Portfolio, and reflects the performance of the Janus Growth Portfolio   
through the date of the merger.                                         

(2) The Harris Oakmark International Portfolio Class E shares are only available
 under Contracts issued prior to May 1, 2003. Contracts issued on or after
   that date will offer Class B shares, which impose a 12b-1 distribution fee.

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ACCUMULATION UNIT VALUES
(FOR AN ACCUMULATION UNIT OUTSTANDING THROUGH THE PERIOD) 

NEW ENGLAND VARIABLE ANNUITY SEPARATE ACCOUNT 
CONDENSED FINANCIAL INFORMATION 

                                                        [Enlarge/Download Table]

                                                                   2.00% VARIABLE ACCOUNT CHARGE        
                                                           ---------------------------------------------
                                                                                            NUMBER OF   
                                                           ACCUMULATION                    ACCUMULATION 
                                                            UNIT VALUE    ACCUMULATION        UNITS     
                                                           AT BEGINNING   UNIT VALUE AT   OUTSTANDING AT
                                                            OF PERIOD     END OF PERIOD   END OF PERIOD 
                                                           ------------   -------------   --------------
                                                                                                        
State Street Research Money Market Subaccount                                                           
  07/02/01 to 12/31/01....................................   1.990512       1.995700             --     
  01/01/02 to 12/31/02....................................   1.995700       1.978959          2,170     
Lehman Brothers Aggregate Bond Index Subaccount                                                         
  07/02/01* to 12/31/01...................................   1.079877       1.107657             --     
  01/01/02 to 12/31/02....................................   1.107657       1.193664             93     
Salomon Brothers Strategic Bond Opportunities Subaccount                                                
  07/02/01* to 12/31/01...................................   1.491886       1.521846             --     
  01/01/02 to 12/31/02....................................   1.521846       1.631381             67     
Salomon Brothers U.S. Government Subaccount                                                             
  07/02/01* to 12/31/01...................................   1.378161       1.415336             --     
  01/01/02 to 12/31/02....................................   1.415336       1.493076          2,882     
State Street Research Bond Income Subaccount                                                            
  07/02/01* to 12/31/01...................................   3.408891       3.521512             --     
  01/01/02 to 12/31/02....................................   3.521512       3.733743             29     
Balanced Subaccount                                                                                     
  07/02/01* to 12/31/01...................................   1.440332       1.410144             --     
  01/01/02 to 12/31/02....................................   1.410144       1.192506          3,587     
Alger Equity Growth Subaccount                                                                          
  07/02/01* to 12/31/01...................................   2.871750       2.615123             --     
  01/01/02 to 12/31/02....................................   2.615123       1.711293             35     
Davis Venture Value Subaccount                                                                          
  07/02/01* to 12/31/01...................................   2.678428       2.533532             --     
  01/01/02 to 12/31/02....................................   2.533532       2.072320             37     
FI Structured Equity Subaccount                                                                         
  07/02/01* to 12/31/01...................................   2.474725       2.239991             --     
  01/01/02 to 12/31/02....................................   2.239991       1.766080             40     
Harris Oakmark Large Cap Value Subaccount                                                               
  05/01/02** to 12/31/02..................................   1.159596       0.947296             86     
MetLife Stock Index Subaccount                                                                          
  07/02/01* to 12/31/01...................................   3.540662       3.270228             --     
  01/01/02 to 12/31/02....................................   3.270228       2.483647             28     
MFS Investors Trust Subaccount                                                                          
  07/02/01* to 12/31/01...................................   0.883191       0.816308             --     
  01/01/02 to 12/31/02....................................   0.816308       0.638175            113     
MFS Research Managers Subaccount                                                                        
  07/02/01* to 12/31/01...................................   0.963522       0.862084             --     
  01/01/02 to 12/31/02....................................   0.862084       0.640456            104     
Met/Putnam Voyager Subaccount                                                                           
  07/02/01* to 12/31/01...................................   0.570453       0.487409             --     
  01/01/02 to 12/31/02....................................   0.487409       0.339344            175     
State Street Research Investment Trust Subaccount                                                       
  07/02/01* to 12/31/01...................................   6.353418       5.785620             --     
  01/01/02 to 12/31/02....................................   5.785620       4.180429             16     

------------                                                                    

* Date on which the Contract first became available.                          

**Date on which the Subaccount first became available.                          

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                                                                   2.00% VARIABLE ACCOUNT CHARGE        
                                                           ---------------------------------------------
                                                                                            NUMBER OF   
                                                           ACCUMULATION                    ACCUMULATION 
                                                            UNIT VALUE    ACCUMULATION        UNITS     
                                                           AT BEGINNING   UNIT VALUE AT   OUTSTANDING AT
                                                            OF PERIOD     END OF PERIOD   END OF PERIOD 
                                                           ------------   -------------   --------------
                                                                                                        
State Street Research Large Cap Value Subaccount                                                        
  05/01/02** to 12/31/02..................................   1.000000       0.789229          5,415     
FI Mid Cap Opportunities Subaccount                                                                     
  05/01/02** to 12/31/02..................................   1.000000       0.807114            100     
Harris Oakmark Focused Value Subaccount                                                                 
  07/02/01* to 12/31/01...................................   2.388226       2.494667             --     
  01/01/02 to 12/31/02....................................   2.494667       2.225523             42     
Janus Mid Cap Subaccount                                                                                
  07/02/01* to 12/31/01...................................   1.830692       1.504328             --     
  01/01/02 to 12/31/02....................................   1.504328       1.044332             55     
MetLife Mid Cap Stock Index Subaccount                                                                  
  07/02/01* to 12/31/01...................................   1.044728       1.020640             --     
  01/01/02 to 12/31/02....................................   1.020640       0.849265             96     
Neuberger Berman Mid Cap Value Subaccount                                                               
  07/02/01* to 12/31/01...................................   1.526466       1.472702             --     
  01/01/02 to 12/31/02....................................   1.472702       1.300425             66     
Franklin Templeton Small Cap Growth Subaccount                                                          
  07/02/01* to 12/31/01...................................   0.952748       0.876178             --     
  01/01/02 to 12/31/02....................................   0.876178       0.617981            105     
Loomis Sayles Small Cap Subaccount                                                                      
  07/02/01* to 12/31/01...................................   2.274500       2.145819             --     
  01/01/02 to 12/31/02....................................   2.145819       1.648078             44     
Russell 2000 Index Subaccount                                                                           
  07/02/01* to 12/31/01...................................   1.199015       1.162338             --     
  01/01/02 to 12/31/02....................................   1.162338       0.904401             83     
State Street Research Aurora Subaccount                                                                 
  07/02/01* to 12/31/01...................................   1.420278       1.385537             --     
  01/01/02 to 12/31/02....................................   1.385537       1.066275             70     
Morgan Stanley EAFE Index Subaccount                                                                    
  07/02/01* to 12/31/01...................................   0.929727       0.835567             --     
  01/01/02 to 12/31/02....................................   0.835567       0.681737            108     
Putnam International Stock Subaccount                                                                   
  07/02/01* to 12/31/01...................................   1.180315       1.075083             --     
  01/01/02 to 12/31/02....................................   1.075083       0.868065             85     
Lord Abbett Bond Debenture Subaccount                                                                   
  07/02/01* to 12/31/01...................................   1.321527       1.324973             --     
  01/01/02 to 12/31/02....................................   1.324973       1.291289             76     
PIMCO Total Return Portfolio Subaccount                                                                 
  07/02/01* to 12/31/01...................................   1.005260       1.048192             --     
  01/01/02 to 12/31/02....................................   1.048192       1.122926             99     
Janus Aggressive Growth Subaccount(1)                                                                   
  07/02/01* to 12/31/01...................................   0.950758       0.771578             --     
  01/01/02 to 12/31/02....................................   0.771578       0.523195            105     
Met/AIM Mid Cap Core Equity Subaccount                                                                  
  05/01/02** to 12/31/02..................................   1.135883       0.959490             88     
T. Rowe Price Mid-Cap Growth Subaccount                                                                 
  07/02/01* to 12/31/01...................................   0.928800       0.819350             --     
  01/01/02 to 12/31/02....................................   0.819350       0.449454            108     

------------                                                                    

* Date on which the Contract first became available.                          

**Date on which the Subaccount first became available.                          

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                                                                   2.00% VARIABLE ACCOUNT CHARGE        
                                                           ---------------------------------------------
                                                                                            NUMBER OF   
                                                           ACCUMULATION                    ACCUMULATION 
                                                            UNIT VALUE    ACCUMULATION        UNITS     
                                                           AT BEGINNING   UNIT VALUE AT   OUTSTANDING AT
                                                            OF PERIOD     END OF PERIOD   END OF PERIOD 
                                                           ------------   -------------   --------------
                                                                                                        
Met/AIM Small Cap Growth Subaccount                                                                     
  05/01/01** to 12/31/02..................................   1.118428       0.841069             89     
PIMCO Innovation Subaccount                                                                             
  07/02/01* to 12/31/01...................................   0.756138       0.606148             --     
  01/01/02 to 12/31/02....................................   0.606148       0.292717            132     
Harris Oakmark International Subaccount -- Class E(2)                                                   
  05/02/02** to 12/31/02..................................   1.056063       0.877282             95     
MFS Research International Subaccount                                                                   
  07/02/01* to 12/31/01...................................   0.924469       0.843341             --     
  01/01/02 to 12/31/02....................................   0.843341       0.729059            108     
American Funds Growth Subaccount                                                                        
  07/02/01* to 12/31/01...................................  11.199225       9.861251             --     
  01/01/02 to 12/31/02....................................   9.861251       7.283728              9     
American Funds Growth -- Income Subaccount                                                              
  07/02/01* to 12/31/01...................................   7.589371       7.334979             --     
  01/01/02 to 12/31/02....................................   7.334979       5.856067             13     
American Funds Global Small Capitalization Subaccount                                                   
  07/02/01* to 12/31/01...................................   1.428787       1.313260             --     
  01/01/02 to 12/31/02....................................   1.313260       1.039374             70     

------------                                                                    

* Date on which the Contract first became available.                          

** Date on which the Subaccount first became available.                         

(1) On or about April 28, 2003, the Janus Growth Portfolio merged into the Janus
Aggressive Growth Portfolio. Information shown for the Janus Aggressive 
  Growth Portfolio is based on the May 1, 2001 inception of the Janus Growth
Portfolio, and reflects the performance of the Janus Growth Portfolio   
through the date of the merger.                                         

(2) The Harris Oakmark International Portfolio Class E shares are only available
 under Contracts issued prior to May 1, 2003. Contracts issued on or after
   that date will offer Class B shares, which impose a 12b-1 distribution fee.

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THE FIXED ACCOUNT 

     Unless you request otherwise, a partial withdrawal will reduce the Contract
Value in the subaccounts of the Variable Account and the Fixed Account          
proportionately. The annual Contract Administrative Fee will be deducted        
entirely from the Contract Value in the Variable Account, and not from the      
Contract Value in the Fixed Account or the Company's general account. Except as 
described below, amounts in the Fixed Account are subject to the same rights and
limitations as are amounts in the Variable Account with respect to transfers,   
withdrawals and partial withdrawals. The following special rules apply to       
transfers involving the Fixed Account.                                          

    The amount of Contract Value which you may transfer from the Fixed Account
is limited to the greater of: 25% of the Contract Value in the Fixed Account on 
the most recent Contract Anniversary, and the amount of Contract Value that was 
transferred from the Fixed Account in the previous Contract Year (amounts       
transferred under a DCA program are not included), except with our consent.     
However these limits do not apply to new deposits to the Fixed Account for which
you elected a dollar cost averaging program within 30 days from the date of the 
deposit. In such case, the amount of Contract Value which you may transfer from 
the Fixed Account will be the greatest of: a) 25% of the Contract Value in the  
Fixed Account on the most recent Contract Anniversary; b) the amount of Contract
Value that you transferred from the Fixed Account in the previous Contract Year;
or c) the amount of Contract Value in the Fixed Account to be transferred out of
the Fixed Account under dollar cost averaging elected on new deposits within 30 
days from the date of deposit. We allow one dollar cost averaging program to be 
active at a time. Therefore, if you transfer pre-existing assets (corresponding 
to Contract Value for which the dollar cost averaging program was not elected   
within 30 days from the date of each deposit) out of the Fixed Account under the
dollar cost averaging program and would like to transfer up to 100% of new      
deposits under the program, then the dollar cost averaging program on the       
pre-existing assets will be canceled and a new program will begin with respect  
to new deposits. In this case, the pre-existing assets may still be transferred 
out of the Fixed Account, however, not under a dollar cost averaging program,   
subject to the limitations on transfers generally out of the Fixed Account. We  
intend to restrict purchase payments and transfers of Contract Value into the   
Fixed Account: (1) if the interest rate which we would credit to the deposit    
would not be less than the minimum rate required by your state (for Contracts   
issued prior to May 1, 2003, this rate will not be less than 3%); or (2) if the 
total Contract Value in the Fixed Account exceeds a maximum amount published by 
us. In addition, we intend to restrict transfers of Contract Value into the     
Fixed Account, and reserve the right to restrict purchase payments into the     
Fixed Account, for 180 days following a transfer out of the Fixed Account.      

We reserve the right to delay transfers, withdrawals and partial      
withdrawals from the Fixed Account for up to six months.                        

TAX STATUS OF THE CONTRACTS 

   Tax law imposed several requirements that variable annuities must satisfy
in order to receive the tax treatment normally accorded to annuity contracts.   

  Diversification Requirements.  The Internal Revenue Code (Code) requires
that the investments of each investment division of the separate account        
underlying the Contracts be "adequately diversified" in order for the Contracts 
to be treated as annuity contracts for Federal income tax purposes. It is       
intended that each investment division, through the fund in which it invests,   
will satisfy these diversification requirements.                                

Owner Control.  In certain circumstances, owners of variable annuity  
contracts have been considered for Federal income tax purposes to be the owners 
of the assets of the separate account supporting their contracts due to their   
ability to exercise investment control over those assets. When this is the case 
the contract owners have been currently taxed on income and gains attributable  
to the variable account assets. There is little guidance in this area, and some 
features of our Contracts, such as the flexibility of an Owner to allocate      
premium payments and transfer amounts among the investment divisions of the     
separate account, have not been explicitly addressed in published rulings. While
we believe that the Contracts do not give Owners investment control over        
separate account assets, we reserve the right to modify the Contracts as        
necessary to prevent an Owner from being treated as the Owner of the separate   
account assets supporting the Contract.                                         

    Required Distributions.  In order to be treated as an annuity contract for
Federal income tax purposes, Section 72(s) of the Code generally requires any   
Non-Qualified Contract to contain certain provisions specifying how             

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your interest in the Contract will be distributed in the event of the death of  
an Owner of the Contract (or on the death of, or change in, any primary         
annuitant where the Contract is owned by a non-natural person). Specifically,   
section 72(s) requires that (a) if any Owner dies on or after the annuity       
starting date, but prior to the time the entire interest in the Contract has    
been distributed, the entire interest in the Contract will be distributed at    
least as rapidly as under the method of distribution being used as of the date  
of such Owner's death; and (b) if any Owner dies prior to the annuity starting  
date, the entire interest in the Contract will be distributed within five years 
after the date of such Owner's death. These requirements will be considered     
satisfied as to any portion of an Owner's interest which is payable to or for   
the benefit of a designated beneficiary and which is distributed over the life  
of such designated beneficiary or over a period not extending beyond the life   
expectancy of that beneficiary, provided that such distributions begin within   
one year of the Owner's death. The designated beneficiary refers to a natural   
person designated by the Owner as a beneficiary and to whom ownership of the    
Contract passes by reason of death. However, if the designated beneficiary is   
the surviving spouse of the deceased Owner, the Contract may be continued with  
the surviving spouse as the new Owner.                                          

    The Non-Qualified Contracts contain provisions that are intended to comply
with these Code requirements, although no regulations interpreting these        
requirements have yet been issued. We intend to review such provisions and      
modify them if necessary to assure that they comply with the applicable         
requirements when such requirements are clarified by regulation or otherwise.   

Other rules may apply to Qualified Contracts.                         

EXPERTS 

   The financial statements of New England Variable Annuity Separate Account
of New England Life insurance Company ("NELICO") included in this Statement of  
Additional Information have been audited by Deloitte & Touche LLP, independent  
auditors, as stated in their report appearing herein, and are included in       
reliance upon the reports of such firm given their authority as experts in      
accounting and auditing. The consolidated financial statements of NELICO and    
subsidiaries included in this Statement of Additional Information have been     
audited by Deloitte & Touche LLP, independent auditors, as stated in their      
report appearing herein (which report expresses an unqualified opinion and      
includes an explanatory paragraph referring to the change in method of          
accounting for goodwill and other intangible assets to conform to Statement of  
Financial Accounting Standards No. 142), and are included in reliance upon the  
reports of such firm given upon their authority as experts in accounting and    
auditing.                                                                       

LEGAL MATTERS 

Legal matters in connection with the Contracts described in this      
registration statement have been passed on by Anne Goggin, General Counsel of   
the Company. Sutherland Asbill & Brennan LLP, Washington, D.C., has provided    
advice on certain matters relating to the Federal securities laws.              

  The SEC requires the Eligible Funds' Board of Trustees (or Directors) to
monitor events to identify conflicts that may arise from the sale of shares to  
variable life and variable annuity separate accounts of affiliated and, if      
applicable, unaffiliated insurance companies and to Qualified Plans, if         
applicable. Conflicts could arise as a result of changes in state insurance law 
or Federal income tax law, changes in investment management of any portfolio of 
the Eligible Funds, or differences between voting instructions given by variable
life and variable annuity contract owners and Qualified Plans, for example. If  
there is a material conflict, the Boards of Trustees (or Directors) will have an
obligation to determine what action should be taken, including the removal of   
the affected subaccount(s) from the Eligible Fund(s), if necessary. If the      
Company believes any Eligible Fund action is insufficient, the Company will     
consider taking other action to protect Contract Owners. There could, however,  
be unavoidable delays or interruptions of operations of the Variable Account    
that the Company may be unable to remedy.                                       

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APPENDIX A

ADVERTISING AND PROMOTIONAL LITERATURE

   Advertising and promotional literature prepared by NELICO for products it
issues or administers may include references to MetLife Advisers or its         
affiliates, such as State Street Research & Management Company.                 

   NELICO's advertising and promotional literature may include references to
other NELICO affiliates. References may also be made to NELICO's parent company,
MetLife and the services it provides to the Metropolitan Fund.                  

     References to subadvisers unaffiliated with MetLife Advisers or NELICO that
perform subadvisory functions on behalf of the Metropolitan Fund, the Met       
Investors Series or the American Funds Insurance Series and their respective    
fund groups may be contained in NELICO's advertising and promotional literature 
including, but not limited to, Fred Alger Management Inc., Davis Selected       
Advisers, L.P., Salomon Brothers Asset Management Inc and Putnam Investment     
Management, LLC.                                                                

NELICO's advertising and promotional material may include, but is not 
limited to, discussions of the following information about both affiliated and  
unaffiliated entities:                                                          

 --  Specific and general assessments and forecasts regarding the U.S.
         economy, world economies, the economics of specific nations and their
impact on the Series                                        

--  Specific and general investment emphasis, specialties, fields of
expertise, competencies, operations and functions           

    --  Specific and general investment philosophies, strategies, processes,
techniques and types of analysis                            

--  Specific and general sources of information, economic models,   
        forecasts and data services utilized, consulted or considered in the
course of providing advisory or other services              

    --  The corporate histories, founding dates and names of founders of the
entities                                                    

--  Awards, honors and recognition given to the firms               

--  The names of those with ownership interest and the percentage of
ownership                                                   

    --  The industries and sectors from which clients are drawn and specific
  client names and background information on current individual,
     corporate and institutional clients, including pension and profit
sharing plans                                               

   --  Current capitalization, levels of profitability and other financial
and statistical information                                 

--  Identification of portfolio managers, researchers, economists,  
principals and other staff members and employees            

     --  The specific credentials of the above individuals, including, but not
       limited to, previous employment, current and past positions, titles
         and duties performed, industry experience, educational background and
degrees, awards and honors                                  

--  Current and historical statistics about:                        

- total dollar amount of assets managed                               
  - MetLife Advisers assets managed in total and/or by Series or Portfolio
- the growth of assets                                                
- asset types managed                                                 
- numbers of principal parties and employees, and the length of their 
      tenure, including officers, portfolio managers, researchers, economists,
technicians and support staff                                     
- the above individuals' total and average number of years of industry
 experience and the total and average length of their service to the
adviser or the subadviser                                         

  --  The general and specific strategies applied by the advisers in the
       management of the Metropolitan Fund's portfolios including, but not
limited to:                                                 

     - the pursuit of growth, value, income oriented, risk management or other
strategies                                                      
- the manner and degree to which the strategy is pursued            
- whether the strategy is conservative, moderate or extreme and an  
explanation of other features, attributes                       
- the types and characteristics of investments sought and specific  
portfolio holdings                                              

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    - the actual or potential impact and result from strategy implementation
   - through its own areas of expertise and operations, the value added by
subadvisers to the management process                           
 - the disciplines it employs, e.g., in the case of Loomis Sayles, the
   strict buy/sell guidelines and focus on sound value it employs, and
goals and benchmarks that it establishes in management          
     - the systems utilized in management, the features and characteristics of
   those systems and the intended results from such computer analysis,
     e.g., an advisers' or subadvisers' efforts to identify overvalued and
undervalued issues.                                             

    --  Specific and general references to portfolio managers and funds that
        they serve as portfolio manager of, other than the Eligible Funds of
 the Metropolitan Fund, Met Investors Series or American Funds
      Insurance Series, and those families of funds. Any such references
     will indicate that the Metropolitan Fund, Met Investors Series or
       American Funds Insurance Series and the other funds of the managers
     differ as to performance, objectives, investment restrictions and
limitations, portfolio composition, asset size and other    
        characteristics, including fees and expenses. References may also be
     made to industry rankings and ratings of Eligible Funds and other
 funds managed by the Eligible Funds' adviser and subadvisers,
       including but not limited to, those provided by Morningstar, Lipper
Analytical Services, Forbes and Worth.                      

In addition, promotional materials may include:                       

     New England Securities Corporation an indirect subsidiary of NELICO, may be
referenced in Eligible Fund advertising and promotional literature concerning   
the marketing services it provides.                                             

    Additional information contained in advertising and promotional literature
may include: rankings and ratings of the Eligible Funds including, but not      
limited to, those of Morningstar and Lipper Analytical Services; statistics     
about the advisers', fund groups' or a specific fund's assets under management; 
the histories of the advisers and biographical references to portfolio managers 
and other staff including, but not limited to, background, credentials, honors, 
awards and recognition received by the advisers and their personnel; and        
commentary about the advisers, their funds and their personnel from third-party 
sources including newspapers, magazines, periodicals, radio, television or other
electronic media.                                                               

  References to the Eligible Funds may be included in NELICO's advertising
and promotional literature about its 401(k) and retirement plans. The           
information may include, but is not limited to:                                 

      --  Specific and general reference to industry statistics regarding 401(k)
      and retirement plans including historical information and industry
          trends and forecasts regarding the growth of assets, numbers of plans,
       funding vehicles, participants, sponsors and other demographic data
       relating to plans, participants and sponsors, third party and other
          administrators, benefits consultants and firms and other organizations
          involved in 401(k) and retirement programs with whom NELICO may or may
not have a relationship.                                    

   --  Specific and general reference to comparative ratings, rankings and
        other forms of evaluation as well as statistics regarding the NELICO
         401(k) or retirement plan funding vehicle produced by, including, but
         not limited to, Access Research, Dalbar, Investment Company Institute
and other industry authorities, research organizations and  
publications.                                               

   --  Specific and general discussion of economic, legislative, and other
          environmental factors affecting 401(k) or retirement plans, including,
  but not limited to, statistics, detailed explanations or broad
summaries of:                                               

    - past, present and prospective tax regulation, Internal Revenue Service
requirements and rules, including, but not limited to, reporting
        standards, minimum distribution notices, Form 5500, Form 1099R and other
     relevant forms and documents, Department of Labor rules and standards
and other regulation. This includes past, current and future    
initiatives, interpretive releases and positions of regulatory  
        authorities about the past, current or future eligibility, availability,
       operations, administration, structure, features, provisions or benefits
of 401(k) and retirement plans.                                 
- information about the history, status and future trends of Social 
   Security and similar government benefit programs including, but not
       limited to, eligibility and participation, availability, operations and
        administration, structure and design, features, provisions, benefits and
costs.                                                          

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    --  Specific and general discussion of the benefits of 401(k) investment
  and retirement plans, and, in particular, the NELICO 401(k) or
    retirement plans, to the participant and plan sponsor, including
explanations, statistics and other data, about:             

- increased employee retention                                      
- reinforcement or creation of morale                               
- deductibility of contributions for participants                   
- deductibility of expenses for employers                           
- tax deferred growth, including illustrations and charts           
- loan features and exchanges among accounts                        
    - educational services materials and efforts, including, but not limited
    to, videos, slides, presentation materials, brochures, an investment
  calculator, payroll stuffers, quarterly publications, releases and
       information on a periodic basis and the availability of wholesalers and
other personnel.                                                

     --  Specific and general reference to the benefits of investing in mutual
       funds for 401(k) and retirement plans, and, in particular, the Fund
          and investment in NELICO's 401(k) and retirement plans, including, but
not limited to:                                             

     - the significant economies of scale experienced by mutual fund companies
in the 401(k) and retirement benefits arena                     
- broad choice of investment options and competitive fees           
- plan sponsor and participant statements and notices               
- the plan prototype, summary descriptions and board resolutions    
- plan design and customized proposals                              
- trusteeship, record keeping and administration                    
- the services of State Street Bank, including, but not limited to, 
trustee services and tax reporting                              
- the services of Boston Financial Data Services, including, but not
       limited to, mutual fund processing support, and participant 800 numbers
and participant 401(k) statements                               
    - the services of Trust Consultants Inc., including, but not limited to,
  sales support, plan record keeping, document service support, plan
sponsor support, compliance testing and Form 5500 preparation.  

   --  Specific and general reference to the role of the investment dealer
          and the benefits and features of working with a financial professional
including:                                                  

- access to expertise on investments                                
   - assistance in interpreting past, present and future market trends and
economic events                                                 
- providing information to clients including participants during    
enrollment and on an ongoing basis after participation          
     - promoting and understanding the benefits of investing, including mutual
fund diversification and professional management.               

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NEW ENGLAND VARIABLE ANNUITY SEPARATE ACCOUNT                                   
INDEPENDENT AUDITORS' REPORT                                                  

To the Contract Owners of New England Variable Annuity Separate Account         
and the Board of Directors of New England Life Insurance Company:               

We have audited the accompanying statement of assets and liabilities of each of 
the sub-accounts (as disclosed in Note 1 to the financial statements) comprising
New England Variable Annuity Separate Account (the "Separate Account") of New   
England Life Insurance Company ("NELICO") as of December 31, 2002, and the      
related statement of operations for the year then ended, and the statement of   
changes in net assets for each of the periods in the two years then ended. These
financial statements are the responsibility of the Separate Account's           
management. Our responsibility is to express an opinion on these financial      
statements based on our audits.                                                 

We conducted our audits in accordance with auditing standards generally accepted
in the United States of America. Those standards require that we plan and       
perform the audit to obtain reasonable assurance about whether the 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. Our procedures included confirmation of securities owned as of      
December 31, 2002, by correspondence with the underlying fund managers and the  
depositor of the Separate Account. An audit also includes assessing the         
accounting principles used and significant estimates made by management, as well
as evaluating the overall financial statement presentation. We believe that our 
audits provide a reasonable basis for our opinion.                              

In our opinion, the financial statements referred to above present fairly, in   
all material respects, the financial position of each of the sub-accounts       
comprising New England Variable Annuity Separate Account of New England Life    
Insurance Company as of December 31, 2002, and the results of their operations  
for the year then ended, and the changes in their net assets for each of the    
periods in the two years then ended, in conformity with accounting principles   
generally accepted in the United States of America.                             

DELOITTE & TOUCHE LLP                                                           
Tampa, Florida                                                                  

April 10, 2003                                                                  

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NEW ENGLAND VARIABLE ANNUITY SEPARATE ACCOUNT                                   
STATEMENT OF ASSETS AND LIABILITIES                                           

AT DECEMBER 31, 2002                                                            

                                                        [Enlarge/Download Table]

                                                                                 ZENITH FUND                                    
                                             -----------------------------------------------------------------------------------
                                              STATE STREET           STATE STREET           STATE STREET           STATE STREET 
                                                RESEARCH               RESEARCH               RESEARCH               RESEARCH   
                                              BOND INCOME            BOND INCOME            MONEY MARKET           MONEY MARKET 
                                                CLASS A                CLASS B                CLASS A                CLASS B    
                                               PORTFOLIO              PORTFOLIO              PORTFOLIO              PORTFOLIO   
                                             --------------         --------------         --------------         --------------
                                                                                                                                
ASSETS:                                                                                                                         
INVESTMENTS AT VALUE:                                                                                                           
ZENITH FUND                                                                                                                     
State Street Research Bond Income Class A                                                                                       
 Portfolio                                                                                                                      
 (1,187,002 shares; cost $129,265,750)...... $  133,822,604         $           --         $          --          $           --
State Street Research Bond Income Class B                                                                                       
 Portfolio                                                                                                                      
 (426,309 shares; cost $46,191,642).........             --             47,678,357                    --                      --
State Street Research Money Market Class A                                                                                      
 Portfolio                                                                                                                      
 (1,001,108 shares; cost $100,110,768)......             --                     --           100,110,770                      --
State Street Research Money Market Class B                                                                                      
 Portfolio                                                                                                                      
 (571,834 shares; cost $57,183,363).........             --                     --                    --              57,183,411
Harris Oakmark Focused Value Class A                                                                                            
 Portfolio                                                                                                                      
 (628,874 shares; cost $100,909,023)........             --                     --                    --                      --
Harris Oakmark Focused Value Class E                                                                                            
 Portfolio                                                                                                                      
 (346,892 shares; cost $61,214,696).........             --                     --                    --                      --
FI Structured Equity Class A Portfolio                                                                                          
 (709,533 shares; cost $147,163,826)........             --                     --                    --                      --
FI Structured Equity Class E Portfolio                                                                                          
 (36,144 shares; cost $5,154,737)...........             --                     --                    --                      --
Loomis Sayles Small Cap Class A Portfolio                                                                                       
 (587,578 shares; cost $109,979,173)........             --                     --                    --                      --
Loomis Sayles Small Cap Class E Portfolio                                                                                       
 (65,986 shares; cost $10,405,426)..........             --                     --                    --                      --
Salomon Brothers U.S. Government Class A                                                                                        
 Portfolio                                                                                                                      
 (5,961,094 shares; cost $70,002,466).......             --                     --                    --                      --
Salomon Brothers U.S. Government Class E                                                                                        
 Portfolio                                                                                                                      
 (3,387,570 shares; cost $40,928,084).......             --                     --                    --                      --
Salomon Brothers Strategic Bond                                                                                                 
 Opportunities Class A Portfolio                                                                                                
 (5,883,066 shares; cost $68,473,475).......             --                     --                    --                      --
Salomon Brothers Strategic Bond                                                                                                 
 Opportunities Class E Portfolio                                                                                                
 (1,627,371 shares; cost $18,040,877).......             --                     --                    --                      --
Loomis Sayles Balanced Class A Portfolio                                                                                        
 (5,800,968 shares; cost $84,968,260).......             --                     --                    --                      --
Loomis Sayles Balanced Class E Portfolio                                                                                        
 (908,986 shares; cost $10,246,390).........             --                     --                    --                      --
Alger Equity Growth Class A Portfolio                                                                                           
 (11,122,387 shares; cost $303,511,418).....             --                     --                    --                      --
Alger Equity Growth Class E Portfolio                                                                                           
 (1,103,916 shares; cost $19,097,910).......             --                     --                    --                      --
Davis Venture Value Class A Portfolio                                                                                           
 (11,167,496 shares; cost $276,370,355).....             --                     --                    --                      --
Davis Venture Value Class E Portfolio                                                                                           
 (2,535,014 shares; cost $53,837,734).......             --                     --                    --                      --
MFS Investors Trust Class A Portfolio                                                                                           
 (1,427,366 shares; cost $13,956,068).......             --                     --                    --                      --
MFS Investors Trust Class E Portfolio                                                                                           
 (452,414 shares; cost $3,473,887)..........             --                     --                    --                      --
MFS Research Managers Class A Portfolio                                                                                         
 (2,353,274 shares; cost $24,879,098).......             --                     --                    --                      --
MFS Research Managers Class E Portfolio                                                                                         
 (247,028 shares; cost $1,936,541)..........             --                     --                    --                      --
FI Mid Cap Opportunities Portfolio                                                                                              
 (97,817 shares; cost $787,708).............             --                     --                    --                      --
                                             --------------         --------------         --------------         --------------
Total Investments...........................    133,822,604             47,678,357           100,110,770              57,183,411
Cash and Accounts Receivable................             --                 94,321             2,081,165                  68,343
                                             --------------         --------------         --------------         --------------
Total Assets................................    133,822,604             47,772,678           102,191,935              57,251,754
LIABILITIES:                                                                                                                    
Due to New England Life Insurance Company...        444,838                     --                    --                      --
                                             --------------         --------------         --------------         --------------
NET ASSETS.................................. $  133,377,766         $   47,772,678         $ 102,191,935          $   57,251,754
                                             ==============         ==============         ==============         ==============
Units Outstanding (In Thousands)............         30,238                 11,352                43,698                  26,043
Unit Value.................................. $3.66 to $4.44         $3.66 to $4.44         $1.94 to $2.35         $1.94 to $2.35

See Notes to Financial Statements 
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                                                       ZENITH FUND                                                        
--------------------------------------------------------------------------------------------------------------------------
                                            FI               FI             LOOMIS           LOOMIS                       
    HARRIS OAKMARK   HARRIS OAKMARK     STRUCTURED       STRUCTURED      SAYLES SMALL     SAYLES SMALL    SALOMON BROTHERS
    FOCUSED VALUE    FOCUSED VALUE        EQUITY           EQUITY            CAP              CAP         U.S. GOVERNMENT 
       CLASS A          CLASS E          CLASS A          CLASS E          CLASS A          CLASS E           CLASS A     
      PORTFOLIO        PORTFOLIO        PORTFOLIO        PORTFOLIO        PORTFOLIO        PORTFOLIO         PORTFOLIO    
    --------------   --------------   --------------   --------------   --------------   --------------   ----------------
                                                                                                                          
    $          --    $          --    $           --   $           --   $           --   $           --    $           -- 
               --               --                --               --               --               --                -- 
               --               --                --               --               --               --                -- 
               --               --                --               --               --               --                -- 
      106,487,200               --                --               --               --               --                -- 
               --       58,354,131                --               --               --               --                -- 
               --               --        88,620,624               --               --               --                -- 
               --               --                --        4,505,654               --               --                -- 
               --               --                --               --       81,614,525               --                -- 
               --               --                --               --               --        9,148,894                -- 
               --               --                --               --               --               --        73,559,901 
               --               --                --               --               --               --                -- 
               --               --                --               --               --               --                -- 
               --               --                --               --               --               --                -- 
               --               --                --               --               --               --                -- 
               --               --                --               --               --               --                -- 
               --               --                --               --               --               --                -- 
               --               --                --               --               --               --                -- 
               --               --                --               --               --               --                -- 
               --               --                --               --               --               --                -- 
               --               --                --               --               --               --                -- 
               --               --                --               --               --               --                -- 
               --               --                --               --               --               --                -- 
               --               --                --               --               --               --                -- 
               --               --                --               --               --               --                -- 
    --------------   --------------   --------------   --------------   --------------   --------------    -------------- 
      106,487,200       58,354,131        88,620,624        4,505,654       81,614,525        9,148,894        73,559,901 
               --           51,240                --            7,045               --           39,138                -- 
    --------------   --------------   --------------   --------------   --------------   --------------    -------------- 
      106,487,200       58,405,371        88,620,624        4,512,699       81,614,525        9,188,032        73,559,901 
          109,777               --            76,562               --           99,822               --           102,828 
    --------------   --------------   --------------   --------------   --------------   --------------    -------------- 
    $ 106,377,423    $  58,405,371    $   88,544,062   $    4,512,699   $   81,514,703   $    9,188,032    $   73,457,073 
    ==============   ==============   ==============   ==============   ==============   ==============    ============== 
           44,391           24,717            46,572            2,422           46,317            5,278            46,244 
    $2.20 to $2.42   $2.20 to $2.42   $1.75 to $1.92   $1.75 to $1.92   $1.63 to $1.77   $1.63 to $1.77    $1.48 to $1.60 


       ZENITH FUND                                                                                                        
---  ----------------                                                                                                     

     SALOMON BROTHERS                                                                                                     
     U.S. GOVERNMENT                                                                                                      
         CLASS E                                                                                                          
        PORTFOLIO                                                                                                         
     ----------------                                                                                                     
                                                                                                                          
      $           --                                                                                                      
                  --                                                                                                      
                  --                                                                                                      
                  --                                                                                                      
                  --                                                                                                      
                  --                                                                                                      
                  --                                                                                                      
                  --                                                                                                      
                  --                                                                                                      
                  --                                                                                                      
                  --                                                                                                      
                  --                                                                                                      
          41,734,865                                                                                                      
                  --                                                                                                      
                  --                                                                                                      
                  --                                                                                                      
                  --                                                                                                      
                  --                                                                                                      
                  --                                                                                                      
                  --                                                                                                      
                  --                                                                                                      
                  --                                                                                                      
                  --                                                                                                      
                  --                                                                                                      
                  --                                                                                                      
      --------------                                                                                                      
          41,734,865                                                                                                      
              56,611                                                                                                      
      --------------                                                                                                      
          41,791,476                                                                                                      
                  --                                                                                                      
      --------------                                                                                                      
      $   41,791,476                                                                                                      
      ==============                                                                                                      
              26,665                                                                                                      
      $1.48 to $1.60                                                                                                      

See Notes to Financial Statements 
 F-3

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NEW ENGLAND VARIABLE ANNUITY SEPARATE ACCOUNT                                   
STATEMENT OF ASSETS AND LIABILITIES -- (CONTINUED)                            

AT DECEMBER 31, 2002                                                            

                                                        [Enlarge/Download Table]

                                                                                ZENITH FUND                                      
                                          ---------------------------------------------------------------------------------------
                                          SALOMON BROTHERS         SALOMON BROTHERS             LOOMIS                 LOOMIS    
                                           STRATEGIC BOND           STRATEGIC BOND              SAYLES                 SAYLES    
                                           OPPORTUNITIES            OPPORTUNITIES              BALANCED               BALANCED   
                                              CLASS A                  CLASS E                 CLASS A                CLASS E    
                                             PORTFOLIO                PORTFOLIO               PORTFOLIO              PORTFOLIO   
                                          ----------------         ----------------         --------------         --------------
                                                                                                                                 
