Metropolitan Life Separate Account E, et al. – ‘485BPOS’ on 4/9/03

On:  Wednesday, 4/9/03, at 6:52pm ET   ·   As of:  4/10/03   ·   Effective:  4/10/03   ·   Accession #:  950109-3-2078   ·   File #s:  333-52366, 811-04001

in

this entire Filing. an “Entity” Search.

Show

Documents searched

and

each “hit”. the 1st “hit”.

↓↑Hints

Post-Effective Amendment
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: 485BPOS     Metropolitan Life Separate Account E                 313   1.46M 
 7: EX-10       Consent of Auditors                                    1      6K 
 8: EX-13.A     Powers of Attorney                                     1      6K 
 2: EX-99.4A    Roth Individual Retirement Annuity Endorsement         5     17K 
 3: EX-99.4B    Plan Endorsement                                       2±     8K 
 4: EX-99.4C    Individual Retirement Annuity Endorsement              4     22K 
 5: EX-99.4D    Simple Individual Retirement Annuity Endorsement       4     23K 
 6: EX-99.4E    Tax Sheltered Annuity Endorsement                      6     34K 

485BPOS   —   Metropolitan Life Separate Account E
Document Table of Contents

485BPOS
1st Page of 313
TOC
↑Top
Previous
Next
↓Bottom
Just 1st
 
                                          REGISTRATION NOS. 333-52366/811-4001
================================================================================

SECURITIES AND EXCHANGE COMMISSION  
WASHINGTON, D.C. 20549  

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

FORM N-4  

           REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933         [X]

PRE-EFFECTIVE AMENDMENT 

                       POST-EFFECTIVE AMENDMENT NO. 2                      [X]

AND/OR  
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940 

                              AMENDMENT NO. 47                             [X]

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

METROPOLITAN LIFE SEPARATE ACCOUNT E  
(EXACT NAME OF REGISTRANT)  

METROPOLITAN LIFE INSURANCE COMPANY 
(EXACT NAME OF DEPOSITOR) 

1 MADISON AVENUE, NEW YORK, NEW YORK 10010  
(ADDRESS OF DEPOSITOR'S PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE) 

(212) 578-5364  
(DEPOSITOR'S TELEPHONE NUMBER, INCLUDING AREA CODE) 

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

GARY A. BELLER, ESQ.  
SENIOR EXECUTIVE VICE-PRESIDENT AND GENERAL COUNSEL 
METROPOLITAN LIFE INSURANCE COMPANY 
1 MADISON AVENUE  
NEW YORK, NEW YORK 10010  
(NAME AND ADDRESS OF AGENT FOR SERVICE) 

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

COPIES TO:  

DIANE E. AMBLER, ESQ. 

KIRKPATRICK & LOCKHART LLP  

1800 MASSACHUSETTS AVENUE, N.W. 
WASHINGTON, D.C. 20036  

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

IT IS PROPOSED THAT THE 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               

[_] on (date) filing pursuant to paragraph (a)(1) of Rule 485           

 [_] on the seventy-fifth day after filing pursuant to paragraph (a)(2) of
Rule 485                                                        

[_] on (date) pursuant to paragraph (a)(2) of Rule 485                  

PURSUANT TO RULE 24F-2 UNDER THE INVESTMENT COMPANY ACT OF 1940, THE REGISTRANT 
HAS REGISTERED AN INDEFINITE AMOUNT OF SECURITIES. REGISTRANT'S RULE 24F-2      
NOTICE FOR THE YEAR ENDED DECEMBER 31, 2002 WAS FILED WITH THE COMMISSION ON OR 
ABOUT MARCH 31, 2003.                                                           

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

485BPOS
2nd Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 2nd
METROPOLITAN LIFE SEPARATE ACCOUNT E  
FORM N-4  
UNDER 
THE SECURITIES ACT OF 1933 AND THE INVESTMENT COMPANY ACT OF 1940 

CROSS REFERENCE SHEET 
(PURSUANT TO RULE 481(A)) 

                                                        [Enlarge/Download Table]

Form N-4                                                                                            
Item No.                                                       Prospectus Heading                   
--------                                                       ------------------                   
                                                                                                    
  1.     Cover Page......................... Cover Page                                             

  2.     Definitions........................ Important Terms You Should Know                        

  3.     Synopsis........................... Table of Expenses                                      

  4.     Condensed Financial Information.... General Information--Performance; General              
                                               Information--Financial Statements; Accumulation      
                                               Unit Value Tables                                    

  5.     General Description of Registrant,  MetLife; Metropolitan Life Separate Account E; Your    
         Depositor, and Portfolio Companies.   Investment Choices; General Information--Voting      
                                               Rights                                               

  6.     Deductions and Expenses............ Table of Expenses; Deferred Annuities--Charges;        
                                               Deferred Annuities--Withdrawal Charges; Deferred     
                                               Annuities--Premium and Other Taxes; Income           
                                               Options--Charges; General Information--Who           
                                               Sells the Deferred Annuities; Appendix--Premium      
                                               Tax Table                                            

  7.     General Description of Variable     Variable Annuities; Classes of the Deferred Annuity;   
         Annuity Contracts..................   Deferred Annuities--Purchase Payments (Allocation    
                                               of Purchase Payments and Limits on Purchase          
                                               Payments); Deferred Annuities--Transfer Privilege;   
                                               General Information--Administration (Purchase        
                                               Payments/Confirming Transactions/Transactions by     
                                               Telephone or Internet/Processing Transactions/       
                                               Changes to Your Deferred Annuity/When We Can         
                                               Cancel Your Deferred Annuity)                        

  8.     Annuity Period..................... Important Terms You Should Know; Deferred              
                                               Annuities--Pay-out Options (or Income Options);      
                                               Income Payment Types/The Value of Your Income        
                                               Payments; Optional Benefits--Guaranteed              
                                               Minimum Income Benefit                               

  9.     Death Benefit...................... Deferred Annuities--Death Benefit--Generally; Basic    
                                               Death Benefit; Optional Benefits                     

 10.     Purchases and Annuity Values....... MetLife; Metropolitan Life Separate Account E; Deferred
                                               Annuities--Purchase Payments (Allocation of          
                                               Purchase Payments and Limits on Purchase             
                                               Payments); The Value of Your Investment; Pay-out     
                                               Options (or Income Options); Allocation; The Value   
                                               of Your Income Payments; General Information--       
                                               Administration (Purchase Payments)                   

                                                                           1

485BPOS
3rd Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 3rd
                                                        [Enlarge/Download Table]

Form N-4                                                                                               
Item No.                                                         Prospectus Heading                    
--------                                                         ------------------                    
                                                                                                       
 11.     Redemptions........................ Deferred Annuities--Access to Your Money (Systematic      
                                               Withdrawal Program and Minimum Distribution);           
                                               Deferred Annuities--Withdrawal Charges (When No         
                                               Withdrawal Charge Applies); General Information--       
                                               When We Can Cancel Your Deferred Annuity                

 12.     Taxes.............................. Income Taxes                                              

 13.     Legal Proceedings.................. Not Applicable                                            

 14.     Table of Contents of the Statement  Table of Contents of the Statement of Additional          
         of Additional Information..........   Information                                             

 15.     Cover Page......................... Cover Page                                                

 16.     Table of Contents.................. Table of Contents                                         

 17.     General Information and History.... Not Applicable                                            

 18.     Services........................... Independent Auditors; Services; Distribution of           
                                               Certificates and Interests in the Deferred Annuities    

 19.     Purchase of Securities Being        Not Applicable                                            
         Offered............................                                                           

 20.     Underwriters....................... Distribution of Certificates and Interests in the Deferred
                                               Annuities; Early Withdrawal Charge                      

 21.     Calculation of Performance Data.... Performance Data                                          

 22.     Annuity Payments................... Variable Income Payments                                  

 23.     Financial Statements............... Financial Statements of the Separate Account; Financial   
                                               Statements of MetLife                                   

2                                                                               

485BPOS
4th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 4th
 [GRAPHIC]

VARIABLE ANNUITY                                    

MAY 1, 2003                                     

                                                   PREFERENCE PLUS SELECT /SM/

                                                              VARIABLE ANNUITY

PROSPECTUS                                                                      

 [GRAPHIC]

                                                       NON-QUALIFIED ANNUITIES
                                               INDIVIDUAL RETIREMENT ANNUITIES
                                          ROTH INDIVIDUAL RETIREMENT ANNUITIES
                                                  SIMPLIFIED EMPLOYEE PENSIONS
                                        SIMPLE INDIVIDUAL RETIREMENT ANNUITIES

 [GRAPHIC]

 [GRAPHIC]

485BPOS
5th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 5th
                                                                   MAY 1, 2003

PREFERENCE PLUS SELECT(R) VARIABLE ANNUITY CONTRACTS                            

ISSUED BY METROPOLITAN LIFE INSURANCE COMPANY                                   
This Prospectus describes individual Preference Plus Select contracts for       
deferred variable annuities ("Deferred Annuities").                             

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

You decide how to allocate your money among the various available       
 investment choices. The investment choices available to you are listed in
  the contract for your Deferred Annuity. Your choices may include the Fixed
Account (not described in this Prospectus) and investment divisions available   
through Metropolitan Life Separate Account E which, in turn, invest in the      
following corresponding portfolios of the Metropolitan Series Fund, Inc.        
("Metropolitan Fund"), portfolios of the Met Investors Series Trust ("Met       
Investors Fund") and funds of the American Funds Insurance Series ("American    
Funds"). For convenience, the portfolios and the funds are referred to as       
"Portfolios" in this Prospectus.                                                

                                                        [Enlarge/Download Table]
                                                                                           
STATE STREET RESEARCH MONEY MARKET            FI MID CAP OPPORTUNITIES                     
LEHMAN BROTHERS(R) AGGREGATE BOND INDEX       MET/AIM MID CAP CORE EQUITY                  
PIMCO TOTAL RETURN                            METLIFE MID CAP STOCK INDEX                  
SALOMON BROTHERS U.S. GOVERNMENT              HARRIS OAKMARK FOCUSED VALUE                 
STATE STREET RESEARCH BOND INCOME             NEUBERGER BERMAN PARTNERS MID CAP VALUE      
SALOMON BROTHERS STRATEGIC BOND OPPORTUNITIES JANUS MID CAP                                
STATE STREET RESEARCH DIVERSIFIED             STATE STREET RESEARCH AGGRESSIVE GROWTH      
LORD ABBETT BOND DEBENTURE                    T. ROWE PRICE MID-CAP GROWTH (FORMERLY MFS   
AMERICAN FUNDS GROWTH-INCOME                    MID CAP GROWTH)                            
METLIFE STOCK INDEX                           LOOMIS SAYLES SMALL CAP                      
MFS INVESTORS TRUST                           RUSSELL 2000(R) INDEX                        
MFS RESEARCH MANAGERS                         STATE STREET RESEARCH AURORA                 
STATE STREET RESEARCH INVESTMENT TRUST        FRANKLIN TEMPLETON SMALL CAP GROWTH          
DAVIS VENTURE VALUE                           MET/AIM SMALL CAP GROWTH                     
FI STRUCTURED EQUITY                          T. ROWE PRICE SMALL CAP GROWTH               
HARRIS OAKMARK LARGE CAP VALUE                PIMCO INNOVATION                             
STATE STREET RESEARCH LARGE CAP VALUE         SCUDDER GLOBAL EQUITY                        
AMERICAN FUNDS GROWTH                         HARRIS OAKMARK INTERNATIONAL (FORMERLY STATE 
JANUS AGGRESSIVE GROWTH                         STREET RESEARCH CONCENTRATED INTERNATIONAL)
MET/PUTNAM VOYAGER (FORMERLY PUTNAM LARGE     MFS RESEARCH INTERNATIONAL                   
  CAP GROWTH)                                 MORGAN STANLEY EAFE(R) INDEX                 
T. ROWE PRICE LARGE CAP GROWTH                PUTNAM INTERNATIONAL STOCK                   
                                              AMERICAN FUNDS GLOBAL SMALL CAPITALIZATION   

HOW TO LEARN MORE:                                                              

Before investing, read this Prospectus. The Prospectus contains information     
about the Deferred Annuities and Metropolitan Life Separate Account E which you 
should know before investing. Keep this Prospectus for future reference. For    
more information, request a copy of the Statement of Additional Information     
("SAI"), dated May 1, 2003. The SAI is considered part of this Prospectus as    
though it were included in the Prospectus. The Table of Contents of the SAI     
appears on page 89 of this Prospectus. To request a free copy of the SAI or to  
ask questions, write or call:                                                   

Metropolitan Life Insurance Company                                             
Attn: Fulfillment Unit - PPS                                                    
1600 Division Road                                                              
West Warwick, RI 02893                                                          
(800) 638-7732                                                                  
[GRAPHIC]   

[LOGO] Metlife

[GRAPHIC]       

DEFERRED                                                                      
ANNUITIES                                                                     
AVAILABLE:                                                                    

. Non-Qualified                                                         
. Traditional IRA                                                       
. Roth IRA                                                              
. Simplified Employee Pensions (SEPs)                                   
. SIMPLE Individual Retirement Annuities                                

CLASSES AVAILABLE                                                             
FOR EACH                                                                      
DEFERRED ANNUITY                                                              
. B                                                                     
. Bonus                                                                 
. C                                                                     
. L                                                                     

A WORD ABOUT INVESTMENT RISK:                                                 

An investment in any of these variable annuities involves investment risk. You
could lose money you invest. Money invested is NOT:                           

. a bank deposit or obligation;                                             

. federally insured or guaranteed; or                                       

. endorsed by any bank or other financial institution.                      

485BPOS
6th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 6th
Each class of the Deferred Annuities has its own Separate Account charge and    
withdrawal charge schedule. Each provides the opportunity to invest for         
retirement. The expenses for the Bonus Class of the Deferred Annuity may be     
higher than similar contracts without a bonus. The purchase payment credits     
("Bonus") may be more than offset by the higher expenses for the Bonus Class.   

The Securities and Exchange Commission has a Web site (http://www.sec.gov)      
which you may visit to view this Prospectus, SAI and other information. The     
Securities and Exchange Commission has not approved or disapproved these        
securities or determined if this Prospectus is truthful or complete. Any        
representation otherwise is a criminal offense.                                 

This Prospectus is not valid unless attached to the current Metropolitan Fund,  
Met Investors Fund and American Funds prospectuses which are attached to the    
back of this Prospectus. You should read these prospectuses carefully before    
purchasing a Deferred Annuity.                                                  

2                                                                               

485BPOS
7th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 7th
TABLE OF CONTENTS 

                                                                [Download Table]
                                                                   
Important Terms You Should Know................................  5 
Table of Expenses..............................................  8 
Accumulation Unit Values Tables................................ 17 
MetLife........................................................ 28 
Metropolitan Life Separate Account E........................... 28 
Variable Annuities............................................. 29 
    The Deferred Annuity....................................... 29 
Classes of the Deferred Annuity................................ 30 
Your Investment Choices........................................ 34 
Deferred Annuities............................................. 36 
    The Deferred Annuity and Your Retirement Plan.............. 36 
    Automated Investment Strategies and Enhanced Dollar Cost       
      Averaging Program........................................ 36 
    Purchase Payments.......................................... 40 
        Allocation of Purchase Payments........................ 41 
        Automated Purchase Payments............................ 42 
        Limits on Purchase Payments............................ 42 
    The Value of Your Investment............................... 43 
    Transfer Privilege......................................... 44 
    Access to Your Money....................................... 45 
        Systematic Withdrawal Program.......................... 45 
    Charges.................................................... 46 
        Separate Account Charge................................ 46 
        Investment-Related Charge.............................. 47 
    Annual Contract Fee........................................ 47 
        Optional Guaranteed Minimum Income Benefit............. 47 
    Premium and Other Taxes.................................... 47 
    Withdrawal Charges......................................... 48 
        When No Withdrawal Charge Applies...................... 49 
    Free Look.................................................. 51 
    Death Benefit--Generally................................... 51 
        Basic Death Benefit.................................... 53 
    Optional Benefits.......................................... 55 
        Annual Step-Up Death Benefit........................... 55 
        Greater of Annual Step-Up or 5% Annual Increase            
          Death Benefit........................................ 57 
        Earnings Preservation Benefit.......................... 59 
        Guaranteed Minimum Income Benefit (The Predictor)...... 61 
    Pay-Out Options (or Income Options)........................ 64 
    Income Payment Types....................................... 65 
    Allocation................................................. 66 
    Minimum Size of Your Income Payment........................ 66 

                                                                           3

485BPOS
8th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 8th
                                                                [Download Table]
                                                                 
    The Value of Your Income Payments........................ 66 
    Transfer Privilege....................................... 67 
    Charges.................................................. 68 
General Information.......................................... 69 
    Administration........................................... 69 
        Purchase Payments.................................... 69 
        Confirming Transactions.............................. 69 
        Processing Transactions.............................. 69 
           By Telephone or Internet.......................... 70 
           After Your Death.................................. 71 
           Third Party Requests.............................. 71 
           Valuation -- Suspension of Payments............... 71 
    Advertising Performance.................................. 72 
    Changes to Your Deferred Annuity......................... 74 
    Voting Rights............................................ 75 
    Who Sells the Deferred Annuities......................... 75 
    Financial Statements..................................... 76 
    Your Spouse's Rights..................................... 76 
    When We Can Cancel Your Deferred Annuity................. 76 
Income Taxes................................................. 77 
Table of Contents for the Statement of Additional Information 89 
Appendix for Premium Tax Table............................... 90 

MetLife does not intend to offer the Deferred Annuities anywhere they may not   
lawfully be offered and sold. MetLife has not authorized any information or     
representations about the Deferred Annuities other than the information in this 
Prospectus, the attached prospectuses, supplements to the prospectuses or any   
supplemental sales material we authorize.                                       

[GRAPHIC] 

4                                                                               

485BPOS
9th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 9th
[GRAPHIC]                                                             

IMPORTANT TERMS YOU SHOULD KNOW                                                 

ACCOUNT BALANCE                                                                 

When you purchase a Deferred Annuity, an account is set up for you. Your        
Account Balance is the total amount of money credited to you under your         
Deferred Annuity including money in the investment divisions of the Separate    
Account, the Fixed Account and the Enhanced Dollar Cost Averaging Program.      

ACCUMULATION UNIT VALUE                                                         

With a Deferred Annuity, money paid-in or transferred into an investment        
division of the Separate Account is credited to you in the form of accumulation 
units. Accumulation units are established for each investment division. We      
determine the value of these accumulation units at the close of the Exchange    
each day the Exchange is open for regular trading. The Exchange usually closes  
at 4 p.m. Eastern Time but may close earlier or later. The values increase or   
decrease based on the investment performance of the corresponding underlying    
portfolios.                                                                     

ADMINISTRATIVE OFFICE                                                           

Your Administrative Office is the MetLife office that will generally handle the 
processing of all your requests concerning your Deferred Annuity. Your contract 
will indicate the address of your Administrative Office. We will notify you if  
there is a change in the address of your Administrative Office. The telephone   
number to call to make a request is 800-638-7732.                               

ANNUITANT                                                                       

The natural person whose life is the measure for determining the duration and   
the dollar amount of income payments.                                           

ANNUITY UNIT VALUE                                                              

With a variable pay-out option, the money paid-in or transferred into an        
investment division of the Separate Account is held in the form of annuity      
units. Annuity units are established for each investment division. We determine 
the value of these annuity units at the close of the Exchange each day the      
Exchange is open for regular trading. The Exchange usually closes at 4 p.m.     
Eastern Time but may close earlier or later. The values increase or decrease    
based on the investment performance of the corresponding underlying portfolios. 

ASSUMED INVESTMENT RETURN (AIR)                                                 

Under a variable pay-out option, the AIR is a percentage rate of return assumed 
to determine the amount of the first variable income payment. The AIR is also   
the benchmark that is used to calculate the investment performance of a given   
investment division to determine all subsequent payments to you.                

                                                                           5

485BPOS
10th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 10th
BENEFICIARY                                                                     

The person or persons who receives a benefit, including continuing payments or  
a lump sum payment, if the owner dies.                                          

CONTRACT                                                                        

A contract is the legal agreement between you and MetLife. This document        
contains relevant provisions of your Deferred Annuity. MetLife issues contracts 
for each of the annuities described in this Prospectus.                         

CONTRACT ANNIVERSARY                                                            

An anniversary of the date we issue the Deferred Annuity.                       

CONTRACT YEAR                                                                   

The Contract Year for a Deferred Annuity is the one year period starting on the 
date we issue the contract and each Contract Anniversary thereafter.            

EXCHANGE                                                                        

In this Prospectus, the New York Stock Exchange is referred to as the           
"Exchange."                                                                     

INVESTMENT DIVISION                                                             

Investment divisions are subdivisions of the Separate Account. When you         
allocate or transfer money to an investment division, the investment division   
purchases shares of a portfolio (with the same name) within the Metropolitan    
Fund, the Met Investors Fund or the American Funds.                             

METLIFE                                                                         

MetLife is Metropolitan Life Insurance Company which is the company that issues 
the Deferred Annuities. Throughout this Prospectus, MetLife is also referred to 
as "we," "us" or "our."                                                         

OWNER                                                                           

The person or entity which has all rights including the right to direct who     
receives income payments.                                                       

SEPARATE ACCOUNT                                                                

A separate account is an investment account. All assets contributed to          
investment divisions under the Deferred Annuities are pooled in the Separate    
Account and maintained for the benefit of investors in Deferred Annuities.      

VARIABLE ANNUITY                                                                

An annuity in which returns/income payments are based upon the performance of   
investments such as stocks and bonds held by one or more underlying             

6                                                                               

485BPOS
11th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 11th
portfolios. You assume the investment risk for any amounts allocated to the     
investment divisions in a variable annuity.                                     

WITHDRAWAL CHARGE                                                               

The withdrawal charge is the amount we deduct from your Account Balance, if you 
withdraw money prematurely from a Deferred Annuity. This charge is often        
referred to as a deferred sales load or back-end sales load.                    

YOU                                                                             

In this Prospectus "you" is the owner of the Deferred Annuity. "You" is also    
the purchaser of a Deferred Annuity as a beneficiary of a deceased person's     
Individual Retirement Account.                                                  

                                                                           7

485BPOS
12th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 12th
TABLE OF EXPENSES--PREFERENCE PLUS SELECT DEFERRED ANNUITIES              

     The following tables describe the expenses you will pay when you buy,
    hold or withdraw amounts from your Deferred Annuity. The first table
    describes charges you will pay at the time you purchase the Deferred
Annuity, make withdrawals from your Deferred Annuity or make transfers
    between the investment divisions. The tables do not show premium and other
taxes which may apply. There are no fees for the Fixed Account and the
Enhanced Dollar Cost Averaging Program.                               

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

Contract Owner Transaction Expenses                                         

                                                                [Download Table]
                                                                                 
Sales Charge Imposed on Purchase Payments...................                 None
Withdrawal Charge (as a percentage of each purchase                              
  payment) (1)..............................................             Up to 9%
Transfer Fee (2)............................................ Current Charge: None
                                                   Maximum Guaranteed Charge: $25

/1/ A withdrawal charge may apply if you withdraw purchase payments that were   
credited to your Deferred Annuity. The charges on purchase payments for 
each class is calculated according to the following schedule:           

                                                                [Download Table]

IF WITHDRAWN DURING YEAR B CLASS BONUS CLASS C CLASS L CLASS
------------------------ ------- ----------- ------- -------
                                                            
       1................    7%        9%      None      7%  
       2................    6%        8%                6%  
       3................    6%        8%                5%  
       4................    5%        7%                0%  
       5................    4%        6%                0%  
       6................    3%        4%                0%  
       7................    2%        3%                0%  
       Thereafter.......    0%        0%                0%  

   There are times when the withdrawal charge does not apply. For example, you
 may always withdraw earnings without a withdrawal charge. After the first
Contract Year, you may also withdraw up to 10% of your total purchase   
payments without a withdrawal charge.                                   

/2/ We reserve the right to limit transfers as described later in this          
Prospectus. We reserve the right to impose a transfer fee. The amount of
this fee will be no greater than $25 per transfer.                      

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

The second table describes the fees and expenses that you will bear   
  periodically during the time you hold the Deferred Annuity, but does not
include fees and expenses for the Portfolios.                         

                                                        [Enlarge/Download Table]
                                                                                                        
Annual Contract Fee (3)............................................................................. $30

                                                        [Enlarge/Download Table]
                                                                                                                                
Current Separate Account Charge (as a percentage of your Account Balance) for all investment divisions except the American Funds
Growth-Income, American Funds Growth and American Funds Global Small Capitalization Divisions (4)                               

                                                     B CLASS          BONUS CLASS (5)          C CLASS          L CLASS         
Death Benefit                                        -------          ---------------          -------          -------         
  Basic Death Benefit...............................  1.25%                1.70%                1.65%            1.50%          
  Optional Annual Step-Up Death Benefit.............  1.45%                1.90%                1.85%            1.70%          
  Optional Greater of Annual Step-Up or 5%..........  1.60%                2.05%                2.00%            1.85%          
    Annual Increase Death Benefit                                                                                               
Optional Earnings Preservation Benefit (6)..........    .25%                 .25%                 .25%             .25%         

Current Separate Account Charge (as a percentage of your Account Balance) for the American Funds Growth-Income, American        
Funds Growth and American Funds Global Small Capitalization Divisions (4)                                                       

                                                     B CLASS          BONUS CLASS (5)          C CLASS          L CLASS         
Death Benefit                                        -------          ---------------          -------          -------         
  Basic Death Benefit...............................  1.40%                1.85%                1.80%            1.65%          
  Optional Annual Step-Up Death Benefit.............  1.60%                2.05%                2.00%            1.85%          
  Optional Greater of Annual Step-Up or 5%..........  1.75%                2.20%                2.15%            2.00%          
    Annual Increase Death Benefit                                                                                               
Optional Earnings Preservation Benefit (6)..........    .25%                 .25%                 .25%             .25%         

8                                                                               

485BPOS
13th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 13th
                                                        [Enlarge/Download Table]
                                                                                                                        

Maximum Guaranteed Separate Account Charge (as a percentage of your Account Balance) for all future investment divisions

                                                     B CLASS        BONUS CLASS (5)        C CLASS        L CLASS       
Death Benefit                                        -------        ---------------        -------        -------       
  Basic Death Benefit...............................  1.50%              1.95%              1.90%          1.75%        
  Optional Annual Step-Up Death Benefit.............  1.70%              2.15%              2.10%          1.95%        
  Optional Greater of Annual Step-Up or 5%..........  1.85%              2.30%              2.25%          2.10%        
    Annual Increase Death Benefit                                                                                       
Optional Earnings Preservation Benefit (6)..........   .25%               .25%               .25%           .25%        

                                                                [Download Table]
                                                                                 
Optional Guaranteed Minimum Income Benefit (7)....                           .50%
                                                          (.45% if purchased with
                                                   either optional death benefit)

/3/ This fee is waived if the Account Balance is $50,000 or more. Regardless of 
  the amount of your Account Balance, the entire fee will be deducted if you
  take a total withdrawal of your Account Balance. During the pay-out phase,
we reserve the right to deduct this fee.                                

/4/ You pay the Separate Account charge with the Basic Death Benefit for your   
class of the Deferred Annuity during the pay-out phase of your contract.
Charges for optional benefits are those for Deferred Annuities purchased
 after April 30, 2003. Different charges may have been in effect for prior
  time periods. We reserve the right to impose an increased Separate Account
 charge on investment divisions that we add to the contract in the future.
  The increase will not exceed the annual rate of 0.25% of the average daily
 net assets in any such investment divisions as shown in the table labeled
"Maximum Guaranteed Separate Account Charge for all future investment   
divisions".                                                             

/5/ The Separate Account charge for the Bonus Class will be reduced by 0.45% to 
 1.25% for the Basic Death Benefit (1.40% for amounts held in the American
Funds Investment Divisions; 1.50% for amounts held in the maximum       
guaranteed Separate Account charge investment divisions) after you have 
 held the contract for seven years. Similarly, the Separate Account charge
  will be reduced by 0.45% to 1.45% for the Annual Step-Up Death Benefit and
  1.60% for the Greater of Annual Set-Up or 5% Annual Increase Death Benefit
(1.60% and 1.75%, respectively, for amounts held in the American Funds  
investment divisions; 1.70% and 1.85%, respectively, for amounts held in
  the maximum guaranteed Separate Account charge investment divisions) after
you have held the contract for seven years.                             

/6/ The Separate Account charge for the Earnings Preservation Benefit is in     
addition to the Separate Account charge for your class of the Deferred  
Annuity with the death benefit you have chosen.                         

/7/ The charge for the Guaranteed Minimum Income Benefit is a percentage of     
 your guaranteed minimum income base, as defined later in this Prospectus,
  and is deducted at the end of each Contract Year by withdrawing amounts on
   a pro-rata basis from your Fixed Account balance, your Enhanced Dollar Cost
 Averaging Program and Separate Account balance. (We take amounts from the
 Separate Account by canceling, if available, accumulation units from your
 Separate Account.) You do not pay this charge once you are in the pay-out
  phase of your contract. The Fixed Account is not available with a Deferred
Annuity issued in New York State with this optional benefit.            

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

The third table shows the minimum and maximum total operating expenses charged  
by the Portfolios, as well as the operating expenses for each Portfolio, that   
you may bear periodically while you hold the Deferred Annuity. More details     
concerning the Metropolitan Fund, the Met Investors Fund and the American Funds 
fees and expenses are contained in their respective prospectuses.               

                                                        [Enlarge/Download Table]
                                                                                                      
Total Annual Metropolitan Fund, Met Investors Fund and American Funds Operating        Minimum Maximum
Expenses for the fiscal year ending December 31, 2002 (expenses that are deducted from                
these Funds's assets include management fees, distribution fees (12b-1 fees) and other    .46%   4.57%
expenses)                                                                                             
After Waiver and/or Reimbursement of Expenses (8)(9)..................................    .46%   1.35%

                                                                           9

485BPOS
14th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 14th
/8/ Pursuant to an Expense Agreement, MetLife Advisers, LLC ("MetLife           
Advisers") has agreed to waive its investment management fee or pay     
operating expenses (exclusive of brokerage costs, interest, taxes or    
   extraordinary expenses) as necessary to limit the total of such expenses to
  the annual percentage of average daily net assets of Class E shares of the
following Portfolios as indicated:                                      

                                                                [Download Table]

Portfolio                                     Percentage
---------                                     ----------
                                                        
Morgan Stanley EAFE(R) Index Portfolio            .90   
Met/Putnam Voyager Portfolio                     1.15   
Franklin Templeton Small Cap Growth Portfolio    1.30   
State Street Research Large Cap Value                   
  Portfolio                                      1.10   
MFS Investors Trust Portfolio                    1.15   
MFS Research Managers Portfolio                  1.15   
FI Mid Cap Opportunities Portfolio               1.20   

  This waiver or agreement to pay is subject to the obligation of each class
   of the Portfolio (except the Morgan Stanley EAFE(R) Index Portfolio and the
Met/Putnam Voyager Portfolio) separately to repay MetLife Advisers such 
expenses in future years, if any, when the Portfolio's class's expenses 
fall below the above percentages if certain conditions are met. The     
   agreement may be terminated at any time after April 30, 2004. The effect of
such waiver and reimbursement is that performance results are increased.

/9/ Met Investors Advisory LLC ("MetLife Investors") and Met Investors Fund     
 have entered into an Expense Limitation Agreement whereby, until at least
April 30, 2004, MetLife Investors has agreed to waive its investment    
management fee or pay operating expenses (exclusive of interest, taxes, 
brokerage commissions, or extraordinary expenses and 12b-1 Plan fees) as
  necessary to limit total expenses to the percentage of daily net assets to
  the following percentages: 1.25% for the PIMCO Innovation Portfolio, 1.10%
for the T. Rowe Price Mid-Cap Growth Portfolio (formerly the MFS Mid Cap
Growth Portfolio), 1.25% for the MFS Research International Portfolio,  
 0.90% for the Lord Abbett Bond Debenture Portfolio, 1.20% for the Met/AIM
Small Cap Growth Portfolio, 1.10% for the Met/AIM Mid Cap Core Equity   
Portfolio, 1.05% for the Janus Aggressive Growth Portfolio and 1.35% for
the Harris Oakmark International Portfolio (formerly the State Street   
Research Concentrated International Portfolio). Under certain           
circumstances, any fees waived or expenses reimbursed by the investment 
 manager may, with the approval of the Fund's Board of Trustees, be repaid
 to the investment manager. The effect of such waiver and reimbursement is
that performance results are increased.                                 

                                                        [Enlarge/Download Table]


  METROPOLITAN FUND CLASS E ANNUAL EXPENSES FOR FISCAL                                                
  YEAR ENDING DECEMBER 31, 2002                                                                       
                                                                          ----------------------------
  (as a percentage                                            A+B+C=D                       D-E=F     
  of average net                                 C             TOTAL                        TOTAL     
  assets) (13)                A        B   OTHER EXPENSES EXPENSES BEFORE       E       EXPENSES AFTER
                          MANAGEMENT 12b-1     BEFORE         WAIVER/        WAIVER/       WAIVER/    
                             FEES    FEES  REIMBURSEMENT   REIMBURSEMENT  REIMBURSEMENT REIMBURSEMENT 
------------------------------------------------------------------------------------------------------
                                                                                                      
State Street                                                                                          
  Research Money                                                                                      
  Market Portfolio                                                                                    
  (10)(17)...............    .35      .15        .08            .58            .00            .58     
Lehman Brothers(R)                                                                                    
  Aggregate Bond                                                                                      
  Index Portfolio........    .25      .15        .09            .49            .00            .49     
Salomon Brothers                                                                                      
  U.S. Government                                                                                     
  Portfolio..............    .55      .15        .15            .85            .00            .85     
State Street                                                                                          
  Research Bond                                                                                       
  Income Portfolio                                                                                    
  (10)(12)...............    .40      .15        .11            .66            .00            .66     
Salomon Brothers                                                                                      
  Strategic Bond                                                                                      
  Opportunities Portfolio    .65      .15        .20           1.00            .00           1.00     
State Street                                                                                          
  Research                                                                                            
  Diversified                                                                                         
  Portfolio (10)(11).....    .44      .15        .05            .64            .00            .64     
MetLife Stock Index                                                                                   
  Portfolio..............    .25      .15        .06            .46            .00            .46     
MFS Investors Trust                                                                                   
  Portfolio (8)(11)......    .75      .15        .59           1.49            .34           1.15     
MFS Research                                                                                          
  Managers                                                                                            
  Portfolio (8)(11)......    .75      .15        .39           1.29            .14           1.15     
State Street                                                                                          
  Research                                                                                            
  Investment Trust                                                                                    
  Portfolio (10)(11).....    .49      .15        .05            .69            .00            .69     
Davis Venture Value                                                                                   
  Portfolio (10)(11).....    .75      .15        .05            .95            .00            .95     
FI Structured                                                                                         
  Equity Portfolio                                                                                    
  (10)(11)...............    .67      .15        .05            .87            .00            .87     
Harris Oakmark                                                                                        
  Large Cap Value                                                                                     
  Portfolio (10)(11).....    .75      .15        .08            .98            .00            .98     
State Street                                                                                          
  Research Large                                                                                      
  Cap Value                                                                                           
  Portfolio (8)(10)......    .70      .15       1.63           2.48           1.38           1.10     

10                                                                              

485BPOS
15th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 15th
                                                        [Enlarge/Download Table]


  METROPOLITAN FUND CLASS E ANNUAL EXPENSES FOR FISCAL YEAR ENDING DECEMBER 31, 2002                                
                                                                                                      --------------
  (as a percentage of average net assets) (13)                                            A+B+C=D                   
                                                                             C             TOTAL                    
                                                          A        B   OTHER EXPENSES EXPENSES BEFORE       E       
                                                      MANAGEMENT 12b-1     BEFORE         WAIVER/        WAIVER/    
                                                         FEES    FEES  REIMBURSEMENT   REIMBURSEMENT  REIMBURSEMENT 
--------------------------------------------------------------------------------------------------------------------
                                                                                                                    
Met/Putnam Voyager Portfolio (8)(10).................    .80      .15        .27           1.22            .07      
T. Rowe Price Large Cap Growth Portfolio (10)(11)....    .63      .15        .14            .92            .00      
FI Mid Cap Opportunities Portfolio (8)(10)...........    .80      .15       3.62           4.57           3.37      
MetLife Mid Cap Stock Index Portfolio................    .25      .15        .18            .58            .00      
Harris Oakmark Focused Value Portfolio...............    .75      .15        .07            .97            .00      
Neuberger Berman Partners Mid Cap Value                                                                             
  Portfolio (10)(11).................................    .69      .15        .11            .95            .00      
Janus Mid Cap Portfolio (10).........................    .69      .15        .06            .90            .00      
State Street Research Aggressive Growth Portfolio                                                                   
  (10)(11)...........................................    .73      .15        .06            .94            .00      
Loomis Sayles Small Cap Portfolio (10)...............    .90      .15        .07           1.12            .00      
Russell 2000(R) Index Portfolio......................    .25      .15        .24            .64            .00      
State Street Research Aurora Portfolio (10)..........    .85      .15        .10           1.10            .00      
Franklin Templeton Small Cap Growth Portfolio                                                                       
  (8)(10)............................................    .90      .15        .61           1.66            .36      
T. Rowe Price Small Cap Growth Portfolio (10)........    .52      .15        .09            .76            .00      
Scudder Global Equity Portfolio (10).................    .64      .15        .17            .96            .00      
Morgan Stanley EAFE(R) Index Portfolio (8)...........    .30      .15        .49            .94            .04      
Putnam International Stock Portfolio (10)............    .90      .15        .22           1.27            .00      
                                                                                                      --------------

                                                                [Download Table]


  METROPOLITAN FUND CLASS E ANNUAL EXPENSES FOR FISCAL YEAR ENDING DECEMBER 31, 2002
                                                      --------------                
  (as a percentage of average net assets) (13)            D-E=F                     
                                                          TOTAL                     
                                                      EXPENSES AFTER                
                                                         WAIVER/                    
                                                      REIMBURSEMENT                 
--------------------------------------------------------------------                
                                                                                    
Met/Putnam Voyager Portfolio (8)(10).................      1.15                     
T. Rowe Price Large Cap Growth Portfolio (10)(11)....       .92                     
FI Mid Cap Opportunities Portfolio (8)(10)...........      1.20                     
MetLife Mid Cap Stock Index Portfolio................       .58                     
Harris Oakmark Focused Value Portfolio...............       .97                     
Neuberger Berman Partners Mid Cap Value                                             
  Portfolio (10)(11).................................       .95                     
Janus Mid Cap Portfolio (10).........................       .90                     
State Street Research Aggressive Growth Portfolio                                   
  (10)(11)...........................................       .94                     
Loomis Sayles Small Cap Portfolio (10)...............      1.12                     
Russell 2000(R) Index Portfolio......................       .64                     
State Street Research Aurora Portfolio (10)..........      1.10                     
Franklin Templeton Small Cap Growth Portfolio                                       
  (8)(10)............................................      1.30                     
T. Rowe Price Small Cap Growth Portfolio (10)........       .76                     
Scudder Global Equity Portfolio (10).................       .96                     
Morgan Stanley EAFE(R) Index Portfolio (8)...........       .90                     
Putnam International Stock Portfolio (10)............      1.27                     
                                                      --------------                

                                                        [Enlarge/Download Table]

  MET                                                                                                               
  INVESTORS FUND CLASS E ANNUAL EXPENSES FOR FISCAL YEAR ENDING DECEMBER 31, 2002                                   
                                                                                                      --------------
  (as a percentage of average net assets) (13)                                            A+B+C=D                   
                                                                             C             TOTAL                    
                                                          A        B   OTHER EXPENSES EXPENSES BEFORE       E       
                                                      MANAGEMENT 12b-1     BEFORE         WAIVER/        WAIVER/    
                                                         FEES    FEES  REIMBURSEMENT   REIMBURSEMENT  REIMBURSEMENT 
--------------------------------------------------------------------------------------------------------------------
                                                                                                                    
PIMCO Total Return Portfolio.........................    .50      .15        .15            .80            .00      
Lord Abbett Bond Debenture Portfolio (9)(12).........    .60      .15        .23            .98            .08      
Janus Aggressive Growth Portfolio (9)(10)(11)(16)....    .80      .15        .62           1.57            .52      
Met/AIM Mid Cap Core Equity Portfolio (9)(11)........    .75      .15        .85           1.75            .65      
T. Rowe Price Mid-Cap Growth Portfolio (9)(11)(15)...    .75      .15        .54           1.44            .34      
Met/AIM Small Cap Growth Portfolio (9)(11)...........    .90      .15       1.18           2.23           1.03      
PIMCO Innovation Portfolio (9)(11)...................    .95      .15        .73           1.83            .58      
Harris Oakmark International Portfolio (9)(11)(14)...    .85      .15       1.42           2.42           1.07      
MFS Research International Portfolio (9)(10).........    .80      .15        .87           1.82            .57      
                                                                                                      --------------

                                                                [Download Table]

  MET                                                                            
  INVESTORS FUND CLASS E ANNUAL EXPENSES FOR FISCAL YEAR ENDING DECEMBER 31, 2002
                                                      --------------             
  (as a percentage of average net assets) (13)            D-E=F                  
                                                          TOTAL                  
                                                      EXPENSES AFTER             
                                                         WAIVER/                 
                                                      REIMBURSEMENT              
--------------------------------------------------------------------             
                                                                                 
PIMCO Total Return Portfolio.........................       .80                  
Lord Abbett Bond Debenture Portfolio (9)(12).........       .90                  
Janus Aggressive Growth Portfolio (9)(10)(11)(16)....      1.05                  
Met/AIM Mid Cap Core Equity Portfolio (9)(11)........      1.10                  
T. Rowe Price Mid-Cap Growth Portfolio (9)(11)(15)...      1.10                  
Met/AIM Small Cap Growth Portfolio (9)(11)...........      1.20                  
PIMCO Innovation Portfolio (9)(11)...................      1.25                  
Harris Oakmark International Portfolio (9)(11)(14)...      1.35                  
MFS Research International Portfolio (9)(10).........      1.25                  
                                                      --------------             

                                                                            11

485BPOS
16th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 16th
                                                        [Enlarge/Download Table]


  AMERICAN FUNDS CLASS 2 ANNUAL EXPENSES FOR FISCAL YEAR ENDING DECEMBER 31, 2002                                            
                                                                                                 ----------------------------
                                                                                     A+B+C=D                       D-E=F     
  (as a percentage of average net assets) (13)                          C             TOTAL                        TOTAL     
                                                     A        B   OTHER EXPENSES EXPENSES BEFORE       E       EXPENSES AFTER
                                                 MANAGEMENT 12b-1     BEFORE         WAIVER/        WAIVER/       WAIVER/    
                                                    FEES    FEES  REIMBURSEMENT   REIMBURSEMENT  REIMBURSEMENT REIMBURSEMENT 
-----------------------------------------------------------------------------------------------------------------------------
                                                                                                                             
   American Funds Growth-Income Portfolio                                                                                    
     (10).......................................    .33      .25       .02             .60            .00            .60     
   American Funds Growth Portfolio (10).........    .38      .25       .02             .65            .00            .65     
   American Funds Global Small                                                                                               
     Capitalization Portfolio (10)..............    .80      .25       .04            1.09            .00           1.09     
                                                                                                 ----------------------------

/10/Each Portfolio's management fee decreases when its assets grow to certain 
dollar amounts. The "break point" dollar amounts at which the management
fee declines are more fully explained in the prospectus and SAI for each
respective fund.                                                        

/11/Certain Metropolitan Fund and Met Investors Fund sub-investment managers  
directed certain portfolio trades to brokers who paid a portion of the  
Portfolio's expenses. In addition, Met Investors Fund has entered into  
arrangements with its custodian whereby credits realized as a result of 
this practice were used to reduce a portion of each participating       
   Portfolio's expenses. The expense information for the Metropolitan Fund and
   Met Investors Fund Portfolios does not reflect these reductions or credits.

/12/On April 29, 2002, the State Street Research Income Portfolio of the        
Metropolitan Fund was merged into the State Street Research Bond Income 
Portfolio of the New England Zenith Fund. On April 29, 2002, the Loomis 
 Sayles High Yield Bond Portfolio of the Metropolitan Fund was merged into
the Lord Abbett Bond Debenture Portfolio of the Met Investors Fund.     

/13/Each of the Metropolitan Fund, Met Investors Fund and American Funds has    
  adopted a Distribution Plan under Rule 12b-1 of the Investment Company Act
 of 1940. The Distribution Plan is described in more detail in each Fund's
prospectus. We are paid the Rule 12b-1 fee.                             

/14/On January 1, 2003, Harris Associates L.P. became the sub-investment        
   manager for the State Street Research Concentrated International Portfolio,
which changed its name to Harris Oakmark International Portfolio.       

/15/On January 1, 2003, T. Rowe Price Associates Inc. became the sub-investment 
  manager for the MFS Mid Cap Growth Portfolio, which changed its name to T.
Rowe Price Mid-Cap Growth Portfolio.                                    

/16/On April 28, 2003, the Janus Growth Portfolio of the Metropolitan Fund was  
    merged into the Janus Aggressive Growth Portfolio of the Met Investors Fund.

/17/State Street Research Money Market Portfolio is only available in the C     
  Class Deferred Annuity purchased after April 30, 2003 and, when available,
a Deferred Annuity with the optional Guaranteed Minimum Income Benefit  
issued in New York State.                                               

12                                                                              

485BPOS
17th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 17th
EXAMPLES                                                                    
The examples are intended to help you compare the cost of investing in      
the Deferred Annuity with the cost of investing in other variable           
annuity contracts. These costs include the contract owner transaction       
expenses (described in the first table), the Separate Account and other     
costs you bear while you hold the Deferred Annuity (described in the        
second table) and Portfolio fees and expenses (described in the third       
table).                                                                     

Example 1.  This example shows the dollar amount of expenses that you       
would bear directly or indirectly on a $10,000 investment for the time      
periods indicated. Your actual costs may be higher or lower.                
Assumptions:                                                                
. reimbursement and/or waiver of expenses was not in effect;                
. you bear the minimum or maximum fees and expenses of any of the           
Portfolios;                                                             
. a total Account Balance of $39,000 (for purposes of determining the       
impact of the Annual Contract Fee);                                     
. you select the B Class;                                                   
. the underlying Portfolio earns a 5% annual return;                        
. you select the Greater of Annual Step-Up or 5% Annual Increase Death      
Benefit;                                                                
. you select the Guaranteed Minimum Income Benefit;                         
. you select the Earnings Preservation Benefit; and                         
. you fully surrender your contract, with applicable withdrawal charges     
deducted.                                                               

                                                                [Download Table]


                                      1      3      5     10   
                                     YEAR  YEARS  YEARS  YEARS 
---------------------------------------------------------------
                                                               
Maximum............................ $1,414 $2,647 $3,817 $6,651
Minimum............................ $  992 $1,441 $1,904 $3,310

Example 2.  This example shows the dollar amount of expenses that you       
would bear directly or indirectly on a $10,000 investment for the time      
periods indicated. Your actual costs may be higher or lower.                
Assumptions:                                                                
. reimbursement and/or waiver of expenses was not in effect;                
. you bear the minimum or maximum fees and expenses of any of the           
Portfolios;                                                             
. a total Account Balance of $39,000 (for purposes of determining the       
impact of the Annual Contract Fee);                                     
. you select the B Class;                                                   
. the underlying Portfolio earns a 5% annual return;                        
. you select the Greater of Annual Step-Up or 5% Annual Increase Death      
Benefit;                                                                
. you select the Guaranteed Minimum Income Benefit;                         
. you select the Earnings Preservation Benefit: and                         
. you do not surrender your contract or you elect to annuitize (elect a     
pay-out option with an income payment type under which you receive      
income payments over your lifetime) (no withdrawal charges would be     
deducted).                                                              

                                                                [Download Table]


                                                    1     3      5     10   
                                                   YEAR YEARS  YEARS  YEARS 
----------------------------------------------------------------------------
                                                                            
Maximum........................................... $714 $2,107 $3,457 $6,651
Minimum........................................... $292 $  901 $1,544 $3,310

                                                                            13

485BPOS
18th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 18th
Example 3.  This example shows the dollar amount of expenses that you would 
bear directly or indirectly on a $10,000 investment for the periods         
indicated. Your actual costs may be higher or lower.                        
Assumptions:                                                                
. reimbursement and/or waiver of expenses was not in effect;                
. you bear the minimum or maximum fees and expenses of any of the           
Portfolios;                                                             
. a total Account Balance of $55,000 (for purposes of determining the       
impact of the Annual Contract Fee);                                     
. you select the Bonus Class;                                               
. the underlying Portfolio earns a 5% annual return;                        
. you select the Greater of Annual Step-Up or 5% Annual Increase Death      
Benefit;                                                                
. you select the Guaranteed Minimum Income Benefit;                         
. you select the Earnings Preservation Benefit; and                         
. you fully surrender your contract, with applicable withdrawal charges     
deducted.                                                               

                                                                [Download Table]


        1 YEAR 3 YEARS 5 YEARS 10 YEARS
---------------------------------------
                                       
Maximum $1,657 $2,947  $4,177   $6,819 
Minimum $1,236 $1,752  $2,299   $3,574 

Example 4.  This example shows the dollar amount of expenses that you would 
bear directly or indirectly on a $10,000 investment for the time periods    
indicated. Your actual costs may be higher or lower. Assumptions:           
. reimbursement and/or waiver of expenses was not in effect;                
. you bear the minimum or maximum fees and expenses of any of the           
Portfolios;                                                             
. a total Account Balance of $55,000 (for purposes of determining the       
impact of the Annual Contract Fee);                                     
. you select the Bonus Class;                                               
. the underlying Portfolio earns a 5% annual return;                        
. you select the Greater of Annual Step-Up or 5% Annual Increase Death      
Benefit;                                                                
. you select the Guaranteed Minimum Income Benefit;                         
. you select the Earnings Preservation Benefit; and                         
. you do not surrender your contract or you elect to annuitize (elect a     
 pay-out option with an income payment type under which you receive income
payments over your lifetime) (no withdrawal charges would be deducted). 

                                                                [Download Table]


                               1 YEAR 3 YEARS 5 YEARS 10 YEARS
--------------------------------------------------------------
                                                              
Maximum.......................  $757  $2,227  $3,637   $6,819 
Minimum.......................  $336  $1,032  $1,759   $3,574 

14                                                                              

485BPOS
19th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 19th
Example 5.  This example shows the dollar amount of expenses that you would 
bear directly or indirectly on a $10,000 investment for the time periods    
indicated. Your actual costs may be higher or lower.                        
Assumptions:                                                                
. reimbursement and/or waiver of expenses was not in effect;                
. you bear the minimum or maximum fees and expenses of any of the           
Portfolios;                                                             
. a total Account Balance of $83,000 (for purposes of determining the       
impact of the Annual Contract Fee);                                     
. you select the C Class;                                                   
. the underlying Portfolio earns a 5% annual return;                        
. you select the Greater of Annual Step-Up or 5% Annual Increase Death      
Benefit;                                                                
. you select the Guaranteed Minimum Income Benefit;                         
. you select the Earnings Preservation Benefit; and                         
. you surrender your contract, do not surrender your contract, you elect to 
annuitize (elect a pay-out option with an income type under which you   
receive income payments over your life time), or you do not elect to    
annuitize (no withdrawal charges apply to the C Class).                 