ASSETS:                                                                                                                          
INVESTMENTS AT VALUE:                                                                                                            
ZENITH FUND                                                                                                                      
State Street Research Bond Income Class                                                                                          
 A Portfolio                                                                                                                     
 (1,187,002 shares; cost                                                                                                         
 $129,265,750)..........................   $           --           $           --          $           --         $           --
State Street Research Bond Income Class                                                                                          
 B Portfolio                                                                                                                     
 (426,309 shares; cost $46,191,642).....               --                       --                      --                     --
State Street Research Money Market Class                                                                                         
 A Portfolio                                                                                                                     
 (1,001,108 shares; cost                                                                                                         
 $100,110,768)..........................               --                       --                      --                     --
State Street Research Money Market Class                                                                                         
 B Portfolio                                                                                                                     
 (571,834 shares; cost $57,183,363).....               --                       --                      --                     --
Harris Oakmark Focused Value Class A                                                                                             
 Portfolio                                                                                                                       
 (628,874 shares; cost $100,909,023)....               --                       --                      --                     --
Harris Oakmark Focused Value Class E                                                                                             
 Portfolio                                                                                                                       
 (346,892 shares; cost $61,214,696).....               --                       --                      --                     --
FI Structured Equity Class A Portfolio                                                                                           
 (709,533 shares; cost $147,163,826)....               --                       --                      --                     --
FI Structured Equity Class E Portfolio                                                                                           
 (36,144 shares; cost $5,154,737).......               --                       --                      --                     --
Loomis Sayles Small Cap Class A                                                                                                  
 Portfolio                                                                                                                       
 (587,578 shares; cost $109,979,173)....               --                       --                      --                     --
Loomis Sayles Small Cap Class E                                                                                                  
 Portfolio                                                                                                                       
 (65,986 shares; cost $10,405,426)......               --                       --                      --                     --
Salomon Brothers U.S. Government Class A                                                                                         
 Portfolio                                                                                                                       
 (5,961,094 shares; cost $70,002,466)...               --                       --                      --                     --
Salomon Brothers U.S. Government Class E                                                                                         
 Portfolio                                                                                                                       
 (3,387,570 shares; cost $40,928,084)...               --                       --                      --                     --
Salomon Brothers Strategic Bond                                                                                                  
 Opportunities Class A Portfolio                                                                                                 
 (5,883,066 shares; cost $68,473,475)...       67,302,274                       --                      --                     --
Salomon Brothers Strategic Bond                                                                                                  
 Opportunities Class E Portfolio                                                                                                 
 (1,627,371 shares; cost $18,040,877)...               --               18,584,587                      --                     --
Loomis Sayles Balanced Class A Portfolio                                                                                         
 (5,800,968 shares; cost $84,968,260)...               --                       --              61,026,186                     --
Loomis Sayles Balanced Class E Portfolio                                                                                         
 (908,986 shares; cost $10,246,390).....               --                       --                      --              9,535,268
Alger Equity Growth Class A Portfolio                                                                                            
 (11,122,387 shares; cost                                                                                                        
 $303,511,418)..........................               --                       --                      --                     --
Alger Equity Growth Class E Portfolio                                                                                            
 (1,103,916 shares; cost $19,097,910)...               --                       --                      --                     --
Davis Venture Value Class A Portfolio                                                                                            
 (11,167,496 shares; cost                                                                                                        
 $276,370,355)..........................               --                       --                      --                     --
Davis Venture Value Class E Portfolio                                                                                            
 (2,535,014 shares; cost $53,837,734)...               --                       --                      --                     --
MFS Investors Trust Class A Portfolio                                                                                            
 (1,427,366 shares; cost $13,956,068)...               --                       --                      --                     --
MFS Investors Trust Class E Portfolio                                                                                            
 (452,414 shares; cost $3,473,887)......               --                       --                      --                     --
MFS Research Managers Class A Portfolio                                                                                          
 (2,353,274 shares; cost $24,879,098)...               --                       --                      --                     --
MFS Research Managers Class E Portfolio                                                                                          
 (247,028 shares; cost $1,936,541)......               --                       --                      --                     --
FI Mid Cap Opportunities Portfolio                                                                                               
 (97,817 shares; cost $787,708).........               --                       --                      --                     --
                                           --------------           --------------          --------------         --------------
Total Investments.......................       67,302,274               18,584,587              61,026,186              9,535,268
Cash and Accounts Receivable............               --                   78,185                      --                  9,283
                                           --------------           --------------          --------------         --------------
Total Assets............................       67,302,274               18,662,772              61,026,186              9,544,551
LIABILITIES:                                                                                                                     
Due to New England Life Insurance                                                                                                
 Company................................           86,143                       --                  62,843                     --
                                           --------------           --------------          --------------         --------------
NET ASSETS..............................   $   67,216,131           $   18,662,772          $   60,963,343         $    9,544,551
                                           ==============           ==============          ==============         ==============
Units Outstanding (In Thousands)........           38,709                   10,844                  47,999                  7,622
Unit Value..............................   $1.62 to $1.75           $1.62 to $1.75          $1.18 to $1.28         $1.18 to $1.28

See Notes to Financial Statements 
 F-4

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                                                      ZENITH FUND                                                       
------------------------------------------------------------------------------------------------------------------------
                                          DAVIS            DAVIS             MFS              MFS              MFS      
     ALGER EQUITY     ALGER EQUITY       VENTURE          VENTURE         INVESTORS        INVESTORS         RESEARCH   
        GROWTH           GROWTH           VALUE            VALUE            TRUST            TRUST           MANAGERS   
       CLASS A          CLASS E          CLASS A          CLASS E          CLASS A          CLASS E          CLASS A    
      PORTFOLIO        PORTFOLIO        PORTFOLIO        PORTFOLIO        PORTFOLIO        PORTFOLIO        PORTFOLIO   
    --------------   --------------   --------------   --------------   --------------   --------------   --------------
                                                                                                                        
    $           --   $           --   $           --   $           --   $           --   $           --   $           --
                --               --               --               --               --               --               --
                --               --               --               --               --               --               --
                --               --               --               --               --               --               --
                --               --               --               --               --               --               --
                --               --               --               --               --               --               --
                --               --               --               --               --               --               --
                --               --               --               --               --               --               --
                --               --               --               --               --               --               --
                --               --               --               --               --               --               --
                --               --               --               --               --               --               --
                --               --               --               --               --               --               --
                --               --               --               --               --               --               --
                --               --               --               --               --               --               --
                --               --               --               --               --               --               --
                --               --               --               --               --               --               --
       154,156,289               --               --               --               --               --               --
                --       15,211,966               --               --               --               --               --
                --               --      216,537,745               --               --               --               --
                --               --               --       49,001,812               --               --               --
                --               --               --               --        9,720,363               --               --
                --               --               --               --               --        3,080,940               --
                --               --               --               --               --               --       16,119,923
                --               --               --               --               --               --               --
                --               --               --               --               --               --               --
    --------------   --------------   --------------   --------------   --------------   --------------   --------------
       154,156,289       15,211,966      216,537,745       49,001,812        9,720,363        3,080,940       16,119,923
                --           11,086               --          107,005          155,686           22,275               --
    --------------   --------------   --------------   --------------   --------------   --------------   --------------
       154,156,289       15,223,052      216,537,745       49,108,817        9,876,049        3,103,215       16,119,923
           258,741               --          335,640               --               --               --          171,740
    --------------   --------------   --------------   --------------   --------------   --------------   --------------
    $  153,897,548   $   15,223,052   $  216,202,105   $   49,108,817   $    9,876,049   $    3,103,215   $   15,948,183
    ==============   ==============   ==============   ==============   ==============   ==============   ==============
            84,559            8,451           97,980           22,521           15,089            4,717           24,240
    $1.70 to $1.83   $1.70 to $1.83   $2.06 to $2.22   $2.06 to $2.22   $0.64 to $0.66   $0.64 to $0.66   $0.64 to $0.66


              ZENITH FUND                                                                                               
---  ------------------------------                                                                                     
          MFS                                                                                                           
        RESEARCH           FI                                                                                           
        MANAGERS         MID CAP                                                                                        
        CLASS E       OPPORTUNITIES                                                                                     
       PORTFOLIO        PORTFOLIO                                                                                       
     --------------   -------------                                                                                     
                                                                                                                        
     $           --     $     --                                                                                        
                 --           --                                                                                        
                 --           --                                                                                        
                 --           --                                                                                        
                 --           --                                                                                        
                 --           --                                                                                        
                 --           --                                                                                        
                 --           --                                                                                        
                 --           --                                                                                        
                 --           --                                                                                        
                 --           --                                                                                        
                 --           --                                                                                        
                 --           --                                                                                        
                 --           --                                                                                        
                 --           --                                                                                        
                 --           --                                                                                        
                 --           --                                                                                        
                 --           --                                                                                        
                 --           --                                                                                        
                 --           --                                                                                        
                 --           --                                                                                        
                 --           --                                                                                        
                 --           --                                                                                        
          1,684,728           --                                                                                        
                 --      800,141                                                                                        
     --------------     --------                                                                                        
          1,684,728      800,141                                                                                        
                 --           --                                                                                        
     --------------     --------                                                                                        
          1,684,728      800,141                                                                                        
                597        1,199                                                                                        
     --------------     --------                                                                                        
     $    1,684,131     $798,942                                                                                        
     ==============     ========                                                                                        
              2,572          987                                                                                        
     $0.64 to $0.66     $   0.81                                                                                        

See Notes to Financial Statements 
 F-5

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NEW ENGLAND VARIABLE ANNUITY SEPARATE ACCOUNT                                   
STATEMENT OF ASSETS AND LIABILITIES                                           

AT DECEMBER 31, 2002                                                            

                                                        [Enlarge/Download Table]

                                                                               METROPOLITAN FUND                                 
                                               ----------------------------------------------------------------------------------
                                                                                     PUTNAM           PUTNAM        STATE STREET 
                                                PUTNAM LARGE     PUTNAM LARGE    INTERNATIONAL    INTERNATIONAL       RESEARCH   
                                                 CAP GROWTH       CAP GROWTH         STOCK            STOCK            AURORA    
                                                  CLASS A          CLASS E          CLASS A          CLASS E          CLASS A    
                                                 PORTFOLIO        PORTFOLIO        PORTFOLIO        PORTFOLIO        PORTFOLIO   
                                               --------------   --------------   --------------   --------------   --------------
                                                                                                                                 
ASSETS:                                                                                                                          
INVESTMENTS AT VALUE:                                                                                                            
METROPOLITAN FUND                                                                                                                
Putnam Large Cap Growth Class A Portfolio                                                                                        
 (2,123,739 shares; cost $14,263,816)........  $   7,624,221    $          --    $           --   $           --   $           --
Putnam Large Cap Growth Class E Portfolio                                                                                        
 (847,811 shares; cost $3,582,927)...........             --        3,035,161                --               --               --
Putnam International Stock Class A Portfolio                                                                                     
 (5,937,957 shares; cost $57,888,145)........             --               --        46,078,542               --               --
Putnam International Stock Class E Portfolio                                                                                     
 (1,815,199 shares; cost $14,814,922)........             --               --                --       13,995,185               --
State Street Research Aurora Class A                                                                                             
 Portfolio (2,705,639 shares; cost                                                                                               
 $37,807,100)................................             --               --                --               --       29,951,421
State Street Research Aurora Class E                                                                                             
 Portfolio (3,409,991 shares; cost                                                                                               
 $44,033,090)................................             --               --                --               --               --
Janus Mid Cap Portfolio (760,063 shares; cost                                                                                    
 $10,876,033)................................             --               --                --               --               --
Russell 2000 Index Class B Portfolio                                                                                             
 (1,398,646 shares; cost $13,094,069)........             --               --                --               --               --
MetLife Stock Index Class B Portfolio                                                                                            
 (1,307,089 shares; cost $35,680,373)........             --               --                --               --               --
Franklin Templeton Small Cap Growth Class B                                                                                      
 Portfolio (1,346,767 shares; cost                                                                                               
 $10,299,931)................................             --               --                --               --               --
Neuberger Berman Partners Mid Cap Value Class                                                                                    
 B Portfolio (663,852 shares; cost                                                                                               
 $8,887,665).................................             --               --                --               --               --
Harris Oakmark Large Cap Value Class E                                                                                           
 Portfolio (724,164 shares; cost                                                                                                 
 $7,044,206).................................             --               --                --               --               --
State Street Research Large Cap Value Class E                                                                                    
 Portfolio (215,483 shares; cost                                                                                                 
 $1,744,206).................................             --               --                --               --               --
Lehman Brothers Aggregate Bond Index Class B                                                                                     
 Portfolio (3,525,661 shares; cost                                                                                               
 $37,009,290)................................             --               --                --               --               --
Morgan Stanley EAFE Index Class B Portfolio                                                                                      
 (1,202,683 shares; cost $9,420,605).........             --               --                --               --               --
MetLife Mid Cap Stock Index Class B Portfolio                                                                                    
 (1,216,835 shares; cost $11,985,690)........             --               --                --               --               --
Janus Growth Class B Portfolio (966,269                                                                                          
 shares; cost $6,364,220)....................             --               --                --               --               --
State Street Research Investment Trust Class                                                                                     
 B Portfolio (332,560 shares; cost                                                                                               
 $7,454,177).................................             --               --                --               --               --
MET INVESTORS FUND                                                                                                               
MFS Research International Class B Portfolio                                                                                     
 (988,356 shares; cost $7,909,492)...........             --               --                --               --               --
MFS Mid Cap Growth Class B Portfolio                                                                                             
 (1,278,690 shares; cost $7,706,760).........             --               --                --               --               --
PIMCO Total Return Class B Portfolio                                                                                             
 (8,651,550 shares; cost $93,110,838)........             --               --                --               --               --
PIMCO Innovation Class B Portfolio (922,773                                                                                      
 shares; cost $3,704,877)....................             --               --                --               --               --
Lord Abbett Bond Debenture Class B Portfolio                                                                                     
 (1,458,285 shares; cost $15,157,616)........             --               --                --               --               --
Met/AIM Mid Cap Core Equity Class B Portfolio                                                                                    
 (201,432 shares; cost $2,012,658)...........             --               --                --               --               --
Met/AIM Small Cap Growth Class B Portfolio                                                                                       
 (221,538 shares; cost $2,014,133)...........             --               --                --               --               --
State Street Research Concentrated                                                                                               
 International Class E Portfolio (82,603                                                                                         
 shares; cost $734,249)......................                              --                --               --               --
AMERICAN FUND                                                                                                                    
American Funds Growth Class B Portfolio                                                                                          
 (2,164,605 shares; cost $82,645,612)........             --                                 --               --               --
American Funds Growth-Income Class B                                                                                             
 Portfolio (2,751,142 shares; cost                                                                                               
 $79,488,734)................................             --               --                                 --               --
American Funds Global Small Cap Class B                                                                                          
 Portfolio (1,299,262 shares; cost                                                                                               
 $13,717,056)................................             --               --                --                                --
                                               --------------   --------------   --------------   --------------   --------------
Total Investments............................      7,624,221        3,035,161        46,078,542       13,995,185       29,951,421
Cash and Accounts Receivable.................             --               --                --           38,557               --
                                               --------------   --------------   --------------   --------------   --------------
Total Assets.................................      7,624,221        3,035,161        46,078,542       14,033,742       29,951,421
LIABILITIES:                                                                                                                     
Due to New England Life Insurance Company....          8,480              176            62,028               --          100,107
                                               --------------   --------------   --------------   --------------   --------------
NET ASSETS...................................  $   7,615,741    $   3,034,985    $   46,016,514   $   14,033,742   $   29,851,314
                                               ==============   ==============   ==============   ==============   ==============
Units Outstanding (In Thousands).............         22,021            8,801            48,490           14,991           27,477
Unit Value...................................  $0.34 to $0.35   $0.34 to $0.35   $0.86 to $0.96   $0.86 to $0.96   $1.06 to $1.09

See Notes to Financial Statements 
 F-6

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                                                        METROPOLITAN FUND                                                         
----------------------------------------------------------------------------------------------------------------------------------
     STATE STREET                                                                                                                 
       RESEARCH                                                                                  NEUBERGER                        
        AURORA                         RUSSELL 2000    METLIFE STOCK    FRANKLIN TEMPLETON    BERMAN PARTNERS     HARRIS OAKMARK  
       CLASS E         JANUS MID      INDEX CLASS B    INDEX CLASS B     SMALL CAP GROWTH      MID CAP VALUE      LARGE CAP VALUE 
      PORTFOLIO      CAP PORTFOLIO      PORTFOLIO        PORTFOLIO      CLASS B PORTFOLIO    CLASS B PORTFOLIO   CLASS E PORTFOLIO
     ------------    --------------   --------------   --------------   ------------------   -----------------   -----------------
                                                                                                                                  
    $           --   $           --   $           --   $           --     $           --       $           --      $           -- 
                --               --               --               --                 --                   --                  -- 
                --               --               --               --                 --                   --                  -- 
                --               --               --               --                 --                   --                  -- 
                --               --               --               --                 --                   --                  -- 
        37,646,300               --               --               --                 --                   --                  -- 
                --        7,805,850               --               --                 --                   --                  -- 
                --               --       11,412,954               --                 --                   --                  -- 
                --               --               --       29,958,478                 --                   --                  -- 
                --               --               --               --          8,605,843                   --                  -- 
                --               --               --               --                 --            8,424,285                  -- 
                --               --               --               --                 --                   --           6,944,730 
                --               --               --               --                 --                   --                     
                --               --               --               --                 --                   --                  -- 
                --               --               --               --                 --                   --                  -- 
                --               --               --               --                 --                   --                  -- 
                --               --               --               --                 --                   --                  -- 
                --               --               --               --                 --                   --                  -- 
                --               --               --               --                 --                   --                  -- 
                --               --               --               --                 --                   --                  -- 
                --               --               --               --                 --                   --                  -- 
                --               --               --               --                 --                   --                  -- 
                --               --               --               --                 --                   --                  -- 
                --               --               --               --                 --                   --                  -- 
                --               --               --               --                 --                   --                  -- 
                --               --               --               --                 --                   --                  -- 
                --               --               --               --                 --                   --                  -- 
                --               --               --               --                 --                   --                  -- 
                --               --               --               --                 --                   --                  -- 
    --------------   --------------   --------------   --------------     --------------       --------------      -------------- 
        37,646,300        7,805,850       11,412,954       29,958,478          8,605,843            8,424,285           6,944,730 
            41,553               --               --               --              8,720                   --                  -- 
    --------------   --------------   --------------   --------------     --------------       --------------      -------------- 
        37,687,853        7,805,850       11,412,954       29,958,478          8,614,563            8,424,285           6,944,730 
                --              209            7,228          191,064                 --                5,316               3,239 
    --------------   --------------   --------------   --------------     --------------       --------------      -------------- 
    $   37,687,853   $    7,805,641   $   11,405,726   $   29,767,414     $    8,614,563       $    8,418,969      $    6,941,491 
    ==============   ==============   ==============   ==============     ==============       ==============      ============== 
            34,793            7,213           12,285           11,103             13,799                6,309               7,146 
    $1.06 to $1.09   $1.04 to $1.10   $0.93 to $0.94   $2.45 to $2.77     $0.62 to $0.63       $1.30 to $1.35      $0.94 to $0.98 


              METROPOLITAN FUND                                                                                                   
---  -----------------------------------                                                                                          

       STATE STREET      LEHMAN BROTHERS                                                                                          
      RESEARCH LARGE     AGGREGATE BOND                                                                                           
         CAP VALUE        INDEX CLASS B                                                                                           
     CLASS E PORTFOLIO      PORTFOLIO                                                                                             
     -----------------   ---------------                                                                                          
                                                                                                                                  
         $       --      $           --                                                                                           
                 --                  --                                                                                           
                 --                  --                                                                                           
                 --                  --                                                                                           
                 --                  --                                                                                           
                 --                  --                                                                                           
                 --                  --                                                                                           
                 --                  --                                                                                           
                 --                  --                                                                                           
                 --                  --                                                                                           
                 --                  --                                                                                           
                 --                  --                                                                                           
          1,713,088                  --                                                                                           
                 --          38,923,299                                                                                           
                 --                  --                                                                                           
                 --                  --                                                                                           
                 --                  --                                                                                           
                 --                  --                                                                                           
                 --                  --                                                                                           
                 --                  --                                                                                           
                 --                  --                                                                                           
                 --                  --                                                                                           
                 --                  --                                                                                           
                 --                  --                                                                                           
                 --                  --                                                                                           
                 --                  --                                                                                           
                 --                  --                                                                                           
                 --                  --                                                                                           
                 --                  --                                                                                           
         ----------      --------------                                                                                           
          1,713,088          38,923,299                                                                                           
                 --                  --                                                                                           
         ----------      --------------                                                                                           
          1,713,088          38,923,299                                                                                           
              1,427              31,570                                                                                           
         ----------      --------------                                                                                           
         $1,711,661      $   38,891,729                                                                                           
         ==========      ==============                                                                                           
              2,161              31,759                                                                                           
         $     0.79      $1.19 to $1.24                                                                                           

See Notes to Financial Statements 
 F-7

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NEW ENGLAND VARIABLE ANNUITY SEPARATE ACCOUNT                                   
STATEMENT OF ASSETS AND LIABILITIES -- (CONTINUED)                            

AT DECEMBER 31, 2002                                                            

                                                        [Enlarge/Download Table]

                                                                                                                       MET      
                                                                     METROPOLITAN FUND                            INVESTORS FUND
                                            --------------------------------------------------------------------  --------------
                                                                                                                       MFS      
                                                MORGAN        METLIFE MID         JANUS          STATE STREET        RESEARCH   
                                             STANLEY EAFE      CAP STOCK          GROWTH           RESEARCH       INTERNATIONAL 
                                            INDEX CLASS B    INDEX CLASS B       CLASS B       INVESTMENT TRUST      CLASS B    
                                              PORTFOLIO        PORTFOLIO        PORTFOLIO      CLASS B PORTFOLIO    PORTFOLIO   
                                            --------------   --------------   --------------   -----------------  --------------
                                                                                                                                
ASSETS:                                                                                                                         
INVESTMENTS AT VALUE:                                                                                                           
METROPOLITAN FUND                                                                                                               
Putnam Large Cap Growth Class A Portfolio                                                                                       
 (2,123,739 shares; cost $14,263,816).....  $           --   $          --    $           --    $           --    $           --
Putnam Large Cap Growth Class E Portfolio                                                                                       
 (847,811 shares; cost $3,582,927)........              --              --                --                --                --
Putnam International Stock Class A                                                                                              
 Portfolio (5,937,957 shares; cost                                                                                              
 $57,888,145).............................              --              --                --                --                --
Putnam International Stock Class E                                                                                              
 Portfolio (1,815,199 shares; cost                                                                                              
 $14,814,922).............................              --              --                --                --                --
State Street Research Aurora Class A                                                                                            
 Portfolio (2,705,639 shares; cost                                                                                              
 $37,807,100).............................              --              --                --                --                --
State Street Research Aurora Class E                                                                                            
 Portfolio (3,409,991 shares; cost                                                                                              
 $44,033,090).............................              --              --                --                --                --
Janus Mid Cap Portfolio (760,063 shares;                                                                                        
 cost $10,876,033)........................              --              --                --                --                --
Russell 2000 Index Class B Portfolio                                                                                            
 (1,398,646 shares; cost $13,094,069).....              --              --                --                --                --
MetLife Stock Index Class B Portfolio                                                                                           
 (1,307,089 shares; cost $35,680,373).....              --              --                --                --                --
Franklin Templeton Small Cap Growth Class                                                                                       
 B Portfolio (1,346,767 shares; cost                                                                                            
 $10,299,931).............................              --              --                --                --                --
Neuberger Berman Partners Mid Cap Value                                                                                         
 Class B Portfolio (663,852 shares; cost                                                                                        
 $8,887,665)..............................              --              --                --                --                --
Harris Oakmark Large Cap Value Class E                                                                                          
 Portfolio (724,164 shares; cost                                                                                                
 $7,044,206)..............................              --              --                --                --                --
State Street Research Large Cap Value                                                                                           
 Class E Portfolio (215,483 shares; cost                                                                                        
 $1,744,206)..............................              --              --                --                --                --
Lehman Brothers Aggregate Bond Index Class                                                                                      
 B Portfolio (3,525,661 shares; cost                                                                                            
 $37,009,290).............................              --              --                --                --                --
Morgan Stanley EAFE Index Class B                                                                                               
 Portfolio (1,202,683 shares; cost                                                                                              
 $9,420,605)..............................       8,635,261              --                --                --                --
MetLife Mid Cap Stock Index Class B                                                                                             
 Portfolio (1,216,835 shares; cost                                                                                              
 $11,985,690).............................              --      10,744,657                --                --                --
Janus Growth Class B Portfolio (966,269                                                                                         
 shares; cost $6,364,220).................              --              --         5,227,515                --                --
State Street Research Investment Trust                                                                                          
 Class B Portfolio (332,560 shares; cost                                                                                        
 $7,454,177)..............................              --              --                --         6,295,361                --
MET INVESTORS FUND                                                                                                              
MFS Research International Class B                                                                                              
 Portfolio (988,356 shares; cost                                                                                                
 $7,909,492)..............................              --              --                --                --         7,383,018
MFS Mid Cap Growth Class B Portfolio                                                                                            
 (1,278,690 shares; cost $7,706,760)......              --              --                --                --                --
PIMCO Total Return Class B Portfolio                                                                                            
 (8,651,550 shares; cost $93,110,838).....              --              --                --                --                --
PIMCO Innovation Class B Portfolio                                                                                              
 (922,773 shares; cost $3,704,877)........              --              --                --                --                --
Lord Abbett Bond Debenture Class B                                                                                              
 Portfolio (1,458,285 shares; cost                                                                                              
 $15,157,616).............................              --              --                --                --                --
Met/AIM Mid Cap Core Equity Class B                                                                                             
 Portfolio (201,432 shares; cost                                                                                                
 $2,012,658)..............................              --              --                --                --                --
Met/AIM Small Cap Growth Class B Portfolio                                                                                      
 (221,538 shares; cost $2,014,133)........              --              --                --                --                --
State Street Research Concentrated                                                                                              
 International Class E Portfolio (82,603                                                                                        
 shares; cost $734,249)...................              --              --                --                --                --
AMERICAN FUND                                                                                                                   
American Funds Growth Class B Portfolio                                                                                         
 (2,164,605 shares; cost $82,645,612).....              --              --                --                --                --
American Funds Growth-Income Class B                                                                                            
 Portfolio (2,751,142 shares; cost                                                                                              
 $79,488,734).............................              --              --                --                --                --
American Funds Global Small Cap Class B                                                                                         
 Portfolio (1,299,262 shares; cost                                                                                              
 $13,717,056).............................              --              --                --                --                --
                                            --------------   --------------   --------------    --------------    --------------
Total Investments.........................       8,635,261      10,744,657         5,227,515         6,295,361         7,383,018
Cash and Accounts Receivable..............              --              --                --                --                --
                                            --------------   --------------   --------------    --------------    --------------
Total Assets..............................       8,635,261      10,744,657         5,227,515         6,295,361         7,383,018
LIABILITIES:                                                                                                                    
Due to New England Life Insurance                                                                                               
 Company..................................           3,842          74,775             1,798             8,798            34,641
                                            --------------   --------------   --------------    --------------    --------------
NET ASSETS................................  $    8,631,419   $  10,669,882    $    5,225,717    $    6,286,563    $    7,348,377
                                            ==============   ==============   ==============    ==============    ==============
Units Outstanding (In Thousands)..........          12,329          12,371             9,888             1,335             9,959
Unit Value................................  $0.68 to $0.71   $0.85 to $0.87   $0.52 to $0.53    $4.10 to $4.94    $0.73 to $0.74

See Notes to Financial Statements 
 F-8

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                                                       MET INVESTORS FUND                                                        
---------------------------------------------------------------------------------------------------------------------------------
          MFS                                            LORD ABBETT                          MET/AIM                            
        MID CAP        PIMCO TOTAL         PIMCO             BOND          MET/AIM MID       SMALL CAP      STATE STREET RESEARCH
         GROWTH           RETURN         INNOVATION       DEBENTURE      CAP CORE EQUITY       GROWTH           CONCENTRATED     
        CLASS B          CLASS B          CLASS B          CLASS B           CLASS B          CLASS B       INTERNATIONAL CLASS E
       PORTFOLIO        PORTFOLIO        PORTFOLIO        PORTFOLIO         PORTFOLIO        PORTFOLIO            PORTFOLIO      
       ---------      --------------   --------------   --------------   ---------------   --------------   ---------------------
                                                                                                                                 
     $           --   $           --   $           --   $           --   $           --    $           --      $           --    
                 --               --               --               --               --                --                  --    
                 --               --               --               --               --                --                  --    
                 --               --               --               --               --                --                  --    
                 --               --               --               --               --                --                  --    
                 --               --               --               --               --                --                  --    
                 --               --               --               --               --                --                  --    
                 --               --               --               --               --                --                  --    
                 --               --               --               --               --                --                  --    
                 --               --               --               --               --                --                  --    
                 --               --               --               --               --                --                  --    
                 --               --               --               --               --                --                  --    
                 --               --               --               --               --                --                  --    
                 --               --               --               --               --                --                  --    
                 --               --               --               --               --                --                  --    
                 --               --               --               --               --                --                  --    
                 --               --               --               --               --                --                  --    
                 --               --               --               --               --                --                  --    
                 --               --               --               --               --                --                  --    
          5,933,123               --               --               --               --                --                  --    
                 --       97,675,998               --               --               --                --                  --    
                 --               --        2,805,228               --               --                --                  --    
                 --               --               --       14,889,086               --                --                  --    
                 --               --               --               --        1,978,063                --                  --    
                 --               --               --               --               --         1,909,659                  --    
                 --               --               --               --               --                --             732,684    
                 --               --               --               --               --                --                  --    
                 --               --               --               --               --                --                  --    
                 --               --               --               --               --                --                  --    
     --------------   --------------   --------------   --------------   --------------    --------------      --------------    
          5,933,123       97,675,998        2,805,228       14,889,086        1,978,063         1,909,659             732,684    
             46,204               --               --               --               --                --                  --    
     --------------   --------------   --------------   --------------   --------------    --------------      --------------    
     5,979,327.....       97,675,998        2,805,228       14,889,086        1,978,063         1,909,659             732,684    
     --............          545,259            1,231          189,498            1,572             1,591               1,128    
     --------------   --------------   --------------   --------------   --------------    --------------      --------------    
     $5,979,327.....  $   97,130,739   $    2,803,997   $   14,699,588   $    1,976,491    $    1,908,068      $      731,556    
     ==============   ==============   ==============   ==============   ==============    ==============      ==============    
     13,146........           85,503            9,468           10,930            2,044             2,251                 828    
     $      0.45 to   $1.12 to $1.14   $0.29 to $0.30   $1.28 to $1.37   $0.96 to $0.97    $0.84 to $0.85      $0.88 to $0.89    
     $0.46.........                                                                                                              


                      AMERICAN FUND                                                                                              
---  ------------------------------------------------                                                                            
                                          AMERICAN                                                                               
        AMERICAN         AMERICAN       FUNDS GLOBAL                                                                             
      FUNDS GROWTH    FUNDS GROWTH-      SMALL CAP                                                                               
        CLASS B       INCOME CLASS B      CLASS B                                                                                
       PORTFOLIO        PORTFOLIO        PORTFOLIO                                                                               
     --------------   --------------   --------------                                                                            
                                                                                                                                 
     $          --    $          --    $           --                                                                            
                --               --                --                                                                            
                --               --                --                                                                            
                --               --                --                                                                            
                --               --                --                                                                            
                --               --                --                                                                            
                --               --                --                                                                            
                --               --                --                                                                            
                --               --                --                                                                            
                --               --                --                                                                            
                --               --                --                                                                            
                --               --                --                                                                            
                --               --                --                                                                            
                --               --                --                                                                            
                --               --                --                                                                            
                --               --                --                                                                            
                --               --                --                                                                            
                --               --                --                                                                            
                --               --                --                                                                            
                --               --                --                                                                            
                --               --                --                                                                            
                --               --                --                                                                            
                --               --                --                                                                            
                --               --                --                                                                            
                --               --                --                                                                            
                --               --                --                                                                            
        72,059,712               --                --                                                                            
                --       72,209,138                --                                                                            
                --               --        11,992,183                                                                            
     --------------   --------------   --------------                                                                            
        72,059,712       70,209,138        11,992,183                                                                            
                --               --            50,312                                                                            
     --------------   --------------   --------------                                                                            
        72,059,712       70,209,138        12,042,495                                                                            
            28,412            3,455                --                                                                            
     --------------   --------------   --------------                                                                            
     $  72,031,300    $  70,205,683    $   12,042,495                                                                            
     ==============   ==============   ==============                                                                            
             8,788           10,667            11,246                                                                            
     $7.28 to $8.39   $5.75 to $6.88   $1.03 to $1.08                                                                            

See Notes to Financial Statements 
 F-9

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NEW ENGLAND VARIABLE ANNUITY SEPARATE ACCOUNT                                   
STATEMENT OF OPERATIONS -- FOR THE YEAR ENDED DECEMBER 31, 2002               

                                                        [Enlarge/Download Table]

                                                                           ZENITH FUND                                        
                                    ------------------------------------------------------------------------------------------
                                    STATE STREET       STATE STREET       STATE STREET       STATE STREET                     
                                      RESEARCH           RESEARCH           RESEARCH           RESEARCH         HARRIS OAKMARK
                                    BOND INCOME        BOND INCOME        MONEY MARKET       MONEY MARKET       FOCUSED VALUE 
                                      CLASS A            CLASS B            CLASS A            CLASS B             CLASS A    
                                     PORTFOLIO          PORTFOLIO          PORTFOLIO          PORTFOLIO           PORTFOLIO   
                                    ------------       ------------       ------------       ------------       --------------
                                                                                                                              
INVESTMENT INCOME (LOSS):                                                                                                     
Income:                                                                                                                       
 Dividends.........................  $6,363,092         $  877,719         $1,441,095         $ 408,786          $    248,254 
                                     ----------         ----------         ----------         ---------          ------------ 
Expenses:                                                                                                                     
 Mortality and expense charges.....   1,763,204            372,726          1,396,326           483,406             1,541,809 
 Administrative charges............     188,707             39,891            165,877            57,426               175,852 
                                     ----------         ----------         ----------         ---------          ------------ 
 Total Expenses....................   1,951,911            412,617          1,562,203           540,832             1,717,661 
                                     ----------         ----------         ----------         ---------          ------------ 
Net investment income (loss).......   4,411,181            465,102           (121,108)         (132,046)           (1,469,407)
                                     ----------         ----------         ----------         ---------          ------------ 
NET REALIZED AND UNREALIZED GAINS                                                                                             
 (LOSSES) ON INVESTMENTS:                                                                                                     
Net realized (losses) gains from                                                                                              
 security transactions.............    (415,163)            29,396                 --                --               374,944 
Change in unrealized appreciation                                                                                             
 (depreciation) of investments for                                                                                            
 the period........................   4,700,872          1,488,133                 --                --           (13,207,718)
                                     ----------         ----------         ----------         ---------          ------------ 
Net realized and unrealized gains                                                                                             
 (losses) on investments...........   4,285,709          1,517,529                 --                --           (12,832,774)
                                     ----------         ----------         ----------         ---------          ------------ 
NET INCREASE (DECREASE) IN NET                                                                                                
 ASSETS RESULTING FROM                                                                                                        
 OPERATIONS........................  $8,696,890         $1,982,631         $ (121,108)        $(132,046)         $(14,302,181)
                                     ==========         ==========         ==========         =========          ============ 

(a) For the period May 1, 2002 through December 31, 2002                        

See Notes to Financial Statements 
  F-10

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                                                    ZENITH FUND                                                     
--------------------------------------------------------------------------------------------------------------------
                          FI            FI                                           SALOMON            SALOMON     
    HARRIS OAKMARK    STRUCTURED    STRUCTURED   LOOMIS SAYLES   LOOMIS SAYLES       BROTHERS           BROTHERS    
    FOCUSED VALUE       EQUITY        EQUITY       SMALL CAP       SMALL CAP     U.S. GOVERNMENT    U.S. GOVERNMENT 
       CLASS E         CLASS A       CLASS E        CLASS A         CLASS E          CLASS A            CLASS E     
      PORTFOLIO       PORTFOLIO     PORTFOLIO      PORTFOLIO       PORTFOLIO        PORTFOLIO          PORTFOLIO    
    --------------   ------------   ----------   -------------   -------------   ----------------   ----------------
                                                                                                                    
     $    46,260     $  1,078,511   $  26,323    $    122,719     $     2,306       $2,906,068         $  836,384   
     -----------     ------------   ---------    ------------     -----------       ----------         ----------   
         470,125        1,572,933      40,457       1,535,617          80,963          852,160            311,259   
          53,620          142,171       3,657         151,264           7,975           99,902             36,490   
     -----------     ------------   ---------    ------------     -----------       ----------         ----------   
         523,745        1,715,104      44,114       1,686,881          88,938          952,062            347,749   
     -----------     ------------   ---------    ------------     -----------       ----------         ----------   
        (477,485)        (636,593)    (17,791)     (1,564,162)        (86,632)       1,954,006            488,635   
     -----------     ------------   ---------    ------------     -----------       ----------         ----------   
         (60,035)     (11,788,934)    (50,830)      1,548,576         (33,444)         542,092             29,230   
      (3,418,590)     (15,395,232)   (675,152)    (28,086,173)     (1,370,002)       1,560,430            820,507   
     -----------     ------------   ---------    ------------     -----------       ----------         ----------   
      (3,478,625)     (27,184,166)   (725,982)    (26,537,597)     (1,403,446)       2,102,522            849,737   
     -----------     ------------   ---------    ------------     -----------       ----------         ----------   
     $(3,956,110)    $(27,820,759)  $(743,773)   $(28,101,759)    $(1,490,078)      $4,056,528         $1,338,372   
     ===========     ============   =========    ============     ===========       ==========         ==========   

See Notes to Financial Statements 
  F-11

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NEW ENGLAND VARIABLE ANNUITY SEPARATE ACCOUNT                                   
STATEMENT OF OPERATIONS -- FOR THE YEAR ENDED DECEMBER 31, 2002               

                                                        [Enlarge/Download Table]

                                                                         ZENITH FUND                                    
                                      --------------------------------------------------------------------------------- 
                                      SALOMON BROTHERS    SALOMON BROTHERS       LOOMIS        LOOMIS                   
                                       STRATEGIC BOND      STRATEGIC BOND        SAYLES        SAYLES      ALGER EQUITY 
                                       OPPORTUNITIES       OPPORTUNITIES        BALANCED      BALANCED        GROWTH    
                                          CLASS A             CLASS E           CLASS A        CLASS E       CLASS A    
                                         PORTFOLIO           PORTFOLIO         PORTFOLIO      PORTFOLIO     PORTFOLIO   
                                      ----------------    ----------------    ------------    ---------    ------------ 
                                                                                                                        
INVESTMENT INCOME (LOSS):                                                                                               
Income:                                                                                                                 
 Dividends.........................      $4,851,906           $582,886        $  1,873,548    $  90,971    $         -- 
                                         ----------           --------        ------------    ---------    ------------ 
Expenses:                                                                                                               
 Mortality and expense charges.....         848,665            130,715           1,004,676       74,573       2,963,184 
 Administrative charges............          78,767             12,132              95,816        7,112         274,304 
                                         ----------           --------        ------------    ---------    ------------ 
 Total Expenses....................         927,432            142,847           1,100,492       81,685       3,237,488 
                                         ----------           --------        ------------    ---------    ------------ 
Net investment income (loss).......       3,924,474            440,039             773,056        9,286      (3,237,488)
                                         ----------           --------        ------------    ---------    ------------ 
NET REALIZED AND UNREALIZED GAINS                                                                                       
 (LOSSES) ON INVESTMENTS:                                                                                               
Net realized (losses) gains from                                                                                        
 security transactions.............        (980,841)            (4,193)         (4,641,729)     (76,124)        598,023 
Change in unrealized appreciation                                                                                       
 (depreciation) of investments for                                                                                      
 the period........................       2,295,046            528,458          (8,848,989)    (728,463)    (91,894,712)
                                         ----------           --------        ------------    ---------    ------------ 
Net realized and unrealized gains                                                                                       
 (losses) on investments...........       1,314,205            524,265         (13,490,718)    (804,587)    (91,296,689)
                                         ----------           --------        ------------    ---------    ------------ 
NET INCREASE (DECREASE) IN NET                                                                                          
 ASSETS RESULTING FROM                                                                                                  
 OPERATIONS........................      $5,238,679           $964,304        $(12,717,662)   $(795,301)   $(94,534,177)
                                         ==========           ========        ============    =========    ============ 


                                                    ZENITH FUND                                                         
                                    -------------------------------------------                                         
                                                       DAVIS           DAVIS                                            
                                    ALGER EQUITY      VENTURE         VENTURE                                           
                                       GROWTH          VALUE           VALUE                                            
                                      CLASS E         CLASS A         CLASS E                                           
                                     PORTFOLIO       PORTFOLIO       PORTFOLIO                                          
                                    ------------    ------------    -----------                                         
                                                                                                                        
INVESTMENT INCOME (LOSS):                                                                                               
Income:                                                                                                                 
 Dividends......................... $        --     $  2,391,945    $   215,499                                         
                                    -----------     ------------    -----------                                         
Expenses:                                                                                                               
 Mortality and expense charges.....     132,491        3,630,788        413,480                                         
 Administrative charges............      12,265          358,807         40,861                                         
                                    -----------     ------------    -----------                                         
 Total Expenses....................     144,756        3,989,595        454,341                                         
                                    -----------     ------------    -----------                                         
Net investment income (loss).......    (144,756)      (1,597,650)      (238,842)                                        
                                    -----------     ------------    -----------                                         
NET REALIZED AND UNREALIZED GAINS                                                                                       
 (LOSSES) ON INVESTMENTS:                                                                                               
Net realized (losses) gains from                                                                                        
 security transactions.............    (339,941)      13,714,824       (120,658)                                        
Change in unrealized appreciation                                                                                       
 (depreciation) of investments for                                                                                      
 the period........................  (4,010,127)     (65,766,427)    (5,209,029)                                        
                                    -----------     ------------    -----------                                         
Net realized and unrealized gains                                                                                       
 (losses) on investments...........  (4,350,068)     (52,051,603)    (5,329,687)                                        
                                    -----------     ------------    -----------                                         
NET INCREASE (DECREASE) IN NET                                                                                          
 ASSETS RESULTING FROM                                                                                                  
 OPERATIONS........................ $(4,494,824)    $(53,649,253)   $(5,568,529)                                        
                                    ===========     ============    ===========                                         