                                                                [Download Table]


                                                         1     3      5     10   
                                                        YEAR YEARS  YEARS  YEARS 
---------------------------------------------------------------------------------
                                                                                 
Maximum................................................ $750 $2,207 $3,608 $6,880
Minimum................................................ $329 $1,011 $1,725 $3,662

Example 6.  This example shows the dollar amount of expenses that you would 
bear directly or indirectly on a $10,000 investment for the time periods    
indicated. Your actual costs may be higher or lower.                        
Assumptions:                                                                
. reimbursement and/or waiver of expenses was not in effect;                
. you bear the minimum or maximum fees and expenses of any of the           
Portfolios;                                                             
. a total Account Balance of $83,000 (for purposes of determining the       
impact of the Annual Contract Fee);                                     
. you select the L Class;                                                   
. the underlying Portfolio earns a 5% annual return;                        
. you select the Greater of Annual Step-Up or 5% Annual Increase Death      
Benefit;                                                                
. you select the Guaranteed Minimum Income Benefit;                         
. you select the Earnings Preservation Benefit; and                         
. you fully surrender your contract with applicable withdrawal charges      
deducted.                                                               

                                                        [Enlarge/Download Table]


                                                                      3      5     10   
                                                             1 YEAR YEARS  YEARS  YEARS 
----------------------------------------------------------------------------------------
                                                                                        
Maximum..................................................... $1,435 $2,616 $3,545 $6,785
Minimum..................................................... $1,014 $1,415 $1,649 $3,517

                                                                            15

485BPOS
20th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 20th
                                                        [Enlarge/Download Table]

  Example 7.  This example shows the dollar amount of expenses                            
  that you would bear directly or indirectly on a $10,000                                 
  investment for the time periods indicated. Your actual costs                            
  may be higher or lower.                                                                 
  Assumptions:                                                                            
  . reimbursement and/or waiver of expenses was not in effect;                            
  . you bear the minimum or maximum fees and expenses of any of                           
    the Portfolios;                                                                       
  . a total Account Balance of $83,000 (for purposes of                                   
    determining the impact of the Annual Contract Fee);                                   
  . you select the L Class;                                                               
  . the underlying Portfolio earns a 5% annual return;                                    
  . you select the Greater of Annual Step-Up or 5% Annual                                 
    Increase Death Benefit;                                                               
  . you select the Guaranteed Minimum Income Benefit;                                     
  . you select the Earnings Preservation Benefit; and                                     
  . you do not surrender your contract or you elect to                                    
    annuitize (elect a pay-out option with an income type under                           
    which you receive income payments over your life time) (no                            
    withdrawal charges would be deducted).                                                

                                                                                     10   
                                                             1 YEAR 3 YEARS 5 YEARS YEARS 
------------------------------------------------------------------------------------------
                                                                                          
Maximum.....................................................  $735  $2,166  $3,545  $6,785
Minimum.....................................................  $314  $  965  $1,649  $3,517

16                                                                              

485BPOS
21st Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 21st
ACCUMULATION UNIT VALUES FOR EACH INVESTMENT DIVISION                     

These tables and bar charts show fluctuations in the Accumulation Unit    
  Values for two of the possible mixes offered within the Deferred Annuity for
  each investment division from year end to year end. The information in these
tables and charts has been derived from the Separate Account's full financial   
statements or other reports (such as the annual report). The first table and    
charts show the Deferred Annuity mix that bears the total highest charge, and   
the second table and charts show the Deferred Annuity mix that bears the total  
lowest charge. The mix with the total highest charge has these features: Bonus  
Class, the Greater of Annual Step-Up or 5% Annual Increase Death Benefit,       
Earnings Preservation Benefit and the Guaranteed Minimum Income Benefit. (In    
terms of the calculation for this mix, the Guaranteed Minimum Income Benefit    
charge is made by canceling accumulation units and, therefore, this charge is   
not reflected in the Accumulation Unit Value. However, purchasing this option   
with the others will result in the highest overall charge.) The mix with the    
total lowest charge has these features: B Class and no optional benefit. All    
other possible mixes for each investment division within the Deferred Annuity   
appear in the SAI, which is available upon request without charge by            
calling 1-800-638-7732.                                                         

                                                        [Enlarge/Download Table]

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

                                                                                 NUMBER OF    
PREFERENCE PLUS SELECT DEFERRED               BEGINNING OF YEAR END OF YEAR    ACCUMULATION   
ANNUITIES TABLE I AND BAR CHART I               ACCUMULATION    ACCUMULATION UNITS END OF YEAR
(HIGHEST POSSIBLE MIX)                   YEAR    UNIT VALUE      UNIT VALUE   (IN THOUSANDS)  
----------------------------------------------------------------------------------------------
                                                                                              
Lehman Brothers(R) Aggregate Bond Index                                                       
  Division (c).......................... 2002      $11.12          $11.97          17.13      

                                         2001       10.95           11.12              0      
  [CHART]                                                                                     

   Year End Accumulation Unit Value                                                           

PIMCO Total Return Division (c)......... 2002       10.37           11.10          12.75      

                                         2001       10.21           10.37              0      
  [CHART]                                                                                     

   Year End Accumulation Unit Value                                                           

Salomon Brothers U.S. Government                                                              
  Division (c).......................... 2002       13.95           14.69           8.18      

                                         2001       13.73           13.95              0      
  [CHART]                                                                                     

   Year End Accumulation Unit Value                                                           

State Street Research Bond Income                                                             
  Division (a).......................... 2002       36.37           38.47           3.12      

                                         2001       35.51           36.37              0      
  [CHART]                                                                                     

   Year End Accumulation Unit Value                                                           

Salomon Brothers Strategic Bond                                                               
  Opportunities Division (c)............ 2002       15.00           16.05           1.81      

                                         2001       14.76           15.00              0      
  [CHART]                                                                                     

   Year End Accumulation Unit Value                                                           

                                                                            17

485BPOS
22nd Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 22nd
                                                        [Enlarge/Download Table]

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

                                                                                 NUMBER OF    
PREFERENCE PLUS SELECT DEFERRED               BEGINNING OF YEAR END OF YEAR    ACCUMULATION   
ANNUITIES TABLE I AND BAR CHART I               ACCUMULATION    ACCUMULATION UNITS END OF YEAR
(HIGHEST POSSIBLE MIX)                   YEAR    UNIT VALUE      UNIT VALUE   (IN THOUSANDS)  
----------------------------------------------------------------------------------------------
                                                                                              

State Street Research Diversified                                                             
  Division (c).......................... 2002      $31.99          $26.94          2.01       

                                         2001       32.93           31.99             0       
  [CHART]                                                                                     

   Year End Accumulation Unit Value                                                           
Lord Abbett Bond Debenture Division (b). 2002       10.11           10.00          6.53       

                                         2001       10.39           10.11             0       
  [CHART]                                                                                     

   Year End Accumulation Unit Value                                                           

American Funds Growth-Income Division                                                         
  (c)................................... 2002       72.02           57.44          3.21       

                                         2001       75.25           72.02             0       
  [CHART]                                                                                     

   Year End Accumulation Unit Value                                                           

MetLife Stock Index Division (c)........ 2002       32.78           24.88          6.75       

                                         2001       34.83           32.78             0       
  [CHART]                                                                                     

   Year End Accumulation Unit Value                                                           

MFS Investors Trust Division (c)........ 2002        8.12            6.33             0       

                                         2001        8.57            8.12             0       
  [CHART]                                                                                     

   Year End Accumulation Unit Value                                                           

MFS Research Managers Division (c)...... 2002        8.24            6.11          2.56       

                                         2001        9.23            8.24             0       
  [CHART]                                                                                     

   Year End Accumulation Unit Value                                                           

State Street Research Investment Trust                                                        
  Division (c).......................... 2002       56.77           40.98          1.50       

                                         2001       61.03           56.77             0       
  [CHART]                                                                                     

   Year End Accumulation Unit Value                                                           

Davis Venture Value Division (c)........ 2002       24.97           20.39          3.70       

                                         2001       25.75           24.97             0       
  [CHART]                                                                                     

   Year End Accumulation Unit Value                                                           

18                                                                              

485BPOS
23rd Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 23rd
                                                        [Enlarge/Download Table]

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

                                                                                 NUMBER OF    
PREFERENCE PLUS SELECT DEFERRED               BEGINNING OF YEAR END OF YEAR    ACCUMULATION   
ANNUITIES TABLE I AND BAR CHART I               ACCUMULATION    ACCUMULATION UNITS END OF YEAR
(HIGHEST POSSIBLE MIX)                   YEAR    UNIT VALUE      UNIT VALUE   (IN THOUSANDS)  
----------------------------------------------------------------------------------------------
                                                                                              

FI Structured Equity Division (d)....... 2002      $ 21.16         $17.32             0       

  [CHART]                                                                                     

   Year End Accumulation Unit Value                                                           

Harris Oakmark Large Cap Value Division                                                       
  (c)................................... 2002        11.20           9.39             0       

                                         2001        11.40          11.20             0       
  [CHART]                                                                                     

   Year End Accumulation Unit Value                                                           

State Street Research Large Cap Value                                                         
  Division (d).......................... 2002        10.00           7.88             0       

  [CHART]                                                                                     

   Year End Accumulation Unit Value                                                           

American Funds Growth Division (c)...... 2002        96.82          71.44          2.15       

                                         2001       107.26          96.82             0       
  [CHART]                                                                                     

   Year End Accumulation Unit Value                                                           

Janus Growth Division (c)(e)             2002         7.71           5.22          7.36       

                                         2001         8.85           7.71             0       
  [CHART]                                                                                     

   Year End Accumulation Unit Value                                                           

MET/Putnam Voyager Division (c)......... 2002         4.86           3.38          5.27       

                                         2001         5.34           4.86             0       
  [CHART]                                                                                     

   Year End Accumulation Unit Value                                                           

T. Rowe Price Large Cap Growth Division                                                       
  (c)................................... 2002        11.23           8.43           .71       

                                         2001        11.40          11.23             0       
  [CHART]                                                                                     

   Year End Accumulation Unit Value                                                           

FI Mid Cap Opportunities Division (d)... 2002        10.00           8.07           .02       

  [CHART]                                                                                     

   Year End Accumulation Unit Value                                                           

                                                                            19

485BPOS
24th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 24th
                                                        [Enlarge/Download Table]

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

                                                                                 NUMBER OF    
PREFERENCE PLUS SELECT DEFERRED               BEGINNING OF YEAR END OF YEAR    ACCUMULATION   
ANNUITIES TABLE I AND BAR CHART I               ACCUMULATION    ACCUMULATION UNITS END OF YEAR
(HIGHEST POSSIBLE MIX)                   YEAR    UNIT VALUE      UNIT VALUE   (IN THOUSANDS)  
----------------------------------------------------------------------------------------------
                                                                                              

MET/AIM Mid Cap Core Equity Division (d) 2002       11.35            9.58              0      

  [CHART]                                                                                     

   Year End Accumulation Unit Value                                                           

MetLife Mid Cap Stock Index Division (c) 2002      $10.20          $ 8.48           9.91      

                                         2001       10.34           10.20              0      
  [CHART]                                                                                     

   Year End Accumulation Unit Value                                                           

Harris Oakmark Focused Value Division                                                         
  (c)................................... 2002       24.52           21.83           8.47      

                                         2001       23.78           24.52              0      
  [CHART]                                                                                     

   Year End Accumulation Unit Value                                                           

Neuberger Berman Partners Mid Cap Value                                                       
  Division (c).......................... 2002       14.69           12.98            .66      

                                         2001       15.05           14.69              0      
  [CHART]                                                                                     

   Year End Accumulation Unit Value                                                           

Janus Mid Cap Division (c).............. 2002       15.08           10.45            .40      

                                         2001       17.58           15.08              0      
  [CHART]                                                                                     

   Year End Accumulation Unit Value                                                           

State Street Research Aggressive Growth                                                       
  Division (c).......................... 2002       31.42           21.89           1.85      

                                         2001       33.43           31.42              0      
  [CHART]                                                                                     

   Year End Accumulation Unit Value                                                           

T. Rowe Price Mid-Cap Growth Division                                                         
  (c)................................... 2002        8.20            4.50          12.10      

                                         2001        8.61            8.20              0      
  [CHART]                                                                                     

   Year End Accumulation Unit Value                                                           

Loomis Sayles Small Cap Division (c).... 2002       21.13           16.20            .51      

                                         2001       21.66           21.13              0      
  [CHART]                                                                                     

   Year End Accumulation Unit Value                                                           

20                                                                              

485BPOS
25th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 25th
                                                        [Enlarge/Download Table]

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

                                                                                 NUMBER OF    
PREFERENCE PLUS SELECT DEFERRED               BEGINNING OF YEAR END OF YEAR    ACCUMULATION   
ANNUITIES TABLE I AND BAR CHART I               ACCUMULATION    ACCUMULATION UNITS END OF YEAR
(HIGHEST POSSIBLE MIX)                   YEAR    UNIT VALUE      UNIT VALUE   (IN THOUSANDS)  
----------------------------------------------------------------------------------------------
                                                                                              

Russell 2000(R) Index Division (c)...... 2002      $11.67          $ 9.07           4.78      

                                         2001       11.77           11.67              0      
  [CHART]                                                                                     

   Year End Accumulation Unit Value                                                           

State Street Research Aurora Division                                                         
  (c)................................... 2002       13.81           10.61          22.51      

                                         2001       14.10           13.81              0      
  [CHART]                                                                                     

   Year End Accumulation Unit Value                                                           

Franklin Templeton Small Growth                                                               
  Division (c).......................... 2002        8.75            6.18              0      

                                         2001        9.16            8.75              0      
  [CHART]                                                                                     

   Year End Accumulation Unit Value                                                           

MET/AIM Small Cap Growth Division (d)... 2002       11.18            8.41            .02      

  [CHART]                                                                                     

   Year End Accumulation Unit Value                                                           

T. Rowe Price Small Cap Growth Division                                                       
  (c)................................... 2002       11.62            8.33            .49      

                                         2001       11.85           11.62              0      
  [CHART]                                                                                     

   Year End Accumulation Unit Value                                                           

PIMCO Innovation Division (c)........... 2002        6.05            2.93          11.78      

                                         2001        7.03            6.05              0      
  [CHART]                                                                                     

   Year End Accumulation Unit Value                                                           

Scudder Global Equity Division (c)...... 2002       11.74            9.63           7.13      

                                         2001       12.49           11.74              0      
  [CHART]                                                                                     

   Year End Accumulation Unit Value                                                           

Harris Oakmark International Division                                                         
  (d)................................... 2002       10.89            8.75           1.21      

  [CHART]                                                                                     

   Year End Accumulation Unit Value                                                           

MFS Research International Division (c). 2002        8.32            7.19           3.59      

                                         2001        8.99            8.32              0      
  [CHART]                                                                                     

   Year End Accumulation Unit Value                                                           

                                                                            21

485BPOS
26th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 26th
                                                        [Enlarge/Download Table]

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

                                                                                 NUMBER OF    
PREFERENCE PLUS SELECT DEFERRED               BEGINNING OF YEAR END OF YEAR    ACCUMULATION   
ANNUITIES TABLE I AND BAR CHART I               ACCUMULATION    ACCUMULATION UNITS END OF YEAR
(HIGHEST POSSIBLE MIX)                   YEAR    UNIT VALUE      UNIT VALUE   (IN THOUSANDS)  
----------------------------------------------------------------------------------------------
                                                                                              

Morgan Stanley EAFE(R) Index Division                                                         
  (c)................................... 2002      $ 8.40          $ 6.85          13.17      

                                         2001        9.18            8.40              0      
  [CHART]                                                                                     

   Year End Accumulation Unit Value                                                           
Putnam International Stock Division (c). 2002       10.52            8.48           4.16      

                                         2001       11.30           10.52              0      
  [CHART]                                                                                     

   Year End Accumulation Unit Value                                                           

American Funds Global Small                                                                   
  Capitalization Division (c)........... 2002       13.08           10.35           6.01      

                                         2001       13.44           13.08              0      
  [CHART]                                                                                     

   Year End Accumulation Unit Value                                                           

22                                                                              

485BPOS
27th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 27th
ACCUMULATION UNIT VALUES FOR EACH INVESTMENT DIVISION                     

                                                        [Enlarge/Download Table]

-----------------------------------------------------------------------------------------
                                                                            NUMBER OF    
PREFERENCE PLUS SELECT DEFERRED          BEGINNING OF YEAR END OF YEAR    ACCUMULATION   
ANNUITIES TABLE II AND BAR CHART           ACCUMULATION    ACCUMULATION UNITS END OF YEAR
II (LOWEST POSSIBLE MIX)            YEAR    UNIT VALUE      UNIT VALUE   (IN THOUSANDS)  
-----------------------------------------------------------------------------------------
                                                                                         

Lehman Brothers(R) Aggregate Bond                                                        
  Index Division (c)............... 2002      $11.46          $12.46         1270.56     

                                    2001       11.23           11.46               0     
   [CHART]                                                                               

 Year End Accumulation Unit Value                                                        

PIMCO Total Return Division (c).... 2002       10.46           11.30         1550.34     

                                    2001       10.26           10.46               0     
   [CHART]                                                                               

 Year End Accumulation Unit Value                                                        

Salomon Brothers U.S. Government                                                         
  Division (c)..................... 2002       14.94           15.87          883.29     

                                    2001       14.64           14.94               0     
   [CHART]                                                                               

 Year End Accumulation Unit Value                                                        

State Street Research Bond Income                                                        
  Division (a)..................... 2002       43.36           46.31          207.29     

                                    2001       42.18           43.36               0     
   [CHART]                                                                               

 Year End Accumulation Unit Value                                                        

Salomon Brothers Strategic Bond                                                          
  Opportunities Division (c)....... 2002       16.06           17.34          206.42     

                                    2001       15.74           16.06               0     
   [CHART]                                                                               

 Year End Accumulation Unit Value                                                        

State Street Research Diversified                                                        
  Division (c)..................... 2002       37.06           31.50          212.79     

                                    2001       38.00           37.06               0     
   [CHART]                                                                               

 Year End Accumulation Unit Value                                                        

Lord Abbett Bond Debenture                                                               
  Division (b)..................... 2002       10.58           10.57          108.57     

                                    2001       10.84           10.58               0     
   [CHART]                                                                               

 Year End Accumulation Unit Value                                                        

American Funds Growth-Income                                                             
  Division (c)..................... 2002       85.37           68.74          127.46     

                                    2001       88.86           85.37               0     
   [CHART]                                                                               

 Year End Accumulation Unit Value                                                        

                                                                            23

485BPOS
28th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 28th
                                                        [Enlarge/Download Table]

-----------------------------------------------------------------------------------------
                                                                            NUMBER OF    
PREFERENCE PLUS SELECT DEFERRED          BEGINNING OF YEAR END OF YEAR    ACCUMULATION   
ANNUITIES TABLE II AND BAR CHART           ACCUMULATION    ACCUMULATION UNITS END OF YEAR
II (LOWEST POSSIBLE MIX)            YEAR    UNIT VALUE      UNIT VALUE   (IN THOUSANDS)  
-----------------------------------------------------------------------------------------
                                                                                         

MetLife Stock Index Division (c)... 2002      $ 36.62        $ 28.06         444.24      

                                    2001        38.76          36.62              0      
   [CHART]                                                                               

 Year End Accumulation Unit Value                                                        

MFS Investors Trust Division (c)... 2002         8.33           6.56          73.89      

                                    2001         8.75           8.33              0      
   [CHART]                                                                               

 Year End Accumulation Unit Value                                                        

MFS Research Managers Division (c). 2002         8.31           6.22          30.52      

                                    2001         9.43           8.31              0      
   [CHART]                                                                               

 Year End Accumulation Unit Value                                                        

State Street Research Investment                                                         
  Trust Division (c)............... 2002        67.70          49.34          79.78      

                                    2001        72.49          67.70              0      
   [CHART]                                                                               

 Year End Accumulation Unit Value                                                        

Davis Venture Value Division (c)... 2002        26.73          22.03         115.14      

                                    2001        27.46          26.73              0      
   [CHART]                                                                               

 Year End Accumulation Unit Value                                                        

FI Structured Equity Division (d).. 2002        23.05          18.99          11.62      

   [CHART]                                                                               

Harris Oakmark Large Cap Value                                                           
  Division (c)..................... 2002        11.54           9.77         841.40      

                                    2001        11.70          11.54              0      
   [CHART]                                                                               

 Year End Accumulation Unit Value                                                        

State Street Research Large Cap                                                          
  Value Division (d)............... 2002        10.00           7.93          61.99      

   [CHART]                                                                               

American Funds Growth Division (c). 2002       114.78          85.50         100.78      

                                    2001       126.65         114.78              0      
   [CHART]                                                                               

 Year End Accumulation Unit Value                                                        

24                                                                              

485BPOS
29th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 29th
                                                        [Enlarge/Download Table]

------------------------------------------------------------------------------------------------------------
                                                                                               NUMBER OF    
                                                            BEGINNING OF YEAR END OF YEAR    ACCUMULATION   
PREFERENCE PLUS SELECT DEFERRED ANNUITIES TABLE II AND        ACCUMULATION    ACCUMULATION UNITS END OF YEAR
BAR CHART II (LOWEST POSSIBLE MIX)                     YEAR    UNIT VALUE      UNIT VALUE   (IN THOUSANDS)  
------------------------------------------------------------------------------------------------------------
                                                                                                            

          Janus Growth Division (c)(e)................ 2002      $ 7.75          $ 5.31         121.49      

                                                       2001        8.87            7.75              0      
             [CHART]                                                                                        

           Year End Accumulation Unit Value                                                                 

          Met/Putnam Voyager Division (c)............. 2002        4.94            3.46         205.62      

                                                       2001        5.40            4.94              0      
             [CHART]                                                                                        

           Year End Accumulation Unit Value                                                                 

          T. Rowe Price Large Cap Growth                                                                    
            Division (c).............................. 2002       11.57            8.77         192.64      

                                                       2001       11.70           11.57              0      
             [CHART]                                                                                        

           Year End Accumulation Unit Value                                                                 

          FI Mid Cap Opportunities Division                                                                 
            (d)....................................... 2002       10.00            8.12          53.00      

             [CHART]                                                                                        

           Year End Accumulation Unit Value                                                                 

          MET/AIM Mid Cap Core Equity                                                                       
            Division (d).............................. 2002       11.41            9.70          60.12      

             [CHART]                                                                                        

          MetLife Mid Cap Stock Index                                                                       
            Division (c).............................. 2002       10.35            8.68         569.76      

                                                       2001       10.45           10.35              0      
             [CHART]                                                                                        

           Year End Accumulation Unit Value                                                                 

          Harris Oakmark Focused Value                                                                      
            Division (c).............................. 2002       26.62           23.93         319.70      

                                                       2001       25.72           26.62              0      
             [CHART]                                                                                        

           Year End Accumulation Unit Value                                                                 

          Neuberger Berman Partners Mid Cap                                                                 
            Value Division (c)........................ 2002       15.14           13.50         222.74      

                                                       2001       15.44           15.14              0      
             [CHART]                                                                                        

           Year End Accumulation Unit Value                                                                 

          Janus Mid Cap Division (c).................. 2002       15.79           11.05         147.10      

                                                       2001       18.33           15.79              0      
             [CHART]                                                                                        

           Year End Accumulation Unit Value                                                                 

                                                                            25

485BPOS
30th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 30th
                                                        [Enlarge/Download Table]

-----------------------------------------------------------------------------------------
                                                                            NUMBER OF    
PREFERENCE PLUS SELECT DEFERRED          BEGINNING OF YEAR END OF YEAR    ACCUMULATION   
ANNUITIES TABLE II AND BAR CHART           ACCUMULATION    ACCUMULATION UNITS END OF YEAR
II (LOWEST POSSIBLE MIX)            YEAR    UNIT VALUE      UNIT VALUE   (IN THOUSANDS)  
-----------------------------------------------------------------------------------------
                                                                                         

State Street Research Aggressive                                                         
  Growth Division (c).............. 2002      $35.78          $25.16          26.83      

                                    2001       37.92           35.78              0      
   [CHART]                                                                               

 Year End Accumulation Unit Value                                                        

T. Rowe Price Mid-Cap Growth                                                             
  Division (c)..................... 2002        8.27            4.57         160.72      

                                    2001        8.65            8.27              0      
   [CHART]                                                                               

 Year End Accumulation Unit Value                                                        

Loomis Sayles Small Cap Division                                                         
  (c).............................. 2002       22.73           17.59          30.56      

                                    2001       23.21           22.73              0      
   [CHART]                                                                               

 Year End Accumulation Unit Value                                                        

Russell 2000(R) Index Division (c). 2002       12.03            9.43         325.52      

                                    2001       12.08           12.03              0      
   [CHART]                                                                               

 Year End Accumulation Unit Value                                                        

State Street Research Aurora                                                             
  Division (c)..................... 2002       14.01           10.86         796.00      

                                    2001       14.24           14.01              0      
   [CHART]                                                                               

 Year End Accumulation Unit Value                                                        

Franklin Templeton Small Cap                                                             
  Growth Division (c).............. 2002        8.81            6.28         139.63      

                                    2001        9.18            8.81              0      
   [CHART]                                                                               

 Year End Accumulation Unit Value                                                        

MET/AIM Small Cap Growth Division                                                        
  (d).............................. 2002       11.24            8.51          46.27      

   [CHART]                                                                               

T. Rowe Price Small Cap Growth                                                           
  Division (c)..................... 2002       12.17            8.80         104.81      

                                    2001       12.36           12.17              0      
   [CHART]                                                                               

 Year End Accumulation Unit Value                                                        

26                                                                              

485BPOS
31st Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 31st
                                                        [Enlarge/Download Table]

-----------------------------------------------------------------------------------------
                                                                            NUMBER OF    
PREFERENCE PLUS SELECT DEFERRED          BEGINNING OF YEAR END OF YEAR    ACCUMULATION   
ANNUITIES TABLE II AND BAR CHART           ACCUMULATION    ACCUMULATION UNITS END OF YEAR
II (LOWEST POSSIBLE MIX)            YEAR    UNIT VALUE      UNIT VALUE   (IN THOUSANDS)  
-----------------------------------------------------------------------------------------
                                                                                         

PIMCO Innovation Division (c)...... 2002      $ 6.10          $ 2.98         202.85      

                                    2001        7.06            6.10              0      
   [CHART]                                                                               

 Year End Accumulation Unit Value                                                        

Scudder Global Equity Division (c). 2002       12.29           10.18         112.44      

                                    2001       13.02           12.29              0      
   [CHART]                                                                               

 Year End Accumulation Unit Value                                                        

Harris Oakmark International                                                             
  Division (d)..................... 2002       10.91            8.85          26.55      

   [CHART]                                                                               

MFS Research International                                                               
  Division (c)..................... 2002        8.39            7.32         128.79      

                                    2001        9.03            8.39              0      
   [CHART]                                                                               

 Year End Accumulation Unit Value                                                        

Morgan Stanley EAFE(R) Index                                                             
  Division (c)..................... 2002        8.65            7.12         634.34      

                                    2001        9.42            8.65              0      
   [CHART]                                                                               

 Year End Accumulation Unit Value                                                        

Putnam International Stock                                                               
  Division (c)..................... 2002       11.65            9.48         178.14      

                                    2001       12.45           11.65              0      
   [CHART]                                                                               

 Year End Accumulation Unit Value                                                        

American Funds Global Small                                                              
  Capitalization Division (c)...... 2002       13.55           10.82         175.90      

                                    2001       13.87           13.55              0      
   [CHART]                                                                               

 Year End Accumulation Unit Value                                                        

-----------                                                                     

(a)The assets of State Street Research Income Division were merged into this    
investment division on April 29, 2002. Accumulation unit values prior to  
April 29, 2002 are those of State Street Research Income Division.        

(b)The assets of Loomis Sayles High Yield Bond Division were merged into this   
investment division on April 29, 2002. Accumulation unit values prior to  
April 29, 2002 are those of Loomis Sayles High Yield Bond Division.       

(c)Inception date: August 3, 2001.                                              

(d)Inception date: May 1, 2002.                                                 

(e)The assets in this investment division merged into the Janus Aggressive      
Growth Division on April 28, 2003. This investment division is no longer  
available under the Deferred Annuity.                                     

                                                                            27

485BPOS
32nd Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 32nd
METLIFE                                                                         

Metropolitan Life Insurance Company ("MetLife") is a wholly-owned 
     subsidiary of MetLife, Inc., a publicly traded company. Our main office
     is located at One Madison Avenue, New York, New York 10010. MetLife was
formed under the laws of New York State in 1868. MetLife, Inc., through its     
subsidiaries and affiliates, is a leading provider of insurance and other       
financial services to individual and institutional customers. The MetLife       
companies serve approximately 12 million individuals in the U.S. and companies  
and institutions with 33 million employees and members. It also has             
international insurance operations in 12 countries.                             

[GRAPHIC] 

METROPOLITAN LIFE                                                               

SEPARATE ACCOUNT E                                                              

  We established Metropolitan Life Separate Account E on September 27,
      1983. The purpose of the Separate Account is to hold the variable assets
     that underlie the Preference Plus Select Variable Annuity Contracts and
some other variable annuity contracts we issue. We have registered the Separate 
Account with the Securities and Exchange Commission as a unit investment trust  
under the Investment Company Act of 1940.                                       

The Separate Account's assets are solely for the benefit of those who invest in 
the Separate Account and no one else, including our creditors. We are obligated 
to pay all money we owe under the Deferred Annuities even if that amount        
exceeds the assets in the Separate Account. The assets of the Separate Account  
are held in our name on behalf of the Separate Account and legally belong to    
us. All the income, gains, and losses (realized or unrealized) resulting from   
these assets are credited to or charged against the contracts issued from this  
Separate Account without regard to our other business.                          

28                                                                              

485BPOS
33rd Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 33rd
VARIABLE ANNUITIES                                                              
[GRAPHIC] 
[SIDEBAR: A Deferred Annuity consists of two phases: the accumulation or        
"pay-in" phase and the income or "pay-out" phase.]                              

 This Prospectus describes a type of variable annuity, a Deferred Annuity.
  These annuities are "variable" because the value of your account or income
payment varies based on the investment performance of the investment    
divisions you choose. In short, the value of your Deferred Annuity and your     
income payments under a variable pay-out option of your Deferred Annuity may go 
up or down. Since the investment performance is not guaranteed, your money is   
at risk. The degree of risk will depend on the investment divisions you select. 
The Accumulation Unit Value or Annuity Unit Value for each investment division  
rises or falls based on the investment performance (or "experience") of the     
Portfolio with the same name. MetLife and its affiliates also offer other       
annuities not described in this Prospectus.                                     

The Deferred Annuities have a fixed interest rate option called the "Fixed      
Account." With the Fixed Account, your money earns a rate of interest that we   
guarantee. The Fixed Account is not available to all contractowners. The        
variable pay-out options under the Deferred Annuities have a fixed payment      
option called the "Fixed Income Option." Under the Fixed Income Option, we      
guarantee the amount of your fixed income payments. These fixed options are not 
described in this Prospectus although we occasionally refer to them.            

THE DEFERRED ANNUITY                                                            

  You accumulate money in your account during the pay-in phase by making one
or more purchase payments. MetLife will hold your money and credit      
investment returns as long as the money remains in your account.        

All IRAs receive tax deferral under the Internal Revenue Code. There are no     
additional tax benefits from funding an IRA with a Deferred Annuity. Therefore, 
there should be reasons other than tax deferral for acquiring the Deferred      
Annuity, such as the availability of a guaranteed income for life, the death    
benefits or the other optional benefits available under this Deferred Annuity.  

The pay-out phase begins when you either take all of your money out of the      
account or elect to have us pay you "income" payments using the money in your   
account. The number and the amount of the income payments you receive will      
depend on such things as the type of pay-out option you choose, your investment 
choices, and the amount used to provide your income payments. Because Deferred  
Annuities offer the insurance benefit of income payment options, including our  
guarantee of income for your lifetime, they are "annuities."                    

The Deferred Annuity is offered in several variations, which we call "classes." 
Each class offers you the ability to choose certain features. Each has its own  
Separate Account charge and applicable withdrawal charge (except C Class which  
has no withdrawal charges). The Deferred Annuity also offers you the            
opportunity to choose optional benefits, each for a charge in addition to the   
Separate Account charge with the Basic Death Benefit for that class. If you     

                                                                            29

485BPOS
34th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 34th
purchase any of the optional death benefits, you receive the optional benefit   
in place of the Basic Death Benefit. Some features are not available with the   
Deferred Annuity with the optional Guaranteed Minimum Income Benefit issued in  
New York State (when available), regardless of the class of the Deferred        
Annuity purchased. In deciding what class of the Deferred Annuity to purchase,  
you should consider the amount of Separate Account and withdrawal charges you   
are willing to bear relative to your needs. In deciding whether to purchase any 
of the optional benefits, you should consider the desirability of the benefit   
relative to its additional cost and to your needs. Unless you tell us           
otherwise, we will assume that you are purchasing the B Class Deferred Annuity  
with the Basic Death Benefit and no optional benefits. These optional benefits  
are:                                                                            

[_]an Annual Step-Up Death Benefit;                                             

[_]the Greater of Annual Step-Up or 5% Annual Increase Death Benefit;           

[_]an Earnings Preservation Benefit; and                                        

[_]a Guaranteed Minimum Income Benefit.                                         

Each of these optional benefits is described in more detail later in this       
Prospectus. Optional benefits may not be available in all states.               
[GRAPHIC] 
CLASSES OF THE DEFERRED ANNUITY                                                 

B CLASS                                                                         

The B Class has a 1.25% annual Separate Account charge (1.40% in the case of    
each American Funds investment division) and a declining seven year withdrawal  
charge on each purchase payment. If you choose either of the optional death     
benefits, the Separate Account charge would range from 1.45% to 1.60% or, in    
the case of each American Funds investment division, 1.60% to 1.75%. If you     
choose the optional Earnings Preservation Benefit and either of the optional    
death benefits, the Separate Account charge would range from 1.70% to 1.85% or, 
in the case of each American Funds investment division, 1.85% to 2.00%.         

THE BONUS CLASS (MAY ALSO BE KNOWN AS THE "B PLUS CLASS" IN OUR SALES           
LITERATURE AND ADVERTISING)                                                     

You may purchase a contract in the Bonus Class before your 81st birthday. If    
there are joint owners, the age of the oldest joint owner will be used to       
determine eligibility. Under the Bonus Class Deferred Annuity, we currently     
credit 3% to each of your purchase payments made during the first Contract      
Year. Payments made after age 81 will not receive the 3% credit. The Bonus will 
be applied on a pro-rata basis to the Fixed Account, if available, and the      
investment divisions of the Separate Account based upon your allocation for     
your purchase payments. The Bonus Class has a 1.70% annual Separate Account     
charge (1.85% in the case of each American Funds investment division) and a     
declining seven year withdrawal charge on each purchase payment. If you choose  
either of the optional death benefits, the Separate Account charge would range  
from 1.90% to 2.05% or, in the case of each American Funds investment division, 
2.05% to 2.20%. If you choose the optional Earnings Preservation Benefit and    
either of the optional death benefits, the Separate Account charge              

30                                                                              

485BPOS
35th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 35th
would range from 2.15% to 2.30% or, in the case of each American Funds          
investment division, 2.30% to 2.45%. After you have held the contract for seven 
years, the Separate Account charge declines 0.45% to 1.25% with the Basic Death 
Benefit (1.40% in the case of each American Funds investment division). After   
you have held the contract for seven years, the Separate Account charge         
declines to 1.45% and 1.60%, respectively, for the Annual Step-Up Death Benefit 
and for the Greater of Annual Step-Up or 5% Annual Increase Death Benefit, or,  
in the case of each American Funds investment division, 1.60% to 1.75%.         

Investment returns for the Bonus Class Deferred Annuity may be lower than those 
for the B Class Deferred Annuity if Separate Account investment performance is  
not sufficiently high to offset increased Separate Account charges for the      
Bonus Class Deferred Annuity. (If the Fixed Account is available, Fixed Account 
rates for the Bonus Class may be lower than those declared for the other        
classes.)                                                                       

Therefore, the choice between the Bonus Class and the B Class Deferred Annuity  
is a judgment as to whether a higher Separate Account charge with a 3% credit   
is more advantageous than a lower Separate Account charge without the 3% credit.

There is no guarantee that the Bonus Class Deferred Annuity will have higher    
returns than the B Class Deferred Annuity, the other classes of the Deferred    
Annuity, similar contracts without a bonus or any other investment. The Bonus   
will be credited only to purchase payments made during the first Contract Year, 
while the additional Separate Account charge of 0.45% for the Bonus will be     
assessed on all amounts in the Separate Account for the first seven years.      

The following table demonstrates hypothetical investment returns for a Deferred 
Annuity with the 3% credit compared to a contract without the Bonus. Both       
Deferred Annuities are assumed to have no optional benefits. The figures are    
based on:                                                                       

a)  a $50,000 initial purchase payment with no other purchase payments;         

b)  deduction of the Separate Account charge at a rate of 1.70% (1.25% in years 
  8-10) (Bonus Class Deferred Annuity) and 1.25% (B Class Deferred Annuity);
and                                                                     

c)  an assumed investment return for the investment choices before Separate     
Account charges of 8.05% for each of 10 years.                          

                                                                            31

485BPOS
36th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 36th
                                                                [Download Table]


                                      Bonus Class                B Class        
                                (1.70% Separate Account  (1.25% Separate Account
Contract Year                  charge for first 7 years)    charge all years)   
--------------------------------------------------------------------------------
                                                                                
1                                       $54,770                  $53,400        
--------------------------------------------------------------------------------
2                                       $58,248                  $57,031        
--------------------------------------------------------------------------------
3                                       $61,947                  $60,909        
--------------------------------------------------------------------------------
4                                       $65,881                  $65,051        
--------------------------------------------------------------------------------
5                                       $70,064                  $69,475        
--------------------------------------------------------------------------------
6                                       $74,513                  $74,199        
--------------------------------------------------------------------------------
7                                       $79,245                  $79,244        
--------------------------------------------------------------------------------
8                                       $84,633                  $84,633        
--------------------------------------------------------------------------------
9                                       $90,388                  $90,388        
--------------------------------------------------------------------------------
10                                      $96,535                  $96,534        
--------------------------------------------------------------------------------

Generally, the higher the rate of return, the more advantageous the Bonus Class 
is. The table above assumes no additional purchase payments are made after the  
first Contract Anniversary. If additional purchase payments were made to the    
Deferred Annuity, the rate of return would have to be higher in order to        
"break-even" by the end of the seventh year.                                    

The decision to elect the Bonus Class is irrevocable. We may make a profit from 
the additional Separate Account charge. The Enhanced Dollar Cost Averaging      
Program is not available with the Bonus Class.                                  

The guaranteed annuity rates for the Bonus Class are the same as those for the  
other classes of the Deferred Annuity. Current rates for the Bonus Class may be 
lower than those for the other classes of the Deferred Annuity.                 

Any 3% credit does not become yours until after the "free look" period; we      
retrieve it if you exercise the "free look". Your exercise of the "free look"   
is the only circumstance under which the 3% credit will be retrieved (commonly  
called "recapture"). We then will refund either your purchase payments or       
Account Balance, depending upon your state law. In the case of a refund of      
Account Balance, the refunded amount will include any investment performance on 
amounts attributable to the 3% credit. If there have been any losses from the   
investment performance on the amounts attributable to the 3% credit, we will    
bear that loss.                                                                 

If we agree to permit your beneficiary to hold the Traditional IRA Deferred     
Annuity in your name after your death for his/her benefit, a new contract will  
be issued in order to facilitate the distribution of payments. The new contract 
will be issued in the same contract class, except, if you had a Bonus Class     
Deferred Annuity, the contract will be issued as a B Class Deferred Annuity.    

32                                                                              

485BPOS
37th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 37th
C CLASS                                                                         

The C Class has a 1.65% annual Separate Account charge (1.80% in the case of    
each American Funds investment division) and no withdrawal charge. If you       
choose either of the optional death benefits, the Separate Account charge would 
range from 1.85% to 2.00% or, in the case of each American Funds investment     
division, 2.00% to 2.15%. If you choose the optional Earnings Preservation      
Benefit and either of the optional death benefits, the Separate Account charge  
would range from 2.10% to 2.25% or, in the case of each American Funds          
investment division, 2.25% to 2.40%. The Fixed Account, the Enhanced Dollar     
Cost Averaging Program, Equity Generator/SM/ and the Allocator/SM/ are not      
available in the C Class Deferred Annuity purchased after April 30, 2003. A     
money market investment division is available in the C Class Deferred Annuity   
purchased after April 30, 2003.                                                 

L CLASS                                                                         

The L Class has a 1.50% annual Separate Account charge (1.65% in the case of    
each American Funds investment division) and a declining three year withdrawal  
charge on each purchase payment. If you choose either of the optional death     
benefits, the Separate Account charge would range from 1.70% to 1.85% or, in    
the case of each American Funds investment division, 1.85% to 2.00%. If you     
choose the optional Earnings Preservation Benefit and either of the optional    
death benefits, the Separate Account charge would range from 1.95% to 2.10% or, 
in the case of each American Funds investment division, 2.10% to 2.25%. If the  
Fixed Account is available, Fixed Account rates for the L Class may be lower    
than those declared for the other classes.                                      

                                                                            33

485BPOS
38th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 38th
YOUR INVESTMENT CHOICES                                                         

The Metropolitan Fund, the Met Investors Fund and the American Funds and each   
of their Portfolios are more fully described in their respective prospectuses   
and SAIs. The SAIs are available upon your request. The Metropolitan Fund, the  
Met Investors Fund and the American Funds prospectuses are attached at the end  
of this Prospectus. You should read these prospectuses carefully before making  
purchase payments to the investment divisions. The classes of shares available  
to the Deferred Annuities, Class E of the Metropolitan Fund and the Met         
Investors Fund, and Class 2 of the American Funds, each imposes a 12b-1 Plan    
fee.                                                                            

[SIDEBAR: The investment divisions generally offer the opportunity for greater  
returns over the long term than our guaranteed fixed rate option.]              

The investment choices are listed in the approximate risk relationship among    
the available Portfolios, with all those within the same investment style       
listed in alphabetical order. You should understand that each Portfolio incurs  
its own risk which will be dependent upon the investment decisions made by the  
respective Portfolio's investment manager. Furthermore, the name of a Portfolio 
may not be indicative of all the investments held by the Portfolio. The list is 
intended to be a guide. Please consult the appropriate Fund prospectus for more 
information regarding the investment objectives and investment practices of     
each Portfolio. Since your Account Balance or income payments are subject to    
the risks associated with investing in stocks and bonds, your Account Balance   
or variable income payments based on amounts allocated to the investment        
divisions may go down as well as up.                                            

[SIDEBAR: The degree of investment risk you assume will depend on the           
investment divisions you choose. We have listed your choices in the approximate 
order of risk from the most conservative to the most aggressive with all those  
within the same investment style listed in alphabetical order.]                 

                                                        [Enlarge/Download Table]
                                                                                            
STATE STREET RESEARCH MONEY MARKET PORTFOLIO                                       [GRAPHIC]
LEHMAN BROTHERS(R) AGGREGATE BOND INDEX         LOOMIS SAYLES SMALL CAP PORTFOLIO           
 PORTFOLIO                                      RUSSELL 2000(R) INDEX PORTFOLIO             
PIMCO TOTAL RETURN PORTFOLIO                    STATE STREET RESEARCH AURORA PORTFOLIO      
SALOMON BROTHERS U.S. GOVERNMENT PORTFOLIO      FRANKLIN TEMPLETON SMALL CAP GROWTH         
STATE STREET RESEARCH BOND INCOME PORTFOLIO      PORTFOLIO                                  
SALOMON BROTHERS STRATEGIC BOND                 MET/AIM SMALL CAP GROWTH PORTFOLIO          
 OPPORTUNITIES PORTFOLIO                        T. ROWE PRICE SMALL CAP GROWTH PORTFOLIO    
STATE STREET RESEARCH DIVERSIFIED PORTFOLIO     PIMCO INNOVATION PORTFOLIO                  
LORD ABBETT BOND DEBENTURE PORTFOLIO            SCUDDER GLOBAL EQUITY PORTFOLIO             
AMERICAN FUNDS GROWTH-INCOME PORTFOLIO          HARRIS OAKMARK INTERNATIONAL PORTFOLIO      
METLIFE STOCK INDEX PORTFOLIO                   MFS RESEARCH INTERNATIONAL PORTFOLIO        
MFS INVESTORS TRUST PORTFOLIO                   MORGAN STANLEY EAFE(R) INDEX PORTFOLIO      
MFS RESEARCH MANAGERS PORTFOLIO                 PUTNAM INTERNATIONAL STOCK PORTFOLIO        
STATE STREET RESEARCH INVESTMENT TRUST          AMERICAN FUNDS GLOBAL SMALL CAPITALIZATION  
 PORTFOLIO                                       PORTFOLIO                                  
DAVIS VENTURE VALUE PORTFOLIO                                                               
FI STRUCTURED EQUITY PORTFOLIO                                                              
HARRIS OAKMARK LARGE CAP VALUE PORTFOLIO                                                    
STATE STREET RESEARCH LARGE CAP VALUE PORTFOLIO                                             
AMERICAN FUNDS GROWTH PORTFOLIO                                                             
JANUS AGGRESSIVE GROWTH PORTFOLIO                                                           
MET/PUTNAM VOYAGER PORTFOLIO                                                                
T. ROWE PRICE LARGE CAP GROWTH PORTFOLIO                                                    
FI MID CAP OPPORTUNITIES PORTFOLIO                                                          
MET/AIM MID CAP CORE EQUITY PORTFOLIO                                                       
METLIFE MID CAP STOCK INDEX PORTFOLIO                                                       
HARRIS OAKMARK FOCUSED VALUE PORTFOLIO                                                      
NEUBERGER BERMAN PARTNERS MID CAP VALUE                                                     
 PORTFOLIO                                                                                  
JANUS MID CAP PORTFOLIO                                                                     
STATE STREET RESEARCH AGGRESSIVE GROWTH                                                     
 PORTFOLIO                                                                                  
T. ROWE PRICE MID-CAP GROWTH PORTFOLIO                                                      

[SIDEBAR: While the investment divisions and their comparably named Portfolios  
may have names, investment objectives and management which are identical or     
similar to publicly available mutual funds, these investment divisions and      
Portfolios are not those mutual funds. The Portfolios most likely will not have 
the same performance experience as any publicly available mutual fund.]         

34                                                                              

485BPOS
39th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 39th
Some of the investment choices may not be available under the terms of your     
Deferred Annuity. Your contract or other correspondence we provide you will     
indicate the investment divisions that are available to you. The State Street   
Research Money Market Division is only available in the C Class Deferred        
Annuity purchased after April 30, 2003 and, when available, a Deferred Annuity  
issued in New York State with the optional Guaranteed Minimum Income Benefit.   
Your investment choices may be limited because:                                 

[_]We have restricted the available investment divisions.                       
[_]Some of the investment divisions are not approved in your state.             
[_]Your employer, association or other group contract holder limits the         
available investment divisions.                                           

The investment divisions buy and sell shares of corresponding mutual fund       
portfolios. These Portfolios, which are part of either the Metropolitan Fund,   
the Met Investors Fund or the American Funds, invest in stocks, bonds and other 
investments. All dividends declared by the Portfolios are earned by the         
Separate Account and are reinvested. Therefore, no dividends are distributed to 
you under the Deferred Annuities. You pay no transaction expenses (i.e.,        
front-end or back-end sales load charges) as a result of the Separate Account's 
purchase or sale of these mutual fund shares. The Portfolios of the             
Metropolitan Fund and the Met Investors Fund are available by purchasing        
annuities and life insurance policies from MetLife or certain of its affiliated 
insurance companies and are never sold directly to the public. The American     
Funds Portfolios are made available by the American Funds only through various  
insurance company annuities and life insurance policies.                        

The Metropolitan Fund, the Met Investors Fund and the American Funds are each   
"series" type funds registered with the Securities and Exchange Commission as   
an "open-end management investment company" under the Investment Company Act of 
1940 (the "1940 Act"). A "series" fund means that each Portfolio is one of      
several available through the fund. Except for the Janus Mid Cap, the Harris    
Oakmark Focused Value and the Harris Oakmark International (formerly State      
Street Research Concentrated International) Portfolios, each Portfolio is       
"diversified" under the 1940 Act.                                               

The Portfolios of the Metropolitan Fund pay MetLife Advisers, LLC, a MetLife    
affiliate, a monthly fee for its services as their investment manager. The      
Portfolios of the Met Investors Fund pay Met Investors Advisory LLC, a MetLife  
affiliate, a monthly fee for its services as their investment manager. The      
Portfolios of the American Funds pay Capital Research and Management Company a  
monthly fee for its services as their investment manager. These fees, as well   
as the operating expenses paid by each Portfolio, are described in the          
applicable prospectus and SAI for the Metropolitan Fund, the Met Investors Fund 
and the American Funds.                                                         

In addition, the Metropolitan Fund and the Met Investors Fund prospectuses each 
discuss other separate accounts of MetLife and its affiliated insurance         
companies and certain qualified retirement plans that invest in the             
Metropolitan Fund or the Met Investors Fund. The risks of these arrangements    
are discussed in each Fund's prospectus.                                        

                                                                            35

485BPOS
40th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 40th
DEFERRED ANNUITIES                                                              

[SIDEBAR: These Deferred Annuities may be either issued to you as an individual 
or to a non-natural entity, such as a trust.]                                   

This prospectus describes the following Deferred Annuities under which you can  
accumulate money:                                                               

[_] Non-Qualified                                                           

[_] Traditional IRAs (Individual Retirement Annuities)                      

[_] Roth IRAs (Roth Individual Retirement Annuities)                        

[_] SEPs (Simplified Employee Pensions)                                     

[_] SIMPLE IRAs (Savings Incentive Match Plan for Employees Individual      
Retirement Annuities)                                               
                                                         [GRAPHIC]
THE DEFERRED ANNUITY AND YOUR RETIREMENT PLAN                                   

If you participate through a retirement plan or other group arrangement, the
Deferred Annuity may provide that all or some of your rights or choices as  
described in this Prospectus are subject to the plan's terms. For example,      
limitations on your rights may apply to investment choices, purchase payments,  
withdrawals, transfers, the death benefit and pay-out options. We may rely on   
your employer's or plan administrator's statements to us as to the terms of the 
plan or your entitlement to any amounts. We are not a party to your employer's  
retirement plan. We will not be responsible for determining what your plan      
says. You should consult your Deferred Annuity contract and plan document to    
see how you may be affected.                                                    

[SIDEBAR: We created these investment strategies to help you manage your money. 
You decide if one is appropriate for you, based upon your risk tolerance and    
savings goals. Also, the strategies were designed to help you take advantage of 
the tax-deferred status of a Non-Qualified annuity.]                            

AUTOMATED INVESTMENT STRATEGIES AND ENHANCED DOLLAR COST AVERAGING PROGRAM      

There are four automated investment strategies and an Enhanced Dollar Cost  
Averaging Program available to you. The Enhanced Dollar Cost Averaging      
Program is not available to the Bonus or C Class Deferred Annuities. The Equity 
Generator/SM/ and the Allocator/SM/ are not available in the C Class Deferred   
Annuity purchased after April 30, 2003 and, when available, a Deferred Annuity  
issued in New York State with the optional Guaranteed Minimum Income Benefit.   
The automated investment strategies and the Enhanced Dollar Cost Averaging      
Program are available to you without any additional charges. As with any        
investment program, none of them can guarantee a gain--you can lose money. We   
may modify or terminate any of the strategies at any time. You may              

36                                                                              

485BPOS
41st Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 41st
have only one strategy in effect at a time. You may have the Enhanced           
Dollar Cost Averaging Program and either the Index Selector/SM/ or              
Rebalancer/SM/ in effect at the same time, but you may not have the Enhanced    
Dollar Cost Averaging Program in effect at the same time as the Equity          
Generator/SM/ or the Allocator./SM/                                             

Enhanced Dollar Cost Averaging Program: Each month, for a specified period, for 
example three, six or twelve months, a portion of a specified dollar amount of  
a purchase payment that you have agreed to allocate to the Enhanced Dollar Cost 
Averaging Program will be transferred from the program to any of the investment 
divisions you choose. While amounts are in the program, we may credit them with 
a higher rate than that declared for the Fixed Account in general. (Amounts in  
the Enhanced Dollar Cost Averaging Program are in our Fixed Account. For        
convenience, we may refer to it as "the program" or the "Enhanced Dollar Cost   
Averaging Program balance" to avoid confusion with the Fixed Account in         
general.) The transferred amount will be equal to the amount allocated to the   
program divided by the number of months in the program. The interest            
attributable to your Enhanced Dollar Cost Averaging Program is transferred      
separately in the month after the last scheduled payment. Transfers from the    
Enhanced Dollar Cost Averaging Program to the Separate Account begin on any day 
we receive your payment and the Exchange is open, other than the 29th, 30th or  
31st of the month. If purchase payments are received on those days, transfers   
begin on the first day of the next month. Subsequent transfers will be made on  
the same day in succeeding months. If the scheduled transfer date occurs on a   
date the Exchange is closed, the transfer will be made on the next date the     
Exchange is open. Transfers are made on a first-in-first-out basis.             

If a subsequent purchase payment is allocated to the program, that subsequent   
payment will receive the enhanced program interest rate in effect on that date. 
The allocation of a subsequent purchase payment to the program increases the    
dollar amount transferred each month. We determine the increase in your monthly 
dollar amount by dividing your new allocation by the number of months in the    
program you chose. Your existing monthly transfer amount is then increased by   
this additional amount to determine the total new dollar amount to be           
transferred each month. Then, the time period for the transfer of a specific    
purchase payment and interest attributable to that purchase payment will be     
accelerated. Your Enhanced Dollar Cost Averaging Program will terminate on the  
date of the last transfer.                                                      

Unless you instruct us otherwise, if you cancel your participation in the       
Enhanced Dollar Cost Averaging Program, any remaining dollar amounts will be    
transferred to the Fixed Account or, in the case of a Deferred Annuity issued   
in New York State with the optional Guaranteed Minimum Income Benefit, to the   
State Street Research Money Market investment division. We may impose minimum   
purchase payments and other restrictions to utilize this program.               

                                                                            37

485BPOS
42nd Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 42nd
EXAMPLE:  

                                                                [Download Table]

                                                                    Amount     
                                                               Transferred from
                                                                  EDCA Fixed   
                                                                  Account to   
                                                 EDCA 6-Month      Selected    
                                                    Program     PPS Investment 
                               Date     Amount   Interest Rate   Division(s)   
                             --------- -------   ------------- ----------------
                                                                               
A   Enhanced Dollar Cost                                                       
    Averaging Program                                                          
    ("EDCA") 6-Month                                                           
    Program Initial Purchase                                                   
    Payment                  5/1/2003  $12,000*      9.00%          $2,000*    
-------------------------------------------------------------------------------
B                            6/1/2003                               $2,000     
-------------------------------------------------------------------------------
C                            7/1/2003                               $2,000     
-------------------------------------------------------------------------------
D   EDCA 6-Month Program                                                       
    Subsequent Purchase                                                        
    Payment                  8/1/2003  $18,000**     8.00%         $5,000**    
-------------------------------------------------------------------------------
E                            9/1/2003                               $5,000     
-------------------------------------------------------------------------------
F                            10/1/2003                              $5,000     
-------------------------------------------------------------------------------
G                            11/1/2003                              $5,000     
-------------------------------------------------------------------------------
H                            12/1/2003                             $4,483.22   

*   $2,000/month to be transferred from first purchase payment of $12,000       
divided by 6 months.                                                    

**  Additional $3,000/month to be transferred from subsequent purchase payment  
of $18,000 divided by 6 months. Amounts transferred are from the oldest 
  purchase payment and its interest, and so forth, until the EDCA balance is
exhausted.                                                              

The example is hypothetical and is not based upon actual previous or current    
rates.                                                                          

[GRAPHIC] 

The Equity Generator/SM/: An amount equal to the interest earned in the Fixed   
Account is transferred on the day of the month that is the same as the Contract 
Anniversary date (e.g., the 10th, 11th, etc.), to any one investment division,  
based on your selection. If the Contract Anniversary day is the 29th, 30th or   
31st of the month, transfers are made on the first day of the next month. If    
the scheduled transfer date occurs on a date the Exchange is closed, the        
transfer will be made on the next date the Exchange is open. If your Fixed      
Account balance at the time of a scheduled transfer is zero, this strategy is   
automatically discontinued.                                                     

[GRAPHIC] 

The Rebalancer/SM/: You select a specific asset allocation for your entire      
Account Balance from among the investment divisions and the Fixed Account, if   
available. Every three months, on the day of the month that is the same as the  
Contract Anniversary date (e.g., the 10th, 11th, etc.), we transfer amounts     
among these options to bring the percentage of your Account Balance in each     
option back to your original allocation. If the Contract Anniversary day is the 
29th, 30th or 31st of the month, transfers are made on the first day of the next

38                                                                              

485BPOS
43rd Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 43rd
month. If the scheduled transfer date occurs on a date the Exchange is closed,  
the transfer will be made on the next date the Exchange is open. You may        
utilize the Rebalancer with the Enhanced Dollar Cost Averaging Program,         
provided that 100% of your Account Balance (other than amounts in the Enhanced  
Dollar Cost Averaging Program) is allocated to this strategy. In the future, we 
may permit you to allocate less than 100% of your Account Balance to this       
strategy other than when utilized with the Enhanced Dollar Cost Averaging       
Program.                                                                        

[GRAPHIC]                                                                       

The Index Selector/SM/: You may select one of five asset allocation models      
which are designed to correlate to various risk tolerance levels. Based on the  
model you choose, your entire Account Balance is divided among the Lehman       
Brothers(R) Aggregate Bond Index, MetLife Stock Index, Morgan Stanley EAFE(R)   
Index, Russell 2000(R) Index and MetLife Mid Cap Stock Index investment         
divisions and the Fixed Account (or the State Street Research Money Market      
investment division in lieu of the Fixed Account for C Class Deferred Annuities 
or Deferred Annuities issued in New York State with the optional Guaranteed     
Minimum Income Benefit). Every three months, on the day of the month that is    
the same as the Contract Anniversary date (e.g., the 10th, 11th, etc.),         

the percentage in each of these investment divisions and the Fixed Account (or  
the State Street Research Money Market investment division) is brought back to  
the selected model percentage by transferring amounts among the investment      
divisions and the Fixed Account. If the Contract Anniversary day is the 29th,   
30th or 31st of the month, transfers are made on the first day of the next      
month. If the scheduled transfer date occurs on a date the Exchange is closed,  
the transfer will be made on the next date the Exchange is open.                

You may utilize the Index Selector with the Enhanced Dollar Cost Averaging      
Program, provided that 100% of  your Account Balance (other than amounts in the 
Enhanced Dollar Cost Averaging Program) is allocated to this strategy. In the   
future, we may permit you to allocate less than 100% of your Account Balance to 
this strategy other than when utilized with the Enhanced Dollar Cost Averaging  
Program. This strategy may experience more volatility than our other            
strategies. The models are subject to change from time to time. We provide the  
elements to formulate the models. We may rely on a third party for its          
expertise in creating appropriate allocations.                                  

[GRAPHIC]                                                                       

The Allocator/SM/: Each month a dollar amount you choose is transferred from    
the Fixed Account to any of the investment divisions you choose. You select the 
day of the month (other than the 29th, 30th or 31st of the month) and the       
number of months over which the transfers will occur. A minimum periodic        
transfer of $50 is required. Once your Fixed Account balance is exhausted, this 
strategy is automatically discontinued.                                         

The Allocator, Equity Generator and the Enhanced Dollar Cost Averaging Program  
are dollar cost averaging strategies. Dollar cost averaging involves investing  
at regular intervals of time. Since this involves continuously investing        
regardless of fluctuating prices, you should consider whether you can continue  
the strategy through periods of fluctuating prices.                             

                                                                            39

485BPOS
44th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 44th
The chart below summarizes the availability of the Enhanced Dollar Cost         
Averaging Program and the automated investment strategies:                      

                                                        [Enlarge/Download Table]

                                                         Bonus       C           L         
                                          B Class        Class     Class       Class       
                                           ----------    -----     -----       ----------  
                                                                                           
a. Enhanced Dollar Cost Averaging           Yes           No        No          Yes        
            Program ("EDCA")                                                               
-------------------------------------------------------------------------------------------
b. Choice of One Automated Investment                                                      
          Strategy                                                                         
-------------------------------------------------------------------------------------------
 1. Equity Generator                        Yes           Yes       No          Yes        
                                          (but not                            (but not     
                                         with EDCA)                          with EDCA)    
                                         --------------------------------------------------
                                         (but not with the optional Guaranteed Minimum     
                                         Income Benefit, when available, in New York State)
-------------------------------------------------------------------------------------------
 2. Rebalancer                              Yes           Yes       Yes         Yes        
-------------------------------------------------------------------------------------------
 3. Index Selector                          Yes           Yes       Yes         Yes        
-------------------------------------------------------------------------------------------
 4. Allocator                               Yes           Yes       No          Yes        
                                          (but not                            (but not     
                                         with EDCA)                          with EDCA)    
                                         --------------------------------------------------
                                         (but not with the optional Guaranteed Minimum     
                                         Income Benefit, when available, in New York State)
-------------------------------------------------------------------------------------------

[SIDEBAR: You may make purchase payments to your Deferred Annuity whenever you  
choose, up to age 91 (89 in Massachusetts for the B and Bonus Class). However,  
Federal tax rules may limit the amount and frequency of your purchase payments.]