(a) For the period May 1, 2002 through December 31, 2002                        

See Notes to Financial Statements 
  F-12

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                             ZENITH FUND                                            METROPOLITAN FUND             
---------------------------------------------------------------------  -------------------------------------------
        MFS          MFS          MFS          MFS                                                      PUTNAM    
     INVESTORS    INVESTORS    RESEARCH     RESEARCH         FI        PUTNAM LARGE   PUTNAM LARGE   INTERNATIONAL
       TRUST        TRUST      MANAGERS     MANAGERS       MID CAP      CAP GROWTH     CAP GROWTH        STOCK    
      CLASS A      CLASS E      CLASS A      CLASS E    OPPORTUNITIES    CLASS A        CLASS E         CLASS A   
     PORTFOLIO    PORTFOLIO    PORTFOLIO    PORTFOLIO   PORTFOLIO(A)    PORTFOLIO      PORTFOLIO       PORTFOLIO  
    -----------   ---------   -----------   ---------   -------------  ------------   ------------   -------------
                                                                                                                  
    $    57,603   $   6,055   $    37,165   $  1,137      $     --     $        --     $      --     $    514,870 
    -----------   ---------   -----------   ---------     --------     -----------     ---------     ------------ 
        151,792      23,418       279,230     13,281         2,607         136,258        26,845          703,779 
         14,067       2,170        24,650      1,172           227          14,730         2,902           64,913 
    -----------   ---------   -----------   ---------     --------     -----------     ---------     ------------ 
        165,859      25,588       303,880     14,453         2,834         150,988        29,747          768,692 
    -----------   ---------   -----------   ---------     --------     -----------     ---------     ------------ 
       (108,256)    (19,533)     (266,715)   (13,316)       (2,834)       (150,988)      (29,747)        (253,822)
    -----------   ---------   -----------   ---------     --------     -----------     ---------     ------------ 
     (1,126,760)    (34,548)   (7,792,559)   (33,209)      (21,853)     (4,499,562)     (140,171)     (19,058,416)
     (1,809,955)   (410,420)    1,657,070   (258,779)       12,432         817,669      (501,754)       7,925,526 
    -----------   ---------   -----------   ---------     --------     -----------     ---------     ------------ 
     (2,936,715)   (444,968)   (6,135,489)  (291,988)       (9,421)     (3,681,893)     (641,925)     (11,132,890)
    -----------   ---------   -----------   ---------     --------     -----------     ---------     ------------ 
    $(3,044,971)  $(464,501)  $(6,402,204)  $(305,304)    $(12,255)    $(3,832,881)    $(671,672)    $(11,386,712)
    ===========   =========   ===========   =========     ========     ===========     =========     ============ 

See Notes to Financial Statements 
  F-13

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NEW ENGLAND VARIABLE ANNUITY SEPARATE ACCOUNT                                   
STATEMENT OF OPERATIONS -- FOR THE YEAR ENDED DECEMBER 31, 2002               

                                                        [Enlarge/Download Table]

                                                                          METROPOLITAN FUND                                      
                                      ------------------------------------------------------------------------------------------ 
                                         PUTNAM        STATE STREET    STATE STREET                     RUSSELL        METLIFE   
                                      INTERNATIONAL      RESEARCH        RESEARCH                        2000           STOCK    
                                          STOCK           AURORA          AURORA          JANUS          INDEX          INDEX    
                                         CLASS E         CLASS A         CLASS E         MID CAP        CLASS B        CLASS B   
                                        PORTFOLIO       PORTFOLIO       PORTFOLIO       PORTFOLIO      PORTFOLIO      PORTFOLIO  
                                      -------------    ------------    ------------    -----------     ---------     ----------- 
                                                                                                                                 
INVESTMENT INCOME (LOSS):                                                                                                        
Income:                                                                                                                          
 Dividends.........................    $    38,573     $   177,681     $    74,812     $        --    $    45,673    $   337,691 
                                       -----------     -----------     -----------     -----------    -----------    ----------- 
Expenses:                                                                                                                        
 Mortality and expense charges.....        101,020         408,900         308,733         118,633        111,147        289,712 
 Administrative charges............          9,318          55,786          42,120          14,259         15,557         43,865 
                                       -----------     -----------     -----------     -----------    -----------    ----------- 
 Total Expenses....................        110,338         464,686         350,853         132,892        126,704        333,577 
                                       -----------     -----------     -----------     -----------    -----------    ----------- 
Net investment income (loss).......        (71,765)       (287,005)       (276,041)       (132,892)       (81,031)         4,114 
                                       -----------     -----------     -----------     -----------    -----------    ----------- 
NET REALIZED AND UNREALIZED GAINS                                                                                                
 (LOSSES) ON INVESTMENTS:                                                                                                        
Net realized (losses) gains from                                                                                                 
 security transactions.............       (470,581)       (474,769)       (123,467)     (2,210,275)      (306,220)    (1,012,793)
Change in unrealized appreciation                                                                                                
 (depreciation) of investments for                                                                                               
 the period........................       (850,580)     (8,968,116)     (6,905,962)     (1,079,372)    (1,889,237)    (5,309,773)
                                       -----------     -----------     -----------     -----------    -----------    ----------- 
Net realized and unrealized gains                                                                                                
 (losses) on investments...........     (1,321,161)     (9,442,885)     (7,029,429)     (3,289,647)    (2,195,457)    (6,322,566)
                                       -----------     -----------     -----------     -----------    -----------    ----------- 
NET INCREASE (DECREASE) IN NET                                                                                                   
 ASSETS RESULTING FROM                                                                                                           
 OPERATIONS........................    $(1,392,926)    $(9,729,890)    $(7,305,470)    $(3,422,539)   $(2,276,488)   $(6,318,452)
                                       ===========     ===========     ===========     ===========    ===========    =========== 


                                             METROPOLITAN FUND                                                                   
                                    -----------------------------------                                                          
                                        FRANKLIN           NEUBERGER                                                             
                                       TEMPLETON        BERMAN PARTNERS                                                          
                                    SMALL CAP GROWTH     MID CAP VALUE                                                           
                                        CLASS B             CLASS B                                                              
                                       PORTFOLIO           PORTFOLIO                                                             
                                    ----------------    ---------------                                                          
                                                                                                                                 
INVESTMENT INCOME (LOSS):                                                                                                        
Income:                                                                                                                          
 Dividends.........................   $        --          $   8,060                                                             
                                      -----------          ---------                                                             
Expenses:                                                                                                                        
 Mortality and expense charges.....        83,427             60,524                                                             
 Administrative charges............        12,956              8,665                                                             
                                      -----------          ---------                                                             
 Total Expenses....................        96,383             69,189                                                             
                                      -----------          ---------                                                             
Net investment income (loss).......       (96,383)           (61,129)                                                            
                                      -----------          ---------                                                             
NET REALIZED AND UNREALIZED GAINS                                                                                                
 (LOSSES) ON INVESTMENTS:                                                                                                        
Net realized (losses) gains from                                                                                                 
 security transactions.............      (384,505)          (119,676)                                                            
Change in unrealized appreciation                                                                                                
 (depreciation) of investments for                                                                                               
 the period........................    (1,813,635)          (504,610)                                                            
                                      -----------          ---------                                                             
Net realized and unrealized gains                                                                                                
 (losses) on investments...........    (2,198,140)          (624,286)                                                            
                                      -----------          ---------                                                             
NET INCREASE (DECREASE) IN NET                                                                                                   
 ASSETS RESULTING FROM                                                                                                           
 OPERATIONS........................   $(2,294,523)         $(685,415)                                                            
                                      ===========          =========                                                             

(a) For the period May 1, 2002 through December 31, 2002                        

See Notes to Financial Statements 
  F-14

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                                                  METROPOLITAN FUND                                                  
---------------------------------------------------------------------------------------------------------------------
    HARRIS OAKMARK    STATE STREET     LEHMAN BROTHERS     MORGAN         METLIFE                      STATE STREET  
      LARGE CAP         RESEARCH       AGGREGATE BOND      STANLEY     MID CAP STOCK      JANUS          RESEARCH    
        VALUE        LARGE CAP VALUE        INDEX        EAFE INDEX        INDEX         GROWTH      INVESTMENT TRUST
       CLASS E           CLASS E           CLASS B         CLASS B        CLASS B        CLASS B         CLASS B     
    PORTFOLIO (A)     PORTFOLIO (A)       PORTFOLIO       PORTFOLIO      PORTFOLIO      PORTFOLIO       PORTFOLIO    
    --------------   ---------------   ---------------   -----------   -------------   -----------   ----------------
                                                                                                                     
      $  19,054         $  6,862         $  559,776      $    19,186    $    19,397    $        --     $    21,305   
      ---------         --------         ----------      -----------    -----------    -----------     -----------   
         21,929            5,273            311,190           71,452         98,596         51,199          60,094   
          1,907              978             41,246           10,242         14,374          8,510          10,482   
      ---------         --------         ----------      -----------    -----------    -----------     -----------   
         23,836            6,251            352,436           81,694        112,970         59,709          70,576   
      ---------         --------         ----------      -----------    -----------    -----------     -----------   
         (4,782)             611            207,340          (62,508)       (93,573)       (59,709)        (49,271)  
      ---------         --------         ----------      -----------    -----------    -----------     -----------   
        (89,908)         (18,706)           155,377         (493,431)      (319,323)      (348,469)       (232,471)  
        (99,476)         (31,118)         1,684,877         (535,795)    (1,387,396)    (1,078,337)     (1,200,210)  
      ---------         --------         ----------      -----------    -----------    -----------     -----------   
       (189,384)         (49,824)         1,840,254       (1,029,226)    (1,706,719)    (1,426,806)     (1,432,681)  
      ---------         --------         ----------      -----------    -----------    -----------     -----------   
      $(194,166)        $(49,213)        $2,047,594      $(1,091,734)   $(1,800,292)   $(1,486,515)    $(1,481,952)  
      =========         ========         ==========      ===========    ===========    ===========     ===========   

See Notes to Financial Statements 
  F-15

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NEW ENGLAND VARIABLE ANNUITY SEPARATE ACCOUNT                                   
STATEMENT OF OPERATIONS -- FOR THE YEAR ENDED DECEMBER 31, 2002               

                                                        [Enlarge/Download Table]

                                                                          MET INVESTORS FUND                                     
                                      -------------------------------------------------------------------------------------------
                                           MFS             MFS                                       LORD ABBETT       MET/AIM   
                                        RESEARCH         MID CAP         PIMCO           PIMCO          BOND           MID CAP   
                                      INTERNATIONAL      GROWTH       TOTAL RETURN    INNOVATION      DEBENTURE      CORE EQUITY 
                                         CLASS B         CLASS B        CLASS B         CLASS B        CLASS B         CLASS B   
                                        PORTFOLIO       PORTFOLIO      PORTFOLIO       PORTFOLIO      PORTFOLIO     PORTFOLIO (A)
                                      -------------    -----------    ------------    -----------    -----------    -------------
                                                                                                                                 
INVESTMENT INCOME (LOSS):                                                                                                        
Income:                                                                                                                          
 Dividends.........................     $   8,677      $    34,263     $       --     $        --     $ 532,831        $  1,523  
                                        ---------      -----------     ----------     -----------     ---------        --------  
Expenses:                                                                                                                        
 Mortality and expense charges.....        54,672           54,091        628,713          36,274       105,561          15,660  
 Administrative charges............        10,135            8,104         98,495           3,154        16,310           3,214  
                                        ---------      -----------     ----------     -----------     ---------        --------  
 Total Expenses....................        64,807           62,195        727,208          39,428       121,871          18,874  
                                        ---------      -----------     ----------     -----------     ---------        --------  
Net investment income (loss).......       (56,130)         (27,932)      (727,208)        (39,428)      410,960         (17,351) 
                                        ---------      -----------     ----------     -----------     ---------        --------  
NET REALIZED AND UNREALIZED GAINS                                                                                                
 (LOSSES) ON INVESTMENTS:                                                                                                        
Net realized (losses) gains from                                                                                                 
 security transactions.............       (87,094)        (562,022)       188,159      (1,376,525)     (108,646)        (14,987) 
Change in unrealized appreciation                                                                                                
 (depreciation) of investments for                                                                                               
 the period........................      (512,812)      (1,869,396)     4,746,004        (643,985)     (270,273)        (34,595) 
                                        ---------      -----------     ----------     -----------     ---------        --------  
Net realized and unrealized gains                                                                                                
 (losses) on investments...........      (599,906)      (2,431,418)     4,934,163      (2,020,510)     (378,919)        (49,582) 
                                        ---------      -----------     ----------     -----------     ---------        --------  
NET INCREASE (DECREASE) IN NET                                                                                                   
 ASSETS RESULTING FROM                                                                                                           
 OPERATIONS........................     $(656,036)     $(2,459,350)    $4,206,955     $(2,059,938)    $  32,041        $(66,933) 
                                        =========      ===========     ==========     ===========     =========        ========  


                                              MET INVESTORS FUND                                                                 
                                    --------------------------------------                                                       
                                       MET/AIM           STATE STREET                                                            
                                        SMALL        RESEARCH CONCENTRATED                                                       
                                     CAP GROWTH          INTERNATIONAL                                                           
                                       CLASS B              CLASS E                                                              
                                    PORTFOLIO (A)        PORTFOLIO (A)                                                           
                                    -------------    ---------------------                                                       
                                                                                                                                 
INVESTMENT INCOME (LOSS):                                                                                                        
Income:                                                                                                                          
 Dividends.........................   $      --            $    952                                                              
                                      ---------            --------                                                              
Expenses:                                                                                                                        
 Mortality and expense charges.....       7,128               2,284                                                              
 Administrative charges............       1,216                 199                                                              
                                      ---------            --------                                                              
 Total Expenses....................       8,344               2,483                                                              
                                      ---------            --------                                                              
Net investment income (loss).......      (8,344)             (1,531)                                                             
                                      ---------            --------                                                              
NET REALIZED AND UNREALIZED GAINS                                                                                                
 (LOSSES) ON INVESTMENTS:                                                                                                        
Net realized (losses) gains from                                                                                                 
 security transactions.............     (23,726)            (13,705)                                                             
Change in unrealized appreciation                                                                                                
 (depreciation) of investments for                                                                                               
 the period........................    (104,475)             (1,565)                                                             
                                      ---------            --------                                                              
Net realized and unrealized gains                                                                                                
 (losses) on investments...........    (128,201)            (15,270)                                                             
                                      ---------            --------                                                              
NET INCREASE (DECREASE) IN NET                                                                                                   
 ASSETS RESULTING FROM                                                                                                           
 OPERATIONS........................   $(136,545)           $(16,801)                                                             
                                      =========            ========                                                              

(a) For the period May 1, 2002 through December 31, 2002                        

See Notes to Financial Statements 
  F-16

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                  AMERICAN FUND                  
-------------------------------------------------
                      AMERICAN         AMERICAN  
      AMERICAN      FUNDS GROWTH-    FUNDS GLOBAL
    FUNDS GROWTH       INCOME         SMALL CAP  
      CLASS B          CLASS B         CLASS B   
     PORTFOLIO        PORTFOLIO       PORTFOLIO  
    ------------    -------------    ------------
                                                 
    $    22,960     $    709,706     $    59,896 
    ------------    ------------     ----------- 
        675,530          701,461         115,391 
        113,514          112,539          19,995 
    ------------    ------------     ----------- 
        789,044          814,000         135,386 
    ------------    ------------     ----------- 
       (766,084)        (104,294)        (75,490)
    ------------    ------------     ----------- 
     (2,113,222)      (1,218,017)        (62,855)
    (10,249,528)      (9,467,301)     (2,008,930)
    ------------    ------------     ----------- 
    (12,362,750)     (10,685,318)     (2,071,785)
    ------------    ------------     ----------- 
    $(13,128,834)   $(10,789,612)    $(2,147,275)
    ============    ============     =========== 

See Notes to Financial Statements 
  F-17

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NEW ENGLAND VARIABLE ANNUITY SEPARATE ACCOUNT                                   
 STATEMENT OF CHANGES IN NET ASSETS -- FOR THE YEARS ENDED DECEMBER 31, 2002 AND
2001                                                                            

                                                        [Enlarge/Download Table]

                                                                           ZENITH FUND                                        
                                    ----------------------------------------------------------------------------------------- 
                                       STATE STREET RESEARCH          STATE STREET RESEARCH          STATE STREET RESEARCH    
                                        BOND INCOME CLASS A            BOND INCOME CLASS B           MONEY MARKET CLASS A     
                                             PORTFOLIO                      PORTFOLIO                      PORTFOLIO          
                                    ---------------------------   -----------------------------   --------------------------- 
                                      FOR THE        FOR THE        FOR THE     FOR THE PERIOD      FOR THE        FOR THE    
                                     YEAR ENDED     YEAR ENDED    YEAR ENDED    JULY 2, 2001 TO    YEAR ENDED     YEAR ENDED  
                                      DEC. 31,       DEC. 31,      DEC. 31,        DEC. 31,         DEC. 31,       DEC. 31,   
                                        2002           2001          2002            2001             2002           2001     
                                    ------------   ------------   -----------   ---------------   ------------   ------------ 
                                                                                                                              
INCREASE (DECREASE) IN NET ASSETS                                                                                             
From operations:                                                                                                              
 Net investment income (loss)...... $  4,411,181   $  8,502,797   $   465,102     $  (18,642)     $   (121,108)  $  2,730,250 
 Net (losses) realized gains from                                                                                             
  security transactions............     (415,163)        (2,793)       29,396             90                --             -- 
 Change in unrealized appreciation                                                                                            
  (depreciation) of investments....    4,700,872        100,534     1,488,133         (1,419)               --             -- 
                                    ------------   ------------   -----------     ----------      ------------   ------------ 
 Net increase (decrease) in net                                                                                               
  assets resulting from                                                                                                       
  operations.......................    8,696,890      8,600,538     1,982,631        (19,971)         (121,108)     2,730,250 
                                    ------------   ------------   -----------     ----------      ------------   ------------ 
From capital transactions:                                                                                                    
 Net premiums......................    3,379,392     15,003,606    22,149,341      5,935,921         5,475,784     36,031,482 
 Redemptions.......................  (13,917,687)    (9,722,996)   (1,351,284)       (18,839)      (33,172,033)   (22,156,048)
                                    ------------   ------------   -----------     ----------      ------------   ------------ 
 Total net (redemptions)                                                                                                      
  premiums.........................  (10,538,295)     5,280,610    20,798,057      5,917,082       (27,696,249)    13,875,434 
 Net portfolio transfers...........   (1,279,468)    10,918,336    (1,348,908)            --          (149,668)    10,220,643 
 Other net transfers...............    6,366,273      2,478,014    18,409,866      2,033,921        22,476,349      1,574,654 
                                    ------------   ------------   -----------     ----------      ------------   ------------ 
 Net (decrease) increase in net                                                                                               
  assets resulting from capital                                                                                               
  transactions.....................   (5,451,490)    18,676,960    37,859,015      7,951,003        (5,369,568)    25,670,731 
                                    ------------   ------------   -----------     ----------      ------------   ------------ 
NET CHANGE IN NET ASSETS...........    3,245,400     27,277,498    39,841,646      7,931,032        (5,490,676)    28,400,981 
NET ASSETS -- BEGINNING OF                                                                                                    
 PERIOD............................  130,132,366    102,854,868     7,931,032             --       107,682,611     79,281,630 
                                    ------------   ------------   -----------     ----------      ------------   ------------ 
NET ASSETS -- END OF PERIOD........ $133,377,766   $130,132,366   $47,772,678     $7,931,032      $102,191,935   $107,682,611 
                                    ============   ============   ===========     ==========      ============   ============ 


                                             ZENITH FUND                                                                      
                                    -----------------------------                                                             
                                        STATE STREET RESEARCH                                                                 
                                        MONEY MARKET CLASS B                                                                  
                                              PORTFOLIO                                                                       
                                    -----------------------------                                                             
                                      FOR THE     FOR THE PERIOD                                                              
                                    YEAR ENDED    JULY 2, 2001 TO                                                             
                                     DEC. 31,        DEC. 31,                                                                 
                                       2002            2001                                                                   
                                    -----------   ---------------                                                             
                                                                                                                              
INCREASE (DECREASE) IN NET ASSETS                                                                                             
From operations:                                                                                                              
 Net investment income (loss)...... $  (132,046)    $    (2,381)                                                              
 Net (losses) realized gains from                                                                                             
  security transactions............          --              --                                                               
 Change in unrealized appreciation                                                                                            
  (depreciation) of investments....          --              --                                                               
                                    -----------     -----------                                                               
 Net increase (decrease) in net                                                                                               
  assets resulting from                                                                                                       
  operations.......................    (132,046)         (2,381)                                                              
                                    -----------     -----------                                                               
From capital transactions:                                                                                                    
 Net premiums......................  56,052,445      20,491,103                                                               
 Redemptions.......................  (3,019,865)        (72,239)                                                              
                                    -----------     -----------                                                               
 Total net (redemptions)                                                                                                      
  premiums.........................  53,032,580      20,418,864                                                               
 Net portfolio transfers...........  (2,666,932)             --                                                               
 Other net transfers...............  (8,388,392)     (5,009,939)                                                              
                                    -----------     -----------                                                               
 Net (decrease) increase in net                                                                                               
  assets resulting from capital                                                                                               
  transactions.....................  41,977,256      15,408,925                                                               
                                    -----------     -----------                                                               
NET CHANGE IN NET ASSETS...........  41,845,210      15,406,544                                                               
NET ASSETS -- BEGINNING OF                                                                                                    
 PERIOD............................  15,406,544              --                                                               
                                    -----------     -----------                                                               
NET ASSETS -- END OF PERIOD........ $57,251,754     $15,406,544                                                               
                                    ===========     ===========                                                               

See Notes to Financial Statements 
  F-18

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                                              ZENITH FUND                                               
--------------------------------------------------------------------------------------------------------
         HARRIS OAKMARK                      HARRIS OAKMARK                                             
          FOCUSED VALUE                      FOCUSED VALUE                   FI STRUCTURED EQUITY       
        CLASS A PORTFOLIO                  CLASS E PORTFOLIO                   CLASS A PORTFOLIO        
---------------------------------   --------------------------------   ---------------------------------
 FOR THE YEAR      FOR THE YEAR      FOR THE YEAR     FOR THE PERIOD    FOR THE YEAR      FOR THE YEAR  
     ENDED             ENDED             ENDED         JULY 2, 2001         ENDED             ENDED     
   DEC. 31,          DEC. 31,          DEC. 31,        TO DEC. 31,        DEC. 31,          DEC. 31,    
     2002              2001              2002              2001             2002              2001      
---------------   ---------------   ---------------   --------------   ---------------   ---------------
                                                                                                         
 $ (1,469,407)     $   (463,198)      $  (477,485)     $   (23,051)     $   (636,593)     $    149,595  
      374,944             2,970           (60,035)              --       (11,788,934)       (1,220,250) 
  (13,207,718)       20,177,692        (3,418,590)         558,025       (15,395,232)      (27,453,200) 
 ------------      ------------       -----------      -----------      ------------      ------------  
  (14,302,181)       19,717,464        (3,956,110)         534,974       (27,820,759)      (28,523,855) 
 ------------      ------------       -----------      -----------      ------------      ------------  
    5,629,549        17,293,208        31,018,101        6,815,774         2,532,309        11,642,730  
  (10,291,342)       (6,250,648)       (1,328,485)         (27,076)      (11,688,834)      (12,805,576) 
 ------------      ------------       -----------      -----------      ------------      ------------  
   (4,661,793)       11,042,560        29,689,616        6,788,698        (9,156,525)       (1,162,846) 
     (369,893)       26,013,400            61,207               --           334,343       (19,971,658) 
    6,815,962         4,197,957        22,326,390        2,960,596       (21,060,924)       (2,461,428) 
 ------------      ------------       -----------      -----------      ------------      ------------  
    1,784,276        41,253,917        52,077,213        9,749,294       (29,883,106)      (23,595,932) 
 ------------      ------------       -----------      -----------      ------------      ------------  
  (12,517,905)       60,971,381        48,121,103       10,284,268       (57,703,865)      (52,119,787) 
  118,895,328        57,923,947        10,284,268               --       146,247,927       198,367,714  
 ------------      ------------       -----------      -----------      ------------      ------------  
 $106,377,423      $118,895,328       $58,405,371      $10,284,268      $ 88,544,062      $146,247,927  
 ============      ============       ===========      ===========      ============      ============  


                                               ZENITH FUND                                              
 -------------------------------------------------------------------------------------------------------

       FI STRUCTURED EQUITY           LOOMIS SAYLES SMALL CAP CLASS      LOOMIS SAYLES SMALL CAP CLASS  
        CLASS E PORTFOLIO                      A PORTFOLIO                        E PORTFOLIO           
 --------------------------------   ---------------------------------   --------------------------------
  FOR THE YEAR     FOR THE PERIOD    FOR THE YEAR      FOR THE YEAR      FOR THE YEAR     FOR THE PERIOD
      ENDED         JULY 2, 2001         ENDED             ENDED             ENDED         JULY 2, 2001 
    DEC. 31,        TO DEC. 31,        DEC. 31,          DEC. 31,          DEC. 31,        TO DEC. 31,  
      2002              2001             2002              2001              2002              2001     
 ---------------   --------------   ---------------   ---------------   ---------------   --------------
                                                                                                        
   $  (17,791)       $   (3,552)     $ (1,564,162)     $  9,797,940       $   (86,632)      $   (4,742) 
      (50,830)            1,706         1,548,576            30,402           (33,444)          (1,133) 
     (675,152)           26,069       (28,086,173)      (26,970,902)       (1,370,002)         113,470  
   ----------        ----------      ------------      ------------       -----------       ----------  
     (743,773)           24,223       (28,101,759)      (17,142,560)       (1,490,078)         107,595  
   ----------        ----------      ------------      ------------       -----------       ----------  
    1,915,317         1,275,073         2,878,641        11,419,245         5,318,727        1,567,052  
     (120,609)           (1,627)      (10,271,469)       (8,612,744)         (248,710)          (7,646) 
   ----------        ----------      ------------      ------------       -----------       ----------  
    1,794,708         1,273,446        (7,392,828)        2,806,501         5,070,017        1,559,406  
      115,353                --            57,089       (21,176,322)          190,239               --  
    1,820,083           228,659       (16,321,031)        1,109,266         3,281,591          469,262  
   ----------        ----------      ------------      ------------       -----------       ----------  
    3,730,144         1,502,105       (23,656,770)      (17,260,555)        8,541,847        2,028,668  
   ----------        ----------      ------------      ------------       -----------       ----------  
    2,986,371         1,526,328       (51,758,529)      (34,403,115)        7,051,769        2,136,263  
    1,526,328                --       133,273,232       167,676,347         2,136,263               --  
   ----------        ----------      ------------      ------------       -----------       ----------  
   $4,512,699        $1,526,328      $ 81,514,703      $133,273,232       $ 9,188,032       $2,136,263  
   ==========        ==========      ============      ============       ===========       ==========  

See Notes to Financial Statements 
  F-19

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NEW ENGLAND VARIABLE ANNUITY SEPARATE ACCOUNT                                   
 STATEMENT OF CHANGES IN NET ASSETS -- FOR THE YEARS ENDED DECEMBER 31, 2002 AND
2001                                                                            

                                                        [Enlarge/Download Table]

                                                                     ZENITH FUND                                     
                                  ---------------------------------------------------------------------------------- 
                                    SALOMON BROTHERS U.S.      SALOMON BROTHERS U.S.     SALOMON BROTHERS STRATEGIC  
                                         GOVERNMENT                  GOVERNMENT              BOND OPPORTUNITIES      
                                      CLASS A PORTFOLIO          CLASS E PORTFOLIO            CLASS A PORTFOLIO      
                                  -------------------------   ------------------------   --------------------------- 
                                                                             FOR THE                                 
                                    FOR THE       FOR THE       FOR THE       PERIOD       FOR THE        FOR THE    
                                     YEAR          YEAR          YEAR        JULY 2,         YEAR           YEAR     
                                     ENDED         ENDED         ENDED       2001 TO        ENDED          ENDED     
                                   DEC. 31,      DEC. 31,      DEC. 31,      DEC. 31,      DEC. 31,       DEC. 31,   
                                     2002          2001          2002          2001          2002           2001     
                                  -----------   -----------   -----------   ----------   ------------   ------------ 
                                                                                                                     
INCREASE (DECREASE) IN NET                                                                                           
 ASSETS                                                                                                              
From operations:                                                                                                     
 Net investment income (loss)...  $ 1,954,006   $ 2,491,033   $   488,635   $  (16,043)  $ 3,924,474    $ 4,941,364  
 Net (losses) realized gains                                                                                         
  from security transactions....      542,092          (454)       29,230          (83)     (980,841)        22,396  
 Change in unrealized                                                                                                
  appreciation (depreciation) of                                                                                     
  investments...................    1,560,430       193,318       820,507      (13,726)    2,295,046     (1,097,423) 
                                  -----------   -----------   -----------   ----------   -----------    -----------  
  Net increase (decrease) in net                                                                                     
    assets resulting from                                                                                            
    operations..................    4,056,528     2,683,897     1,338,372      (29,852)    5,238,679      3,866,337  
                                  -----------   -----------   -----------   ----------   -----------    -----------  
From capital transactions:                                                                                           
 Net premiums...................    2,255,371     8,777,844    18,478,305    4,279,383     1,345,295      8,067,258  
 Redemptions....................   (7,019,844)   (3,755,851)   (1,211,021)     (28,292)   (6,471,942)    (5,090,078) 
                                  -----------   -----------   -----------   ----------   -----------    -----------  
 Total net (redemptions)                                                                                             
  premiums......................   (4,764,473)    5,021,993    17,267,284    4,251,091    (5,126,647)     2,977,180  
 Net portfolio transfers........     (933,815)    7,088,735      (506,450)          --      (366,557)       364,004  
Other net transfers.............   16,910,797     3,385,922    17,399,254    2,071,777    (2,297,092)    (1,519,785) 
                                  -----------   -----------   -----------   ----------   -----------    -----------  
  Net (decrease) increase in net                                                                                     
    assets resulting from                                                                                            
    capital transactions........   11,212,509    15,496,650    34,160,088    6,322,868    (7,790,296)     1,821,399  
                                  -----------   -----------   -----------   ----------   -----------    -----------  
NET CHANGE IN NET ASSETS........   15,269,037    18,180,547    35,498,460    6,293,016    (2,551,617)     5,687,736  
NET ASSETS -- BEGINNING OF                                                                                           
 PERIOD.........................   58,188,036    40,007,489     6,293,016           --    69,767,748     64,080,012  
                                  -----------   -----------   -----------   ----------   -----------    -----------  
NET ASSETS -- END OF PERIOD.....  $73,457,073   $58,188,036   $41,791,476   $6,293,016   $67,216,131    $69,767,748  
                                  ===========   ===========   ===========   ==========   ===========    ===========  


                                                                     ZENITH FUND                                     
                                  ---------------------------------------------------------------------------------- 
                                   SALOMON BROTHERS STRATEGIC                                                        
                                       BOND OPPORTUNITIES         LOOMIS SAYLES BALANCED     LOOMIS SAYLES BALANCED  
                                       CLASS E PORTFOLIO             CLASS A PORTFOLIO          CLASS E PORTFOLIO    
                                  ----------------------------   -------------------------   ----------------------- 
                                                   FOR THE                                                 FOR THE   
                                    FOR THE         PERIOD         FOR THE                                  PERIOD   
                                     YEAR          JULY 2,          YEAR         FOR THE      FOR THE      JULY 2,   
                                     ENDED         2001 TO          ENDED      YEAR ENDED    YEAR ENDED    2001 TO   
                                   DEC. 31,        DEC. 31,       DEC. 31,      DEC. 31,      DEC. 31,     DEC. 31,  
                                     2002            2001           2002          2001          2002         2001    
                                  -----------   --------------   -----------   -----------   ----------   ---------- 
                                                                                                                     
INCREASE (DECREASE) IN NET                                                                                           
 ASSETS                                                                                                              
From operations:                                                                                                     
 Net investment income (loss)...  $   440,039     $   (6,348)    $   773,056   $ 3,064,752   $    9,286   $   (3,928)
 Net (losses) realized gains                                                                                         
  from security transactions....       (4,193)           (69)     (4,641,729)        3,394      (76,124)          -- 
 Change in unrealized                                                                                                
  appreciation (depreciation) of                                                                                     
  investments...................      528,458         15,252      (8,848,989)   (8,190,561)    (728,463)      17,341 
                                  -----------     ----------     -----------   -----------   ----------   ---------- 
  Net increase (decrease) in net                                                                                     
    assets resulting from                                                                                            
    operations..................      964,304          8,835     (12,717,662)   (5,122,415)    (795,301)      13,413 
                                  -----------     ----------     -----------   -----------   ----------   ---------- 
From capital transactions:                                                                                           
 Net premiums...................    8,609,036      1,702,387       2,329,248    10,206,112    4,597,465    1,280,466 
 Redemptions....................     (454,366)        (5,159)     (7,481,690)   (7,287,097)    (365,144)      (5,799)
                                  -----------     ----------     -----------   -----------   ----------   ---------- 
 Total net (redemptions)                                                                                             
  premiums......................    8,154,670      1,697,228      (5,152,442)    2,919,015    4,232,321    1,274,667 
 Net portfolio transfers........     (384,831)            --          59,821    (5,153,032)      87,353           -- 
Other net transfers.............    7,492,539        730,027     (10,166,168)     (468,598)   4,438,020      294,078 
                                  -----------     ----------     -----------   -----------   ----------   ---------- 
  Net (decrease) increase in net                                                                                     
    assets resulting from                                                                                            
    capital transactions........   15,262,378      2,427,255     (15,258,789)   (2,702,615)   8,757,694    1,568,745 
                                  -----------     ----------     -----------   -----------   ----------   ---------- 
NET CHANGE IN NET ASSETS........   16,226,682      2,436,090     (27,976,451)   (7,825,030)   7,962,393    1,582,158 
NET ASSETS -- BEGINNING OF                                                                                           
 PERIOD.........................    2,436,090             --      88,939,794    96,764,824    1,582,158           -- 
                                  -----------     ----------     -----------   -----------   ----------   ---------- 
NET ASSETS -- END OF PERIOD.....  $18,662,772     $2,436,090     $60,963,343   $88,939,794   $9,544,551   $1,582,158 
                                  ===========     ==========     ===========   ===========   ==========   ========== 

See Notes to Financial Statements 
  F-20

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                                                    ZENITH FUND                                                      
-------------------------------------------------------------------------------------------------------------------- 
        ALGER EQUITY GROWTH         ALGER EQUITY GROWTH          DAVIS VENTURE VALUE          DAVIS VENTURE VALUE    
         CLASS A PORTFOLIO           CLASS E PORTFOLIO            CLASS A PORTFOLIO            CLASS E PORTFOLIO     
    ---------------------------   ------------------------   ---------------------------   ------------------------- 
                                                 FOR THE                                                   FOR THE   
      FOR THE        FOR THE        FOR THE       PERIOD       FOR THE        FOR THE        FOR THE       PERIOD    
        YEAR           YEAR          YEAR        JULY 2,         YEAR           YEAR          YEAR         JULY 2,   
       ENDED          ENDED          ENDED       2001 TO        ENDED          ENDED          ENDED        2001 TO   
      DEC. 31,       DEC. 31,      DEC. 31,      DEC. 31,      DEC. 31,       DEC. 31,      DEC. 31,      DEC. 31,   
        2002           2001          2002          2001          2002           2001          2002          2001     
    ------------   ------------   -----------   ----------   ------------   ------------   -----------   ----------- 
                                                                                                                     
    $ (3,237,488)  $ 17,939,526   $  (144,756)  $  (12,988)  $ (1,597,650)  $ 33,086,396   $  (238,842)  $   (25,250)
         598,023     (1,188,669)     (339,941)          --     13,714,824        305,915      (120,658)           -- 
     (91,894,712)   (66,023,534)   (4,010,127)     124,184    (65,766,427)   (78,125,171)   (5,209,029)      373,106 
    ------------   ------------   -----------   ----------   ------------   ------------   -----------   ----------- 
     (94,534,177)   (49,272,677)   (4,494,824)     111,196    (53,649,253)   (44,732,860)   (5,568,529)      347,856 
    ------------   ------------   -----------   ----------   ------------   ------------   -----------   ----------- 
       7,701,258     33,568,288     9,990,097    3,888,107      7,831,437     36,965,466    26,301,689     8,004,550 
     (21,542,009)   (24,424,573)     (818,724)     (19,334)   (25,408,049)   (22,680,629)   (1,316,822)      (25,964)
    ------------   ------------   -----------   ----------   ------------   ------------   -----------   ----------- 
     (13,840,751)     9,143,715     9,171,373    3,868,773    (17,576,612)    14,284,837    24,984,867     7,978,586 
       1,430,466    (39,121,453)      679,831           --        (68,973)   (20,221,280)      382,036            -- 
     (37,392,706)       (90,440)    4,873,815    1,012,888    (27,024,678)     2,457,185    17,979,617     3,004,384 
    ------------   ------------   -----------   ----------   ------------   ------------   -----------   ----------- 
     (49,802,991)   (30,068,178)   14,725,019    4,881,661    (44,670,263)    (3,479,258)   43,346,520    10,982,970 
    ------------   ------------   -----------   ----------   ------------   ------------   -----------   ----------- 
    (144,337,168)   (79,340,855)   10,230,195    4,992,857    (98,319,516)   (48,212,118)   37,777,991    11,330,826 
     298,234,716    377,575,571     4,992,857           --    314,521,621    362,733,739    11,330,826            -- 
    ------------   ------------   -----------   ----------   ------------   ------------   -----------   ----------- 
    $153,897,548   $298,234,716   $15,223,052   $4,992,857   $216,202,105   $314,521,621   $49,108,817   $11,330,826 
    ============   ============   ===========   ==========   ============   ============   ===========   =========== 


                       ZENITH FUND                                                                                   
---  ------------------------------------------------                                                                
       MFS INVESTORS TRUST       MFS INVESTORS TRUST                                                                 
        CLASS A PORTFOLIO         CLASS E PORTFOLIO                                                                  
     ------------------------   ---------------------                                                                
                                             FOR THE                                                                 
      FOR THE       FOR THE      FOR THE      PERIOD                                                                 
        YEAR         YEAR          YEAR      JULY 2,                                                                 
       ENDED         ENDED        ENDED      2001 TO                                                                 
      DEC. 31,     DEC. 31,      DEC. 31,    DEC. 31,                                                                
        2002         2001          2002        2001                                                                  
     ----------   -----------   ----------   --------                                                                
                                                                                                                     
     $ (108,256)  $   (62,511)  $  (19,533)  $ (1,460)                                                               
     (1,126,760)      (57,058)     (34,548)       (42)                                                               
     (1,809,955)   (2,659,718)    (410,420)    18,373                                                                
     ----------   -----------   ----------   --------                                                                
     (3,044,971)   (2,779,287)    (464,501)    16,871                                                                
     ----------   -----------   ----------   --------                                                                
        523,411     3,757,581    1,919,939    541,480                                                                
     (1,083,872)   (1,034,452)    (139,025)      (157)                                                               
     ----------   -----------   ----------   --------                                                                
       (560,461)    2,723,129    1,780,914    541,323                                                                
        115,983      (738,983)      15,514         --                                                                
     (1,528,547)      680,885    1,053,060    160,034                                                                
     ----------   -----------   ----------   --------                                                                
     (1,973,025)    2,665,031    2,849,488    701,357                                                                
     ----------   -----------   ----------   --------                                                                
     (5,017,996)     (114,256)   2,384,987    718,228                                                                
     14,894,045    15,008,301      718,228         --                                                                
     ----------   -----------   ----------   --------                                                                
     $9,876,049   $14,894,045   $3,103,215   $718,228                                                                
     ==========   ===========   ==========   ========                                                                

See Notes to Financial Statements 
  F-21

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NEW ENGLAND VARIABLE ANNUITY SEPARATE ACCOUNT                                   
 STATEMENT OF CHANGES IN NET ASSETS -- FOR THE YEARS ENDED DECEMBER 31, 2002 AND
2001                                                                            

                                                        [Enlarge/Download Table]

                                                  ZENITH FUND                                   METROPOLITAN FUND     
                      -------------------------------------------------------------------   ------------------------- 
                                                        MFS RESEARCH         FI MID CAP                               
                         MFS RESEARCH MANAGERS        MANAGERS CLASS E      OPPORTUNITIES       PUTNAM LARGE CAP      
                           CLASS A PORTFOLIO              PORTFOLIO           PORTFOLIO     GROWTH CLASS A PORTFOLIO  
                      ---------------------------   ---------------------   -------------   ------------------------- 
                                                                 FOR THE       FOR THE                                
                        FOR THE        FOR THE       FOR THE      PERIOD       PERIOD         FOR THE       FOR THE   
                          YEAR           YEAR          YEAR      JULY 2,       MAY 1,          YEAR          YEAR     
                         ENDED          ENDED         ENDED      2001 TO       2002 TO         ENDED         ENDED    
                        DEC. 31,       DEC. 31,      DEC. 31,    DEC. 31,     DEC. 31,       DEC. 31,      DEC. 31,   
                          2002           2001          2002        2001         2002           2002          2001     
                      ------------   ------------   ----------   --------   -------------   -----------   ----------- 
                                                                                                                      