PURCHASE PAYMENTS                                                               

The B Class minimum initial purchase payment is $5,000 for the          
Non-Qualified Deferred Annuity and $2,000 for the Traditional IRA, Roth 
IRA, SEP and SIMPLE IRA Deferred Annuities. The minimum initial purchase        
payment for automated purchase payments ("check-o-matic") for the B Class       
Non-Qualified Deferred Annuity is $500; the minimum initial automated purchase  
payment for the B Class Traditional IRA, Roth IRA, SEP and SIMPLE IRA Deferred  
Annuities is $100. If you choose to purchase a Bonus Class Deferred Annuity,    
the minimum initial purchase payment is $10,000. The minimum initial purchase   
payment for the C Class and L Class is $25,000. We reserve the right to accept  
amounts transferred from other annuity contracts that meet the minimum initial  
purchase payment at the time of the transfer request, but, at the time of       
receipt in good order, do not meet such requirements because of loss in market  
value.                                                                          

If you are purchasing the Deferred Annuity as the beneficiary of a deceased     
person's IRA, purchase payments must consist of monies which are direct         
transfers (as defined under the tax law) from other IRA contracts in the name   
of the same decedent.                                                           

You may continue to make purchase payments while you receive Systematic         
Withdrawal Program payments, as described later in this Prospectus, unless your 
purchase payments are made through check-o-matic. The minimum subsequent        
purchase payment for all Deferred Annuities is $500, except for automated       
purchase payments, where the minimum subsequent purchase payment is $100, or    
any amount we are required to accept under applicable tax law.                  

40                                                                              

485BPOS
45th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 45th
SEP and SIMPLE IRA Deferred Annuities are issued on an individual basis,        
however, purchase payments are generally forwarded to us on a collective        
("group") basis by the employer, either directly or automatically. If purchase  
payments are made on this type of "group" basis by the employer for SEP and     
SIMPLE IRA Deferred Annuities, the "group" needs only to satisfy the minimum    
initial and subsequent purchase payment amounts based upon the number of        
persons in the "group".                                                         

We will issue the B, C or L Class Deferred Annuity to you before your 91st      
birthday (89 in Massachusetts for the B Class). We will issue the Bonus Class   
Deferred Annuity to you before your 81st birthday. We will accept your purchase 
payments up to your 91st birthday (89 in Massachusetts for the B and Bonus      
Class).                                                                         

The chart below summarizes the minimum initial and subsequent purchase payments 
for each Contract Class:                                                        

                                                                [Download Table]

                                               Bonus     C       L   
                                 B Class       Class   Class   Class 
                            ----------------  ------- ------- -------
                                                                     
Initial Purchase Payment         $5,000       $10,000 $25,000 $25,000
                                ($2,000:                             
                             Tradition IRA,                          
                              Roth IRA, SEP                          
                             and SIMPLE IRA)                         
---------------------------------------------------------------------
Subsequent Purchase Payment       $500         $500    $500    $500  
---------------------------------------------------------------------
Automated Purchase Payments                                          
---------------------------------------------------------------------
 Initial                          $500                               
                                 ($100:                              
                            Traditional IRA,                         
                              Roth IRA, SEP                          
                             and SIMPLE IRA)  $10,000 $25,000 $25,000
---------------------------------------------------------------------
 Subsequent                       $100         $100    $100    $100  
                            -----------------------------------------
                                (or any amount we are required to    
                                accept under applicable tax law)     
---------------------------------------------------------------------

ALLOCATION OF PURCHASE PAYMENTS                                                 

You decide how your money is allocated among the Fixed Account, if available,   
the Enhanced Dollar Cost Averaging Program and the investment divisions. You    
can change your allocations for future purchase payments. We will make          
allocation changes when we receive your request for a change. You may also      
specify an effective date for the change as long as it is within 30 days after  
we receive the request.                                                         

[GRAPHIC] 

                                                                            41

485BPOS
46th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 46th
AUTOMATED PURCHASE PAYMENTS                                                     

You may elect to have purchase payments made automatically. With check-o-matic  
your bank deducts money from your bank account and makes the purchase payment   
for you.                                                                        

LIMITS ON PURCHASE PAYMENTS                                                     

Your ability to make purchase payments may be limited by:                       

[_]Federal tax laws or regulatory requirements;                                 

[_]Our right to limit the total of your purchase payments to $1,000,000; and    

[_]Our right to restrict purchase payments to the Fixed Account, if available,  
and the Enhanced Dollar Cost Averaging Program if (1) the interest rate we
credit in the Fixed Account is equal to the guaranteed minimum rate as    
stated in your Deferred Annuity; or (2) your Fixed Account balance and    
Enhanced Dollar Cost Averaging Program balance is equal to or exceeds our 
maximum for a Fixed Account allocation (e.g., $1,000,000).                

42                                                                              

485BPOS
47th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 47th
THE VALUE OF YOUR INVESTMENT                                                    

Accumulation Units are credited to you when you make purchase payments or 
transfers into an investment division. When you withdraw or transfer money
from an investment division (as well as when we apply the Annual Contract Fee   
and the Guaranteed Minimum Income Benefit charge, if chosen as an optional      
benefit), accumulation units are liquidated. We determine the number of         
accumulation units by dividing the amount of your purchase payment, transfer or 
withdrawal by the Accumulation Unit Value on the date of the transaction.       

[GRAPHIC] 

This is how we calculate the Accumulation Unit Value for each investment        
division:                                                                       

[_]First, we determine the change in investment performance (including any      
investment-related charge) for the underlying Portfolio from the previous 
trading day to the current trading day;                                   

[_]Next, we subtract the daily equivalent of the Separate Account charge (for   
the class of the Deferred Annuity you have chosen, including any optional 
benefits) for each day since the last Accumulation Unit Value was         
calculated; and                                                           

[_]Finally, we multiply the previous Accumulation Unit Value by this result.    

Examples                                                                  
Calculating the Number of Accumulation Units                              

 Assume you make a purchase payment of $500 into one investment division and
 that investment division's Accumulation Unit Value is currently $10.00. You
would be credited with 50 accumulation units.                             

$500 = 50 accumulation units                
---                                         
$10                                         

Calculating the Accumulation Unit Value                                   

Assume yesterday's Accumulation Unit Value was $10.00 and the number we   
calculate for today's investment experience (minus charges) for an        
  underlying portfolio is 1.05. Today's Accumulation Unit Value is $10.50. The
value of your $500 investment is then $525 (50 x $10.50 = $525).          

$10.00 x 1.05 = $10.50 is the new Accumulation Unit Value 

However, assume that today's investment experience (minus charges) is .95 
  instead of 1.05. Today's Accumulation Unit Value is $9.50. The value of your
$500 investment is then $475 (50 x $9.50 = $475).                         

$10.00 x .95 = $9.50 is the new Accumulation Unit Value 

                                                                            43

485BPOS
48th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 48th
TRANSFER PRIVILEGE                                                              

[SIDEBAR: You may transfer money within your contract. You will not incur       
current taxes on your earnings or any withdrawal charges as a result of         
transferring your money.]                                                       

You may make tax-free transfers among investment divisions or between the 
investment divisions and the Fixed Account, if available. Each transfer must be 
at least $500 or, if less, your entire balance in an investment division        
(unless the transfer is in connection with an automated investment strategy or  
the Enhanced Dollar Cost Averaging Program). For us to process a transfer, you  
must tell us:                                                                   

[_]The percentage or dollar amount of the transfer;                             

[_]The investment divisions (or Fixed Account) from which you want the money to 
be transferred;                                                           

[_]The investment divisions (or Fixed Account) to which you want the money to   
be transferred; and                                                       

[_]Whether you intend to start, stop, modify or continue unchanged an automated 
investment strategy by making the transfer.                               

We reserve the right to restrict transfers to the Fixed Account (which is not   
available in the C Class Deferred Annuity purchased after April 30, 2003, or,   
when available, a Deferred Annuity with the optional Guaranteed Minimum Income  
Benefit issued in New York State) if (1) the interest rate we credit in the     
Fixed Account is equal to the guaranteed minimum rate as stated in your         
Deferred Annuity; or (2) your Fixed Account balance is equal to or exceeds our  
maximum for Fixed Account allocations (e.g., $1,000,000).                       

Each Fund may restrict or refuse purchases or redemptions of shares in their    
Portfolios as a result of certain market timing activities. You should read the 
Fund prospectuses for more details.                                             

The Deferred Annuity is not designed to permit market timing. Accordingly, we   
reserve the right to: (1) defer the transfer privilege at any time that we are  
unable to purchase or redeem shares in the Portfolios, to the extent permitted  
by law; (2) limit the number of transfers you may make each Contract Year;      
(3) limit the dollar amount that may be transferred at any one time.;           
(4) charge a transfer fee; and (5) impose limitations and modifications where   
exercise of the transfer privilege creates or would create a disadvantage to    
other contract owners. Examples of these limitations or modifications include,  
but are not limited to: (1) imposing a minimum time period between each         
transfer; and (2) requiring a signed, written request to make the transfer. In  
addition, in accordance with applicable law, we reserve the right to modify or  
terminate the transfer privilege at any time.                                   

Your transfer request must be in good order and completed prior to the close of 
the Exchange on one of our business days if you want the transaction to take    
place on that day. All other transfer requests in good order will be processed  
on our next business day.                                                       

We may require you to use our original forms.                                   

44                                                                              

485BPOS
49th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 49th
[GRAPHIC] 
ACCESS TO YOUR MONEY                                                            

[SIDEBAR: Income taxes, tax penalties and withdrawal charges may apply to any   
withdrawal you make.]                                                           

You may withdraw either all or part of your Account Balance from the      
Deferred Annuity. Other than those made through the Systematic Withdrawal 
Program, withdrawals must be at least $500 or the Account Balance, if less. If  
any withdrawal would decrease your Account Balance below $2,000, we will        
consider this a request for a full withdrawal. To process your request, we need 
the following information:                                                      

[_] The percentage or dollar amount of the withdrawal; and                      

[_] The investment divisions (or Fixed Account and Enhanced Dollar Cost         
Averaging Program) from which you want the money to be withdrawn.       

[SIDEBAR: We will withdraw your Systematic Withdrawal Program payments from the 
Fixed Account, if available, the Enhanced Dollar Cost Averaging Program or      
investment divisions you select, either pro-rata or in the proportions you      
request.]                                                                       

[GRAPHIC] 

Your withdrawal may be subject to withdrawal charges.                           

Generally, if you request, we will make payments directly to other investments  
on a tax-free basis. You may only do so if all applicable tax and state         
regulatory requirements are met and we receive all information necessary for us 
to make the payment. We may require you to use our original forms.              

SYSTEMATIC WITHDRAWAL PROGRAM                                                   

Under this program and subject to approval in your state, you may choose to     
automatically withdraw a certain amount each Contract Year. This amount is then 
paid throughout the Contract Year according to the time frame you select, e.g., 
monthly, quarterly, semi-annually or annually. For all contract classes, except 
for the C Class, payments may only be made monthly during the first Contract    
Year. Unless we agree otherwise, this program will not begin within the first   
60 days after the date we have issued you the contract. Once the Systematic     
Withdrawal Program is initiated, the payments will automatically renew each     
Contract Year. Income taxes, tax penalties and withdrawal charges may apply to  
your withdrawals. Program payment amounts are subject to our required minimums  
and administrative restrictions.                                                

If you do not provide us with your desired allocation, or there are             
insufficient amounts in the investment divisions, Enhanced Dollar Cost          
Averaging Program or the Fixed Account that you selected, the payments will be  
taken out pro-rata from the Fixed Account, Enhanced Dollar Cost Averaging       
Program and any investment divisions in which you then have money.              

[SIDEBAR: If you would like to receive your Systematic Withdrawal Program       
payment on or about the first of the month, you should request that the payment 
date be the 20th day of the month.]                                             

Selecting a Payment Date: Your payment date is the date we make the withdrawal. 
You may choose any calendar day for the payment date, other than the 29th, 30th 
or 31st of the month. When you select or change a payment date, we must receive 
your request at least 10 days prior to the selected payment date. If we do not  
receive your request in time, we will make the payment the following month      
after the date you selected. If you do not select a payment date, we will       
automatically begin systematic withdrawals within 30 days after we receive your 
request (other than the 29th, 30th or 31st of the month).                       

You may request to stop your Systematic Withdrawal Program at anytime. We must  
receive any request in good order at least 30 days in advance. Although we      

                                                                            45

485BPOS
50th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 50th
need your written authorization to begin this program, you may cancel this      
program at any time by telephone or by writing to us (or over the Internet, if  
we agree) at our Administrative Office.                                         

[SIDEBAR: Your Account Balance will be reduced by the amount of your Systematic 
Withdrawal Program payments and applicable withdrawal charges. Payments under   
this program are not the same as income payments you would receive from a       
Deferred Annuity payout option.]                                                

Systematic Withdrawal Program payments may be subject to a withdrawal charge    
unless an exception to this charge applies. We will determine separately the    
withdrawal charge and any relevant factors (such as applicable exceptions) for  
each Systematic Withdrawal Program payment as of the date it is withdrawn from  
your Deferred Annuity.                                                          

[SIDEBAR: The Separate Account charges you pay will not reduce the number of    
accumulation units credited to you. Instead, we deduct the charges each time we 
calculate the Accumulation Unit Value.]                                         
[GRAPHIC] 
CHARGES                                                                         

There are two types of charges you pay while you have money in an           
investment division:                                                            

[_] Separate Account charge, and                                                

[_] Investment-related charge.                                                  

SEPARATE ACCOUNT CHARGE                                                         

Each class of the Deferred Annuity has a different Separate Account charge. You 
will pay the Separate Account charge annually based on the average daily value  
of the amount you have in the Separate Account. This charge includes            
insurance-related charges that pay us for the risk that you may live longer     
than we estimated. Then, we could be obligated to pay you more in payments from 
a pay-out option than we anticipated. Also, we bear the risk that the           
guaranteed death benefit we would pay should you die during your pay-in phase   
is larger than your Account Balance. This charge also includes the risk that    
our expenses in administering the Deferred Annuities may be greater than we     
estimated. The Separate Account charge also pays us for our distribution costs  
to both our licensed salespersons and other broker-dealers.                     

The chart below summarizes the Separate Account charge for each class of the    
Deferred Annuity with each death benefit prior to entering the pay-out phase of 
the contract.                                                                   

SEPARATE ACCOUNT CHARGES* 

                                                                [Download Table]

                                                   Bonus                 
                                          B Class Class** C Class L Class
                                          ------- ------- ------- -------
                                                                         
Basic Death Benefit                        1.25%   1.70%   1.65%   1.50% 
-------------------------------------------------------------------------
Optional Annual Step-Up Death Benefit      1.45%   1.90%   1.85%   1.70% 
-------------------------------------------------------------------------
Optional Greater of Annual Step-Up or 5%                                 
  Annual Increase Death Benefit            1.60%   2.05%   2.00%   1.85% 
-------------------------------------------------------------------------
Optional Earnings Preservation Benefit***   .25%    .25%    .25%    .25% 

*   We currently charge an additional Separate Account charge of 0.15% of       
average daily net assets in the American Funds Growth-Income, American  
Funds Growth and American Funds Global Small Capitalization investment  
divisions.                                                              

46                                                                              

485BPOS
51st Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 51st
We reserve the right to impose an increased Separate Account charge on  
investment divisions 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 investment divisions.                                

**  The Separate Account charge for the Bonus Class will be reduced by 0.45%    
after you have held the contract for seven years.                       

*** This charge is in addition to the Separate Account charge with the death    
benefit chosen.                                                         

INVESTMENT-RELATED CHARGE                                                       

This charge has two components. The first pays the investment managers for      
managing money in the Portfolios. The second consists of Portfolio operating    
expenses and 12b-1 Plan fees. The percentage you pay for the investment-related 
charge depends on which investment divisions you select. Each class of shares   
available to the Deferred Annuities has a 12b-1 Plan fee, which pays for        
distribution expenses. The class of shares available in the Metropolitan Fund   
and the Met Investors Fund is Class E, which has a 0.15% 12b-1 Plan fee. Class  
2 shares of the available American Funds have a 0.25% 12b-1 Plan fee. Amounts   
for each investment division for the previous year are listed in the Table of   
Expenses.                                                                       

ANNUAL CONTRACT FEE                                                             

There is a $30 Annual Contract Fee. This fee is waived if your Account      
Balance is at least $50,000. It is deducted on a pro-rata basis from the    
investment divisions on the Contract Anniversary. No portion of the fee is      
deducted from the Fixed Account. Regardless of the amount of your Account       
Balance, the entire fee will be deducted at the time of a total withdrawal of   
your Account Balance. This charge pays us for our miscellaneous administrative  
costs. These costs which we incur include financial, actuarial, accounting and  
legal expenses.                                                                 

OPTIONAL GUARANTEED MINIMUM INCOME BENEFIT                                      

The Guaranteed Minimum Income Benefit is available for an additional charge of  
0.50% of the guaranteed minimum income base (as defined later in this           
Prospectus), deducted at the end of each Contract Year by withdrawing amounts   
on a pro-rata basis from your Fixed Account balance, Enhanced Dollar Cost       
Averaging Program balance and Separate Account balance. (The charge is 0.45% if 
you purchase the Guaranteed Minimum Income Benefit and one of the optional      
death benefits.) We take amounts from the Separate Account by canceling         
accumulation units from your Separate Account.                                  

PREMIUM AND OTHER TAXES                                                         

Some jurisdictions tax what are called "annuity considerations." These may
apply to purchase payments, Account Balances and death benefits. In most  
jurisdictions, we currently do not deduct any money from purchase payments,     
Account Balances or death benefits to pay these taxes. Generally, our practice  
is                                                                              

                                                                            47

485BPOS
52nd Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 52nd
to deduct money to pay premium taxes (also known as "annuity" taxes) only when  
you exercise a pay-out option. In certain jurisdictions, we may deduct money to 
pay premium taxes on lump sum withdrawals or when you exercise a pay-out        
option. We may deduct an amount to pay premium taxes some time in the future    
since the laws and the interpretation of the laws relating to annuities are     
subject to change.                                                              

Premium taxes, if applicable, currently range from 0.5% to 3.5% depending on    
the Deferred Annuity you purchase and your home state or jurisdiction. A chart  
in the Appendix shows the jurisdictions where premium taxes are charged and the 
amount of these taxes.                                                          

We also reserve the right to deduct from purchase payments, Account Balances,   
withdrawals or income payments, any taxes (including, but not limited to,       
premium taxes) paid by us to any government entity relating to the contracts.   
Examples of these taxes include, but are not limited to, generation skipping    
transfer tax or a similar excise tax under Federal or state tax law which is    
imposed on payments we make to certain persons and income tax withholdings on   
withdrawals and income payments to the extent required by law. We will, at our  
sole discretion, determine when taxes relate to the contracts. We may, at our   
sole discretion, pay taxes when due and deduct that amount from the Account     
Balance at a later date. Payment at an earlier date does not waive any right we 
may have to deduct amounts at a later date.                                     

WITHDRAWAL CHARGES                                                              

[SIDEBAR: You will not pay a withdrawal charge on any purchase payments made    
more than 7 years ago for the B and Bonus Class contracts, 3 years ago for the  
L Class contract or at all on the C Class contract.]                            

A withdrawal charge may apply if you withdraw purchase payments that were 
  credited to your Deferred Annuity. There are no withdrawal charges for the C
Class Deferred Annuity. To determine the withdrawal charge for the Deferred     
Annuities, we treat your Fixed Account, Enhanced Dollar Cost Averaging Program  
and Separate Account as if they were a single account and ignore both your      
actual allocations and the Fixed Account, Enhanced Dollar Cost Averaging        
Program or investment division from which the withdrawal is actually coming. To 
do this, we first assume that your withdrawal is from earnings, then from       
amounts (other than earnings) that can be withdrawn without a withdrawal charge 
and then from purchase payments, each on a "first-in-first-out" (oldest money   
first) basis. Once we have determined the amount of the withdrawal charge, we   
will then withdraw it from the Fixed Account, Enhanced Dollar Cost Averaging    
Program and the investment divisions in the same proportion as the withdrawal   
is being made.                                                                  

For a full withdrawal, we multiply the amount to which the withdrawal charge    
applies by the percentage shown, keep the result as a withdrawal charge and pay 
you the rest.                                                                   

For partial withdrawals, we multiply the amount to which the withdrawal charge  
applies by the percentage shown, keep the result as a withdrawal charge and pay 
you the rest. We will treat your request as a request for a full withdrawal if  
your Account Balance is not sufficient to pay both the requested withdrawal     

48                                                                              

485BPOS
53rd Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 53rd
and the withdrawal charge, or if the withdrawal leaves an Account Balance that  
is less than the minimum required.                                              

The withdrawal charge on purchase payments withdrawn for each class is as       
follows:                                                                        

                                                                [Download Table]


IF WITHDRAWN DURING YEAR B CLASS BONUS CLASS C CLASS L CLASS
------------------------ ------- ----------- ------- -------
                                                            
       1................    7%        9%      None      7%  
       2................    6%        8%                6%  
       3................    6%        8%                5%  
       4................    5%        7%                0%  
       5................    4%        6%                0%  
       6................    3%        4%                0%  
       7................    2%        3%                0%  
       Thereafter.......    0%        0%                0%  

The withdrawal charge reimburses us for our costs in selling the Deferred       
Annuities. We may use our profits (if any) from the Separate Account charge to  
pay for our costs to sell the Deferred Annuities which exceed the amount of     
withdrawal charges we collect.                                                  

WHEN NO WITHDRAWAL CHARGE APPLIES                                               

[SIDEBAR: Withdrawal charges never apply to transfers among investment          
divisions, transfers to or from the Fixed Account or transfers from the         
Enhanced Dollar Cost Averaging Program.]                                        
[GRAPHIC] 

In some cases, we will not charge you the withdrawal charge when you make a     
withdrawal. We may, however, ask you to prove that you meet any of the          
conditions listed below.                                                        

You do not pay a withdrawal charge:                                             

[_]If you have a C Class Deferred Annuity.                                      

[_]On transfers you make within your Deferred Annuity.                          

[_]On withdrawals of purchase payments you made over seven years ago for the B  
Class, seven years ago for the Bonus Class and three years ago for the L  
Class.                                                                    

[_]If you choose payments over one or more lifetimes.                           

[_]If you die during the pay-in phase. Your beneficiary will receive the full   
death benefit without deduction.                                          

[_]If your contract permits and your spouse is substituted as the owner of the  
Deferred Annuity and continues the contract, that portion of the Account  
Balance that is equal to the "step-up" portion of the death benefit.      

                                                                            49

485BPOS
54th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 54th
[_]If you withdraw only your earnings from the investment divisions.            

[_]During the first Contract Year, if you are in the Systematic Withdrawal      
Program, and you withdraw up to 10% of your total purchase payments at the
rate of  1/12 of such 10% each month on a non-cumulative basis.           

[_]After the first Contract Year, if you withdraw up to 10% of your total       
  purchase payments, per Contract Year. This 10% total withdrawal may be taken
in an unlimited number of partial withdrawals during that Contract Year.  

[_]If the withdrawal is to avoid required Federal income tax penalties (not     
including Section 72(t) or (q) under the Internal Revenue Code) or to     
satisfy Federal income tax rules concerning minimum distribution          
requirements that apply to your Deferred Annuity. For purposes of this    
exception, we assume that the Deferred Annuity is the only contract or    
funding vehicle from which distributions are required to be taken and we  
  will ignore all other account balances. This exception does not apply if you
have a Non-Qualified or Roth IRA Deferred Annuity.                        

[_]If you accept an amendment converting your Traditional IRA Deferred Annuity  
to a Roth IRA Deferred Annuity.                                           

[_]If you properly "recharacterize" as permitted under Federal tax law your     
Traditional IRA Deferred Annuity or a Roth IRA Deferred Annuity using the 
same Deferred Annuity.                                                    

[_]After the first Contract Year, if approved in your state, and your contract  
provides for this, to withdrawals to which a withdrawal charge would      
otherwise apply, if you have been either the owner continuously since the 
issue of the contract or the spouse who continues the contract:           

 .  Has been a resident of certain nursing home facilities or a hospital for
    a minimum of 90 consecutive days or for a minimum total of 90 days where
there is no more than a 6 month break in that residency and the     
   residencies are for related causes, where you have exercised this right
      no later than 90 days of exiting the nursing home facility or hospital; or

.  Is diagnosed with a terminal illness and not expected to live more than
12 months.                                                          

[_] After the first Contract Year, if approved in your state, and your contract 
provides for this, if you are disabled as defined in the Federal Social 
Security Act (or as defined by the Internal Revenue Code for Oregon     
 contracts) and if you have been the owner continuously since the issue of
the contract or the spouse who continues the contract.                  

[_] If you have transferred money which is not subject to a withdrawal charge   
  from certain eligible MetLife contracts into the Deferred Annuity, and the
withdrawal is of these transferred amounts and we agree. Any purchase   
   payments made after the transfer are subject to the usual withdrawal charge
schedule.                                                               

50                                                                              

485BPOS
55th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 55th
FREE LOOK                                                                       

You may cancel your Deferred Annuity within a certain time period. This is
known as a "free look." Not all contracts issued are subject to free look 
provisions under state law. We must receive your request to cancel in writing.  
The number of days for this "free look" varies from state to state. The time    
period may also vary depending on your age and whether you purchased your       
Deferred Annuity from us directly, through the mail or with money from another  
annuity or life insurance policy. Depending on state law, we may refund all of  
your purchase payments or your Account Balance as of the date your refund       
request is received at your Administrative Office in good order.                

[GRAPHIC] 

Any Bonus does not become yours until after the "free look" period; we retrieve 
it if you exercise the "free look". Your exercise of any "free look" is the     
only circumstance under which the 3% credit will be retrieved (commonly called  
"recapture"). If your state requires us to refund your Account Balance, the     
refunded amount will include any investment performance attributable to the 3%  
credit. If there are any losses from investment performance attributable to the 
3% credit, we will bear that loss.                                              

DEATH BENEFIT--GENERALLY                                                        

  One of the insurance guarantees we provide you under your Deferred Annuity
  is that your beneficiaries will be protected against market downturns. You
name your beneficiary(ies).                                                     

If you intend to purchase the Deferred Annuity for use with a Traditional IRA,  
Roth IRA, SEP or SIMPLE IRA, please refer to the discussion concerning IRAs in  
the Tax Section of this Prospectus.                                             

We only pay the death benefit when we receive both proof of death and           
instructions for payment in good order.                                         

Your beneficiary has the option to apply the death benefit less any applicable  
premium taxes to a pay-out option offered under your Deferred Annuity. Your     
beneficiary may, however, decide to take a lump sum payment. If you purchased   
the contract as a deceased person's beneficiary under an IRA, your beneficiary  
may be limited by tax law as to the method of distribution of any death         
benefit. Please see the Tax Section of this Prospectus.                         

If the beneficiary is your spouse, the beneficiary may be substituted as the    
owner of the Deferred Annuity and continue the contract. In that case, the      
Account Balance will be adjusted to equal the death benefit. (Any additional    
amounts added to the Account Balance will be allocated in the same proportions  
to each balance in an investment division, Enhanced Dollar Cost Averaging       
Program and the Fixed Account as each bears to the total Account Balance.)      
There would be a second death benefit payable upon the death of the spouse. The 
spouse is permitted to make additional purchase payments. The spouse would not  
be permitted to choose any optional benefit available under                     

                                                                            51

485BPOS
56th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 56th
the contract, unless the deceased spouse had previously purchased the benefit   
at issue of the contract. Any amounts in the Deferred Annuity would be subject  
to applicable withdrawal charges except for that portion of the Account Balance 
that is equal to the "step-up" portion of the death benefit.                    

If the spouse continues the Deferred Annuity, the death benefit is calculated   
as described in the following pages except all values used to calculate the     
death benefit, which may include, Highest Account Balance as of each fifth      
Contract Anniversary, Highest Account Balance as of each Contract Anniversary   
and annual increase amount (depending on whether you choose an optional         
benefit), are reset on the date the spouse continues the Deferred Annuity.      

In the future, we anticipate permitting your beneficiary to hold the            
Traditional IRA Deferred Annuity in your name after your death for his/her      
benefit. We will issue a new Deferred Annuity to your beneficiary to facilitate 
the distribution of payments. The new contract will be issued in the same       
contract class as your contract, except, if you had a Bonus Class Deferred      
Annuity, the contract will be issued as a B Class Deferred Annuity. In that     
case the Account Balance would be reset to equal the death benefit on the date  
the beneficiary submits the necessary documentation in good order. (Any         
additional amounts added to the Account Balance would be allocated in the same  
proportions to each balance in an investment division and the Fixed Account as  
each bears to the total Account Balance.) There would be a second death benefit 
payable upon the death of the beneficiary. Your beneficiary would be permitted  
to make additional purchase payments consisting generally of monies which are   
direct transfers (as defined under the tax law) from other IRA contracts in the 
name of the same decedent. Any additional purchase payments would be subject to 
applicable withdrawal charges. The beneficiary also would be permitted to       
choose any optional benefit available under the contract, but certain contract  
provisions or programs may not be available.                                    

If your beneficiary holds the Traditional IRA Deferred Annuity in your name     
after your death for his/her benefit, the death benefit would be calculated as  
described in the following pages except all values used to calculate the death  
benefit, which may include, Highest Account Balance as of each fifth Contract   
Anniversary, Highest Account Balance as of each Contract Anniversary and annual 
increase amount (depending on whether you choose an optional benefit), would be 
reset on the date the beneficiary then holds the Deferred Annuity. At the death 
of the beneficiary, the beneficiary's beneficiary may be limited by tax law as  
to the method of distribution of any death benefit.                             

If you are a natural person and you change ownership of the Deferred Annuity to 
someone other than your spouse, the death benefit is calculated as described in 
the following pages except all values used to calculate the death benefit,      
which may include, Highest Account Balance as of each fifth Contract            
Anniversary, Highest Account Balance as of each Contract Anniversary and annual 
increase amount (depending on whether you choose an optional benefit), are      
reset on the date of the change in owner.                                       

52                                                                              

485BPOS
57th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 57th
If you are a non-natural person, then the life of the annuitant is the basis    
for determining the death benefit. If there are joint owners, the oldest of the 
two will be used as a basis for determining the death benefit.                  

Where there are multiple beneficiaries, we will only value the death benefit as 
of the time the first beneficiary submits the necessary documentation in good   
order.                                                                          

Any death benefit amounts attributable to any beneficiary which remain in the   
investment divisions are subject to investment risk.                            

For the purposes of the following death benefit calculations, purchase payments 
increase the Account Balance on a dollar for dollar basis. Partial withdrawals, 
however, reduce Account Balance proportionately, that is, the percentage        
reduction is equal to the dollar amount of the withdrawal (plus applicable      
withdrawal charges) divided by the Account Balance immediately before the       
withdrawal.                                                                     

BASIC DEATH BENEFIT                                                             

If you die during the pay-in phase and you have not chosen one of the optional  
death benefits, the death benefit the beneficiary receives will be equal to the 
greatest of:                                                                    

1. Your Account Balance; or                                                     

2. Total purchase payments reduced proportionately by the percentage reduction  
in Account Balance attributable to each partial withdrawal; or            

3. "Highest Account Balance" as of each fifth Contract Anniversary, determined  
as follows:                                                               

.  At issue, the highest Account Balance is your initial purchase payment;

  .  Increase the highest Account Balance by each subsequent purchase payment;

.  Reduce the highest Account Balance proportionately by the percentage   
reduction in Account Balance attributable to each subsequent partial
withdrawal;                                                         

  .  On each fifth Contract Anniversary before your 81st birthday, compare the
   (1) then-highest Account Balance to the (2) current Account Balance and
 (3) total purchase payments reduced proportionately by the percentage
    reduction in Account Balance attributable to each partial withdrawal and
set the highest Account Balance equal to the greatest of the three. 

 .  After the Contract Anniversary immediately preceding your 81st birthday,
adjust the highest Account Balance only to:                         

.  Increase the highest Account Balance by each subsequent purchase 
payment or                                                    

   .  Reduce the highest Account Balance proportionately by the percentage
      reduction in Account Balance attributable to each subsequent partial
withdrawal.                                                   

                                                                            53

485BPOS
58th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 58th
EXAMPLE:  

                                                                [Download Table]

                                          Date                     Amount         
                              ---------------------------- -----------------------
                                                                                  
A   Initial Purchase                   10/1/2001                  $100,000        
    Payment                                                                       
----------------------------------------------------------------------------------
B   Account Balance                    10/1/2002                  $104,000        
                              (First Contract Anniversary)                        
----------------------------------------------------------------------------------
C   Death Benefit                   As of 10/1/2002               $104,000        
                                                           (= greater of A and B) 
----------------------------------------------------------------------------------
D   Account Balance                    10/1/2003                   $90,000        
                                    (Second Contract                              
                                      Anniversary)                                
----------------------------------------------------------------------------------
E   Death Benefit                      10/1/2003                  $100,000        
                                                           (= greater of A and D) 
----------------------------------------------------------------------------------
F   Withdrawal                         10/2/2003                   $9,000         
----------------------------------------------------------------------------------
G   Percentage Reduction in            10/2/2003                     10%          
    Account Balance                                                (= F/D)        
----------------------------------------------------------------------------------
H   Account Balance                    10/2/2003                   $81,000        
    after Withdrawal                                              (= D - F)       
----------------------------------------------------------------------------------
I   Purchase Payments reduced            As of                     $90,000        
    for Withdrawal                     10/2/2003               [= A - (A X G)]    
----------------------------------------------------------------------------------
J   Death Benefit                      10/2/2003                   $90,000        
                                                           (= greater of H and I) 
----------------------------------------------------------------------------------
K   Account Balance                    10/1/2006                  $125,000        
----------------------------------------------------------------------------------
L   Death Benefit (Highest          As of 10/1/2006               $125,000        
    Account Balance)              (Fifth Anniversary)      (= greater of I and K) 
----------------------------------------------------------------------------------
M   Account Balance                    10/2/2006                  $110,000        
----------------------------------------------------------------------------------
N   Death Benefit                        As of                    $125,000        
                                       10/2/2006           (= greatest of I, L, M)

Notes to Example                                                                

Purchaser is age 60 at issue.                                                   

Any withdrawal charge withdrawn from the Account Balance is included when       
determining the percentage of Account Balance withdrawn.                        

Account Balances on 10/1/03 and 10/2/03 are assumed to be equal prior to the    
withdrawal.                                                                     

54                                                                              

485BPOS
59th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 59th
[GRAPHIC] 
OPTIONAL BENEFITS                                                               

Please note that the decision to purchase optional benefits is made at the time 
of application and is irrevocable. The optional benefit is in effect until it   
terminates. Please note further that, in the case of the optional death         
benefits, the Earnings Preservation Benefit and Guaranteed Minimum Income       
Benefit, the annual increase amount and Highest Account Balance as of the       
applicable Contract Anniversary, is frozen at the Contract Anniversary          
immediately preceding your 81st birthday (unless you make additional purchase   
payments or subsequent partial withdrawals to determine the Highest Account     
Balance). You continue to bear the costs of these optional benefits after that  
date before you enter the income or pay-out period. With regard to the          
Guaranteed Minimum Income Benefit, you must be in the "pay-in" phase of the     
contract for a least 10 years prior to commencing income payments guaranteed by 
this benefit. Optional benefits are available subject to state approval.        

ANNUAL STEP-UP DEATH BENEFIT                                                    

  You may purchase at application a death benefit that provides that the death
benefit amount is equal to the greater of:                                

1. The Account Balance; or                                                      

2. "Highest Account Balance" as of each Contract Anniversary, determined as     
follows:                                                                  

.  At issue, the highest Account Balance is your initial purchase payment;

  .  Increase the highest Account Balance by each subsequent purchase payment;

.  Reduce the highest Account Balance proportionately by the percentage   
reduction in Account Balance attributable to each subsequent partial
withdrawal;                                                         

.  On each Contract Anniversary before your 81st birthday, compare the (1)
   then-highest Account Balance to the (2) current Account Balance and set
the highest Account Balance equal to the greater of the two.        

 .  After the Contract Anniversary immediately preceding your 81st birthday,
adjust the highest Account Balance only to:                         

.  Increase the highest Account Balance by each subsequent purchase 
payment or                                                    

   .  Reduce the highest Account Balance proportionately by the percentage
      reduction in Account Balance attributable to each subsequent partial
withdrawal.                                                   

You may not purchase this benefit if you are 80 years of age or older.          

The Annual Step-Up Death Benefit is available in Deferred Annuities purchased   
after April 30, 2003, for a charge, in addition to the Basic Death Benefit      
charge, of 0.20% annually of the average daily value of the amount you have in  
the Separate Account.                                                           

                                                                            55

485BPOS
60th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 60th
EXAMPLE:  

                                                                [Download Table]

                                           Date                      Amount        
                               ----------------------------- ----------------------
                                                                                   
A   Initial Purchase                     10/1/2001                  $100,000       
    Payment                                                                        
-----------------------------------------------------------------------------------
B   Account Balance                      10/1/2002                  $104,000       
                               (First Contract Anniversary)                        
-----------------------------------------------------------------------------------
C   Death Benefit                     As of 10/1/2002               $104,000       
    (Highest Account                                         (= greater of A and B)
    Balance)                                                                       
-----------------------------------------------------------------------------------
D   Account Balance                      10/1/2003                  $90,000        
                               (Second Contract Anniversary)                       
-----------------------------------------------------------------------------------
E   Death Benefit                        10/1/2003                  $104,000       
    (Highest                                                 (= greater of B and D)
    Contract Year Anniversary)                                                     
-----------------------------------------------------------------------------------
F   Withdrawal                           10/2/2003                   $9,000        
-----------------------------------------------------------------------------------
G   Percentage                           10/2/2003                    10%          
    Reduction in                                                    (= F/D)        
    Account Balance                                                                
-----------------------------------------------------------------------------------
H   Account Balance                      10/2/2003                  $81,000        
    after Withdrawal                                                (= D-F)        
-----------------------------------------------------------------------------------
I   Highest Account                   As of 10/2/2003               $93,600        
    Balance reduced                                                                
    for Withdrawal                                                (= E-(EXG))      
-----------------------------------------------------------------------------------
J   Death Benefit                        10/2/2003                  $93,600        
                                                             (= greater of H and I)
-----------------------------------------------------------------------------------

Notes to Example                                                                

Purchaser is age 60 at issue.                                                   

Any withdrawal charge withdrawn from the Account Balance is included when       
determining the percentage of Account Balance withdrawn.                        

The Account Balances on 10/1/03 and 10/2/03 are assumed to be equal prior to    
the withdrawal.                                                                 

56                                                                              

485BPOS
61st Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 61st
GREATER OF ANNUAL STEP-UP OR 5% ANNUAL INCREASE DEATH BENEFIT                   

You may purchase at application a death benefit that provides that the death    
benefit amount is equal to the greatest of:                                     

1. Your Account Balance; or                                                     

2. The annual increase amount which is equal to the sum total of each purchase  
  payment accumulated at a rate of 5% a year, through the Contract Anniversary
date immediately preceding your 81st birthday, reduced by the sum total of
each withdrawal adjustment accumulated at the rate of 5% a year from the  
date of the withdrawal (the withdrawal adjustment is the annual increase  
amount immediately prior to the withdrawal multiplied by the percentage   
reduction in Account Balance attributable to the withdrawal); or          

3. "Highest Account Balance" as of each Contract Anniversary, determined as     
follows:                                                                  

.  At issue, the highest Account Balance is your initial purchase payment;

  .  Increase the highest Account Balance by each subsequent purchase payment;

.  Reduce the highest Account Balance proportionately by the percentage   
reduction in Account Balance attributable to each subsequent partial
withdrawal;                                                         

.  On each Contract Anniversary before your 81st birthday, compare the (1)
   then-highest Account Balance to the (2) current Account Balance and set
the highest Account Balance equal to the greater of the two.        

 .  After the Contract Anniversary immediately preceding your 81st birthday,
adjust the highest Account Balance only to:                         

.  Increase the highest Account Balance by each subsequent purchase 
payment or                                                    

   .  Reduce the highest Account Balance proportionately by the percentage
      reduction in Account Balance attributable to each subsequent partial
withdrawal.                                                   

You may not purchase this benefit if you are 80 years of age or older.          

The Greater of Annual Step-Up or 5% Annual Increase Death Benefit is available  
in Deferred Annuities purchased after April 30, 2003, for a charge, in addition 
to the Basic Death Benefit charge, of 0.35% annually of the average daily value 
of the amount you have in the Separate Account.                                 

                                                                            57

485BPOS
62nd Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 62nd
EXAMPLE:  

                                                        [Enlarge/Download Table]

                                       Date                         Amount           
                           ----------------------------- ----------------------------
                                                                                     
A   Initial Purchase                 10/1/2001                     $100,000          
    Payment                                                                          
-------------------------------------------------------------------------------------
B   Account Balance                  10/1/2002                     $104,000          
                           (First Contract Anniversary)                              
-------------------------------------------------------------------------------------
C1  Account Balance                  10/1/2002                     $104,000          
    (Highest Account                                        (= greater of A and B)   
    Balance)                                                                         
-------------------------------------------------------------------------------------
C2  5% Annual                        10/1/2002                     $105,000          
    Increase Amount                                               (= AX1.05)         
-------------------------------------------------------------------------------------
C3  Death Benefit                 As of 10/1/2002                  $105,000          
                                                           (= greater of C1 and C2)  
-------------------------------------------------------------------------------------
D   Account Balance                  10/1/2003                     $90,000           
                           (Second Contract Anniversary)                             
-------------------------------------------------------------------------------------
E1  Highest Account                  10/1/2003                     $104,000          
    Balance                                                (= greater of C1 and D)   
-------------------------------------------------------------------------------------
E2  5% Annual                     As of 10/1/2003                  $110,250          
    Increase Amount                                            (= AX1.05X1.05)       
-------------------------------------------------------------------------------------
E3  Death Benefit                    10/1/2003                     $110,250          
                                                           (= greater of E1 and E2)  
-------------------------------------------------------------------------------------
F   Withdrawal                       10/2/2003                      $9,000           
-------------------------------------------------------------------------------------
G   Percentage                       10/2/2003                       10%             
    Reduction in                                                   (= F/D)           
    Account Balance                                                                  
-------------------------------------------------------------------------------------
H   Account Balance                  10/2/2003                     $81,000           
    after Withdrawal                                               (= D-F)           
-------------------------------------------------------------------------------------
I1  Highest Account               As of 10/2/2003                  $93,600           
    Balance reduced                                             (= E1-(E1XG))        
    for Withdrawal                                                                   
-------------------------------------------------------------------------------------
I2  5% Annual                     As of 10/2/2003                  $99,239           
    Increase Amount                                             (= E2-(E2XG).        
    reduced for Withdrawal                               Note: E2 includes additional
                                                            day of interest at 5%)   
-------------------------------------------------------------------------------------
I3  Death Benefit                    10/2/2003                     $99,239           
                                                         (= greatest of H, I1 and I2)
-------------------------------------------------------------------------------------

Notes to Example                                                                

Purchaser is age 60 at issue.                                                   

Any withdrawal charge withdrawn from the Account Balance is included when       
determining the percentage of Account Balance withdrawn.                        

The Account Balances on 10/1/03 and 10/02/03 are assumed to be equal prior to   
the withdrawal.                                                                 

All amounts are rounded to the nearest dollar.                                  

58                                                                              

485BPOS
63rd Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 63rd
EARNINGS PRESERVATION BENEFIT                                                   

You may purchase this benefit at application. The Earnings Preservation Benefit 
is intended to provide additional amounts at death to pay expenses that may be  
due upon your death. We do not guarantee that the amounts provided by the       
Earnings Preservation Benefit will be sufficient to cover any such expenses     
that your heirs may have to pay.                                                

This benefit provides that an additional death benefit is payable equal to:     

The difference between                                                          

1. Your death benefit (either the basic death benefit or an optional death      
benefit for which you pay an additional charge); and                      

2. Total purchase payments not withdrawn. In this case, partial withdrawals are 
first applied against earnings and then purchase payments, or             

On or after the Contract Anniversary immediately preceding your 81st birthday,  
the additional death benefit that is payable is equal to:                       

1. The difference between                                                       

a. Your death benefit amount on the Contract Anniversary immediately      
preceding your 81st birthday, plus subsequent purchase payments made
after each Contract Anniversary, reduced proportionately by the     
   percentage reduction in Account Balance attributable to each subsequent
partial withdrawal; and                                             

 b. Total purchase payments not withdrawn. In this case, partial withdrawals
are first applied against earnings and then purchase payments.      

2. In each case, multiplied by the following percentage, depending upon your    
age when you purchased the Contract:                                      

Purchase Age                            Percentage          

Ages 69 or younger                          40%             

Ages 70-79                                  25%             

Ages 80 and above                            0%             

You may not purchase this benefit if you are 80 years of age or older.          

For purposes of the above calculation, purchase payments increase the Account   
Balance on a dollar for dollar basis. Partial withdrawals, however, reduce      
Account Balance proportionately, that is, the percentage reduction is equal to  
the dollar amount of the withdrawal plus applicable withdrawal charges divided  
by the Account Balance immediately before the withdrawal.                       

If the spouse continues the contract, the spouse can choose one of the          
following two options:                                                          

.  Continue the Earnings Preservation Benefit. Then the additional death  
benefit is calculated in the same manner as above except the        

                                                                            59

485BPOS
64th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 64th
     calculation takes into account the surviving spouse's age for purposes of
    determining what is the Contract Anniversary prior to the 81st birthday.
In this case, the benefit is paid as of the death of the surviving  
spouse, rather than the first spouse.                               

.  Stop the Earnings Preservation Benefit. Then, the Account Balance is   
     reset to equal the death benefit plus the additional death benefit on the
     date the spouse continues the contract. The Earnings Preservation Benefit
will cease and the Separate Account charge will be reduced by 0.25%.

If you are a natural person and you change ownership of the Deferred Annuity to 
someone other than your spouse, this benefit is calculated in the same manner   
except (1) purchase payments (for the purpose of calculating the Earnings       
Preservation Benefit) are set equal to the Account Balance on the date of the   
change in owners (gain is effectively reset to zero) and (2) the percentage     
from the table above is based on the age of the new owner as of the date of the 
change in owner.                                                                

If you are a non-natural person, the life of the annuitant is the basis for     
determining the additional death benefit. If there are joint owners, the oldest 
of the two will be used as a basis for determining the additional death benefit.

The Earnings Preservation Benefit is available for an additional charge of      
0.25% annually of the average daily value of the amount you have in the         
Separate Account.                                                               

EXAMPLE:  

                                                                [Download Table]

                                       Date          Amount       
                                     --------- --------------     
                                                                  
A   Purchase Payments Not Withdrawn  10/1/2001      $100,000      
------------------------------------------------------------------
B   Death Benefit                    10/1/2002      $105,000      
------------------------------------------------------------------
C   Additional Death Benefit         10/1/2002       $2,000       
                                                (= 40% x (B - A)) 
------------------------------------------------------------------
D   Account Balance                  10/1/2003       $90,000      
------------------------------------------------------------------
E   Withdrawal                       10/2/2003       $9,000       
------------------------------------------------------------------
F   Account Balance after Withdrawal 10/2/2003       $81,000      
                                                    (= D - E)     
------------------------------------------------------------------
G   Purchase Payments Not Withdrawn  10/2/2003       $91,000      
                                                     (= A-E,      
                                                because there is  
                                                   no gain at     
                                               time of withdrawal)
------------------------------------------------------------------
H   Death Benefit                    10/2/2003       $99,239      
------------------------------------------------------------------
I   Additional Death Benefit                         $3,296       
                                                (= 40% x (H - G)) 
------------------------------------------------------------------

Notes to Example                                                                

Purchaser is age 60 at issue.                                                   

Any withdrawal charge from the Account Balance is included when determining the 
percentage of Account Balance withdrawn.                                        

All amounts are rounded to the nearest dollar.                                  

60                                                                              

485BPOS
65th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 65th
GUARANTEED MINIMUM INCOME BENEFIT (MAY ALSO BE KNOWN AS THE "PREDICTOR" IN OUR  
SALES LITERATURE AND ADVERTISING)                                               
[GRAPHIC] 

You may purchase this benefit at application (up to but not including age 76)   
which guarantees a stated income payment in the pay-out phase of your Deferred  
Annuity (a payment "floor"). You retain the ability to choose to receive income 
payments based upon the Account Balance of your Deferred Annuity rather than    
the guaranteed amount purchased under this benefit. This benefit is intended to 
protect you against poor investment performance. The Guaranteed Minimum Income  
Benefit does not establish or guarantee an Account Balance or minimum return    
for any investment division.                                                    

This benefit may only be exercised by the owner no later than the Contract      
Anniversary immediately after the owner's 85th birthday, after a 10 year        
waiting period and then only within a 30 day period following the Contract      
Anniversary. If you are a non-natural person, then the age of the annuitant is  
the basis for determining the birthday. Partial annuitization is not permitted  
under this optional benefit and no change in owners of the contract is          
permitted. Withdrawal charges are not waived if you exercise this option while  
withdrawal charges apply.                                                       

The only income types available with the purchase of this benefit are a         
Lifetime Income Annuity with a 10 Year Guarantee Period or a Lifetime Income    
Annuity for Two with a 10 Year Guarantee Period. If you decide to receive       
income payments under a Lifetime Income Annuity with a 10 year Guarantee Period 
after age 79, the 10 year guarantee is reduced as follows:                      

Age at Pay-Out                Guarantee                               
-----------------------------------------------------                           
80                       9 years                          
-----------------------------------------------------                           
81                       8 years                          
-----------------------------------------------------                           
82                       7 years                          
-----------------------------------------------------                           
83                       6 years                          
-----------------------------------------------------                           
84 and 85                   5 years                             
-----------------------------------------------------                           

The guaranteed minimum income base is equal to the greatest of:                 

1. The annual increase amount which is the sum total of each purchase payment   
accumulated at a rate of 6% a year, through the Contract Anniversary date 
immediately preceding your 81st birthday, reduced by the sum total of each
 withdrawal adjustment accumulated at the rate of 6% a year from the date of
the withdrawal. The withdrawal adjustment is the annual increase amount   
immediately prior to the withdrawal multiplied by the percentage reduction
  in Account Balance attributable to the withdrawal, if total withdrawals in a
  Contract Year are more than 6% of the annual increase amount at the previous
 Contract Anniversary. If total withdrawals in a Contract Year are less than
6% of the annual increase amount at the previous Contract Anniversary, the
withdrawal adjustment is the dollar amount of total partial withdrawals   
treated as a single withdrawal at the end of the Contract Year; or        

                                                                            61

485BPOS
66th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 66th
2. "Highest Account Balance" as of each Contract Anniversary, determined as     
follows:                                                                  

.  At issue, the highest Account Balance is your initial purchase payment;

  .  Increase the highest Account Balance by each subsequent purchase payment;

.  Reduce the highest Account Balance proportionately by the percentage   
reduction in Account Balance attributable to each subsequent partial
withdrawal;                                                         

.  On each Contract Anniversary before your 81st birthday, compare the (1)
   then-highest Account Balance to the (2) current Account Balance and set
the highest Account Balance equal to the greater of the two.        

 .  After the Contract Anniversary immediately preceding your 81st birthday,
adjust the highest Account Balance only to:                         

.  Increase the highest Account Balance by each subsequent purchase 
payment or                                                    

   .  Reduce the highest Account Balance proportionately by the percentage
      reduction in Account Balance attributable to each subsequent partial
withdrawal.                                                   

This base is then applied to the annuity rates guaranteed in the Guaranteed     
Minimum Income Benefit rider. The rates used are the Annuity 2000 Mortality     
Table with a 7-year age setback, with interest of 2.5% per year. As with other  
pay-out types, the amount you receive as an income payment depends also on your 
age, sex and the income type you select. You may also choose to receive income  
payments by applying your Account Balance (less any premium taxes and           
applicable contract fees) to our then current annuity rates if that would       
produce greater income payments than those guaranteed under this benefit.       

For purposes of determining the Highest Account Balance as of the applicable    
Contract Anniversary, purchase payments increase the Account Balance on a       
dollar for dollar basis. Partial withdrawals, however, reduce Account Balance   
proportionately, that is the percentage reduction is equal to the dollar amount 
of the withdrawal (plus applicable withdrawal charges), divided by the Account  
Balance immediately before the withdrawal.                                      

This option will terminate:                                                     

1. The 30th day following the Contract Anniversary immediately after the        
owner's 85th birthday;                                                    

2. When you take a total withdrawal of your Account Balance (A pro-rata portion 
of the charge will be applied);                                           

3. When you elect to receive income payments under an income option and you are 
not eligible to exercise the Guaranteed Minimum Income Benefit option (A  
pro-rata portion of the charge will be applied);                          

4. The owner dies, except where the beneficiary or joint owner is the spouse of 
the owner and the spouse elects to continue the Deferred Annuity, or the  
annuitant dies (if the owner is not a natural person); or                 

62                                                                              

485BPOS
67th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 67th
5. There is a change in owners, joint owners or annuitants (if the owner is a   
non-natural person).                                                      

The Guaranteed Minimum Income Benefit is available in Deferred Annuities        
purchased after April 30, 2003, for an additional charge of 0.50% (0.45% if     
purchased with either of the optional death benefits) of the guaranteed minimum 
income base, deducted at the end of each Contract Year, by withdrawing amounts  
on a pro-rata basis from your Fixed Account balance, Enhanced Dollar Cost       
Averaging Program balance and Separate Account balance. (We take amounts from   
the Separate Account by canceling accumulation units from your Separate         
Account.) (The Fixed Account is not available in the C Class Deferred Annuity   
purchased after April 30, 2003, and, when available, a Deferred Annuity issued  
in New York State with this optional benefit. The Enhanced Dollar Cost          
Averaging Program is not available in the C and Bonus Classes Deferred Annuity.)

EXAMPLE:                                                                  
(This calculation ignores the impact of highest Account Balance which could     
further increase the guaranteed minimum income base.)                           
At issue, male, age 55                                                    
Purchase Payment = $100,000.                                              
No additional purchase payments or partial withdrawals.                   
Guaranteed minimum income base at age 65 = $100,000X1.06/10/ = $179,085   
where 10 equals the number of years the purchase payment accumulates for  
purposes of calculating this benefit.                                     

 Guaranteed minimum income floor = guaranteed minimum income base applied to
the Guaranteed Minimum Income Benefit annuity table.                      

Guaranteed Minimum Income Benefit annuity factor, male, age 65 = $4.40 per
month per $1,000 applied for lifetime income with 10 years guaranteed.    

$179,085 X $4.40 = $788 per month.                                        
$1,000                                                                    

                                                                [Download Table]

                         Guaranteed
                          Minimum  
 (Male)                    Income  
Issue Age Age at Pay-Out   Floor   
-----------------------------------
                                   
   55           65         $  788  
-----------------------------------
                70         $1,186  
-----------------------------------
                75         $1,812  
-----------------------------------

The above chart ignores the impact of premium and other taxes.                  

                                                                            63

485BPOS
68th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 68th
PAY-OUT OPTIONS (OR INCOME OPTIONS)                                             
[SIDEBAR: The pay-out phase is often referred to as either "annuitizing" your   
contract or taking an income annuity.]                                          
[GRAPHIC] 
[SIDEBAR: You may choose the frequency of your income payments. For example,    
you may receive your payments on a monthly, quarterly, semiannual or annual     
basis.]                                                                         

 You may convert your Deferred Annuity into a regular stream of income after
 your "pay-in" or "accumulation" phase. When you select your pay-out option,
you will be able to choose from the range of options we then have available.    
You have the flexibility to select a stream of income to meet your needs. If    
you decide you want a pay-out option, we withdraw some or all of your Account   
Balance (less any premium taxes and applicable contract fees), then we apply    
the net amount to the option. You are not required to hold your Deferred        
Annuity for any minimum time period before you may annuitize. However, the      
annuitant may not be older than 95 years old when you select a pay-out option   
(age 90 or ten years after you have purchased your Deferred Annuity in New York 
State). Although guaranteed annuity rates for the Bonus Class are the same as   
those for the other classes of the Deferred Annuity, current rates for the      
Bonus Class may be lower than the other classes of the Deferred Annuity. You    
must convert at least $5,000 of your Account Balance to receive income payments.

[SIDEBAR: Should our current rates for a fixed pay-out option for a fixed       
pay-out option for your class of the Deferred Annuity provide for greater       
payments than those quoted in your contract, we will use the current rates.]    

When considering a pay-out option, you should think about whether you want:     

[_] Payments guaranteed by us for the rest of your life (or for the rest of two 
lives) or the rest of your life (or for the rest of two lives) with a   
guaranteed period; and                                                  

[_] A fixed dollar payment or a variable payment.                               

Your income option provides you with a regular stream of payments for either    
your lifetime or your lifetime with a guaranteed period.                        

Your income payment amount will depend upon your choices. For lifetime options, 
the age and sex of the measuring lives (annuitants) will also be considered.    
For example, if you select a pay-out option guaranteeing payments for your      
lifetime and your spouse's lifetime, your payments will typically be lower than 
if you select a pay-out option with payments over only your lifetime.           

We do not guarantee that your variable payments will be a specific amount of    
money. You may choose to have a portion of the payment fixed and guaranteed     
under the Fixed Income Option.                                                  

By the time the annuitant reaches age 95 (age 90 or ten years after issue of    
your Deferred Annuity in New York State), and if you do not either elect to     
continue the contract, select a pay-out option or withdraw your entire Account  
Balance, and your Deferred Annuity was not issued under certain retirement      
plans, we will automatically issue you a life annuity with a 10 year guarantee. 
In that case, if you do not tell us otherwise, your Fixed Account balance and   
Enhanced Dollar Cost Averaging Program balance will be used to provide a Fixed  
Income Option and your Separate Account balance will be used to provide a       
variable pay-out option.                                                        

64                                                                              

485BPOS
69th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 69th
INCOME PAYMENT TYPES                                                            

Currently, we provide you with a wide variety of income payment types to  
suit a range of personal preferences.                                     

[SIDEBAR: Many times, the Owner and the Annuitant are the same person.]         

There are three people who are involved in payments under your pay-out option:  

[_]Owner: the person or entity which has all rights including the right to      
direct who receives payment.                                              

[_]Annuitant: the natural person whose life is the measure for determining the  
duration and the dollar amount of payments.                               

[_]Beneficiary: the person who receives continuing payments or a lump sum       
payment, if any, if the owner dies.                                       

[SIDEBAR: When deciding how to receive income, consider:                        
.. The amount of income you need;                                               
.. The amount you expect to receive from other sources;                         
.. The growth potential of other investments; and                               
.. How long you would like your income to be guaranteed.]                       
[GRAPHIC] 

The following income payment types are currently available. We may make         
available other income payment types if you so request and we agree. We may     
limit income payment types offered to meet federal tax law requirements.        

LIFETIME INCOME ANNUITY: A variable income that is paid as long as the          
annuitant is living.                                                            

LIFETIME INCOME ANNUITY WITH A GUARANTEE PERIOD: A variable income that         
continues as long as the annuitant is living but is guaranteed to be paid for a 
number of years. If the annuitant dies before all of the guaranteed payments    
have been made, payments are made to the owner of the annuity (or the           
beneficiary, if the owner dies during the guarantee period) until the end of    
the guarantee period. No payments are made once the guarantee period has        
expired and the annuitant is no longer living.                                  

LIFETIME INCOME ANNUITY FOR TWO: A variable income that is paid as long as      
either of the two annuitants is living. After one annuitant dies, payments      
continue to be made as long as the other annuitant is living. In that event,    
payments may be the same as those made while both annuitants were living or may 
be a smaller percentage that is selected when the annuity is first converted to 
an income stream. No payments are made once both annuitants are no longer       
living.                                                                         

LIFETIME INCOME ANNUITY FOR TWO WITH A GUARANTEE PERIOD: A variable income that 
continues as long as either of the two annuitants is living but is guaranteed   
to be paid (unreduced by any percentage selected) for a number of years. If     
both annuitants die before all of the guaranteed payments have been made,       
payments are made to the owner of the annuity (or the beneficiary, if the owner 
dies during the guarantee period) until the end of the guaranteed period. If    
one annuitant dies after the guarantee period has expired, payments continue to 
be made as long as the other annuitant is living. In that event, payments may   
be the same as those made while both annuitants were living or may be a smaller 
percentage that is selected when the annuity is first converted to an income    
stream. No payments are made once the guarantee period has expired and both     
annuitants are no longer living.                                                

                                                                            65

485BPOS
70th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 70th
ALLOCATION                                                                      

  You decide how your money is allocated among the Fixed Income Option and the
investment divisions.                                                     

[GRAPHIC]                                                                       

MINIMUM SIZE OF YOUR INCOME PAYMENT                                             

Your initial income payment must be at least $100. This means that the    
amount used from a Deferred Annuity to provide a pay-out option must be   
large enough to produce this minimum initial income payment. We may reduce the  
frequency of your income payments to produce a payment of at least $100, in     
which case your payment will be made at least annually.                         

THE VALUE OF YOUR INCOME PAYMENTS                                               

ANNUITY UNITS                                                                   

Annuity units are credited to you when you first convert your Deferred Annuity  
into an income stream or transfer into an investment division during the        
pay-out phase. Before we determine the number of annuity units to credit to     
you, we reduce your Account Balance by any premium taxes and the Annual         
Contract Fee, if applicable. (The premium taxes and the Annual Contract Fee are 
not applied against transfers.) We then compute an initial income payment       
amount using the Assumed Investment Return ("AIR"), your income payment type    
and the age and sex of the measuring lives. We then divide the initial income   
payment (allocated to an investment division) by the Annuity Unit Value on the  
date of the transaction. The result is the number of annuity units credited for 
that investment division. The initial variable income payment is a hypothetical 
payment which is calculated based on the AIR. This initial variable income      
payment is used to establish the number of annuity units. It is not the amount  
of your actual first variable income payment unless your first income payment   
happens to be within 10 days after the date you convert your Deferred Annuity   
into an income stream. When you transfer money from an investment division,     
annuity units in that investment division are liquidated.                       

AIR                                                                             
[SIDEBAR: The AIR is stated in your contract and may range from 3% to 6%.]      

Your income payments are determined by using the AIR to benchmark the           
investment experience of the investment divisions you select. The AIR is stated 
in your contract and may range from 3% to 6%. The higher your AIR, the higher   
your initial variable income payment will be. Your next payments will increase  
in proportion to the amount the actual investment experience of your chosen     
investment divisions exceeds the AIR and Separate Account charges (the net      
investment return). Likewise, your payments will decrease to the extent the     
investment experience of your chosen investment divisions is less than the AIR  
and Separate Account charges. A lower AIR will result in a lower initial        
variable income payment, but subsequent variable income payments will increase  
more rapidly or decline more slowly than if you had a higher AIR as changes     
occur in the actual investment experience of the investment divisions.          

66                                                                              

485BPOS
71st Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 71st
The amount of each variable income payment is determined 10 days prior to your  
income payment date. If your first income payment is scheduled to be paid less  
than 10 days after you convert your Deferred Annuity to an income stream, then  
the amount of that payment will be determined on the date you convert your      
Deferred Annuity to a pay-out option.                                           

VALUATION                                                                       

This is how we calculate the Annuity Unit Value for each investment division:   

[_]First, we determine the change in investment experience (including any       
investment-related charge) for the underlying portfolio from the previous 
trading day to the current trading day;                                   
[_]Next, we subtract the daily equivalent of the Separate Account charge for    
each day since the last day the Annuity Unit Value was calculated; the    
resulting number is the net investment return.                            

[_]Then, we multiply by an adjustment based on your AIR for each day since the  
last Annuity Unit Value was calculated; and                               

[_]Finally, we multiply the previous Annuity Unit Value by this result.         

TRANSFER PRIVILEGE                                                              

During the pay-out phase of the Deferred Annuity, you may make transfers  
among investment divisions or from the investment divisions to the Fixed Income 
Option. Each transfer must be at least $500 or, if less, your entire balance in 
an investment division. Once you transfer money into the Fixed Income Option,   
you may not later transfer it into an investment division. There is no          
withdrawal charge to make a transfer.                                           

[GRAPHIC] 

[SIDEBAR: Once you transfer money into the Fixed Income Option you may not      
later transfer it into an investment division.]                                 

For us to process a transfer, you must tell us:                                 

[_]The percentage or dollar amount of the transfer;                             

[_]The investment divisions (or Fixed Income Option) to which you want to       
transfer; and                                                             

[_]The investment divisions from which you want to transfer.                    

We may require that you use our original forms to make transfers.               

We reserve the right to restrict transfers to the Fixed Income Option (1) if    
the interest rate we credit in the Fixed Account is equal to the guaranteed     
minimum rate stated in your Deferred Annuity; or (2) your allocation and        
transfers to the Fixed Income Option is equal to or exceeds our maximum for the 
Fixed Account and Enhanced Dollar Cost Averaging Program allocations (e.g.,     
$1,000,000).                                                                    

Each Fund may restrict or refuse purchases or redemptions of shares in their    
Portfolios as a result of certain market timing activities. You should read the 
Fund prospectuses for more details.                                             

                                                                            67

485BPOS
72nd Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 72nd
The income phase of the Deferred Annuity is not designed to permit market       
timing. Accordingly, we reserve the right to: (1) defer the transfer privilege  
at any time that we are unable to purchase or redeem shares in the Portfolios,  
to the extent permitted by law; (2) limit the number of transfers you may make  
each Contract Year; (3) limit the dollar amount that may be transferred at any  
one time; (4) charge a transfer fee; and (5) impose limitations and             
modifications where exercise of the transfer privilege creates or would create  
a disadvantage to other contract owners. Examples of these limitations or       
modifications include, but are not limited to: (1) imposing a minimum time      
period between each transfer; and (2) requiring a signed, written request to    
make the transfer. In addition, in accordance with applicable law, we reserve   
the right to modify or terminate the transfer privilege at any time.            

Your transfer request must be in good order and completed prior to the close of 
the Exchange on one of our business days if you want the transaction to take    
place on that day. All other transfer requests in good order will be processed  
our next business day.                                                          

[SIDEBAR: The Separate Account charges you pay will not reduce the number of    
annuity units credited to you. Instead, we deduct the charges when calculating  
the Annuity Unit Value.]                                                        

CHARGES                                                                         

You pay the Basic Death Benefit Separate Account charge for your contract 
  class during the pay-out phase of the Deferred Annuity. In addition, you pay
the applicable investment-related charge during the pay-out phase of your       
Deferred Annuity. During the pay-out phase, we reserve the right to deduct the  
$30 Annual Contract Fee. If we do so, it will be deducted pro-rata from each    
income payment.                                                                 

68                                                                              

485BPOS
73rd Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 73rd
GENERAL INFORMATION                                                             

ADMINISTRATION                                                                  

All transactions will be processed in the manner described below.               

PURCHASE PAYMENTS                                                               

[GRAPHIC] 
[SIDEBAR: Generally, your requests including all subsequent purchase payments   
are effective the day we receive them at your Administrative Office in good     
order.]                                                                         

Send your purchase payments, by check or money order made payable to "MetLife," 
to your Administrative Office. (We reserve the right to receive purchase        
payments by other means acceptable to us.) We will provide you with all         
necessary forms. We must have all documents in good order to credit your        
purchase payments.                                                              

Purchase payments (including any portion of your Account Balance under a        
Deferred Annuity which you apply to a pay-out option) are effective and valued  
as of the close of the Exchange on the day we receive them in good order at     
your Administrative Office, except when they are received:                      

[_]On a day when the Accumulation Unit Value/Annuity Unit Value is not          
calculated, or                                                            

[_]After the close of the Exchange.                                             

In those cases, the purchase payments will be effective the next day the        
Accumulation Unit Value or Annuity Unit Value, as applicable, is calculated.    

We reserve the right to credit your initial purchase payment to you within two  
days after its receipt at your Administrative Office. However, if you fill out  
our forms incorrectly or incompletely or other documentation is not completed   
properly or otherwise not in good order, we have up to five business days to    
credit the payment. If the problem cannot be resolved by the fifth business     
day, we will notify you and give you the reasons for the delay. At that time,   
you will be asked whether you agree to let us keep your money until the problem 
is resolved. If you do not agree or we cannot reach you by the fifth business   
day, your money will be returned.                                               

CONFIRMING TRANSACTIONS                                                         

You will receive a written statement confirming that a transaction was recently 
completed. Certain transactions made on a periodic basis, such as               
check-o-matic, Systematic Withdrawal Program payments, and automated investment 
strategy transfers, may be confirmed quarterly. Unless you inform us of any     
errors within 60 days of receipt, we will consider these communications to be   
accurate and complete.                                                          

PROCESSING TRANSACTIONS                                                         

We permit you to request transactions by mail and telephone. We anticipate      
making Internet access available to you in the future. We may suspend or        
eliminate telephone or Internet privileges at any time, without prior notice.   
We reserve the right not to accept requests for transactions by facsimile. We   
reserve the right, in our sole discretion, to refuse, to impose modifications   
on, to limit or to reverse any transaction request where the request would tend 
to                                                                              

                                                                            69

485BPOS
74th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 74th
disrupt contract administration or is not in the best interests of the          
contract-holders or the Separate Account, including, but not limited to, any    
transaction request that we believe in good faith constitutes market timing. We 
reserve the right to impose administrative procedures to implement these        
rights. Such procedures include, but are not limited to, imposing a minimum     
time period between transfers or requiring a signed, written request to make a  
transfer. If we reverse a transaction we deem to be invalid, because it should  
have been rejected under our procedures, but was nevertheless implemented by    
mistake, we will treat the transaction as if it had not occurred.               

If mandated by applicable law, including, but not limited to, Federal           
anti-money laundering laws, we may be required to reject a purchase payment. We 
may also be required to block an owner's account and, consequently, refuse to   
implement requests for transfers, withdrawals, surrenders or death benefits,    
until instructions are received from the appropriate governmental authority.    

BY TELEPHONE OR INTERNET                                                        

You may request a variety of transactions and obtain information by telephone   
virtually 24 hours a day, 7 days a week, unless prohibited by state law.        
Likewise, in the future, you may be able to request a variety of transactions   
and obtain information through Internet access, unless prohibited by state law. 
Some of the information and transactions accessible to you include:             

[_]Account Balance                                                              

[_]Unit Values                                                                  

[_]Current rates for the Fixed Account                                          

[_]Transfers                                                                    

[_]Changes to investment strategies                                             

[_]Changes in the allocation of future purchase payments.                       

[GRAPHIC] 

[SIDEBAR: You may authorize your sales representative to make transactions on   
your behalf. You must complete our form and we must agree.]                     
Your transaction must be in good order and completed prior to the close of the  
Exchange on one of our business days if you want the transaction to be valued   
and effective on that day. Transactions will not be valued and effective on a   
day when the Accumulation or Annuity Unit Value is not calculated or after the  
close of the Exchange. We will value and make effective these transactions on   
our next business day.                                                          

We have put into place (or may in the future put into place for Internet        
communications) reasonable security procedures to insure that instructions      
communicated by telephone or Internet are genuine. For example, all telephone   
calls are recorded. Also, you will be asked to provide some personal data prior 
to giving your instructions over the telephone or through the Internet. When    
someone contacts us by telephone or Internet and follows our security           
procedures, we will assume that you are authorizing us to act upon those        
instructions. Neither the Separate Account nor MetLife will be liable for any   
loss, expense or cost arising out of any requests that we or the Separate       
Account reasonably believe to be authentic. In the unlikely event that you have 
trouble reaching us, requests should be made in writing to your Administrative  
Office.                                                                         

70                                                                              

485BPOS
75th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 75th
Response times for the telephone or Internet may vary due to a variety of       
factors, including volumes, market conditions and performance of the systems.   
We are not responsible or liable for:                                           

[_]any inaccuracy, error, or delay in or omission of any information you        
transmit or deliver to us; or                                             

[_]any loss or damage you may incur because of such inaccuracy, error, delay or 
omission; non-performance; or any interruption of information beyond our  
control.                                                                  

AFTER YOUR DEATH                                                                

If we are presented in good order with notification of your death before any    
requested transaction is completed (including transactions under automated      
investment strategies), we will cancel the request and pay your beneficiary the 
the death benefit instead. If the beneficiary is your spouse, the spouse may be 
substituted as the owner of the Deferred Annuity and continue the contract. In  
the future, we may permit the beneficiary of a Traditional IRA Deferred Annuity 
to hold the Deferred Annuity in your name for his/her benefit. If you are       
receiving income payments, we will cancel the request and continue making       
payments to your beneficiary if your income type so provides. Or, depending on  
the income type, we may continue making payments to a joint annuitant.          

THIRD PARTY REQUESTS                                                            

Generally, we only accept requests for transactions or information from you. We 
reserve the right not to accept requests that we believe in good faith          
constitute market timing transactions from you or any other third party. In     
addition, we reserve the right not to process transactions requested on your    
behalf by third parties. This includes processing transactions by an agent you  
designate, through a power of attorney or other authorization, who has the      
ability to control the amount and timing of transfers for a number of other     
contract owners, and who simultaneously makes the same request or series of     
requests on behalf of other contract owners, including those who engage in      
market timing transactions.                                                     

VALUATION -- SUSPENSION OF PAYMENTS                                             

We separately determine the Accumulation Unit Value and Annuity Unit Value for  
each investment division once each day when the Exchange is open for trading.   
If permitted by law, we may change the period between calculations but we will  
give you 30 days notice.                                                        

When you request a transaction, we will process the transaction using the next  
available Accumulation Unit Value or Annuity Unit Value. Subject to our         
procedure, we will make withdrawals and transfers at a later date, if you       
request. If your withdrawal request is to elect a variable pay-out option under 
your Deferred Annuity, we base the number of annuity units you receive on the   
next available Annuity Unit Value.                                              

We reserve the right to suspend or postpone payment for a withdrawal or         
transfer when:                                                                  

[_]rules of the Securities and Exchange Commission so permit (trading on the    
Exchange is restricted, the Exchange is closed other than for customary   

                                                                            71

485BPOS
76th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 76th
weekend or holiday closings or an emergency exists which makes pricing or 
sale of securities not practicable); or                                   

[_]during any other period when the Securities and Exchange Commission by order 
so permits.                                                               

ADVERTISING PERFORMANCE                                                         

    We periodically advertise the performance of the investment divisions. You
  may get performance information from a variety of sources including your
quarterly statements, your MetLife representative, the Internet, annual reports 
and semiannual reports.                                                         

We may state performance in terms of "yield," "change in Accumulation Unit      
Value/Annuity Unit Value," "average annual total return" or some combination of 
these terms.                                                                    

[GRAPHIC] 

[SIDEBAR: All performance numbers are based upon historical earnings. These     
numbers are not intended to indicate future results.]                           

YIELD is the net income generated by an investment in a particular investment   
division for 30 days or a month. These figures are expressed as percentages.    
This percentage yield is compounded semiannually; for the money market          
investment division, we state yield for a seven day period.                     

CHANGE IN ACCUMULATION/ANNUITY UNIT VALUE ("Non-Standard Performance") is       
calculated by determining the percentage change in the value of an accumulation 
(or annuity) unit for a certain period. These numbers may also be annualized.   
Change in Accumulation/Annuity Unit Value may be used to demonstrate            
performance for a hypothetical investment (such as $10,000) over a specified    
period. These performance numbers reflect the deduction of the Separate Account 
charges (with the Basic Death Benefit), the additional Separate Account charge  
for the American Funds Growth, American Funds Growth-Income and American Funds  
Global Small Capitalization investment divisions and the Annual Contract Fee;   
however, yield and change in Accumulation/Annuity Unit Value performance do not 
reflect the possible imposition of withdrawal charges and the charge for the    
Earnings Preservation Benefit or Guaranteed Minimum Income Benefit. Withdrawal  
charges would reduce performance experience.                                    

AVERAGE ANNUAL TOTAL RETURN ("Standard Performance") calculations reflect the   
Separate Account charge, (with the Basic Death Benefit), the additional         
Separate Account charge for the American Funds Growth, American Funds           
Growth-Income and American Funds Global Small Capitalization investment         
divisions and the Annual Contract Fee and applicable withdrawal charges since   
the investment division inception date, which is the date the corresponding     
Portfolio or predecessor Portfolio was first offered under the Separate Account 
that funds the Deferred Annuity. These figures also assume a steady annual rate 
of return. They do not assume the charges for the Earnings Preservation Benefit 
or Guaranteed Minimum Income Benefit.                                           

Performance figures will vary among the various classes of the Deferred         
Annuities and the investment divisions as a result of different Separate        
Account charges and withdrawal charges.                                         

72                                                                              

485BPOS
77th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 77th
We may calculate performance for certain investment strategies including Equity 
Generator and each asset allocation model of the Index Selector. We calculate   
the performance as a percentage by presuming a certain dollar value at the      
beginning of a period and comparing this dollar value with the dollar value     
based on historical performance at the end of that period. We assume the        
Separate Account charge reflects the Basic Death Benefit. The information does  
not assume the charges for the Earnings Preservation Benefit or Guaranteed      
Minimum Income Benefit. This percentage return assumes that there have been no  
withdrawals or other unrelated transactions.                                    

For purposes of presentation of Non-Standard Performance, we may assume the     
Deferred Annuities were in existence prior to the inception date of the         
investment divisions in the Separate Account that funds the Deferred Annuity.   
In these cases, we calculate performance based on the historical performance of 
the underlying Metropolitan Fund, Met Investors Fund and American Funds         
Portfolios since the Portfolio inception date. We use the actual accumulation   
unit or annuity unit data after the inception date. Any performance data that   
includes all or a portion of the time between the Portfolio inception date and  
the investment division inception date is hypothetical. Hypothetical returns    
indicate what the performance data would have been if the Deferred Annuity had  
been introduced as of the Portfolio inception date.                             

We may also present average annual total return calculations which reflect all  
Separate Account charges and applicable withdrawal charges since the Portfolio  
inception date. We use the actual accumulation unit or annuity unit data after  
the inception date. Any performance data that includes all or a portion of the  
time between the Portfolio inception date and the investment division inception 
date is hypothetical. Hypothetical returns indicate what the performance data   
would have been if the Deferred Annuities had been introduced as of the         
Portfolio inception date.                                                       

Past performance is no guarantee of future results.                             

We may demonstrate hypothetical future values of Account Balances over a        
specified period based on assumed rates of return (which will not exceed 12%    
and which will include an assumption of 0% as well) for the Portfolios. These   
presentations reflect the deduction of the Separate Account charge, the Annual  
Contract Fee, if any, and the weighted average of investment-related charges    
for all Portfolios to depict investment-related charges.                        

We may demonstrate hypothetical future values of Account Balances for a         
specific Portfolio based upon the assumed rates of return previously described, 
the deduction of the Separate Account charge and the Annual Contract Fee, if    
any, and the investment-related charges for the specific Portfolio to depict    
investment-related charges.                                                     

We may demonstrate the hypothetical historical value of each optional benefit   
for a specified period based on historical net asset values of the Portfolios   
and                                                                             

                                                                            73

485BPOS
78th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 78th
the annuity purchase rate, if applicable, either for an individual for whom the 
illustration is to be produced or based upon certain assumed factors (e.g.,     
male, age 65). These presentations reflect the deduction of the Separate        
Account charge and the Annual Contract Fee, if any, the investment-related      
charge and the charge for the optional benefit being illustrated.               

We may demonstrate hypothetical future values of each optional benefit over a   
specified period based on assumed rates of return (which will not exceed 12%    
and which will include an assumption of 0% as well) for the Portfolios, the     
annuity purchase rate, if applicable, either for an individual for whom the     
illustration is to be produced or based upon certain assumed factors (e.g.,     
male, age 65). These presentations reflect the deduction of the Separate        
Account charge and the Annual Contract Fee, if any, the weighted average of     
investment-related charges for all Portfolios to depict investment-related      
charges and the charge for the optional benefit being illustrated.              

We may demonstrate hypothetical values of income payments over a specified      
period based on historical net asset values of the Portfolios and the           
applicable annuity purchase rate, either for an individual for whom the         
illustration is to be produced or based upon certain assumed factors (e.g.,     
male, age 65). These presentations reflect the deduction of the Separate        
Account charge, the investment-related charge and the Annual Contract Fee, if   
any.                                                                            

We may demonstrate hypothetical future values of income payments over a         
specified period based on assumed rates of return (which will not exceed 12%    
and which will include an assumption of 0% as well) for the Portfolios, the     
applicable annuity purchase rate, either for an individual for whom the         
illustration is to be produced or based upon certain assumed factors (e.g.,     
male, age 65). These presentations reflect the deduction of the Separate        
Account charge, the Annual Contract Fee, if any, and the weighted average of    
investment-related charges for all Portfolios to depict investment-related      
charges.                                                                        

Any illustration should not be relied on as a guarantee of future results.      

CHANGES TO YOUR DEFERRED ANNUITY                                                

 We have the right to make certain changes to your Deferred Annuity, but
 only as permitted by law. We make changes when we think they would best
serve the interest of annuity owners or would be appropriate in carrying out    
the purposes of the Deferred Annuity. If the law requires, we will also get     
your approval and the approval of any appropriate regulatory authorities.       
Examples of the changes we may make include:                                    

[_] To operate the Separate Account in any form permitted by law.               

[_] To take any action necessary to comply with or obtain and continue any      
 exemptions under the law (including favorable treatment under the Federal
income tax laws).                                                       

[_] To transfer any assets in an investment division to another investment      
 division, or to one or more separate accounts, or to our general account,
  or to add, combine or remove investment divisions in the Separate Account.

74                                                                              

485BPOS
79th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 79th
[_] To substitute for the Portfolio shares in any investment division, the      
   shares of another class of the Metropolitan Fund, the Met Investors Fund or
  the shares of another investment company or any other investment permitted
by law.                                                                 

[_] To make any necessary technical changes in the Deferred Annuities in order  
to conform with any of the above-described actions.                     

If any changes result in a material change in the underlying investments of an  
investment division in which you have a balance, we will notify you of the      
change. You may then make a new choice of investment divisions. For Deferred    
Annuities issued in Pennsylvania, we will ask your approval before making any   
technical changes.                                                              

VOTING RIGHTS                                                                   

  Based on our current view of applicable law, you have voting interests under
your Deferred Annuity concerning Metropolitan Fund, Met Investors Fund or 
American Funds proposals that are subject to a shareholder vote. Therefore, you 
are entitled to give us instructions for the number of shares which are deemed  
attributable to your Deferred Annuity.                                          

We will vote the shares of each of the underlying Portfolios held by the        
Separate Account based on instructions we receive from those having a voting    
interest in the corresponding investment divisions. However, if the law or the  
interpretation of the law changes, we may decide to exercise the right to vote  
the Portfolio's shares based on our own judgment.                               

You are entitled to give instructions regarding the votes attributable to your  
Deferred Annuity in your sole discretion.                                       

There are certain circumstances under which we may disregard voting             
instructions. However, in this event, a summary of our action and the reasons   
for such action will appear in the next semiannual report. If we do not receive 
your voting instructions, we will vote your interest in the same proportion as  
represented by the votes we receive from other investors. Shares of the         
Metropolitan Fund, the Met Investors Fund or the American Funds that are owned  
by our general account or by any of our unregistered separate accounts will be  
voted in the same proportion as the aggregate of:                               

[_]The shares for which voting instructions are received, and                   

[_]The shares that are voted in proportion to such voting instructions.         

However, if the law or the interpretation of the law changes, we may decide to  
exercise the right to vote the Portfolio's shares based on our judgment.        

WHO SELLS THE DEFERRED ANNUITIES                                                

 All Deferred Annuities are sold through our licensed sales representatives.
We are registered with the Securities and Exchange Commission as a        

[GRAPHIC] 

                                                                            75

485BPOS
80th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 80th
broker-dealer under the Securities Exchange Act of 1934. We are also a member   
of the National Association of Securities Dealers, Inc. Deferred Annuities are  
also sold through other registered broker-dealers. They also may be sold        
through the mail or over the Internet.                                          

The licensed sales representatives and broker-dealers who sell the annuities    
may be compensated for these sales by commissions that we pay. There is no      
front-end sales load deducted from purchase payments to pay sales commissions.  
The commissions we pay range from 0% to 6% of purchase payments. The commission 
we pay upon annuitization of the Deferred Annuity is 0% to 3% of the amount     
applied to provide the payments.                                                

We also make payments to our licensed sales representatives based upon the      
total Account Balances of the Deferred Annuities assigned to the sales          
representative. Under this compensation program, we may pay an amount up to 1%  
of the total Account Balances of the Deferred Annuities and other annuity       
contracts, certain mutual fund account balances and cash values of certain life 
insurance policies. These asset based commissions compensate the sales          
representative for servicing the Deferred Annuities.                            

FINANCIAL STATEMENTS                                                            

The financial statements and related notes for the Separate Account and   
  MetLife are in the SAI and are available from MetLife upon request. Deloitte
& Touche, LLP, who are independent auditors, audit these financial statements.  

YOUR SPOUSE'S RIGHTS                                                            

If you received your contract through a qualified retirement plan and your plan 
is subject to ERISA (the Employee Retirement Income Security Act of 1974) and   
you are married, the income payments, withdrawal and loan provisions, and       
methods of payment of the death benefit under your Deferred Annuity may be      
subject to your spouse's rights.                                                

If your benefit is worth $5,000 or less, your plan may provide for distribution 
of your entire interest in a lump sum without your spouse's consent.            

For details or advice on how the law applies to your circumstances, consult     
your tax advisor or attorney.                                                   

WHEN WE CAN CANCEL YOUR DEFERRED ANNUITY                                        

We may cancel your Deferred Annuity only if we do not receive any purchase      
payments from you for 24 consecutive months (36 consecutive months in New York  
State) and your Account Balance is less than $2,000. We will only do so to the  
extent allowed by law. If we do so, we will return the full Account Balance.    
Federal tax law may impose additional restrictions on our right to cancel your  
Traditional IRA, Roth IRA, SEP and SIMPLE IRA Deferred Annuity.                 

76                                                                              

485BPOS
81st Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 81st
INCOME TAXES                                                                    

The following information on taxes is a general discussion of the subject.
It is not intended as tax advice. The Internal Revenue Code ("Code") is   
complex and subject to change regularly. Consult your own tax advisor about     
your circumstances, any recent tax developments, and the impact of state income 
taxation. For purposes of this section, we address Deferred Annuities and       
income payments under the Deferred Annuities together.                          

You are responsible for determining whether your purchase of a Deferred         
Annuity, withdrawals, income payments and any other transactions under your     
Deferred Annuity satisfy applicable tax law.                                    

[GRAPHIC] 
[SIDEBAR: Simply stated, earnings on Deferred Annuities are generally not       
subject to Federal income tax until they are withdrawn. This is known as tax    
deferral.]                                                                      

Please note that the changes made by the Economic Growth and Tax Relief         
Reconciliation Act of 2001 (e.g., increased contribution limits for IRAs and    
qualified plans) expire after 2010.                                             

Where otherwise permitted under the Deferred Annuity, the transfer of ownership 
of a Deferred Annuity, the designation or change in designation of an           
annuitant, payee or other beneficiary who is not also an owner, the selection   
of certain maturity dates, the exchange of a Deferred Annuity, or the receipt   
of a Deferred Annuity in an exchange, may result in income tax and other tax    
consequences, including estate tax, gift tax and generation skipping transfer   
tax, that are not discussed in this Prospectus. Please consult your tax adviser.

MetLife does not expect to incur Federal, state or local income taxes on the    
earnings or realize capital gains attributable to the Separate Account.         
However, if we do incur such taxes in the future, we reserve the right to       
charge amounts allocated to the Separate Account for these taxes.               

To the extent permitted under Federal tax law, we may claim the benefit of      
certain foreign tax credits attributable to taxes paid by certain of the        
Portfolios to foreign jurisdictions.                                            

GENERAL                                                                         

Deferred annuities are a means of setting aside money for future needs-   
 usually retirement. Congress recognizes how important saving for retirement
is and has provided special rules in the Code.                                  

All IRAs receive tax deferral under the Code. Although there are no additional  
tax benefits by funding your IRA with an annuity, it does offer you additional  
insurance benefits such as an available guaranteed income for life.             

We are not responsible for determining if your employer's plan or arrangement   
satisfies the requirements of the Code and/or ERISA (the Employee Retirement    
Income Security Act of 1974).                                                   

WITHDRAWALS                                                                     

Because these products are intended for retirement, if you make a taxable       
withdrawal before age 59 1/2 you may incur a tax penalty.                       

                                                                            77

485BPOS
82nd Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 82nd
[GRAPHIC] 
When money is withdrawn from your contract (whether by you or your              
beneficiary), the amount treated as taxable income and taxed as ordinary income 
differs depending on the type of:                                               

[_] annuity you purchase (e.g., Non-Qualified or IRA); and                      

[_] payment method or income payment type you elect.                            

We will withhold a portion of the amount of your withdrawal for income taxes,   
unless you elect otherwise. The amount we withhold is determined by the Code.   

If you meet certain requirements, your Roth IRA earnings are free from Federal  
income taxes.                                                                   

WITHDRAWALS BEFORE AGE 59 1/2                                                   

If you receive a taxable distribution from your contract before you reach age   
59 1/2, this amount may be subject to a 10% penalty tax, in addition to         
ordinary income taxes.                                                          

As indicated in the chart below, some taxable distributions prior to age 59 1/2 
are exempt from the penalty. Some of these exceptions include amounts received: 

                                                                [Download Table]

                                          Type of Contract             
                                        --------------------           
                                           Non    Trad. Roth SIMPLE    
                                        Qualified  IRA  IRA   IRA*  SEP
                                        --------- ----- ---- ------ ---
                                                                       

In a series of substantially equal                                     
payments made annually (or more                                        
frequently) for life or life expectancy                                
(SEPP)                                      x       x    x     x     x 

After you die                               x       x    x     x     x 

After you become totally disabled (as                                  
defined in the Code)                        x       x    x     x     x 

To pay deductible medical expenses                  x    x     x     x 

To pay medical insurance premiums                                      
if you are unemployed                               x    x     x     x 

For qualified higher education                                         
expenses, or                                        x    x     x     x 

For qualified first time home                                          
purchases up to $10,000                             x    x     x     x 

After December 31, 1999 for IRS                                        
levies                                              x    x     x     x 

Certain immediate income annuities                                     
providing a series of substantially                                    
equal periodic payments made                                           
annually (or more frequently) over                                     
the specified payment period                x                          

*  For SIMPLE IRAs the tax penalty for early withdrawals is generally increased 
to 25% for withdrawals within the first two years of your participation in
the SIMPLE IRA.                                                           

78                                                                              

485BPOS
83rd Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 83rd
SEPARATE ACCOUNT CHARGES                                                        

It is possible that the Internal Revenue Service ("IRS") may take a position    
that charges for certain death benefits and/or other optional benefits are      
deemed to be taxable distributions to you, which may be subject to ordinary     
income taxes and the 10% penalty tax if you are under age 59 1/2. You should    
consult your tax adviser regarding your death benefit and other optional        
benefits prior to selecting any optional benefit under the Deferred Annuity.    

SYSTEMATIC WITHDRAWAL PROGRAM FOR SUBSTANTIALLY EQUAL PERIODIC PAYMENTS (SEPP)  
AND INCOME OPTIONS                                                              

If you are considering using the Systematic Withdrawal Program or selecting an  
income option for the purpose of meeting the SEPP exception to the 10% tax      
penalty, consult with your tax adviser. It is not clear whether certain         
withdrawals or income payments under a variable annuity will satisfy the SEPP   
exception.                                                                      

If you receive systematic payments that you intend to qualify for the SEPP      
exception, any modifications (except due to death or disability) to your        
payment before age 59 1/2 or within five years after beginning SEPP payments,   
whichever is later, will result in the retroactive imposition of the 10%        
penalty with interest.                                                          

Such modifications may include additional purchase payments or withdrawals      
(including tax-free transfers or rollovers of income payments) from the         
Deferred Annuity.                                                               

[SIDEBAR: You may combine the money required to be withdrawn from each of your  
Traditional IRAs and SEPs and withdraw this amount from any one or more of      
them.]                                                                          

MINIMUM DISTRIBUTION REQUIREMENTS FOR TRADITIONAL IRAS AND SEPS                 

As the table below shows, generally you must receive your entire interest in    
your Traditional IRA, SIMPLE IRA or SEP or begin receiving withdrawals by April 
1 of the calendar year following the year in which you reach age 70 1/2.        

A tax penalty of 50% applies to withdrawals which should have been taken but    
were not. Complex rules apply to the timing and calculation of these            
withdrawals.                                                                    

                                                                [Download Table]

                          Type of Contract        
                   -------------------------------
                     Non -   Trad. Roth SIMPLE    
                   Qualified  IRA  IRA   IRA   SEP
                   --------- ----- ---- ------ ---
                                                  
Age 70 1/2 Minimum                                
distribution                                      
rules apply           no      yes   no   yes   yes

It is not clear whether income payments under a variable annuity will satisfy   
this rule. Consult your tax adviser prior to choosing an income option.         

                                                                            79

485BPOS
84th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 84th
If you intend to receive your minimum distributions which are payable over the  
joint lives of you and a beneficiary who is not your spouse (or over a period   
not exceeding the joint life expectancy of you and your non-spousal             
beneficiary), be advised that Federal tax rules may require that payments be    
made over a shorter period or may require that payments to the beneficiary be   
reduced after your death to meet the minimum distribution incidental benefit    
rules and avoid the 50% excise tax.                                             

[SIDEBAR: After-tax means that your purchase payments for your annuity do not   
reduce your taxable income or give you a tax deduction.]                        

NON-QUALIFIED ANNUITIES                                                         

[_]Purchase payments to Non-Qualified contracts are on an "after-tax" basis, so 
you only pay income taxes on your earnings. Generally, these earnings are 
taxed when you receive them from the contract.                            

[_]Your Non-Qualified contract may be exchanged for another Non-Qualified       
annuity without paying income taxes if certain Code requirements are met. 

[_]Consult your tax adviser prior to changing the annuitant or prior to         
changing the date you determine to commence income payments if permitted  
under the terms of your contract. It is conceivable that the IRS could    
consider such actions to be a taxable exchange of annuity contracts.      

[_]When a non-natural person owns a Non-Qualified contract, the annuity will    
generally not be treated as an annuity for tax purposes and thus loses the
benefit of tax deferral. Corporations and certain other entities are      
generally considered non-natural persons. However, an annuity owned by a  
 non-natural person as agent for an individual will be treated as an annuity
for tax purposes.                                                         

[_]Deferred annuities issued after October 21, 1988 by the same insurance       
  company or an affiliate in the same year are combined for tax purposes. As a
result, a greater portion of your withdrawals may be considered taxable   
income than you would otherwise expect.                                   

[_]In those limited situations where the annuity is beneficially owned by a     
 non-natural person and the annuity qualifies as such for Federal income tax
purposes, the entity may have a limited ability to deduct interest or, in 
the case of an insurance company, to deduct insurance reserves or incurred
losses.                                                                   

[_]Where otherwise permitted under the Deferred Annuity, pledges, assignments   
and other types of transfers of all or a portion of your Account Balance  
generally result in the immediate taxation of the gain in your Deferred   
Annuity. This rule may not apply to certain transfers between spouses.    

DIVERSIFICATION                                                                 

In order for your Non-Qualified Deferred Annuity to be considered an annuity    
contract for Federal income tax purposes, we must comply with certain           
diversification standards with respect to the investments underlying the        
contract. We believe that we satisfy and will continue to satisfy these         

80                                                                              

485BPOS
85th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 85th
diversification standards. Inadvertent failure to meet these standards may be   
correctable. Failure to meet these standards would result in immediate taxation 
to contract owners of gains under their contract.                               

CHANGES TO TAX RULES AND INTERPRETATIONS                                        

Changes in applicable tax rules and interpretations can adversely affect the    
tax treatment of your contract. These changes may take effect retroactively.    
Examples of changes that could create adverse tax consequences include:         

[_]Possible taxation of transfers between investment divisions or transfers     
from an investment division to the Fixed Account or Fixed Income Option.  

[_]Possible taxation as if you were the owner of your portion of the Separate   
Account's assets.                                                         

[_]Possible limits on the number of funding options available or the frequency  
of transfers among them.                                                  

We reserve the right to amend your Deferred Annuity where necessary to maintain 
its status as a variable annuity contract under Federal tax law and to protect  
you and other contractholders in the investment divisions from adverse tax      
consequences.                                                                   

PURCHASE PAYMENTS                                                               

Although the Code does not limit the amount of your purchase payments, your     
contract may limit them.                                                        

PARTIAL AND FULL WITHDRAWALS                                                    

Generally, when you (or your beneficiary in the case of a death benefit) make a 
partial withdrawal from your Non-Qualified annuity, the Code treats such a      
partial withdrawal as:                                                          

[_]First coming from earnings (and thus subject to income tax); and             

[_]Then from your purchase payments (which are not subject to income tax).      

[_]This rule does not apply to payments made pursuant to an income pay-out      
option under your contract.                                               

[_]In the case of a full withdrawal, the withdrawn amounts are treated as first 
coming from your non-taxable return of purchase payment and then from a   
taxable payment of earnings.                                              

INCOME PAYMENTS                                                                 

Different tax rules generally apply to payments made pursuant to an income      
annuity pay-out option under your contract. They are subject to an "exclusion   
ratio" or "excludable amount" which determines how much of each payment is      
treated as:                                                                     

[_]A non-taxable return of your purchase payments; and                          

[_]A taxable payment of earnings.                                               

                                                                            81

485BPOS
86th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 86th
The IRS has not approved the use of an exclusion ratio when only part of an     
account balance is used to convert to income payments.                          

The IRS has not specifically approved the use of a method to calculate an       
excludable amount with respect to a variable income annuity where transfers are 
permitted between investment divisions or from an investment division into a    
fixed option.                                                                   

We generally will tell you how much of each income payment is a non-taxable     
return of your purchase payment. However, it is possible that the IRS could     
conclude that the taxable portion of income payments under a Non-Qualified      
Deferred Annuity is an amount greater (or lesser) than the taxable amount       
determined by us and reported by us to you and the IRS. Generally, once the     
total amount treated as a non-taxable return of your purchase payment equals    
your purchase payment (reduced by any refund or guarantee feature), then all    
remaining payments are fully taxable. We will withhold a portion of the taxable 
amount of your income payment for income taxes, unless you elect otherwise. The 
amount we withhold is determined by the Code.                                   

These rules also generally apply to income payments made to your beneficiary as 
a death benefit.                                                                

Under the Code, withdrawals or income payments from Non-Qualified annuities     
need not be made by a particular age. However, it is possible that the IRS may  
determine that you must take a lump sum withdrawal or elect to receive income   
payments by a certain age (e.g., 85).                                           

[SIDEBAR: If you die during the accumulation phase of a Deferred Annuity and    
your spouse is your beneficiary or a co-owner, he or she may elect to continue  
as "owner" of the contract.]                                                    

DEATH BENEFITS                                                                  

The death benefit is generally taxable to the recipient in the same manner as   
if paid to the owner (under the rules for withdrawals or income payments,       
whichever is applicable).                                                       

If you die before the annuity starting date, as defined under Treasury          
Regulations, we must make payment of your entire interest in the contract       
within five years of the date of your death or begin payments for a period and  
in a manner allowed by the Code (and any regulations thereunder) to your        
beneficiary within one year of the date of your death. If your spouse is your   
beneficiary, he or she may elect to continue as "owner" of the contract.        

If you die on or after the annuity starting date, as defined under Treasury     
Regulations, payments must continue to be made at least as rapidly as before    
your death in accordance with the income type selected.                         

If you die before all purchase payments are returned, the unreturned amount may 
be deductible on your final income tax return or excluded from income by your   
beneficiary if income payments continue after your death.                       

In the case of joint owners, the above rules will be applied on the death of    
any owner.                                                                      

82                                                                              

485BPOS
87th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 87th
Where the owner is not a natural person, these rules will be applied on the     
death of any annuitant (or on the change in annuitant, if permitted under the   
contract).                                                                      

If death benefit payments are being made to your designated beneficiary and     
he/she dies prior to receiving the entire remaining interest in the contract,   
such remaining interest will be paid out at least as rapidly as under the       
distribution method being used at the time of your designated beneficiary's     
death.                                                                          

After your death, if your designated beneficiary dies prior to electing a       
method for the payment of the death benefit, the only remaining interest in the 
contract will be paid out in a lump sum. In all cases, such payments will be    
made within five years of the date of your death.                               

INDIVIDUAL RETIREMENT ANNUITIES                                                 

[TRADITIONAL IRA, ROTH IRA, SIMPLE IRA AND SEPS]                                

The sale of a contract for use with an IRA may be subject to special disclosure 
requirements of the IRS. Purchasers of a contract for use with IRAs will be     
provided with supplemental information required by the IRS or other appropriate 
agency. A contract issued in connection with an IRA may be amended as necessary 
to conform to the requirements of the Code.                                     

[GRAPHIC] 

IRA contracts may not invest in life insurance. The Deferred Annuity offers     
death benefits and optional benefits that in some cases may exceed the greater  
of the purchase payments or the Account Balance which could conceivably be      
characterized as life insurance.                                                

The Deferred Annuity (and optional death benefits and appropriate IRA tax       
endorsements) has been submitted to the IRS for review and approval as to form. 
Disqualification of the Deferred Annuity as an IRA could result in the          
immediate taxation of amounts held in the contract and other adverse tax        
consequences.                                                                   

Consult your tax adviser prior to the purchase of the contract as a             
Traditional, Roth IRA, SIMPLE IRA or SEP.                                       

The Economic Growth and Tax Relief Reconciliation Act of 2001 made certain      
changes to qualified plans and IRAs, including:                                 

[_]increasing the contribution limits for qualified plans and Traditional and   
Roth IRAs, starting in 2002;                                              

[_]adding "catch-up" contributions for taxpayers age 50 and above; and          

[_]adding enhanced portability features.                                        

You should consult your tax adviser regarding these changes.                    

Generally, except for Roth IRAs, IRAs can accept deductible (or pre-tax)        
purchase payments. Deductible or pre-tax purchase payments will be taxed when   
distributed from the contract.                                                  

                                                                            83

485BPOS
88th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 88th
[_]You must be both the owner and the annuitant under the contract.             

[_]Your annuity is generally not forfeitable (e.g. not subject to claims of     
your creditors) and you may not transfer, assign or pledge it to someone  
else. You are not permitted to borrow from the contract.                  

[_]You can transfer your IRA proceeds to a similar IRA, certain qualified       
retirement plans (or a SIMPLE IRA to a Traditional IRA or eligible        
retirement plan after two years) without incurring Federal income taxes if
certain conditions are satisfied.                                         

[SIDEBAR: In some cases, your purchase payments may be tax deductible.]         

TRADITIONAL IRA ANNUITIES                                                       

PURCHASE PAYMENTS                                                               

Generally:                                                                      

[_]Except for permissible rollovers and direct transfers, purchase payments to  
Traditional and Roth IRAs for individuals under age 50 are limited to the 
lesser of 100% of compensation or the deductible amount each year ($3,000 
 for 2003-2004.) This amount increases to $4,000 for tax years 2005-2007 and
reaches $5,000 in 2008 (adjusted for inflation thereafter). A purchase    
payment up to the deductible amount can also be made for a non-working    
spouse provided the couple's compensation is at least equal to their      
aggregate contributions.                                                  

[_]Beginning in 2002, individuals age 50 or older can make an additional        
"catch-up" purchase payment of $500 a year (assuming the individual has   
sufficient compensation). This amount increases to $1,000 for tax years   
beginning in 2006.                                                        

[_]Purchase payments in excess of allocable amounts may be subject to a penalty 
tax.                                                                      

[_]Purchase payments (except for permissible rollovers and direct transfers)    
 are generally not permitted after the calendar year in which you attain age
69 1/2.                                                                   

[_]These age and dollar limits do not apply to tax-free rollovers or transfers. 

[_]If certain conditions are met, you can change your Traditional IRA purchase  
payment to a Roth IRA before you file your income tax return (including   
filing extensions).                                                       

[_]If contributions are being made under a SEP or a SAR-SEP plan of your        
  employer, additional amounts may be contributed as permitted by the Code and
the terms of the employer's plan.                                         

Annual purchase payments are generally deductible up to the above limits if     
neither you nor your spouse was an "active participant" in another qualified    
retirement plan during the taxable year. You will not be treated as married for 
these purposes if you lived apart for the entire taxable year and file separate 
returns. For 2003, if you are an "active participant" in another retirement     
plan and if your adjusted gross income is $40,000 or less ($60,000 for married  
couples                                                                         

84                                                                              

485BPOS
89th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 89th
filing jointly, however, never fully deductible for a married person filing     
separately), annual contributions are fully deductible. However, contributions  
are not deductible if your adjusted gross income is over $50,000 ($70,000 for   
married couples filing jointly, $10,000 for a married person filing             
separately). If your adjusted gross income falls between these amounts, your    
maximum deductible amount is phased out. For an individual who is not an        
"active participant" but whose spouse is, the adjusted gross income limits for  
the nonactive participant spouse is $150,000 for a full deduction (with a       
phase-out between $150,000 and $160,000). If you file a joint return and you    
and your spouse are under age 70 1/2 as of the end of the calendar year, you    
and your spouse may be able to make annual IRA contributions of up to twice the 
deductible amount to two IRAs, one in your name and one in your spouse's.       
Neither can exceed the deductible amount, nor can it exceed your joint          
compensation.                                                                   

WITHDRAWALS AND INCOME PAYMENTS                                                 

Withdrawals and income payments are included in income except for the portion   
that represents a return of non-deductible purchase payments. This portion is   
generally determined based on a ratio of all non-deductible purchase payments   
to the total values of all your Traditional IRAs.                               

DEATH BENEFITS                                                                  

The death benefit is taxable to the recipient in the same manner as if paid to  
the owner (under the rules for withdrawals or income payments, whichever is     
applicable).                                                                    

Generally, if you die before required minimum distribution withdrawals have     
begun, we must make payment of your entire interest by December 31st of the     
year that is the fifth anniversary of your death or begin making payments over  
a period and in a manner allowed by the Code to your beneficiary by December    
31st of the year after your death.                                              

If your spouse is your beneficiary, your spouse may delay the start of these    
payments until December 31 of the year in which you would have reached age      
70 1/2. Alternatively, if your spouse is your beneficiary, he or she may elect  
to continue as "owner" of the contract.                                         

If you die after required distributions begin, payments of your entire          
remaining interest must be made in a manner and over a period as provided under 
the Code (and any applicable regulations).                                      

If the contract is issued in your name after your death for the benefit of your 
designated beneficiary with a purchase payment which is directly transferred to 
the contract from another IRA account or IRA annuity you owned, the death       
benefit must continue to be distributed to your beneficiary's beneficiary in a  
manner at least as rapidly as the method of distribution in effect at the time  
of your beneficiary's death.                                                    

                                                                            85

485BPOS
90th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 90th
ROTH IRA ANNUITIES                                                              

GENERAL                                                                         

Roth IRAs are different from other IRAs because you have the opportunity to     
enjoy tax-free earnings. However, you can only make after-tax purchase payments 
to a Roth IRA.                                                                  

PURCHASE PAYMENTS                                                               

[SIDEBAR: For 2003-2004 annual purchase payments to your Traditional IRAs and   
Roth IRAs, the aggregate may not exceed the lesser of $3,000 or 100% of your    
compensation as defined by the Code for individuals under age 50.]              

Roth IRA purchase payments for individuals under age 50 are non-deductible and  
are limited to the lesser of 100% of compensation or the deductible amount      
($3,000 for tax years 2003-2004), including contributions to all your           
Traditional and Roth IRAs). This amount increases to $4,000 for tax years       
2005-2007 and reaches $5,000 in 2008 (adjusted for inflation thereafter). In    
2003 individuals age 50 or older can make an additional "catch-up" purchase     
payment of $500 a year (assuming the individual has sufficient compensation).   
This amount increases to $1,000 for tax years beginning in 2006. You may        
contribute up to the annual purchase payment limit in 2003 if your modified     
adjusted gross income does not exceed $95,000 ($150,000 for married couples     
filing jointly). Purchase payment limits are phased out if your modified        
adjusted gross income is between:                                               

                                                                [Download Table]

         Status                Income      
         ------                ------      
                                           
       Individual         $95,000-$110,000 
 Married filing jointly   $150,000-$160,000
Married filing separately    $0-$10,000    

..  Annual purchase payments limits do not apply to a rollover from a Roth IRA  
to another Roth IRA or a conversion from a Traditional IRA to a Roth IRA. 

..  You can contribute to a Roth IRA after age 70 1/2.                          

..  If you exceed the purchase payment limits you may be subject to a tax       
penalty.                                                                  

..  If certain conditions are met, you can change your Roth IRA contribution to 
a Traditional IRA before you file your income return (including filing    
extensions).                                                              

[GRAPHIC]                                                                       

WITHDRAWALS                                                                     

Generally, withdrawals of earnings from Roth IRAs are free from Federal income  
tax if they meet the following two requirements:                                

[_]The withdrawal is made:                                                      

..  At least five taxable years after your first purchase payment to a Roth IRA,
and                                                                       

[_]The withdrawal is made:                                                      

..  On or after the date you reach age 59 1/2;                                  

86                                                                              

485BPOS
91st Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 91st
..  Upon your death or disability; or                                           

..  For a qualified first-time home purchase (up to $10,000).                   

Withdrawals of earnings which do not meet these requirements are taxable and a  
10% penalty tax may apply if made before age 59 1/2.                            

Withdrawals from a Roth IRA are made first from purchase payments and then from 
earnings. Generally, you do not pay income tax on withdrawals of purchase       
payments. However, withdrawals of taxable converted amounts from a non-Roth IRA 
prior to age 59 1/2 will be subject to the 10% penalty tax (unless you meet an  
exception) if made within 5 taxable years of such conversion.                   

The order in which money is withdrawn from a Roth IRA is as follows:            

(All Roth IRAs owned by a taxpayer are combined for withdrawal purposes.)       

[_]The first money withdrawn is any annual (non-conversion/rollover)            
contributions to the Roth IRA. These are received tax and penalty free.   

[_]The next money withdrawn is from conversion/rollover contributions from a    
non-Roth IRA, on a first-in, first-out basis. For these purposes,         
distributions are treated as coming first from the taxable portion of the 
conversion/rollover contribution. As previously discussed, depending upon 
  when it occurs, withdrawals of taxable converted amounts may be subject to a
penalty tax, or result in the acceleration of inclusion of income.        

[_]The next money withdrawn is from earnings in the Roth IRA. This is received  
 tax-free if it meets the requirements previously discussed; otherwise it is
  subject to Federal income tax and an additional 10% penalty tax may apply if
you are under age 59 1/2.                                                 

CONVERSION                                                                      
[SIDEBAR: If you are married but file separately, you may not convert an        
existing IRA into a Roth IRA.]                                                  

You may convert/rollover an existing IRA to a Roth IRA if your modified         
adjusted gross income does not exceed $100,000 in the year you convert.         

Except to the extent you have non-deductible IRA contributions, the amount      
converted from an existing IRA into a Roth IRA is taxable. Generally, the 10%   
withdrawal penalty does not apply to conversions/rollovers. (See exception      
discussed previously.)                                                          

Unless you elect otherwise, amounts converted from a Traditional IRA to a Roth  
IRA will be subject to income tax withholding. The amount withheld is           
determined by the Code.                                                         

If you mistakenly convert or otherwise wish to change your Roth IRA             
contribution to a Traditional IRA contribution, the tax law allows you to       
reverse your conversion provided you do so before you file your tax return for  
the year of the contribution and if certain conditions are met.                 

                                                                            87

485BPOS
92nd Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 92nd
DEATH BENEFITS                                                                  

Generally, when you die we must make payment of your entire interest by the     
December 31st of the year that is the fifth anniversary of your death or begin  
making payments over a period and in a manner allowed by the Code to your       
beneficiary by December 31st of the year after your death.                      

If your spouse is your beneficiary, your spouse may delay the start of required 
payments until December 31st of the year in which you would have reached age    
70 1/2.                                                                         

If your spouse is your beneficiary, he or she may elect to continue as "owner"  
of the contract.                                                                

SIMPLE IRAS AND SEPS ANNUITIES                                                  

The Code provides for certain contribution limitations and eligibility          
requirements under SIMPLE IRAs and SEP arrangements. The minimum distribution   
requirements are generally the same as Traditional IRAs. There are some         
differences in the tax treatment of certain SIMPLE IRA transfers and rollovers. 
Please consult your tax advisor; see the SAI for additional information.        

88                                                                              

485BPOS
93rd Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 93rd
TABLE OF CONTENTS FOR THE STATEMENT                                             
OF ADDITIONAL INFORMATION                                                       

                                                                [Download Table]

                                                                  PAGE
                                                                      

COVER PAGE.......................................................   1 

TABLE OF CONTENTS................................................   1 

INDEPENDENT AUDITORS.............................................   2 

DISTRIBUTION OF CERTIFICATES AND INTERESTS IN THE DEFERRED            
  ANNUITIES......................................................   2 

EXPERIENCE FACTOR................................................   2 

VARIABLE INCOME PAYMENTS.........................................   2 

INVESTMENT MANAGEMENT FEES.......................................   5 

PERFORMANCE DATA AND ADVERTISEMENT OF THE SEPARATE ACCOUNT.......   8 

VOTING RIGHTS....................................................  11 

ERISA............................................................  12 

TAXES--SIMPLE IRAS ELIGIBILITY AND CONTRIBUTIONS.................  12 

PERFORMANCE DATA.................................................  13 

ACCUMULATION UNIT VALUES TABLES..................................  22 

FINANCIAL STATEMENTS OF THE SEPARATE ACCOUNT.....................     

FINANCIAL STATEMENTS OF METLIFE..................................     