INCREASE (DECREASE)                                                                                                   
 IN NET ASSETS                                                                                                        
 From operations:                                                                                                     
  Net investment                                                                                                      
   income (loss)..... $   (266,715)  $     53,890   $  (13,316)  $   (951)    $ (2,834)     $  (150,988)  $  (110,412)
  Net (losses)                                                                                                        
   realized gains                                                                                                     
   from security                                                                                                      
   transactions......   (7,792,559)      (957,651)     (33,209)       (15)     (21,853)      (4,499,562)      (55,965)
  Change in                                                                                                           
   unrealized                                                                                                         
   appreciation                                                                                                       
   (depreciation) of                                                                                                  
   investments.......    1,657,070     (8,078,106)    (258,779)     6,965       12,432          817,669    (4,384,399)
                      ------------   ------------   ----------   --------     --------      -----------   ----------- 
  Net increase                                                                                                        
   (decrease) in net                                                                                                  
   assets resulting                                                                                                   
   from operations...   (6,402,204)    (8,981,867)    (305,304)     5,999      (12,255)      (3,832,881)   (4,550,776)
                      ------------   ------------   ----------   --------     --------      -----------   ----------- 
 From capital                                                                                                         
  transactions:                                                                                                       
  Net premiums.......      798,959      5,761,714      997,660    293,215      475,209          738,683     6,009,168 
  Redemptions........   (1,628,170)    (2,061,686)     (35,448)      (668)     (25,148)      (1,028,066)     (642,192)
                      ------------   ------------   ----------   --------     --------      -----------   ----------- 
  Total net                                                                                                           
   (redemptions)                                                                                                      
   premiums..........     (829,211)     3,700,028      962,212    292,547      450,061         (289,383)    5,366,976 
  Net portfolio                                                                                                       
   transfers.........      144,787     (8,516,506)      25,192         --       (3,578)         241,104       302,124 
  Other net                                                                                                           
   transfers.........   (4,329,511)       369,637      626,169     77,316      364,714       (1,545,792)      527,420 
                      ------------   ------------   ----------   --------     --------      -----------   ----------- 
  Net (decrease)                                                                                                      
   increase in net                                                                                                    
   assets resulting                                                                                                   
   from capital                                                                                                       
   transactions......   (5,013,935)    (4,446,841)   1,613,573    369,863      811,197       (1,594,071)    6,196,520 
                      ------------   ------------   ----------   --------     --------      -----------   ----------- 
NET CHANGE IN NET                                                                                                     
 ASSETS..............  (11,416,139)   (13,428,708)   1,308,269    375,862      798,942       (5,426,952)    1,645,744 
NET                                                                                                                   
 ASSETS -- BEGINNING                                                                                                  
 OF PERIOD...........   27,364,322     40,793,030      375,862         --           --       13,042,693    11,396,949 
                      ------------   ------------   ----------   --------     --------      -----------   ----------- 
NET ASSETS -- END OF                                                                                                  
 PERIOD.............. $ 15,948,183   $ 27,364,322   $1,684,131   $375,862     $798,942      $ 7,615,741   $13,042,693 
                      ============   ============   ==========   ========     ========      ===========   =========== 


                                                      METROPOLITAN FUND                                               
                      ----------------------------------------------------------------------------------              
                         PUTNAM LARGE CAP                                                                             
                          GROWTH CLASS E           PUTNAM INTERNATIONAL          PUTNAM INTERNATIONAL                 
                             PORTFOLIO            STOCK CLASS A PORTFOLIO      STOCK CLASS E PORTFOLIO                
                      -----------------------   ---------------------------   --------------------------              
                                    FOR THE                                                   FOR THE                 
                       FOR THE       PERIOD       FOR THE        FOR THE        FOR THE        PERIOD                 
                         YEAR       JULY 2,         YEAR           YEAR          YEAR         JULY 2,                 
                        ENDED       2001 TO        ENDED          ENDED          ENDED        2001 TO                 
                       DEC. 31,     DEC. 31,      DEC. 31,       DEC. 31,      DEC. 31,       DEC. 31,                
                         2002         2001          2002           2001          2002           2001                  
                      ----------   ----------   ------------   ------------   -----------   ------------              
                                                                                                                      
INCREASE (DECREASE)                                                                                                   
 IN NET ASSETS                                                                                                        
 From operations:                                                                                                     
  Net investment                                                                                                      
   income (loss)..... $  (29,747)  $   (2,547)  $   (253,822)  $  2,272,310   $   (71,765)  $     (4,793)             
  Net (losses)                                                                                                        
   realized gains                                                                                                     
   from security                                                                                                      
   transactions......   (140,171)         502    (19,058,416)      (945,242)     (470,581)            --              
  Change in                                                                                                           
   unrealized                                                                                                         
   appreciation                                                                                                       
   (depreciation) of                                                                                                  
   investments.......   (501,754)     (46,011)     7,925,526    (20,173,366)     (850,580)        30,842              
                      ----------   ----------   ------------   ------------   -----------   ------------              
  Net increase                                                                                                        
   (decrease) in net                                                                                                  
   assets resulting                                                                                                   
   from operations...   (671,672)     (48,056)   (11,386,712)   (18,846,298)   (1,392,926)        26,049              
                      ----------   ----------   ------------   ------------   -----------   ------------              
 From capital                                                                                                         
  transactions:                                                                                                       
  Net premiums.......  2,094,569      816,178      1,929,106      8,926,770     7,350,597      1,472,100              
  Redemptions........    (44,140)      (4,241)    (4,756,232)    (4,432,954)     (230,802)        (1,483)             
                      ----------   ----------   ------------   ------------   -----------   ------------              
  Total net                                                                                                           
   (redemptions)                                                                                                      
   premiums..........  2,050,429      811,937     (2,827,126)     4,493,816     7,119,795      1,470,617              
  Net portfolio                                                                                                       
   transfers.........     12,225           --         65,444     (6,619,884)      174,784             --              
  Other net                                                                                                           
   transfers.........    608,922      271,200     (6,386,963)    87,524,237     6,007,778    (86,527,619)             
                      ----------   ----------   ------------   ------------   -----------   ------------              
  Net (decrease)                                                                                                      
   increase in net                                                                                                    
   assets resulting                                                                                                   
   from capital                                                                                                       
   transactions......  2,671,576    1,083,137     (9,148,645)    85,398,169    13,302,357    (85,057,002)             
                      ----------   ----------   ------------   ------------   -----------   ------------              
NET CHANGE IN NET                                                                                                     
 ASSETS..............  1,999,904    1,035,081    (20,535,357)    66,551,871    11,909,431    (85,030,953)             
NET                                                                                                                   
 ASSETS -- BEGINNING                                                                                                  
 OF PERIOD...........  1,035,081           --     66,551,871             --     2,124,311     87,155,264              
                      ----------   ----------   ------------   ------------   -----------   ------------              
NET ASSETS -- END OF                                                                                                  
 PERIOD.............. $3,034,985   $1,035,081   $ 46,016,514   $ 66,551,871   $14,033,742   $  2,124,311              
                      ==========   ==========   ============   ============   ===========   ============              

See Notes to Financial Statements 
  F-22

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                                                    METROPOLITAN FUND                                                    
-------------------------------------------------------------------------------------------------------------------------

STATE STREET RESEARCH AURORA    STATE STREET RESEARCH AURORA                                      RUSSELL 2000 INDEX     
      CLASS A PORTFOLIO               CLASS E PORTFOLIO           JANUS MID CAP PORTFOLIO          CLASS B PORTFOLIO     
-----------------------------   -----------------------------   ---------------------------   ---------------------------
                  FOR THE                         FOR THE                        FOR THE                       FOR THE   
  FOR THE          PERIOD         FOR THE         PERIOD          FOR THE        PERIOD         FOR THE        PERIOD    
    YEAR          JAN. 22,         YEAR           JULY 2,          YEAR         JAN. 22,         YEAR         JAN. 22,   
   ENDED          2001 TO          ENDED          2001 TO          ENDED         2001 TO         ENDED         2001 TO   
  DEC. 31,        DEC. 31,       DEC. 31,        DEC. 31,        DEC. 31,       DEC. 31,       DEC. 31,       DEC. 31,   
    2002            2001           2002            2001            2002           2001           2002           2001     
------------   --------------   -----------   ---------------   -----------   -------------   -----------   -------------
                                                                                                                         
$  (287,005)    $  (126,689)    $  (276,041)    $  (15,189)     $  (132,892)   $   (64,374)   $   (81,031)   $  (27,240) 
   (474,769)        (16,357)       (123,467)           (26)      (2,210,275)       (16,217)      (306,220)       (4,807) 
 (8,968,116)      1,112,436      (6,905,962)       519,171       (1,079,372)    (1,990,810)    (1,889,237)      208,122  
-----------     -----------     -----------     ----------      -----------    -----------    -----------    ----------  
 (9,729,890)        969,390      (7,305,470)       503,956       (3,422,539)    (2,071,401)    (2,276,488)      176,075  
-----------     -----------     -----------     ----------      -----------    -----------    -----------    ----------  
  2,928,756       7,964,907      21,774,175      4,474,458        2,500,593      6,619,403      3,411,571     2,702,657  
 (2,739,649)       (702,431)       (906,208)       (13,344)      (1,269,476)      (236,933)      (619,764)     (187,091) 
-----------     -----------     -----------     ----------      -----------    -----------    -----------    ----------  
    189,107       7,262,476      20,867,967      4,461,114        1,231,117      6,382,470      2,791,807     2,515,566  
    263,272      17,559,749         743,877             --          155,190      3,860,153        199,942     1,831,276  
 10,277,044       3,060,166      16,746,546      1,669,863          (54,411)     1,725,062      4,653,154     1,514,394  
-----------     -----------     -----------     ----------      -----------    -----------    -----------    ----------  
 10,729,423      27,882,391      38,358,390      6,130,977        1,331,896     11,967,685      7,644,903     5,861,236  
-----------     -----------     -----------     ----------      -----------    -----------    -----------    ----------  
    999,533      28,851,781      31,052,920      6,634,933       (2,090,643)     9,896,284      5,368,415     6,037,311  
 28,851,781              --       6,634,933             --        9,896,284             --      6,037,311            --  
-----------     -----------     -----------     ----------      -----------    -----------    -----------    ----------  
$29,851,314     $28,851,781     $37,687,853     $6,634,933      $ 7,805,641    $ 9,896,284    $11,405,726    $6,037,311  
===========     ===========     ===========     ==========      ===========    ===========    ===========    ==========  


                  METROPOLITAN FUND                                                                                      
------------------------------------------------------                                                                   
                              FRANKLIN TEMPLETON SMALL                                                                   
    METLIFE STOCK INDEX          CAP GROWTH CLASS B                                                                      
     CLASS B PORTFOLIO               PORTFOLIO                                                                           
---------------------------   ------------------------                                                                   
                 FOR THE                     FOR THE                                                                     
  FOR THE        PERIOD         FOR THE       PERIOD                                                                     
   YEAR         JAN. 22,         YEAR         MAY 1,                                                                     
   ENDED         2001 TO         ENDED       2001 TO                                                                     
 DEC. 31,       DEC. 31,       DEC. 31,      DEC. 31,                                                                    
   2002           2001           2002          2001                                                                      
-----------   -------------   -----------   ----------                                                                   
                                                                                                                         
$     4,114    $   (19,124)   $   (96,383)  $  (13,833)                                                                  
 (1,012,793)        (4,563)      (384,505)         (24)                                                                  
 (5,309,773)      (412,123)    (1,813,635)     119,547                                                                   
-----------    -----------    -----------   ----------                                                                   
 (6,318,452)      (435,810)    (2,294,523)     105,690                                                                   
-----------    -----------    -----------   ----------                                                                   
 12,631,071      6,791,560      4,121,450    1,698,902                                                                   
 (1,798,360)      (423,592)      (339,533)     (58,248)                                                                  
-----------    -----------    -----------   ----------                                                                   
 10,832,711      6,367,968      3,781,917    1,640,654                                                                   
    428,489      5,537,510        298,896    1,657,592                                                                   
 10,770,029      2,584,969      2,866,801      557,536                                                                   
-----------    -----------    -----------   ----------                                                                   
 22,031,229     14,490,447      6,947,614    3,855,782                                                                   
-----------    -----------    -----------   ----------                                                                   
 15,712,777     14,054,637      4,653,091    3,961,472                                                                   
 14,054,637             --      3,961,472           --                                                                   
-----------    -----------    -----------   ----------                                                                   
$29,767,414    $14,054,637    $ 8,614,563   $3,961,472                                                                   
===========    ===========    ===========   ==========                                                                   

See Notes to Financial Statements 
  F-23

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NEW ENGLAND VARIABLE ANNUITY SEPARATE ACCOUNT                                   
 STATEMENT OF CHANGES IN NET ASSETS -- FOR THE YEARS ENDED DECEMBER 31, 2002 AND
2001                                                                            

                                                        [Enlarge/Download Table]

                                                                    METROPOLITAN FUND                                         
                                             ----------------------------------------------------------------                 
                                                                             HARRIS           STATE STREET                    
                                                 NEUBERGER BERMAN         OAKMARK LARGE      RESEARCH LARGE                   
                                                 PARTNERS MID CAP           CAP VALUE           CAP VALUE                     
                                             VALUE CLASS B PORTFOLIO    CLASS E PORTFOLIO   CLASS E PORTFOLIO                 
                                             ------------------------   -----------------   -----------------                 
                                                            FOR THE                                                           
                                              FOR THE       PERIOD                                                            
                                                YEAR        MAY 1,       FOR THE PERIOD      FOR THE PERIOD                   
                                               ENDED         2001          MAY 1, 2002         MAY 1, 2002                    
                                              DEC. 31,    TO DEC. 31,      TO DEC. 31,         TO DEC. 31,                    
                                                2002         2001             2002                2002                        
                                             ----------   -----------   -----------------   -----------------                 
                                                                                                                              
INCREASE (DECREASE) IN NET ASSETS                                                                                             
From operations:                                                                                                              
 Net investment income (loss)............... $ (61,129)   $   (8,640)       $   (4,782)         $      611                    
 Net (losses) realized gains from security                                                                                    
  transactions..............................  (119,676)         (587)          (89,908)            (18,706)                   
 Change in unrealized appreciation                                                                                            
  (depreciation) of investments.............  (504,610)       41,230           (99,476)            (31,118)                   
                                             ----------   ----------        ----------          ----------                    
  Net increase (decrease) in net assets                                                                                       
   resulting from operations................  (685,415)       32,003          (194,166)            (49,213)                   
                                             ----------   ----------        ----------          ----------                    
From capital transactions:                                                                                                    
 Net premiums............................... 2,598,101     1,285,761         3,165,721           1,103,847                    
 Redemptions................................  (818,494)       (6,337)          (56,318)            (12,562)                   
                                             ----------   ----------        ----------          ----------                    
 Total net (redemptions) premiums........... 1,779,607     1,279,424         3,109,403           1,091,285                    
 Net portfolio transfers....................   (20,135)      403,290           244,571               3,678                    
 Other net transfers........................ 5,303,398       326,797         3,781,683             665,911                    
                                             ----------   ----------        ----------          ----------                    
  Net (decrease) increase in net assets                                                                                       
   resulting from capital transactions...... 7,062,870     2,009,511         7,135,657           1,760,874                    
                                             ----------   ----------        ----------          ----------                    
NET CHANGE IN NET ASSETS.................... 6,377,455     2,041,514         6,941,491           1,711,661                    
NET ASSETS -- BEGINNING OF PERIOD........... 2,041,514            --                --                  --                    
                                             ----------   ----------        ----------          ----------                    
NET ASSETS -- END OF PERIOD................. $8,418,969   $2,041,514        $6,941,491          $1,711,661                    
                                             ==========   ==========        ==========          ==========                    


                                                                             METROPOLITAN FUND                                
                                             ---------------------------------------------------------------------------------

                                                  LEHMAN BROTHERS                                                             
                                               AGGREGATE BOND INDEX         MORGAN STANLEY EAFE        METLIFE MID CAP STOCK  
                                                 CLASS B PORTFOLIO        INDEX CLASS B PORTFOLIO     INDEX CLASS B PORTFOLIO 
                                             -------------------------   -------------------------   -------------------------
                                                             FOR THE                     FOR THE                     FOR THE  
                                               FOR THE       PERIOD        FOR THE       PERIOD        FOR THE       PERIOD   
                                                YEAR        JAN. 22,        YEAR        JAN. 22,        YEAR        JAN. 22,  
                                                ENDED         2001          ENDED         2001          ENDED         2001    
                                              DEC. 31,     TO DEC. 31,    DEC. 31,     TO DEC. 31,    DEC. 31,     TO DEC. 31,
                                                2002          2001          2002          2001          2002          2001    
                                             -----------   -----------   -----------   -----------   -----------   -----------
                                                                                                                              
INCREASE (DECREASE) IN NET ASSETS                                                                                             
From operations:                                                                                                              
 Net investment income (loss)............... $   207,340   $   (21,487)  $  (62,508)   $  (14,972)   $   (93,573)  $  (17,411)
 Net (losses) realized gains from security                                                                                    
  transactions..............................     155,377         1,320     (493,431)       (4,506)      (319,323)      (2,078)
 Change in unrealized appreciation                                                                                            
  (depreciation) of investments.............   1,684,877       229,132     (535,795)     (249,549)    (1,387,396)     146,363 
                                             -----------   -----------   -----------   ----------    -----------   ---------- 
  Net increase (decrease) in net assets                                                                                       
   resulting from operations................   2,047,594       208,965   (1,091,734)     (269,027)    (1,800,292)     126,874 
                                             -----------   -----------   -----------   ----------    -----------   ---------- 
From capital transactions:                                                                                                    
 Net premiums...............................   7,474,855     6,540,141    2,446,481     1,532,001      3,846,379    1,896,915 
 Redemptions................................  (2,011,627)     (318,714)    (240,895)      (32,292)      (397,075)    (112,251)
                                             -----------   -----------   -----------   ----------    -----------   ---------- 
 Total net (redemptions) premiums...........   5,463,228     6,221,427    2,205,586     1,499,709      3,449,304    1,784,664 
 Net portfolio transfers....................    (308,028)    4,904,158      136,715     1,204,284        215,522    1,353,944 
 Other net transfers........................  17,732,936     2,621,449    3,833,640     1,112,246      4,479,437    1,060,429 
                                             -----------   -----------   -----------   ----------    -----------   ---------- 
  Net (decrease) increase in net assets                                                                                       
   resulting from capital transactions......  22,888,136    13,747,034    6,175,941     3,816,239      8,144,263    4,199,037 
                                             -----------   -----------   -----------   ----------    -----------   ---------- 
NET CHANGE IN NET ASSETS....................  24,935,730    13,955,999    5,084,207     3,547,212      6,343,971    4,325,911 
NET ASSETS -- BEGINNING OF PERIOD...........  13,955,999            --    3,547,212            --      4,325,911           -- 
                                             -----------   -----------   -----------   ----------    -----------   ---------- 
NET ASSETS -- END OF PERIOD................. $38,891,729   $13,955,999   $8,631,419    $3,547,212    $10,669,882   $4,325,911 
                                             ===========   ===========   ===========   ==========    ===========   ========== 


                                                 METROPOLITAN FUND                                                            
                                             -------------------------                                                        

                                               JANUS GROWTH CLASS B                                                           
                                                     PORTFOLIO                                                                
                                             -------------------------                                                        
                                                             FOR THE                                                          
                                               FOR THE       PERIOD                                                           
                                                YEAR         MAY 1,                                                           
                                                ENDED         2001                                                            
                                              DEC. 31,     TO DEC. 31,                                                        
                                                2002          2001                                                            
                                             -----------   -----------                                                        
                                                                                                                              
INCREASE (DECREASE) IN NET ASSETS                                                                                             
From operations:                                                                                                              
 Net investment income (loss)............... $  (59,709)   $   (9,079)                                                        
 Net (losses) realized gains from security                                                                                    
  transactions..............................   (348,469)         (885)                                                        
 Change in unrealized appreciation                                                                                            
  (depreciation) of investments............. (1,078,337)      (58,367)                                                        
                                             -----------   ----------                                                         
  Net increase (decrease) in net assets                                                                                       
   resulting from operations................ (1,486,515)      (68,331)                                                        
                                             -----------   ----------                                                         
From capital transactions:                                                                                                    
 Net premiums...............................  2,520,562     1,636,614                                                         
 Redemptions................................   (209,072)      (11,605)                                                        
                                             -----------   ----------                                                         
 Total net (redemptions) premiums...........  2,311,490     1,625,009                                                         
 Net portfolio transfers....................    166,912       783,260                                                         
 Other net transfers........................  1,429,729       464,163                                                         
                                             -----------   ----------                                                         
  Net (decrease) increase in net assets                                                                                       
   resulting from capital transactions......  3,908,131     2,872,432                                                         
                                             -----------   ----------                                                         
NET CHANGE IN NET ASSETS....................  2,421,616     2,804,101                                                         
NET ASSETS -- BEGINNING OF PERIOD...........  2,804,101            --                                                         
                                             -----------   ----------                                                         
NET ASSETS -- END OF PERIOD................. $5,225,717    $2,804,101                                                         
                                             ===========   ==========                                                         

See Notes to Financial Statements 

  F-24

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   METROPOLITAN FUND                                      MET INVESTORS FUND                               
------------------------   --------------------------------------------------------------------------------

 STATE STREET RESEARCH          MFS RESEARCH                                                               
INVESTMENT TRUST CLASS B    INTERNATIONAL CLASS B       MFS MID CAP GROWTH      PIMCO TOTAL RETURN CLASS B 
       PORTFOLIO                  PORTFOLIO             CLASS B PORTFOLIO                PORTFOLIO         
------------------------   -----------------------   ------------------------   ---------------------------
               FOR THE                   FOR THE                    FOR THE                      FOR THE   
                PERIOD                    PERIOD                     PERIOD                       PERIOD   
  FOR THE       MAY 1,      FOR THE       MAY 1,       FOR THE       MAY 1,       FOR THE         MAY 1,   
YEAR ENDED     2001 TO     YEAR ENDED    2001 TO     YEAR ENDED     2001 TO      YEAR ENDED      2001 TO   
 DEC. 31,      DEC. 31,     DEC. 31,     DEC. 31,     DEC. 31,      DEC. 31,      DEC. 31,       DEC. 31,  
   2002          2001         2002         2001         2002          2001          2002           2001    
-----------   ----------   ----------   ----------   -----------   ----------   ------------   ------------
                                                                                                            
$  (49,271)   $   (7,215)  $ (56,130)   $   (4,793)  $  (27,932)   $  (10,832)  $  (727,208)   $    78,526 
  (232,471)      (13,933)    (87,094)       (2,145)    (562,022)        3,143       188,159            123 
(1,200,210)       41,395    (512,812)      (13,662)  (1,869,396)       95,759     4,746,004       (180,844)
-----------   ----------   ----------   ----------   -----------   ----------   -----------    ----------- 
(1,481,952)       20,247    (656,036)      (20,600)  (2,459,350)       88,070     4,206,955       (102,195)
-----------   ----------   ----------   ----------   -----------   ----------   -----------    ----------- 
 2,863,603     1,691,016   3,292,231       793,747    2,136,309     1,351,319    29,991,434      8,115,356 
  (472,228)      (18,351)   (219,134)       (5,542)    (236,482)      (17,877)   (2,844,080)      (103,077)
-----------   ----------   ----------   ----------   -----------   ----------   -----------    ----------- 
 2,391,375     1,672,665   3,073,097       788,205    1,899,827     1,333,442    27,147,354      8,012,279 
   218,294       390,111     132,456       478,070      183,079     1,135,318    (1,997,821)     4,578,356 
 2,518,374       557,449   3,140,106       413,079    3,286,506       512,435    51,437,501      3,848,310 
-----------   ----------   ----------   ----------   -----------   ----------   -----------    ----------- 
 5,128,043     2,620,225   6,345,659     1,679,354    5,369,412     2,981,195    76,587,034     16,438,945 
-----------   ----------   ----------   ----------   -----------   ----------   -----------    ----------- 
 3,646,091     2,640,472   5,689,623     1,658,754    2,910,062     3,069,265    80,793,989     16,336,750 
 2,640,472            --   1,658,754            --    3,069,265            --    16,336,750             -- 
-----------   ----------   ----------   ----------   -----------   ----------   -----------    ----------- 
$6,286,563    $2,640,472   $7,348,377   $1,658,754   $5,979,327    $3,069,265   $97,130,739    $16,336,750 
===========   ==========   ==========   ==========   ===========   ==========   ===========    =========== 


                          MET INVESTORS FUND                                                               
 --------------------------------------------------------------------                                      
                                                        MET/AIM MID                                        
                                LORD ABBETT BOND          CAP CORE                                         
 PIMCO INNOVATION CLASS B      DEBENTURE CLASS B       EQUITY CLASS B                                      
        PORTFOLIO                  PORTFOLIO             PORTFOLIO                                         
 ------------------------   ------------------------   --------------                                      
                FOR THE                    FOR THE        FOR THE                                          
                 PERIOD                     PERIOD         PERIOD                                          
   FOR THE       MAY 1,       FOR THE       MAY 1,         MAY 1,                                          
 YEAR ENDED     2001 TO     YEAR ENDED     2001 TO        2002 TO                                          
  DEC. 31,      DEC. 31,     DEC. 31,      DEC. 31,       DEC. 31,                                         
    2002          2001         2002          2001           2002                                           
 -----------   ----------   -----------   ----------   --------------                                      
                                                                                                           
 $  (39,428)   $  (10,550)  $   410,960   $   22,111     $  (17,351)                                       
 (1,376,525)       (2,455)     (108,646)          95        (14,987)                                       
   (643,985)     (255,664)     (270,273)       1,744        (34,595)                                       
 -----------   ----------   -----------   ----------     ----------                                        
 (2,059,938)     (268,669)       32,041       23,950        (66,933)                                       
 -----------   ----------   -----------   ----------     ----------                                        
  1,546,416     1,733,998     4,467,642    1,506,893        945,870                                        
   (684,009)       (7,281)     (393,703)     (23,582)        (9,175)                                       
 -----------   ----------   -----------   ----------     ----------                                        
    862,407     1,726,717     4,073,939    1,483,311        936,695                                        
    300,060       248,324       (71,883)     629,658         21,476                                        
  1,287,870       707,226     7,429,341    1,099,231      1,085,253                                        
 -----------   ----------   -----------   ----------     ----------                                        
  2,450,337     2,682,267    11,431,397    3,212,200      2,043,424                                        
 -----------   ----------   -----------   ----------     ----------                                        
    390,399     2,413,598    11,463,438    3,236,150      1,976,491                                        
  2,413,598            --     3,236,150           --             --                                        
 -----------   ----------   -----------   ----------     ----------                                        
 $2,803,997    $2,413,598   $14,699,588   $3,236,150     $1,976,491                                        
 ===========   ==========   ===========   ==========     ==========                                        

See Notes to Financial Statements 
  F-25

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NEW ENGLAND VARIABLE ANNUITY SEPARATE ACCOUNT                                   
 STATEMENT OF CHANGES IN NET ASSETS -- FOR THE YEARS ENDED DECEMBER 31, 2002 AND
2001                                                                            

                                                        [Enlarge/Download Table]

                                               MET INVESTORS FUND                      AMERICAN FUND        
                                    ----------------------------------------   -----------------------------
                                        MET/AIM        STATE STREET RESEARCH                                
                                    SMALL CAP GROWTH       CONCENTRATED                                     
                                        CLASS B            INTERNATIONAL           AMERICAN FUNDS GROWTH    
                                       PORTFOLIO         CLASS E PORTFOLIO           CLASS B PORTFOLIO      
                                    ----------------   ---------------------   -----------------------------
                                     FOR THE PERIOD       FOR THE PERIOD       FOR THE YEAR   FOR THE PERIOD
                                      MAY 1, 2002           MAY 1, 2002           ENDED        MAY 1, 2001  
                                      TO DEC. 31,           TO DEC. 31,          DEC. 31,      TO DEC. 31,  
                                          2002                 2002                2002            2001     
                                    ----------------   ---------------------   ------------   --------------
                                                                                                            
INCREASE (DECREASE) IN NET ASSETS                                                                           
From operations:                                                                                            
Net investment income (loss).......    $   (8,344)           $ (1,531)         $   (766,084)   $   567,230  
Net (losses) realized gains from                                                                            
 security transactions.............       (23,726)            (13,705)           (2,113,222)       (10,238) 
Change in unrealized appreciation                                                                           
 (depreciation) of investments.....      (104,475)             (1,565)          (10,249,528)      (336,371) 
                                       ----------            --------          ------------    -----------  
Net increase (decrease) in net                                                                              
 assets resulting from                                                                                      
 operations........................      (136,545)            (16,801)          (13,128,834)       220,621  
                                       ----------            --------          ------------    -----------  
From capital transactions:                                                                                  
Net premiums.......................       982,891             466,473            31,210,218     10,917,445  
Redemptions........................       (38,675)             (2,721)           (2,167,859)      (247,615) 
                                       ----------            --------          ------------    -----------  
Total net (redemptions) premiums...       944,216             463,752            29,042,359     10,669,830  
Net portfolio transfers............         4,556              16,819             1,653,498      8,434,000  
Other net transfers................     1,095,841             267,786            31,110,728      4,029,098  
                                       ----------            --------          ------------    -----------  
Net (decrease) increase in net                                                                              
 assets resulting from capital                                                                              
 transactions......................     2,044,613             748,357            61,806,585     23,132,928  
                                       ----------            --------          ------------    -----------  
NET CHANGE IN NET ASSETS...........     1,908,068             731,556            48,677,751     23,353,549  
NET ASSETS -- BEGINNING OF                                                                                  
 PERIOD............................            --                  --            23,353,549             --  
                                       ----------            --------          ------------    -----------  
NET ASSETS -- END OF PERIOD........    $1,908,068            $731,556          $ 72,031,300    $23,353,549  
                                       ==========            ========          ============    ===========  


                                                            AMERICAN FUND                                   
                                    -------------------------------------------------------------           

                                       AMERICAN FUNDS GROWTH-           AMERICAN FUNDS GLOBAL               
                                           INCOME CLASS B                 SMALL CAP CLASS B                 
                                              PORTFOLIO                       PORTFOLIO                     
                                    -----------------------------   -----------------------------           
                                    FOR THE YEAR   FOR THE PERIOD   FOR THE YEAR   FOR THE PERIOD           
                                       ENDED        MAY 1, 2001        ENDED        MAY 1, 2001             
                                      DEC. 31,      TO DEC. 31,       DEC. 31,      TO DEC. 31,             
                                        2002            2001            2002            2001                
                                    ------------   --------------   ------------   --------------           
                                                                                                            
INCREASE (DECREASE) IN NET ASSETS                                                                           
From operations:                                                                                            
Net investment income (loss)....... $   (104,294)   $   203,296     $   (75,490)     $    2,457             
Net (losses) realized gains from                                                                            
 security transactions.............   (1,218,017)         2,631         (62,855)         (3,195)            
Change in unrealized appreciation                                                                           
 (depreciation) of investments.....   (9,467,301)       187,705      (2,008,930)        284,057             
                                    ------------    -----------     -----------      ----------             
Net increase (decrease) in net                                                                              
 assets resulting from                                                                                      
 operations........................  (10,789,612)       393,632      (2,147,275)        283,319             
                                    ------------    -----------     -----------      ----------             
From capital transactions:                                                                                  
Net premiums.......................   26,843,556      9,964,324       5,560,204       1,370,184             
Redemptions........................   (3,240,594)      (485,551)       (288,711)         (9,749)            
                                    ------------    -----------     -----------      ----------             
Total net (redemptions) premiums...   23,602,962      9,478,773       5,271,493       1,360,435             
Net portfolio transfers............      771,004     10,553,976          89,926       1,068,847             
Other net transfers................   32,266,332      3,928,616       5,390,926         724,824             
                                    ------------    -----------     -----------      ----------             
Net (decrease) increase in net                                                                              
 assets resulting from capital                                                                              
 transactions......................   56,640,298     23,961,365      10,752,345       3,154,106             
                                    ------------    -----------     -----------      ----------             
NET CHANGE IN NET ASSETS...........   45,850,686     24,354,997       8,605,070       3,437,425             
NET ASSETS -- BEGINNING OF                                                                                  
 PERIOD............................   24,354,997             --       3,437,425              --             
                                    ------------    -----------     -----------      ----------             
NET ASSETS -- END OF PERIOD........ $ 70,205,683    $24,354,997     $12,042,495      $3,437,425             
                                    ============    ===========     ===========      ==========             

See Notes to Financial Statements 

  F-26

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NEW ENGLAND VARIABLE ANNUITY SEPARATE ACCOUNT                                   
NOTES TO FINANCIAL STATEMENTS -- DECEMBER 31, 2002                            

1. BUSINESS.  New England Variable Annuity Separate Account (the "Separate      
Account"), a separate account of New England Life Insurance Company ("NELICO"), 
was established by NELICO's Board of Directors on July 1, 1994 to support       
NELICO'S operations with respect to certain variable annuity contracts          
("Contracts") in accordance with the regulations of the Delaware Insurance      
Department and is now operating in accordance with the regulations of the       
Commonwealth of Massachusetts Division of Insurance. NELICO is an indirect      
wholly owned subsidiary of Metropolitan Life Insurance Company ("Metropolitan   
Life"). The Separate Account is registered as a unit investment trust under the 
Investment Company Act of 1940. The Separate Account presently consists of      
thirty-nine sub-accounts that support three variable annuity contracts: American
Growth Series ("AGS-I"), American Growth Series ("AGS"), and American Forerunner
Series ("AFS").                                                                 

The Separate Account is divided into sub-accounts invested in shares of the     
corresponding portfolios of the New England Zenith Fund (the "Zenith Fund"), the
Metropolitan Series Fund, Inc. (the "Metropolitan Fund"), the Met Investors     
Series Trust (the "Met Investors Fund"), and the American Funds Insurance Series
(the "American Fund"), collectively, (the "Funds"). For convenience, the        
portfolios, series or funds are referred to as "portfolios."                    

The assets of the Separate Account are registered in the name of NELICO. Under  
applicable insurance law, the assets and liabilities of the Separate Account are
clearly identified and distinguished from NELICO's other assets and liabilities.
The portion of the Separate Accounts' assets applicable to the variable annuity 
contracts is not chargeable with liabilities arising out of any other business  
NELICO may conduct.                                                             

ZENITH FUND:                                                                    
State Street Research Bond Income Portfolio                                 
State Street Research Money Market Portfolio                                
Harris Oakmark Focused Value Portfolio                                      
FI Structured Equity Portfolio                                              
Loomis Sayles Small Cap Portfolio                                           
Salomon Brothers U.S. Government Portfolio                                  
Salomon Brothers Strategic Bond Opportunities Portfolio                     
Loomis Sayles Balanced Portfolio                                            
Alger Equity Growth Portfolio                                               
Davis Venture Value Portfolio                                               
MFS Investors Trust Portfolio                                               
MFS Research Managers Portfolio                                             
FI Mid Cap Opportunities Portfolio (c)                                      

METROPOLITAN FUND:                                                              
Putnam Large Cap Growth Portfolio                                           
Putnam International Stock Portfolio                                        
State Street Research Aurora Portfolio (a)                                  
Janus Mid Cap Portfolio (a)                                                 
Russell 2000 Index Portfolio (a)                                            
MetLife Stock Index Portfolio (a)                                           
Franklin Templeton Small Cap Growth Portfolio (b)                           
Neuberger Berman Partners Mid Cap Value Portfolio (b)                       

METROPOLITAN FUND (CONTINUED):                                                  
Harris Oakmark Large Cap Value Portfolio (c)                                
State Street Research Large Cap Value Portfolio (c)                         
Lehman Brothers Aggregate Bond Index Portfolio (a)                          
Morgan Stanley EAFE Index Portfolio (a)                                     
MetLife Mid Cap Stock Index Portfolio (a)                                   
Janus Growth Portfolio (b)                                                  
State Street Research Investment Trust Portfolio (b)                        

MET INVESTORS FUND:                                                             
MFS Research International Portfolio (b)                                    
MFS Mid Cap Growth Portfolio (b)                                            
PIMCO Total Return Portfolio (b)                                            
PIMCO Innovation Portfolio (b)                                              
Lord Abbett Bond Debenture Portfolio (b)                                    
Met/AIM Mid Cap Core Equity Portfolio (c)                                   
Met/AIM Small Cap Growth Portfolio (c)                                      
State Street Research Concentrated International Portfolio (c)              

AMERICAN FUND:                                                                  
American Funds Growth Portfolio (b)                                         
American Funds Growth-Income Portfolio (b)                                  
American Funds Global Small Cap Portfolio (b)                               

(a) On January 22, 2001, operations commenced for seven new sub-accounts added  
to the Separate Account on that date: State Street Research Aurora      
 Portfolio, Janus Mid Cap Portfolio, Russell 2000 Index Portfolio, MetLife
Stock Index Portfolio, Lehman Brothers Aggregate Bond Index Portfolio,  
Morgan Stanley EAFE Index Portfolio and MetLife Mid Cap Stock Index     
Portfolio.                                                              

(b) On May 1, 2001, operations commenced for twelve new sub-accounts added to   
the Separate Account on that date: Franklin Templeton Small Cap Growth  
  Portfolio, Neuberger Berman Partners Mid Cap Value Portfolio, Janus Growth
 Portfolio, State Street Research Investment Trust Portfolio, MFS Research
 International Portfolio, MFS Mid Cap Growth Portfolio, PIMCO Total Return
    Portfolio, PIMCO Innovation Portfolio, Lord Abbett Bond Debenture Portfolio,
   American Funds Growth Portfolio, American Funds Growth-Income Portfolio and
American Funds Global Small Cap Portfolio.                              

(c) On May 1, 2002, operations commenced for the six new sub-accounts added to  
the Separate Account on that date: FI Mid Cap Opportunities Portfolio,  
 Harris Oakmark Large Cap Value Portfolio, State Street Research Large Cap
 Value Portfolio, Met/AIM Mid Cap Core Equity Portfolio, Met/AIM Small Cap
Growth Portfolio and State Street Research Concentrated International   
Portfolio.                                                              

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NEW ENGLAND VARIABLE ANNUITY SEPARATE ACCOUNT                                   
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)                                  

2. SIGNIFICANT ACCOUNTING POLICIES.  The financial statements included herein   
have been prepared in accordance with accounting principles generally accepted  
in the United States of America for variable annuity separate accounts          
registered as unit investment trusts.                                           

A. VALUATION OF INVESTMENTS.  Investments are made in the portfolios of the     
Funds and are valued at the reported net asset values of these portfolios. The  
investments of the Funds are valued at fair value. Money market fund investments
are valued utilizing the amortized cost method of valuation.                    

B. SECURITY TRANSACTIONS.  Purchases and sales are recorded on the trade date   
basis. Realized gains and losses on the sales of investments are computed on the
basis of the identified cost of the investment sold. Income from dividends, and 
gains from realized gain distributions, are recorded on the ex-distribution     
date.                                                                           

C. FEDERAL INCOME TAXES.  The operations of the Separate Account are included in
the Federal income tax return of NELICO, which is taxed as a life insurance     
company under the provisions of the Internal Revenue Code ("IRC"). Under the    
current provisions of the IRC, NELICO does not expect to incur Federal income   
taxes on the earnings of the Separate Account to the extent the earnings are    
credited under the contracts. Based on this, no charge is being made currently  
to the Separate Account for Federal income taxes. NELICO will review            
periodically the status of this policy in the event of changes in the tax law. A
charge may be made in future years for any Federal income taxes that would be   
attributed to the contracts.                                                    

D. ANNUITY RESERVES.  For contracts payable on or after January 1, 1998, annuity
reserves are computed according to the Annuity 2000 Mortality Tables. The       
assumed interest rate may be 0%, 3.5% or 5% as elected by the annuitant and as  
regulated by the laws of the respective states. Adjustments to annuity reserves 
are reimbursed to or from NELICO.                                               

E. USE OF ESTIMATES.  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 amounts       
reported herein. Actual results could differ from these estimates.              

F. PURCHASE PAYMENTS.  Purchase payments received by NELICO are credited as     
accumulation units as of the end of the valuation period in which received as   
provided in the prospectus.                                                     

G. RECLASSIFICATION.  Certain reclassifications have been made to the financial 
statements for the prior periods to conform to current year presentation.       

H. PORTFOLIO AND OTHER TRANSFERS.  Transfers among the sub-accounts are         
presented under the caption net portfolio transfers. Benefit payments and       
miscellaneous gains and losses are presented under the caption net other        
transfers.                                                                      

3. EXPENSES.  Although variable annuity payments differ according to the        
investment performance of the Funds, they are not affected by mortality or      
expense experience because NELICO assumes the mortality and expense risks under 
the contracts. The mortality risk assumed by NELICO has two elements, a life    
annuity mortality risk and, for deferred annuity contracts, a minimum death     
refund risk. The life annuity mortality risk results from a provision in the    
contract in which NELICO agrees to make annuity payments regardless of how long 
a particular annuitant or other payee lives and how long all annuitants or other
payees as a class live if payment options involving life contingencies are      
chosen. Those annuity payments are determined in accordance with annuity        
purchase rate provisions established at the time the Contracts are issued. Under
deferred annuity contracts, NELICO also assumes a minimum death refund risk by  
providing that there will be payable, on the death of the annuitant during the  
accumulation period, an amount equal to the greater of (1) a guaranteed amount  
equal to the aggregate purchase payments made, without interest, reduced        
proportionately by any partial surrender, and (2) the value of the contract as  
of the death valuation date. The guaranteed amount in (1) above is recalculated 
at specific contract anniversaries to determine whether a higher (but never a   
lower) guarantee will apply, based on the contract value at the time of         
recalculation. Certain of the Contracts offer optional death benefits that      
provide enhanced guaranteed death benefit amounts. Death proceeds are reduced by
any outstanding contract loan and, in certain states, by a premium tax charge.  
The expense risk assumed by NELICO is the risk that the deductions for sales and
administrative expenses provided for in the variable annuity contract may prove 
to be insufficient to cover the cost of those items.                            

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NEW ENGLAND VARIABLE ANNUITY SEPARATE ACCOUNT                                   
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)                                  

NELICO charges the Separate Account for the mortality and expense risk NELICO   
assumes under the AGS-I and AGS variable annuity contracts. Currently, the      
charges are made daily at an annual rate of 1.30% to 1.55% of the Separate      
Account assets attributable to the AGS individual variable annuity contracts and
1.25% to 1.50% of the Separate Account assets attributable to the AGS-I         
individual variable annuity contracts, depending on the sub-accounts selected.  
NELICO charges the Separate Account an Asset-Based Insurance Charge for the AFS 
variable annuity contracts. The charges are made daily at an annual rate of     
1.15% to 2.10% (1.15% to 2.20% for contracts offered as of and after May 1,     
2003) of the Separate Account assets attributable to the AFS individual variable
annuity contracts, depending on the class of contract, sub-account selected, and
the death benefit option selected. NELICO also imposes an administration asset  
charge at an annual rate of 0.10% of the Separate Account assets attributable to
AGS-I and AGS as well as an annual administration contract charge of $30 per    
contract against the contract value in the Separate Account for the AGS-I, AGS  
(though not to exceed 2% of the total AGS-I or AGS contract value) and AFS      
Contracts. The $30 administration charge is waived on AGS-I and AGS contracts if
the contract value is at least $50,000 or if net deposits made during the year  
exceed $1,000 and the contract value is at least $25,000. The $30 administration
charge is waived on AFS contracts if the contract value is at least $50,000. A  
premium tax charge applies to the Contracts in certain states.                  

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NEW ENGLAND VARIABLE ANNUITY SEPARATE ACCOUNT                                   
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)                                  

4. PURCHASES AND SALES OF INVESTMENTS.  The cost of purchases and proceeds from 
sales of investments for the year ended December 31, 2002 were as follows:      

                                                                [Download Table]

                                                             PURCHASES     SALES  
                                                             ---------    --------
                                                                (IN THOUSANDS)    
                                                                                  
ZENITH FUND:                                                                      
  State Street Research Bond Income Portfolio............... $ 56,225     $ 18,967
  State Street Research Money Market Portfolio..............  121,916       86,798
  Harris Oakmark Focused Value Portfolio....................   69,679       17,903
  FI Structured Equity Portfolio............................    5,486       32,395
  Loomis Sayles Small Cap Portfolio.........................   10,616       27,486
  Salomon Brothers U.S. Government Portfolio................   55,088        7,295
  Salomon Brothers Strategic Bond Opportunities Portfolio...   23,224       11,542
  Loomis Sayles Balanced Portfolio..........................   12,756       18,525
  Alger Equity Growth Portfolio.............................   16,883       55,514
  Davis Venture Value Portfolio.............................   47,272       50,630
  MFS Investors Trust Portfolio.............................    3,731        3,094
  MFS Research Managers Portfolio...........................    2,353        5,997
  FI Mid Cap Opportunities Portfolio........................      956          147
METROPOLITAN FUND:                                                                
  Putnam Large Cap Growth Portfolio.........................    4,458        3,568
  Putnam International Stock Portfolio......................   43,928       40,156
  State Street Research Aurora Portfolio....................   55,206        6,658
  Janus Mid Cap Portfolio...................................    4,711        3,522
  Russell 2000 Index Portfolio..............................    9,447        1,883
  MetLife Stock Index Portfolio.............................   25,318        3,105
  Franklin Templeton Small Cap Growth Portfolio.............    8,190        1,350
  Neuberger Berman Partners Mid Cap Value Portfolio.........    8,440        1,436
  Harris Oakmark Large Cap Value Portfolio..................    7,763          629
  State Street Research Large Cap Value Portfolio...........    1,832           70
  Lehman Brothers Aggregate Bond Index Portfolio............   26,191        3,079
  Morgan Stanley EAFE Index Portfolio.......................    8,572        2,459
  MetLife Mid Cap Stock Index Portfolio.....................   10,461        2,381
  Janus Growth Portfolio....................................    4,644          796
  State Street Research Investment Trust Portfolio..........    6,047          962
MET INVESTORS FUND:                                                               
  MFS Research International Portfolio......................    7,027          702
  MFS Mid Cap Growth Portfolio..............................    6,253          924
  PIMCO Total Return Portfolio..............................   79,587        2,999
  PIMCO Innovation Portfolio................................    3,849        1,438
  Lord Abbett Bond Debenture Portfolio......................   12,813          783
  Met/AIM Mid Cap Core Equity Portfolio.....................    2,255          227
  Met/AIM Small Cap Growth Portfolio........................    2,152          115
  State Street Research Concentrated International                                
    Portfolio...............................................      847           99
AMERICAN FUND:                                                                    
  American Funds Growth Portfolio...........................   65,050        3,993
  American Funds Growth-Income Portfolio....................   60,597        4,076
  American Funds Global Small Cap Portfolio.................   11,843        1,218
                                                             --------     --------
    Total................................................... $903,666     $424,921
                                                             ========     ========

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NEW ENGLAND VARIABLE ANNUITY SEPARATE ACCOUNT                                   
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)                                  

5. CHANGES IN OUTSTANDING UNITS.  The changes in units outstanding for the years
ended December 31, 2002 and 2001 were as follows:                               

                                                        [Enlarge/Download Table]

                                                                        ZENITH FUND                                         
                               ---------------------------------------------------------------------------------------------
                               STATE STREET      STATE STREET                                                               
                                 RESEARCH          RESEARCH        HARRIS OAKMARK                             LOOMIS SAYLES 
                               BOND INCOME       MONEY MARKET      FOCUSED VALUE        FI STRUCTURED           SMALL CAP   
                                PORTFOLIO         PORTFOLIO          PORTFOLIO         EQUITY PORTFOLIO         PORTFOLIO   
                               ------------      ------------      --------------      ----------------      ---------------
                                                                                                                            
(IN THOUSANDS)                                                                                                              
Outstanding at December 31,                                                                                                 
 2001.........................    33,599            53,150             48,535               61,754                59,538    
Activity 2002:                                                                                                              
 Issued.......................    16,247            78,734             34,965                4,582                 8,327    
 Redeemed.....................    (8,256)          (62,143)           (14,392)             (17,342)              (16,270)   
                                 -------           -------            -------              -------               -------    
Outstanding at December 31,                                                                                                 
 2002.........................    41,590            69,741             69,108               48,994                51,595    
                                 =======           =======            =======              =======               =======    
(IN THOUSANDS)                                                                                                              
Outstanding at December 31,                                                                                                 
 2000.........................    26,739            34,753             27,369               70,346                66,265    
Activity 2001:                                                                                                              
 Issued.......................    14,330            64,138             30,565                8,763                11,588    
 Redeemed.....................    (7,470)          (45,741)            (9,399)             (17,355)              (18,315)   
                                 -------           -------            -------              -------               -------    
Outstanding at December 31,                                                                                                 
 2001.........................    33,599            53,150             48,535               61,754                59,538    
                                 =======           =======            =======              =======               =======    

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NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)                                  

                                                        [Enlarge/Download Table]

                                                    ZENITH FUND                                                     
--------------------------------------------------------------------------------------------------------------------
                   SALOMON BROTHERS                                                                                 
SALOMON BROTHERS    STRATEGIC BOND    LOOMIS SAYLES       ALGER                         MFS INVESTORS   MFS RESEARCH
U.S. GOVERNMENT     OPPORTUNITIES       BALANCED      EQUITY GROWTH    DAVIS VENTURE        TRUST         MANAGERS  
   PORTFOLIO          PORTFOLIO         PORTFOLIO       PORTFOLIO     VALUE PORTFOLIO     PORTFOLIO      PORTFOLIO  
----------------   ----------------   -------------   -------------   ---------------   -------------   ------------
                                                                                                                     
     43,266             44,975            60,793         109,828          121,855           18,771         31,555   
     42,389             14,923            12,289          14,578           27,213            6,521          4,736   
    (12,746)           (10,345)          (17,461)        (31,396)         (28,567)          (5,486)        (9,479)  
    -------            -------           -------         -------          -------          -------        -------   
     72,909             49,553            55,621          93,010          120,501           19,806         26,812   
    =======            =======           =======         =======          =======          =======        =======   
     28,212             42,019            61,207         118,611          118,785           14,955         36,163   
     24,819             12,547            15,759          23,276           30,204           26,842         12,143   
     (9,765)            (9,591)          (16,173)        (32,059)         (27,134)         (23,026)       (16,751)  
    -------            -------           -------         -------          -------          -------        -------   
     43,266             44,975            60,793         109,828          121,855           18,771         31,555   
    =======            =======           =======         =======          =======          =======        =======   


  ZENITH FUND                                                                                                       
 -------------                                                                                                      

  FI MID CAP                                                                                                        
 OPPORTUNITIES                                                                                                      
   PORTFOLIO                                                                                                        
 -------------                                                                                                      
                                                                                                                    
         --                                                                                                         
      1,268                                                                                                         
       (281)                                                                                                        
    -------                                                                                                         
        987                                                                                                         
    =======                                                                                                         
         --                                                                                                         
         --                                                                                                         
         --                                                                                                         
    -------                                                                                                         
         --                                                                                                         
    =======                                                                                                         

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NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)                                  

                                                        [Enlarge/Download Table]

                                                                   METROPOLITAN FUND                                        
                           -------------------------------------------------------------------------------------------------
                             PUTNAM                                                                                         
                            LARGE CAP           PUTNAM             STATE STREET             JANUS                RUSSELL    
                             GROWTH          INTERNATIONAL           RESEARCH              MID CAP                2000      
                            PORTFOLIO       STOCK PORTFOLIO      AURORA PORTFOLIO         PORTFOLIO          INDEX PORTFOLIO
                           -----------      ---------------      ----------------      ----------------      ---------------
                                                                                                                            
(IN THOUSANDS)                                                                                                              
Outstanding at December                                                                                                     
 31, 2001.................    28,544             58,910                25,355                6,391                 5,136    
Activity 2002:                                                                                                              
 Issued...................    14,434             50,660                50,130                5,124                10,069    
 Redeemed.................   (12,156)           (46,089)              (13,215)              (4,302)               (2,920)   
                             -------            -------               -------              -------               -------    
Outstanding at December                                                                                                     
 31, 2002.................    30,822             63,481                62,270                7,213                12,285    
                             =======            =======               =======              =======               =======    
(IN THOUSANDS)                                                                                                              
Outstanding at December                                                                                                     
 31, 2000.................    15,758             58,501                    --                   --                    --    
Activity 2001:                                                                                                              
 Issued...................    78,373             54,104                30,519                8,521                 6,277    
 Redeemed.................   (65,587)           (53,695)               (5,164)              (2,130)               (1,141)   
                             -------            -------               -------              -------               -------    
Outstanding at December                                                                                                     
 31, 2001.................    28,544             58,910                25,355                6,391                 5,136    
                             =======            =======               =======              =======               =======    

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NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)                                  

                                                        [Enlarge/Download Table]

                                          METROPOLITAN FUND                                          
-----------------------------------------------------------------------------------------------------
                                        NEUBERGER        HARRIS                            LEHMAN    
                       FRANKLIN          BERMAN          OAKMARK       STATE STREET       BROTHERS   
                   TEMPLETON SMALL    PARTNERS MID      LARGE CAP        RESEARCH         AGGREGATE  
 METLIFE STOCK        CAP GROWTH        CAP VALUE         VALUE          LARGE CAP       BOND INDEX  
INDEX PORTFOLIO       PORTFOLIO         PORTFOLIO       PORTFOLIO     VALUE PORTFOLIO     PORTFOLIO  
----------------   ----------------   -------------   -------------   ---------------   -------------
                                                                                                      
      4,014              4,504             1,361              --               --           12,364   
      9,296             12,906             6,975           8,278            2,465           24,890   
     (2,207)            (3,611)           (2,027)         (1,132)            (304)          (5,495)  
    -------            -------           -------         -------          -------          -------   
     11,103             13,799             6,309           7,146            2,161           31,759   
    =======            =======           =======         =======          =======          =======   
         --                 --                --              --               --               --   
      4,799              4,995             1,560              --               --           15,556   
       (785)              (491)             (199)             --               --           (3,192)  
    -------            -------           -------         -------          -------          -------   
      4,014              4,504             1,361              --               --           12,364   
    =======            =======           =======         =======          =======          =======   


      METROPOLITAN FUND                                                                              
 ----------------------------                                                                        

    MORGAN       METLIFE MID                                                                         
 STANLEY EAFE     CAP STOCK                                                                          
    INDEX           INDEX                                                                            
  PORTFOLIO       PORTFOLIO                                                                          
 ------------   -------------                                                                        
                                                                                                     
     4,168           4,234                                                                           
    12,334          12,151                                                                           
    (4,173)         (4,014)                                                                          
   -------         -------                                                                           
    12,329          12,371                                                                           
   =======         =======                                                                           
        --              --                                                                           
     5,301           8,631                                                                           
    (1,133)         (4,397)                                                                          
   -------         -------                                                                           
     4,168           4,234                                                                           
   =======         =======                                                                           

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NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)                                  

                                                        [Enlarge/Download Table]

                                    METROPOLITAN FUND                             MET INVESTORS FUND                    
                             --------------------------------  ---------------------------------------------------------
                                               STATE STREET                                                             
                                JANUS            RESEARCH       MFS RESEARCH         MFS MID CAP           PIMCO TOTAL  
                               GROWTH           INVESTMENT     INTERNATIONAL            GROWTH               RETURN     
                              PORTFOLIO       TRUST PORTFOLIO    PORTFOLIO            PORTFOLIO             PORTFOLIO   
                             -----------      ---------------  --------------      ----------------      ---------------
                                                                                                                        
(IN THOUSANDS)                                                                                                          
Outstanding at December 31,                                                                                             
 2001.......................     3,620                412           1,919                3,695                15,505    
Activity 2002:                                                                                                          
 Issued.....................     8,375              1,202           9,783               12,150                81,046    
 Redeemed...................    (2,107)              (279)         (1,743)              (2,699)              (11,048)   
                               -------            -------         -------              -------               -------    
Outstanding at December 31,                                                                                             
 2002.......................     9,888              1,335           9,959               13,146                85,503    
                               =======            =======         =======              =======               =======    
(IN THOUSANDS)                                                                                                          
Outstanding at December 31,                                                                                             
 2000.......................        --                 --              --                   --                    --    
Activity 2001:                                                                                                          
 Issued.....................     3,908                444           2,103                4,099                16,304    
 Redeemed...................      (288)               (32)           (184)                (404)                 (799)   
                               -------            -------         -------              -------               -------    
Outstanding at December 31,                                                                                             
 2001.......................     3,620                412           1,919                3,695                15,505    
                               =======            =======         =======              =======               =======    

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NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)                                  

                                                        [Enlarge/Download Table]

                                 MET INVESTORS FUND                                           AMERICAN FUND        
-------------------------------------------------------------------------------------  ----------------------------
                                                                       STATE STREET                      AMERICAN  
                                       MET/AIM MID       MET/AIM         RESEARCH        AMERICAN         FUNDS    
     PIMCO         LORD ABBETT BOND     CAP CORE        SMALL CAP      CONCENTRATED        FUNDS         GROWTH-   
   INNOVATION         DEBENTURE          EQUITY          GROWTH        INTERNATIONAL      GROWTH          INCOME   
   PORTFOLIO          PORTFOLIO         PORTFOLIO       PORTFOLIO        PORTFOLIO       PORTFOLIO      PORTFOLIO  
----------------   ----------------   -------------   -------------   ---------------  -------------   ------------
                                                                                                                    
      3,963              2,365                --              --               --           2,134          2,993   
     11,733             10,131             2,344           2,420              989           7,844          9,367   
     (6,228)            (1,566)             (300)           (169)            (161)         (1,190)        (1,693)  
    -------            -------           -------         -------          -------         -------        -------   
      9,468             10,930             2,044           2,251              828           8,788         10,667   
    =======            =======           =======         =======          =======         =======        =======   
         --                 --                --              --               --              --             --   
      4,897              2,701                --              --               --           2,430          3,387   
       (934)              (336)               --              --               --            (296)          (394)  
    -------            -------           -------         -------          -------         -------        -------   
      3,963              2,365                --              --               --           2,134          2,993   
    =======            =======           =======         =======          =======         =======        =======   


 AMERICAN FUND                                                                                                     
 --------------                                                                                                    

 AMERICAN FUNDS                                                                                                    
  GLOBAL SMALL                                                                                                     
 CAP PORTFOLIO                                                                                                     
 --------------                                                                                                    
                                                                                                                   
      2,562                                                                                                        
     10,538                                                                                                        
     (1,854)                                                                                                       
    -------                                                                                                        
     11,246                                                                                                        
    =======                                                                                                        
         --                                                                                                        
      2,887                                                                                                        
       (325)                                                                                                       
    -------                                                                                                        
      2,562                                                                                                        
    =======                                                                                                        

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NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)                                  

6. UNIT VALUES  A summary of unit values and units outstanding for the Contracts
and the expenses as a percentage of average net assets, excluding expenses for  
the underlying funds, for each of the two years in the period ended December 31,
2002 or lesser time period if applicable.                                       

                                                        [Enlarge/Download Table]

                                                                      ZENITH FUND                                    
                                    -------------------------------------------------------------------------------- 
                                      STATE STREET         STATE STREET            HARRIS                            
                                      RESEARCH BOND          RESEARCH              OAKMARK                           
                                         INCOME            MONEY MARKET         FOCUSED VALUE        FI STRUCTURED   
                                        PORTFOLIO            PORTFOLIO            PORTFOLIO        EQUITY PORTFOLIO  
                                    -----------------    -----------------    -----------------    ----------------- 
                                                                                                                     
2002                                                                                                                 
Units (In thousands)...............            41,590               69,741               69,108               48,994 
Unit Value(1)...................... $   3.66 to $4.44    $   1.94 to $2.35    $   2.20 to $2.42    $   1.75 to $1.92 
Net Assets (In Thousands).......... $         181,150    $         159,444    $         164,783    $          93,057 
Investment Income Ratio to Average                                                                                   
 Net Assets(2).....................              4.54%                1.31%                0.20%                0.92%
Expenses as a Percent of Average                                                                                     
 Net Assets(3).....................     1.15% to 2.45%       1.15% to 2.45%       1.15% to 2.45%       1.15% to 2.45%
Total Return(4)....................           6% to 7%            -1% to 0%         -11% to -10%         -21% to -20%
2001                                                                                                                 
Units (In thousands)...............            33,599               53,150               48,535               61,754 
Unit Value(1)...................... $    3.46 to 4.15    $   1.96 to $2.35    $   2.47 to $2.69    $   2.22 to $2.41 
Net Assets (In Thousands).......... $         138,063    $         123,089    $         129,180    $         147,774 
Investment Income Ratio to Average                                                                                   
 Net Assets(2).....................               8.0%                 3.6%                 0.5%                 0.9%
Expenses as a Percent of Average                                                                                     
 Net Assets(3).....................     1.15% to 1.85%       1.15% to 1.85%       1.15% to 1.85%       1.15% to 1.86%
Total Return(4)....................           3% to 7%             0% to 3%            4% to 26%          -15% to -9%


                                       ZENITH FUND                                                                   
                                    ------------------                                                               

                                      LOOMIS SAYLES                                                                  
                                        SMALL CAP                                                                    
                                        PORTFOLIO                                                                    
                                    ------------------                                                               
                                                                                                                     
2002                                                                                                                 
Units (In thousands)...............            51,595                                                                
Unit Value(1)...................... $   1.63 to $1.77                                                                
Net Assets (In Thousands).......... $          90,703                                                                
Investment Income Ratio to Average                                                                                   
 Net Assets(2).....................              0.11%                                                               
Expenses as a Percent of Average                                                                                     
 Net Assets(3).....................     1.15% to 2.45%                                                               
Total Return(4)....................               -23%                                                               
2001                                                                                                                 
Units (In thousands)...............            59,538                                                                
Unit Value(1)...................... $   2.13 to $2.29                                                                
Net Assets (In Thousands).......... $         135,409                                                                
Investment Income Ratio to Average                                                                                   
 Net Assets(2).....................               7.3%                                                               
Expenses as a Percent of Average                                                                                     
 Net Assets(3).....................     1.15% to 1.85%                                                               
Total Return(4)....................        -10% to -5%                                                               

(1) NELICO sells a number of variable annuity products which have unique        
combinations of features and fees that are charged against the contract 
owners' account balance. Differences in the fee structures result in a  
variety of unit values, expense ratios and total returns.               

(2) These amounts represent the dividends, excluding distributions of capital   
  gains, received by the sub-account from the underlying mutual fund, net of
management fees assessed by the fund manager, divided by the average net
  assets. These ratios exclude those expenses, such as mortality and expense
charges, that result in direct reductions in the unit values. The       
recognition of investment income by the sub-account is affected by the  
  timing of the declaration of dividends by the underlying fund in which the
sub-accounts invest.                                                    

(3) These ratios represent the annualized contract expenses of the Separate     
Account, consisting of mortality and expense charges and asset-based    
    insurance, for each period indicated. The ratios include only those expenses
  that result in a direct reduction to unit values. Charges made directly to
   contract owner accounts through the redemption of units and expenses of the
underlying fund are excluded.                                           

(4) These amounts represent the total return for the periods indicated,         
including changes in the value of the underlying fund, and reflect      
deductions for all items included in the expense ratio. The total return
does not include any expenses assessed through the redemption of units. 
  Inclusion of these expenses in the calculation would result in a reduction
in the total return presented. Investment options with a date notation  
indicate the effective date of that investment option in the Separate   
    Account. The total return is calculated for the period indicated or from the
effective date through the end of the reporting period.                 

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NEW ENGLAND VARIABLE ANNUITY SEPARATE ACCOUNT                                   
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)                                  

                                                        [Enlarge/Download Table]

                                                          ZENITH FUND                                                          
-------------------------------------------------------------------------------------------------------------------------------
         SALOMON        SALOMON BROTHERS                                                                                       
        BROTHERS         STRATEGIC BOND                            ALGER EQUITY                                                
     U.S. GOVERNMENT      OPPORTUNITIES       LOOMIS SAYLES           GROWTH             DAVIS VENTURE         MFS INVESTORS   
        PORTFOLIO           PORTFOLIO       BALANCED PORTFOLIO       PORTFOLIO          VALUE PORTFOLIO       TRUST PORTFOLIO  
    -----------------   -----------------   ------------------   -----------------   ---------------------   ------------------
                                                                                                                               
              72,909              49,553               55,621               93,010               120,501                19,806 
    $  1.48 to $1.60    $  1.62 to $1.75    $   1.18 to $1.28    $   1.70 to $1.83     $   2.06 to $2.22     $   0.64 to $0.66 
    $        115,249    $         85,879    $          70,508    $         169,121     $         265,311     $          12,979 
                4.16%               6.88%                2.44%                0.00%                 0.88%                 0.45%
       1.35% to 1.40%      1.35% to 1.40%       1.15% to 2.45%       1.15% to 2.45%        1.15% to 2.45%        1.15% to 2.45%
             5% to 6%            7% to 8%         -16% to -15%         -35% to -34%          -18% to -17%          -26% to -21%
              43,266              44,975               60,793              109,828               121,855                18,771 
    $  1.41 to $1.50    $  1.51 to $1.62    $   1.40 to $1.50    $   2.60 to $2.78     $   2.52 to $2.69     $   0.81 to $0.84 
    $         64,481    $         72,204    $          90,522    $         303,228     $         325,852     $          15,612 
                 5.7%                6.9%                 4.1%                 6.1%                 10.4%                  0.4%
       1.15% to 1.85%      1.15% to 1.85%       1.15% to 1.85%       1.15% to 1.85%        1.15% to 1.85%        1.15% to 1.85%
             3% to 5%            2% to 5%           -6% to -2%          -13% to -9%           -12% to -5%           -17% to -7%


                  ZENITH FUND                                                                                                  
---  -------------------------------------                                                                                     

       MFS RESEARCH         FI MID CAP                                                                                         
         MANAGERS          OPPORTUNITIES                                                                                       
         PORTFOLIO           PORTFOLIO                                                                                         
     -----------------   -----------------                                                                                     
                                                                                                                               
               26,812                  987                                                                                     
     $  0.64 to $0.66    $            0.81                                                                                     
     $         17,632    $             798                                                                                     
                 0.17%                0.00%                                                                                    
        1.15% to 2.45%       1.35% to 1.40%                                                                                    
          -26% to -25%                 -19%                                                                                    
               31,555                   --                                                                                     
     $  0.86 to $0.88                   --                                                                                     
     $         27,740                   --                                                                                     
                  1.0%                  --                                                                                     
        1.15% to 1.85%                  --                                                                                     
          -22% to -10%                  --                                                                                     

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NEW ENGLAND VARIABLE ANNUITY SEPARATE ACCOUNT                                   
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)                                  

                                                        [Enlarge/Download Table]

                                                                   METROPOLITAN FUND                                 
                                    -------------------------------------------------------------------------------- 
                                                                                STATE STREET                         
                                      PUTNAM LARGE            PUTNAM              RESEARCH                           
                                       CAP GROWTH          INTERNATIONAL           AURORA            JANUS MID CAP   
                                        PORTFOLIO         STOCK PORTFOLIO         PORTFOLIO            PORTFOLIO     
                                    -----------------    -----------------    -----------------    ----------------- 
                                                                                                                     
2002                                                                                                                 
Units (In thousands)...............            30,822               63,481               62,270                7,213 
Unit Value(1)...................... $   0.34 to $0.35    $   0.86 to $0.96    $   1.06 to $1.09    $   1.04 to $1.10 
Net Assets (In Thousands).......... $          10,651    $          60,050    $          67,539    $           7,806 
Investment Income Ratio to Average                                                                                   
 Net Assets(2).....................              0.00%                0.86%                0.49%                0.00%
Expenses as a Percent of Average                                                                                     
 Net Assets(3).....................     1.15% to 2.45%       1.15% to 2.45%       1.15% to 2.45%       1.15% to 2.45%
Total Return(4)....................               -30%                 -19%         -23% to -22%         -31% to -30%
2001                                                                                                                 
Units (In thousands)...............            28,544               58,910               25,355                6,391 
Unit Value(1)...................... $            0.49    $   1.06 to $1.18    $   1.38 to $1.40    $   1.50 to $1.57 
Net Assets (In Thousands).......... $          14,078    $          68,676    $          35,487    $           9,896 
Investment Income Ratio to Average                                                                                   
 Net Assets(2).....................               0.0%                 3.7%                 0.3%                 0.0%
Expenses as a Percent of Average                                                                                     
 Net Assets(3).....................     1.15% to 1.85%       1.15% to 1.85%       1.15% to 1.85%       1.15% to 1.85%
Total Return(4)....................       -31% to -14%          -22% to -9%           -2% to 14%         -40% to -17%


                                    METROPOLITAN FUND                                                                
                                    ------------------                                                               

                                       RUSSELL 2000                                                                  
                                     INDEX PORTFOLIO                                                                 
                                    ------------------                                                               
                                                                                                                     
2002                                                                                                                 
Units (In thousands)...............            12,285                                                                
Unit Value(1)...................... $   0.90 to $0.94                                                                
Net Assets (In Thousands).......... $          11,406                                                                
Investment Income Ratio to Average                                                                                   
 Net Assets(2).....................              0.52%                                                               
Expenses as a Percent of Average                                                                                     
 Net Assets(3).....................     1.15% to 2.45%                                                               
Total Return(4)....................               -22%                                                               
2001                                                                                                                 
Units (In thousands)...............             5,136                                                                
Unit Value(1)...................... $   1.16 to $1.19                                                                
Net Assets (In Thousands).......... $           6,037                                                                
Investment Income Ratio to Average                                                                                   
 Net Assets(2).....................               0.1%                                                               
Expenses as a Percent of Average                                                                                     
 Net Assets(3).....................     1.15% to 1.85%                                                               
Total Return(4)....................         -3% to -1%                                                               

(1) NELICO sells a number of variable annuity products which have unique        
combinations of features and fees that are charged against the contract 
owners' account balance. Differences in the fee structures result in a  
variety of unit values, expense ratios and total returns.               

(2) These amounts represent the dividends, excluding distributions of capital   
  gains, received by the sub-account from the underlying mutual fund, net of
management fees assessed by the fund manager, divided by the average net
  assets. These ratios exclude those expenses, such as mortality and expense
charges, that result in direct reductions in the unit values. The       
recognition of investment income by the sub-account is affected by the  
  timing of the declaration of dividends by the underlying fund in which the
sub-accounts invest.                                                    

(3) These ratios represent the annualized contract expenses of the Separate     
Account, consisting of mortality and expense charges and asset-based    
    insurance, for each period indicated. The ratios include only those expenses
  that result in a direct reduction to unit values. Charges made directly to
   contract owner accounts through the redemption of units and expenses of the
underlying fund are excluded.                                           

(4) These amounts represent the total return for the periods indicated,         
including changes in the value of the underlying fund, and reflect      
deductions for all items included in the expense ratio. The total return
does not include any expenses assessed through the redemption of units. 
  Inclusion of these expenses in the calculation would result in a reduction
in the total return presented. Investment options with a date notation  
indicate the effective date of that investment option in the Separate   
    Account. The total return is calculated for the period indicated or from the
effective date through the end of the reporting period.                 

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NEW ENGLAND VARIABLE ANNUITY SEPARATE ACCOUNT                                   
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)                                  

                                                        [Enlarge/Download Table]

                                                      METROPOLITAN FUND                                                       
------------------------------------------------------------------------------------------------------------------------------
                            FRANKLIN                                 HARRIS                                                   
                         TEMPLETON SMALL    NEUBERGER BERMAN         OAKMARK            STATE STREET         LEHMAN BROTHERS  
      METLIFE STOCK        CAP GROWTH       PARTNERS MID CAP        LARGE CAP        RESEARCH LARGE CAP       AGGREGATE BOND  
     INDEX PORTFOLIO        PORTFOLIO        VALUE PORTFOLIO     VALUE PORTFOLIO       VALUE PORTFOLIO       INDEX PORTFOLIO  
    -----------------   -----------------   -----------------   -----------------   ---------------------   ------------------
                                                                                                                              
               11,103             13,799               6,309                7,146                 2,161                31,759 
    $   2.45 to $2.77   $  0.62 to $0.63    $  1.30 to $1.35    $   0.94 to $0.98     $            0.79     $   1.19 to $1.24 
    $          29,767   $          8,615    $          8,419    $           6,941     $           1,712     $          38,892 
                1.54%               0.00%               0.15%                0.55%                 0.80%                 2.12%
       1.15% to 2.45%      1.15% to 2.45%      1.15% to 2.45%       1.35% to 1.40%        1.35% to 1.40%        1.15% to 2.45%
         -24% to -23%        -30% to -29%        -12% to -11%         -18% to -15%          -23% to -21%              8% to 9%
                4,014              4,504               1,361                   --                    --                12,364 
    $   3.23 to $3.61   $           0.88    $   1.47 to $1.5                   --                    --     $   1.10 to $1.14 
    $          14,055   $          3,961    $          2,042                   --                    --     $          13,956 
                 0.7%                0.0%                0.0%                  --                    --                   0.7%
       1.15% to 1.85%      1.15% to 1.85%      1.15% to 1.85%                  --                    --         1.15% to 1.85%
          -15% to -7%         -12% to -8%          -4% to -3%                  --                    --               3% to 5%


               METROPOLITAN FUND                                                                                              
---  -------------------------------------                                                                                    

      MORGAN STANLEY      METLIFE MID CAP                                                                                     
        EAFE INDEX          STOCK INDEX                                                                                       
         PORTFOLIO           PORTFOLIO                                                                                        
     -----------------   -----------------                                                                                    
                                                                                                                              
               12,329               12,371                                                                                    
     $  0.68 to $0.71    $   0.85 to $0.87                                                                                    
     $          8,631    $          10,670                                                                                    
                 0.32%                0.26%                                                                                   
        1.15% to 2.45%       1.15% to 2.45%                                                                                   
                  -18%         -17% to -16%                                                                                   
                4,168                4,234                                                                                    
     $     0.83 $0.86    $   1.02 to $1.03                                                                                    
     $          3,547    $           4,326                                                                                    
                  0.2%                 0.2%                                                                                   
        1.15% to 1.85%       1.15% to 1.85%                                                                                   
          -23% to -10%           -2% to -1%                                                                                   

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NEW ENGLAND VARIABLE ANNUITY SEPARATE ACCOUNT                                   
NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)                                  

                                                        [Enlarge/Download Table]

                                              METROPOLITAN FUND              MET INVESTORS FUND
                                    --------------------------------------   ----------------- 
                                                           STATE STREET                        
                                                             RESEARCH          MFS RESEARCH    
                                      JANUS GROWTH          INVESTMENT         INTERNATIONAL   
                                        PORTFOLIO         TRUST PORTFOLIO        PORTFOLIO     
                                    -----------------    -----------------   ----------------- 
                                                                                               
2002                                                                                           
Units (In thousands)...............             9,888                1,335               9,959 
Unit Value(1)...................... $   0.52 to $0.53    $   4.10 to $4.94   $   0.73 to $0.74 
Net Assets (In Thousands).......... $           5,226    $           6,287   $           7,348 
Investment Income Ratio to Net                                                                 
 Assets(2).........................              0.00%                0.48%               0.19%
Expenses as a Percent of Average                                                               
 Net Assets(3).....................     1.15% to 2.45%       1.15% to 2.45%      1.15% to 2.45%
Total Return(4)....................               -32%         -28% to -27%        -14% to -13%
2001                                                                                           
Units (In thousands)...............             3,620                  412               1,919 
Unit Value(1)...................... $   0.77 to $0.78    $   5.68 to $6.77   $   0.84 to $0.85 
Net Assets (In Thousands).......... $           2,804    $           2,640   $           1,659 
Investment Income Ratio to Net                                                                 
 Assets(2).........................               0.0%                 0.0%                0.0%
Expenses as a Percent of Average                                                               
 Net Assets(3).....................     1.15% to 1.85%       1.15% to 1.85%      1.40% to 2.10%
Total Return(4)....................       -23% to -18%          -12% to -9%        -13% to -11%


                                            MET INVESTORS FUND                                 
                                    ---------------------------------------                    

                                       MFS MID CAP                                             
                                         GROWTH             PIMCO TOTAL                        
                                        PORTFOLIO         RETURN PORTFOLIO                     
                                    -----------------    ------------------                    
                                                                                               
2002                                                                                           
Units (In thousands)...............            13,146               85,503                     
Unit Value(1)...................... $   0.45 to $0.46    $   1.12 to $1.14                     
Net Assets (In Thousands).......... $           5,979    $          97,131                     
Investment Income Ratio to Net                                                                 
 Assets(2).........................              0.76%                0.00%                    
Expenses as a Percent of Average                                                               
 Net Assets(3).....................     1.15% to 2.45%       1.15% to 2.45%                    
Total Return(4)....................               -45%             7% to 8%                    
2001                                                                                           
Units (In thousands)...............             3,695               15,505                     
Unit Value(1)...................... $   0.82 to $0.83    $            1.07                     
Net Assets (In Thousands).......... $           3,069    $          16,337                     
Investment Income Ratio to Net                                                                 
 Assets(2).........................               0.0%                 1.6%                    
Expenses as a Percent of Average                                                               
 Net Assets(3).....................     1.15% to 1.85%       1.15% to 1.85%                    
Total Return(4)....................       -16% to -11%             6% to 7%                    

(1) NELICO sells a number of variable annuity products which have unique        
combinations of features and fees that are charged against the contract 
owners' account balance. Differences in the fee structures result in a  
variety of unit values, expense ratios and total returns.               

(2) These amounts represent the dividends, excluding distributions of capital   
  gains, received by the sub-account from the underlying mutual fund, net of
management fees assessed by the fund manager, divided by the average net
  assets. These ratios exclude those expenses, such as mortality and expense
charges, that result in direct reductions in the unit values. The       
recognition of investment income by the sub-account is affected by the  
  timing of the declaration of dividends by the underlying fund in which the
sub-accounts invest.                                                    

(3) These ratios represent the annualized contract expenses of the Separate     
Account, consisting of mortality and expense charges and asset-based    
    insurance, for each period indicated. The ratios include only those expenses
  that result in a direct reduction to unit values. Charges made directly to
   contract owner accounts through the redemption of units and expenses of the
underlying fund are excluded.                                           

(4) These amounts represent the total return for the periods indicated,         
including changes in the value of the underlying fund, and reflect      
deductions for all items included in the expense ratio. The total return
does not include any expenses assessed through the redemption of units. 
  Inclusion of these expenses in the calculation would result in a reduction
in the total return presented. Investment options with a date notation  
indicate the effective date of that investment option in the Separate   
    Account. The total return is calculated for the period indicated or from the
effective date through the end of the reporting period.                 

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NEW ENGLAND VARIABLE ANNUITY SEPARATE ACCOUNT                                   
NOTES TO FINANCIAL STATEMENTS -- (CONCLUDED)                                  

                                                        [Enlarge/Download Table]

                                          MET INVESTORS FUND                                               AMERICAN FUND   
-------------------------------------------------------------------------------------------------------  ------------------
      PIMCO            LORD ABBETT         MET/AIM MID        MET/AIM SMALL          STATE STREET                          
   INNOVATION        BOND DEBENTURE         CAP CORE           CAP GROWTH        RESEARCH CONCENTRATED     AMERICAN FUNDS  
    PORTFOLIO           PORTFOLIO       EQUITY PORTFOLIO        PORTFOLIO       INTERNATIONAL PORTFOLIO   GROWTH PORTFOLIO 
-----------------   -----------------   -----------------   -----------------   -----------------------  ------------------
                                                                                                                            
            9,468             10,930                2,044               2,251                    828                 8,788 
$   0.29 to $0.30   $  1.28 to $1.37    $   0.96 to $0.97   $   0.84 to $0.85      $   0.88 to $0.89     $   7.28 to $8.39 
$           2,804   $         14,700    $           1,976   $           1,908      $             732     $          72,031 
             0.00%              5.94%                0.15%               0.00%                  0.26%                 0.05%
    1.15% to 2.45%     1.15% to 2.45%       1.35% to 1.40%      1.35% to 1.40%         1.35% to 1.40%        1.15% to 2.45%
      -52% to -51%          -3% to 2%         -16% to -12%        -29% to -24%           -19% to -16%                  -26%
            3,963              2,365                   --                  --                     --                 2,134 
$            0.61   $  1.32 to $1.39                   --                  --                     --     $  9.67 to $11.48 
$           2,414   $          3,236                   --                  --                     --     $          23,354 
              0.0%               2.0%                  --                  --                     --                   5.6%
    1.15% to 1.85%     1.15% to 1.85%                  --                  --                     --         1.40% to 2.10%
      -26% to -19%          -1% to 1%                  --                  --                     --           -15% to -11%


             AMERICAN FUND                                                                                                 
 -------------------------------------                                                                                     
  AMERICAN FUNDS      AMERICAN FUNDS                                                                                       
   GROWTH-INCOME       GLOBAL SMALL                                                                                        
     PORTFOLIO         CAP PORTFOLIO                                                                                       
 -----------------   -----------------                                                                                     
                                                                                                                           
           10,667               11,246                                                                                     
 $  5.75 to $6.88    $   1.03 to $1.08                                                                                     
 $         70,206    $          12,042                                                                                     
             1.50%                0.77%                                                                                    
    1.15% to 2.45%       1.15% to 2.45%                                                                                    
      -20% to -19%         -21% to -20%                                                                                    
            2,993                2,562                                                                                     
 $  7.20 to $8.54    $   1.31 to $1.35                                                                                     
 $         24,355    $           3,437                                                                                     
              2.5%                 0.9%                                                                                    
    1.40% to 2.10%       1.15% to 1.85%                                                                                    
        -4% to -3%           -9% to -8%                                                                                    

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NEW ENGLAND LIFE INSURANCE COMPANY                                              
INDEPENDENT AUDITORS' REPORT                                                  

To the Board of Directors and Shareholder of                                    
New England Life Insurance Company                                              

We have audited the accompanying consolidated balance sheets of New England Life
Insurance Company and subsidiaries (the "Company") as of December 31, 2002 and  
2001, and the related consolidated statements of income, stockholder's equity,  
and cash flows for each of the three years in the period ended December 31,     
2002. 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 in accordance with auditing standards generally accepted
in the United States of America. Those standards require that we plan and       
perform the audit to obtain reasonable assurance about whether the 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. An audit also includes assessing the accounting principles used and 
significant estimates made by management, as well as evaluating the overall     
financial statement presentation. We believe that our audits provide a          
reasonable basis for our opinion.                                               

In our opinion, such consolidated financial statements present fairly, in all   
material respects, the consolidated financial position of New England Life      
Insurance Company and subsidiaries as of December 31, 2002 and 2001, and the    
consolidated results of their operations and their consolidated cash flows for  
each of the three years in the period ended December 31, 2002 in conformity with
accounting principles generally accepted in the United States of America.       