[GRAPHIC] 

                                                                            89

485BPOS
94th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 94th
APPENDIX                                                                        

PREMIUM TAX TABLE                                                               

If you are a resident of one of the following jurisdictions, the percentage     
amount listed by that jurisdiction is the premium tax rate applicable to your   
annuity.                                                                        
[GRAPHIC] 

                                                                [Download Table]


                     Non-Qualified IRA and SEP,
                     Annuities     Annuities(1)
                                               
California.......... 2.35%         0.5%(2)     
Maine............... 2.0%          --          
Nevada.............. 3.5%          --          
Puerto Rico......... 1.0%          1.0%        
South Dakota........ 1.25%         --          
West Virginia....... 1.0%          1.0%        
Wyoming............. 1.0%          --          

-----------                                                                     
/1/Premium tax rates applicable to IRA and SEP annuities purchased for use in   
connection with individual retirement trust or custodial accounts meeting 
  the requirements of Section 408(a) of the Code are included under the column
heading "IRA and SEP Annuities."                                          

/2/With respect to annuities purchased for use in connection with individual    
retirement trust or custodial accounts meeting the requirements of Section
408(a) of the Code, the annuity tax rate in California is 2.35% instead of
0.5%.                                                                     

PEANUTS (C) United Feature Syndicate, Inc.                                      

(C) 2003 Metropolitan Life Insurance Company                                    

90                                                                              

485BPOS
95th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 95th
Request For a Statement of  
Additional Information/Change of Address  

If you would like any of the following Statements of Additional Information, or 
have changed your address, please check the appropriate box below and return to 
the address below.                                                              

[_] Metropolitan Life Separate Account E, Metropolitan Series Fund, Inc. and    
Met Investors Series Trust                                              

[_] American Funds Insurance Series                                             

[_] I have changed my address. My current address is:                           

________________________                                                        
                                               Name __________________________
(Contract Number)                                                       

                                            Address __________________________

________________________                                                        
                                                     _________________________
(Signature)                                                         
                                                                           zip

Metropolitan Life Insurance Company                                             
Attn: Fulfillment Unit - PPS                                                    
1600 Division Road                                                              
West Warwick, RI 02893                                                          

485BPOS
96th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 96th
         [LOGO] MetLife(R)

Metropolitan Life Insurance Company 
Home Office: New York, NY 

E0304BAPU(exp0504) MLIC-LD 0230791(0503) Printed in 
U.S.A. PPSPROSP(0503)                               

485BPOS
97th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 97th
APPENDIX FOR GRAPHIC AND IMAGE MATERIAL 

 Pursuant to Rule 304 of Regulation S-T, the following table presents fair
and accurate narrative descriptions of graphic and image material omitted from  
the EDGAR filing due to ASCII-incompatibility and cross-references this         
material to the location of each occurrence in the text.                        

INTRODUCTION  

The prospectus included in the Form N-4 for Metropolitan Life Separate  
Account E include illustrations using various characters from the PEANUTS(R)    
gang which are copyrighted by United Feature Syndicate, Inc. There is a list    
and description of characters followed by a list of illustrations and their     
page location in the prospectus.                                                

CHARACTERS  

Snoopy--A Beagle dog                                                    
Charlie Brown--A little boy with zigzag pattern on shirt                
Woodstock--A small bird                                                 
Lucy--A little brunette girl                                            
Linus--A younger little boy with stripped shirt (Lucy's brother)        
Marcie--A little brunette girl with glasses                             
Franklin--A curly haired little boy                                     
Pigpen--A little boy with dust cloud and smudged face                   
Peppermint Patty--An athletic girl with freckles, page boy haircut and  
sandals                                                                 
Sally--A little blond girl with curls on top (Charlie Brown's sister)   

                                                        [Enlarge/Download Table]

                                                   Page                                  
                                                   ----                                  
                                                                                         
 1. Snoopy as MetLife Representative with         Page 1  cover                          
    briefcase straightening bow tie                                                      

 2. Charlie Brown on step ladder looking at fold  Page 4  Table of Contents              
    out map                                                                              

 3. Snoopy in suit with pointer                   Page 5  Important Terms You Should Know

 4. Snoopy as MetLife Representative listening    Page 28 MetLife                        
    to crowd of Woodstocks                                                               

 5. Snoopy and Woodstock balanced on seesaw       Page 29 Variable Annuities             

 6. Woodstock making calculations on paper with   Page 30 Classes of the Deferred Annuity
    pencil                                                                               

 7. Snoopy reading menu at restaurant table       Page 34 Your Investment Choices        

 8. Linus building sand castle                    Page 36 Deferred Annuities             

 9. The Equity Generator/SM/ icon--Safe with      Page 38 The Equity Generator           
    arrow pointing to three dimensional graph                                            

10. The Rebalancer/SM/ icon--A pie chart with     Page 38 The Rebalancer                 
    arrows around circumference                                                          

11. The Index Selector/SM/ icon--A world globe    Page 39 The Index Selector             
    with arrows around it                                                                

12. The Allocator/SM/--A hourglass with safe in   Page 39 The Allocator                  
    top portion with arrow to a                                                          
    three dimensional chart in the bottom portion                                        

13. Snoopy as MetLife Representative typing at    Page 41 Allocation of Purchase Payments
    computer                                                                             

14. Marcie at desk with adding machine reviewing  Page 43 The Value of Your Investment   
    numbers                                                                              

                                                                           1

485BPOS
98th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 98th
                                                        [Enlarge/Download Table]

                                                                                  Page                                         
                                                                                  ----                                         
                                                                                                                               

15. Charlie Brown struggling to reach into jar of money                          Page 45 Access to Your Money                  

16. Snoopy as WWI flying ace dispatching Woodstocks with checks                  Page 45 Systematic Withdrawal Program         

17. Woodstock with accountant's visor and adding machine                         Page 46 Separate Account Charge               

18. Franklin with magnifying glass                                               Page 49 When No Withdrawal Charge Applies     

19. Marcie reading a paper                                                       Page 51 Free Look                             

20. Lucy with magnifying glass studying a piece of paper                         Page 55 Optional Benefits                     

21. Woodstock moving money bag from one pile of money bags to another            Page 61 Guaranteed Minimum Income Benefit     

22. Snoopy floating in innertube with glasses and drink                          Page 64 Pay-Out Options (or Income Options)   

23. Snoopy lounging on beach chair with sunglasses and drink                     Page 65 Lifetime Income Annuity for Two with a
                                                                                         Guarantee Period                      

24. Woodstock writing out a check                                                Page 66 Minimum Size of Your Income Payment   

25. Woodstock moving money bag from one pile of money bags to another            Page 67 Transfer Privilege                    

26. Charlie Brown receiving letter at mail box                                   Page 69 Purchase Payments                     

27. Charlie Brown listening on telephone                                         Page 70 Processing Transactions--By Telephone 
                                                                                         or Internet                           

28. "Colonial" Snoopy as town cryer                                              Page 72 Advertising Performance               

29. Snoopy as MetLife Representative shaking paw/wing with Woodstock             Page 75 Who Sells the Deferred Annuities      

30. Snoopy as "Uncle Sam" presenting a tax bill                                  Page 77 Income Taxes--General                 

31. Piggybank with "Do not open until age 59 1/2" printed on side                Page 78 Income Taxes--Withdrawals             

32. Linus "walking" the hoop with "IRAs" on side                                 Page 83 Income Taxes--IRAs                    

33. Woodstock flying with check                                                  Page 86 Roth IRA Annuities--Withdrawals       

34. Franklin, Snoopy, Charlie Brown, Lucy, Pigpen, Linus and Peppermint Patty    Page 89 Table of Contents for the SAI         

35. Lucy in her advice box with "TAXES--The Expert is in" printed on it advising Page 90 Premium Tax Table                     
    Peppermint Patty and Sally                                                                                                 

2                                                                               

485BPOS
99th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 99th
Metropolitan Life Insurance Company 
Metropolitan Life Separate Account E  

Preference Plus Select(R) Individual Variable Annuity Contracts 

STATEMENT OF ADDITIONAL INFORMATION 

Form N-4   Part B 

May 1, 2003 

   This Statement of Additional Information is not a prospectus but contains
information in addition to and more detailed than that set forth in the         
Prospectus for Preference Plus Select Deferred Annuities dated May 1, 2003 and  
should be read in conjunction with the Prospectus. Copies of the Prospectus may 
be obtained from Metropolitan Life insurance Company, Attn: Fulfillment         
Unit-PPS, 1600 Division Road, West Warwick, RI 02893.                           

 A Statement of Additional Information for the Metropolitan Series Fund,
Inc. ("Metropolitan Fund"), the Met Investors Series Trust ("Met Investors      
Fund") and the American Funds Insurance Series ("American Funds") are attached  
at the end of this Statement of Additional Information.                         

Unless otherwise indicated, the Statement of Additional Information   
continues the use of certain terms as set forth in the section entitled         
"Important Terms You Should Know" of the Prospectus for Preference Plus Select  
Individual Annuity Contracts dated May 1, 2003.                                 

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

TABLE OF CONTENTS 

                                                                            Page
                                                                            ----
Independent Auditors......................................................   2  
Distribution of Certificates and Interests in the Deferred Annuities......   2  
Experience Factor.........................................................   2  
Variable Income Payments..................................................   2  
Investment Management Fees................................................   5  
Performance Data and Advertisement of the Separate Account................   8  
Voting Rights.............................................................  11  
ERISA.....................................................................  12  
Taxes-SIMPLE IRAs Eligibility and Contributions...........................  12  
Performance Data .........................................................  13  
Accumulation Unit Values Tables ..........................................  22  
Financial Statements of Separate Account..................................  F-1 
Financial Statements of MetLife...........................................  F-65

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

485BPOS
100th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 100th
INDEPENDENT AUDITORS                                                            

The financial statements for Metropolitan Life Insurance Company and  
Metropolitan Life Separate Account E included in this Statement of Additional   
Information have been audited by Deloitte & Touche LLP, independent auditors, as
stated in their reports appearing herein, and have been so included in reliance 
upon such reports given upon the authority of such firm as experts in auditing  
and accounting.                                                                 

DISTRIBUTION OF CERTIFICATES AND INTERESTS IN THE DEFERRED ANNUITIES            

MetLife is both the depositor and the underwriter (issuer) of the     
annuities.                                                                      

   The certificates and interests in the Deferred Annuities are sold through
individuals who are licensed life insurance sales representatives of MetLife.   
MetLife is registered with the Securities and Exchange Commission as a          
broker-dealer under the Securities Exchange Act of 1934 and is a member of the  
National Association of Securities Dealers, Inc. They also are sold through     
other registered broker-dealers. They also may be sold through the mail or over 
the Internet.                                                                   

     The offering of all Deferred Annuities is continuous. Owners under Deferred
Annuities may not be offered all funding choices. Each contract will indicate   
those investment choices available under the Deferred Annuity.                  

Withdrawal Charge                                                               

     The total amount of withdrawal charges paid and retained by MetLife for the
years ended December 31, 2001 and 2002 were $0 and $301,339.86 respectively.    

EXPERIENCE FACTOR                                                               

    We use the term "experience factor" to describe the investment performance
for an investment division. The experience factor changes from Valuation Period 
(described later) to Valuation Period to reflect the upward or downward         
performance of the assets in the underlying Portfolios. The experience factor is
calculated as of the end of each Valuation Period using the net asset value per 
share of the underlying Portfolio. The net asset value includes the per share   
amount of any dividend or capital gain distribution paid by the Portfolio during
the current Valuation Period, and subtracts any per share charges for taxes and 
reserve for taxes. We then divide that amount by the net asset value per share  
as of the end of the last Valuation Period to obtain a factor that reflects     
investment performance. We then subtract a charge for each day in the valuation 
period which is the daily equivalent of the Separate Account charge. This charge
varies, depending on the class of the Deferred Annuity. Below is a chart of the 
daily factors for each class of the Deferred Annuity and the various death      
benefits and Earnings Preservation Benefit:                                     

Separate Account Charges for all investment divisions except American Funds     
Growth-Income, American Funds Growth and American Funds Global Small            
Capitalization (Daily Factor)                                                   

                                                        [Enlarge/Download Table]


                           B Class      Bonus Class (Years 1-7)*   C Class      L Class  
                        --------------  ------------------------ -----------  -----------
                                                                                         

Basic Death Benefit      0.000034247    0.000046575              0.000045205  0.000041096
Annual Step Up                                                                           
  Death Benefit          0.000039726    0.000052055              0.000050685  0.000046575
Greater of Annual                                                                        
  Step Up or 5%                                                                          
  Annual Increase                                                                        
  Death Benefit          0.000043836    0.000056164              0.000054795  0.000050685
Additional Charge for                                                                    
  Earnings Preservation                                                                  
  Benefit                0.000006849    0.000006849              0.000006849  0.000006849

*Applies only for the first seven years; Separate Account charges are reduced   
after seven years to those of B Class.                                        

Separate Account Charges for the American Funds Growth-Income, American Funds   
Growth and American Funds Global Small Capitalization Investment Divisions      
(Daily Factor)                                                                  

                                                        [Enlarge/Download Table]


                           B Class      Bonus Class (Years 1-7)*   C Class      L Class  
                        --------------  ------------------------ -----------  -----------
                                                                                         

Basic Death Benefit      0.000038356    0.000050685              0.000049315  0.000045205
Annual Step Up                                                                           
  Death Benefit          0.000043836    0.000056164              0.000054795  0.000050685
Greater of Annual                                                                        
  Step Up or 5%                                                                          
  Annual Increase                                                                        
  Death Benefit          0.000047945    0.000060274              0.000058904  0.000054795
Additional Charge for                                                                    
  Earnings Preservation                                                                  
  Benefit                0.000006849    0.000006849              0.000006849  0.000006849

*Applies only for the first seven years; Separate Account charges are reduced   
after seven years to those of B Class.                                        

VARIABLE INCOME PAYMENTS                                                        

Assumed Investment Return (AIR)                                                 

    The following discussion concerning the amount of variable income payments
is based on an Assumed Investment Return of 4% per year. It should not be       
inferred that such rates will bear any relationship to the actual net investment
experience of the Separate Account.                                             

Amount of Income Payments                                                       

   The cash you receive periodically from an investment division (after your
first payment if paid within 10 days of the issue date) will depend upon the    
number of annuity units held in that investment division (described below) and  
the Annuity Unit Value (described later) as of the 10th day prior to a payment  
date.                                                                           

  The Deferred Annuity specifies the dollar amount of the initial variable
income payment for each investment division (this equals the first payment      
amount if paid                                                                  

2 

485BPOS
101st Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 101st
within 10 days of the issue date). This initial variable income payment is      
computed based on the amount of the purchase payment applied to the specific    
investment division (net any applicable premium tax owed or contract charge),   
the AIR, the age and/or sex of the measuring lives and the income payment type  
selected. The initial payment amount is then divided by the Annuity Unit Value  
for the investment division to determine the number of annuity units held in    
that investment division. The number of annuity units held remains fixed for the
duration of the contract.                                                       

     The dollar amount of subsequent variable income payments will vary with the
amount by which investment performance is greater or lesser than the AIR and    
Separate Account charges.                                                       

   Each Deferred Annuity provides that, when a pay-out option is chosen, the
payment to the annuitant will not be less than the payment produced by the then 
current rates for that contract class, which will not be less than the rates    
used for a currently issued single payment immediate annuity contract. The      
purpose of this provision is to assure the annuitant that, at retirement, if the
Fixed Income Option purchase rates for new single payment immediate contracts   
are significantly more favorable than the rates guaranteed by a Deferred Annuity
of the same class, the annuitant will be given the benefit of the new rates.    
Although guaranteed annuity rates for the Bonus Class are the same as for the   
other classes of the Deferred Annuity, current rates for the Bonus Class may be 
lower than the other classes of the Deferred Annuity and may be less than the   
currently issued single payment immediate annuity contract rates.               

Annuity Unit Value                                                              

     The Annuity Unit Value is calculated at the same time that the Accumulation
Unit Value for Deferred Annuities is calculated and is based on the same change 
in investment performance in the Separate Account. (See "The Value of Your      
Income Payment" in the Prospectus.)                                             

Calculating the Annuity Unit Value                                              

     We calculate Annuity Unit Values once a day on every day the New York Stock
Exchange is open for trading. We call the time between two consecutive Annuity  
Unit Value calculations the "Valuation Period." We have the right to change the 
basis for the Valuation Period, on 30 days' notice, as long as it is consistent 
with the law. All purchase payments and transfers are valued as of the end of   
the Valuation Period during which the transaction occurred. The Annuity Unit    
Values can increase or decrease, based on the investment performance of the     
corresponding underlying Portfolios. If the investment performance is positive, 
after payment of Separate Account expenses and the deduction for the AIR,       
Annuity Unit Values will go up. Conversely, if the investment performance is    
negative, after payment of Separate Account expenses and the deduction for the  
AIR, Annuity Unit Values will go down.                                          

     To calculate an Annuity Unit Value, we first multiply the experience factor
for the period by a factor based on the AIR and the number of days in the       
Valuation Period. For an AIR of 4% and a one day Valuation Period, the factor is
..99989255, which is the daily discount factor for an effective annual rate of  
4%. (The AIR may be in the range of 3% to 6%, as defined in your Deferred       
Annuity and the laws in your state.) The resulting number is then multiplied by 
the last previously calculated Annuity Unit Value to produce the new Annuity    
Unit Value.                                                                     

3 

485BPOS
102nd Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 102nd
The following illustrations show, by use of hypothetical examples, the  
method of determining the Annuity Unit Value and the amount of variable income  
payments upon annuitization.                                                    

Illustration of Calculation of Annuity Unit Value 

1. Annuity Unit Value, beginning of period ........................ $ 10.20000  

2. "Experience factor" for period .................................   1.023558  

3. Daily adjustment for 4% of Assumed Investment Rate .............  .99989255  

4. (2) X (3) ......................................................   1.023448  

5. Annuity Unit Value, end of period (1) X (4) .................... $ 10.43917  

Illustration of Annuity Payments  
(Assumes the first monthly payment is made within 10 days of the issue date of  
the Income Annuity) 
Annuitant age 65, Life Annuity with 120 Payments Guaranteed 

1. Number of Accumulation Units as of Annuity Date ................   1,500.00  

2. Accumulation Unit Value ........................................ $ 11.80000  

3. Accumulation Unit Value of the Deferred Annuity (1) X (2) ...... $17,700.00  

4. First monthly income payment per $1,000 of Accumulation Value .. $     5.63  

5. First monthly income payment (3) X (4) / 1,000 ................. $    99.65  

6. Assume Annuity Unit Value as of Annuity Date equal to .......... $ 10.80000  

7. Number of Annuity Units (5) / (6) .............................. $   9.2269  

8. Assume Annuity Unit Value for the second month equal to (10 days             
prior to payment) ................................................. $ 10.97000  

9. Second monthly Annuity Payment (7) X (8) ....................... $   101.22  

10. Assume Annuity Unit Value for third month equal to ............ $ 10.52684  

11. Next monthly Annuity Payment (7) X (10) ....................... $    97.13  

Determining the Variable Income Payment                                         

Variable income payments can go up or down based upon the investment      
performance of the investment divisions in the Separate Account. AIR is the     
rate used to determine the first variable income payment and serves as a        
benchmark against which the investment performance of the investment divisions  
is compared. The higher the AIR, the higher the first variable income payment   
will be. Subsequent variable income payments increase only to the extent that   
the investment performance of the investment divisions exceeds the AIR (and     
Separate Account charges). Variable income payments will decline if the         
investment performance of the Separate Account does not exceed the AIR (and     
Separate Account charges). A lower AIR will result in a lower first variable    
income payment, but variable income payments will increase more rapidly         
or decline more slowly as changes occur in the investment divisions.            

4 

485BPOS
103rd Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 103rd
INVESTMENT MANAGEMENT FEES                                                      

METLIFE ADVISERS                                                                

   Each of the currently available Metropolitan Fund Portfolios pays MetLife
Advisers, the investment manager of the Metropolitan Fund, an investment        
management fee.                                                                 

   The following table shows the fee schedules for the investment management
fees for the Metropolitan Fund as a percentage per annum of the average net     
assets for each Portfolio:                                                      

                                                                [Download Table]


                                         AVERAGE           ANNUAL  
                                        DAILY NET        PERCENTAGE
PORTFOLIO                           ASSET VALUE LEVELS      RATE   
----------------------------------  -----------------  ------------
                                                                   
State Street Research Investment    1st $500 Million           .55%
 Trust                              next $500 million          .50%
                                    over $1 billion            .45%
State Street Research Diversified   1st $500 million           .50%
                                    next $500 million          .45%
                                    over $1 billion            .40%
State Street Research               1st $500 million           .75%
 Aggressive Growth                  next $500 million          .70%
                                    over $1 billion            .65%
Met/Putnam Voyager                  1st $500 million           .80%
                                    next $500 million          .75%
                                    over $1 billion            .70%
State Street Research Aurora        1st $500 million           .85%
                                    next $500 million          .80%
                                    over $1 billion            .75%
State Street Research               1st $250 million           .70%
 Large Cap Value                    next $500 million          .65%
                                    over $750 million          .60%
Putnam International Stock          1st $500 million           .90%
                                    next $500 million          .85%
                                    over $1 billion            .80%
T. Rowe Price Small Cap Growth      1st $100 million           .55%
                                    next $300 million          .50%
                                    over $400 million          .45%
T. Rowe Price Large Cap Growth      1st $50 million            .70%
                                    over $50 million           .60%
Janus Mid Cap                       1st $100 million           .75%
                                    next $400 million          .70%
                                    over $500 million          .65%
Scudder Global Equity               1st $50 million            .90%
                                    next $50 million           .55%
                                    next $400 million          .50%
                                    over $500 million         .475%
Harris Oakmark Large Cap Value      1st $250 million           .75%
                                    over $250 million          .70%
Neuberger Berman Partners           1st $100 million           .70%
 Mid Cap Value                      next $250 million         .675%
                                    next $500 million          .65%
                                    next $750 million         .625%
                                    over $1.6 billion          .60%
Franklin Templeton Small Cap        1st $500 million           .90%
 Growth                             over $500 million          .85%
MetLife Stock Index                 All Assets                 .25%
Lehman Brothers(R) Aggregate        All Assets                 .25%
 Bond Index                                                        
Russell 2000(R) Index               All Assets                 .25%
Morgan Stanley EAFE(R) Index        All Assets                 .30%
MetLife Mid Cap Stock Index         All Assets                 .25%
State Street Research               1st $1 billion             .35%
 Money Market                       next $1 billion            .30%
                                    over $2 billion            .25%

                                                                [Download Table]

                                ANNUAL             AVERAGE DAILY NET        
SERIES                     PERCENTAGE RATE         ASSET VALUE LEVELS       
-------------------------- ----------------  ------------------------------ 
                                                                            

Loomis Sayles Small Cap          .90%        the first $500 million amounts 
                                 .85%        in excess of $500 million      
Harris Oakmark Focused           .75%        all assets                     
 Value                                                                      
Davis Venture Value              .75%        the first $1 billion amounts   
                                 .70%        in excess of $1 billion amounts
Salomon Brothers Strategic       .65%        all assets                     
 Opportunities Bond                                                         
Salomon Brothers U.S.            .55%        all assets                     
 Government                                                                 
MFS Investors Trust              .75%        all assets                     
MFS Research Managers            .75%        all assets                     

State Street Research                                                       
 Bond Income                     .40%        the first $1 billion           

                                 .35%        next $1 billion                
                                 .30%        next $1 billion                
                                 .25%        over $3 billion                

FI Structured Equity             .70%        the first $200 million         
                                 .65%        next $300 million              
                                 .60%        next $1.5 billion              
                                 .55%        over $2 billion                

FI Mid Cap Opportunities         .80%        the first $250 million         
                                 .75%        next $500 million              
                                 .70%        over $750 million              

MetLife Advisers pays the following entities for providing services as
sub-investment manager of the Metropolitan Fund Portfolio(s) indicated below.   
These fees are solely the responsibility of MetLife Advisers.                   

SUB-INVESTMENT MANAGER                 PORTFOLIO(S)                             
---------------------------------------------------                             
Metropolitan Life Insurance       MetLife Stock Index                           
Company                         Lehman Brothers(R) Aggregate                
  Bond Index
         Russell 2000(R) Index
                Morgan Stanley EAFE(R) Index
               MetLife Mid Cap Stock Index
State Street Research &           State Street Research Large Cap Value         
Management Company(1)           State Street Research                       
Diversified 
         State Street Research
Bond Income 
         State Street Research
    Investment Trust
         State Street Research
     Aggressive Growth
                State Street Research Aurora
                      State Street Research Money Market
Putnam Investment Management,     Met/Putnam Voyager                            
Inc.                            Putnam International Stock                  

5 

485BPOS
104th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 104th
Janus Capital Management LLC      Janus Mid Cap                                 
T. Rowe Price Associates, Inc.    T. Rowe Price Small Cap Growth                
                  T. Rowe Price Large Cap Growth
Deutsche Investment Management                                                  
Americas Inc.                   Scudder Global Equity                       
Harris Associates, L.P.           Harris Oakmark Large Cap Value                
                Harris Oakmark Focused Value
Neuberger Berman Management       Neuberger Berman Partners Mid                 
Incorporated                    Cap Value                                   
Franklin Advisers, Inc.           Franklin Templeton Small Cap Growth           
Salomon Brothers Asset            Salomon Brothers U.S.                         
Management Inc.                       Government                                
              Salomon Brothers Strategic
            Opportunities Bond
Massachusetts Financial Services  MFS Investors Trust                           
Company                           MFS Research Managers                         
Davis Selected Advisers, L.P.     Davis Venture Value                           
Loomis Sayles, & Company, L.P.    Loomis Sayles Small Cap                       
Fidelity Management &             FI Structured Equity                          
Research Company                  FI Mid Cap Opportunities                      

(1) State Street Research & Management Company is one of our subsidiaries.      

6 

485BPOS
105th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 105th
MET INVESTORS ADVISORY LLC                                                      

    Met Investors Advisory LLC, a MetLife affiliate, the investment manager of
Met Investors Fund, has overall responsibility for the general management and   
administration of all of the Met Investors Fund Portfolios.                     

   As compensation for its services to the Met Investor Fund Portfolios, Met
Investors Advisory LLC receives monthly compensation at an annual rate of a     
percentage of the average daily net assets of each Portfolio. The investment    
management fees for each Portfolio are:                                         

PORTFOLIO                                         ADVISORY FEE                  
--------------------------------------------------------------------------------
PIMCO Total Return Portfolio            0.50%                                   
PIMCO Innovation Portfolio              0.95%                                   
T. Rowe Price Mid-Cap Growth            0.75%                                   
Portfolio                                                                       
MFS Research International              0.80% of first $200 million of          
Portfolio                               such assets plus                        
                              0.75% of such assets over $200
                               million up to $500 million plus
                              0.70% of such assets over $500
                             million up to $1 billion plus
                            0.65% of such assets over $1
       billion
Harris Oakmark International Portfolio  .85%                                    
Met/AIM Small Cap Growth Portfolio      .90%                                    
Met/AIM Mid Cap Core Equity Portfolio   .75%                                    
Lord Abbett Bond Debenture Portfolio    .60%                                    
Janus Aggressive Growth Portfolio       0.80% of first $100 million of          
                such assets plus
                              0.75% of such assets over $100
                               million up to $500 million plus
                              0.70% of such assets over $500
       million

Met Investors Advisory LLC pays each Met Investors Fund Portfolios'   
investment adviser a fee based on a percentage of the Portfolio's average daily 
net assets. These fees are solely the responsibility of Met Investors Advisory  
LLC.                                                                            

   Massachusetts Financial Services Company is the investment adviser to the
MFS Research International Portfolio. T. Rowe Price Associates, Inc. is the     
investment adviser to the T. Rowe Price Mid-Cap Growth Portfolio. Pacific       
Investment Management Company LLC is the investment adviser to PIMCO Total      
Return Portfolio. PIMCO Equity Advisors LLC is the investment adviser to the    
PIMCO Innovation Portfolio.                                                     

Lord, Abbett & Co. is the investment adviser to the Lord Abbett Bond  
Debenture Portfolio. Harris Associates L.P. is the sub-investment adviser to the
Harris Oakmark International Portfolio. A I M Capital Management, Inc. is the   
investment adviser to the Met/AIM Small Cap Growth and the Met/AIM Mid Cap Core 
Equity Portfolios.                                                              

Janus Capital Management LLC is the investment adviser to the Janus Aggressive  
Growth Portfolio.                                                               

CAPITAL RESEARCH AND MANAGEMENT COMPANY                                         

    As compensation for its services, Capital Research and Management Company,
the American Fund's investment adviser, receives a monthly fee which is accrued 
daily, calculated at the annual rate of: American Funds Global Small            
Capitalization Fund: .80% of the first $600 million of net assets, plus 0.74% on
net assets in excess of $600 million; American Funds Growth Fund: 0.50% of the  
first $600 million of net assets, plus 0.45% on net assets greater than $600    
million but not exceeding $1.0 billion, plus 0.42% on net assets greater than   
$1.0 billion but not exceeding $2.0 billion, plus 0.37% on net assets greater   
than $2.0 billion but not exceeding $3.0 billion, plus 0.35% on net assets      
greater than $3.0 billion but not exceeding $5.0 billion, plus 0.33% on net     
assets greater than $5.0 billion but not exceeding $8.0 billion, plus 0.315% on 
net assets greater than $8.0 billion but not exceeding $13.0 billion, plus 0.30%
on net assets in excess of $13.0 billion; and American Funds Growth-Income Fund:
0.50% of the first $600 million of net assets, plus 0.45% on net assets greater 
than $600 million but not exceeding $1.5 billion, plus 0.40% on net assets      
greater than $1.5 billion but not exceeding $2.5 billion, plus 0.32% on net     
assets greater than $2.5 billion but not exceeding $4.0 billion, plus 0.285% on 
net assets greater than $4.0 billion but not exceeding $6.5 billion, plus 0.256%
on net assets greater than $6.5 billion but not exceeding $10.5 billion, plus   
0.242% on net assets in excess of $10.5 billion.                                

  The Metropolitan Fund, the Met Investors Fund and the American Funds are
more fully described in their respective prospectuses and the Statements of     
Additional Information that the prospectuses refer to. The Metropolitan Fund,   
the Met Investors Fund and the American Funds prospectuses are attached at the  
end of the Preference Plus Select Prospectus.                                   

7 

485BPOS
106th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 106th
PERFORMANCE DATA AND ADVERTISEMENT OF THE SEPARATE ACCOUNT                      

    From time to time we advertise the performance of various Separate Account
investment divisions. For the investment divisions, this performance will be    
stated in terms of either "yield", "change in Accumulation Unit Value," "change 
in Annuity Unit Value" or "average annual total return" or some combination of  
the foregoing. Yield, change in Accumulation Unit Value, change in Annuity Unit 
Value and average annual total return figures are based on historical earnings  
and are not intended to indicate future performance. Yield figures quoted in    
advertisements                                                                  

 8

485BPOS
107th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 107th
state the net income generated by an investment in a particular investment      
division for a thirty-day period or month, which is specified in the            
advertisement, and then expressed as a percentage yield of that investment.     
Yield is calculated by dividing the net investment income per share earned      
during the period by the maximum offering price per share on the last day of the
period, according to this formula 2[(a-b+1)/6/-1], where "a" represents         
---   
cd    
dividends and interest earned during the period; "b" represents expenses accrued
for the period (net of reimbursements); "c" represents the average daily number 
of shares outstanding during the period that were entitled to receive dividends;
and "d" represents the maximum offering price per share on the last day of the  
period. This percentage yield is then compounded semiannually. For the money    
market investment division, we state yield for a seven day period. Change in    
Accumulation Unit Value or Annuity Unit Value ("Non-Standard Performance")      
refers to the comparison between values of accumulation units or annuity units  
over specified periods in which an investment division has been in operation,   
expressed as a percentages and may also be expressed as an annualized figure. In
addition, change in Accumulation Unit Value or Annuity Unit Value may be used to
illustrate performance for a hypothetical investment (such as $10,000) over the 
time period specified. Change in Accumulation Unit Value is expressed by this   
formula [UV\1\/UV\0\ (annualization factor)]-1, where UV\1\ represents the      
current unit value and UV\0\ represents the prior unit value. The annualization 
factor can be either (1/number of years) or (365/number of days). Yield and     
change in Accumulation Unit Value figures do not reflect the possible imposition
of a withdrawal charge for the Deferred Annuities, of up to 9% of the amount    
withdrawn attributable to a purchase payment, which may result in a lower figure
being experienced by the investor. Average annual total return ("Standard       
Performance") differs from the change in Accumulation Unit Value and Annuity    
Unit Value because it assumes a steady rate of return and reflects all expenses 
and applicable withdrawal charges. Average annual total return is calculated by 
finding the average annual compounded rates of return over the 1-, 5-, and      
10-year periods that would equate the initial amount invested to the ending     
redeemable value, according to this formula P(1+T)/n/=ERV, where "P" represents 
a hypothetical initial payment of $1,000; "T" represents average annual total   
return; "n" represents number of years; and "ERV" represents ending redeemable  
value of a hypothetical $1,000 payment made at the beginning of 1-, 5-, or      
10-year periods at the end of the 1-, 5-, or 10- year period (or fractional     
portion). Performance figures will vary among the various classes of the        
Deferred Annuities and the investment divisions as a result of different        
Separate Account charges and withdrawal charges since the investment division   
inception date, which is the date the corresponding Portfolio or predecessor    
Portfolio was first offered under the Separate Account that funds the Deferred  
Annuity.                                                                        

Performance may be calculated based upon historical performance of the
underlying Portfolios of the Metropolitan Fund, Met Investors Fund, and American
Funds and may assume that the Deferred Annuities were in existence prior to     
their inception date. After the inception date, actual accumulation unit or     
annuity unit data is used.                                                      

   Historical performance information should not be relied on as a guarantee
of future performance results.                                                  

  Advertisements regarding the Separate Account may contain comparisons of
hypothetical after-tax returns of currently taxable investments versus returns  
of tax deferred investments. From time to time, the Separate Account may compare
the performance of its investment divisions with the performance of common      
stocks, long-term government bonds, long-term corporate bonds, intermediate-term
government bonds, Treasury Bills, certificates of deposit and savings accounts. 
The Separate Account may use the Consumer Price Index in its advertisements as a
measure of inflation for comparison purposes. From time to time, the Separate   
Account may advertise its performance ranking among similar investments or      
compare its performance to averages as compiled by independent organizations,   
such as Lipper Analytical Services, Inc., Morningstar, Inc., VARDS(R) and The   
Wall Street Journal. The Separate Account may also advertise its performance in 
comparison to appropriate indices, such as the Standard & Poor's 500 Composite  
Stock Price Index, the Standard & Poor's Mid Cap 400 Index, the Standard &      
Poor's Small Cap 600 Index, the Russell 2000(R) Index, the Russell Mid Cap      
Growth Index, the Russell 2500(TM) Growth Index, the Russell(R) Growth Index,   
the Russell 2000(R) Value Index, the Russell 1000(R) Growth Index, the Lehman   
Brothers(R) Aggregate Bond Index, the Lehman Brothers(R) Government/Corporate   
Bond Index, the Merrill Lynch High Yield Bond Index, the Morgan Stanley Capital 
International All Country World Index, the Salomon Smith Barney World Small Cap 
Index and the Morgan Stanley Capital International Europe, Australasia, Far East
Index.                                                                          

  Performance may be shown for certain investment strategies that are made
available under the Deferred Annuities. The first is the "Equity Generator."    

 9

485BPOS
108th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 108th
Under the "Equity Generator," an amount equal to the interest earned during a   
specified interval (i.e., monthly, quarterly) in the Fixed Account is           
transferred to an investment division. The second strategy is the "Index        
Selector/SM/". Under this strategy, once during a specified period (i.e.,       
quarterly, annually) transfers are made among the Lehman Brothers(R) Aggregate  
Bond Index, MetLife Stock Index, Morgan Stanley EAFE(R) Index, Russell 2000(R)  
Index and MetLife Mid Cap Stock Index Divisions and the Fixed Account (or the   
Money Market Investment Division for the C Class Deferred Annuity or a Deferred 
Annuity, when available, with an optional Guaranteed Minimum Income Benefit     
issued in New York State) in order to bring the percentage of the total Account 
Balance in each of these investment divisions and Fixed Account (or Money Market
investment division) back to the current allocation of your choice of one of    
several asset allocation models. The elements which form the basis of the models
are provided by MetLife which may rely on a third party for its expertise in    
creating appropriate allocations. The models are designed to correlate to       
various risk tolerance levels associated with investing and are subject to      
change from time to time.                                                       

An "Equity Generator Return"                                          

10

485BPOS
109th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 109th
or "Index Selector Return" for a model will be calculated by presuming a certain
dollar value at the beginning of a period and comparing this dollar value with  
the dollar value, based on historical performance, at the end of the period,    
expressed as a percentage. The "Return" in each case will assume that no        
withdrawals have occurred other or unrelated transactions. We assume the        
Separate Account charge reflects the Basic Death Benefit. The information does  
not assume the charges for the Earnings Preservation Benefit or Guaranteed      
Minimum Income Benefit. We may also show Index Selector investment strategies   
using other investment divisions for which these strategies are made available  
in the future. If we do so, performance will be calculated in the same manner as
described above, using the appropriate account and/or investment divisions.     

For purposes of presentation of Non-Standard Performance, we may assume the     
Deferred Annuities were in existence prior to the inception date of the         
investment divisions in the Separate Account that funds the Deferred Annuity. In
these cases, we calculate performance based on the historical performance of the
underlying Metropolitan Fund, Met Investors Fund and American Funds Portfolios  
since the Portfolio inception date. We use the actual accumulation unit or      
annuity unit data after the inception date. Any performance data that includes  
all or a portion of the time between the Portfolio inception date and the       
investment division inception date is hypothetical. Hypothetical returns        
indicate what the performance data would have been if the Deferred Annuity had  
been introduced as of the Portfolio inception date.We may also present average  
annual total return calculations which reflect all Separate Account charges and 
applicable withdrawal charges since the Portfolio inception date. We use the    
actual accumulation unit or annuity unit data after the inception date. Any     
performance data that includes all or a portion of the time between the         
Portfolio inception date and the investment division inception date is          
hypothetical. Hypothetical returns indicate what the performance data would have
been if the Deferred Annuities had been introduced as of the Portfolio inception
date.                                                                           

Past performance is no guarantee of future results.                             

We may demonstrate hypothetical future values of Account Balances over a        
specified period based on assumed rates of return (which will not exceed 12% and
which will include an assumption of 0% as well) for the Portfolios. These       
presentations reflect the deduction of the Separate Account charge, the Annual  
Contract Fee, if any, and the weighted average of investment-related charges for
all Portfolios to depict investment-related charges.                            

We may demonstrate hypothetical future values of Account Balances for a specific
Portfolio based upon the assumed rates of return previously described, the      
deduction of the Separate Account charge and the Annual Contract Fee, if any,   
and the investment-related charges for the specific Portfolio to depict         
investment-related charges.                                                     

We may demonstrate the hypothetical historical value of each optional benefit   
for a specified period based on historical net asset values of the Portfolios   
and the annuity purchase rate, if applicable, either for an individual for whom 
the illustration is to be produced or based upon certain assumed factors (e.g., 
male, age 65). These presentations reflect the deduction of the Separate Account
charge and the Annual Contract Fee, if any, the investment-related charge and   
the charge for the optional benefit being illustrated.                          

We may demonstrate hypothetical future values of each optional benefit over a   
specified period based on assumed rates of return (which will not exceed 12%    
and which will include an assumption of 0% as well) for the Portfolios, the     
annuity purchase rate, if applicable, either for an individual for whom the     
illustration is to be produced or based upon certain assumed factors (e.g.,     
male, age 65). These presentations reflect the deduction of the Separate        
Account charge and the Annual Contract Fee, if any, the weighted average of     
investment-related charges for all Portfolios to depict investment-related      
charges and the charge for the optional benefit being illustrated.              

We may demonstrate hypothetical values of income payments over a specified      
period based on historical net asset values of the Portfolios and the           
applicable annuity purchase rate, either for an individual for whom the         
illustration is to be produced or based upon certain assumed factors (e.g.,     
male, age 65). These presentations reflect the deduction of the Separate        
Account charge, the investment-related charge and the Annual Contract Fee, if   
any.                                                                            

We may demonstrate hypothetical future values of income payments over a         
specified period based on assumed rates of return (which will not exceed 12% and
which will include an assumption of 0% as well) for the Portfolios, the         
applicable annuity purchase rate, either for an individual for whom the         
illustration is to be produced or based upon certain assumed factors (e.g.,     
male, age 65). These presentations reflect the deduction of the Separate Account
charge, the Annual Contract Fee, if any, and the weighted average of            
investment-related charges for all Portfolios to depict investment-related      
charges.                                                                        

Any illustration should not be relied on as a guarantee of future results.      

VOTING RIGHTS                                                                   

     In accordance with our view of the present applicable law, we will vote the
shares of each of the Portfolios held by the Separate Account (which are deemed 
attributable to all the Deferred Annuities described in the Prospectus) at      

regular and special meetings of the shareholders of the Portfolio based on      
instructions received from those having the voting interest in corresponding    
investment divisions of the Separate Account. However, if the 1940 Act or any   
rules thereunder should be amended or if the present interpretation thereof     
should change, and as a result we determine that we are permitted to vote the   
shares of the portfolios in our own right, we may elect to do so.               

 Accordingly, you have voting interests under all the Deferred Annuities
described in the Prospectus. The number of shares held in each Separate Account 
investment division deemed attributable to you is determined by dividing the    
value of accumulation or annuity units attributable to you in that investment   
division, if any, by the net asset value of one share in the Portfolio in which 
the assets in that Separate Account investment division are invested. Fractional
votes will be counted. The number of shares for which you have the right to give
instructions will be determined as of the record date for the meeting.          

     Portfolio shares held in each registered separate account of MetLife or any
affiliate that are or are not attributable to life insurance policies or        
annuities (including all the Deferred Annuities described in the Prospectus) and
for which no timely instructions are received will be voted in the same         
proportion as the shares for which voting instruction are received by that      
separate account. Portfolio shares held in the general accounts or unregistered 
separate accounts of MetLife or its affiliates will be voted in the same        
proportion as the aggregate of (i) the shares for which voting instructions are 
received and (ii) the shares that are voted in proportion to such voting        
instructions. However, if we or an affiliate determine that we are permitted to 
vote any such shares, in our own right, we may elect to do so subject to the    
then current interpretation of the 1940 Act or any rules thereunder.            

Qualified retirement plans do not have voting interests through life  
insurance or annuity contracts and do not vote these interests based upon the   
number of shares held in the Separate Account investment division deemed        
attributable to those qualified retirement plans. Shares are held by the plans  
themselves and are voted directly; the instruction process does not apply.      

    You will be entitled to give instructions regarding the votes attributable
to your Deferred Annuity, in your sole discretion.                              

  You may give instructions regarding, among other things, the election of
the board of directors, ratification of the election of independent auditors,   
and the approval of investment and sub-investment managers.                     

Disregarding voting instructions                                                

     MetLife may disregard voting instructions under the following circumstances
(1) to make or refrain from making any change in the investments or investment  
policies for any Portfolio if required by any insurance regulatory authority;   
(2) to refrain from making any change in the investment policies for any        
investment adviser or principal underwriter or any Portfolio which may be       
initiated by those having voting interests or the Metropolitan Fund's or        
Met Investors Fund's or American Funds' boards of directors, provided           
MetLife's disapproval of the change is reasonable and, in the case of a change  
in investment policies or investment manager, based on a good faith             

11

485BPOS
110th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 110th
determination that such change would be contrary to state law or otherwise      
inappropriate in light of the Portfolio's objective and purposes; or (3) to     
enter into or refrain from entering into any advisory agreement or underwriting 
contract, if required by any insurance regulatory authority.                    

In the event that MetLife does disregard voting instructions, a summary of
the action and the reasons for such action will be included in the next         
semiannual report.                                                              

ERISA                                                                           

   If your plan is subject to ERISA (the Employee Retirement Income Security Act
of 1974) and you are married, the income payments, withdrawal provisions, and   
methods of payment of the death benefit under your Deferred Annuity may be      
subject to your spouse's rights as described below.                             

Generally, the spouse must give qualified consent whenever you elect to:  

a. choose income payments other than on a qualified joint and survivor
 annuity basis ("QJSA") (one under which we make payments to you during your
lifetime and then make payments reduced by no more than 50% to your spouse
   for his or her remaining life, if any); or choose to waive the qualified pre-
retirement survivor annuity benefit ("OPSA") (the benefit payable to the  
surviving spouse of a participant who dies with a vested interest in an   
 accrued retirement benefit under the plan before payment of the benefit has
begun);                                                                   

  b. make certain withdrawals under plans for which a qualified consent is
required;                                                                 

c. name someone other than the spouse as your beneficiary;            

d. use your accrued benefit as security for a loan exceeding $5,000.  

Generally, there is no limit to the number of your elections as long as a 
qualified consent is given each time. The consent to waive the QJSA must meet   
certain requirements, including that it be in writing, that it acknowledges the 
identity of the designated beneficiary and the form of benefit selected, dated, 
signed by your spouse, witnessed by a notary public or plan representative, and 
that it be in a form satisfactory to us. The waiver of a QJSA generally must be 
executed during the 90-day period ending on the date on which income payments   
are to commence, or the withdrawal or the loan is to be made, as the case may   
be. If you die before benefits commence, your surviving spouse will be your     
beneficiary unless he or she has given a qualified consent otherwise. The       
qualified consent to waive the QPSA benefit and the beneficiary designation must
be made in writing that acknowledges the designated beneficiary, dated, signed  
by your spouse, witnessed by a notary public or plan representative and in a    
form satisfactory to us. Generally, there is no limit to the number of          
beneficiary designations as long as a qualified consent accompanies each        
designation. The waiver of and the qualified consent for the OPSA benefit       
generally may not be given until the plan year in which you attain age 35. The  
waiver period for the OPSA ends on the date of your death.                      

If the present value of your benefit is worth $5,000 or less, your plan   
generally may provide for distribution of your entire interest in a lump sum    
without spousal consent.                                                        

SIMPLE IRAs                                                                     
ELIGIBILITY AND CONTRIBUTIONS                                                   
To be eligible to establish a SIMPLE IRA plan, your employer must have no more  
than 100 employees and the SIMPLE IRA plan must be the only tax qualified       
retirement plan maintained by your employer. Many of the same tax rules that    
apply to Traditional IRAs also apply to SIMPLE IRAs. However, the contribution  
limits, premature distribution rules, and rules applicable to eligible rollovers
and transfers differ as explained below.                                        

If you are participating in a SIMPLE IRA plan you may generally make            
contributions which are excluded from your gross income under a qualified salary
reduction arrangement on a pre-tax basis of up to the limits in the table shown 
below.                                                                          

Note: The Economic Growth and Tax Relief Reconciliation Act of 2001 ("EGTRRA")  
   increased the maximum annual contribution limits for SIMPLE IRA's and added
    an additional "catch-up" provision for taxpayers age 50 and above. For 2003,
the maximum annual contribution limit will increase to $8,000.00 and    
participants 50 or older may contribute an additional $1,000. The table 

  12

485BPOS
111th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 111th
 below shows the deductible amount for each year including the increase in
the deductible amount for the 50+catch-up, as provided under EGTRRA. The
   contribution limits in excess of $6,000 as provided under EGTRRA are set to
    return to the pre-EGTRRA limits after 2010 unless further action is taken by
Congress.                                                               

For tax years    Contribution limit for      Limit for taxpayers        
beginning in     taxpayers under age 50       age 50 and older          
------------     ----------------------      -------------------        
2003             $ 8,000                      $ 9,000           

2004               9,000                       10,500           

2005              10,000                       12,000           

2006              10,000                       12,500           
and thereafter                                                          

  Note: the Contribution limit above will be adjusted for inflation in years
after 2006.                                                                     

These contributions, not including the age 50+catch up, (as well as any other   
salary reduction contributions to qualified plans of an employer), are also     
subject to the aggregate annual limitation under section 402 (g) of the Internal
Revenue Code as shown below:                                                    

For taxable years                                                             
Beginning in calendar year                   Applicable Dollar Limit            
--------------------------------------------------------------------            

2003                                       $12,000                  
2004                                        13,000                  
2005                                        14,000                  
2006 and thereafter                         15,000                  

You may also make rollovers and direct transfers into your SIMPLE IRA annuity   
contract from another SIMPLE IRA annuity contract or account. No other          
contributions, rollovers or transfers can be made to your SIMPLE IRA.           

You may not make Traditional IRA contributions or Roth IRA contributions to your
SIMPLE IRA. You may not make eligible rollover contributions from other types of
qualified retirement plans.                                                     

ROLLOVERS                                                                       
Tax-free rollovers and direct transfers from a SIMPLE IRA can only be made to   
another SIMPLE IRA annuity or account during the first two years that you       
participate in the SIMPLE IRA plan. After this two year period, tax-free        
rollovers and transfers may be made from your SIMPLE IRA into a Traditional IRA 
annuity or account, as well as into another SIMPLE IRA.                         

In order to be a tax-free rollover from your SIMPLE IRA, the money must         
generally be transferred into the new SIMPLE IRA (or Traditional IRA after two  
years) within 60 days of the distribution.                                      

The rollover is "tax-free" in that no income tax will be due on account of the  
distribution or transfer. The funds rolled over, in addition to any annual      
contributions made to the new IRA and any earnings thereon are ultimately taxed 
when they are distributed from the new IRA                                      

PERFORMANCE DATA                                                                

The following data is illustrative only and should not be relied upon.  

   The following data for average annual return ("Standard Performance") for
the investment divisions, as of December 31, 2002, reflects the deduction of the
Separate Account charge for each class (including the additional Separate       
Account charge for the American Funds Growth, American Funds Growth-Income and  
American Funds Global Small Capitalization Divisions), the Basic Death Benefit, 
Annual Contract Fee, applicable withdrawal charges and the investment-related   
charge since the investment division inception date, which is the date the      
corresponding Portfolio or predecessor Portfolio was first offered under the    
Separate Account that funds the Deferred Annuity. It does not reflect charges   
for the Earnings Preservation Benefit or Guaranteed Minimum Income Benefit.     

   Average annual total return for the investment divisions for the one year
period beginning January 1, 2002 and ending December 31, 2002. For periods 5 and
10 years (or since inception) and year to date as applicable.                   

Also presented is average annual total return performance from the    
Portfolio inception date.                                                       

State Street Money Market Division                                              
Seven Day Period Ending December 31, 2002                                       

As of Investment Division Inception Date: December 31, 1985                     
-----------------------------------------------------------                     

                                                                [Download Table]

                                                                     Inception
                             1 Year      5 Year       10 Year        to Date  
                             ------      ------       -------         ------- 
                                                                              
B Class                      -7.06%      2.17%        2.95%           3.92%   
L Class                      -7.26%      2.61%        2.74%           3.70%   
C Class                      -0.43%      2.45%        2.58%           3.55%   
Bonus Class                  -6.51%      2.01%        2.96%           3.93%   

As of Portfolio Inception Date: August 25, 1983                                 
-----------------------------------------------                                 

                                                                [Download Table]

                                                                      Inception
                             1 Year      5 Year       10 Year         to Date  
                             ------      ------       -------         ---------
                                                                               
B Class                      -7.06%      2.17%        2.95%           4.39%    
L Class                      -7.26%      2.61%        2.74%           4.17%    
C Class                      -0.43%      2.45%        2.58%           4.02%    
Bonus Class                  -6.51%      2.01%        2.96%           4.41%    

13

485BPOS
112th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 112th
                                                        [Enlarge/Download Table]

                                                                                        B Class                                     
                                                                        As of Investment Division Inception Date                    
------------------------------------------------------------------------------------------------------------------------------------
                                                      Investment Division   1 Year      5 Years       10 Years    Inception to Date 
Investment Division                                      Inception Date               (Annualized)  (Annualized)    (Annualized)    
------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                    
Lehman Brothers(R) Aggregate Bond Index Division            11/09/98         1.60%         *             *             4.60%        
PIMCO Total Return Division                                 05/01/01         0.95%         *             *             4.29%        
Salomon Brothers U.S. Government Division                   05/01/01        -0.80%         *             *             2.75%        
State Street Research Bond Income Division                  07/02/90        -0.28%      4.79%         5.88%            6.83%        
Salomon Brothers Strategic Bond Opportunities                                                                                       
  Division                                                  05/01/01         0.92%         *             *             3.38%        
State Street Research Diversified Division                  07/02/90       -21.01%     -0.99%         5.80%            6.58%        
Lord Abbett Bond Debenture Division                         03/03/97        -7.16%     -0.66%            *             0.43%        
American Funds Growth-Income Division                       05/01/01       -25.17%         *             *           -16.81%        
MetLife Stock Index Division                                07/02/90       -28.79%     -2.99%         7.36%            7.82%        
MFS Investors Trust Division                                05/01/01       -26.80%         *             *           -21.83%        
MFS Research Managers Division                              05/01/01       -30.44%         *             *           -28.62%        
State Street Research  Investment Trust Division            07/02/90       -32.28%     -4.76%         5.71%            6.38%        
Davis Venture Value Division                                07/05/00       -23.42%         *             *           -13.53%        
FI Structured Equity Division                               05/01/02            *          *             *           -22.73%        
Harris Oakmark Large Cap Value Division                     11/09/98       -21.34%         *             *            -1.52%        
State Street Research Large Cap Value Division              05/01/02            *          *             *           -25.59%        
American Funds Growth Division                              05/01/01       -30.77%         *             *           -26.33%        
Janus Growth Division                                       05/01/01       -36.39%         *             *           -33.68%        
MET/Putnam Voyager Division                                 07/05/01       -34.81%         *             *           -30.26%        
T. Rowe Price Large Cap Growth Division                     11/09/98       -29.60%         *             *            -4.05%        
MET/AIM Mid Cap Equity Division                             05/01/02            *          *             *           -28.96%        
MetLife Mid Cap Stock Index Division                        07/05/00       -22.01%         *             *            -7.65%        
Harris Oakmark Focused Value Division                       05/01/01       -16.47%         *             *            -3.08%        
Neuberger Berman Partners Mid Cap Value Division            11/09/98       -17.14%         *             *             6.71%        
FI Mid Cap Opportunities Division                           05/01/02            *          *             *           -23.83%        
Janus Mid Cap Division                                      03/03/97       -34.98%     -3.48%            *             1.21%        
T Rowe Price Mid-Cap Growth Division                        05/01/01       -48.65%         *             *           -38.64%        
State Street Research Aggressive Growth Division            07/02/90       -34.65%     -7.33%         1.64%            4.53%        
Loomis Sayles Small Cap Division                            07/05/00       -28.09%         *             *           -15.79%        
Russell 2000(R) Index Division                              11/09/98       -27.11%         *             *            -2.35%        
State Street Research Aurora Division                       07/05/00       -27.95%         *             *             1.19%        
Franklin Templeton Small Cap Growth Division                05/01/01       -33.76%         *             *           -26.74%        
MET/AIM Small Cap Growth Division                           05/01/02            *          *             *           -20.30%        
T. Rowe Price Small Cap Growth Division                     03/03/97       -32.80%     -6.35%            *            -2.70%        
PIMCO Innovation Division                                   05/01/01       -54.64%         *             *           -47.11%        
Scudder Global Equity Division                              03/03/97       -23.02%     -2.04%            *            -0.24%        
MFS Research International Division                         05/01/01       -18.92%         *             *           -17.86%        
Morgan Stanley EAFE(R) Index Division                       11/09/98       -23.51%         *             *            -8.73%        
Putnam International Stock Division                         07/01/91       -24.40%     -5.50%         0.85%            0.18%        
Harris Oakmark International Division                       05/01/02            *          *             *           -21.71%        
American Funds Global Small Cap Division                    05/01/01       -25.82%         *             *           -20.07%        


                                                                                     B Class                                        
                                                                             As of Portfolio Inception Date                         
------------------------------------------------------------------------------------------------------------------------------------
                                                          Portfolio         1 Year      5 Years       10 Years    Inception to Date 
Investment Division                                     Inception Date                (Annualized)  (Annualized)    (Annualized)    
------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                    
Lehman Brothers(R) Aggregate Bond Index Division           11/09/98          1.60%         *             *             4.60%        
PIMCO Total Return Division                                02/12/01          0.95%         *             *             3.87%        
Salomon Brothers U.S. Government Division                  10/31/94         -0.80%      4.37%            *             5.73%        
State Street Research Bond Income Division                 06/24/83         -0.28%      4.79%         5.88%            8.08%        
Salomon Brothers Strategic Bond Opportunities                                                                                       
  Division                                                 10/31/94          0.92%      3.22%            *             6.89%        
State Street Research Diversified Division                 07/25/86        -21.01%     -0.99%         5.80%            7.15%        
Lord Abbett Bond Debenture Division                        03/03/97         -7.16%     -0.66%            *             0.43%        
American Funds Growth-Income Division                      02/08/84        -25.17%      1.30%         8.69%           10.66%        
MetLife Stock Index Division                               05/01/90        -28.79%     -2.99%         7.36%            8.40%        
MFS Investors Trust Division                               04/30/99        -26.80%         *             *           -11.97%        
MFS Research Managers Division                             04/30/99        -30.44%         *             *           -13.21%        
State Street Research Investment Trust Division            06/24/83        -32.28%     -4.76%         5.71%            8.43%        
Davis Venture Value Division                               10/31/94        -23.42%     -0.40%            *            10.06%        
FI Structured Equity Division                              04/30/93        -26.18%     -4.30%            *             6.77%        
Harris Oakmark Large Cap Value Division                    11/09/98        -21.34%         *             *            -1.52%        
State Street Research Large Cap Value Division             05/01/02             *          *             *           -25.59%        
American Funds Growth Division                             02/08/84        -30.77%      4.40%        10.39%           11.94%        
Janus Growth Division                                      05/01/01        -36.39%         *             *           -33.68%        
MET/Putnam Voyager Division                                05/01/00        -34.81%         *             *           -33.96%        
T. Rowe Price Large Cap Growth Division                    11/09/98        -29.60%         *             *            -4.05%        
MET/AIM Mid Cap Equity Division                            10/09/01        -33.33%         *             *           -16.25%        
MetLife Mid Cap Stock Index Division                       07/05/00        -22.01%         *             *            -7.65%        
Harris Oakmark Focused Value Division                      04/30/93        -16.47%      3.72%            *             9.36%        
Neuberger Berman Partners Mid Cap Value Division           11/09/98        -17.14%         *             *             6.71%        
FI Mid Cap Opportunities Division                          05/01/02             *          *             *           -23.83%        
Janus Mid Cap Division                                     03/03/97        -34.98%     -3.48%            *             1.21%        
T Rowe Price Mid-Cap Growth Division                       02/12/01        -48.65%         *             *           -35.78%        
State Street Research Aggressive Growth Division           04/29/88        -34.65%     -7.33%         1.64%            6.41%        
Loomis Sayles Small Cap Division                           05/02/94        -28.09%     -2.65%            *             6.65%        
Russell 2000(R) Index Division                             11/09/98        -27.11%         *             *            -2.35%        
State Street Research Aurora Division                      07/05/00        -27.95%         *             *             1.19%        
Franklin Templeton Small Cap Growth Division               05/01/01        -33.76%         *             *           -26.74%        
MET/AIM Small Cap Growth Division                          10/09/01        -18.06%         *             *            -6.90%        
T. Rowe Price Small Cap Growth Division                    03/03/97        -32.80%     -6.35%            *            -2.70%        
PIMCO Innovation Division                                  02/12/01        -54.64%         *             *           -48.64%        
Scudder Global Equity Division                             03/03/97        -23.02%     -2.04%            *            -0.24%        
MFS Research International Division                        02/12/01        -18.92%         *             *           -17.73%        
Morgan Stanley EAFE(R) Index Division                      11/09/98        -23.51%         *             *            -8.73%        
Putnam International Stock Division                        07/01/91        -24.40%     -5.50%         0.85%            0.18%        
Harris Oakmark International Division                      10/09/01        -24.80%         *             *           -13.50%        
American Funds Global Small Cap Division                   04/30/98        -25.82%         *             *             0.87%        

14

485BPOS
113th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 113th
                                                        [Enlarge/Download Table]

                                                                             C Class                                                
                                                                As of Investment Division Inception Date                            
------------------------------------------------------------------------------------------------------------------------------------
                                                     Ivestment Division      1 Year     5 Years       10 Years     Inception to Date
Investment Division                                    Inception Date                 (Annualized)   (Annualized)     (Annualized)  
------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                    
Lehman Brothers(R)Aggregate Bond Index Division           11/09/98           8.21%          *              *               4.98%    
PIMCO Total Return Division                               05/01/01           7.56%          *              *               7.03%    
Salomon Brothers U.S. Government Division                 05/01/01           5.82%          *              *               5.52%    
State Street Research Bond Income Division                07/02/90           6.34%       5.00%          5.50%              6.45%    
Salomon Brothers Strategic Bond Opportunities Division    05/01/01           7.53%          *              *               6.14%    
State Street Research Diversified Division                07/02/90         -15.37%      -0.62%          5.42%              6.20%    
Lord Abbett Bond Debenture Division                       03/03/97          -0.52%      -0.29%            *                0.52%    
American Funds Growth-Income Division                     05/01/01         -19.83%          *              *             -14.38%    
MetLife Stock Index Division                              07/02/90         -23.71%      -2.64%          6.97%              7.43%    
MFS Investors Trust Division                              05/01/01         -21.58%          *              *             -19.60%    
MFS Research Managers Division                            05/01/01         -25.47%          *              *             -26.34%    
State Street Research Investment Trust Division           07/02/90         -27.44%      -4.42%          5.33%              6.00%    
Davis Venture Value Division                              07/05/00         -17.95%          *              *             -11.97%    
FI Structured Equity Division                             05/01/02              *           *              *             -17.85%    
Harris Oakmark Large Cap Value Division                   11/09/98         -15.72%          *              *              -1.00%    
State Street Research Large Cap Value Division            05/01/02              *           *              *             -20.92%    
American Funds Growth Division                            05/01/01         -25.83%          *              *             -24.27%    
Janus Growth Division                                     05/01/01         -31.85%          *              *             -31.91%    
MET/Putnam Voyager Division                               07/05/01         -30.16%          *              *             -28.06%    
T. Rowe Price Large Cap Growth Division                   11/09/98         -24.58%          *              *              -3.56%    
MET/AIM Mid Cap Equity Division                           05/01/02              *           *              *             -24.54%    
MetLife Mid Cap Stock Index Division                      07/05/00         -16.44%          *              *              -5.94%    
Harris Oakmark Focused Value Division                     05/01/01         -10.51%          *              *              -0.16%    
Neuberger Berman Partners Mid Cap Value Division          11/09/98         -11.22%          *              *               7.04%    
FI Mid Cap Opportunities Division                         05/01/02              *           *              *             -19.03%    
Janus Mid Cap Division                                    03/03/97         -30.34%      -3.14%            *                1.28%    
T Rowe Price Mid-Cap Growth Division                      05/01/01         -44.99%          *              *             -37.06%    
State Street Research Aggressive Growth Division          07/02/90         -29.98%      -7.02%          1.27%              4.16%    
Loomis Sayles Small Cap Division                          07/05/00         -22.95%          *              *             -14.30%    
Russell 2000(R)Index Division                             11/09/98         -21.91%          *              *              -1.83%    
State Street Research Aurora Division                     07/05/00         -22.80%          *              *               2.93%    
Franklin Templeton Small Cap Growth Division              05/01/01         -29.03%          *              *             -24.70%    
MET/AIM Small Cap Growth Division                         05/01/02              *           *              *             -15.25%    
T. Rowe Price Small Cap Growth Division                   03/03/97         -28.01%      -6.02%            *               -2.60%    
PIMCO Innovation Division                                 05/01/01         -51.40%          *              *             -45.87%    
Scudder Global Equity Division                            03/03/97         -17.53%      -1.67%            *               -0.13%    
MFS Research International Division                       05/01/01         -13.13%          *              *             -15.48%    
Morgan Stanley EAFE(R)Index Division                      11/09/98         -18.05%          *              *              -8.27%    
Putnam International Stock Division                       07/01/91         -19.00%      -5.17%          0.49%             -0.18%    
Harris Oakmark International Division                     05/01/02              *           *              *             -16.76%    
American Funds Global Small Cap Division                  05/01/01         -20.53%          *              *             -17.78%    


                                                                            C Class                                                 
                                                                     As of Portfolio Inception Date                                 
----------------------------------------------------------------------------------------------------------------------------------- 
                                                         Portfolio           1 Year      5 Years       10 Years   Inception to Date 
Investment Division                                    Inception Date at              (Annualized)   (Annualized)    (Annualized)   
----------------------------------------------------------------------------------------------------------------------------------- 
                                                                                                                                    
Lehman Brothers(R)Aggregate Bond Index Division           11/09/98           8.21%          *              *               4.98%    
PIMCO Total Return Division                               02/12/01           7.56%          *              *               6.24%    
Salomon Brothers U.S. Government Division                 10/31/94           5.82%       4.60%             *               5.36%    
State Street Research Bond Income Division                06/24/83           6.34%       5.00%          5.50%              7.70%    
Salomon Brothers Strategic Bond Opportunities Division    10/31/94           7.53%       3.47%             *               6.51%    
State Street Research Diversified Division                07/25/86         -15.37%      -0.62%          5.42%              6.76%    
Lord Abbett Bond Debenture Division                       03/03/97          -0.52%      -0.29%             *               0.52%    
American Funds Growth-Income Division                     02/08/84         -19.83%       1.61%          8.30%             10.26%    
MetLife Stock Index Division                              05/01/90         -23.71%      -2.64%          6.97%              8.01%    
MFS Investors Trust Division                              04/30/99         -21.58%          *              *             -11.24%    
MFS Research Managers Division                            04/30/99         -25.47%          *              *             -12.34%    
State Street Research Investment Trust Division           06/24/83         -27.44%      -4.42%          5.33%              8.05%    
Davis Venture Value Division                              10/31/94         -17.95%      -0.04%             *               9.67%    
FI Structured Equity Division                             04/30/93         -20.91%      -3.96%             *               6.39%    
Harris Oakmark Large Cap Value Division                   11/09/98         -15.72%          *              *              -1.00%    
State Street Research Large Cap Value Division            05/01/02              *           *              *             -20.92%    
American Funds Growth Division                            02/08/84         -25.83%       4.62%         10.00%             11.54%    
Janus Growth Division                                     05/01/01         -31.85%          *              *             -31.91%    
MET/Putnam Voyager Division                               05/01/00         -30.16%          *              *             -33.11%    
T. Rowe Price Large Cap Growth Division                   11/09/98         -24.58%          *              *              -3.56%    
MET/AIM Mid Cap Equity Division                           10/09/01         -28.57%          *              *             -12.74%    
MetLife Mid Cap Stock Index Division                      07/05/00         -16.44%          *              *              -5.94%    
Harris Oakmark Focused Value Division                     04/30/93         -10.51%       3.96%             *               8.97%    
Neuberger Berman Partners Mid Cap Value Division          11/09/98         -11.22%          *              *               7.04%    
FI Mid Cap Opportunities Division                         05/01/02              *           *              *             -19.03%    
Janus Mid Cap Division                                    03/03/97         -30.34%      -3.14%             *               1.28%    
T Rowe Price Mid-Cap Growth Division                      02/12/01         -44.99%          *              *             -34.35%    
State Street Research Aggressive Growth Division          04/29/88         -29.98%      -7.02%          1.27%              6.03%    
Loomis Sayles Small Cap Division                          05/02/94         -22.95%      -2.29%             *               6.27%    
Russell 2000(R)Index Division                             11/09/98         -21.91%          *              *              -1.83%    
State Street Research Aurora Division                     07/05/00         -22.80%          *              *               2.93%    
Franklin Templeton Small Cap Growth Division              05/01/01         -29.03%          *              *             -24.70%    
MET/AIM Small Cap Growth Division                         10/09/01         -12.21%          *              *              -2.93%    
T. Rowe Price Small Cap Growth Division                   03/03/97         -28.01%      -6.02%             *              -2.60%    
PIMCO Innovation Division                                 02/12/01         -51.40%          *              *             -47.70%    
Scudder Global Equity Division                            03/03/97         -17.53%      -1.67%             *              -0.13%    
MFS Research International Division                       02/12/01         -13.13%          *              *             -15.67%    
Morgan Stanley EAFE(R)Index Division                      11/09/98         -18.05%          *              *              -8.27%    
Putnam International Stock Division                       07/01/91         -19.00%      -5.17%          0.49%             -0.18%    
Harris Oakmark International Division                     10/09/01         -19.44%          *              *              -9.86%    
American Funds Global Small Cap Division                  04/30/98         -20.53%          *              *               1.25%    

15

485BPOS
114th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 114th
                                                        [Enlarge/Download Table]

                                                                                 L Class                                            
                                                                        As of Investment Division Inception Date                    
----------------------------------------------------------------------------------------------------------------------------------- 
                                                       Investment Division   1 Year     5 Years       10 Years       Inception to   
Investment Division                                       Inception Date              (Annualized)  (Annualized)   Date (Annualized)
----------------------------------------------------------------------------------------------------------------------------------- 
                                                                                                                                    
Lehman Brothers(R) Aggregate Bond Index Division             11/09/98         1.37%         *             *             5.13%       
PIMCO Total Return Division                                  05/01/01         0.72%         *             *             4.07%       
Salomon Brothers U.S. Government Division                    05/01/01        -1.02%         *             *             2.53%       
State Street Research Bond Income Division                   07/02/90        -0.50%      5.16%         5.66%            6.61%       
Salomon Brothers Strategic Bond Opportunities Division       05/01/01         0.70%         *             *             3.16%       
State Street Research Diversified Division                   07/02/90       -21.17%     -0.47%         5.58%            6.36%       
Lord Abbett Bond Debenture Division                          03/03/97        -7.35%     -0.14%            *             0.67%       
American Funds Growth-Income Division                        05/01/01       -25.33%         *             *           -16.97%       
MetLife Stock Index Division                                 07/02/90       -28.94%     -2.50%         7.13%            7.59%       
MFS Investors Trust Division                                 05/01/01       -26.96%         *             *           -21.99%       
MFS Research Managers Division                               05/01/01       -30.59%         *             *           -28.58%       
State Street Research Investment Trust Division              07/02/90       -32.42%     -4.28%         5.49%            6.16%       
Davis Venture Value Division                                 07/05/00       -23.58%         *             *           -13.39%       
FI Structured Equity Division                                05/01/02            *          *             *           -22.83%       
Harris Oakmark Large Cap Value Division                      11/09/98       -21.50%         *             *            -0.85%       
State Street Research Large Cap Value Division               05/01/02            *          *             *           -25.68%       
American Funds Growth Division                               05/01/01       -30.92%         *             *           -26.47%       
Janus Growth Division                                        05/01/01       -36.53%         *             *           -33.82%       
MET/Putnam Voyager Division                                  07/05/01       -34.95%         *             *           -30.40%       
T. Rowe Price Large Cap Growth Division                      11/09/98       -29.75%         *             *            -3.41%       
MET/AIM Mid Cap Equity Division                              05/01/02            *          *             *           -29.05%       
MetLife Mid Cap Stock Index Division                         07/05/00       -22.17%         *             *            -7.49%       
Harris Oakmark Focused Value Division                        05/01/01       -16.65%         *             *            -3.28%       
Neuberger Berman Partners Mid Cap Value Division             11/09/98       -17.31%         *             *             7.20%       
FI Mid Cap Opportunities Division                            05/01/02            *          *             *           -23.92%       
Janus Mid Cap Division                                       03/03/97       -35.12%     -2.99%            *             1.43%       
T Rowe Price Mid-Cap Growth Division                         05/01/01       -48.76%         *             *           -38.76%       
State Street Research Aggressive Growth Division             07/02/90       -34.78%     -6.88%         1.43%            4.31%       
Loomis Sayles Small Cap Division                             07/05/00       -28.24%         *             *           -15.66%       
Russell 2000(R) Index Division                               11/09/98       -27.27%         *             *            -1.69%       
State Street Research Aurora Division                        07/05/00       -28.10%         *             *             1.33%       
Franklin Templeton Small Cap Growth Division                 05/01/01       -33.89%         *             *           -26.89%       
MET/AIM Small Cap Growth Division                            05/01/02            *          *             *           -20.40%       
T. Rowe Price Small Cap Growth Division                      03/03/97       -32.95%     -5.88%            *            -2.45%       
PIMCO Innovation Division                                    05/01/01       -54.73%         *             *           -47.21%       
Scudder Global Equity Division                               03/03/97       -23.18%     -1.53%            *             0.02%       
MFS Research International Division                          05/01/01       -19.09%         *             *           -18.02%       
Morgan Stanley EAFE(R) Index Division                        11/09/98       -23.67%         *             *            -8.14%       
Putnam International Stock Division                          07/01/91       -24.56%     -5.03%         0.64%           -0.03%       
Harris Oakmark International Division                        05/01/02            *          *             *           -21.81%       
American Funds Global Small Cap Division                     05/01/01       -25.98%         *             *           -20.23%       


                                                                                 L Class                                            
                                                                         As of Portfolio Inception Date                             
----------------------------------------------------------------------------------------------------------------------------------- 
                                                           Portfolio         1 Year      5 Years       10 Years   Inception to Date 
Investment Division                                       Inception Date               (Annualized)  (Annualized)    (Annualized)   
----------------------------------------------------------------------------------------------------------------------------------- 
                                                                                                                                    
Lehman Brothers(R) Aggregate Bond Index Division             11/09/98         1.37%         *             *             5.13%       
PIMCO Total Return Division                                  02/12/01         0.72%         *             *             3.65%       
Salomon Brothers U.S. Government Division                    10/31/94        -1.02%      4.75%            *             5.52%       
State Street Research Bond Income Division                   06/24/83        -0.50%      5.16%         5.66%            7.86%       
Salomon Brothers Strategic Bond Opportunities Division       10/31/94         0.70%      3.63%            *             6.67%       
State Street Research Diversified Division                   07/25/86       -21.17%     -0.47%         5.58%            6.92%       
Lord Abbett Bond Debenture Division                          03/03/97        -7.35%     -0.14%            *             0.67%       
American Funds Growth-Income Division                        02/08/84       -25.33%      1.76%         8.46%           10.43%       
MetLife Stock Index Division                                 05/01/90       -28.94%     -2.50%         7.13%            8.17%       
MFS Investors Trust Division                                 04/30/99       -26.96%         *             *           -11.11%       
MFS Research Managers Division                               04/30/99       -30.59%         *             *           -12.27%       
State Street Research Investment Trust Division              06/24/83       -32.42%     -4.28%         5.49%            8.21%       
Davis Venture Value Division                                 10/31/94       -23.58%      0.11%            *             9.84%       
FI Structured Equity Division                                04/30/93       -26.33%     -3.82%            *             6.55%       
Harris Oakmark Large Cap Value Division                      11/09/98       -21.50%         *             *            -0.85%       
State Street Research Large Cap Value Division               05/01/02            *          *             *           -25.68%       
American Funds Growth Division                               02/08/84       -30.92%      4.78%        10.16%           11.71%       
Janus Growth Division                                        05/01/01       -36.53%         *             *           -33.82%       
MET/Putnam Voyager Division                                  05/01/00       -34.95%         *             *           -33.91%       
T. Rowe Price Large Cap Growth Division                      11/09/98       -29.75%         *             *            -3.41%       
MET/AIM Mid Cap Equity Division                              10/09/01       -33.47%         *             *           -16.40%       
MetLife Mid Cap Stock Index Division                         07/05/00       -22.17%         *             *            -7.49%       
Harris Oakmark Focused Value Division                        04/30/93       -16.65%      4.12%            *             9.13%       
Neuberger Berman Partners Mid Cap Value Division             11/09/98       -17.31%         *             *             7.20%       
FI Mid Cap Opportunities Division                            05/01/02            *          *             *           -23.92%       
Janus Mid Cap Division                                       03/03/97       -35.12%     -2.99%            *             1.43%       
T Rowe Price Mid-Cap Growth Division                         02/12/01       -48.76%         *             *           -35.91%       
State Street Research Aggressive Growth Division             04/29/88       -34.78%     -6.88%         1.43%            6.19%       
Loomis Sayles Small Cap Division                             05/02/94       -28.24%     -2.15%            *             6.43%       
Russell 2000(R) Index Division                               11/09/98       -27.27%         *             *            -1.69%       
State Street Research Aurora Division                        07/05/00       -28.10%         *             *             1.33%       
Franklin Templeton Small Cap Growth Division                 05/01/01       -33.89%         *             *           -26.89%       
MET/AIM Small Cap Growth Division                            10/09/01       -18.24%         *             *            -7.07%       
T. Rowe Price Small Cap Growth Division                      03/03/97       -32.95%     -5.88%            *            -2.45%       
PIMCO Innovation Division                                    02/12/01       -54.73%         *             *           -48.74%       
Scudder Global Equity Division                               03/03/97       -23.18%     -1.53%            *             0.02%       
MFS Research International Division                          02/12/01       -19.09%         *             *           -17.89%       
Morgan Stanley EAFE(R) Index Division                        11/09/98       -23.67%         *             *            -8.14%       
Putnam International Stock Division                          07/01/91       -24.56%     -5.03%         0.64%           -0.03%       
Harris Oakmark International Division                        10/09/01       -24.96%         *             *           -13.66%       
American Funds Global Small Cap Division                     04/30/98       -25.98%         *             *             1.40%       

16

485BPOS
115th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 115th
                                                        [Enlarge/Download Table]

                                                                                    Bonus Class                                     
                                                                        As of Investment Division Inception Date                    
------------------------------------------------------------------------------------------------------------------------------------
                                                         Investment Division   1 Year     5 Years      10 Years      Inception to   
Investment Division                                         Inception Date             (Annualized)  (Annualized)  Date (Annualized)
------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                    
Lehman Brothers(R)Aggregate Bond Index Division                11/09/98         2.38%         *             *           4.54%       
PIMCO Total Return Division                                    05/01/01         1.71%         *             *           4.74%       
Salomon Brothers U.S. Government Division                      05/01/01        -0.08%         *             *           3.16%       
State Street Research Bond Income Division                     07/02/90         0.45%      4.67%         5.88%          6.84%       
Salomon Brothers Strategic Bond Opportunities Division         05/01/01         1.69%         *             *           3.81%       
State Street Research  Diversified Division                    07/02/90       -20.73%     -1.20%         5.81%          6.59%       
Lord Abbett Bond Debenture Division                            03/03/97        -6.61%     -0.86%            *           0.36%       
American Funds Growth-Income Division                          05/01/01       -24.91%         *             *         -16.62%       
MetLife Stock Index Division                                   07/02/90       -28.54%     -3.20%         7.36%          7.82%       
MFS Investors Trust Division                                   05/01/01       -26.54%         *             *         -21.65%       
MFS Research Managers Division                                 05/01/01       -30.19%         *             *         -28.09%       
State Street Research  Investment Trust Division               07/02/90       -32.04%     -4.96%         5.72%          6.39%       
Davis Venture Value Division                                   07/05/00       -23.14%         *             *         -13.52%       
FI Structured Equity Division                                  05/01/02            *          *             *         -22.14%       
Harris Oakmark Large Cap Value Division                        11/09/98       -21.06%         *             *          -1.68%       
State Street Research Large Cap Value Division                 05/01/02            *          *             *         -25.02%       
American Funds Growth Division                                 05/01/01       -30.53%         *             *         -26.14%       
Janus Growth Division                                          05/01/01       -36.17%         *             *         -33.49%       
MET/Putnam Voyager Division                                    07/05/01       -34.58%         *             *         -30.02%       
T. Rowe Price Large Cap Growth Division                        11/09/98       -29.35%         *             *          -4.21%       
MET/AIM Mid Cap Equity Division                                05/01/02            *          *             *         -28.41%       
MetLife Mid Cap Stock Index Division                           07/05/00       -21.73%         *             *          -7.65%       
Harris Oakmark Focused Value Division                          05/01/01       -16.18%         *             *          -2.78%       
Neuberger Berman Partners Mid Cap Value Division               11/09/98       -16.84%         *             *           6.68%       
FI Mid Cap Opportunities Division                              05/01/02            *          *             *         -23.25%       
Janus Mid Cap Division                                         03/03/97       -34.75%     -3.69%            *           1.15%       
T Rowe Price Mid-Cap Growth Division                           05/01/01       -48.47%         *             *         -38.44%       
State Street Research Aggressive Growth Division               07/02/90       -34.42%     -7.52%         1.64%          4.54%       
Loomis Sayles Small Cap Division                               07/05/00       -27.83%         *             *         -15.77%       
Russell 2000(R)Index Division                                  11/09/98       -26.86%         *             *          -2.51%       
State Street Research Aurora Division                          07/05/00       -27.69%         *             *           1.30%       
Franklin Templeton Small Cap Growth Division                   05/01/01       -33.52%         *             *         -26.56%       
MET/AIM Small Cap Growth Division                              05/01/02            *          *             *         -19.71%       
T. Rowe Price Small Cap Growth Division                        03/03/97       -32.57%     -6.54%            *          -2.77%       
PIMCO Innovation Division                                      05/01/01       -54.48%         *             *         -46.89%       
Scudder Global Equity Division                                 03/03/97       -22.75%     -2.24%            *          -0.31%       
MFS Research International Division                            05/01/01       -18.63%         *             *         -17.67%       
Morgan Stanley EAFE(R)Index Division                           11/09/98       -23.24%         *             *          -8.86%       
Putnam International Stock Division                            07/01/91       -24.13%     -5.69%         0.86%          0.18%       
Harris Oakmark International Division                          05/01/02            *          *             *         -21.12%       
American Funds Global Small Cap Division                       05/01/01       -25.56%         *             *         -19.89%       


                                                                               Bonus Class                                          
                                                                      As of Portfolio Inception Date                                
------------------------------------------------------------------------------------------------------------------------------------
                                                            Portfolio        1 Year       5 Years       10 Years   Inception to Date
Investment Division                                       Inception Date               (Annualized)   (Annualized)    (Annualized)  
------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                    
Lehman Brothers(R)Aggregate Bond Index Division              11/09/98         2.38%           *             *             4.54%     
PIMCO Total Return Division                                  02/12/01         1.71%           *             *             4.21%     
Salomon Brothers U.S. Government Division                    10/31/94        -0.08%        4.25%            *             5.73%     
State Street Research Bond Income Division                   06/24/83         0.45%        4.67%         5.88%            8.10%     
Salomon Brothers Strategic Bond Opportunities Division       10/31/94         1.69%        3.08%            *             6.89%     
State Street Research  Diversified Division                  07/25/86       -20.73%       -1.20%         5.81%            7.16%     
Lord Abbett Bond Debenture Division                          03/03/97        -6.61%       -0.86%            *             0.36%     
American Funds Growth-Income Division                        02/08/84       -24.91%        1.13%         8.69%           10.67%     
MetLife Stock Index Division                                 05/01/90       -28.54%       -3.20%         7.36%            8.41%     
MFS Investors Trust Division                                 04/30/99       -26.54%           *             *           -12.06%     
MFS Research Managers Division                               04/30/99       -30.19%           *             *           -13.12%     
State Street Research  Investment Trust Division             06/24/83       -32.04%       -4.96%         5.72%            8.45%     
Davis Venture Value Division                                 10/31/94       -23.14%       -0.60%            *            10.06%     
FI Structured Equity Division                                04/30/93       -25.92%       -4.50%            *             6.78%     
Harris Oakmark Large Cap Value Division                      11/09/98       -21.06%           *             *            -1.68%     
State Street Research Large Cap Value Division               05/01/02            *            *             *           -25.02%     
American Funds Growth Division                               02/08/84       -30.53%        4.27%         10.40%          11.96%     
Janus Growth Division                                        05/01/01       -36.17%           *             *           -33.49%     
MET/Putnam Voyager Division                                  05/01/00       -34.58%           *             *           -33.89%     
T. Rowe Price Large Cap Growth Division                      11/09/98       -29.35%           *             *            -4.21%     
MET/AIM Mid Cap Equity Division                              10/09/01       -33.09%           *             *           -15.88%     
MetLife Mid Cap Stock Index Division                         07/05/00       -21.73%           *             *            -7.65%     
Harris Oakmark Focused Value Division                        04/30/93       -16.18%        3.59%            *             9.36%     
Neuberger Berman Partners Mid Cap Value Division             11/09/98       -16.84%           *             *             6.68%     
FI Mid Cap Opportunities Division                            05/01/02            *            *             *           -23.25%     
Janus Mid Cap Division                                       03/03/97       -34.75%       -3.69%            *             1.15%     
T Rowe Price Mid-Cap Growth Division                         02/12/01       -48.47%           *             *           -35.62%     
State Street Research Aggressive Growth Division             04/29/88       -34.42%       -7.52%         1.64%            6.42%     
Loomis Sayles Small Cap Division                             05/02/94       -27.83%       -2.85%            *             6.65%     
Russell 2000(R)Index Division                                11/09/98       -26.86%           *             *            -2.51%     
State Street Research Aurora Division                        07/05/00       -27.69%           *             *             1.30%     
Franklin Templeton Small Cap Growth Division                 05/01/01       -33.52%           *             *           -26.56%     
MET/AIM Small Cap Growth Division                            10/09/01       -17.77%           *             *            -6.51%     
T. Rowe Price Small Cap Growth Division                      03/03/97       -32.57%       -6.54%            *            -2.77%     
PIMCO Innovation Division                                    02/12/01       -54.48%           *             *           -48.45%     
Scudder Global Equity Division                               03/03/97       -22.75%       -2.24%            *            -0.31%     
MFS Research International Division                          02/12/01       -18.63%           *             *           -17.60%     
Morgan Stanley EAFE(R)Index Division                         11/09/98       -23.24%           *             *            -8.86%     
Putnam International Stock Division                          07/01/91       -24.13%       -5.69%         0.86%            0.18%     
Harris Oakmark International Division                        10/09/01       -24.54%           *             *           -13.13%     
American Funds Global Small Cap Division                     04/30/98       -25.56%           *             *             0.71%     

17

485BPOS
116th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 116th
The following data for annual effective rates of return (change in accumulation 
unit annualized) for the investment divisions reflects the deduction of the     
Separate Account charge for each class (including the additional Separate       
Account charge for the American Funds Growth, American Funds Growth-Income and  
American Funds Global Small Capitalization Division), the Basic Death Benefit,  
Annual Contract Fee and the investment-related charge. It does not reflect      
withdrawal charges, the Earnings Preservation Benefit or Guaranteed Minimum     
Income Benefit. The Portfolio inception date is the date the portfolio commenced
operations. Performance includes time periods before the inception date of the  
product from the Portfolio inception date. We use actual performance for periods
after the investment division date.                                             

Annualized changes in accumulation unit value for the investment divisions for  
the one year period beginning January 1, 2002 and ending December 31, 2002. For 
periods 5 and 10 years (or since inception) and year to date as applicable.     

State Street Money Market Division                                              
Seven Day Period Ending December 31, 2002                                       

Portfolio Inception Date: August 25, 1983                                       

                                                       Inception Current
                      1 Year        5 Year     10 Year     to Date   7-Day Yield
                      ------        ------     -------     -------   -----------
B Class               -0.07%        2.82%      2.95%       4.39%     -0.36%     
L Class               -0.28%        2.61%      2.74%       4.18%     -0.57%     
C Class               -0.43%        2.45%      2.58%       4.02%     -0.72%     
Bonus Class           -0.49%        2.38%      2.51%       3.95%     -0.79%     

                                                        [Enlarge/Download Table]

                                                                                B Class                              
---------------------------------------------------------------------------------------------------------------------
                                                              Portfolio                                    5 Years   
Investment Division                                         Inception Date    Year-to-Date     1 Year    (Annualized)
---------------------------------------------------------------------------------------------------------------------
                                                                                                                     
Lehman Brothers(R) Aggregate Bond Index Division               11/09/98          8.60%         8.60%          *      
PIMCO Total Return Division                                    02/12/01          7.95%         7.95%          *      
Salomon Brothers U.S. Government Division                      10/31/94          6.20%         6.20%       4.97%     
State Street Research Bond Income Division                     06/24/83          6.72%         6.72%       5.38%     
Salomon Brothers Strategic Bond Opportunities Division         10/31/94          7.92%         7.92%       3.85%     
State Street Research  Diversified Division                    07/25/86        -15.06%       -15.06%      -0.26%     
Lord Abbett Bond Debenture Division                            03/03/97         -0.17%        -0.17%       0.07%     
American Funds Growth-Income Division                          02/08/84        -19.54%       -19.54%       1.97%     
MetLife Stock Index Division                                   05/01/90        -23.43%       -23.43%      -2.29%     
MFS Investors Trust Division                                   04/30/99        -21.29%       -21.29%          *      
MFS Research Managers Division                                 04/30/99        -25.21%       -25.21%          *      
State Street Research  Investment Trust Division               06/24/83        -27.18%       -27.18%      -4.08%     
Davis Venture Value Division                                   10/31/94        -17.65%       -17.65%       0.32%     
FI Structured Equity Division                                  04/30/93        -20.62%       -20.62%      -3.61%     
Harris Oakmark Large Cap Value Division                        11/09/98        -15.42%       -15.42%          *      
State Street Research Large Cap Value Division                 05/01/02             *             *           *      
American Funds Growth Division                                 02/08/84        -25.56%       -25.56%       5.00%     
Janus Growth Division                                          05/01/01        -31.61%       -31.61%          *      
MET/Putnam Voyager Division                                    05/01/00        -29.91%       -29.91%          *      
T. Rowe Price Large Cap Growth Division                        11/09/98        -24.30%       -24.30%          *      
MET/AIM Mid Cap Equity Division                                10/09/01        -28.31%       -28.31%          *      
MetLife Mid Cap Stock Index Division                           07/05/00        -16.14%       -16.14%          *      
Harris Oakmark Focused Value Division                          04/30/93        -10.19%       -10.19%       4.34%     
Neuberger Berman Partners Mid Cap Value Division               11/09/98        -10.90%       -10.90%          *      
FI Mid Cap Opportunities Division                              05/01/02             *             *           *      
Janus Mid Cap Division                                         03/03/97        -30.09%       -30.09%      -2.79%     
T Rowe Price Mid-Cap Growth Division                           02/12/01        -44.79%       -44.79%          *      
State Street Research Aggressive Growth Division               04/29/88        -29.73%       -29.73%      -6.68%     
Loomis Sayles Small Cap Division                               05/02/94        -22.68%       -22.68%      -1.94%     
Russell 2000(R) Index Division                                 11/09/98        -21.63%       -21.63%          *      
State Street Research Aurora Division                          07/05/00        -22.52%       -22.52%          *      
Franklin Templeton Small Cap Growth Division                   05/01/01        -28.77%       -28.77%          *      
MET/AIM Small Cap Growth Division                              10/09/01        -11.90%       -11.90%          *      
T. Rowe Price Small Cap Growth Division                        03/03/97        -27.75%       -27.75%      -5.69%     
PIMCO Innovation Division                                      02/12/01        -51.22%       -51.22%          *      
Scudder Global Equity Division                                 03/03/97        -17.23%       -17.23%      -1.32%     
MFS Research International Division                            02/12/01        -12.82%       -12.82%          *      
Morgan Stanley EAFE(R) Index Division                          11/09/98        -17.75%       -17.75%          *      
Putnam International Stock Division                            07/01/91        -18.71%       -18.71%      -4.83%     
Harris Oakmark International Division                          10/09/01        -19.14%       -19.14%          *      
American Funds Global Small Cap Division                       04/30/98        -20.24%       -20.24%          *      


------------------------------------------------------------------------------------------------                     
                                                                 10 Years     Inception to Date                      
Investment Division                                            (Annualized)      (Annualized)                        
------------------------------------------------------------------------------------------------                     
                                                                                                                     
Lehman Brothers(R) Aggregate Bond Index Division                    *               5.36%                            
PIMCO Total Return Division                                         *               6.62%                            
Salomon Brothers U.S. Government Division                           *               5.74%                            
State Street Research Bond Income Division                       5.88%              8.09%                            
Salomon Brothers Strategic Bond Opportunities Division              *               6.89%                            
State Street Research  Diversified Division                      5.80%              7.15%                            
Lord Abbett Bond Debenture Division                                 *               0.88%                            
American Funds Growth-Income Division                            8.69%             10.66%                            
MetLife Stock Index Division                                     7.36%              8.40%                            
MFS Investors Trust Division                                        *             -10.92%                            
MFS Research Managers Division                                      *             -12.19%                            
State Street Research  Investment Trust Division                 5.71%              8.44%                            
Davis Venture Value Division                                        *              10.07%                            
FI Structured Equity Division                                       *               6.77%                            
Harris Oakmark Large Cap Value Division                             *              -0.63%                            
State Street Research Large Cap Value Division                      *             -20.72%                            
American Funds Growth Division                                  10.39%             11.94%                            
Janus Growth Division                                               *             -31.66%                            
MET/Putnam Voyager Division                                         *             -32.87%                            
T. Rowe Price Large Cap Growth Division                             *              -3.20%                            
MET/AIM Mid Cap Equity Division                                     *             -12.41%                            
MetLife Mid Cap Stock Index Division                                *              -5.59%                            
Harris Oakmark Focused Value Division                               *               9.36%                            
Neuberger Berman Partners Mid Cap Value Division                    *               7.43%                            
FI Mid Cap Opportunities Division                                   *             -18.82%                            
Janus Mid Cap Division                                              *               1.65%                            
T Rowe Price Mid-Cap Growth Division                                *             -34.11%                            
State Street Research Aggressive Growth Division                 1.64%              6.41%                            
Loomis Sayles Small Cap Division                                    *               6.65%                            
Russell 2000(R) Index Division                                      *              -1.47%                            
State Street Research Aurora Division                               *               3.31%                            
Franklin Templeton Small Cap Growth Division                        *             -24.42%                            
MET/AIM Small Cap Growth Division                                   *              -2.56%                            
T. Rowe Price Small Cap Growth Division                             *              -2.24%                            
PIMCO Innovation Division                                           *             -47.51%                            
Scudder Global Equity Division                                      *               0.23%                            
MFS Research International Division                                 *             -15.36%                            
Morgan Stanley EAFE(R) Index Division                               *              -7.94%                            
Putnam International Stock Division                              0.85%              0.18%                            
Harris Oakmark International Division                               *              -9.52%                            
American Funds Global Small Cap Division                            *               1.61%                            

485BPOS
117th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 117th
                                                        [Enlarge/Download Table]

                                                                               C Class                               
---------------------------------------------------------------------------------------------------------------------
Investment Division                                            Portfolio                                   5 Years   
                                                            Inception Date   Year-to-Date    1 Year     (Annualized) 
---------------------------------------------------------------------------------------------------------------------
                                                                                                                     
Lehman Brothers(R) Aggregate Bond Index Division               11/09/98         8.21%         8.21%          *       
PIMCO Total Return Division                                    02/12/01         7.56%         7.56%          *       
Salomon Brothers U.S. Government Division                      10/31/94         5.82%         5.82%       4.60%      
State Street Research Bond Income Division                     06/24/83         6.34%         6.34%       5.00%      
Salomon Brothers Strategic Bond Opportunities Division         10/31/94         7.53%         7.53%       3.47%      
State Street Research  Diversified Division                    07/25/86       -15.37%       -15.37%      -0.62%      
Lord Abbett Bond Debenture Division                            03/03/97        -0.52%        -0.52%      -0.29%      
American Funds Growth-Income Division                          02/08/84       -19.83%       -19.83%       1.61%      
MetLife Stock Index Division                                   05/01/90       -23.71%       -23.71%      -2.64%      
MFS Investors Trust Division                                   04/30/99       -21.58%       -21.58%          *       
MFS Research Managers Division                                 04/30/99       -25.47%       -25.47%          *       
State Street Research  Investment Trust Division               06/24/83       -27.44%       -27.44%      -4.42%      
Davis Venture Value Division                                   10/31/94       -17.95%       -17.95%      -0.04%      
FI Structured Equity Division                                  04/30/93       -20.91%       -20.91%      -3.96%      
Harris Oakmark Large Cap Value Division                        11/09/98       -15.72%       -15.72%          *       
State Street Research Large Cap Value Division                 05/01/02            *             *           *       
American Funds Growth Division                                 02/08/84       -25.83%       -25.83%       4.62%      
Janus Growth Division                                          05/01/01       -31.85%       -31.85%          *       
MET/Putnam Voyager Division                                    05/01/00       -30.16%       -30.16%          *       
T. Rowe Price Large Cap Growth Division                        11/09/98       -24.58%       -24.58%          *       
MET/AIM Mid Cap Equity Division                                10/09/01       -28.57%       -28.57%          *       
MetLife Mid Cap Stock Index Division                           07/05/00       -16.44%       -16.44%          *       
Harris Oakmark Focused Value Division                          04/30/93       -10.51%       -10.51%       3.96%      
Neuberger Berman Partners Mid Cap Value Division               11/09/98       -11.22%       -11.22%          *       
FI Mid Cap Opportunities Division                              05/01/02            *             *           *       
Janus Mid Cap Division                                         03/03/97       -30.34%       -30.34%      -3.14%      
T Rowe Price Mid-Cap Growth Division                           02/12/01       -44.99%       -44.99%          *       
State Street Research Aggressive Growth Division               04/29/88       -29.98%       -29.98%      -7.02%      
Loomis Sayles Small Cap Division                               05/02/94       -22.95%       -22.95%      -2.29%      
Russell 2000(R) Index Division                                 11/09/98       -21.91%       -21.91%          *       
State Street Research Aurora Division                          07/05/00       -22.80%       -22.80%          *       
Franklin Templeton Small Cap Growth Division                   05/01/01       -29.03%       -29.03%          *       
MET/AIM Small Cap Growth Division                              10/09/01       -12.21%       -12.21%          *       
T. Rowe Price Small Cap Growth Division                        03/03/97       -28.01%       -28.01%      -6.02%      
PIMCO Innovation Division                                      02/12/01       -51.40%       -51.40%          *       
Scudder Global Equity Division                                 03/03/97       -17.53%       -17.53%      -1.67%      
MFS Research International Division                            02/12/01       -13.13%       -13.13%          *       
Morgan Stanley EAFE(R) Index Division                          11/09/98       -18.05%       -18.05%          *       
Putnam International Stock Division                            07/01/91       -19.00%       -19.00%      -5.17%      
Harris Oakmark International Division                          10/09/01       -19.44%       -19.44%          *       
American Funds Global Small Cap Division                       04/30/98       -20.53%       -20.53%          *       


---------------------------------------------------------------------------------------------                        
Investment Division                                           10 Years     Inception to Date                         
                                                            (Annualized)      (Annualized)                           
---------------------------------------------------------------------------------------------                        
                                                                                                                     
Lehman Brothers(R) Aggregate Bond Index Division                 *               4.98%                               
PIMCO Total Return Division                                      *               6.24%                               
Salomon Brothers U.S. Government Division                        *               5.36%                               
State Street Research Bond Income Division                    5.50%              7.70%                               
Salomon Brothers Strategic Bond Opportunities Division           *               6.51%                               
State Street Research  Diversified Division                   5.42%              6.76%                               
Lord Abbett Bond Debenture Division                              *               0.52%                               
American Funds Growth-Income Division                         8.30%             10.26%                               
MetLife Stock Index Division                                  6.97%              8.01%                               
MFS Investors Trust Division                                     *             -11.24%                               
MFS Research Managers Division                                   *             -12.33%                               
State Street Research  Investment Trust Division              5.33%              8.05%                               
Davis Venture Value Division                                     *               9.68%                               
FI Structured Equity Division                                    *               6.39%                               
Harris Oakmark Large Cap Value Division                          *              -0.99%                               
State Street Research Large Cap Value Division                   *             -20.91%                               
American Funds Growth Division                               10.00%             11.54%                               
Janus Growth Division                                            *             -31.90%                               
MET/Putnam Voyager Division                                      *             -33.11%                               
T. Rowe Price Large Cap Growth Division                          *              -3.55%                               
MET/AIM Mid Cap Equity Division                                  *             -12.72%                               
MetLife Mid Cap Stock Index Division                             *              -5.93%                               
Harris Oakmark Focused Value Division                            *               8.97%                               
Neuberger Berman Partners Mid Cap Value Division                 *               7.04%                               
FI Mid Cap Opportunities Division                                *             -19.02%                               
Janus Mid Cap Division                                           *               1.28%                               
T Rowe Price Mid-Cap Growth Division                             *             -34.35%                               
State Street Research Aggressive Growth Division              1.27%              6.03%                               
Loomis Sayles Small Cap Division                                 *               6.27%                               
Russell 2000(R)Index Division                                    *              -1.83%                               
State Street Research Aurora Division                            *               2.94%                               
Franklin Templeton Small Cap Growth Division                     *             -24.70%                               
MET/AIM Small Cap Growth Division                                *              -2.91%                               
T. Rowe Price Small Cap Growth Division                          *              -2.60%                               
PIMCO Innovation Division                                        *             -47.70%                               
Scudder Global Equity Division                                   *              -0.13%                               
MFS Research International Division                              *             -15.67%                               
Morgan Stanley EAFE(R)Index Division                             *              -8.27%                               
Putnam International Stock Division                           0.49%             -0.18%                               
Harris Oakmark International Division                            *              -9.84%                               
American Funds Global Small Cap Division                         *               1.25%                               

19

485BPOS
118th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 118th
                                                        [Enlarge/Download Table]

                                                                   L Class                                             
-----------------------------------------------------------------------------------------------------------------------
                                                                                                            Inception  
Investment Division                                 Portfolio    Year-to           5 Years      10 Years     to Date   
                                                  Inception Date  -Date   1 Year (Annualized) (Annualized) (Annualized)
-----------------------------------------------------------------------------------------------------------------------
                                                                                                                       
Lehman Brothers(R) Aggregate Bond Index Division    11/09/98      8.37%    8.37%       *             *         5.14%   
PIMCO Total Return Division                         02/12/01      7.72%    7.72%       *             *         6.40%   
Salomon Brothers U.S. Government Division           10/31/94      5.98%    5.98%    4.75%            *         5.52%   
State Street Research Bond Income Division          06/24/83      6.50%    6.50%    5.16%         5.66%        7.86%   
Salomon Brothers Strategic Bond Opportunities                                                                          
 Division                                           10/31/94      7.70%    7.70%    3.63%            *         6.67%   
State Street Research Diversified Division          07/25/86    -15.24%  -15.24%   -0.47%         5.58%        6.92%   
Lord Abbett Bond Debenture Division                 03/03/97     -0.38%   -0.38%   -0.14%            *         0.67%   
American Funds Growth-Income Division               02/08/84    -19.71%  -19.71%    1.76%         8.46%       10.43%   
MetLife Stock Index Division                        05/01/90    -23.59%  -23.59%   -2.50%         7.13%        8.18%   
MFS Investors Trust Division                        04/30/99    -21.46%  -21.46%       *             *       -11.10%   
MFS Research Managers Division                      04/30/99    -25.36%  -25.36%       *             *       -12.26%   
State Street Research Investment Trust Division     06/24/83    -27.34%  -27.34%   -4.28%         5.49%        8.21%   
Davis Venture Value Division                        10/31/94    -17.82%  -17.82%    0.11%            *         9.84%   
FI Structured Equity Division                       04/30/93    -20.79%  -20.79%   -3.82%            *         6.55%   
Harris Oakmark Large Cap Value Division             11/09/98    -15.60%  -15.60%       *             *        -0.84%   
State Street Research Large Cap Value Division      05/01/02         *        *        *             *       -20.83%   
American Funds Growth Division                      02/08/84    -25.72%  -25.72%    4.78%        10.16%       11.71%   
Janus Growth Division                               05/01/01    -31.75%  -31.75%       *             *       -31.80%   
MET/Putnam Voyager Division                         05/01/00    -30.05%  -30.05%       *             *       -33.01%   
T. Rowe Price Large Cap Growth Division             11/09/98    -24.46%  -24.46%       *             *        -3.40%   
MET/AIM Mid Cap Equity Division                     10/09/01    -28.46%  -28.46%       *             *       -12.59%   
MetLife Mid Cap Stock Index Division                07/05/00    -16.32%  -16.32%       *             *        -5.79%   
Harris Oakmark Focused Value Division               04/30/93    -10.37%  -10.37%    4.12%            *         9.13%   
Neuberger Berman Partners Mid Cap Value Division    11/09/98    -11.09%  -11.09%       *             *         7.20%   
FI Mid Cap Opportunities Division                   05/01/02         *        *        *             *       -18.94%   
Janus Mid Cap Division                              03/03/97    -30.23%  -30.23%   -2.99%            *         1.43%   
T Rowe Price Mid-Cap Growth Division                02/12/01    -44.90%  -44.90%       *             *       -34.25%   
State Street Research Aggressive Growth Division    04/29/88    -29.88%  -29.88%   -6.88%         1.43%        6.19%   
Loomis Sayles Small Cap Division                    05/02/94    -22.84%  -22.84%   -2.15%            *         6.43%   
Russell 2000(R) Index Division                      11/09/98    -21.79%  -21.79%       *             *        -1.68%   
State Street Research Aurora Division               07/05/00    -22.68%  -22.68%       *             *         3.09%   
Franklin Templeton Small Cap Growth Division        05/01/01    -28.92%  -28.92%       *             *       -24.58%   
MET/AIM Small Cap Growth Division                   10/09/01    -12.08%  -12.08%       *             *        -2.76%   
T. Rowe Price Small Cap Growth Division             03/03/97    -27.90%  -27.90%   -5.88%            *        -2.45%   
PIMCO Innovation Division                           02/12/01    -51.32%  -51.32%       *             *       -47.62%   
Scudder Global Equity Division                      03/03/97    -17.40%  -17.40%   -1.53%            *         0.02%   
MFS Research International Division                 02/12/01    -13.00%  -13.00%       *             *       -15.54%   
Morgan Stanley EAFE(R) Index Division               11/09/98    -17.93%  -17.93%       *             *        -8.13%   
Putnam International Stock Division                 07/01/91    -18.88%  -18.88%   -5.03%         0.64%       -0.03%   
Harris Oakmark International Division               10/09/01    -19.31%  -19.31%       *             *        -9.71%   
American Funds Global Small Cap Division            04/30/98    -20.41%  -20.41%       *             *         1.40%   

20

485BPOS
119th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 119th
 Bonus Class

                                                        [Enlarge/Download Table]

--------------------------------------------------------------------------------------------------------------
Investment Division                                        Portfolio                                5 Years   
                                                        Inception Date  Year-to-Date    1 Year    (Annualized)
--------------------------------------------------------------------------------------------------------------
                                                                                                              
Lehman Brothers(R)Aggregate Bond Index Division            11/09/98         8.13%         8.13%          *    
PIMCO Total Return Division                                02/12/01         7.49%         7.49%          *    
Salomon Brothers U.S. Government Division                  10/31/94         5.75%         5.75%       4.53%   
State Street Research Bond Income Division                 06/24/83         6.27%         6.27%       4.93%   
Salomon Brothers Strategic Bond Opportunities Division     10/31/94         7.46%         7.46%       3.40%   
State Street Research  Diversified Division                07/25/86       -15.43%       -15.43%      -0.69%   
Lord Abbett Bond Debenture Division                        03/03/97        -0.59%        -0.59%      -0.36%   
American Funds Growth-Income Division                      02/08/84       -19.89%       -19.89%       1.54%   
MetLife Stock Index Division                               05/01/90       -23.76%       -23.76%      -2.71%   
MFS Investors Trust Division                               04/30/99       -21.63%       -21.63%          *    
MFS Research Managers Division                             04/30/99       -25.53%       -25.53%          *    
State Street Research  Investment Trust Division           06/24/83       -27.49%       -27.49%      -4.49%   
Davis Venture Value Division                               10/31/94       -18.00%       -18.00%      -0.11%   
FI Structured Equity Division                              04/30/93       -20.96%       -20.96%      -4.03%   
Harris Oakmark Large Cap Value Division                    11/09/98       -15.78%       -15.78%          *    
State Street Research Large Cap Value Division             05/01/02            *             *           *    
American Funds Growth Division                             02/08/84       -25.88%       -25.88%       4.55%   
Janus Growth Division                                      05/01/01       -31.90%       -31.90%          *    
MET/Putnam Voyager Division                                05/01/00       -30.21%       -30.21%          *    
T. Rowe Price Large Cap Growth Division                    11/09/98       -24.63%       -24.63%          *    
MET/AIM Mid Cap Equity Division                            10/09/01       -28.62%       -28.62%          *    
MetLife Mid Cap Stock Index Division                       07/05/00       -16.50%       -16.50%          *    
Harris Oakmark Focused Value Division                      04/30/93       -10.57%       -10.57%       3.89%   
Neuberger Berman Partners Mid Cap Value Division           11/09/98       -11.28%       -11.28%          *    
FI Mid Cap Opportunities Division                          05/01/02            *             *           *    
Janus Mid Cap Division                                     03/03/97       -30.39%       -30.39%      -3.20%   
T Rowe Price Mid-Cap Growth Division                       02/12/01       -45.02%       -45.02%          *    
State Street Research Aggressive Growth Division           04/29/88       -30.03%       -30.03%      -7.08%   
Loomis Sayles Small Cap Division                           05/02/94       -23.01%       -23.01%      -2.36%   
Russell 2000(R)Index Division                              11/09/98       -21.97%       -21.97%          *    
State Street Research Aurora Division                      07/05/00       -22.85%       -22.85%          *    
Franklin Templeton Small Cap Growth Division               05/01/01       -29.07%       -29.07%          *    
MET/AIM Small Cap Growth Division                          10/09/01       -12.27%       -12.27%          *    
T. Rowe Price Small Cap Growth Division                    03/03/97       -28.06%       -28.06%      -6.09%   
PIMCO Innovation Division                                  02/12/01       -51.43%       -51.43%          *    
Scudder Global Equity Division                             03/03/97       -17.58%       -17.58%      -1.74%   
MFS Research International Division                        02/12/01       -13.19%       -13.19%          *    
Morgan Stanley EAFE(R)Index Division                       11/09/98       -18.11%       -18.11%          *    
Putnam International Stock Division                        07/01/91       -19.06%       -19.06%      -5.23%   
Harris Oakmark International Division                      10/09/01       -19.49%       -19.49%          *    
American Funds Global Small Cap Division                   04/30/98       -20.58%       -20.58%          *    


--------------------------------------------------------------------------------------------                  
Investment Division                                         10 Years      Inception to Date                   
                                                          (Annualized)       (Annualized)                     
--------------------------------------------------------------------------------------------                  
                                                                                                              
Lehman Brothers(R)Aggregate Bond Index Division                  *               4.91%                        
PIMCO Total Return Division                                      *               6.17%                        
Salomon Brothers U.S. Government Division                        *               5.29%                        
State Street Research Bond Income Division                    5.42%              7.62%                        
Salomon Brothers Strategic Bond Opportunities Division           *               6.44%                        
State Street Research  Diversified Division                   5.35%              6.69%                        
Lord Abbett Bond Debenture Division                              *               0.45%                        
American Funds Growth-Income Division                         8.23%             10.18%                        
MetLife Stock Index Division                                  6.90%              7.94%                        
MFS Investors Trust Division                                     *             -11.30%                        
MFS Research Managers Division                                   *             -12.37%                        
State Street Research  Investment Trust Division              5.26%              7.97%                        
Davis Venture Value Division                                     *               9.60%                        
FI Structured Equity Division                                    *               6.32%                        
Harris Oakmark Large Cap Value Division                          *              -1.06%                        
State Street Research Large Cap Value Division                   *             -20.95%                        
American Funds Growth Division                                9.92%             11.46%                        
Janus Growth Division                                            *             -31.95%                        
MET/Putnam Voyager Division                                      *             -33.16%                        
T. Rowe Price Large Cap Growth Division                          *              -3.61%                        
MET/AIM Mid Cap Equity Division                                  *             -12.78%                        
MetLife Mid Cap Stock Index Division                             *              -5.99%                        
Harris Oakmark Focused Value Division                            *               8.89%                        
Neuberger Berman Partners Mid Cap Value Division                 *               6.97%                        
FI Mid Cap Opportunities Division                                *             -19.06%                        
Janus Mid Cap Division                                           *               1.21%                        
T Rowe Price Mid-Cap Growth Division                             *             -34.40%                        
State Street Research Aggressive Growth Division              1.20%              5.96%                        
Loomis Sayles Small Cap Division                                 *               6.20%                        
Russell 2000(R)Index Division                                    *              -1.89%                        
State Street Research Aurora Division                            *               2.86%                        
Franklin Templeton Small Cap Growth Division                     *             -24.75%                        
MET/AIM Small Cap Growth Division                                *              -2.97%                        
T. Rowe Price Small Cap Growth Division                          *              -2.66%                        
PIMCO Innovation Division                                        *             -47.74%                        
Scudder Global Equity Division                                   *              -0.20%                        
MFS Research International Division                              *             -15.72%                        
Morgan Stanley EAFE(R)Index Division                             *              -8.33%                        
Putnam International Stock Division                           0.42%             -0.25%                        
Harris Oakmark International Division                            *              -9.90%                        
American Funds Global Small Cap Division                         *               1.18%                        

21

485BPOS
120th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 120th
Accumulation Unit Values Tables                                                 

These tables show fluctuations in the Accumulation Unit Values for the
possible mixes offered in the Deferred Annuity for each investment division from
year-end to year-end (except the highest possible and lowest possible mix which 
are in the prospectus). The information in these tables has been derived from   
the Separate Account's full financial statements or other reports (such as the  
annual report). The Guaranteed Minimum Income Benefit charge is made by         
canceling accumulation units and, therefore, this charge is not reflected in    
the Accumulation Unit Value. However, purchasing this option will result in a   
higher charge.                                                                  

                                                        [Enlarge/Download Table]

                                Table A                                                                              
                      C Class and Basic Death Benefit                                                                

                                                                                                       Number of     
                                                                  Beginning of Year   End of Year  Accumulation Units
                                                                     Accumulation    Accumulation    End of Year (In 
                                                             Year     Unit Value      Unit Value       Thousands)    
                                                                                                                     