As discussed in Note 1 to the consolidated financial statements, effective      
January 1, 2002, the Company adopted the provisions of the Statement of         
Financial Accounting Standards No. 142, Goodwill and Other Intangible Assets.   

DELOITTE & TOUCHE LLP                                                           

Boston, Massachusetts                                                           
February 19, 2003                                                               

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NEW ENGLAND LIFE INSURANCE COMPANY                                              
CONSOLIDATED BALANCE SHEETS                                                   

DECEMBER 31, 2002 AND 2001                                                      
(DOLLARS IN MILLIONS EXCEPT SHARE AND PER SHARE AMOUNTS)                        

                                                                [Download Table]

                                                               2002      2001 
                                                              ------    ------
                                                                              
ASSETS                                                                        
Investments:                                                                  
  Fixed maturities available-for-sale, at fair value                          
    (amortized cost: $658 and $340, respectively)...........  $  685    $  344
  Equity securities, at fair value (cost: $24 and $30,                        
    respectively)...........................................      23        27
  Policy loans..............................................     270       262
  Other limited partnership interests.......................      15        20
  Short-term investments....................................      34        --
  Other invested assets.....................................      10        12
                                                              ------    ------
      Total investments.....................................   1,037       665
                                                              ------    ------
Cash and cash equivalents...................................     106       210
Accrued investment income...................................      17        19
Premiums and other receivables..............................     180       133
Deferred policy acquisition costs...........................   1,269     1,185
Other assets................................................      89       113
Separate account assets.....................................   5,425     5,725
                                                              ------    ------
      TOTAL ASSETS..........................................  $8,123    $8,050
                                                              ======    ======
LIABILITIES AND STOCKHOLDER'S EQUITY                                          
LIABILITIES:                                                                  
  Future policy benefits....................................  $  338    $  245
  Policyholder account balances.............................     748       661
  Other policyholder funds..................................     306       296
  Policyholder dividends payable............................       2         2
  Current income taxes payable..............................      18        --
  Deferred income taxes payable.............................      63        68
  Other liabilities.........................................     254       115
  Separate account liabilities..............................   5,425     5,725
                                                              ------    ------
      TOTAL LIABILITIES.....................................   7,154     7,112
                                                              ------    ------
Commitments and contingencies (Note 6)                                        
STOCKHOLDER'S EQUITY:                                                         
Common stock, par value $125.00 per share; 50,000 shares                      
  authorized; 20,000 shares issued and outstanding..........       3         3
Preferred stock, no par value; 1,000,000 shares authorized;                   
  200,000 issued and outstanding............................      --        --
Additional paid-in capital..................................     647       647
Retained earnings...........................................     295       284
Accumulated other comprehensive income......................      24         4
                                                              ------    ------
      TOTAL STOCKHOLDER'S EQUITY............................     969       938
                                                              ------    ------
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY..................  $8,123    $8,050
                                                              ======    ======

See accompanying notes to consolidated financial statements.
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NEW ENGLAND LIFE INSURANCE COMPANY                                              
CONSOLIDATED STATEMENTS OF INCOME                                             

FOR THE YEARS ENDED DECEMBER 31, 2002, 2001 AND 2000                            
(DOLLARS IN MILLIONS)                                                           

                                                                [Download Table]

                                                             2002   2001   2000 
                                                             ----   ----   ---- 
                                                                                
REVENUES                                                                        
Premiums.................................................... $ 91   $117   $125 
Universal life and investment-type product policy fees......  407    351    272 
Net investment income.......................................   36     44     63 
Other revenues..............................................  190    221    283 
Net investment losses.......................................  (11)    (1)   (28)
                                                             ----   ----   ---- 
        TOTAL REVENUES......................................  713    732    715 
                                                             ----   ----   ---- 
EXPENSES                                                                        
Policyholder benefits and claims............................  131    104    150 
Interest credited to policyholder account balances..........   30     24     20 
Policyholder dividends......................................    5      3     18 
Other expenses..............................................  477    463    490 
                                                             ----   ----   ---- 
        TOTAL EXPENSES......................................  643    594    678 
                                                             ----   ----   ---- 
Income before provision for income taxes, cumulative effect                     
  of a change in accounting principle, and minority                             
  interest..................................................   70    138     37 
Provision for income taxes..................................   14     42     25 
                                                             ----   ----   ---- 
Income before cumulative effect of a change in accounting                       
  principle and minority interest...........................   56     96     12 
Cumulative effect of a change in accounting principle.......  (15)    --     -- 
Minority interest...........................................  (25)   (20)    -- 
                                                             ----   ----   ---- 
NET INCOME.................................................. $ 16   $ 76   $ 12 
                                                             ====   ====   ==== 

See accompanying notes to consolidated financial statements.
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NEW ENGLAND LIFE INSURANCE COMPANY                                              
CONSOLIDATED STATEMENTS OF STOCKHOLDER'S EQUITY                               

FOR THE YEARS ENDED DECEMBER 31, 2002, 2001 AND 2000                            
(DOLLARS IN MILLIONS)                                                           

                                                        [Enlarge/Download Table]

                                                                                    ACCUMULATED        
                                                             ADDITIONAL                OTHER           
                                                     COMMON   PAID-IN    RETAINED  COMPREHENSIVE       
                                                     STOCK    CAPITAL    EARNINGS  (LOSS) INCOME  TOTAL
                                                     ------  ----------  --------  -------------  -----
                                                                                                       
BALANCE AT DECEMBER 31, 1999........................   $3       $647       $215        $(11)      $854 
  Dividends on preferred stock......................                        (11)                   (11)
  Comprehensive income:                                                                                
    Net income......................................                         12                     12 
    Other comprehensive income:                                                                        
      Unrealized investment gains, net of related                                                      
        offsets, reclassification adjustments and                                                      
        income taxes................................                                      2          2 
                                                                                                  ---- 
  Comprehensive income..............................                                                14 
                                                       --       ----       ----        ----       ---- 
BALANCE AT DECEMBER 31, 2000........................    3        647        216          (9)       857 
  Dividends on preferred stock......................                         (8)                    (8)
  Comprehensive income:                                                                                
    Net income......................................                         76                     76 
    Other comprehensive income:                                                                        
      Unrealized investment gains net of related                                                       
        offsets and income taxes....................                                     13         13 
                                                                                                  ---- 
  Comprehensive income..............................                                                89 
                                                       --       ----       ----        ----       ---- 
BALANCE AT DECEMBER 31, 2001........................    3        647        284           4        938 
  Dividends on preferred stock......................                         (5)                    (5)
  Comprehensive income:                                                                                
    Net income......................................                         16                     16 
    Other comprehensive income:                                                                        
      Unrealized investment gains net of related                                                       
        offsets and income taxes....................                                     20         20 
                                                                                                  ---- 
  Comprehensive income..............................                                                36 
                                                       --       ----       ----        ----       ---- 
BALANCE AT DECEMBER 31, 2002........................   $3       $647       $295        $ 24       $969 
                                                       ==       ====       ====        ====       ==== 

See accompanying notes to consolidated financial statements.
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NEW ENGLAND LIFE INSURANCE COMPANY                                              
CONSOLIDATED STATEMENTS OF CASH FLOWS                                         

FOR THE YEARS ENDED DECEMBER 31, 2002, 2001 AND 2000                            
(DOLLARS IN MILLIONS)                                                           

                                                        [Enlarge/Download Table]

                                                              2002      2001      2000   
                                                             -------   -------   ------- 
                                                                                         
CASH FLOWS FROM OPERATING ACTIVITIES                                                     
Net income.................................................. $    16   $    76   $    12 
  Adjustments to reconcile net income to net cash used in                                
    operating activities:                                                                
    Depreciation and amortization expenses..................       8        10        13 
    Losses from sale of investments.........................      11         1        28 
    Interest credited to policyholder account balances......      30        24        20 
    Universal life and investment-type product policy                                    
     fees...................................................    (407)     (351)     (272)
    Change in accrued investment income.....................       2         1        10 
    Change in premiums and other receivables................       6       (12)       (2)
    Change in deferred policy acquisition costs, net........     (79)     (153)     (113)
    Change in insurance-related liabilities.................     103       102      (420)
    Change in income taxes payable..........................       3        40       (11)
    Change in other liabilities.............................     139       (64)       26 
  Other, net................................................      42       123       177 
                                                             -------   -------   ------- 
Net cash used in operating activities.......................    (126)     (203)     (532)
                                                             -------   -------   ------- 
CASH FLOWS FROM INVESTING ACTIVITIES                                                     
  Sales, maturities and repayments of:                                                   
    Fixed maturities........................................     176       135       587 
    Equity securities.......................................       1        --        35 
  Purchases of:                                                                          
    Fixed maturities........................................    (550)     (226)      (87)
    Equity securities.......................................      --        (5)       (9)
  Net change in short-term investments......................     (34)       10        53 
  Net change in policy loans................................      (8)      (28)      (52)
  Loss from sale of business, net...........................      --        --       (54)
  Other, net................................................      39       (19)       (3)
                                                             -------   -------   ------- 
Net cash (used in) provided by investing activities.........    (376)     (133)      470 
                                                             -------   -------   ------- 
CASH FLOWS FROM FINANCING ACTIVITIES                                                     
  Policyholder account balances:                                                         
    Deposits................................................   1,426     2,109     1,712 
    Withdrawals.............................................  (1,023)   (1,669)   (1,532)
  Long-term debt repaid.....................................      --        --       (77)
  Dividends on preferred stock..............................      (5)       (8)      (11)
                                                             -------   -------   ------- 
Net cash provided by financing activities...................     398       432        92 
                                                             -------   -------   ------- 
Change in cash and cash equivalents.........................    (104)       96        30 
Cash and cash equivalents, beginning of year................     210       114        84 
                                                             -------   -------   ------- 
CASH AND CASH EQUIVALENTS, END OF YEAR...................... $   106   $   210   $   114 
                                                             =======   =======   ======= 
Supplemental disclosures of cash flow information:                                       
  Cash paid during the year for:                                                         
    Interest................................................ $     1   $     2   $     7 
                                                             =======   =======   ======= 
    Income taxes............................................ $     6   $     7   $    22 
                                                             =======   =======   ======= 

See accompanying notes to consolidated financial statements.
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NEW ENGLAND LIFE INSURANCE COMPANY                                              
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS                                    

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES                                   

BUSINESS                                                                        

New England Life Insurance Company (the "Company" or "NELICO") is a wholly owned
stock life insurance subsidiary of Metropolitan Life Insurance Company          
("Metropolitan Life"). The Company is headquartered in Boston, Massachusetts as 
a Massachusetts chartered company. The Company principally provides variable    
life insurance and variable annuity contracts through a network of general      
agencies and independent brokers located throughout the United States. The      
Company also provides participating and non-participating traditional life      
insurance, pension products, as well as, group life, medical, and disability    
coverage.                                                                       

The principal subsidiaries of which NELICO owns 100% of the outstanding common  
stock are: New England Pension and Annuity Company ("NEPA") and Newbury         
Insurance Company, Limited ("Newbury") for insurance operations and, through New
England Life Holdings, Inc. (a holding company for non-insurance operations),   
New England Securities Corporation ("NES"), and NL Holding Corporation ("NL     
Holding") and its wholly owned subsidiaries Nathan and Lewis Securities, Inc.,  
Nathan and Lewis Associates, Inc. NELICO owns a majority interest in MetLife    
Advisers LLC ("Advisers") and New England Financial Distributors LLC ("NEFD").  
On October 31, 2000 Exeter Reassurance Co., Ltd, a Bermuda Corporation was sold 
to MetLife, Inc. the ultimate parent company of NELICO. The principal business  
activities of the subsidiaries are disclosed below.                             

NEPA was incorporated under the laws of the State of Delaware on September 12,  
1980. NEPA holds licenses to sell annuity contracts in 22 states, but is        
currently not actively engaged in the sale or distribution of insurance         
products.                                                                       

Newbury was incorporated in Bermuda on May 1, 1987, and is registered as a Class
2 insurer under The Insurance Act of 1978 (Bermuda). Newbury provides           
professional liability and personal injury coverage to the agents of NELICO     
through a facultative reinsurance agreement with Lexington Insurance Company.   
Effective September 1, 2000, Newbury began providing errors and omissions       
coverage to certain of the life insurance agents of MetLife through a           
facultative reinsurance agreement with Fireman's Fund Insurance Company.        

NES, a National Association of Securities Dealers ("NASD") registered           
broker/dealer, conducts business as a wholesale distributor of investment       
products through the sales force of NELICO. Established in 1968, NES offers a   
range of investment products including mutual funds, investment partnerships,   
and individual securities. In 1994, NES became a Registered Investment Advisor  
with the Securities and Exchange Commission ("SEC"), and now offers individually
managed portfolios. NES is the national distributor for variable annuity and    
variable life products issued by NELICO.                                        

Advisers, which changed its name from New England Investment Management LLC in  
May 2001, was incorporated on August 26, 1994, and is registered as an          
investment adviser with the SEC, under the Investment Advisers Act of 1940.     
Advisers was organized to serve as an investment adviser to certain series of   
the New England Zenith Fund and certain other Metropolitan Life funds. Prior to 
January 1, 2001, Advisers was owned 100% by the Company. On January 1, 2001 the 
Company entered into an agreement with certain affiliated entities whereby those
entities received a non-voting equity interest in Advisers. The Company retained
100% of the voting interests.                                                   

NL Holding engages in securities brokerage, dealer trading in fixed income      
securities, over the counter stock, unit investment trusts, and the sale of     
insurance related products and annuities, sold through licensed brokers and     
independent agents. Nathan and Lewis Securities, Inc., a wholly owned subsidiary
of NL Holding, is a NASD registered broker/dealer. Nathan & Lewis Associates, a 
wholly owned subsidiary of NL Holding, is a general insurance agent which sells 
insurance policies and other insurance related products through its licensed    
brokers and independent agents.                                                 

NEFD was incorporated in Delaware on November 5, 1999. NEFD is licensed as an   
insurance agency to facilitate the distribution of insurance and other financial
products, including securities.                                                 

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NEW ENGLAND LIFE INSURANCE COMPANY                                              
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(CONTINUED)                       

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").                                                               

The preparation of financial statements requires management to adopt accounting 
policies and make estimates and assumptions that affect amounts reported in the 
consolidated financial statements. The significant accounting policies,         
estimates, and related judgments underlying the Company's consolidated financial
statements are summarized below. In applying these policies, management makes   
subjective and complex judgments that frequently require estimates about matters
that are inherently uncertain. Many of these policies, estimates and related    
judgments are common in the insurance and financial services industries; others 
are specific to the Company's businesses and operations.                        

The accompanying consolidated financial statements include the accounts of      
NELICO and its subsidiaries, and other limited partnerships in which the Company
has a majority voting interest or general partner interest with limited removal 
rights by limited partners. Intercompany accounts and transactions have been    
eliminated. In addition, the Company has established a minority interest for the
portion of the net income of Advisers not attributable to the Company's         
ownership of $25 million and $20 million for the years ended December 31, 2002  
and 2001, respectively. Minority interest in the stockholder's equity of the    
Company was less than $1 million as of December 31, 2002 and 2001, respectively.

The Company uses the equity method of accounting for investments in real estate 
joint ventures and other limited partnership interests in which it has more than
a minor interest, has influence over the partnership's operating and financial  
policies and does not have a controlling interest.                              

Certain amounts in the prior years' consolidated financial statements have been 
reclassified to conform with the 2002 presentation.                             

INVESTMENTS                                                                     

The Company's principal investments are in fixed maturities, which are exposed  
to three primary sources of investment risk: credit, interest rate and market   
valuation. The financial statement risks are those associated with the          
recognition of income, impairments and the determination of fair values. The    
assessment of whether impairments have occurred is based on management's        
case-by-case evaluation of the underlying reasons for the decline in fair value.
Management considers a wide range of factors about the security issuer and uses 
its best judgment in evaluating the cause of the decline in the estimated fair  
value of the security and in assessing the prospects for near-term recovery.    
Inherent in management's evaluation of the security are assumptions and         
estimates about the operations of the issuer and its future earnings potential. 
Considerations used by the Company in the fixed maturities impairment evaluation
process include, but are not limited to: (i) The length of time and the extent  
to which the market value has been below amortized cost; (ii) The potential for 
impairments of securities when the issuer is experiencing significant financial 
difficulties; (iii) The potential for impairments in an entire industry sector  
or sub-sector; (iv) The potential for impairments in certain economically       
depressed geographic locations; (v) The potential for impairments of securities 
where the issuer, series of issuers or industry has suffered a catastrophic type
of loss or has exhausted natural resources; and (vi) Other subjective factors,  
including concentrations and information obtained from regulators and rating    
agencies. In addition, the earnings on certain investments are dependent upon   
market conditions, which could result in prepayments and changes in amounts to  
be earned due to changing interest rates or equity markets.                     

The Company's fixed maturity and equity securities are classified as            
available-for-sale and are reported at their estimated fair value. Unrealized   
investment gains and losses on securities are recorded as a separate component  
of accumulated other comprehensive income, net of policyholder related amounts  
and deferred income taxes. The cost of fixed maturity and equity securities is  
adjusted for impairments in value deemed to be other than temporary. These      
adjustments are recorded as investment losses. Investment gains and losses on   
sales of securities are determined on a specific identification basis. All      
security transactions are recorded on a trade date basis.                       

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NEW ENGLAND LIFE INSURANCE COMPANY                                              
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(CONTINUED)                       

Policy loans are stated at unpaid principal balances, which are not in excess of
net cash surrender values of related insurance policies. Short-term investments 
are stated at amortized cost, which approximates fair value.                    

Other invested assets are reported at their estimated fair value.               

VARIABLE INTEREST ENTITIES                                                      

Effective in 2003, Financial Accounting Standards Board ("FASB") Interpretation 
No. 46, Consolidation of Variable Interest Entities, and Interpretation of APB  
No. 51 ("FIN 46") established new accounting guidance relating to the           
consolidation of variable interest entities ("VIEs"). Certain investments in    
real estate joint ventures and other limited partnership interests meet the VIE 
definition. The Company will be required to consolidate any VIE for which it is 
determined that the Company is the primary beneficiary. The Company is still in 
the process of evaluating its investments with regard to the implementation of  
FIN 46.                                                                         

The following table presents the total assets and the maximum exposure to loss  
relating to the VIEs that the Company believes it is reasonably possible it will
need to consolidate in accordance with the provisions of FIN 46 at:             

                                                                [Download Table]

                                                               DECEMBER 31, 2002    
                                                             ---------------------- 
                                                                          MAXIMUM   
                                                              TOTAL       EXPOSURE  
                                                              ASSETS      TO LOSS   
                                                             --------    ---------- 
                                                             (DOLLARS IN MILLIONS)  
                                                                                    
Other structured investment transactions....................    $18         $  --(1)
Other limited partnership interests.........................      1             1(2)
                                                                ---         -----   
    Total...................................................    $19         $   1   
                                                                ===         =====   

---------------                                                                 
(1) The maximum exposure to loss is based on the carrying value of beneficial   
interests.                                                              

(2) The maximum exposure to loss is based on the carrying value plus unfunded   
commitments reduced by amounts guaranteed by other partners.            

The other structured investment is an equity interest in a life insurance entity
that the Company holds. This entity, which reinsures certain risks from the     
Company and Metropolitan Life, was established to facilitate the retention of   
top producing agents and to increase the quality of insurance written by such   
agents through the use of agent-owned participating equity.                     

CASH AND CASH EQUIVALENTS                                                       

The Company considers all investments purchased with an original maturity of    
three months or less to be cash equivalents.                                    

PROPERTY, EQUIPMENT, LEASEHOLD IMPROVEMENTS AND COMPUTER SOFTWARE               

Property, equipment and leasehold improvements, which are included in other     
assets, are stated at cost, less accumulated depreciation and amortization.     
Depreciation is determined using either the straight-line or sum-of-the-        
years-digits method over the estimated useful lives of the assets. Estimated    
lives range from four to seven years for leasehold improvements and three to 15 
years for all other property and equipment. Accumulated depreciation and        
amortization of property, equipment, and leasehold improvements was $4 million  
and $54 million at December 31, 2002 and 2001, respectively. Related            
depreciation and amortization expense was $168,000, $1 million and $9 million   
for the years ended December 31, 2002, 2001 and 2000, respectively. During 2002,
the Company received $27 million from Metlife for the purchase of the Company's 
computers, furniture and other fixed assets at net book value.                  

Computer software, which is included in other assets, is stated at cost, less   
accumulated amortization. Purchased software costs, as well as, internal and    
external costs incurred to develop internal-use computer software during the    

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NEW ENGLAND LIFE INSURANCE COMPANY                                              
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(CONTINUED)                       

application development stage are capitalized. Such costs are amortized         
generally over a three-year period using the straight-line method. Accumulated  
amortization of capitalized software was $15 million and $10 million at December
31, 2002 and 2001, respectively. Related amortization expense was $5 million, $8
million and $2 million for the years ended December 31, 2002, 2001 and 2000,    
respectively.                                                                   

DEFERRED POLICY ACQUISITION COSTS                                               

The costs of acquiring new business that vary with, and are primarily related   
to, the production of new business are deferred. Such costs, which consist      
principally of commissions, agency and policy issue expenses, are amortized with
interest over the expected life of the contract for participating traditional   
life, variable life, universal life, investment-type products, and variable     
annuities. Generally, deferred policy acquisition costs are amortized in        
proportion to the present value of estimated gross margins or profits from      
investments, mortality, expense margins and surrender charges. Interest rates   
are based on rates in effect at the inception or acquisition of the contracts.  

Actual gross margins or profits can vary from management's estimates resulting  
in increases or decreases in the rate of amortization. Management periodically  
updates these estimates and evaluates the recoverability of deferred policy     
acquisition costs. When appropriate, management revises its assumptions of the  
estimated gross margins or profits of these contracts, and the cumulative       
amortization is re-estimated and adjusted by a cumulative charge or credit to   
current operations.                                                             

Deferred policy acquisition costs for non-participating traditional life,       
non-medical health policies and annuity policies with life contingencies are    
amortized in proportion to anticipated premiums. Assumptions as to anticipated  
premiums are made at the date of policy issuance and are consistently applied   
during the life of the contracts. Deviations from estimated experience are      
reflected in operations when they occur. For these contracts, the amortization  
period is typically the estimated life of the policy.                           

Information regarding deferred policy acquisition costs is as follows:          

                                                        [Enlarge/Download Table]

                                                              YEARS ENDED DECEMBER 31, 
                                                             --------------------------
                                                              2002      2001      2000 
                                                             ------    ------    ------
                                                               (DOLLARS IN MILLIONS)   
                                                                                       
Balance at January 1........................................ $1,185    $1,021    $  931
Capitalization of policy acquisition costs..................    189       216       223
                                                             ------    ------    ------
    Total...................................................  1,374     1,237     1,154
                                                             ------    ------    ------
Amortization allocated to:                                                             
  Net realized investment losses............................     --        --         1
  Unrealized investment (losses) gains......................     (4)      (11)       23
  Other expenses............................................    109        63       109
                                                             ------    ------    ------
    Total amortization......................................    105        52       133
                                                             ------    ------    ------
Balance at December 31...................................... $1,269    $1,185    $1,021
                                                             ======    ======    ======

Amortization of deferred policy acquisition costs is allocated to: (i)          
investment gains and losses to provide consolidated statement of income         
information regarding the impact of such gains on the amount of the             
amortization, (ii) unrealized investment gains and losses to provide information
regarding the amount of deferred policy acquisition costs that would have been  
amortized to earnings, if such gains and losses had been recognized and (iii)   
other expenses to provide amounts related to the gross margins or profits       
originating from transactions other than investment gains and losses.           

Investment gains and losses that relate to certain products have a direct impact
on the amortization of deferred policy acquisition costs. Presenting investment 
gains and losses net of related amortization of deferred policy                 

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NEW ENGLAND LIFE INSURANCE COMPANY                                              
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(CONTINUED)                       

acquisition costs provides information useful in evaluating the operating       
performance of the Company. This presentation may not be comparable to          
presentations made by other insurers.                                           

GOODWILL                                                                        

The excess of cost over the fair value of net assets acquired ("goodwill") is   
included in other assets. On January 1, 2002, the Company adopted the provisions
of SFAS No. 142, Goodwill and Other Intangible Assets, ("SFAS 142"). In         
accordance with SFAS 142, goodwill is not amortized but tested for impairment at
least annually to determine if a write down of the cost of the asset is         
required. Impairments are recognized in operating results when the carrying     
amount of goodwill exceeds its implied fair value. Prior to the adoption of SFAS
142, goodwill was amortized on a straight-line basis over a period of 10 years  
and impairments were recognized in operating results when permanent diminution  
in value was deemed to have occurred.                                           

During the fourth quarter of 2002, the Company completed the goodwill impairment
tests, which indicated the Company's goodwill was impaired. The Company wrote   
off all of the goodwill and recorded a cumulative effect of a change in         
accounting principle of $15 million. The goodwill impairment was due to         
reductions in anticipated future performance of its subsidiary, Nathan and Lewis
Securities, Inc.                                                                

Net income for the years ended December 31, 2001 and 2000, adjusted to exclude  
amortization of goodwill, would have been $78 million and $14 million,          
respectively.                                                                   

Changes in goodwill were as follows:                                            

                                                        [Enlarge/Download Table]

                                                              YEARS ENDED DECEMBER 31, 
                                                             --------------------------
                                                              2002      2001      2000 
                                                             ------    ------    ------
                                                               (DOLLARS IN MILLIONS)   
                                                                                       
Net balance at January 1....................................  $ 15       $17       $19 
Impairment losses...........................................   (15)       --        -- 
Amortization................................................    --        (2)       (2)
                                                              ----       ---       --- 
Net balance at December 31..................................  $ --       $15       $17 
                                                              ====       ===       === 

                                                                [Download Table]

                                                             DECEMBER 31,   
                                                             -------------  
                                                             2002     2001  
                                                             -----    ----  
                                                              (DOLLARS IN   
                                                               MILLIONS)    
                                                                            
Accumulated amortization.................................... $ --      $8   
                                                             =====     ==   

FUTURE POLICY BENEFITS AND POLICYHOLDER ACCOUNT BALANCES                        

The Company establishes liabilities for amounts payable under insurance         
policies, including traditional life insurance, annuities and disabled lives.   
Generally, amounts are payable over an extended period of time and the          
profitability of the products is dependent on the pricing of the products.      
Principal assumptions used in pricing policies and in the establishment of      
liabilities for future policy benefits are mortality, morbidity, expenses,      
persistency, investment returns and inflation. Differences between the actual   
experience and assumptions used in pricing the policies and in the establishment
of liabilities result in variances in profit and could result in losses.        

Future policy benefit liabilities for traditional life insurance policies are   
equal to the aggregate of (i) net level premium reserves for death and endowment
policy benefits (calculated based upon the non-forfeiture interest rate, ranging
from 4% to 5%, and mortality rates guaranteed in calculating the cash surrender 
values described in such contracts), (ii) the liability for terminal dividends  
and (iii) premium deficiency reserves, which are established when the           
liabilities for future policy benefits plus the present value of expected future
gross premiums are insufficient to provide for expected future policy benefits  
and expenses after deferred policy acquisition costs are written off.           

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NEW ENGLAND LIFE INSURANCE COMPANY                                              
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(CONTINUED)                       

Future policy benefit liabilities for traditional annuities are equal to        
accumulated contractholder fund balances during the accumulation period and the 
present value of expected future payments after annuitization. Interest rates   
used in establishing such liability range from 6% to 7%.                        

Future policy benefit liabilities for non-medical health insurance are          
calculated using the net level premium method and assumptions as to future      
morbidity, withdrawals and interest, which provide a margin for adverse         
deviation. Future policy benefit liabilities for disabled lives are estimated   
using the present value of benefits method and experience assumptions as to     
claim terminations, expenses and interest. The interest rate used in            
establishing such liabilities is 3%.                                            

Policyholder account balances for variable life, universal life and             
investment-type contracts are equal to the policy account values, which consist 
of an accumulation of gross premium payments plus credited interest ranging from
1% to 9%, less expenses, mortality charges, and withdrawals.                    

The liability for unpaid claims represents the amount estimated for claims that 
have been reported but not settled and claims incurred but not reported.        
Liabilities for unpaid claims are estimated based upon the Company's historical 
experience and other actuarial assumptions that consider the effects of current 
developments, anticipated trends and risk management programs. Revisions of     
these estimates are included in operations in the year such refinements are     
made.                                                                           

RECOGNITION OF INSURANCE REVENUE AND RELATED BENEFITS                           

Premiums related to traditional life and annuity policies with life             
contingencies are recognized as revenues when due. Benefits and expenses are    
provided against such revenues to recognize profits over the estimated lives of 
the policies. When premiums are due over a significantly shorter period than the
period over which benefits are provided, any excess profit is deferred and      
recognized into operations in a constant relationship to insurance in-force or, 
for annuities, the amount of expected future policy benefit payments.           

Premiums related to non-medical health contracts are recognized on a pro rata   
basis over the applicable contract term.                                        

Deposits related to universal life and investment-type products are credited to 
policyholder account balances. Revenues from such contracts consist of amounts  
assessed against policyholder account balances for mortality, policy            
administration and surrender charges. Separate account investment management and
advisory fees are also included in universal life and investment-type product   
income. Such fees are recognized in the period in which services are performed. 
Amounts that are charged to operations include interest credited and benefit    
claims incurred in excess of related policyholder account balances.             

OTHER REVENUES                                                                  

Other revenues include broker/dealer commissions and fees, and administrative   
fees. Such commissions and fees are recognized in the period in which services  
are performed.                                                                  

POLICYHOLDER DIVIDENDS                                                          

Policyholder dividends are approved annually by the Company's board of          
directors. The aggregate amount of policyholder dividends is related to actual  
interest, mortality, morbidity and expense experience for the year, as well as  
management's judgment as to the appropriate level of statutory surplus to be    
retained by the Company.                                                        

PARTICIPATING BUSINESS                                                          

Participating business represented approximately 3% of the Company's life       
insurance in force and 9% of the number of life insurance policies in force at  
December 31, 2002 and 2001. Participating policies represented approximately 52%
and 70%, 52% and 67% and 55% and 65% of gross and net life insurance premiums   
for the years ended December 31, 2002, 2001 and 2000, respectively.             

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NEW ENGLAND LIFE INSURANCE COMPANY                                              
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(CONTINUED)                       

INCOME TAXES                                                                    

Beginning in taxable year 2002, NELICO joins with MetLife and its includable    
affiliates in filing a consolidated federal income tax return. Prior to taxable 
year 2002, NELICO and its includable life insurance and non-life insurance      
subsidiaries filed a separate consolidated federal income tax return.           
Non-includable subsidiaries of NELICO file either separate or separate          
consolidated tax returns. Income tax expense has been calculated in accordance  
with the provisions of the Internal Revenue Code, as amended. The Company uses  
the liability method of accounting for income taxes. Income tax provisions are  
based on income reported for financial statement purposes. The future tax       
consequences of temporary differences between financial reporting and tax basis 
of assets and liabilities are measured as of the balance sheet dates and are    
recorded as deferred income tax assets or liabilities.                          

REINSURANCE                                                                     

The Company has reinsured certain of its life insurance contracts with other    
insurance companies under various agreements. Amounts due from reinsurers are   
estimated based upon assumptions consistent with those used in establishing the 
liabilities related to the underlying reinsured contracts. Policy and contract  
liabilities are reported gross of reinsurance credits.                          

SEPARATE ACCOUNTS                                                               

Separate Accounts are established in conformity with the state insurance laws   
and are generally not chargeable with liabilities that arise from any other     
business of the Company. Separate account assets are subject to general account 
claims only to the extent the value of such assets exceeds the separate account 
liabilities. Investments (stated at estimated fair market value) and liabilities
of the separate accounts are reported separately as assets and liabilities.     
Deposits to separate accounts, investment income, and realized and unrealized   
gains and losses on the investments of the separate account accrue directly to  
contract holders and, accordingly, are not reflected in the Company's           
consolidated financial statements. Mortality, policy administration and         
surrender charges to all separate accounts are included in revenues.            

APPLICATION OF ACCOUNTING PRONOUNCEMENTS                                        

In January 2003, the FASB issued FIN 46 which requires certain variable interest
entities to be consolidated by the primary beneficiary of the entity if the     
equity investors in the entity do not have the characteristics of a controlling 
financial interest or do not have sufficient equity at risk for the entity to   
finance its activities without additional subordinated financial support from   
other parties. FIN 46 is effective for all new variable interest entities       
created or acquired after January 31, 2003. For variable interest entities      
created or acquired prior to February 1, 2003, the provisions of FIN 46 must be 
applied for the first interim or annual period beginning after June 15, 2003.   
The Company is in the process of assessing the impact of FIN 46 on its          
consolidated financial statements. Certain disclosure provisions of FIN 46 were 
required for December 31, 2002 financial statements. See "Variable Interest     
Entities."                                                                      

Effective July 1, 2001, the Company adopted SFAS No. 141, Business Combinations 
("SFAS 141"). SFAS 141 requires the purchase method of accounting for all       
business combinations and separate recognition of intangible assets apart from  
goodwill if such intangible assets meet certain criteria. Adoption of SFAS 141  
did not have an impact on the Company's consolidated financial statements for   
2002.                                                                           

Effective January 1, 2002, the Company adopted SFAS No. 142 Goodwill and Other  
Intangible Assets ("SFAS 142"). SFAS 142 eliminates the systematic amortization 
and establishes criteria for measuring the impairment of goodwill and certain   
other intangible assets by reporting unit. The Company did not amortize goodwill
during 2002. Amortization of goodwill was $2 million for both years ended       
December 31, 2001 and 2000. The Company has completed the required impairment   
tests of goodwill and indefinite-lived intangible assets. As a result of these  
tests, the Company recorded a $15 million charge to earnings relating to the    
impairment of all goodwill assets in the fourth quarter of 2002 as a cumulative 
effect of a change in accounting principle.                                     

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NEW ENGLAND LIFE INSURANCE COMPANY                                              
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(CONTINUED)                       

Effective January 1, 2002, the Company adopted SFAS No. 144, Accounting for the 
Impairment or Disposal of Long-Lived Assets ("SFAS 144"). SFAS 144 provides a   
single model for accounting for long-lived assets to be disposed of by          
superseding SFAS No. 121, Accounting for the Impairment of Long-Lived Assets and
for Long-Lived Assets to be Disposed Of ("SFAS 121"), and the accounting and    
reporting provisions of Accounting Principles Board ("APB") Opinion No. 30,     
Reporting the Results of Operations--Reporting the Effects of Disposal of a     
Segment of a Business, and Extraordinary, Unusual and Infrequently Occurring    
Events and Transactions ("APB 30"). Under SFAS 144, discontinued operations are 
measured at the lower of carrying value or fair value less costs to sell, rather
than on a net realizable value basis. Future operating losses relating to       
discontinued operations also are no longer recognized before they occur. SFAS   
144 (i) broadens the definition of a discontinued operation to include a        
component of an entity (rather than a segment of a business); (ii) requires     
long-lived assets to be disposed of other than by sale to be considered held and
used until disposed; and (iii) retains the basic provisions of (a) APB 30       
regarding the presentation of discontinued operations in the statements of      
income, (b) SFAS 121 relating to recognition and measurement of impaired        
long-lived assets (other than goodwill), and (c) SFAS 121 relating to the       
measurement of long-lived assets classified as held-for-sale. Adoption of SFAS  
144 did not have an impact on the Company's consolidated financial statements   
for 2002.                                                                       

In April 2002, the FASB issued SFAS No. 145, Rescission of FASB Statements No.  
4, 44, and 64, Amendment of FASB Statement No. 13, and Technical Corrections. In
addition to amending or rescinding other existing authoritative pronouncements  
to make various technical corrections, clarify meanings, or describe their      
applicability under changed conditions, SFAS 145 generally precludes companies  
from recording gains and losses from the extinguishment of debt as an           
extraordinary item. SFAS 145 also requires sale-leaseback treatment for certain 
modifications of a capital lease that result in the lease being classified as an
operating lease. SFAS 145 is effective for fiscal years beginning after May 15, 
2002, and will not have a significant impact on the Company's consolidated      
results of operations, financial position or cash flows.                        

Effective April 1, 2001, the Company adopted certain additional accounting and  
reporting requirements of SFAS No. 140, Accounting for Transfers and Servicing  
of Financial Assets and Extinguishments of Liabilities -- a Replacement FASB    
Statement No. 125, relating to the derecognition of transferred assets and      
extinguished liabilities and the reporting of servicing assets and liabilities. 
The adoption of these requirements did not have a material impact on the        
Company's consolidated financial statements.                                    

Effective April 1, 2001, the Company adopted EITF 99-20, Recognition of Interest
Income and Impairment on Certain Investments. This pronouncement requires       
investors in certain asset-backed securities to record changes in their         
estimated yield on a prospective basis and to apply specific evaluation methods 
to these securities for an other-than-temporary decline in value. The adoption  
of EITF 99-20 did not have a material impact on the Company's consolidated      
financial statements.                                                           

In July 2001, the SEC released Staff Accounting Bulletin No. 102, Selected Loan 
Loss Allowance and Documentation Issues ("SAB 102"). SAB 102 summarizes certain 
of the SEC's views on the development, documentation and application of a       
systematic methodology for determining allowances for loan and lease losses. The
application of SAB 102 by the Company did not have a material impact on the     
Company's consolidated financial statements.                                    

Effective October 1, 2000, the Company adopted SAB No. 101, Revenue Recognition 
in Financial Statements ("SAB 101"). SAB 101 summarizes certain of the          
Securities and Exchange Commission's views in applying GAAP to revenue          
recognition in financial statements. The requirements of SAB 101 did not have a 
material effect on the Company's consolidated financial statements.             

Effective January 1, 2000, the Company adopted Statement of Position ("SOP") No.
98-7, Accounting for Insurance and Reinsurance Contracts That Do Not Transfer   
Insurance Risk ("SOP 98-7"). SOP 98-7 provides guidance on the method of        
accounting for insurance and reinsurance contracts that do not transfer         
insurance risk, defined in the SOP as the deposit method. SOP 98-7 classifies   
insurance and reinsurance contracts for which the deposit method is appropriate 
into those that (i) transfer only significant timing risk, (ii) transfer only   
significant underwriting risk, (iii) transfer neither significant timing nor    
underwriting risk and (iv) have an indeterminate risk. Adoption of SOP 98-7 did 
not have a material effect on the Company's consolidated financial statements.  