Salomon Brothers U.S. Government Division/(c)/               2002       $14.51          $15.36            77.3942    
                                                             2001        14.25           14.51                  0    

Lehman Brothers Aggregate Bond Index Division/(c)/           2002        11.32           12.25            96.3369    
                                                             2001        11.11           11.32                  0    

State Street Research Bond Income Division/(a)/              2002        40.27           42.83            10.2593    
                                                             2001        39.23           40.27                  0    

PIMCO Total Return Division/(c)/                             2002        10.42           11.21            55.2510    
                                                             2001        10.24           10.42                  0    

Salomon Brothers Strategic Bond Opportunities Division/(c)/  2002        15.61           16.79            12.2335    
                                                             2001        15.32           15.61                  0    

State Street Research Diversified Division/(c)/              2002        34.84           29.49            10.7653    
                                                             2001        35.78           34.84                  0    

MetLife Stock Index Division/(c)/                            2002        34.95           26.67            42.2621    
                                                             2001        37.05           34.95                  0    

American Funds Growth-Income Division/(c)/                   2002        79.47           63.74             6.5416    
                                                             2001        82.85           79.47                  0    

Harris Oakmark Large Cap Value Division/(c)/                 2002        11.40            9.61            33.3480    
                                                             2001        11.58           11.40                  0    

T. Rowe Price Large Cap Growth Division/(c)/                 2002        11.43            8.62             4.8255    
                                                             2001        11.58           11.43                  0    

MFS Investors Trust Division/(c)/                            2002         8.24            6.46             0.3980    
                                                             2001         8.67            8.24                  0    

State Street Research Investment Trust Division/(c)/         2002        62.87           45.63             2.2849    
                                                             2001        67.43           62.87                  0    

MFS Research Managers Division/(c)/                          2002         8.28            6.18             1.5090    
                                                             2001         9.34            8.28                  0    

American Funds Growth Division/(c)/                          2002       106.85           79.27             4.6474    
                                                             2001       118.09          106.85                  0    

Janus Growth Division/(c)(e)/                                2002         7.73            5.27             4.9487    
                                                             2001         8.86            7.73                  0    

Davis Venture Value Division/(c)/                            2002        25.98           21.32             2.4630    
                                                             2001        26.73           25.98                  0    

Met/Putnam Voyager Division/(c)/                             2002         4.90            3.43             1.4909    
                                                             2001         5.38            4.90                  0    

MetLife Mid Cap Stock Index Division/(c)/                    2002        10.28            8.60            36.5669    
                                                             2001        10.40           10.28                  0    

Neuberger Berman Partners Mid Cap Value Division/(c)/        2002        14.95           13.28            10.0132    
                                                             2001        15.27           14.95                  0    

22

485BPOS
121st Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 121st
                                                        [Enlarge/Download Table]

                                                                                                     Number of    
                                                               Beginning of Year   End of Year  Accumulation Units
                                                                  Accumulation    Accumulation    End of Year (In 
                                                          Year     Unit Value      Unit Value       Thousands)    
                                                                                                                  
Harris Oakmark Focused Value Division/(c)/                2002       $25.72          $23.02                11.9658
                                                          2001        24.89           25.72                      0

T. Rowe Price Mid-Cap Growth Division/(c)/                2002         8.24            4.53                 5.9869
                                                          2001         8.63            8.24                      0

Janus Mid Cap Division/(c)/                               2002        15.49           10.79                 3.5579
                                                          2001        18.01           15.49                      0

State Street Research Aggressive Growth Division/(c)/     2002        33.88           23.73                  .4746
                                                          2001        35.96           33.88                      0

Lord Abbett Bond Debenture Division/(b)/                  2002        10.38           10.33                 5.8690
                                                          2001        10.65           10.38                      0

Russell 2000 Index Division/(c)/                          2002        11.88            9.28                22.3719
                                                          2001        11.95           11.88                      0

T. Rowe Price Small Cap Growth Division/(c)/              2002        11.94            8.60                 4.6379
                                                          2001        12.14           11.94                      0

Loomis Sayles Small Cap Division/(c)/                     2002        22.04           16.99                  .7845
                                                          2001        22.54           22.04                      0

State Street Research Aurora Division/(c)/                2002        13.93           10.76                30.1732
                                                          2001        14.18           13.93                      0

Franklin Templeton Small Cap Growth Division/(c)/         2002         8.78            6.24                 3.9242
                                                          2001         9.17            8.78                      0

PIMCO Innovation Division/(c)/                            2002         6.08            2.96                 1.9228
                                                          2001         7.04            6.08                      0

Scudder Global Equity Division/(c)/                       2002        12.05            9.94                 1.5475
                                                          2001        12.79           12.05                      0

Morgan Stanley EAFE Index Division/(c)/                   2002         8.54            7.00                54.8367
                                                          2001         9.32            8.54                      0

MFS Research International Division/(c)/                  2002         8.36            7.26                 2.2111
                                                          2001         9.01            8.36                      0

Putnam International Stock Division/(c)/                  2002        11.16            9.04                 4.4099
                                                          2001        11.95           11.16                      0

American Funds Global Small Capitalization Division/(c)/  2002        13.35           10.61                 5.4264
                                                          2001        13.69           13.35                      0

FI Structured Equity Division/(d)/                        2002        22.23           18.27                  .7341

State Street Research Large Cap Value Division/(d)/       2002        10.00            7.91                 1.8688

MET/AIM Mid Cap Core Equity Division/(d)/                 2002        11.38            9.65                  .9500

FI Mid Cap Opportunities Division/(d)/                    2002        10.00            8.10                 1.1436

MET/AIM Small Cap Growth Division/(d)/                    2002        11.22            8.47                  .4163

Harris Oakmark International Division/(d)/                2002        10.90            8.81                  .5579

23

485BPOS
122nd Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 122nd
Table B 
 L Class and Basic Death Benefit

                                                        [Enlarge/Download Table]

                                                                                                        Number of    
                                                                   Beginning of Year  End of Year  Accumulation Units
                                                                     Accumulation    Accumulation    End of Year (In 
                                                             Year     Unit Value      Unit Value       Thousands)    
                                                                                                                     

Salomon Brothers U.S. Government Division/(c)/               2002      $ 14.67         $ 15.55                53.8267
                                                             2001        14.39           14.67                      0

Lehman Brothers Aggregate Bond Index Division/(c)/           2002        11.37           12.33                71.9711
                                                             2001        11.16           11.37                      0

State Street Research Bond Income Division/(a)/              2002        41.40           44.11                16.0685
                                                             2001        40.31           41.40                      0

PIMCO Total Return Division/(c)/                             2002        10.44           11.25                57.2251
                                                             2001        10.25           10.44                      0

Salomon Brothers Strategic Bond Opportunities Division/(c)/  2002        15.77           16.99                19.1803
                                                             2001        15.48           15.77                      0

State Street Research Diversified Division/(c)/              2002        35.66           30.23                 4.1236
                                                             2001        36.59           35.66                      0

MetLife Stock Index Division/(c)/                            2002        35.57           27.19                26.4595
                                                             2001        37.69           35.57                      0

American Funds Growth-Income Division/(c)/                   2002        81.64           65.57                 6.2536
                                                             2001        85.05           81.64                      0

Harris Oakmark Large Cap Value Division/(c)/                 2002        11.45            9.67                20.7963
                                                             2001        11.62           11.45                      0

T. Rowe Price Large Cap Growth Division/(c)/                 2002        11.48            8.68                 4.1826
                                                             2001        11.62           11.48                      0

MFS Investors Trust Division/(c)/                            2002         8.27            6.50                  .3834
                                                             2001         8.70            8.27                      0

State Street Research Investment Trust Division/(c)/         2002        64.64           46.99                 2.1849
                                                             2001        69.28           64.64                      0

MFS Research Managers Division/(c)/                          2002         8.29            6.19                  .8573
                                                             2001         9.38            8.29                      0

American Funds Growth Division/(c)/                          2002       109.75           81.56                 3.3739
                                                             2001       121.23          109.75                      0

Janus Growth Division/(c)(e)/                                2002         7.74            5.29                 1.7337
                                                             2001         8.87            7.74                      0

Davis Venture Value Division/(c)/                            2002        26.26           21.59                 5.4053
                                                             2001        27.00           26.26                      0

Met/Putnam Voyager Division/(c)/                             2002         4.92            3.44                 3.3578
                                                             2001         5.39            4.92                      0

MetLife Mid Cap Stock Index Division/(c)/                    2002        10.31            8.63                19.7205
                                                             2001        10.42           10.31                      0

Neuberger Berman Partners Mid Cap Value Division/(c)/        2002        15.02           13.36                 7.1390
                                                             2001        15.34           15.02                      0

24

485BPOS
123rd Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 123rd
                                                        [Enlarge/Download Table]

                                                                                                     Number of    
                                                                Beginning of Year  End of Year  Accumulation Units
                                                                  Accumulation    Accumulation    End of Year (In 
                                                          Year     Unit Value      Unit Value       Thousands)    
                                                                                                                  
Harris Oakmark Focused Value Division/(c)/                2002       $26.05          $23.36                18.4414
                                                          2001        25.20           26.05                      0

T. Rowe Price Mid-Cap Growth Division/(c)/                2002         8.25            4.55                 8.1470
                                                          2001         8.64            8.25                      0

Janus Mid Cap Division/(c)/                               2002        15.60           10.89                 9.9028
                                                          2001        18.13           15.60                      0

State Street Research Aggressive Growth Division/(c)/     2002        34.58           24.26                      0
                                                          2001        36.68           34.58                      0

Lord Abbett Bond Debenture Division/(b)/                  2002        10.45           10.42                 6.9667
                                                          2001        10.72           10.45                      0

Russell 2000 Index Division/(c)/                          2002        11.93            9.34                12.6555
                                                          2001        12.00           11.93                      0

T. Rowe Price Small Cap Growth Division/(c)/              2002        12.02            8.67                12.9283
                                                          2001        12.22           12.02                      0

Loomis Sayles Small Cap Division/(c)/                     2002        22.30           17.21                  .8649
                                                          2001        22.79           22.30                      0

State Street Research Aurora Division/(c)/                2002        13.96           10.80                35.8576
                                                          2001        14.20           13.96                      0

Franklin Templeton Small Cap Growth Division/(c)/         2002         8.79            6.25                 3.1215
                                                          2001         9.17            8.79                      0

PIMCO Innovation Division/(c)/                            2002         6.09            2.96                 7.4587
                                                          2001         7.05            6.09                      0

Scudder Global Equity Division/(c)/                       2002        12.14           10.03                 5.1655
                                                          2001        12.88           12.14                      0

Morgan Stanley EAFE Index Division/(c)/                   2002         8.59            7.05                27.4308
                                                          2001         9.36            8.59                      0

MFS Research International Division/(c)/                  2002         8.37            7.28                 2.7238
                                                          2001         9.02            8.37                      0

Putnam International Stock Division/(c)/                  2002        11.34            9.20                12.8267
                                                          2001        12.14           11.34                      0

American Funds Global Small Capitalization Division/(c)/  2002        13.43           10.69                 8.9967
                                                          2001        13.75           13.43                      0

FI Structured Equity Division/(d)/                        2002        22.53           18.54                  .1920

State Street Research Large Cap Value Division/(d)/       2002        10.00            7.92                 1.5784

MET/AIM Mid Cap Core Equity Division/(d)/                 2002        11.39            9.67                      0

FI Mid Cap Opportunities Division/(d)/                    2002        10.00            8.11                  .7704

MET/AIM Small Cap Growth Division/(d)/                    2002        11.23            8.48                  .7137

Harris Oakmark International Division/(d)/                2002        10.90            8.83                      0


25

485BPOS
124th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 124th
Table C 
 Bonus Class and Basic Death Benefit

                                                        [Enlarge/Download Table]

                                                                                                        Number of    
                                                                  Beginning of Year   End of Year  Accumulation Units
                                                                     Accumulation    Accumulation    End of Year (In 
                                                             Year     Unit Value      Unit Value       Thousands)    
                                                                                                                     
Salomon Brothers U.S. Government Division/(c)/               2002      $ 14.46          $15.30               107.9798
                                                             2001        14.20           14.46                      0

Lehman Brothers Aggregate Bond Index Division/(c)/           2002        11.30           12.23               329.0273
                                                             2001        11.10           11.30                      0

State Street Research Bond Income Division/(a)/              2002        39.90           42.42                32.6000
                                                             2001        38.87           39.90                      0

PIMCO Total Return Division/(c)/                             2002        10.42           11.20               160.6733
                                                             2001        10.24           10.42                      0

Salomon Brothers Strategic Bond Opportunities Division/(c)/  2002        15.55           16.72                32.8406
                                                             2001        15.27           15.55                      0

State Street Research Diversified Division/(c)/              2002        34.57           29.25                33.7967
                                                             2001        35.51           34.57                      0

MetLife Stock Index Division/(c)/                            2002        34.75           26.51               111.4548
                                                             2001        36.85           34.75                      0

American Funds Growth-Income Division/(c)/                   2002        78.76           63.14                26.1473
                                                             2001        82.13           78.76                      0

Harris Oakmark Large Cap Value Division/(c)/                 2002        11.38            9.59               171.9327
                                                             2001        11.56           11.38                      0

T. Rowe Price Large Cap Growth Division/(c)/                 2002        11.41            8.61                30.6065
                                                             2001        11.56           11.41                      0

MFS Investors Trust Division/(c)/                            2002         8.23            6.45                45.0430
                                                             2001         8.66            8.23                      0

State Street Research Investment Trust Division/(c)/         2002        62.29           45.19                17.2847
                                                             2001        66.82           62.29                      0

MFS Research Managers Division/(c)/                          2002         8.28            6.17                 3.7455
                                                             2001         9.33            8.28                      0

American Funds Growth Division/(c)/                          2002       105.89           78.53                21.4693
                                                             2001       117.06          105.89                      0

Janus Growth Division/(c)(e)/                                2002         7.73            5.27                36.4712
                                                             2001         8.86            7.73                      0

Davis Venture Value Division/(c)/                            2002        25.89           21.24                11.9609
                                                             2001        26.64           25.89                      0

Met/Putnam Voyager Division/(c)/                             2002         4.90            3.42                29.9537
                                                             2001         5.37            4.90                      0

MetLife Mid Cap Stock Index Division/(c)/                    2002        10.28            8.59               103.1313
                                                             2001        10.40           10.28                      0

Neuberger Berman Partners Mid Cap Value Division/(c)/        2002        14.93           13.25                45.0842
                                                             2001        15.25           14.93                      0

26

485BPOS
125th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 125th
                                                        [Enlarge/Download Table]

                                                                                                     Number of    
                                                               Beginning of Year   End of Year  Accumulation Units
                                                                  Accumulation    Accumulation    End of Year (In 
                                                          Year     Unit Value      Unit Value       Thousands)    
                                                                                                                  
Harris Oakmark Focused Value Division/(c)/                2002       $25.60          $22.91                65.2014
                                                          2001        24.79           25.60                      0

T. Rowe Price Mid-Cap Growth Division/(c)/                2002         8.24            4.53                46.2619
                                                          2001         8.63            8.24                      0

Janus Mid Cap Division/(c)/                               2002        15.45           10.76                39.2010
                                                          2001        17.97           15.45                      0

State Street Research Aggressive Growth Division/(c)/     2002        33.65           23.56                 6.3452
                                                          2001        35.72           33.65                      0

Lord Abbett Bond Debenture Division/(b)/                  2002        10.35           10.30                28.9026
                                                          2001        10.63           10.35                      0

Russell 2000 Index Division/(c)/                          2002        11.86            9.26                74.7739
                                                          2001        11.93           11.86                      0

T. Rowe Price Small Cap Growth Division/(c)/              2002        11.91            8.57                12.4231
                                                          2001        12.11           11.91                      0

Loomis Sayles Small Cap Division/(c)/                     2002        21.96           16.92                 6.0929
                                                          2001        22.46           21.96                      0

State Street Research Aurora Division/(c)/                2002        13.92           10.74               168.7874
                                                          2001        14.17           13.92                      0

Franklin Templeton Small Cap Growth Division/(c)/         2002         8.78            6.23                36.1090
                                                          2001         9.17            8.78                      0

PIMCO Innovation Division/(c)/                            2002         6.08            2.95                65.5437
                                                          2001         7.04            6.08                      0

Scudder Global Equity Division/(c)/                       2002        12.02            9.91                35.6196
                                                          2001        12.77           12.02                      0

Morgan Stanley EAFE Index Division/(c)/                   2002         8.53            6.99               165.1581
                                                          2001         9.31            8.53                      0

MFS Research International Division/(c)/                  2002         8.35            7.26                13.5427
                                                          2001         9.01            8.35                      0

Putnam International Stock Division/(c)/                  2002        11.10            8.99                22.5358
                                                          2001        11.89           11.10                      0

American Funds Global Small Capitalization Division/(c)/  2002        13.33           10.59                32.1846
                                                          2001        13.66           13.33                      0

FI Structured Equity Division/(d)/                        2002        22.13           18.18                 1.6134

State Street Research Large Cap Value Division/(d)/       2002        10.00            7.91                10.0948

MET/AIM Mid Cap Core Equity Division/(d)/                 2002        11.38            9.64                 6.3801

FI Mid Cap Opportunities Division/(d)/                    2002        10.00            8.10                 8.5035

MET/AIM Small Cap Growth Division/(d)/                    2002        11.21            8.46                 8.4738

Harris Oakmark International Division/(d)/                2002        10.90            8.81                 4.3947

27

485BPOS
126th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 126th
Table D 
B Class and Annual Step-Up Death Benefit

                                                        [Enlarge/Download Table]


                                                                                                       Number of     
                                                                  Beginning of Year   End of Year  Accumulation Units
                                                                     Accumulation    Accumulation   End of Year (In  
                                                             Year     Unit Value      Unit Value       Thousands)    
                                                                                                                     
Salomon Brothers U.S. Government Division/(c)/               2002      $ 14.83         $ 15.75          187.8153     
                                                             2001        14.54           14.83                 0     

Lehman Brothers Aggregate Bond Index Division/(c)/           2002        11.42           12.40          312.4582     
                                                             2001        11.20           11.42           6258.22     

State Street Research Bond Income Division/(a)/              2002        42.57           45.42           48.4629     
                                                             2001        41.42           42.57           1903.48     

PIMCO Total Return Division/(c)/                             2002        10.45           11.28          348.3545     
                                                             2001        10.25           10.45            904.19     

Salomon Brothers Strategic Bond Opportunities Division/(c)/  2002        15.94           17.20           63.3457     
                                                             2001        15.63           15.94                 0     

State Street Research Diversified Division/(c)/              2002        36.49           30.99           52.8699     
                                                             2001        37.43           36.49                 0     

MetLife Stock Index Division/(c)/                            2002        36.20           27.71          119.4537     
                                                             2001        38.33           36.20                 0     

American Funds Growth-Income Division/(c)/                   2002        83.86           67.45           34.4318     
                                                             2001        87.32           83.86             67.89     

Harris Oakmark Large Cap Value Division/(c)/                 2002        11.51            9.73          250.0609     
                                                             2001        11.67           11.51           6882.86     

T. Rowe Price Large Cap Growth Division/(c)/                 2002        11.54            8.73           31.2911     
                                                             2001        11.67           11.54                 0     

MFS Investors Trust Division/(c)/                            2002         8.31            6.54            21.502     
                                                             2001         8.73            8.31                 0     

State Street Research Investment Trust Division/(c)/         2002        66.46           48.38           22.0987     
                                                             2001        71.19           66.46                 0     

MFS Research Managers Division/(c)/                          2002         8.31            6.21            7.2161     
                                                             2001         9.41            8.31                 0     

American Funds Growth Division/(c)/                          2002       112.74           83.90           24.9383     
                                                             2001       124.46          112.74             49.70     

Janus Growth Division/(c)(e)/                                2002         7.75            5.30           35.2502     
                                                             2001         8.87            7.75            742.38     

Davis Venture Value Division/(c)/                            2002        26.54           21.85           26.0367     
                                                             2001        27.27           26.54                 0     

Met/Putnam Voyager Division/(c)/                             2002         4.93            3.45           45.5048     
                                                             2001         5.40            4.93                 0     

MetLife Mid Cap Stock Index Division/(c)/                    2002        10.33            8.66          172.2108     
                                                             2001        10.44           10.33                 0     

Neuberger Berman Partners Mid Cap Value Division/(c)/        2002        15.09           13.44           61.7745     
                                                             2001        15.40           15.09                 0     

28

485BPOS
127th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 127th
                                                        [Enlarge/Download Table]

                                                                                                      Number of    
                                                                Beginning of Year  End of Year   Accumulation Units
                                                                   Accumulation    Accumulation   End of Year (In  
                                                          Year      Unit Value      Unit Value        Thousands)   
                                                                                                                   
Harris Oakmark Focused Value Division/(c)/                2002       $26.39           $23.70              100.258  
                                                          2001        25.51            26.39              2998.79  

T. Rowe Price Mid-Cap Growth Division/(c)/                2002         8.26             4.56              82.6621  
                                                          2001         8.64             8.26               703.39  

Janus Mid Cap Division/(c)/                               2002        15.71            10.98              27.9733  
                                                          2001        18.25            15.71                    0  

State Street Research Aggressive Growth Division/(c)/     2002        35.30            24.80               7.3789  
                                                          2001        37.42            35.30                    0  

Lord Abbett Bond Debenture Division/(b)/                  2002        10.53            10.51              25.5283  
                                                          2001        10.79            10.53                    0  

Russell 2000 Index Division/(c)/                          2002        11.99             9.40              88.3595  
                                                          2001        12.05            11.99                    0  

T. Rowe Price Small Cap Growth Division/(c)/              2002        12.11             8.75              20.2661  
                                                          2001        12.30            12.11                    0  

Loomis Sayles Small Cap Division/(c)/                     2002        22.56            17.44               8.8451  
                                                          2001        23.04            22.56                    0  

State Street Research Aurora Division/(c)/                2002        13.99            10.84             238.1783  
                                                          2001        14.23            13.99               417.32  

Franklin Templeton Small Cap Growth Division/(c)/         2002         8.80             6.27              42.1483  
                                                          2001         9.18             8.80               640.84  

PIMCO Innovation Division/(c)/                            2002         6.10             2.97              26.8958  
                                                          2001         7.05             6.10                    0  

Scudder Global Equity Division/(c)/                       2002        12.23            10.12              25.6921  
                                                          2001        12.97            12.23                    0  

Morgan Stanley EAFE Index Division/(c)/                   2002         8.63             7.09             185.0284  
                                                          2001         9.40             8.63                    0  

MFS Research International Division/(c)/                  2002         8.38             7.30              43.7086  
                                                          2001         9.02             8.38               684.90  

Putnam International Stock Division/(c)/                  2002        11.52             9.37              43.5944  
                                                          2001        12.33            11.52                    0  

American Funds Global Small Capitalization Division/(c)/  2002        13.50            10.76              42.8167  
                                                          2001        13.82            13.50                    0  

FI Structured Equity Division/(d)/                        2002        22.84            18.81               1.2259  

State Street Research Large Cap Value Division/(d)/       2002        10.00             7.93              25.9739  

MET/AIM Mid Cap Core Equity Division/(d)/                 2002        11.40             9.68              27.3618  

FI Mid Cap Opportunities Division/(d)/                    2002        10.00             8.12              11.7984  

MET/AIM Small Cap Growth Division/(d)/                    2002        11.23             8.50              11.9895  

Harris Oakmark International Division/(d)/                2002        10.91             8.84               1.3756  

29

485BPOS
128th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 128th
 Table E

C Class and Annual Step-Up Death Benefit

                                                        [Enlarge/Download Table]

                                                                                                        Number of    
                                                                  Beginning of Year   End of Year  Accumulation Units
                                                                     Accumulation    Accumulation    End of Year (In 
                                                             Year     Unit Value      Unit Value       Thousands)    
                                                                                                                     
Salomon Brothers U.S. Government Division/(c)/               2002      $ 14.41         $ 15.24                 4.8024
                                                             2001        14.15           14.41                      0

Lehman Brothers Aggregate Bond Index Division/(c)/           2002        11.28           12.20                56.2385
                                                             2001        11.08           11.28                      0

State Street Research Bond Income Division/(a)/              2002        39.53           42.01                  .9558
                                                             2001        38.52           39.53                      0

PIMCO Total Return Division/(c)/                             2002        10.41           11.19                28.8909
                                                             2001        10.24           10.41                      0

Salomon Brothers Strategic Bond Opportunities Division/(c)/  2002        15.49           16.65                 1.1787
                                                             2001        15.22           15.49                      0

State Street Research Diversified Division/(c)/              2002        34.30           29.01                 7.2603
                                                             2001        35.24           34.30                      0

MetLife Stock Index Division/(c)/                            2002        34.54           26.34                27.5884
                                                             2001        36.64           34.54                      0

American Funds Growth-Income Division/(c)/                   2002        78.06           62.54                 2.0003
                                                             2001        81.42           78.06                      0

Harris Oakmark Large Cap Value Division/(c)/                 2002        11.36            9.57                14.3594
                                                             2001        11.55           11.36                      0

T. Rowe Price Large Cap Growth Division/(c)/                 2002        11.39            8.59                 5.2246
                                                             2001        11.54           11.39                      0

MFS Investors Trust Division/(c)/                            2002         8.22            6.44                      0
                                                             2001         8.65            8.22                      0

State Street Research Investment Trust Division/(c)/         2002        61.71           44.75                  .4694
                                                             2001        66.22           61.71                      0

MFS Research Managers Division/(c)/                          2002         8.28            6.16                      0
                                                             2001         9.32            8.28                      0

American Funds Growth Division/(c)/                          2002       104.95           77.79                 1.4761
                                                             2001       116.05          104.95                      0

Janus Growth Division/(c)(e)/                                2002         7.73            5.26                      0
                                                             2001         8.86            7.73                      0

Davis Venture Value Division/(c)/                            2002        25.79           21.15                 5.6927
                                                             2001        26.55           25.79                      0

Met/Putnam Voyager Division/(c)/                             2002         4.89            3.42                      0
                                                             2001         5.37            4.89                      0

MetLife Mid Cap Stock Index Division/(c)/                    2002        10.27            8.58                35.0083
                                                             2001        10.39           10.27                      0

Neuberger Berman Partners Mid Cap Value Division/(c)/        2002        14.90           13.22                 1.2696
                                                             2001        15.23           14.90                      0

30

485BPOS
129th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 129th
                                                        [Enlarge/Download Table]

                                                                                                     Number of    
                                                                Beginning of Year  End of Year  Accumulation Units
                                                                  Accumulation    Accumulation    End of Year (In 
                                                          Year     Unit Value      Unit Value       Thousands)    
                                                                                                                  
Harris Oakmark Focused Value Division/(c)/                2002       $25.49          $22.80                 2.6824
                                                          2001        24.68           25.49                      0

T. Rowe Price Mid-Cap Growth Division/(c)/                2002         8.23            4.53                 2.6175
                                                          2001         8.63            8.23                      0

Janus Mid Cap Division/(c)/                               2002        15.41           10.73                 2.1070
                                                          2001        17.93           15.41                      0

State Street Research Aggressive Growth Division/(c)/     2002        33.42           23.38                  .0897
                                                          2001        35.48           33.42                      0

Lord Abbett Bond Debenture Division/(b)/                  2002        10.33           10.27                 8.5282
                                                          2001        10.60           10.33                      0

Russell 2000 Index Division/(c)/                          2002        11.84            9.24                20.9262
                                                          2001        11.91           11.84                      0

T. Rowe Price Small Cap Growth Division/(c)/              2002        11.88            8.55                  .5741
                                                          2001        12.09           11.88                      0

Loomis Sayles Small Cap Division/(c)/                     2002        21.87           16.84                  .6185
                                                          2001        22.38           21.87                      0

State Street Research Aurora Division/(c)/                2002        13.91           10.73                 5.0982
                                                          2001        14.17           13.91                      0

Franklin Templeton Small Cap Growth Division/(c)/         2002         8.78            6.23                 1.3512
                                                          2001         9.17            8.78                      0

PIMCO Innovation Division/(c)/                            2002         6.08            2.95                 3.9086
                                                          2001         7.04            6.08                      0

Scudder Global Equity Division/(c)/                       2002        11.99            9.89                 3.1175
                                                          2001        12.74           11.99                      0

Morgan Stanley EAFE Index Division/(c)/                   2002         8.52            6.98                66.5096
                                                          2001         9.30            8.52                      0

MFS Research International Division/(c)/                  2002         8.35            7.25                 2.0193
                                                          2001         9.01            8.35                      0

Putnam International Stock Division/(c)/                  2002        11.04            8.94                 2.8017
                                                          2001        11.83           11.04                      0

American Funds Global Small Capitalization Division/(c)/  2002        13.30           10.57                 1.9921
                                                          2001        13.64           13.30                      0

FI Structured Equity Division/(d)/                        2002        22.03           18.09                      0

State Street Research Large Cap Value Division/(d)/       2002        10.00            7.91                      0

MET/AIM Mid Cap Core Equity Division/(d)/                 2002        11.37            9.64                 1.2238

FI Mid Cap Opportunities Division/(d)/                    2002        10.00            8.09                 1.3271

MET/AIM Small Cap Growth Division/(d)/                    2002        11.21            8.46                      0

Harris Oakmark International Division/(d)/                2002        10.90            8.80                      0


31

485BPOS
130th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 130th
 Table F

L Class and Annual Step-Up Death Benefit

                                                        [Enlarge/Download Table]

                                                                                                        Number of    
                                                                  Beginning of Year   End of Year  Accumulation Units
                                                                    Accumulation     Accumulation   End of Year (In  
                                                             Year    Unit Value       Unit Value       Thousands)    
                                                                                                                     
Salomon Brothers U.S. Government Division/(c)/               2002     $ 14.57          $ 15.43          17.9512      
                                                             2001       14.29            14.57                0      

Lehman Brothers Aggregate Bond Index Division/(c)/           2002       11.34            12.28          26.6919      
                                                             2001       11.13            11.34                0      

State Street Research Bond Income Division/(a)/              2002       40.64            43.25            .7157      
                                                             2001       39.58            40.64                0      

PIMCO Total Return Division/(c)/                             2002       10.43            11.22          25.4830      
                                                             2001       10.24            10.43                0      

Salomon Brothers Strategic Bond Opportunities Division/(c)/  2002       15.66            16.86           3.5089      
                                                             2001       15.37            15.66                0      

State Street Research Diversified Division/(c)/              2002       35.11            29.74           1.9810      
                                                             2001       36.05            35.11                0      

MetLife Stock Index Division/(c)/                            2002       35.15            26.84           3.7990      
                                                             2001       37.26            35.15                0      

American Funds Growth-Income Division/(c)/                   2002       80.19            64.34            .5651      
                                                             2001       83.58            80.19                0      

Harris Oakmark Large Cap Value Division/(c)/                 2002       11.42             9.63          10.3636      
                                                             2001       11.59            11.42                0      

T. Rowe Price Large Cap Growth Division/(c)/                 2002       11.45             8.64            .4744      
                                                             2001       11.59            11.45                0      

MFS Investors Trust Division/(c)/                            2002        8.25             6.48           6.3556      
                                                             2001        8.68             8.25                0      

State Street Research Investment Trust Division/(c)/         2002       63.45            46.08           2.2377      
                                                             2001       68.04            63.45                0      

MFS Research Managers Division/(c)/                          2002        8.29             6.18                0      
                                                             2001        9.36             8.29                0      

American Funds Growth Division/(c)/                          2002      107.81            80.03            .6869      
                                                             2001      119.13           107.81                0      

Janus Growth Division/(c)(e)/                                2002        7.74             5.28           2.5692      
                                                             2001        8.86             7.74                0      

Davis Venture Value Division/(c)/                            2002       26.07            21.41            .1599      
                                                             2001       26.82            26.07                0      

Met/Putnam Voyager Division/(c)/                             2002        4.91             3.43                0      
                                                             2001        5.38             4.91                0      

MetLife Mid Cap Stock Index Division/(c)/                    2002       10.29             8.61           6.8508      
                                                             2001       10.41            10.29                0      

Neuberger Berman Partners Mid Cap Value Division/(c)/        2002       14.97            13.30           1.6857      
                                                             2001       15.30            14.97                0      

32

485BPOS
131st Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 131st
                                                        [Enlarge/Download Table]

                                                                                                      Number of    
                                                                Beginning of Year  End of Year   Accumulation Units
                                                                  Accumulation     Accumulation    End of Year (In 
                                                          Year     Unit Value       Unit Value         Thousands)  
                                                                                                                   
Harris Oakmark Focused Value Division/(c)/                2002       $25.83           $23.13               5.8743  
                                                          2001        24.99            25.83                    0  

T. Rowe Price Mid-Cap Growth Division/(c)/                2002         8.24             4.54               2.2677  
                                                          2001         8.63             8.24                    0  

Janus Mid Cap Division/(c)/                               2002        15.52            10.82               4.1704  
                                                          2001        18.05            15.52                    0  

State Street Research Aggressive Growth Division/(c)/     2002        34.11            23.90                    0  
                                                          2001        36.20            34.11                    0  

Lord Abbett Bond Debenture Division/(b)/                  2002        10.40            10.36                .6428  
                                                          2001        10.67            10.40                    0  

Russell 2000 Index Division/(c)/                          2002        11.90             9.30               7.0394  
                                                          2001        11.96            11.90                    0  

T. Rowe Price Small Cap Growth Division/(c)/              2002        11.97             8.62                .9515  
                                                          2001        12.17            11.97                    0  

Loomis Sayles Small Cap Division/(c)/                     2002        22.13            17.06                .1388  
                                                          2001        22.62            22.13                    0  

State Street Research Aurora Division/(c)/                2002        13.94            10.77              11.2493  
                                                          2001        14.19            13.94                    0  

Franklin Templeton Small Cap Growth Division/(c)/         2002         8.79             6.24               1.9107  
                                                          2001         9.17             8.79                    0  

PIMCO Innovation Division/(c)/                            2002         6.08             2.96                .4666  
                                                          2001         7.05             6.08                    0  

Scudder Global Equity Division/(c)/                       2002        12.08             9.97               1.7168  
                                                          2001        12.82            12.08                    0  

Morgan Stanley EAFE Index Division/(c)/                   2002         8.56             7.02               4.5056  
                                                          2001         9.33             8.56                    0  

MFS Research International Division/(c)/                  2002         8.36             7.27               1.7974  
                                                          2001         9.01             8.36                    0  

Putnam International Stock Division/(c)/                  2002        11.22             9.10               1.2212  
                                                          2001        12.01            11.22                    0  

American Funds Global Small Capitalization Division/(c)/  2002        13.38            10.64                .1239  
                                                          2001        13.71            13.38                    0  

FI Structured Equity Division/(d)/                        2002        22.33            18.36                .2224  

State Street Research Large Cap Value Division/(d)/       2002        10.00             7.91                .4378  

MET/AIM Mid Cap Core Equity Division/(d)/                 2002        11.38             9.65               1.2673  

FI Mid Cap Opportunities Division/(d)/                    2002        10.00             8.10                .2323  

MET/AIM Small Cap Growth Division/(d)/                    2002        11.22             8.47                .6276  

Harris Oakmark International Division/(d)/                2002        10.90             8.82                    0  

33

485BPOS
132nd Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 132nd
Table G 

Bonus Class and Annual Step-Up Death Benefit

                                                        [Enlarge/Download Table]

                                                                                                         Number of    
                                                                   Beginning of Year   End of Year  Accumulation Units
                                                                     Accumulation     Accumulation    End of Year (In 
                                                             Year      Unit Value       Unit Value        Thousands)  
                                                                                                                      

Salomon Brothers U.S. Government Division/(c)/                 2002    $ 14.36          $ 15.18           25.4912     
                                                               2001      14.10            14.36                 0     

Lehman Brothers Aggregate Bond Index Division/(c)/             2002      11.26            12.17          101.5100     
                                                               2001      11.07            11.26           1381.25     

State Street Research Bond Income Division/(a)/                2002      39.16            41.60           18.1142     
                                                               2001      38.18            39.16                 0     

PIMCO Total Return Division/(c)/                               2002      10.41            11.18           82.5682     
                                                               2001      10.23            10.41           1402.65     

Salomon Brothers Strategic Bond Opportunities Division/(c)/    2002      15.44            16.58            5.9342     
                                                               2001      15.16            15.44           1007.54     

State Street Research Diversified Division/(c)/                2002      34.04            28.77            9.0894     
                                                               2001      34.97            34.04           216.634     

MetLife Stock Index Division/(c)/                              2002      34.34            26.17           41.0631     
                                                               2001      36.43            34.34           671.674     

American Funds Growth-Income Division/(c)/                     2002      77.37            61.95           11.8380     
                                                               2001      80.71            77.37                 0     

Harris Oakmark Large Cap Value Division/(c)/                   2002      11.35             9.55           81.5499     
                                                               2001      11.53            11.35          3045.153     

T. Rowe Price Large Cap Growth Division/(c)/                   2002      11.37             8.57           30.7135     
                                                               2001      11.53            11.37            987.77     

MFS Investors Trust Division/(c)/                              2002       8.21             6.43            2.4095     
                                                               2001       8.64             8.21                 0     

State Street Research Investment Trust Division/(c)/           2002      61.14            44.31            5.9368     
                                                               2001      65.62            61.14           182.433     

MFS Research Managers Division/(c)/                            2002       8.27             6.16             .5884     
                                                               2001       9.31             8.27                 0     

American Funds Growth Division/(c)/                            2002     104.01            77.06           11.8896     
                                                               2001     115.03           104.01                 0     

Janus Growth Division/(c)(e)/                                  2002       7.73             5.26           22.4503     
                                                               2001       8.86             7.73                 0     

Davis Venture Value Division/(c)/                              2002      25.70            21.06            8.3374     
                                                               2001      26.46            25.70          1042.477     

Met/Putnam Voyager Division/(c)/                               2002       4.89             3.41           35.3362     
                                                               2001       5.37             4.89                 0     

MetLife Mid Cap Stock Index Division/(c)/                      2002      10.26             8.56           44.4186     
                                                               2001      10.39            10.26                 0     

Neuberger Berman Partners Mid Cap Value Division/(c)/          2002      14.88            13.19           21.6578     
                                                               2001      15.21            14.88                 0     

34

485BPOS
133rd Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 133rd
                                                        [Enlarge/Download Table]

                                                                                                   Number of     
                                                               Beginning of Year  End of Year  Accumulation Units
                                                                 Accumulation    Accumulation    End of Year (In 
                                                          Year    Unit Value      Unit Value       Thousands)    
                                                                                                                 

Harris Oakmark Focused Value Division/(c)/                2002      $25.38         $22.69           27.5545      
                                                          2001       24.58          25.38          1263.388      

T. Rowe Price Mid-Cap Growth Division/(c)/                2002        8.23           4.52           58.8051      
                                                          2001        8.63           8.23           1377.56      

Janus Mid Cap Division/(c)/                               2002       15.37          10.70            5.7044      
                                                          2001       17.89          15.37           502.323      

State Street Research Aggressive Growth Division/(c)/     2002       33.19          23.21            5.5312      
                                                          2001       35.25          33.19                 0      

Lord Abbett Bond Debenture Division/(b)/                  2002       10.30          10.24           13.7272      
                                                          2001       10.58          10.30                 0      

Russell 2000 Index Division/(c)/                          2002       11.82           9.22           32.0521      
                                                          2001       11.90          11.82           717.553      

T. Rowe Price Small Cap Growth Division/(c)/              2002       11.85           8.52           15.5712      
                                                          2001       12.06          11.85                 0      

Loomis Sayles Small Cap Division/(c)/                     2002       21.79          16.77            1.4823      
                                                          2001       22.30          21.79                 0      

State Street Research Aurora Division/(c)/                2002       13.90          10.72           69.1721      
                                                          2001       14.16          13.90          1912.924      

Franklin Templeton Small Cap Growth Division/(c)/         2002        8.77           6.22           15.7831      
                                                          2001        9.17           8.77                 0      

PIMCO Innovation Division/(c)/                            2002        6.07           2.95           14.2335      
                                                          2001        7.04           6.07                 0      

Scudder Global Equity Division/(c)/                       2002       11.97           9.86           10.5677      
                                                          2001       12.71          11.97          3102.037      

Morgan Stanley EAFE Index Division/(c)/                   2002        8.50           6.96           72.4205      
                                                          2001        9.28           8.50           1841.45      

MFS Research International Division/(c)/                  2002        8.35           7.24           25.1598      
                                                          2001        9.00           8.35                 0      

Putnam International Stock Division/(c)/                  2002       10.98           8.89           17.1172      
                                                          2001       11.77          10.98           1297.52      

American Funds Global Small Capitalization Division/(c)/  2002       13.28          10.54           21.8801      
                                                          2001       13.62          13.28                 0      

FI Structured Equity Division/(d)/                        2002       21.93          18.01             .3321      

State Street Research Large Cap Value Division/(d)/       2002       10.00           7.90            1.3133      

MET/AIM Mid Cap Core Equity Division/(d)/                 2002       11.37           9.63            1.0071      

FI Mid Cap Opportunities Division/(d)/                    2002       10.00           8.09             7.909      

MET/AIM Small Cap Growth Division/(d)/                    2002       11.21           8.45                 0      

Harris Oakmark International Division/(d)/                2002       10.90           8.79            8.3362      


35

485BPOS
134th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 134th
Table H 
 B Class, Greater % Annual Step-Up or 5% Annual Increase Death Benefit and
 Earnings Preservation Benefit

                                                        [Enlarge/Download Table]

                                                                                                        Number of    
                                                                   Beginning of Year  End of Year  Accumulation Units
                                                                     Accumulation    Accumulation    End of Year (In 
                                                             Year     Unit Value      Unit Value       Thousands)    
                                                                                                                     
Salomon Brothers U.S. Government Division/(c)/               2002      $ 14.41         $ 15.24           40.8433     
                                                             2001        14.15           14.41                 0     

Lehman Brothers Aggregate Bond Index Division/(c)/           2002        11.28           12.20           67.3765     
                                                             2001        11.08           11.28                 0     

State Street Research Bond Income Division/(a)/              2002        39.53           42.01            5.0479     
                                                             2001        38.52           39.53                 0     

PIMCO Total Return Division/(c)/                             2002        10.41           11.19           24.3557     
                                                             2001        10.24           10.41                 0     

Salomon Brothers Strategic Bond Opportunities Division/(c)/  2002        15.49           16.65            5.3254     
                                                             2001        15.22           15.49                 0     

State Street Research Diversified Division/(c)/              2002        34.30           29.01            6.7256     
                                                             2001        35.24           34.30                 0     

MetLife Stock Index Division/(c)/                            2002        34.54           26.34           24.3548     
                                                             2001        36.64           34.54                 0     

American Funds Growth-Income Division/(c)/                   2002        78.06           62.54            4.2089     
                                                             2001        81.42           78.06                 0     

Harris Oakmark Large Cap Value Division/(c)/                 2002        11.36            9.57           21.8161     
                                                             2001        11.55           11.36                 0     

T. Rowe Price Large Cap Growth Division/(c)/                 2002        11.39            8.59            1.3293     
                                                             2001        11.54           11.39                 0     

MFS Investors Trust Division/(c)/                            2002         8.22            6.44            2.1971     
                                                             2001         8.65            8.22                 0     

State Street Research Investment Trust Division/(c)/         2002        61.71           44.75            2.2493     
                                                             2001        66.22           61.71                 0     

MFS Research Managers Division/(c)/                          2002         8.28            6.16            2.2977     
                                                             2001         9.32            8.28                 0     

American Funds Growth Division/(c)/                          2002       104.95           77.79            3.6154     
                                                             2001       116.05          104.95                 0     

Janus Growth Division/(c)(e)/                                2002         7.73            5.26            2.4299     
                                                             2001         8.86            7.73                 0     

Davis Venture Value Division/(c)/                            2002        25.79           21.15            6.5738     
                                                             2001        26.55           25.79                 0     

Met/Putnam Voyager Division/(c)/                             2002         4.89            3.42           24.6710     
                                                             2001         5.37            4.89                 0     

MetLife Mid Cap Stock Index Division/(c)/                    2002        10.27            8.58           31.6918     
                                                             2001        10.39           10.27                 0     

Neuberger Berman Partners Mid Cap Value Division/(c)/        2002        14.90           13.22            4.0389     
                                                             2001        15.23           14.90                 0     


36

485BPOS
135th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 135th
                                                        [Enlarge/Download Table]


                                                                                                    Number of     
                                                               Beginning of year  End of Year   Accumulation Units
                                                                  Accumulation    Accumulation    End of Year (In 
                                                          Year     Unit Value     Unit Value       Thousands)     
                                                                                                                  
Harris Oakmark Focused Value Division/(c)/                2002       $25.49         $22.80                12.0509 
                                                          2001        24.68          25.49                      0 

T. Rowe Price Mid-Cap Growth Division/(c)/                2002         8.23           4.53                 8.9181 
                                                          2001         8.63           8.23                      0 

Janus Mid Cap Division/(c)/                               2002        15.41          10.73                 7.4684 
                                                          2001        17.93          15.41                      0 

State Street Research Aggressive Growth Division/(c)/     2002        33.42          23.38                  .7047 
                                                          2001        35.48          33.42                      0 

Lord Abbett Bond Debenture Division/(b)/                  2002        10.33          10.27                 4.6843 
                                                          2001        10.60          10.33                      0 

Russell 2000 Index Division/(c)/                          2002        11.84           9.24                18.9750 
                                                          2001        11.91          11.84                      0 

T. Rowe Price Small Cap Growth Division/(c)/              2002        11.88           8.55                 7.7997 
                                                          2001        12.09          11.88                      0 

Loomis Sayles Small Cap Division/(c)/                     2002        21.87          16.84                 2.0553 
                                                          2001        22.38          21.87                      0 

State Street Research Aurora Division/(c)/                2002        13.91          10.73                26.4324 
                                                          2001        14.17          13.91                      0 

Franklin Templeton Small Cap Growth Division/(c)/         2002         8.78           6.23                 4.9985 
                                                          2001         9.17           8.78                      0 

PIMCO Innovation Division/(c)/                            2002         6.08           2.95                14.2591 
                                                          2001         7.04           6.08                      0 

Scudder Global Equity Division/(c)/                       2002        11.99           9.89                 2.6216 
                                                          2001        12.74          11.99                      0 

Morgan Stanley EAFE Index Division/(c)/                   2002         8.52           6.98                37.7293 
                                                          2001         9.30           8.52                      0 

MFS Research International Division/(c)/                  2002         8.35           7.25                 4.1564 
                                                          2001         9.01           8.35                      0 

Putnam International Stock Division/(c)/                  2002        11.04           8.94                 9.3555 
                                                          2001        11.83          11.04                      0 

American Funds Global Small Capitalization Division/(c)/  2002        13.30          10.57                 3.3231 
                                                          2001        13.64          13.30                      0 

FI Structured Equity Division/(d)/                        2002        22.03          18.09                  .0194 

State Street Research Large Cap Value Division/(d)/       2002        10.00           7.91                  .8371 

MET/AIM Mid Cap Core Equity Division/(d)/                 2002        11.37           9.64                 1.0637 

FI Mid Cap Opportunities Division/(d)/                    2002        10.00           8.09                  .2960 

MET/AIM Small Cap Growth Division/(d)/                    2002        11.21           8.46                  .0464 

Harris Oakmark International Division/(d)/                2002        10.90           8.80                  .1501 


37

485BPOS
136th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 136th
Table I 
 C Class, Greater % Annual Step-Up or 5% Annual Increase Death Benefit and
 Earnings Preservation Benefit

                                                        [Enlarge/Download Table]

                                                                                                       Number of      
                                                                   Beginning of Year   End of Year  Accumulation Units
                                                                     Accumulation     Accumulation   End of Year (In  
                                                             Year    Unit Value        Unit Value      Thousands)     
                                                                                                                      
Salomon Brothers U.S. Government Division/(c)/               2002      $ 14.00          $14.75                3.2094  
                                                             2001        13.77           14.00                     0  

Lehman Brothers Aggregate Bond Index Division/(c)/           2002        11.14           12.00                1.0546  
                                                             2001        10.96           11.14                     0  

State Street Research Bond Income Division/(a)/              2002        36.70           38.85                 .0357  
                                                             2001        35.83           36.70                     0  

PIMCO Total Return Division/(c)/                             2002        10.38           11.11                5.5512  
                                                             2001        10.22           10.38                     0  

Salomon Brothers Strategic Bond Opportunities Division/(c)/  2002        15.06           16.12                1.3685  
                                                             2001        14.81           15.06                     0  

State Street Research Diversified Division/(c)/              2002        32.24           27.16                 .1840  
                                                             2001        33.18           32.24                     0  

MetLife Stock Index Division/(c)/                            2002        32.97           25.04                 .1281  
                                                             2001        35.03           32.97                     0  

American Funds Growth-Income Division/(c)/                   2002        72.67           57.99                     0  
                                                             2001        75.91           72.67                     0  

Harris Oakmark Large Cap Value Division/(c)/                 2002        11.22            9.41                 .4515  
                                                             2001        11.42           11.22                     0  

T. Rowe Price Large Cap Growth Division/(c)/                 2002        11.25            8.45                     0  
                                                             2001        11.42           11.25                     0  

MFS Investors Trust Division/(c)/                            2002         8.13            6.35                     0  
                                                             2001         8.58            8.13                     0  

State Street Research Investment Trust Division/(c)/         2002        57.30           41.38                     0  
                                                             2001        61.59           57.30                     0  

MFS Research Managers Division/(c)/                          2002         8.25            6.12                     0  
                                                             2001         9.24            8.25                     0  

American Funds Growth Division/(c)/                          2002        97.69           72.12                 .2964  
                                                             2001       108.20           97.69                     0  

Janus Growth Division/(c)(e)/                                2002         7.71            5.23                     0  
                                                             2001         8.85            7.71                     0  

Davis Venture Value Division/(c)/                            2002        25.06           20.47                1.0263  
                                                             2001        25.84           25.06                     0  

Met/Putnam Voyager Division/(c)/                             2002         4.86            3.38                     0  
                                                             2001         5.34            4.86                     0  

MetLife Mid Cap Stock Index Division/(c)/                    2002        10.21            8.49                 .3279  
                                                             2001        10.35           10.21                     0  

Neuberger Berman Partners Mid Cap Value Division/(c)/        2002        14.72           13.00                 .0151  
                                                             2001        15.07           14.72                     0  

38

485BPOS
137th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 137th
                                                        [Enlarge/Download Table]

                                                                                                    Number of     
                                                                Beginning of Year  End of Year  Accumulation Units
                                                                  Accumulation    Accumulation    End of Year (In 
                                                          Year     Unit Value      Unit Value       Thousands)    
                                                                                                                  
Harris Oakmark Focused Value Division/(c)/                2002       $24.62          $21.93                 1.1306
                                                          2001        23.88           24.62                      0

T. Rowe Price Mid-Cap Division/(c)/                       2002         8.20            4.49                      0
                                                          2001         8.61            8.20                      0

Janus Mid Cap Division/(c)/                               2002        15.12           10.48                 1.6901
                                                          2001        17.62           15.12                      0

State Street Research Aggressive Growth Division/(c)/     2002        31.64           22.05                      0
                                                          2001        33.65           31.64                      0

Lord Abbett Bond Debenture Division/(b)/                  2002        10.13           10.03                      0
                                                          2001        10.42           10.13                      0

Russell 2000 Index Division/(c)/                          2002        11.69            9.09                      0
                                                          2001        11.79           11.69                      0

T. Rowe Price Small Cap Growth Division/(c)/              2002        11.65            8.35                 2.6432
                                                          2001        11.88           11.65                      0

Loomis Sayles Small Cap Division/(c)/                     2002        21.21           16.27                      0
                                                          2001        21.74           21.21                      0

State Street Research Aurora Division/(c)/                2002        13.82           10.62                 2.1395
                                                          2001        14.11           13.82                      0

Franklin Templeton Small Cap Growth Division/(c)/         2002         8.75            6.18                      0
                                                          2001         9.16            8.75                      0

PIMCO Innovation Division/(c)/                            2002         6.05            2.93                      0
                                                          2001         7.03            6.05                      0

Scudder Global Equity Division/(c)/                       2002        11.76            9.66                  .5098
                                                          2001        12.51           11.76                      0

Morgan Stanley EAFE Index Division/(c)/                   2002         8.41            6.86                      0
                                                          2001         9.20            8.41                      0

MFS Research International Division/(c)/                  2002         8.32            7.19                      0
                                                          2001         8.99            8.32                      0

Putnam International Stock Division/(c)/                  2002        10.58            8.53                 2.2404
                                                          2001        11.35           10.58                      0

American Funds Global Small Capitalization Division/(c)/  2002        13.11           10.37                  .2396
                                                          2001        13.46           13.11                      0

FI Structured Equity Division/(d)/                        2002        21.25           17.41                      0

State Street Research Large Cap Value Division/(d)/       2002        10.00            7.88                  .0242

MET/AIM Mid Cap Core Equity Division/(d)/                 2002        11.35            9.59                      0

FI Mid Cap Opportunities Division/(d)/                    2002        10.00            8.07                      0

MET/AIM Small Cap Growth Division/(d)/                    2002        11.18            8.41                      0

Harris Oakmark International Division/(d)/                2002        10.89            8.76                      0

39

485BPOS
138th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 138th
Table J 
 L Class, Greater % Annual Step-Up or 5% Annual Increase Death Benefit and
Earnings Preservation Benefit 

                                                        [Enlarge/Download Table]

                                                                                                       Number of     
                                                                  Beginning of Year   End of Year  Accumulation Units
                                                                     Accumulation    Accumulation    End of Year (In 
                                                             Year     Unit Value      Unit Value       Thousands)    
                                                                                                                     
Salomon Brothers U.S. Government Division/(c)/               2002      $ 14.15         $ 14.93                 2.2267
                                                             2001        13.91           14.15                      0

Lehman Brothers Aggregate Bond Index Division/(c)/           2002        11.19           12.07                 3.4168
                                                             2001        11.01           11.19                      0

State Street Research Bond Income Division/(a)/              2002        37.74           40.00                  .8440
                                                             2001        36.82           37.74                      0

PIMCO Total Return Division/(c)/                             2002        10.39           11.14                 3.0221
                                                             2001        10.22           10.39                      0

Salomon Brothers Strategic Bond Opportunities Division/(c)/  2002        15.22           16.31                  .9844
                                                             2001        14.96           15.22                      0

State Street Research Diversified Division/(c)/              2002        33.00           27.84                  .1108
                                                             2001        33.94           33.00                      0

MetLife Stock Index Division/(c)/                            2002        33.55           25.52                  .0568
                                                             2001        35.62           33.55                      0

American Funds Growth-Income Division/(c)/                   2002        74.65           59.65                  .0565
                                                             2001        77.93           74.65                      0

Harris Oakmark Large Cap Value Division/(c)/                 2002        11.28            9.47                  .2615
                                                             2001        11.47           11.28                      0

T. Rowe Price Large Cap Growth Division/(c)/                 2002        11.30            8.50                      0
                                                             2001        11.47           11.30                      0

MFS Investors Trust Division/(c)/                            2002         8.16            6.38                      0
                                                             2001         8.61            8.16                      0

State Street Research Investment Trust Division/(c)/         2002        58.92           42.61                  .1722
                                                             2001        63.28           58.92                      0

MFS Research Managers Division/(c)/                          2002         8.26            6.14                      0
                                                             2001         9.27            8.26                      0

American Funds Growth Division/(c)/                          2002       100.35           74.20                  .7716
                                                             2001       111.08          100.35                      0

Janus Growth Division/(c)(e)/                                2002         7.72            5.24                      0
                                                             2001         8.85            7.72                      0

Davis Venture Value Division/(c)/                            2002        25.34           20.72                 2.5885
                                                             2001        26.10           25.34                      0

Met/Putnam Voyager Division/(c)/                             2002         4.87            3.39                      0
                                                             2001         5.35            4.87                      0

MetLife Mid Cap Stock Index Division/(c)/                    2002        10.23            8.52                      0
                                                             2001        10.36           10.23                      0

Neuberger Berman Partners Mid Cap Value Division/(c)/        2002        14.79           13.09                  .1776
                                                             2001        15.13           14.79                      0

40

485BPOS
139th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 139th
                                                        [Enlarge/Download Table]

                                                                                                   Number of      
                                                                Beginning of Year  End of Year  Accumulation Units
                                                                   Accumulation   Accumulation  End of Year (In   
                                                          Year      Unit Value     Unit Value      Thousands)     
                                                                                                                  
Harris Oakmark Focused Value Division/(c)/                2002       $24.95         $22.26           2.2913       
                                                          2001        24.18          24.95                0       

T. Rowe Price Mid-Cap Growth Division/(c)/                2002         8.21           4.50            .0646       
                                                          2001         8.62           8.21                0       

Janus Mid Cap Division/(c)/                               2002        15.23          10.57           4.7026       
                                                          2001        17.73          15.23                0       