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NEW ENGLAND LIFE INSURANCE COMPANY                                              
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(CONTINUED)                       

2. INVESTMENTS                                                                  

FIXED MATURITIES AND EQUITY SECURITIES                                          

Fixed maturities and equity securities at December 31, 2002 were as follows:    

                                                        [Enlarge/Download Table]

                                                                             GROSS                  
                                                              COST OR      UNREALIZED               
                                                             AMORTIZED    ------------    ESTIMATED 
                                                               COST       GAIN    LOSS    FAIR VALUE
                                                             ---------    ----    ----    ----------
                                                                      (DOLLARS IN MILLIONS)         
                                                                                                    
Fixed maturities:                                                                                   
  U.S. corporate securities.................................    371        19       2         388   
  Mortgage-backed securities................................    147         3      --         150   
  Foreign corporate securities..............................     60         4       1          63   
  U.S. treasuries/agencies..................................     22         2      --          24   
  Asset-backed securities...................................     40         2      --          42   
  Foreign government securities.............................      1        --      --           1   
  Other fixed income assets.................................     17        --      --          17   
                                                               ----       ---      --        ----   
    Total fixed maturities..................................   $658       $30      $3        $685   
                                                               ====       ===      ==        ====   
Equity securities:                                                                                  
  Common stocks.............................................   $ 24       $--      $1        $ 23   
                                                               ====       ===      ==        ====   

Fixed maturities and equity securities at December 31, 2001 were as follows:    

                                                        [Enlarge/Download Table]

                                                                             GROSS                  
                                                              COST OR      UNREALIZED               
                                                             AMORTIZED    ------------    ESTIMATED 
                                                               COST       GAIN    LOSS    FAIR VALUE
                                                             ---------    ----    ----    ----------
                                                                      (DOLLARS IN MILLIONS)         
                                                                                                    
Fixed maturities:                                                                                   
  U.S. corporate securities.................................    179         6       3         182   
  Mortgage-backed securities................................     83        --      --          83   
  Foreign corporate securities..............................     21         1       1          21   
  U.S. treasuries/agencies..................................     27         1      --          28   
  Asset-backed securities...................................     11        --      --          11   
  Foreign government securities.............................      4        --      --           4   
  Other fixed income assets.................................     15        --      --          15   
                                                               ----       ---      --        ----   
    Total fixed maturities..................................   $340       $ 8      $4        $344   
                                                               ====       ===      ==        ====   
Equity securities:                                                                                  
  Common stocks.............................................   $ 30       $--      $3        $ 27   
                                                               ====       ===      ==        ====   

The Company held fixed maturities at estimated fair values that were below      
investment grade or not rated by an independent rating agency that totaled $28  
million for the years ended December 31, 2002 and 2001, respectively. Non-income
producing fixed maturities were $1 million and $657 thousand at December 31,    
2002 and 2001, respectively.                                                    

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NEW ENGLAND LIFE INSURANCE COMPANY                                              
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(CONTINUED)                       

The cost or amortized cost and estimated fair value of bonds at December 31,    
2002, by contractual maturity date are shown below:                             

                                                                [Download Table]

                                                              COST OR               
                                                             AMORTIZED    ESTIMATED 
                                                               COST       FAIR VALUE
                                                             ---------    ----------
                                                              (DOLLARS IN MILLIONS) 
                                                                                    
Due in one year or less.....................................   $ 11          $ 12   
Due after one year through five years.......................    200           207   
Due after five years through ten years......................    179           189   
Due after ten years.........................................     81            84   
                                                               ----          ----   
    Subtotal................................................    471           492   
Mortgage-backed and asset-backed securities.................    187           193   
                                                               ----          ----   
  Total fixed maturities....................................   $658          $685   
                                                               ====          ====   

Fixed maturities not due at a single maturity date have been included in the    
above tables in the year of final maturity. Actual maturities may differ from   
contractual maturities due to the exercise of prepayment options.               

Sales of securities classified as available-for-sale were as follows:           

                                                        [Enlarge/Download Table]

                                                             YEARS ENDED DECEMBER 31, 
                                                             -------------------------
                                                             2002      2001      2000 
                                                             -----     -----     -----
                                                               (DOLLARS IN MILLIONS)  
                                                                                      
Proceeds....................................................  $62      $127      $119 
Gross investment gains......................................    1         2         1 
Gross investment losses.....................................    3         2         1 

Gross investment losses above exclude writedowns recorded during 2002 and 2001  
for other than temporarily impaired available-for-sale securities of $9 million 
and $1 million, respectively. There were no writedowns for the year ended       
December 31, 2000.                                                              

Excluding investments in U.S. Treasury securities and obligations of U.S.       
government corporations and agencies, the Company is not exposed to any         
significant concentration of credit risk in its fixed maturities portfolio.     

ASSETS ON DEPOSIT                                                               

The Company had investment assets on deposit with regulatory agencies with a    
fair market value of $6 million at December 31, 2002 and 2001.                  

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NEW ENGLAND LIFE INSURANCE COMPANY                                              
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(CONTINUED)                       

NET INVESTMENT INCOME                                                           

The components of net investment income were as follows:                        

                                                        [Enlarge/Download Table]

                                                             YEARS ENDED DECEMBER 31,
                                                             ------------------------
                                                             2002      2001      2000
                                                             ----      ----      ----
                                                              (DOLLARS IN MILLIONS)  
                                                                                     
Fixed maturities............................................ $24       $23       $48 
Equity securities...........................................  --         1         2 
Policy loans................................................  15        14        12 
Other limited partnership interests.........................  (6)        5         2 
Cash, cash equivalents and short-term investments...........   4        --        -- 
Other.......................................................   2         2         4 
                                                             ---       ---       --- 
    Total...................................................  39        45        68 
Less: Investment expenses...................................   3         1         5 
                                                             ---       ---       --- 
    Net investment income................................... $36       $44       $63 
                                                             ===       ===       === 

NET INVESTMENT LOSSES                                                           

Net investment losses were as follows:                                          

                                                        [Enlarge/Download Table]

                                                             YEARS ENDED DECEMBER 31, 
                                                             ------------------------ 
                                                             2002      2001      2000 
                                                             ----      ----      ---- 
                                                              (DOLLARS IN MILLIONS)   
                                                                                      
Fixed maturities............................................ $(5)      $--       $ -- 
Equity securities...........................................  (6)       --        (28)
Other.......................................................  --        (1)        (1)
                                                             ----      ---       ---- 
    Total................................................... (11)       (1)       (29)
Amounts allocable to deferred policy acquisition costs......  --        --          1 
                                                             ----      ---       ---- 
    Net investment losses................................... $(11)     $(1)      $(28)
                                                             ====      ===       ==== 

Investment losses have been reduced by deferred policy acquisition costs to the 
extent that such amortization results from investment gains and losses. This    
presentation may not be comparable to presentations made by other insurers.     

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NEW ENGLAND LIFE INSURANCE COMPANY                                              
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(CONTINUED)                       

NET UNREALIZED INVESTMENT GAINS (LOSSES)                                        

The components of net unrealized investment gains (losses), included in         
accumulated other comprehensive income, were as follows:                        

                                                        [Enlarge/Download Table]

                                                             YEARS ENDED DECEMBER 31,
                                                             ------------------------
                                                             2002      2001      2000
                                                             ----      ----      ----
                                                              (DOLLARS IN MILLIONS)  
                                                                                     
Fixed maturities............................................ $27       $ 4       $(5)
Equity securities...........................................  (1)       (3)       (2)
Other invested assets.......................................  (1)       (2)       -- 
                                                             ----      ---       --- 
    Total...................................................  25        (1)       (7)
                                                             ----      ---       --- 
Amounts allocable to:                                                                
  Deferred policy acquisition costs.........................   9         5        (6)
Deferred income taxes....................................... (10)       --         4 
                                                             ----      ---       --- 
    Total...................................................  (1)        5        (2)
                                                             ----      ---       --- 
    Net unrealized investment gains (losses)................ $24       $ 4       $(9)
                                                             ====      ===       === 

The changes in net unrealized investment gains (losses) were as follows:        

                                                        [Enlarge/Download Table]

                                                             YEARS ENDED DECEMBER 31, 
                                                             ------------------------ 
                                                             2002      2001      2000 
                                                             ----      ----      ---- 
                                                              (DOLLARS IN MILLIONS)   
                                                                                      
Balance at January 1........................................ $ 4       $(9)      $(11)
Unrealized gains during the year............................  26         6         25 
Unrealized gains (losses) relating to                                                 
    Deferred policy acquisition costs.......................   4        11        (23)
Deferred income taxes....................................... (10)       (4)        -- 
                                                             ----      ---       ---- 
Balance at December 31...................................... $24       $ 4       $ (9)
                                                             ====      ===       ==== 
Net change in unrealized investment gains................... $20       $13       $  2 
                                                             ====      ===       ==== 

3. FAIR VALUE INFORMATION                                                       

The estimated fair value amounts of financial instruments have been determined  
by using available market information and the valuation methodologies described 
below. Considerable judgment is often required in interpreting market data to   
develop estimates of fair value. Accordingly, the estimates presented herein may
not necessarily be indicative of amounts that could be realized in a current    
market exchange. The use of different assumptions or valuation methodologies may
have a material effect on the estimated fair value amounts.                     

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NEW ENGLAND LIFE INSURANCE COMPANY                                              
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(CONTINUED)                       

Amounts related to the Company's financial instruments were as follows:         

                                                                [Download Table]

                                                             CARRYING    ESTIMATED 
                                                              VALUE      FAIR VALUE
                                                             --------    ----------
                                                             (DOLLARS IN MILLIONS) 
                                                                                   
DECEMBER 31, 2002                                                                  
Assets:                                                                            
  Fixed maturities..........................................   $685         $685   
  Equity securities.........................................     23           23   
  Policy loans..............................................    270          270   
  Short-term investments....................................     34           34   
  Cash and cash equivalents.................................    106          106   
Liabilities:                                                                       
  Policyholder account balances.............................    282          264   

                                                                [Download Table]

                                                             CARRYING    ESTIMATED 
                                                              VALUE      FAIR VALUE
                                                             --------    ----------
                                                             (DOLLARS IN MILLIONS) 
                                                                                   
DECEMBER 31, 2001                                                                  
Assets:                                                                            
  Fixed maturities..........................................   $344         $344   
  Equity securities.........................................     27           27   
  Policy loans..............................................    262          262   
  Cash and cash equivalents.................................    210          210   
Liabilities:                                                                       
  Policyholder account balances.............................    228          222   

The methods and assumptions used to estimate the fair values of financial       
instruments are summarized as follows:                                          

FIXED MATURITIES AND EQUITY SECURITIES                                          

The fair value of fixed maturities and equity securities are based upon         
quotations published by applicable stock exchanges or received from other       
reliable sources. For securities for which the market values were not readily   
available, fair values were estimated using quoted market prices of comparable  
investments.                                                                    

POLICY LOANS                                                                    

The carrying value of policy loans approximate fair value.                      

CASH AND CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS                            

The carrying values for cash and cash equivalents and short-term investments    
approximated fair market values due to the short-term maturities of these       
instruments.                                                                    

POLICYHOLDER ACCOUNT BALANCES                                                   

The fair value of policyholder account balances are estimated by discounting    
expected future cash flows, based on interest rates currently being offered for 
similar contracts with maturities consistent with those remaining for the       
agreements being valued.                                                        

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NEW ENGLAND LIFE INSURANCE COMPANY                                              
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(CONTINUED)                       

4. EMPLOYEE BENEFIT PLANS                                                       

PENSION BENEFIT AND OTHER BENEFIT PLANS                                         

Effective January 1, 2001, the Company's employees became employees of          
Metropolitan Life and in connection with this transition the New England Life   
Insurance Company Retirement Plan and Trust ("NEF Retirement Plan") merged into 
the Metropolitan Life Retirement Plan for United States Employees ("Retirement  
Plan") and the New England 401K Plan and Trust ("NEF 401k Plan") merged into the
Savings and Investment Plan for Employees of Metropolitan Life and Participating
Affiliates ("SIP"). Retirement benefits are based primarily on years of service 
and the employee's average salary.                                              

                                                        [Enlarge/Download Table]

                                                                        DECEMBER 31,           
                                                             ----------------------------------
                                                             PENSION BENEFITS    OTHER BENEFITS
                                                             ----------------    --------------
                                                             2002       2001     2002     2001 
                                                             -----      -----    -----    -----
                                                                   (DOLLARS IN MILLIONS)       
                                                                                               
Change in projected benefit obligation:                                                        
Projected benefit obligation at beginning of year........... $  --      $ 286    $ 13     $ 45 
  Interest cost.............................................    --         --       1        1 
  Actuarial losses (gains)..................................    --         --       3       (1)
  Transfers in (out of controlled group)....................    --       (286)     --      (31)
  Benefits paid.............................................    --         --      (1)      (1)
                                                             -----      -----    ----     ---- 
Projected benefit obligation at end of year.................    --         --      16       13 
                                                             -----      -----    ----     ---- 
Change in plan assets:                                                                         
Contract value of plan assets at beginning of year..........    --        213      --       -- 
  Transfers in (out of controlled group)....................    --       (213)     --       -- 
                                                             -----      -----    ----     ---- 
Contract value of plan assets at end of year................    --         --      --       -- 
Under funded................................................    --         --     (16)     (13)
                                                             -----      -----    ----     ---- 
Unrecognized net actuarial (gains)..........................    --         --     (14)     (18)
                                                             -----      -----    ----     ---- 
Prepaid accrued benefit cost................................ $  --      $  --    $(30)    $(31)
                                                             =====      =====    ====     ==== 

There were no aggregate projected benefit obligation and aggregate contract     
value of plan assets for the pension plans.                                     

The assumptions used in determining the aggregate projected benefit obligation  
and aggregate contract value for the pension and other benefits were as follows:

                                                        [Enlarge/Download Table]

                                                             PENSION BENEFITS     OTHER BENEFITS
                                                             -----------------    --------------
                                                              2002       2001     2002     2001 
                                                             -------    ------    -----    -----
                                                                    (DOLLARS IN MILLIONS)       
                                                                                                
Weighted average assumptions at December 31,                                                    
Discount rate...............................................    N/A       N/A     6.75%    7.40%
Expected rate of return on plan assets......................    N/A       N/A      N/A      N/A 
Rate of compensation increase...............................    N/A       N/A      N/A      N/A 

The assumed health care cost trend rate used in measuring the accumulated       
non-pension post-retirement benefit obligation was generally 9% in 2002,        
gradually decreasing to 5% in 2010 and generally 9.5% in 2001, gradually        
decreasing to 5% over five years.                                               

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NEW ENGLAND LIFE INSURANCE COMPANY                                              
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(CONTINUED)                       

Assumed health care cost trend rates have a significant effect on the amounts   
reported for health care plans. A one-percentage point change in assumed health 
care cost trend rates would have no material effect on the health care plans.   

The components of periodic benefit costs were as follows:                       

                                                        [Enlarge/Download Table]

                                                   PENSION BENEFITS           OTHER BENEFITS    
                                                ----------------------    ----------------------
                                                2002     2001     2000    2002     2001     2000
                                                -----    -----    ----    -----    -----    ----
                                                             (DOLLARS IN MILLIONS)              
                                                                                                
Service cost...................................   --       --       7       --       --       1 
Interest cost..................................   --       --      20        1        1       3 
Expected return on plan assets.................   --       --     (19)      --       --      -- 
Amortization of prior actuarial gains..........   --       --       1       (1)      (1)     (1)
                                                -----    -----    ----    -----    -----    --- 
Net periodic benefit cost...................... $ --     $ --     $ 9     $ --     $ --     $ 3 
                                                =====    =====    ====    =====    =====    === 

SAVINGS AND INVESTMENT PLANS                                                    

The Company sponsored savings and investment plans for substantially all        
employees under which the Company matched a portion of employee contributions.  
The Company contributed $2 million, for the year ended December 31, 2000. As    
previously stated, the NEF 401K Plan was merged into Metropolitan Life's SIP    
plan effective January 1, 2001. All contributions to the SIP plan are made by   
Metropolitan Life.                                                              

5. SEPARATE ACCOUNTS                                                            

The Company has non-guaranteed separate accounts totaling $5,425 million and    
$5,725 million at December 31, 2002 and 2001, respectively, for which the       
policyholder assumes the investment risk.                                       

Fees charged to the separate accounts by the Company (including mortality       
charges, policy administration fees and surrender charges) are reflected in the 
Company's revenues as universal life and investment-type product policy fees and
totaled $54 million, $48 million and $46 million for the years ended December   
31, 2002, 2001 and 2000, respectively. The portfolios are segregated from other 
investments and are managed to minimize liquidity and interest rate risk. In    
order to minimize the risk of disintermediation associated with early           
withdrawals, these investment products carry a graded surrender charge as well  
as a market value adjustment.                                                   

6. COMMITMENTS AND CONTINGENCIES                                                

Under insurance guaranty fund laws in each state, the District of Columbia and  
Puerto Rico, insurers licensed to do business can be assessed by state insurance
guaranty associations for certain obligations of insolvent insurance companies  
to policyholders and claimants. Recent regulatory actions against certain large 
life insurers encountering financial difficulty have prompted various state     
insurance guaranty associations to begin assessing life insurance companies for 
the losses. Most of these laws do provide, however, that an assessment may be   
excused or deferred if it would threaten an insurer's solvency and further      
provide annual limits on such assessments. A large part of the assessments paid 
by the Company's insurance subsidiaries pursuant to these laws may be used as   
credits for a portion of the Company's premium taxes. The Company paid guaranty 
fund assessments of less than one million in 2002, 2001, and 2000.              

Various litigation, claims and assessments against the Company, in addition to  
those otherwise provided for in the Company's consolidated financial statements,
have arisen in the course of the Company's business, including, but not limited 
to, in connection with its activities as an insurer, employer, investor,        
investment advisor and taxpayer. Further, state insurance regulatory authorities
and other Federal and state authorities regularly make inquiries and conduct    
investigations concerning the Company's compliance with applicable insurance and
other laws and regulations.                                                     

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NEW ENGLAND LIFE INSURANCE COMPANY                                              
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(CONTINUED)                       

In some of the matters referred to above, large and/or indeterminate amounts,   
including punitive damages and treble damages, are sought. While it is not      
feasible to predict or determine the ultimate outcome of all pending            
investigations and legal proceedings or provide reasonable ranges of potential  
losses, it is the opinion of the Company's management that their outcomes, after
consideration of available insurance and reinsurance and the provisions made in 
the Company's consolidated financial statements, are not likely to have a       
material adverse effect on the Company's consolidated financial position.       
However, given the large and/or indeterminate amounts sought in certain of these
matters and the inherent unpredictability of litigation, it is possible that an 
adverse outcome in certain matters could, from time to time, have a material    
adverse effect on the Company's operating results or cash flows in particular   
annual periods.                                                                 

7. INCOME TAXES                                                                 

The provision for income tax expense was as follows:                            

                                                        [Enlarge/Download Table]

                                                              YEARS ENDED DECEMBER 31, 
                                                             --------------------------
                                                              2002      2001      2000 
                                                             ------    ------    ------
                                                               (DOLLARS IN MILLIONS)   
                                                                                       
Current:                                                                               
  Federal...................................................  $ 29       $(2)     $ 36 
                                                              ----       ---      ---- 
                                                                29        (2)       36 
                                                              ----       ---      ---- 
Deferred:                                                                              
  Federal...................................................   (15)       44       (12)
  State and local...........................................    --        --         1 
                                                              ----       ---      ---- 
                                                               (15)       44       (11)
                                                              ----       ---      ---- 
Provision for income taxes..................................  $ 14       $42      $ 25 
                                                              ====       ===      ==== 

Reconciliations of the income tax provision at the U.S. statutory rate to the   
provision for income taxes were as follows:                                     

                                                        [Enlarge/Download Table]

                                                             YEARS ENDED DECEMBER 31,
                                                             ------------------------
                                                             2002      2001      2000
                                                             ----      ----      ----
                                                              (DOLLARS IN MILLIONS)  
                                                                                     
Tax provision at U.S. statutory rate........................ $25       $48       $13 
Tax effect of:                                                                       
  Tax exempt investment income..............................  (3)       (2)       -- 
  Sale of Subsidiaries......................................  --        --        10 
  Other, net................................................  (8)       (4)        2 
                                                             ---       ---       --- 
Provision for income taxes.................................. $14       $42       $25 
                                                             ===       ===       === 

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NEW ENGLAND LIFE INSURANCE COMPANY                                              
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(CONTINUED)                       

Deferred income taxes represent the tax effect of the differences between the   
book and tax bases of assets and liabilities. Net deferred income tax           
liabilities consisted of the following:                                         

                                                                [Download Table]

                                                                 DECEMBER 31,     
                                                             ---------------------
                                                              2002          2001  
                                                             -------       -------
                                                             (DOLLARS IN MILLIONS)
                                                                                  
Deferred income tax assets:                                                       
  Policyholder liabilities and receivables..................  $300          $284  
  Tax loss carry-forwards...................................    10            10  
  Other.....................................................    22            20  
                                                              ----          ----  
                                                               332           314  
                                                              ----          ----  
  Less: valuation allowance.................................    10            10  
                                                              ----          ----  
                                                               322           304  
                                                              ----          ----  
Deferred income tax liabilities:                                                  
  Investments...............................................    (5)            6  
  Deferred policy acquisition costs.........................   365           344  
  Net unrealized investment gains...........................    10             4  
  Other.....................................................    15            18  
                                                              ----          ----  
                                                               385           372  
                                                              ----          ----  
Net deferred income tax liability...........................  $(63)         $(68) 
                                                              ====          ====  

8. REINSURANCE                                                                  

The Company's life insurance operations participate in reinsurance activities in
order to limit losses, minimize exposure to large risks, and to provide         
additional capacity for future growth. The Company currently reinsures up to 90%
of the mortality risk for all new individual life insurance policies that it    
writes through its various franchises. Risks in excess of $5 million are 100%   
reinsured. The Company reinsures its business through a diversified group of    
reinsurers. Placement of reinsurance is done primarily on an automatic basis and
also on a facultative basis for risks of specific characteristics. The Company  
is contingently liable with respect to ceded reinsurance should any reinsurer be
unable to meet its obligations under these agreements.                          

In addition to reinsuring mortality risk, the Company reinsures other risks and 
specific coverages. The Company routinely reinsures certain classes of risks in 
order to limit its exposure to particular travel, avocation and lifestyle       
hazards. The Company uses excess of loss and quota share reinsurance            
arrangements to limit its maximum loss, provide greater diversification of risk 
and minimize exposure to larger risks.                                          

The effect of reinsurance on premiums earned is as follows:                     

                                                        [Enlarge/Download Table]

                                                              YEARS ENDED DECEMBER 31,   
                                                             --------------------------- 
                                                             2002       2001       2000  
                                                             -----      -----      ----- 
                                                                (DOLLARS IN MILLIONS)    
                                                                                         
Direct premiums............................................. $ 228      $ 305      $ 221 
Reinsurance assumed.........................................    --        (10)        11 
Reinsurance ceded...........................................  (137)      (178)      (107)
                                                             -----      -----      ----- 
Net premiums................................................ $  91      $ 117      $ 125 
                                                             =====      =====      ===== 
Reinsurance recoveries netted against policyholder                                       
  benefits.................................................. $ 127      $ 102      $  73 
                                                             =====      =====      ===== 

Reinsurance recoverables, included in premiums and other receivables, were $116 
million and $94 million at December 31, 2002 and 2001, respectively.            

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NEW ENGLAND LIFE INSURANCE COMPANY                                              
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(CONTINUED)                       

The following provides an analysis of the activity in the liability for benefits
relating to group accident and non-medical health policies and contracts:       

                                                        [Enlarge/Download Table]

                                                             YEARS ENDED DECEMBER 31,
                                                             ------------------------
                                                             2002      2001      2000
                                                             ----      ----      ----
                                                              (DOLLARS IN MILLIONS)  
                                                                                     
BALANCE AT JANUARY 1........................................ $ 7       $ 4       $ 4 
  Reinsurance recoverables..................................  (5)       (3)       (3)
                                                             ---       ---       --- 
NET BALANCE AT JANUARY 1....................................   2         1         1 
                                                             ---       ---       --- 
Incurred related to:                                                                 
  Current year..............................................   1         1        -- 
                                                             ---       ---       --- 
NET BALANCE AT DECEMBER 31..................................   3         2         1 
  Add: Reinsurance recoverables.............................  10         5         3 
                                                             ---       ---       --- 
BALANCE AT DECEMBER 31...................................... $13       $ 7       $ 4 
                                                             ===       ===       === 

9. OTHER EXPENSES                                                               

Other expenses were comprised of the following:                                 

                                                        [Enlarge/Download Table]

                                                              YEARS ENDED DECEMBER 31,   
                                                             --------------------------- 
                                                             2002       2001       2000  
                                                             -----      -----      ----- 
                                                                (DOLLARS IN MILLIONS)    
                                                                                         
Compensation................................................ $  99      $ 106      $  92 
Commissions.................................................   250        224        234 
Amortization of policy acquisition costs....................   109         63        109 
Capitalization of policy acquisition costs..................  (189)      (216)      (223)
Advisory fees...............................................    84         95         85 
Insurance taxes, licenses, and fees.........................     8         23         27 
Agency allowances...........................................    69         90         86 
Other.......................................................    47         78         80 
                                                             -----      -----      ----- 
  Total other expenses...................................... $ 477      $ 463      $ 490 
                                                             =====      =====      ===== 

10. STOCKHOLDER'S EQUITY                                                        

DIVIDEND RESTRICTIONS                                                           

Stockholder dividends or other distributions proposed to be paid by NELICO must 
be approved by the Massachusetts Commissioner of Insurance (the "Commissioner") 
if such dividends or distributions, together with other dividends or            
distributions made within the preceding 12 months, exceeds the greater of (1)   
10% of NELICO's statutory surplus as regards policyholders as of the previous   
December 31, or (2) NELICO's statutory net gain from operations for the 12 month
period ending the previous December 31. In addition, Dividends cannot be paid   
from a source other than statutory surplus without prior approval of the        
Commissioner. Since NELICO's statutory surplus is less than zero, NELICO cannot 
pay any dividends without prior approval of the Commissioner.                   

The Company paid no common stockholder dividends for the years ended December   
31, 2002, 2001 and 2000. The Company paid preferred dividends of $5 million, $8 
million, and $11 million during the years ended December 31, 2002, 2001, and    
2000, respectively, with prior approval of the Commissioner.                    

STATUTORY EQUITY AND INCOME                                                     

Applicable insurance department regulations require that the insurance          
subsidiaries prepare statutory financial statements in accordance with statutory
accounting practices prescribed or permitted by the insurance department        

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NEW ENGLAND LIFE INSURANCE COMPANY                                              
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(CONTINUED)                       

of the state of domicile. Statutory accounting practices primarily differ from  
GAAP by charging policy acquisition costs to expense as incurred, establishing  
future policy benefit liabilities using different actuarial assumptions,        
reporting surplus notes as surplus instead of debt, and valuing securities on a 
different basis. Statutory net (loss) income of the Company, as filed with the  
Commonwealth of Massachusetts Division of Insurance (the "Division"), was ($35) 
million, $2 million and ($11) million for the years ended 2002, 2001 and 2000,  
respectively; statutory capital and surplus, as filed, was $360 million and $364
million at December 31, 2002 and 2001, respectively.                            

The National Association of Insurance Commissioners ("NAIC") adopted the        
Codification of Statutory Accounting Principles (the "Codification"), which is  
intended to standardize regulatory accounting and reporting to state insurance  
departments, and became effective January 1, 2001. However, statutory accounting
principles continue to be established by individual state laws and permitted    
practices.                                                                      

The Division required adoption of the Codification, with certain modifications, 
for the preparation of statutory financial statements effective January 1, 2001.
The adoption of the Codification, as modified by the Division increased the     
Company's statutory capital and surplus by approximately $32 million, as of     
January 1, 2001. Further modifications by state insurance departments may impact
the effect of the Codification on the Company's statutory capital and surplus.  

11. OTHER COMPREHENSIVE INCOME                                                  

The following table sets forth the reclassification adjustments required for the
years ended December 31, 2002, 2001 and 2000 to avoid double-counting in other  
comprehensive income items that are included as part of net income for the      
current year that have been reported as a part of other comprehensive income in 
the current or prior year:                                                      

                                                        [Enlarge/Download Table]

                                                              YEARS ENDED DECEMBER 31, 
                                                              ------------------------ 
                                                              2002      2001      2000 
                                                              ----      ----      ---- 
                                                               (DOLLARS IN MILLIONS)   
                                                                                       
Holding gains on investments arising during the year........  $10       $20       $ 23 
Income tax effect of holding (gains) or losses..............   (3)       (5)        16 
Reclassification adjustments:                                                          
  Recognized holding losses (gains) included in current year                           
    income..................................................   16       (12)        -- 
  Amortization of premiums and accretion of discounts on                               
    investments.............................................    1        (1)        -- 
  Income tax effect.........................................   (6)        3         -- 
Allocation of holding gains (losses) on investments relating                           
  to other policyholder amounts.............................    4        11        (23)
Income tax effect of allocation of holding gains or losses                             
  to other policyholder amounts.............................   (2)       (3)       (14)
                                                              ---       ----      ---- 
Other comprehensive income..................................  $20       $13       $  2 
                                                              ===       ====      ==== 

12. RELATED PARTY TRANSACTIONS                                                  

Effective 2001, Metropolitan Life and the Company entered into a Master Service 
Agreement for Metropolitan Life to provide all administrative, accounting, legal
and similar services to the Company. This Agreement replaced the former         
Administrative Services Agreement ("ASA") under which the Company provided such 
services for certain Metropolitan Life life insurance and annuity contracts     
defined in the ASA. Metropolitan Life charged the Company $154 million and $73  
million for administrative services in 2002 and 2001 respectively. The Company  
charged Metropolitan Life $164 million for administrative services for 2000. In 
addition, $61 million was charged to Metropolitan Life by the Company for other 
miscellaneous services for 2000. These services were charged based upon direct  
costs incurred. Service fees charged to Metropolitan Life were recorded by      
NELICO as a reduction in operating expenses.                                    

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NEW ENGLAND LIFE INSURANCE COMPANY                                              
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(CONTINUED)                       

During 2002, the Company received $27 million from MetLife for the purchase of  
the Company's computers, furniture and other fixed assets at net book value.    

The Company has preferred stock outstanding of $200 million owned by MetLife    
Credit Corporation. The Company paid $5 million, $8 million and $11 million of  
dividends on the preferred stock in 2002, 2001 and 2000, respectively.          

During 1998 the Company acquired NL Holding and entered into employment         
agreements with key individuals of NL Holding. Under these agreements, which    
expired in 2001, the Company paid $0, $5 million, $0 in 2002, 2001 and 2000,    
respectively.                                                                   

Commissions earned by NES from sales of shares in funds sponsored by New England
Funds ("NEF"), a subsidiary of MetLife through October 2000, were $12 million in
2000. NES earned asset-based income of $10 million on assets under management   
with NEF of approximately $3,500 million in 2000.                               

Management believes intercompany expenses have been calculated on a reasonable  
basis, however these costs may not necessarily be indicative of the costs that  
would be incurred if the Company operated on a standalone basis.                

The Company has various reinsurance agreements with affiliated entities. The    
Company had ceded premium of $34 million, $32 million, and $28 million in 2002, 
2001 and 2000, respectively.                                                    

13. BUSINESS SEGMENT INFORMATION                                                

The Company provides insurance and financial services to customers primarily in 
the United States. The Company's core businesses are divided into five segments:
Individual Life, Individual Annuity, Group Pension, Group Life and Health, and  
Corporate. These segments are managed separately because either they provide    
different products and services, require different strategies, or have different
technology requirements.                                                        

Individual Life sells primarily variable life as well as traditional life       
policies. Individual Annuity sells variable annuity contracts. Group Pension    
sells a variety of group annuity and pension contracts to corporations and other
institutions. Group Life and Health provides group life, medical, and disability
contracts to corporations and small businesses and provides disability income   
coverage to individuals. Through its Corporate segment, the Company reports the 
operating results of subsidiaries as well as items that are not allocated to any
of the business segments.                                                       

Set forth in the following tables is certain financial information with respect 
to the Company's operating segments for the years ended December 31, 2002, 2001 
and 2000. The accounting policies of the segments are the same as those         
described in the summary of significant accounting policies. The Company        
evaluates the performance of each operating segment based on profit or loss from
operations after income taxes. The Company does not allocate non-recurring items
to the segments.                                                                

Allocation of net investment income and net investment gains (losses) were based
on the amount of assets allocated to each segment. Other costs and operating    
costs were allocated to each of the segments based on: (i) a review of the      
nature of such costs, (ii) time studies analyzing the amount of employee        
compensation costs incurred by each segment, and (iii) cost estimates included  
in the Company's product pricing.                                               

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NEW ENGLAND LIFE INSURANCE COMPANY                                              
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(CONTINUED)                       

                                                        [Enlarge/Download Table]

                                                                                           CORPORATE           
AT OR FOR THE YEAR ENDED                    INDIVIDUAL  INDIVIDUAL    GROUP      GROUP        AND              
DECEMBER 31, 2002                              LIFE      ANNUITY     PENSION   LIFE, A&H  SUBSIDIARIES  TOTAL  
------------------------                    ----------  ----------   -------   ---------  ------------  ------ 
                                                                   (DOLLARS IN MILLIONS)                       
                                                                                                               
Premiums..................................    $   75      $    3     $   --       $11        $    2     $   91 
Universal life and investment-type product                                                                     
  policy fees.............................       281          41         10        --            75        407 
Net investment income.....................         6           8          2         1            19         36 
Other revenues............................        13          (3)         4         7           169        190 
Net investment losses.....................        (1)         (1)        --        --            (9)       (11)
Policyholder benefits and claims..........       110           7         --         8             6        131 
Interest credited to policyholder.........        21           6          3        --            --         30 
Policyholders' Dividends..................         5          --         --        --            --          5 
Other Expenses............................       195          36         12         8           226        477 
Income (loss) before provision for income                                                                      
  taxes, cumulative effect of a change in                                                                      
  accounting principle, and minority                                                                           
  interest................................        43          (1)         1         3            24         70 
Provision (benefit) for income taxes......        15          --         --         1            (2)        14 
Income (loss) before cumulative effect of                                                                      
  a change in accounting principle, and                                                                        
  minority interest.......................        28          (1)         1         2            26         56 
Cumulative effect of a change in                                                                               
  accounting principle....................        --          --         --        --           (15)       (15)
Minority interest.........................        --          --         --        --           (25)       (25)
Net income (loss).........................        28          (1)         1         2           (14)        16 
Total assets..............................     3,634       2,270      1,160        16         1,043      8,123 
Deferred policy acquisition costs.........     1,132         118         10         2             7      1,269 
Separate account assets...................     2,317       1,996      1,112        --            --      5,425 
Policyholder liabilities..................     1,031         255         38        22            48      1,394 
Separate account liabilities..............     2,317       1,996      1,112        --            --      5,425 

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NEW ENGLAND LIFE INSURANCE COMPANY                                              
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(CONTINUED)                       

                                                        [Enlarge/Download Table]

                                                                                           CORPORATE           
AT OR FOR THE YEAR ENDED                    INDIVIDUAL  INDIVIDUAL    GROUP      GROUP        AND              
DECEMBER 31, 2001                              LIFE      ANNUITY     PENSION   LIFE, A&H  SUBSIDIARIES  TOTAL  
------------------------                    ----------  ----------   -------   ---------  ------------  ------ 
                                                                   (DOLLARS IN MILLIONS)                       
                                                                                                               
Premiums..................................    $   73      $    1     $   --       $42         $  1      $  117 
Universal life and investment-type product                                                                     
  policy fees.............................       247          30         10        --           64         351 
  Net investment (loss) income............        (6)          3          3         1           43          44 
Other revenues............................         6           3          4        10          198         221 
Net investment gains (losses).............         2          --         --        --           (3)         (1)
Policyholder benefits and claims..........        69           2         (2)       32            3         104 
Interest credited to policyholder.........        18           3          3        --           --          24 
Policyholders' Dividends..................         3          --         --        --           --           3 
Other Expenses............................       160          32          7        13          251         463 
Income before provision for income taxes                                                                       
  and minority interest...................        72          --          9         8           49         138 
Provision for income taxes................        24          --          3         3           12          42 
Income before minority interest...........        48          --          6         5           37          96 
Minority interest.........................        --          --         --        --          (20)        (20)
Net income................................        48          --          6         5           17          76 
Total assets..............................     3,704       2,047      1,252        48          999       8,050 
Deferred policy acquisition costs.........     1,062         101         11         5            6       1,185 
Separate account assets...................     2,709       1,834      1,182        --           --       5,725 
Policyholder liabilities..................       894         182         47        42           39       1,204 
Separate account liabilities..............     2,709       1,834      1,182        --           --       5,725 

                                                        [Enlarge/Download Table]

                                                                                     CORPORATE           
FOR THE YEAR ENDED                  INDIVIDUAL  INDIVIDUAL    GROUP    GROUP LIFE,      AND              
DECEMBER 31, 2000                      LIFE      ANNUITY     PENSION       A&H      SUBSIDIARIES  TOTAL  
------------------                  ----------  ----------   -------   -----------  ------------  ------ 
                                                            (DOLLARS IN MILLIONS)                        
                                                                                                         
Premiums..........................    $  70        $ --       $ --        $ 36         $   19     $  125 
Universal life and investment-type                                                                       
  product policy fees.............      210          25          7          --             30        272 
Net investment (loss) income......      (13)         (1)         1          --             76         63 
Other revenues....................       11          10          7           8            247        283 
Net investment gains (losses).....       35           2         (2)         --            (63)       (28)
Policyholder benefits and                                                                                
  claims..........................       83           6         --          31             30        150 
Interest credited to                                                                                     
  policyholder....................       13           2          3          --              2         20 
Policyholders' Dividends..........        3          --         --          --             15         18 
Other Expenses....................      153          33          8          13            283        490 
Income (loss) before provision for                                                                       
  income taxes....................       61          (5)         2          --            (21)        37 
Provision (benefit) for income                                                                           
  taxes...........................        9          (3)         2          --             17         25 
Net income (loss).................       52          (2)        --          --            (38)        12 

Revenues derived from any single customer do not exceed 10% of the total        
consolidated revenues for the years presented. Revenues were predominantly      
generated from United States activity. Activity from other geographic locations 
did not exceed 10% for any geographic location.                                 

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PART C.      OTHER INFORMATION                                                  

ITEM 24.     Financial Statements and Exhibits                                  

(a)  Financial Statements                                                       

       The following financial statements of the Registrant are included in Part
      B of this Post-Effective Amendment to the Registration Statement on Form
N-4:                                                              

Statement of Assets and Liabilities as of December 31, 2002.      

Statement of Operations for the year ended December 31, 2002.     

      Statement of Changes in Net Assets for the years ended December 31, 2002
and 2001.                                                         

Notes to Financial Statements.                                    

      The following financial statements of the Depositor are included in Part
      B of this Post-Effective Amendment to the Registration Statement on Form
N-4:                                                              

Consolidated Balance Sheets as of December 31, 2002 and 2001.     

      Consolidated Statements of Income and Comprehensive Income for the years
ended December 31, 2002, 2001 and 2000.                           

      Consolidated Statements of Equity for the years ended December 31, 2002,
2001 and 2000.                                                    

    Consolidated Statements of Cash Flows for the years ended December 31,
2002, 2001 and 2000.                                              

Notes to Consolidated Financial Statements.                       

(b)  Exhibits                                                                   

      (1) Resolutions of the Board of Directors of New England Variable Life
       Insurance Company, the Depositor, establishing the New England Variable
      Annuity Separate Account (effective July 1, 1994), the Registrant, are
     incorporated herein by reference to Post-Effective Amendment No. 5 to
     the Registration Statement on Form N-4 (No. 33-85442) filed on May 1,
1998.                                                           

(2) None.                                                         

(3) (i) Form of Distribution Agreement is incorporated herein by  
       reference to Post-Effective Amendment No. 5 to the Registration Statement
on Form N-4 (No. 33-85442) filed on May 1, 1998.                  

(ii) Form of Selling Agreement with other broker-dealers is       
       incorporated herein by reference to Post-Effective Amendment No. 5 to the
     Registration Statement on Form N-4 (No. 33-85442) filed on May 1, 1998.

(iii) Additional Form of Selling Agreement with broker-dealers is 
    incorporated herein by reference to the Registration Statement on Form
N-4 (No. 33-64879) filed on December 11, 1995.                    

   (iv) Additional Forms of Selling Agreement are incorporated herein by
       reference to Post-Effective Amendment No. 4 to the Registration Statement
on Form N-4 (No. 33-85442) filed on April 30, 1997.               

 (4) (i) Form of Variable Annuity Contract is incorporated herein by
       reference to the Registration Statement on Form N-4 (No. 333-51676) filed
on December 12, 2000.                                             

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      (ii) Forms of Endorsements: (Enhanced Dollar Cost Averaging Rider; Three
       Month Market Entry Rider; Waiver of Withdrawal Charge for Nursing Home or
  Hospital Confinement Rider; Waiver of Withdrawal Charge for Terminal
       Illness Rider; Fixed Account Rider for Variable Annuity; Additional Death
 Benefit Rider [-Earnings Preservation Benefit]; Death Benefit Rider
     [-Greater of Annual Step-up or 5% Annual decrease]; Death Benefit Rider
    [-Return of Purchase Payments]; Death Benefit Rider [-Annual Step-up];
Guaranteed Minimum Income Benefit [-Living Benefit]; and Purchase 
      Payment Credit) are incorporated herein by reference to the Registration
Statement on Form N-4 (No. 333-51676) filed on December 12, 2000. 

(iii) Form of Variable Annuity Contract is incorporated herein by 
      reference to Pre-Effective Amendment No. 1 to the Registration Statement
on Form N-4 (No. 333-51676) filed on May 15, 2001.                

    (iv) Forms of Endorsements: (Fixed Account Rider for Variable Annuity,
     NEL-500 (05/01); Enhanced Dollar Cost Averaging Rider, NEL-510 (05/01);
  Three Month Market Entry Rider, NEL 520 (05/01); Death Benefit Rider
  [-Return of Purchase Payments], NEL-530 (05/01); Death Benefit Rider
  [-Greater of Annual Step-up or 5% Annual Increase], NEL-540 (05/01);
Death Benefit Rider [-Annual Step-up], NEL-550 (05/01); Guaranteed
Minimum Income Benefit Rider [-Living Benefit], NEL-560 (05/01);  
      Additional Death Benefit Rider [-Earnings Preservation Benefit], NEL-570
(05/01); Purchase Payment Credit Rider NEL-580 (05/01); Waiver of 
       Withdrawal Charge for Nursing Home or Hospital Confinement Rider, NEL-590
      (05/01); Waiver of Withdrawal Charge for Terminal Illness Rider, NEL-595
       (05/01); Individual Retirement Annuity Endorsement, NEL-408 (05/01); Roth
  Individual Retirement Annuity Endorsement, NEL-446 (05/01); 401 Plan
     Endorsement, NEL-401 (05/01); Tax Sheltered Annuity Endorsement NEL-398
     (05/01); Waiver of Withdrawal Charge for Disability Rider VE-6 (05/01);
      and Unisex Annuity Rates Rider, VE-9 (05/01)) are incorporated herein by
      reference to Pre-Effective Amendment No. 1 to the Registration Statement
on Form N-4 (No. 333-51676) filed on May 15, 2001.                

    (v) Forms of Endorsements: Tax Sheltered Annuity Endorsement NEL-398.2
    (09/02); 401 Plan Endorsement NEL-401.2 (09/02); Individual Retirement
 Annuity Endorsement NEL-408.2 (09/02); Simple Individual Retirement
Annuity Endorsement (NEL-439.1 (09/02); Roth Individual Retirement
Annuity Endorsement NEL-446.2 (09/02) are filed herewith.         

    (5) (i) Form of Application is incorporated herein by reference to the
      Registration Statement on Form N-4 (No. 333-51676) filed on December 12,
2000.                                                             

(ii) Form of Application (NEA APP-1-02) is incorporated herein by 
       reference to the Registration Statement on Form N-4 (No. 333-51676) filed
on April 29, 2002.                                                

(iii) Form of Application (NEA APP-1-02) is filed herewith.       

      (6) (i) Amended and Restated Articles of Organization of Depositor dated
     August 30, 1996 (effective September 4, 1996) is incorporated herein by
       reference to Post-Effective Amendment No. 4 to the Registration Statement
on Form N-4 (No. 33-85442) filed on April 30, 1997.               

       (ii) Amended and Restated By-Laws of Depositor are incorporated herein by
       reference to Post-Effective Amendment No. 5 to the Registration Statement
on Form N-4 (No. 33-85442) filed on May 1, 1998.                  

(iii) Amendments (dated December 2, 1998) to Amended and Restated 
Articles of Organization of Depositor are incorporated herein by  
       reference to Post-Effective Amendment No. 9 to the Registration Statement
on Form N-4 (No. 33-85442) filed on April 28, 1999.               

      (iv) Amended and Restated By-Laws of Depositor (effective March 16,2001)
       is incorporated herein by reference to Post-Effective Amendment No. 13 to
      the Registration Statement on Form N-4 (No. 33-85442) filed on April 27,
2001.                                                             

    (7) Automatic Reinsurance Agreement between New England Life Insurance
    Company and Exeter Reassurance Company Ltd. Agreement No.__, effective
April 1, 2001 and dated June 26, 2001 is filed herewith.          

     (8) (i) Form of Participation Agreement among Metropolitan Series Fund,
      Inc., Metropolitan Life Insurance Company and New England Life Insurance
     Company is incorporated herein by reference to Post-Effective Amendment
       No. 26 to the Registration Statement of Metropolitan Series Fund, Inc. on
Form N-1A (File No. 2-80751) filed on April 6, 2000.              

(ii) Participation Agreement among Metropolitan Series Fund, Inc.,
Metropolitan Life Insurance Company and New England Life Insurance
Company dated May 1, 2000 is incorporated herein by reference to  
       Post-Effective Amendment No. 11 to the Registration Statement on Form N-4
(No. 33-85442) filed on January 19, 2001.                         

      (iii) Participation Agreement among New England Zenith Fund, New England
     Investment Management, Inc., New England Securities Corporation and New
     England Life Insurance Company dated May 1, 2000 is incorporated herein
 by reference to Post-Effective Amendment No. 11 to the Registration
Statement on Form N-4 (No. 33-85442) filed on January 19, 2001.   

      (iv) Fund Participation Agreement among American Funds Insurance Series,
    Capital Research and Management Company and New England Life Insurance
  Company dated April 30, 2001, is incorporated herein by reference to
     Pre-Effective Amendment No. 1 to the Registration Statement on Form N-4
(No. 333-51676) filed on May 15, 2001.                            

(v) Participation Agreement among Met Investors Series Trust, Met 
  Investors Advisory Corp., Met Investors Distribution Company and New
 England Life Insurance Company dated April 30, 2002 is incorporated
  herein by reference to the initial Registration Statement of the New
      England Variable Life Separate Account on Form S-6 (No. 333-73676) filed
on November 19, 2001.                                             

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      (9) Opinion and Consent of Anne M. Goggin, Esq. (NELICO) filed herewith.

(10) (i) Consent of Deloitte & Touche LLP filed herewith.         

(ii) Consent of Sutherland Asbill & Brennan LLP filed herewith.   

(11) None                                                         

(12) None                                                         

(13) Schedules of Computations for Performance Quotations are     
      incorporated herein by reference to Pre-Effective Amendment No. 1 to the
       Registration Statement on Form N-4 (No. 333-51676) filed on May 15, 2001.

     (14) (i) Powers of Attorney are incorporated herein by reference to the
Registration Statement of the New England Variable Life Separate  
  Account, Post-Effective Amendment No. 1, on Form N-6 (No. 333-73676)
filed as Exhibit (r) on December 13, 2002.                        

ITEM 25 DIRECTORS AND OFFICERS OF THE DEPOSITOR                                 

                                                        [Enlarge/Download Table]

     Name and Principal Business Address   Positions and Offices with Depositor          
                                                                                         
C. Robert Henrikson(2)                    Chairman, President and Chief Executive Officer

Thom A. Faria(1)                          Director and President, New England Financial  
                                          Distribution                                   

Stewart G. Nagler(2)                      Director                                       

Catherine A. Rein(3)                      Director                                       

Stanley J. Talbi(2)                       Director                                       

Lisa M. Weber(2)                          Director                                       

William J. Wheeler(2)                     Director                                       

David W. Allen(1)                         Senior Vice President                          

Mary Ann Brown(4)                         Senior Vice President and Chief Actuary        

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                                                                [Download Table]
                                                                         
James D. Gaughan(2)       Secretary and Clerk                            

Anne M. Goggin(1)         Senior Vice President and General Counsel      

Alan C. Leland, Jr.(1)    Senior Vice President                          

George J. Maloof(1)       Executive Vice President                       

Hugh C. McHaffie(1)       Senior Vice President                          

Scott D. McInturff(1)     Senior Vice President and Actuary              

Stephen J. McLaughlin(1)  Senior Vice President                          

Thomas W. Moore(1)        Senior Vice President                          

Anthony J. Williamson(4)  Senior Vice President and Treasurer (Principal 
                          Financial Officer)                             

Virginia M. Wilson(4)     Senior Vice President and Controller (Principal
                          Accounting Officer)                            

(1)   New England Financial, 501 Boylston Street, Boston, MA 02117              

(2)   MetLife, One Madison Avenue, New York, NY 10010                           

(3)   Metropolitan Property and Casualty Insurance Company, 700 Quaker Lane,    
Warwick, RI 02887                                                   

(4)   MetLife, 1 MetLife Plaza, 27-01 Queens Plaza North, Long Island, City NY  
11101                                                               

ITEM 26      PERSONS CONTROLLED BY OR UNDER COMMON CONTROL WITH THE INSURANCE   
COMPANY OR REGISTRANT                                                           

The Registrant is a separate account of New England Life Insurance Company under
Massachusetts Insurance law. New England Life Insurance Company is a            
wholly-owned, indirect subsidiary of Metropolitan Life Insurance Company, which 
is organized under the laws of New York. Metropolitan Life Insurance Company is 
a wholly-owned subsidiary of MetLife, Inc. a publicly traded company. The       
following outline indicates those entities that are controlled by MetLife Inc.  
or are under the common control of MetLife, Inc.                                

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ORGANIZATIONAL STRUCTURE OF METLIFE, INC. AND SUBSIDIARIES  
 AS OF DECEMBER 31, 2002

The following is a list of subsidiaries of MetLife, Inc. updated as of December 
31, 2002. Those entities which are listed at the left margin (labeled with      
capital letters) are direct subsidiaries of MetLife, Inc. Unless otherwise      
indicated, each entity which is indented under another entity is a subsidiary of
that other entity and, therefore, an indirect subsidiary of MetLife, Inc.       
Certain inactive subsidiaries have been omitted from the MetLife, Inc.          
Organizational listing. The voting securities (excluding directors' qualifying  
shares, if any) of the subsidiaries listed are 100% owned by their respective   
parent corporations, unless otherwise indicated. The jurisdiction of domicile of
each subsidiary listed is set forth in the parenthetical following such         
subsidiary.                                                                     

A.    MetLife Group, Inc. (NY)                                                  

B.    MetLife Bank National Association  (USA)                                  

C.    Exeter Reassurance Company, Ltd. (Bermuda)                                

D.    MetLife Capital Trust I (DE)                                              

E.    Aseguradora Hidalgo, S.A. (Mexico)                                        

F.    Metropolitan Insurance and Annuity Company (DE)                           

G.    MetLife Pensiones S.A. (Mexico)- Ownership of MetLife Pensiones S.A. and  
Seguros Genesis, S.A. (Mexico) is as follows: MetLife, Inc. owns 97.4738%, and  
Metropolitan Asset Management Corporation owns 2.5262%.                         

H.    MetLife Chile Inversiones Limitada (Chile)- 99.9999999% is owned by Met-  
Life, Inc. and 0.0000001% is owned by Natiloportem Holdings, Inc.               

    1.    MetLife Chile Reaseguros de Vida S.A. (Chile)- 99.999735% is owned
       by MetLife Chile Inversiones Limitada and 0.000265% is owned by
MetLife International Holdings, Inc.                    

     2.    MetLife Chile Seguros de Vida S.A. (Chile)- 95.7302007% is owned by
       MetLife Chile Inversiones Limitada, 4.2696274% by MetLife Chile
       Reaseguros de Vida S.A. and 0.0001719% by MetLife International
Holdings, Inc.                                          

I.    Seguros Genesis S.A. (Mexico)- Ownership of MetLife Pensiones S.A. and    
Seguros Genesis, S.A. (Mexico) is as follows: MetLife, Inc. owns 97.4738%, and  
Metropolitan Asset Management Corporation owns 2.5262%.                         

J.    Metropolitan Life Seguros de Vida S.A. (Uruguay)                          

1.    Jefferson Pilot Omega Seguros de Vida S.A. (Uruguay)          

K.    Cova Corporation (MO)                                                     

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1.    Texas Life Insurance Company (TX)                             

a)    Texas Life Agency Services, Inc. (TX)             

b)    Texas Life Agency Services of Kansas, Inc. (KS)   

2.    Cova Life Management Company (DE)                             

3.    MetLife Investors Insurance Company (MO)                      

    a)    MetLife Investors Insurance Company of California (CA)

b)    First MetLife Investors Insurance Company (NY)    

L.    Walnut Street Securities, Inc. (MO)                                       

1.    WSS Insurance Agency of Massachusetts, Inc. (MA)              

2.    Walnut Street Advisers, Inc. (MO)                             

3.    WSS Insurance Agency of Nevada, Inc. (NV)                     

M.    MetLife Investors Group, Inc. (DE)                                        

1.    MetLife Investors USA Insurance Company (DE)                  

2.    MetLife Investors Group of Ohio (OH)                          

3.    Security First Insurance Agency (MA)                          

4.    MetLife Investors Distribution Company (DE)                   

5.    MetLife Investors Insurance Agency, Inc. (Nevada)             

6.    Met Investors Advisory, LLC (DE)                              

7.    MetLife Investors Financial Agency, Inc. (TX)                 

N.    MetLife International Holdings, Inc. (DE)                                 

      1.    MetLife Iberia, S.A.(Spain)- Shares of MetLife Iberia, S.A. are held
by MetLife International Holdings at 80%.               

a)    Seguros Genesis S.A. (Spain)                      

     b)    Genesis Seguros Gnerales, Sociedad Anonima de Seguros y
Reaseguros (Spain)                          

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2.    Natiloportem Holdings, Inc.(DE)                               

            a)    Metropolitan Life Insurance Services Limited (United Kingdom)-
             50% of the shares of Metropolitan Life Insurance Services
            Limited are held by Metropolitan Life Insurance Company.

b)    Metropolitan Company Limited (Isle of Man)        

  c)    Servicios Administrativos Gen, S.A. de C.V. (Mexico)

           d)    European Marketing Services S.r.l. (Italy)- 95% of the shares
                 of European Marketing Services S.r.l are held by Natiloportem
           Holdings, Inc. and 5% are held by MetLife International
Holdings, Inc.                              

    3.    MetLife India Insurance Company Private Limited (India)-26% of the
          shares of MetLife India Insurance Company Private Limited are held
         by MetLife International Holdings, Inc. and 74% by third parties.

      4.    Metropolitan Life Insurance Company of Hong Kong Limited (Hong Kong)

5.    Metropolitan Life Seguros de Retiro S.A. (Argentina)          

6.    Metropolitan Life Seguros de Vida S.A. (Argentina)            

           a)    Met AFJP S.A. (Argentina)- 95% of the shares of Met AFJP S.A.
                  are held by Metropolitan Life Seguros de Vida S.A. (Argentina)
            and 5% of the shares are held by Metropolitan Seguros de
Retiro S.A.                                 

   7.    MetLife Services Company Czechia, s.r.o. (Czech Republic)- 10% of
  the shares of MetLife Services Company Czechia are held by
     Natiloportem Holdings, Inc. and 90% of the shares are held by
MetLife International Holdings, Inc.                    

  8.    Metropolitan Life Ubezpieczen na Zycie S.A. (Poland)- 48% of the
      shares of Metropolitan Life Ubezpieczen na Zycie S.A. are held
directly by MetLife, Inc.                               

9.    MetLife Insurance Company of Korea Limited (South Korea)      

10.   Metropolitan Life Seguros e Previdencia Privada S.A. (Brazil) 

       a)    Seguradora Seasul S.A. (Brazil) - 99.89% of the shares of
                  Seguradora Seasul S.A. are held by Metropolitan Life Seguros e
Previdencia Privada S.A.                    

O.    Metropolitan Life Insurance Company (NY)                                  

1.    334 Madison Avenue BTP-D Holdings, LLC (DE)                   

2.    334 Madison Avenue BTP-E Holdings, LLC (DE)                   

3.    334 Madison Avenue Euro Investments, Inc. (DE)                

            a)    Park Twenty Three Investments Company (United Kingdom)- 99% of
            the voting control of Park Twenty Three Investments Four
                Company is held by 334 Madison Euro Investments, Inc. and 1%
       is held by St. James Fleet Investments Two Limited.

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               (1)   Convent Station Euro Investments Four Company (United
                      Kingdom)- 99% of the voting control of Convent Station
                    Euro Investments Four Company is held by Park Twenty
                    Three Investments Company and 1% by 334 Madison Euro
                  Investments, Inc. as nominee for Park Twenty Three
Investments Company.            

      4.    St. James Fleet Investments Two Limited (Cayman Islands)- 34% of the
    shares of St. James Fleet Investments Two Limited is held by
Metropolitan Life Insurance Company.                    

    5.    One Madison Investments (Cayco) Limited (Cayman Islands)- 89.9% of
        the voting control of One Madison Investments (Cayco) Limited is
        held by Metropolitan Life Insurance Company and 10.1% is held by
Convent Station Euro Investments Four Company.          

    6.    CRB Co, Inc.(MA)- AEW Estate Advisors, Inc. holds 49,000 preferred
       non-voting shares of CRB Co., Inc. and AEW Advisors, Inc. holds
1,000 preferred non-voting shares of CRB, Co., Inc.     

7.    GA Holding Corp. (MA)                                         

8.    CRH Co., Inc. (MA)                                            

9.    L/C Development Corporation (CA)                              

10.   New England Portfolio Advisors, Inc. (MA)                     

11.   Benefit Services Corporation (GA)                             

12.   One Madison Merchandising L.L.C. (CT)                         

13.   Transmountain Land & Livestock Company (MT)                   

14.   MetPark Funding, Inc. (DE)                                    

15.   HPZ Assets LLC (DE)                                           

16.   MetDent, Inc. (DE)                                            

17.   Missouri Reinsurance (Barbados), Inc. (Barbados)              

18.   Metropolitan Tower Realty Company, Inc. (DE)                  

19.   Metropolitan Tower Life Insurance Company (DE)                

20.   Security Equity Life Insurance Company (NY)                   

21.   MetLife Security Insurance Company of Louisiana (LA)          

    22.   P.T. MetLife Sejahtera (Indonesia)-94.3% of P.T. MetLife Sejahtera
is held by Metropolitan Life Insurance Company.         

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23.   Met Life Holdings Luxembourg S.A. (Luxembourg)                

24.   Metropolitan Life Holdings Netherlands BV (Netherlands)       

25.   MetLife (India) Private Ltd. (India)                          

26.   Metropolitan Marine Way Investments Limited (Canada)          

27.   MetLife Central European Services Spolka z Organiczona        
Odpowiedzialmoscia (Poland)                             

28.   MetLife Investments Ireland Limited (Ireland)                 

29.   MetLife Private Equity Holdings, LLC (DE)                     

30.   MetLife Securities, Inc. (DE)                                 

31.   23rd Street Investments, Inc. (DE)                            

a)    Mezzanine Investment Limited Partnership-BDR (DE).
           Metropolitan Life Insurance Company holds a 99% limited
        partnership interest in Mezzanine Investment Limited
                  Partnership-BDR. 23rd Street Investments, Inc. is a 1% general
partner.                                    

           b)    Mezzanine Investment Limited Partnership-LG (DE). 23rd Street
          Investments, Inc. is a 1% general partner of Mezzanine
                  Investment Limited Partnership-LG. Metropolitan Life Insurance
                 Company holds a 99% limited partnership interest in Mezzanine
Investment Limited Partnership-LG.          

       (1)   Coating Technologies International, Inc. (DE)

32.   Metropolitan Realty Management, Inc. (DE)                     

a)    Edison Supply and Distribution (DE)               

b)    Cross & Brown Company (NY)                        

(1)   CBNJ, Inc.(NJ)                        

33.   Hyatt Legal Plans, Inc. (DE)                                  

a)    Hyatt Legal Plans of Florida, Inc. (FL)           

34.   MetLife Holdings, Inc.                                        

a)    MetLife Credit Corp.                              

b)    MetLife Funding, Inc.                             

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35.   Metropolitan Property & Casualty Insurance Company            

a)    Metropolitan General Insurance Company (RI)       

b)    Metropolitan Casualty Insurance Company (RI)      

         c)    Metropolitan Direct Property and Casualty Insurance Company
(RI)                                        

d)    Met P&C Managing General Agency, Inc.(TX)         

e)    MetLife Auto & Home Insurance Agency, Inc. (RI)   

        f)    Metropolitan Group Property and Casualty Insurance Company
(RI)                                        

                 (1)   Metropolitan Reinsurance Company (U.K.) Limited (United
Kingdom)                        

g)    Metropolitan Lloyds, Inc. (TX)                    

              (1)   Metropolitan Lloyds Insurance Company of Texas (TX)-
                  Metropolitan Lloyds Insurance Company of Texas, an
                      affiliated association, provides homeowner and related
                       insurance for the Texas market. It is an association of
                    individuals designated as underwriters. Metropolitan
                       Lloyds, Inc., a subsidiary of Metropolitan Property and
         Casualty Insurance Company, serves as the
             attorney-in-fact and manages the association.

h)    Economy Fire & Casualty Company (IL)              

  (1)   Economy Preferred Insurance Company (IL)

(2)   Economy Premier Assurance Company (IL)

36.   SSRM Holdings, Inc. (DE)                                      

a)    State Street Research & Management Company (DE)   

              (1)   State Street Research Investment Services, Inc. (MA)

b)    SSR Realty Advisors, Inc. (DE)                    

(1)   Metric Management, Inc.(DE)           

(2)   Metric Assignor, Inc. (CA)            

(3)   SSR AV, Inc. (DE)                     

(4)   Metric Capital Corporation (CA)       

(5)   SSR Development Partners LLC (DE)     

              (6)   Metric Property Management, Inc. (DE)- 50% of Metric
                    Property Management is held by Metric Realty and SSR
Realty Advisors, Inc.           

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                 (7)   Metric Realty (IL)- 50% of Metric Realty is held by SSR
Realty Advisors, Inc.           

37.   Metropolitan Asset Management Corporation (DE)                

           a)    MetLife Capital Credit L.P. (DE) - 73.78% Limited Partnership
               interest of MetLife Capital Credit L.P. is held directly by
       Metropolitan Life Insurance Company and 10% General
                  Partnership interest of MetLife Capital Credit L.P. is held by
Metropolitan Asset Management Corporation.  

 (1)   MetLife Capital CFLI Holdings, LLC (DE)

            (a)   MetLife Capital CFLI Leasing, LLC (DE)

      b)    MetLife Capital Limited Partnership (DE)- 73.78% Limited
              Partnership interest is held directly by Metropolitan Life
              Insurance Company and 9.58% Limited Partnership and 16.64%
                General Partnership interests are held by Metropolitan Asset
Management Corporation.                     

        c)    MetLife Investments Asia Limited (Hong Kong)- One share of
             MetLife Investments Asia Limited is held by W&C Services,
                 Inc., a nominee of Metropolitan Asset Management Corporation.

       d)    MetLife Investments Limited (United Kingdom)- 23rd Street
                Investments, Inc. holds one share of MetLife Investments and
             MetLife Investments, S.A. and 1% of MetLife Latin America
Asesorias e Inversiones Limitada.           

            e)    MetLife Investments, S.A.(Argentina)- 23rd Street Investments,
           Inc. holds one share of MetLife Investments and MetLife
                 Investments, S.A. and 1% of MetLife Latin America Asesorias e
Inversiones Limitada.                       

    f)    MetLife Latin America Asesorias e Inversiones Limitada
             (Chile)- 23rd Street Investments, Inc. holds one share of
               MetLife Investments and MetLife Investments, S.A. and 1% of
           MetLife Latin America Asesorias e Inversiones Limitada.

38.   MetLife General Insurance Agency, Inc. (DE)                   

    a)    MetLife General Insurance Agency of Alabama, Inc. (DE)

     b)    MetLife General Insurance Agency of Kentucky, Inc. (DE)

        c)    MetLife General Insurance Agency of Mississippi, Inc. (DE)

           d)    MetLife General Insurance Agency of North Carolina, Inc. (DE)

 e)    MetLife General Insurance Agency of Texas, Inc.(DE)

          f)    MetLife General Insurance Agency of Massachusetts, Inc. (MA)

39.   MetLife New England Holdings, Inc. (DE)                       

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a)    New England Life Insurance Company (MA)           

(1)   New England Life Holdings, Inc. (DE)  

               (a)   New England Securities Corporation (MA)

          (b)   Hereford Insurance Agency, Inc. (MA)

                    (c)   Hereford Insurance Agency of Hawaii, Inc. (HI)

                    (d)   Fairfield Insurance Agency of Texas, Inc. (TX)

(e)   MetLife Advisers, LLC (MA)

   (f)   N.L. Holding Corp. (DEL) (NY)

                    (i) Nathan & Lewis Securities, Inc. (NY)

                             (ii) Nathan & Lewis Associates-Arizona, Inc. (AZ)

                     (iii) Nathan & Lewis of Nevada, Inc. (NV)

                     (iv) Nathan & Lewis Associates, Inc. (NY)

                                  (A)   Nathan and Lewis Insurance Agency of
                            Massachusetts, Inc. (MA)

                                   (B)   Nathan and Lewis Associates of Texas,
             Inc. (TX)

      (2)   Newbury Insurance Company, Limited (Bermuda)

      (3)   New England Pension and Annuity Company (DE)

(4)   Omega Reinsurance Corporation (AZ)    

40.   GenAmerica Financial Corporation (MO)                         

a)    GenAmerica Capital I (DE)                         

b)    General American Distributors, Inc. (MO)          

c)    General American Life Insurance Company (MO)      

(1)   Paragon Life Insurance Company (MO)   

  (2)   John S. McSwaney & Associates, Inc. (ND)

            (3)   GenAmerica Management Corporation (MO)- 90% of the
                      voting shares of GenAmerica Management Corporation are
                 owned by General American Life Insurance Company.

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(4)   Krisman, Inc. (MO)                    

(5)   White Oak Royalty Company (OK)        

(6)   Equity Intermediary Company (MO)      

                      (a)   Reinsurance Group of America, Incorporated (MO)-
                  48.9% of Reinsurance Group of America,
                       Incorporated is held by Equity Intermediary
                    Company and 9.6% of the voting shares of
                              Reinsurance Group of America, Incorporated is held
                            directly by Metropolitan Life Insurance Company.

                  (i)   Reinsurance Company of Missouri,
         Incorporated (MO)

                          (A)   RGA Reinsurance Company (MO)

                                     (aa)  Fairfield Management Group,
                        Inc.(MO)

                                                (a.1) Reinsurance Partners, Inc.
                                (MO)

                                              (a.2) Great Rivers Reinsurance
                                                 Management, Inc. (MO)

                                             (a.3) RGA (U.K.) Underwriting
                                                  Agency Limited (United
                                    Kingdom)

                            (ii)  Triad Re, Ltd. (Barbados)-67% of Triad Re,
                            Ltd. is held by Reinsurance Group of
                             America, Incorporated and 100% of the
                                 preferred stock of Triad Re, Ltd. is also
                            held by Reinsurance Group of America
     Incorporated.

                            (iii) RGA Sigma Reinsurance SPC (Cayman Islands)

                        (iv)  RGA Americas Reinsurance Company, Ltd.
  (Barbados)

                         (v)   RGA Reinsurance Company (Barbados) Ltd.
  (Barbados)

                                   (A)   RGA Financial Group, L.L.C. (DE)- 80%
                                          of RGA Financial Group, L.L.C. is held
                                         by RGA Reinsurance Company (Barbados)
                                        Ltd. and 20% of RGA Financial Group,
                                          LLC is held by RGA Reinsurance Company

                        (vi)  RGA Life Reinsurance Company of Canada
(Canada)

                             (vii) RGA International Corporation (Nova Scotia)

                            (A)   RGA Financial Products Limited
            (Canada)

                              (viii) RGA Holdings Limited (U.K) (United Kingdom)

                          (ix)  RGA UK Services Limited (United Kingdom)

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                           (x)   RGA Capital Limited U.K. (United Kingdom)

                      (xi)  RGA Reinsurance (UK) Limited (United
Kingdom)

                              (xii) RGA South African Holdings (Pty) Ltd. (South
Africa) 

                              (A)   RGA Reinsurance Company of South
                                 Africa Limited (South Africa)

                     (xiii)RGA Australian Holdings PTY Limited
   (Australia)

                                  (A)   RGA Reinsurance Company of Australia
                       Limited (Australia)

                           (B)   RGA Asia Pacific PTY, Limited
               (Australia)

                             (xiv) General American Argentina Seguros de Vida,
        S.A. (Argentina)

                (xv)  RGA Argentina S.A. (Argentina)

                  (xvi) Regal Atlantic Company (Bermuda)
     Ltd.(Bermuda)

                        (xvii)Malaysia Life Reinsurance Group Berhad
                                 (Malaysia)- 30% interest of Malaysia Life
                           Reinsurance Group Berhad is held by
                                   Reinsurance Group of America, Incorporated.

The voting securities (excluding directors' qualifying shares, if any) of each  
subsidiary shown on the organizational chart are 100% owned by their respective 
parent corporation, unless otherwise indicated.                                 

In addition to the entities shown on the organizational chart, MetLife, Inc. (or
where indicated, a subsidiary) also owns interests in the following entities:   

1) Metropolitan Structures is a general partnership in which Metropolitan Life  
Insurance Company owns a 50% interest.                                          

2) Metropolitan Life Insurance Company owns varying interests in certain mutual 
funds distributed by its affiliates. These ownership interests are generally    
expected to decrease as shares of the funds are purchased by unaffiliated       
investors.                                                                      

3) Metropolitan Life Insurance Company indirectly owns 100% of the non-voting   
preferred stock of Nathan and Lewis Associates Ohio, Incorporated, an insurance 
agency. 100% of the voting common stock of this company is held by an individual
who has agreed to vote such shares at the direction of N.L. HOLDING CORP. (DEL),
an indirect wholly owned subsidiary of Metropolitan.                            

4) Mezzanine Investment Limited Partnerships ("MILPs"), Delaware limited        
partnerships, are investment vehicles through which investments in certain      
entities are held. A wholly-owned subsidiary of Metropolitan Life Insurance     
Company serves as the general partner of the limited partnerships and           
Metropolitan Life Insurance Company directly owns a 99% limited partnership     
interest in each MILP. The MILPs have various ownership and/or debt interests in
certain companies. The various MILPs own, directly or indirectly, 100% of the   
voting stock of the following: Coating Technologies International, Inc.         

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5) New England Life Insurance Company ("NELICO"), owns 100% of the voting stock 
of Omega Reinsurance Corporation. NELICO does not have a financial interest in  
this subsidiary.                                                                

NOTE: THE METLIFE, INC. ORGANIZATIONAL CHART DOES NOT INCLUDE REAL ESTATE JOINT 
VENTURES AND PARTNERSHIPS OF WHICH METLIFE, INC. AND/OR ITS SUBSIDIARIES IS AN  
INVESTMENT PARTNER. IN ADDITION, CERTAIN INACTIVE SUBSIDIARIES HAVE ALSO BEEN   
OMITTED.                                                                        

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ITEM 27.     NUMBER OF CONTRACTOWNERS                                           

      As of March 31, 2003, there were 4,633 owners of tax-qualified contracts
and 11,540 owners of non-qualified contracts.                                   

ITEM 28.     INDEMNIFICATION                                                    

The Depositor's parent, Metropolitan Life Insurance Company ("Metropolitan      
Life") has secured a Financial Institution Bond in the amount of $50,000,000,   
subject to a $5,000,000 deductible. Metropolitan Life maintains a directors' and
officers' liability policy with a maximum coverage of $300 million under which  
the Depositor and New England Securities Corporation, the Registrant's principal
underwriter (the "Underwriter"), as well as certain other subsidiaries of       
Metropolitan Life are covered. A provision in Metropolitan Life's by-laws       
provides for the indemnification (under certain circumstances) of individuals   
serving as directors or officers of certain organizations, including the        
Depositor and the Underwriter. A provision in the Depositor's by-laws provides  
for the indemnification (under certain circumstances) of individuals serving as 
directors or officers or employees of the Depositor.                            

Insofar as indemnification for liability arising under the Securities Act of    
1933 may be permitted to directors, officers or controlling persons (if any) of 
the Underwriter or Depositor pursuant to the foregoing provisions or otherwise, 
the Registrant has been advised that in the opinion of the Securities and       
Exchange Commission such indemnification may be against public policy as        
expressed in the Act and may be, therefore, unenforceable.                      

In the event that a claim for indemnification against such liabilities (other   
than the payment by the Depositor or Underwriter of expenses incurred or paid by
a director, officer or controlling person of the Depositor or Underwriter in the
successful defense of any action, suit or proceeding) is asserted by such       
director, officer or controlling person in connection with the securities being 
registered, the Depositor or Underwriter will, unless in the opinion of its     
counsel the matter has been settled by controlling precedent, submit to a court 
of appropriate jurisdiction the question whether such indemnification by it is  
against public policy as expressed in the Act and will be governed by the final 
adjudication of such issue.                                                     

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ITEM 29.     PRINCIPAL UNDERWRITERS                                             

(a) New England Securities Corporation also serves as principal   
underwriter for:                                                  

New England Variable Annuity Fund I                               
New England Variable Life Separate Account                        
New England Life Retirement Investment Account                    
The New England Variable Account                                  

       (b) The directors and officers of the Registrant's principal underwriter,
     New England Securities Corporation, and their addresses are as follows:

                                                                [Download Table]

         Name                      Positions and Offices with                   
                                     Principal Underwriter                      
                                                                                
Vacant                      Chairman of the Board, Director, President and      
                            Chief Executive Officer                             

Virgil E. Aquino(5)         Vice President                                      

Steven J. Brash(3)          Assistant Treasurer                                 

Leo R. Brown(3)             Assistant Treasurer                                 

David Decker(4)             Vice President                                      

Mary M. Diggins(1)          Vice President, General Counsel, Secretary and Clerk

Johannes A. Etwaroo(5)      Vice President of Operations                        

Thom A. Faria(1)            Director                                            

Anne M. Goggin(1)           Director                                            

Rick R. Guistolise(6)       Vice President, Chief Operating Officer             

Gregory M. Harrison(3)      Assistant Treasurer                                 

Paul D. Hipworth(5)         Assistant Vice President, Chief Financial Officer,  
                            and Treasurer                                       

Laura A. Hutner(1)          Vice President                                      

Mitchell A. Karman(1)       Vice President                                      

Rebecca Chiccino Kovatch(1) Vice President                                      

Joanne E. Logue(1)          Vice President, Chief Compliance Officer            

Genevieve Martin(1)         Field Vice President                                

Sean McNamara(5)            Assistant Vice President                            

Bette Skandalis(1)          Vice President, Financial Planning                  


Principal Business Address:                                                     

(1)       New England Financial - 501 Boylston Street, Boston, MA 02117         
(2)       MetLife - One Madison Avenue, New York, NY 10010                      
(3)       MetLife - 27-01 Queens Plaza North, Long Island City, NY 11101        
(4)       MetLife - 260 Madison Avenue, New York, NY 10016                      
(5)       MetLife - 485 E US Highway South, Iselin, NY 08830                    
(6)       MetLife - 177 South Commons Drive, Aurora, IL 60504                   

(c)                                                               

                                                                [Download Table]

          (1)                  (2)             (3)           (4)           (5)    
        Name of         Net Underwriting                                          
       Principal          Discounts and   Compensation    Brokerage               
      Underwriter          Commissions    on Redemption  Commissions  Compensation
                                                                                  
New England Securities                                                            
Corporation               $25,188,719           0            0              0     

Commissions are paid by the Company directly to agents who are registered       
representatives of the principal underwriter, or to broker-dealers that have    
entered into selling agreements with the principal underwriter with respect to  
sales of the Contracts.                                                         

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ITEM 30.     LOCATION OF ACCOUNTS AND RECORDS                                   

The following companies will maintain possession of the documents required by   
Section 31(a) of the Investment Company Act of 1940 and the Rules thereunder:   

(a) Registrant                                                    

(b) State Street Bank & Trust Company 225 Franklin Street Boston, 
Massachusetts 02110                                               

(c) New England Securities Corporation 399 Boylston Street Boston,
Massachusetts 02116                                               

(d) New England Life Insurance Company 501 Boylston Street Boston,
Massachusetts 02116                                               

ITEM 31.     MANAGEMENT SERVICES                                                

Not applicable                                                    

ITEM 32.     UNDERTAKINGS                                                       

Registrant hereby makes the following undertakings:                             

      (1) To file a post-effective amendment to this registration statement as
frequently as is necessary to ensure that the audited financial   
       statements contained in the registration statement are never more than 16
     months old for so long as payments under the variable annuity contracts
may be accepted;                                                  

(2) To include either (a) as part of any application to purchase a
     contract offered by the prospectus, a space that an applicant can check
   to request a Statement of Additional Information or (b) a postcard or
    similar written communication affixed to or included in the prospectus
 that the applicant can remove to send for a Statement of Additional
Information;                                                      

    (3) To deliver a Statement of Additional Information and any financial
   statements required to be made available under this Form N-4 promptly
upon written or oral request;                                     

     (4) To offer Contracts to participants in the Texas Optional Retirement
      program in reliance upon Rule 6c-7 of the Investment Company Act of 1940
and to comply with paragraphs (a)-(d) of that Rule; and           

     (5) To comply with and rely upon the Securities and Exchange Commission
No-Action letter to The American Council of Life Insurance, dated 
    November 28, 1988, regarding Sections 22(e), 27(c)(1) and 27(d) of the
Investment Company Act of 1940.                                   

    New England Life Insurance Company hereby represents that the fees and
       charges deducted under the Contracts, in the aggregate, are reasonable in
     relation to the services rendered, the expenses to be incurred, and the
risks assumed by New England Life Insurance Company.              

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SIGNATURES

     As required by the Securities Act of 1933 and the Investment Company Act of
1940, the Registrant, New England Variable Annuity Separate Account, certifies  
that it meets the requirements of Securities Act Rule 485(b) for effectiveness  
of this Amendment to the Registration Statement and has caused this Amendment to
the Registration Statement to be signed on its behalf, in the City of Boston,   
and the Commonwealth of Massachusetts on the 25th day of April, 2003.           

 New England Variable Annuity Separate Account
(Registrant)

By: New England Life Insurance Company
 (Depositor)

                       By:  /s/ Anne M. Goggin
                                   -------------------------
                                      Anne M. Goggin, Esq.
                                       Senior Vice President
                                     and General Counsel

Attest:                                                                         

/s/ John E. Connolly, Jr.                                                       
-------------------------                                                       
John E. Connolly, Jr.                                                   
Assistant Secretary                                                     

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SIGNATURES

      As required by the Securities Act of 1933 and the Investment Company Act
of 1940, the Depositor, New England Life Insurance Company, certifies that it   
meets the requirements of Securities Act Rule 485(b) for effectiveness of this  
Amendment to the Registration Statement and has caused this Amendment to the    
Registration Statement to be signed on its behalf, in the City of Boston, and   
the Commonwealth of Massachusetts on the 25th day of April, 2003.               

New England Life Insurance Company

                                 By:  /s/ Anne M. Goggin
                                             -------------------------
                                                Anne M. Goggin, Esq.
                                                 Senior Vice President
                                               and General Counsel

Attest:                                                                         

/s/ John E. Connolly, Jr.                                                       
-------------------------                                                       
John E. Connolly, Jr.                                                   
Assistant Secretary                                                     

As required by the Securities Act of 1933, this Amendment to the  
Registration Statement has been signed below by the following persons in the    
capacities indicated on April 25, 2003.                                         

                                                                [Download Table]
                                                                         
         *                    Chairman, President and                    
--------------------          Chief Executive Officer                    
C. Robert Henrikson                                                      

         *                            Director                           
--------------------                                                     
Thom A. Faria                                                            

         *                            Director                           
--------------------                                                     
Stewart G. Nagler                                                        

         *                            Director                           
--------------------                                                     
Catherine A. Rein                                                        

         *                            Director                           
--------------------                                                     
Stanley J. Talbi                                                         

         *                            Director                           
--------------------                                                     
Lisa M. Weber                                                            

         *                            Director                           
--------------------                                                     
William J. Wheeler                                                       

         *                            Senior Vice President and Treasurer
--------------------                  (Principal Financial Officer)      
Anthony J. Williamson                                                    

         *                            Senior Vice President and Treasurer
--------------------                  (Chief Accounting Officer)         
Virginia M. Wilson                                                       

By: /s/ Marie C. Swift                                                   
   -------------------------                                             
        Marie C. Swift                                                   
        Attorney-in-fact                                                 
        April 25, 2003                                                   

* Executed by Marie C. Swift, Esquire on behalf of those indicated pursuant to  
powers of attorney filed with Post-Effective Amendment No. 1 to the New England 
Variable Life Separate Account on Form N-6 Registration Statement, File No.     
333-73676, on December 13, 2002.                                                

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Exhibit Index 

(4) (v) Forms of Endorsements: Tax Sheltered Annuity Endorsement NEL-398.2      
(09/02); 401 Plan Endorsement NEL-401.2 (09/02); Individual Retirement  
Annuity Endorsement NEL-408.2 (09/02); Simple Individual Retirement     
Annuity Endorsement (NEL-439.1 (09/02); Roth Individual Retirement      
Annuity Endorsement NEL-446.2 (09/02).                                  

(5) (iii)  Form of Application (NEA APP-1-02).                                  

(7)  Automatic Reinsurance Agreement between New England Life Insurance Company 
and Exeter Reassurance Company Ltd.                                   

(9)  Opinion and Consent of Anne M. Goggin, General Counsel (NELICO).           

(10) (i)  Consent of Deloitte & Touche LLP.                                     

(ii) Consent of Sutherland Asbill & Brennan LLP.