State Street Research Aggressive Growth Division/(c)/     2002        32.29          22.54                0       
                                                          2001        34.33          32.29                0       

Lord Abbett Bond Debenture Division/(b)/                  2002        10.20          10.12                0       
                                                          2001        10.49          10.20                0       

Russell 2000 Index Division/(c)/                          2002        11.75           9.14                0       
                                                          2001        11.83          11.75                0       

T. Rowe Price Small Cap Growth Division/(c)/              2002        11.74           8.42           6.1067       
                                                          2001        11.95          11.74                0       

Loomis Sayles Small Cap Division/(c)/                     2002        21.46          16.48                0       
                                                          2001        21.98          21.46                0       

State Street Research Aurora Division/(c)/                2002        13.86          10.66           4.6094       
                                                          2001        14.13          13.86                0       

Franklin Templeton Small Cap Growth Division/(c)/         2002         8.76           6.20                0       
                                                          2001         9.16           8.76                0       

PIMCO Innovation Division/(c)/                            2002         6.06           2.94                0       
                                                          2001         7.03           6.06                0       

Scudder Global Equity Division/(c)/                       2002        11.85           9.74                0       
                                                          2001        12.60          11.85                0       

Morgan Stanley EAFE Index Division/(c)/                   2002         8.45           6.90                0       
                                                          2001         9.23           8.45                0       

MFS Research International Division/(c)/                  2002         8.33           7.22                0       
                                                          2001         8.99           8.33                0       

Putnam International Stock Division/(c)/                  2002        10.75          8.68            5.7932       
                                                          2001        11.53          10.75                0       

American Funds Global Small Capitalization Division/(c)/  2002        13.18          10.44                0       
                                                          2001        13.53          13.18                0       

FI Structured Equity Division/(d)/                        2002        21.54          17.66                0       

State Street Research Large Cap Value Division/(d)/       2002        10.00           7.89                0       

MET/AIM Mid Cap Core Equity Division/(d)/                 2002        11.36           9.61                0       

FI Mid Cap Opportunities Division/(d)/                    2002        10.00           8.08                0       

MET/AIM Small Cap Growth Division/(d)/                    2002        11.19           8.43                0       

Ham's Oakmark International Division/(d)/                 2002        10.89           8.77                0       

41

485BPOS
140th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 140th
 Table K
 B Class, Greater of Annual Step-Up or
5% Annual Increase Death Benefit

                                                        [Enlarge/Download Table]

                                                                                                      Number of     
                                                                  Beginning of Year  End of year  Accumulation Units
                                                                     Accumulation   Accumulation    End of Year (In 
                                                             Year      Unit Value    Unit Value       Thousands)    
                                                                                                                    
Salomon Brothers U.S. Government Division/(c)/               2002       $ 14.67     $ 15.55           60.9621       
                                                             2001         14.39       14.67                 0       

Lehman Brothers Aggregate Bond Index Division/(c)/           2002         11.37       12.33          119.7994       
                                                             2001         11.16       11.37                 0       

State Street Research Bond Income Division/(a)/              2002         41.40       44.11           21.8770       
                                                             2001         40.31       41.40                 0       

PIMCO Total Return Division/(c)/                             2002         10.44       11.25          101.1893       
                                                             2001         10.25       10.44                 0       

Salomon Brothers Strategic Bond Opportunities Division/(c)/  2002         15.77       16.99           26.2228       
                                                             2001         15.48       15.77                 0       

State Street Research Diversified Division/(c)/              2002         35.66       30.23           13.8607       
                                                             2001         36.59       35.66                 0       

MetLife Stock Index Division/(c)/                            2002         35.57       27.19           32.6419       
                                                             2001         37.69       35.57                 0       

American Funds Growth-Income Division/(c)/                   2002         81.64       65.57           13.7388       
                                                             2001         85.05       81.64                 0       

Harris Oakmark Large Cap Value Division/(c)/                 2002         11.45        9.67          101.4924       
                                                             2001         11.62       11.45                 0       

T. Rowe Price Large Cap Growth Division/(c)/                 2002         11.48        8.68           32.7004       
                                                             2001         11.62       11.48                 0       

MFS Investors Trust Division/(c)/                            2002          8.27        6.50            44.461       
                                                             2001          8.70        8.27                 0       

State Street Research Investment Trust Division/(c)/         2002         64.64       46.99           11.7707       
                                                             2001         69.28       64.64                 0       

MFS Research Managers Division/(c)/                          2002          8.29        6.19            4.1900       
                                                             2001          9.38        8.29                 0       

American Funds Growth Division/(c)/                          2002        109.75       81.56            8.9592       
                                                             2001        121.23      109.75                 0       

Janus Growth Division/(c)(e)/                                2002          7.74        5.29            5.7802       
                                                             2001          8.87        7.74                 0       

Davis Venture Value Division/(c)/                            2002         26.26       21.59           13.7811       
                                                             2001         27.00       26.26                 0       

Met/Putnam Voyager Division/(c)/                             2002          4.92        3.44           35.3573       
                                                             2001          5.39        4.92                 0       

MetLife Mid Cap Stock Index Division/(c)/                    2002         10.31        8.63           41.8576       
                                                             2001         10.42       10.31                 0       

Neuberger Berman Partners Mid Cap Value Division/(c)/        2002         15.02       13.36           21.9528       
                                                             2001         15.34       15.02                 0       

42

485BPOS
141st Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 141st
                                                        [Enlarge/Download Table]

                                                                                                     Number of    
                                                               Beginning of Year   End of Year  Accumulation Units
                                                                  Accumulation    Accumulation    End of Year (In 
                                                          Year     Unit Value      Unit Value       Thousands)    
                                                                                                                  
Harris Oakmark Focused Value Division/(c)/                2002       $26.05          $23.36                30.2872
                                                          2001        25.20           26.05                      0

T. Rowe Price Mid-Cap Growth Division/(c)/                2002         8.25            4.55                24.2219
                                                          2001         8.64            8.25                      0

Janus Mid Cap Division/(c)/                               2002        15.60           10.89                 6.9292
                                                          2001        18.13           15.60                      0

State Street Research Aggressive Growth Division/(c)/     2002        34.58           24.26                 1.7332
                                                          2001        36.68           34.58                      0

Lord Abbett Bond Debenture Division/(b)/                  2002        10.45           10.42                13.3010
                                                          2001        10.72           10.45                      0

Russell 2000 Index Division/(c)/                          2002        11.93            9.34                24.5901
                                                          2001        12.00           11.93                      0

T. Rowe Price Small Cap Growth Division/(c)/              2002        12.02            8.67                 6.6355
                                                          2001        12.22           12.02                      0

Loomis Sayles Small Cap Division/(c)/                     2002        22.30           17.21                 3.0041
                                                          2001        22.79           22.30                      0

State Street Research Aurora Division/(c)/                2002        13.96           10.80                90.4366
                                                          2001        14.20           13.96                      0

Franklin Templeton Small Cap Growth Division/(c)/         2002         8.79            6.25                 7.6511
                                                          2001         9.17            8.79                      0

PIMCO Innovation Division/(c)/                            2002         6.09            2.96                22.6135
                                                          2001         7.05            6.09                      0

Scudder Global Equity Division/(c)/                       2002        12.14           10.03                 3.4582
                                                          2001        12.88           12.14                      0

Morgan Stanley EAFE Index Division/(c)/                   2002         8.59            7.05                59.8741
                                                          2001         9.36            8.59                      0

MFS Research International Division/(c)/                  2002         8.37            7.28                10.2399
                                                          2001         9.02            8.37                      0

Putnam International Stock Division/(c)/                  2002        11.34            9.20                22.1825
                                                          2001        12.14           11.34                      0

American Funds Global Small Capitalization Division/(c)/  2002        13.43           10.69                11.3615
                                                          2001        13.75           13.43                      0

FI Structured Equity Division/(d)/                        2002        22.53           18.54                  .0155

State Street Research Large Cap Value Division/(d)/       2002        10.00            7.92                 5.4459

MET/AIM Mid Cap Core Equity Division/(d)/                 2002        11.39            9.67                 4.1455

FI Mid Cap Opportunities Division/(d)/                    2002        10.00            8.11                 6.2966

MET/AIM Small Cap Growth Division/(d)/                    2002        11.23            8.48                 3.1270

Harris Oakmark International Division/(d)/                2002        10.90            8.83                 1.4993

43

485BPOS
142nd Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 142nd
Table L 
C Class and Greater Annual Step-Up or 5% Annual Increase Death Benefit

                                                        [Enlarge/Download Table]

                                                                                                         Number of    
                                                                   Beginning of Year  End of Year   Accumulation Units
                                                                      Accumulation    Accumulation    End of Year (In 
                                                             Year      Unit Value      Unit Value        Thousands)   
                                                                                                                      
Salomon Brothers U.S. Government Division/(c)/                2002    $ 14.26        $ 15.05                  1.4325  
                                                              2001      14.01          14.26                       0  

Lehman Brothers Aggregate Bond Index Division/(c)/            2002      11.23          12.12                 10.9748  
                                                              2001      11.04          11.23                       0  

State Street Research Bond Income Division/(a)/               2002      38.44          40.79                   .8088  
                                                              2001      37.49          38.44                       0  

PIMCO Total Return Division/(c)/                              2002      10.40          11.16                  4.7555  
                                                              2001      10.23          10.40                       0  

Salomon Brothers Strategic Bond Opportunities Division/(c)/   2002      15.33          16.45                  2.0297  
                                                              2001      15.06          15.33                       0  

State Street Research Diversified Division/(c)/               2002      33.51          28.30                   .1893  
                                                              2001      34.45          33.51                       0  

MetLife Stock Index Division/(c)/                             2002      33.94          25.84                  4.0290  
                                                              2001      36.03          33.94                       0  

American Funds Growth-Income Division/(c)/                    2002      75.99          60.79                   .6888  
                                                              2001      79.31          75.99                       0  

Harris Oakmark Large Cap Value Division/(c)/                  2002      11.31           9.51                  2.4640  
                                                              2001      11.50          11.31                       0  

T. Rowe Price Large Cap Growth Division/(c)/                  2002      11.34           8.53                   .9874  
                                                              2001      11.50          11.34                       0  

MFS Investors Trust Division/(c)/                             2002       8.18           6.41                   .9235  
                                                              2001       8.62           8.18                       0  

State Street Research Investment Trust Division/(c)/          2002      60.02          43.45                   .7979  
                                                              2001      64.44          60.02                       0  

MFS Research Managers Division/(c)/                           2002       8.27           6.15                   .3305  
                                                              2001       9.29           8.27                       0  

American Funds Growth Division/(c)/                           2002     102.17          75.61                   .1534  
                                                              2001     113.04         102.17                       0  

Janus Growth Division/(c)(e)/                                 2002       7.72           5.25                       0  
                                                              2001       8.86           7.72                       0  

Davis Venture Value Division/(c)/                             2002      25.52          20.89                   .1403  
                                                              2001      26.28          25.52                       0  

Met/Putnam Voyager Division/(c)/                              2002       4.88           3.40                  1.3817  
                                                              2001       5.36           4.88                       0  

MetLife Mid Cap Stock Index Division/(c)/                     2002      10.25           8.54                  3.2560  
                                                              2001      10.38          10.25                       0  

Neuberger Berman Partners Mid Cap Value Division/(c)/         2002      14.83          13.14                  1.3520  
                                                              2001      15.17          14.83                       0  

44

485BPOS
143rd Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 143rd
                                                        [Enlarge/Download Table]

                                                                                                    Number of     
                                                                Beginning of Year  End of Year  Accumulation Units
                                                                  Accumulation    Accumulation    End of Year (In 
                                                          Year     Unit Value      Unit Value       Thousands)    
                                                                                                                  
Harris Oakmark Focused Value Division/(c)/                2002       $25.16             $22.47              1.4190
                                                          2001        24.38              25.16                   0

T. Rowe Price Mid-Cap Growth Division/(c)/                2002         8.22               4.51              2.3421
                                                          2001         8.62               8.22                   0

Janus Mid Cap Division/(c)/                               2002        15.30              10.64               .3026
                                                          2001        17.81              15.30                   0

State Street Research Aggressive Growth Division/(c)/     2002        32.74              22.87               .3157
                                                          2001        34.78              32.74                   0

Lord Abbett Bond Debenture Division/(b)/                  2002        10.25              10.18              1.1929
                                                          2001        10.53              10.25                   0

Russell 2000 Index Division/(c)/                          2002        11.78               9.18              1.3277
                                                          2001        11.87              11.78                   0

T. Rowe Price Small Cap Growth Division/(c)/              2002        11.79               8.47               .3579
                                                          2001        12.01              11.79                   0

Loomis Sayles Small Cap Division/(c)/                     2002        21.62              16.62              1.4648
                                                          2001        22.14              21.62                   0

State Street Research Aurora Division/(c)/                2002        13.88              10.69              4.3781
                                                          2001        14.14              13.88                   0

Franklin Templeton Small Cap Growth Division/(c)/         2002         8.77               6.21               .3338
                                                          2001         9.16               8.77                   0

PIMCO Innovation Division/(c)/                            2002         6.07               2.94                   0
                                                          2001         7.04               6.07                   0

Scudder Global Equity Division/(c)/                       2002        11.91               9.80               .5627
                                                          2001        12.65              11.91                   0

Morgan Stanley EAFE Index Division/(c)/                   2002         8.48               6.93              4.4511
                                                          2001         9.26               8.48                   0

MFS Research International Division/(c)/                  2002         8.34               7.23               .4706
                                                          2001         9.00               8.34                   0

Putnam International Stock Division/(c)/                  2002        10.87               8.78              1.7705
                                                          2001        11.65              10.87                   0

American Funds Global Small Capitalization Division/(c)/  2002        13.23              10.49              1.1932
                                                          2001        13.57              13.23                   0

FI Structured Equity Division/(d)/                        2002        21.74              17.83                   0

State Street Research Large Cap Value Division/(d)/       2002        10.00               7.90                   0

MET/AIM Mid Cap Core Equity Division/(d)/                 2002        11.37               9.62                   0

FI Mid Cap Opportunities Division/(d)/                    2002        10.00               8.09               .7289

MET/AIM Small Cap Growth Division/(d)/                    2002        11.20               8.44                   0

Harris Oakmark International Division/(d)/                2002        10.89               8.78              2.9162


45

485BPOS
144th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 144th
Table M 
 L Class and Greater of Annual Step-Up or 5% Annual Increase Death Benefit

                                                        [Enlarge/Download Table]

                                                                                                        Number of    
                                                                  Beginning of Year   End of Year  Accumulation Units
                                                                     Accumulation    Accumulation    End of Year (In 
                                                             Year     Unit Value      Unit Value       Thousands)    
                                                                                                                     
Salomon Brothers U.S. Government Division/(c)/               2002      $ 14.41         $ 15.24                  .3502
                                                             2001        14.15           14.41                      0

Lehman Brothers Aggregate Bond Index Division/(c)/           2002        11.28           12.20                 3.8644
                                                             2001        11.08           11.28                      0

State Street Research Bond Income Division/(a)/              2002        39.53           42.01                  .2955
                                                             2001        38.52           39.53                      0

PIMCO Total Return Division/(c)/                             2002        10.41           11.19                 2.4683
                                                             2001        10.24           10.41                      0

Salomon Brothers Strategic Bond Opportunities Division/(c)/  2002        15.49           16.65                  .0369
                                                             2001        15.22           15.49                      0

State Street Research Diversified Division/(c)/              2002        34.30           29.01                  .2322
                                                             2001        35.24           34.30                      0

MetLife Stock Index Division/(c)/                            2002        34.54           26.34                 2.6819
                                                             2001        36.64           34.54                      0

American Funds Growth-Income Division/(c)/                   2002        78.06           62.54                 1.0570
                                                             2001        81.42           78.06                      0

Harris Oakmark Large Cap Value Division/(c)/                 2002        11.36            9.57                      0
                                                             2001        11.55           11.36                      0

T. Rowe Price Large Cap Growth Division/(c)/                 2002        11.39            8.59                  .3044
                                                             2001        11.54           11.39                      0

MFS Investors Trust Division/(c)/                            2002         8.22            6.44                 3.3338
                                                             2001         8.65            8.22                      0

State Street Research Investment Trust Division/(c)/         2002        61.71           44.75                      0
                                                             2001        66.22           61.71                      0

MFS Research Managers Division/(c)/                          2002         8.28            6.16                      0
                                                             2001         9.32            8.28                      0

American Funds Growth Division/(c)/                          2002       104.95           77.79                  .5116
                                                             2001       116.05          104.95                      0

Janus Growth Division/(c)(e)/                                2002         7.73            5.26                      0
                                                             2001         8.86            7.73                      0

Davis Venture Value Division/(c)/                            2002        25.79           21.15                      0
                                                             2001        26.55           25.79                      0

Met/Putnam Voyager Division/(c)/                             2002         4.89            3.42                      0
                                                             2001         5.37            4.89                      0

MetLife Mid Cap Stock Index Division/(c)/                    2002        10.27            8.58                 1.5263
                                                             2001        10.39           10.27                      0

Neuberger Berman Partners Mid Cap Value Division/(c)/        2002        14.90           13.22                  .0802
                                                             2001        15.23           14.90                      0

46

485BPOS
145th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 145th
                                                        [Enlarge/Download Table]

                                                                                                     Number of    
                                                               Beginning of Year   End of Year  Accumulation Units
                                                                  Accumulation    Accumulation    End of Year (In 
                                                          Year     Unit Value      Unit Value       Thousands)    
                                                                                                                  

Harris Oakmark Focused Value Division/(c)/                2002      $25.49          $22.80                  .3238 
                                                          2001       24.68           25.49                      0 

T. Rowe Price Mid-Cap Growth Division/(c)/                2002        8.23            4.53                  .1155 
                                                          2001        8.63            8.23                      0 

Janus Mid Cap Division/(c)/                               2002       15.41           10.73                  .6830 
                                                          2001       17.93           15.41                      0 

State Street Research Aggressive Growth Division/(c)/     2002       33.42           23.38                      0 
                                                          2001       35.48           33.42                      0 

Lord Abbett Bond Debenture Division/(b)/                  2002       10.33           10.27                      0 
                                                          2001       10.60           10.33                      0 

Russell 2000 Index Division/(c)/                          2002       11.84            9.24                  .6704 
                                                          2001       11.91           11.84                      0 

T. Rowe Price Small Cap Growth Division/(c)/              2002       11.88            8.55                  .8536 
                                                          2001       12.09           11.88                      0 

Loomis Sayles Small Cap Division/(c)/                     2002       21.87           16.84                      0 
                                                          2001       22.38           21.87                      0 

State Street Research Aurora Division/(c)/                2002       13.91           10.73                  .7809 
                                                          2001       14.17           13.91                      0 

Franklin Templeton Small Cap Growth Division/(c)/         2002        8.78            6.23                      0 
                                                          2001        9.17            8.78                      0 

PIMCO Innovation Division/(c)/                            2002        6.08            2.95                      0 
                                                          2001        7.04            6.08                      0 

Scudder Global Equity Division/(c)/                       2002       11.99            9.89                 1.2958 
                                                          2001       12.74           11.99                      0 

Morgan Stanley EAFE Index Division/(c)/                   2002        8.52            6.98                 2.7209 
                                                          2001        9.30            8.52                      0 

MFS Research International Division/(c)/                  2002        8.35            7.25                      0 
                                                          2001        9.01            8.35                      0 

Putnam International Stock Division/(c)/                  2002       11.04            8.94                  .9063 
                                                          2001       11.83           11.04                      0 

American Funds Global Small Capitalization Division/(c)/  2002       13.30           10.57                 1.0559 
                                                          2001       13.64           13.30                      0 

FI Structured Equity Division/(d)/                        2002       22.03           18.09                      0 

State Street Research Large Cap Value Division/(d)/       2002       10.00            7.91                      0 

MET/AIM Mid Cap Core Equity Division/(d)/                 2002       11.37            9.64                      0 

FI Mid Cap Opportunities Division/(d)/                    2002       10.00            8.09                      0 

MET/AIM Small Cap Growth Division/(d)/                    2002       11.21            8.46                      0 

Harris Oakmark International Division/(d)/                2002       10.90            8.80                      0 

47

485BPOS
146th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 146th
Table N 
Bonus Class and Greater of Annual Step-Up or 5% Annual Increase Death Benefit 

                                                        [Enlarge/Download Table]

                                                                                                        Number of    
                                                                  Beginning of Year   End of Year  Accumulation Units
                                                                     Accumulation    Accumulation    End of Year (In 
                                                             Year     Unit Value      Unit Value       Thousands)    
                                                                                                                     

Salomon Brothers U.S. Government Division/(c)/               2002      $ 14.20         $ 14.99                89.0819
                                                             2001        13.96           14.20                      0

Lehman Brothers Aggregate Bond Index Division/(c)/           2002        11.21           12.10                56.0511
                                                             2001        11.02           11.21                      0

State Street Research Bond Income Division/(a)/              2002        38.09           40.40                 4.8858
                                                             2001        37.15           38.09                      0

PIMCO Total Return Division/(c)/                             2002        10.39           11.15                27.4575
                                                             2001        10.23           10.39                      0

Salomon Brothers Strategic Bond Opportunities Division/(c)/  2002        15.27           16.38                 9.8660
                                                             2001        15.01           15.27                      0

State Street Research Diversified Division/(c)/              2002        33.25           28.07                 1.3097
                                                             2001        34.19           33.25                      0

MetLife Stock Index Division/(c)/                            2002        33.75           25.68                14.0592
                                                             2001        35.82           33.75                      0

American Funds Growth-Income Division/(c)/                   2002        75.32           60.22                 2.9008
                                                             2001        78.62           75.32                      0

Harris Oakmark Large Cap Value Division/(c)/                 2002        11.29            9.49                32.0720
                                                             2001        11.48           11.29                      0

T. Rowe Price Large Cap Growth Division/(c)/                 2002        11.32            8.52                  .6601
                                                             2001        11.48           11.32                      0

MFS Investors Trust Division/(c)/                            2002         8.17            6.39                  .8025
                                                             2001         8.61            8.17                      0

State Street Research Investment Trust Division/(c)/         2002        59.47           43.03                 1.7350
                                                             2001        63.86           59.47                      0

MFS Research Managers Division/(c)/                          2002         8.26            6.14                      0
                                                             2001         9.28            8.26                      0

American Funds Growth Division/(c)/                          2002       101.26           74.90                 1.9765
                                                             2001       112.06          101.26                      0

Janus Growth Division/(c)(e)/                                2002         7.72            5.25                 6.7640
                                                             2001         8.86            7.72                      0

Davis Venture Value Division/(c)/                            2002        25.43           20.81                 2.5725
                                                             2001        26.19           25.43                      0

Met/Putnam Voyager Division/(c)/                             2002         4.88            3.40                11.1884
                                                             2001         5.36            4.88                      0

MetLife Mid Cap Stock Index Division/(c)/                    2002        10.24            8.53                11.7185
                                                             2001        10.37           10.24                      0

Neuberger Berman Partners Mid Cap Value Division/(c)/        2002        14.81           13.11                 5.8460
                                                             2001        15.15           14.81                      0

48

485BPOS
147th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 147th
                                                        [Enlarge/Download Table]

                                                                                                     Number of    
                                                               Beginning of Year   End of Year  Accumulation Units
                                                                  Accumulation    Accumulation    End of Year (In 
                                                          Year     Unit Value      Unit Value       Thousands)    
                                                                                                                  

Harris Oakmark Focused Value Division/(c)/                2002      $25.06          $22.36                11.9329 
                                                          2001       24.28           25.06                      0 

T. Rowe Price Mid-Cap Growth Division/(c)/                2002        8.22            4.51                12.0569 
                                                          2001        8.62            8.22                      0 

Janus Mid Cap Division/(c)/                               2002       15.26           10.61                 1.8329 
                                                          2001       17.77           15.26                      0 

State Street Research Aggressive Growth Division/(c)/     2002       32.51           22.71                  .5931 
                                                          2001       34.55           32.51                      0 

Lord Abbett Bond Debenture Division/(b)/                  2002       10.23           10.15                 3.4885 
                                                          2001       10.51           10.23                      0 

Russell 2000 Index Division/(c)/                          2002       11.77            9.16                 5.4237 
                                                          2001       11.85           11.77                      0 

T. Rowe Price Small Cap Growth Division/(c)/              2002       11.77            8.45                  .5277 
                                                          2001       11.98           11.77                      0 

Loomis Sayles Small Cap Division/(c)/                     2002       21.54           16.55                  .2754 
                                                          2001       22.06           21.54                      0 

State Street Research Aurora Division/(c)/                2002       13.87           10.68                30.2665 
                                                          2001       14.14           13.87                      0 

Franklin Templeton Small Cap Growth Division/(c)/         2002        8.76            6.20                 1.4272 
                                                          2001        9.16            8.76                      0 

PIMCO Innovation Division/(c)/                            2002        6.06            2.94                 5.6696 
                                                          2001        7.03            6.06                      0 

Scudder Global Equity Division/(c)/                       2002       11.88            9.77                 3.8232 
                                                          2001       12.63           11.88                      0 

Morgan Stanley EAFE Index Division/(c)/                   2002        8.46            6.92                16.0267 
                                                          2001        9.25            8.46                      0 

MFS Research International Division/(c)/                  2002        8.34            7.22                 1.1597 
                                                          2001        9.00            8.34                      0 

Putnam International Stock Division/(c)/                  2002       10.81            8.73                 4.2877 
                                                          2001       11.59           10.81                      0 

American Funds Global Small Capitalization Division/(c)/  2002       13.21           10.47                 5.3890 
                                                          2001       13.55           13.21                      0 

FI Structured Equity Division/(d)/                        2002       21.64           17.75                      0 

State Street Research Large Cap Value Division/(d)/       2002       10.00            7.89                      0 

MET/AIM Mid Cap Core Equity Division/(d)/                 2002       11.36            9.61                  .0698 

FI Mid Cap Opportunities Division/(d)/                    2002       10.00            8.08                      0 

MET/AIM Small Cap Growth Division/(d)/                    2002       11.20            8.44                  .0789 

Harris Oakmark International Division/(d)/                2002       10.89            8.78                  .2493 

49

485BPOS
148th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 148th
Table O 
 B Class and Earnings Preservation Benefit

                                                        [Enlarge/Download Table]

                                                                                                         Number of     
                                                                  Beginning of Year     End of Year  Accumulation Units
                                                                     Accumulation    Accumulation    End of Year (In   
                                                             Year     Unit Value      Unit Value       Thousands)      
                                                                                                                       
Salomon Brothers U.S. Government Division/(c)/               2002      $ 14.67         $ 15.55                27.4269  
                                                             2001        14.39           14.67                      0  

Lehman Brothers Aggregate Bond Index Division/(c)/           2002        11.37           12.33                33.5558  
                                                             2001        11.16           11.37                      0  

State Street Research Bond Income Division/(a)/              2002        41.40           44.11                11.0482  
                                                             2001        40.31           41.40                      0  

PIMCO Total Return Division/(c)/                             2002        10.44           11.25                33.6049  
                                                             2001        10.25           10.44                      0  

Salomon Brothers Strategic Bond Opportunities Division/(c)/  2002        15.77           16.99                 2.3907  
                                                             2001        15.48           15.77                      0  

State Street Research Diversified Division/(c)/              2002        35.66           30.23                 4.5058  
                                                             2001        36.59           35.66                      0  

MetLife Stock Index Division/(c)/                            2002        35.57           27.19                14.2245  
                                                             2001        37.69           35.57                      0  

American Funds Growth-Income Division/(c)/                   2002        81.64           65.57                 6.2364  
                                                             2001        85.05           81.64                      0  

Harris Oakmark Large Cap Value Division/(c)/                 2002        11.45            9.67                34.7514  
                                                             2001        11.62           11.45                      0  

T. Rowe Price Large Cap Growth Division/(c)/                 2002        11.48            8.68                10.0153  
                                                             2001        11.62           11.48                      0  

MFS Investors Trust Division/(c)/                            2002         8.27            6.50                   .729  
                                                             2001         8.70            8.27                      0  

State Street Research Investment Trust Division/(c)/         2002        64.64           46.99                 3.2369  
                                                             2001        69.28           64.64                      0  

MFS Research Managers Division/(c)/                          2002         8.29            6.19                  .9282  
                                                             2001         9.38            8.29                      0  

American Funds Growth Division/(c)/                          2002       109.75           81.56                 3.8726  
                                                             2001       121.23          109.75                      0  

Janus Growth Division/(c)(e)/                                2002         7.74            5.29                 3.3399  
                                                             2001         8.87            7.74                      0  

Davis Venture Value Division/(c)/                            2002        26.26           21.59                 1.1835  
                                                             2001        27.00           26.26                      0  

Met/Putnam Voyager Division/(c)/                             2002         4.92            3.44                  6.562  
                                                             2001         5.39            4.92                      0  

MetLife Mid Cap Stock Index Division/(c)/                    2002        10.31            8.63                17.2997  
                                                             2001        10.42           10.31                      0  

Neuberger Berman Partners Mid Cap Value Division/(c)/        2002        15.02           13.36                10.7329  
                                                             2001        15.34           15.02                      0  

50

485BPOS
149th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 149th
                                                        [Enlarge/Download Table]

                                                                                                   Number of     
                                                              Beginning of Year   End of Year  Accumulation Units
                                                                 Accumulation    Accumulation    End of Year (In 
                                                          Year    Unit Value      Unit Value       Thousands)    
                                                                                                                 
Harris Oakmark Focused Value Division/(c)/                2002      $26.05          $23.36                12.9733
                                                          2001       25.20           26.05                      0

T. Rowe Price Mid-Cap Growth Division/(c)/                2002        8.25            4.55                17.2567
                                                          2001        8.64            8.25                      0

Janus Mid Cap Division/(c)/                               2002       15.60           10.89                 5.5662
                                                          2001       18.13           15.60                      0

State Street Research Aggressive Growth Division/(c)/     2002       34.58           24.26                  .4693
                                                          2001       36.68           34.58                      0

Lord Abbett Bond Debenture Division/(b)/                  2002       10.45           10.42                 1.9968
                                                          2001       10.72           10.45                      0

Russell 2000 Index Division/(c)/                          2002       11.93            9.34                10.1323
                                                          2001       12.00           11.93                      0

T. Rowe Price Small Cap Growth Division/(c)/              2002       12.02            8.67                 2.846 
                                                          2001       12.22           12.02                      0

Loomis Sayles Small Cap Division/(c)/                     2002       22.30           17.21                 1.5328
                                                          2001       22.79           22.30                      0

State Street Research Aurora Division/(c)/                2002       13.96           10.80                30.7045
                                                          2001       14.20           13.96                      0

Franklin Templeton Small Cap Growth Division/(c)/         2002        8.79            6.25                  .8783
                                                          2001        9.17            8.79                      0

PIMCO Innovation Division/(c)/                            2002        6.09            2.96                 3.7204
                                                          2001        7.05            6.09                      0

Scudder Global Equity Division/(c)/                       2002       12.14           10.03                 3.4033
                                                          2001       12.88           12.14                      0

Morgan Stanley EAFE Index Division/(c)/                   2002        8.59            7.05                15.9787
                                                          2001        9.36            8.59                      0

MFS Research International Division/(c)/                  2002        8.37            7.28                 1.1564
                                                          2001        9.02            8.37                      0

Putnam International Stock Division/(c)/                  2002       11.34            9.20                 2.6122
                                                          2001       12.14           11.34                      0

American Funds Global Small Capitalization Division/(c)/  2002       13.43           10.69                11.5778
                                                          2001       13.75           13.43                      0

FI Structured Equity Division/(d)/                        2002       22.53           18.54                  .0154

State Street Research Large Cap Value Division/(d)/       2002       10.00            7.92                  .0464

MET/AIM Mid Cap Core Equity Division/(d)/                 2002       11.39            9.67                  .0378

FI Mid Cap Opportunities Division/(d)/                    2002       10.00            8.11                 2.2997

MET/AIM Small Cap Growth Division/(d)/                    2002       11.23            8.48                 1.2889

Harris Oakmark International Division/(d)/                2002       10.90            8.83                  .1232

51

485BPOS
150th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 150th
Table P 
 C Class and Earnings Preservation Benefit

                                                        [Enlarge/Download Table]

                                                                                                    Number of     
                                                                 Beginning of Year End of Year  Accumulation Units
                                                                    Accumulation  Accumulation   End of Year (In  
                                                             Year    Unit Value    Unit Value      Thousands)     
                                                                                                                  

Salomon Brothers U.S. Government Division/(c)/               2002    $ 14.26        $ 15.05                     0 
                                                             2001      14.01          14.26                     0 

Lehman Brothers Aggregate Bond Index Division/(c)/           2002      11.23          12.12                4.9962 
                                                             2001      11.04          11.23                     0 

State Street Research Bond Income Division/(a)/              2002      38.44          40.79                2.5290 
                                                             2001      37.49          38.44                     0 

PIMCO Total Return Division/(c)/                             2002      10.40          11.16                4.7796 
                                                             2001      10.23          10.40                     0 

Salomon Brothers Strategic Bond Opportunities Division/(c)/  2002      15.33          16.45                     0 
                                                             2001      15.06          15.33                     0 

State Street Research Diversified Division/(c)/              2002      33.51          28.30                     0 
                                                             2001      34.45          33.51                     0 

MetLife Stock Index Division/(c)/                            2002      33.94          25.84                1.7327 
                                                             2001      36.03          33.94                     0 

American Funds Growth-Income Division/(c)/                   2002      75.99          60.79                 .0487 
                                                             2001      79.31          75.99                     0 

Harris Oakmark Large Cap Value Division/(c)/                 2002      11.31           9.51               11.7205 
                                                             2001      11.50          11.31                     0 

T. Rowe Price Large Cap Growth Division/(c)/                 2002      11.34           8.53                     0 
                                                             2001      11.50          11.34                     0 

MFS Investors Trust Division/(c)/                            2002       8.18           6.41                     0 
                                                             2001       8.62           8.18                     0 

State Street Research Investment Trust Division/(c)/         2002      60.02          43.45                 .1722 
                                                             2001      64.44          60.02                     0 

MFS Research Managers Division/(c)/                          2002       8.27           6.15                     0 
                                                             2001       9.29           8.27                     0 

American Funds Growth Division/(c)/                          2002     102.17          75.61                1.2506 
                                                             2001     113.04         102.17                     0 

Janus Growth Division/(c)(e)/                                2002       7.72           5.25                 .2016 
                                                             2001       8.86           7.72                     0 

Davis Venture Value Division/(c)/                            2002      25.52          20.89                 .1042 
                                                             2001      26.28          25.52                     0 

Met/Putnam Voyager Division/(c)/                             2002       4.88           3.40                     0 
                                                             2001       5.36           4.88                     0 

MetLife Mid Cap Stock Index Division/(c)/                    2002      10.25           8.54                1.2731 
                                                             2001      10.38          10.25                     0 

Neuberger Berman Partners Mid Cap Value Division/(c)/        2002      14.83          13.14                     0 
                                                             2001      15.17          14.83                     0 

52

485BPOS
151st Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 151st
                                                        [Enlarge/Download Table]

                                                                                                      Number of    
                                                                Beginning of Year  End of Year   Accumulation Units
                                                                   Accumulation    Accumulation    End of Year (In 
                                                          Year      Unit Value      Unit Value        Thousands)   
                                                                                                                   
Harris Oakmark Focused Value Division/(c)/                2002        $25.16         $22.47                  3.1229
                                                          2001         24.38          25.16                       0

T. Rowe Price Mid-Cap Growth Division/(c)/                2002          8.22           4.51                  3.6017
                                                          2001          8.62           8.22                       0

Janus Mid Cap Division/(c)/                               2002         15.30          10.64                  2.9008
                                                          2001         17.81          15.30                       0

State Street Research Aggressive Growth Division/(c)/     2002         32.74          22.87                   .4919
                                                          2001         34.78          32.74                       0

Lord Abbett Bond Debenture Division/(b)/                  2002         10.25          10.18                   .2214
                                                          2001         10.53          10.25                       0

Russell 2000 Index Division/(c)/                          2002         11.78           9.18                  1.7578
                                                          2001         11.87          11.78                       0

T. Rowe Price Small Cap Growth Division/(c)/              2002         11.79           8.47                   .3818
                                                          2001         12.01          11.79                       0

Loomis Sayles Small Cap Division/(c)/                     2002         21.62          16.62                       0
                                                          2001         22.14          21.62                       0

State Street Research Aurora Division/(c)/                2002         13.88          10.69                  8.2857
                                                          2001         14.14          13.88                       0

Franklin Templeton Small Cap Growth Division/(c)/         2002          8.77           6.21                       0
                                                          2001          9.16           8.77                       0

PIMCO Innovation Division/(c)/                            2002          6.07           2.94                       0
                                                          2001          7.04           6.07                       0

Scudder Global Equity Division/(c)/                       2002         11.91           9.80                       0
                                                          2001         12.65          11.91                       0

Morgan Stanley EAFE Index Division/(c)/                   2002          8.48           6.93                  2.7043
                                                          2001          9.26           8.48                       0

MFS Research International Division/(c)/                  2002          8.34           7.23                       0
                                                          2001          9.00           8.34                       0

Putnam International Stock Division/(c)/                  2002         10.87           8.78                       0
                                                          2001         11.65          10.87                       0

American Funds Global Small Capitalization Division/(c)/  2002         13.23          10.49                  1.8158
                                                          2001         13.57          13.23                       0

FI Structured Equity Division/(d)/                        2002         21.74          17.83                       0

State Street Research Large Cap Value Division/(d)/       2002         10.00           7.90                       0

MET/AIM Mid Cap Core Equity Division/(d)/                 2002         11.37           9.62                       0

FI Mid Cap Opportunities Division/(d)/                    2002         10.00           8.09                       0

MET/AIM Small Cap Growth Division/(d)/                    2002         11.20           8.44                       0

Harris Oakmark International Division/(d)/                2002         10.89           8.78                       0

53

485BPOS
152nd Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 152nd
Table Q 
 L Class and Earnings Preservation Benefit

                                                        [Enlarge/Download Table]

                                                                                                     Number of      
                                                                  Beginning of Year  End of Year  Accumulation Units
                                                                     Accumulation   Accumulation   End of Year (In  
                                                             Year     Unit Value     Unit Value      Thousands)     
                                                                                                                    
Salomon Brothers U.S. Government Division/(c)/               2002      $ 14.41        $ 15.24                 .4125 
                                                             2001        14.15          14.41                     0 

Lehman Brothers Aggregate Bond Index Division/(c)/           2002        11.28          12.20                1.0937 
                                                             2001        11.08          11.28                     0 

State Street Research Bond Income Division/(a)/              2002        39.53          42.01                 .0154 
                                                             2001        38.52          39.53                     0 

PIMCO Total Return Division/(c)/                             2002        10.41          11.19                1.2915 
                                                             2001        10.24          10.41                     0 

Salomon Brothers Strategic Bond Opportunities Division/(c)/  2002        15.49          16.65                     0 
                                                             2001        15.22          15.49                     0 

State Street Research Diversified Division/(c)/              2002        34.30          29.01                     0 
                                                             2001        35.24          34.30                     0 

MetLife Stock Index Division/(c)/                            2002        34.54          26.34                 .7533 
                                                             2001        36.64          34.54                     0 

American Funds Growth-Income Division/(c)/                   2002        78.06          62.54                 .1809 
                                                             2001        81.42          78.06                     0 

Harris Oakmark Large Cap Value Division/(c)/                 2002        11.36           9.57                 .8243 
                                                             2001        11.55          11.36                     0 

T. Rowe Price Large Cap Growth Division/(c)/                 2002        11.39           8.59                     0 
                                                             2001        11.54          11.39                     0 

MFS Investors Trust Division/(c)/                            2002         8.22           6.44                 .1000 
                                                             2001         8.65           8.22                     0 

State Street Research Investment Trust Division/(c)/         2002        61.71          44.75                 .2177 
                                                             2001        66.22          61.71                     0 

MFS Research Managers Division/(c)/                          2002         8.28           6.16                     0 
                                                             2001         9.32           8.28                     0 

American Funds Growth Division/(c)/                          2002       104.95          77.79                 .4878 
                                                             2001       116.05         104.95                     0 

Janus Growth Division/(c)(e)/                                2002         7.73           5.26                     0 
                                                             2001         8.86           7.73                     0 

Davis Venture Value Division/(c)/                            2002        25.79          21.15                1.8080 
                                                             2001        26.55          25.79                     0 

Met/Putnam Voyager Division/(c)/                             2002         4.89           3.42                     0 
                                                             2001         5.37           4.89                     0 

MetLife Mid Cap Stock Index Division/(c)/                    2002        10.27           8.58                1.0901 
                                                             2001        10.39          10.27                     0 

Neuberger Berman Partners Mid Cap Value Division/(c)/        2002        14.90          13.22                 .6198 
                                                             2001        15.23          14.90                     0 

54

485BPOS
153rd Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 153rd
                                                        [Enlarge/Download Table]

                                                                                                    Number of      
                                                                Beginning of Year   End of Year  Accumulation Units
                                                                   Accumulation    Accumulation  End of Year (In   
                                                          Year      Unit Value      Unit Value     Thousands)      
                                                                                                                   

Harris Oakmark Focused Value Division/(c)/                2002        $25.49          $22.80                2.0177 
                                                          2001         24.68           25.49                     0 

T. Rowe Price Mid-Cap Growth Division/(c)/                2002          8.23            4.53                     0 
                                                          2001          8.63            8.23                     0 

Janus Mid Cap Division/(c)/                               2002         15.41           10.73                2.9064 
                                                          2001         17.93           15.41                     0 

State Street Research Aggressive Growth Division/(c)/     2002         33.42           23.38                     0 
                                                          2001         35.48           33.42                     0 

Lord Abbett Debenture Division/(b)/                       2002         10.33           10.27                 .1323 
                                                          2001         10.60           10.33                     0 

Russell 2000 Index Division/(c)/                          2002         11.84            9.24                 .6104 
                                                          2001         11.91           11.84                     0 

T. Rowe Price Small Cap Growth Division/(c)/              2002         11.88            8.55                3.4644 
                                                          2001         12.09           11.88                     0 

Loomis Sayles Small Cap Division/(c)/                     2002         21.87           16.84                 .6045 
                                                          2001         22.38           21.87                     0 

State Street Research Aurora Division/(c)/                2002         13.91           10.73                4.2927 
                                                          2001         14.17           13.91                     0 

Franklin Templeton Small Cap Growth Division/(c)/         2002          8.78            6.23                     0 
                                                          2001          9.17            8.78                     0 

PIMCO Innovation Division/(c)/                            2002          6.08            2.95                     0 
                                                          2001          7.04            6.08                     0 

Scudder Global Equity Division/(c)/                       2002         11.99            9.89                     0 
                                                          2001         12.74           11.99                     0 

Morgan Stanley EAFE Index Division/(c)/                   2002          8.52            6.98                 .8081 
                                                          2001          9.30            8.52                     0 

MFS Research International Division/(c)/                  2002          8.35            7.25                     0 
                                                          2001          9.01            8.35                     0 

Putnam International Stock Division/(c)/                  2002         11.04            8.94                3.5151 
                                                          2001         11.83           11.04                     0 

American Funds Global Small Capitalization Division/(c)/  2002         13.30           10.57                 .0600 
                                                          2001         13.64           13.30                     0 

FI Structured Equity Division/(d)/                        2002         22.03           18.09                     0 

State Street Research Large Cap Value Division/(d)/       2002         10.00            7.91                 .2071 

MET/AIM Mid Cap Core Equity Division/(d)/                 2002         11.37            9.64                 .1751 

FI Mid Cap Opportunities Division/(d)/                    2002         10.00            8.09                     0 

MET/AIM Small Cap Growth Division/(d)/                    2002         11.21            8.46                     0 

Harris Oakmark International Division/(d)/                2002         10.90            8.80                     0 

55

485BPOS
154th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 154th
Table R 
 Bonus class and Earnings Preservation Benefit

                                                        [Enlarge/Download Table]

                                                                                                       Number of     
                                                                  Beginning of Year   End of Year  Accumulation Units
                                                                     Accumulation    Accumulation   End of Year (In  
                                                             Year     Unit Value      Unit Value      Thousands)     
                                                                                                                     

Salomon Brothers U.S. Government Division/(c)/               2002      $ 14.20         $ 14.99                2.5467 
                                                             2001        13.96           14.20                     0 

Lehman Brothers Aggregate Bond Index Division/(c)/           2002        11.21           12.10                2.2595 
                                                             2001        11.02           11.21                     0 

State Street Research Bond Income Division/(a)/              2002        38.09           40.40                3.3286 
                                                             2001        37.51           38.09                     0 

PIMCO Total Return Division/(c)/                             2002        10.39           11.15                6.2102 
                                                             2001        10.23           10.39                     0 

Salomon Brothers Strategic Bond Opportunities Division/(c)/  2002        15.27           16.38                2.7433 
                                                             2001        15.01           15.27                     0 

State Street Research Diversified Division/(c)/              2002        33.25           28.07                2.7417 
                                                             2001        34.19           33.25                     0 

MetLife Stock Index Division/(c)/                            2002        33.75           25.68                3.4064 
                                                             2001        35.82           33.75                     0 

American Funds Growth-Income Division/(c)/                   2002        75.32           60.22                1.0498 
                                                             2001        78.62           75.32                     0 

Harris Oakmark Large Cap Value Division/(c)/                 2002        11.29            9.49               20.6462 
                                                             2001        11.48           11.29                     0 

T. Rowe Price Large Cap Growth Division/(c)/                 2002        11.32            8.52                     0 
                                                             2001        11.48           11.32                     0 

MFS Investors Trust Division/(c)/                            2002         8.17            6.39                3.5832 
                                                             2001         8.61            8.17                     0 

State Street Research Investment Trust Division/(c)/         2002        59.47           43.03                1.9423 
                                                             2001        63.86           59.47                     0 

MFS Research Managers Division/(c)/                          2002         8.26            6.14                6.5362 
                                                             2001         9.28            8.26                     0 

American Funds Growth Division/(c)/                          2002       101.26           74.90                 .7485 
                                                             2001       112.06          101.26                     0 

Janus Growth Division/(c)(e)/                                2002         7.72            5.25                 .6830 
                                                             2001         8.86            7.72                     0 

Davis Venture Value Division/(c)/                            2002        25.43           20.81                1.5947 
                                                             2001        26.19           25.43                     0 

Met/Putnum Voyager Division/(c)/                             2002         4.88            3.40                1.1113 
                                                             2001         5.36            4.88                     0 

MetLife Mid Cap Stock Index Division/(c)/                    2002        10.24            8.53                3.7987 
                                                             2001        10.37           10.24                     0 

Neuberger Berman Partners Mid Cap Value Division/(c)/        2002        14.81           13.11                2.6395 
                                                             2001        15.15           14.81                     0 

56

485BPOS
155th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 155th
                                                        [Enlarge/Download Table]

                                                                                                   Number of      
                                                               Beginning of Year   End of Year  Accumulation Units
                                                                  Accumulation    Accumulation    End of Year (In 
                                                          Year     Unit Value      Unit Value       Thousands)    
                                                                                                                  
Harris Oakmark Focused Value Division/(c)/                2002      $25.06           $22.36                6.0054 
                                                          2001       24.28            25.06                     0 

T. Rowe Price Mid-Cap Growth Division/(c)/                2002        8.22             4.51               11.8796 
                                                          2001        8.62             8.22                     0 

Janus Mid Cap Division/(c)/                               2002       15.26            10.61                2.0466 
                                                          2001       17.77            15.26                     0 

State Street Research Aggressive Growth Division/(c)/     2002       32.51            22.71                     0 
                                                          2001       34.55            32.51                     0 

Lord Abbett Bond Debenture Division/(b)/                  2002       10.23            10.15                1.3914 
                                                          2001       10.51            10.23                     0 

Russell 2000 Index Division/(c)/                          2002       11.77             9.16                2.8075 
                                                          2001       11.85            11.77                     0 

T. Rowe Price Small Cap Growth Division/(c)/              2002       11.77             8.45                2.5386 
                                                          2001       11.98            11.77                     0 

Loomis Sayles Small Cap Division/(c)/                     2002       21.54            16.55                1.3993 
                                                          2001       22.06            21.54                     0 

State Street Research Aurora Division/(c)/                2002       13.88            10.68               15.4991 
                                                          2001       14.14            13.88                     0 

Franklin Templeton Small Cap Growth Division/(c)/         2002        8.76             6.20               11.8001 
                                                          2001        9.16             8.76                     0 

PIMCO Innovation Division/(c)/                            2002        6.06             2.94               11.9786 
                                                          2001        7.03             6.06                     0 

Scudder Global Equity Division/(c)/                       2002       11.88             9.77                8.0896 
                                                          2001       12.63            11.88                     0 

Morgan Stanley EAFE Index Division/(c)/                   2002        8.46             6.92                3.0721 
                                                          2001        9.25             8.46                     0 

MFS Research International Division/(c)/                  2002        8.34             7.22                 .1208 
                                                          2001        9.00             8.34                     0 

Putnam International Stock Division/(c)/                  2002       10.81             8.73                     0 
                                                          2001       11.59            10.81                     0 

American Funds Global Small Capitalization Division/(c)/  2002       13.21            10.47                1.3191 
                                                          2001       13.55            13.21                     0 

FI Structured Equity Division/(d)/                        2002       21.64            17.75                     0 

State Street Research Large Cap Value Division/(d)/       2002       10.00             7.89                 .4766 

MET/AIM Mid Cap Core Equity Division/(d)/                 2002       11.36             9.61                     0 

FI Mid Cap Opportunities Division/(d)/                    2002       10.00             8.08                 .2585 

MET/AIM Small Cap Growth Division/(d)/                    2002       11.20             8.44                 .2441 

Harris Oakmark International Division/(d)/                2002       10.89             8.78                     0 


57

485BPOS
156th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 156th
Table S 
 B Class, Annual Step-Up Death Benefit and Earnings Preservation Benefit

                                                        [Enlarge/Download Table]

                                                                                                       Number of     
                                                                  Beginning of Year   End of Year  Accumulation Units
                                                                     Accumulation    Accumulation    End of Year (In 
                                                             Year     Unit Value      Unit Value       Thousands)    
                                                                                                                     
Salomon Brothers U.S. Government Division/(c)/               2002     $ 14.57         $ 15.43                 22.5669
                                                             2001       14.29           14.57                       0

Lehman Brothers Aggregate Bond Index Division/(c)/           2002       11.34           12.28                 31.7367
                                                             2001       11.13           11.34                       0

State Street Research Bond Income Division/(a)/              2002       40.64           43.25                 18.9125
                                                             2001       39.58           40.64                       0

PIMCO Total Return Division/(c)/                             2002       10.43           11.22                 35.0486
                                                             2001       10.24           10.43                 1850.16

Salomon Brothers Strategic Bond Opportunities Division/(c)/  2002       15.66           16.86                 35.4347
                                                             2001       15.37           15.66                       0

State Street Research Diversified Division/(c)/              2002       35.11           29.74                  3.9718
                                                             2001       36.05           35.11                  409.17

MetLife Stock Index Division/(c)/                            2002       35.15           26.84                  9.1263
                                                             2001       37.26           35.15                  271.16

American Funds Growth-Income Division/(c)/                   2002       80.19           64.34                  4.3871
                                                             2001       83.58           80.19                       0

Harris Oakmark Large Cap Value Division/(c)/                 2002       11.42            9.63                 91.2024
                                                             2001       11.59           11.42                  842.15

T. Rowe Price Large Cap Growth Division/(c)/                 2002       11.45            8.64                  3.4582
                                                             2001       11.59           11.45                       0

MFS Investors Trust Division/(c)/                            2002        8.25            6.48                   .8737
                                                             2001        8.68            8.25                       0

State Street Research Investment Trust Division/(c)/         2002       63.45           46.08                  1.7484
                                                             2001       68.04           63.45                       0

MFS Research Managers Division/(c)/                          2002        8.29            6.18                   .5521
                                                             2001        9.36            8.29                       0

American Funds Growth Division/(c)/                          2002      107.81           80.03                  9.5134
                                                             2001      119.13          107.81                       0

Janus Growth Division/(c)(e)/                                2002        7.74            5.28                 13.0307
                                                             2001        8.86            7.74                       0

Davis Venture Value Division/c)/                             2002       26.07           21.41                  2.0661
                                                             2001       26.82           26.07                  552.03

Met/Putnum Voyager Division/(c)/                             2002        4.91            3.43                  5.9181
                                                             2001        5.38            4.91                       0

MetLife Mid Cap Stock Index Division/(c)/                    2002       10.29            8.61                 18.6688
                                                             2001       10.41           10.29                       0

Neuberger Berman Partners Mid Cap Value Division/(c)/        2002       14.97           13.30                  4.5748
                                                             2001       15.30           14.97                       0


58

485BPOS
157th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 157th
                                                        [Enlarge/Download Table]

                                                                                                    Number of     
                                                               Beginning of Year   End of Year  Accumulation Units
                                                                  Accumulation    Accumulation    End of Year (In 
                                                          Year     Unit Value      Unit Value       Thousands)    
                                                                                                                  

Harris Oakmark Focused Value Division/(c)/                2002       $25.83          $23.13               47.7370 
                                                          2001        24.99           25.83                     0 

T. Rowe Price Mid-Cap Growth Division/(c)/                2002         8.24            4.54                3.6533 
                                                          2001         8.63            8.24                     0 

Janus Mid Cap Division/(c)/                               2002        15.52           10.82               49.9533 
                                                          2001        18.05           15.52                     0 

State Street Research Aggressive Growth Division/(c)/     2002        34.11           23.90                2.8567 
                                                          2001        36.20           34.11                     0 

Lord Abbett Bond Debenture Division/(b)/                  2002        10.40           10.36                4.6209 
                                                          2001        10.67           10.40                     0 

Russell 2000 Index Division/(c)/                          2002        11.90            9.30                9.4152 
                                                          2001        11.96           11.90                     0 

T. Rowe Price Small Cap Growth Division/(c)/              2002        11.97            8.62                 .6163 
                                                          2001        12.17           11.97                     0 

Loomis Sayles Small Cap Division/(c)/                     2002        22.13           17.06                 .2657 
                                                          2001        22.62           22.13                     0 

State Street Research Aurora Division/(c)/                2002        13.94           10.77               80.5334 
                                                          2001        14.19           13.94                689.30 

Franklin Templeton Small Cap Growth Division/(c)/         2002         8.79            6.24               85.9216 
                                                          2001         9.17            8.79                     0 

PIMCO Innovation Division/(c)/                            2002         6.08            2.96                8.1934 
                                                          2001         7.05            6.08                     0 

Scudder Global Equity Division/(c)/                       2002        12.08            9.97               57.2385 
                                                          2001        12.82           12.08                798.89 

Morgan Stanley EAFE Index Division/(c)/                   2002         8.56            7.02               21.2278 
                                                          2001         9.33            8.56               1134.30 

MFS Research International Division/(c)/                  2002         8.36            7.27                4.7265 
                                                          2001         9.01            8.36                     0 

Putnam International Stock Division/(c)/                  2002        11.22            9.10                3.3054 
                                                          2001        12.01           11.22                     0 

American Funds Global Small Capitalization Division/(c)/  2002        13.38           10.64               50.0659 
                                                          2001        13.71           13.38                     0 

FI Structured Equity Division/(d)/                        2002        22.33           18.36                 .1216 

State Street Research Large Cap Value Division/(d)/       2002        10.00            7.91                 .1086 

MET/AIM Mid Cap Core Equity Division/(d)/                 2002        11.38            9.65                2.4648 

FI Mid Cap Opportunities Division/(d)/                    2002        10.00            8.10                1.0274 

MET/AIM Small Cap Growth Division/(d)/                    2002        11.22            8.47                2.3110 

Harris Oakmark International Division/(d)/                2002        10.90            8.82                 .2576 

59

485BPOS
158th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 158th
 Table T

 C Class, Annual Step-Up Death Benefit and Earnings Preservation Benefit

                                                        [Enlarge/Download Table]

                                                                                                        Number of    
                                                                  Beginning of Year   End of Year  Accumulation Units
                                                                     Accumulation    Accumulation    End of Year (In 
                                                             Year     Unit Value      Unit Value       Thousands)    
                                                                                                                     
Salomon Brothers U.S. Government Division/(c)/               2002     $ 14.15         $ 14.93            1.3551      
                                                             2001       13.91           14.15                 0      

Lehman Brothers Aggregate Bond Index Division/(c)/           2002       11.19           12.07            2.0481      
                                                             2001       11.01           11.19                 0      

State Street Research Bond Income Division/(a)/              2002       37.74           40.00                 0      
                                                             2001       36.82           37.74                 0      

PIMCO Total Return Division/(c)/                             2002       10.39           11.14             .9084      
                                                             2001       10.22           10.39                 0      

Salomon Brothers Strategic Bond Opportunities Division/(c)/  2002       15.22           16.31                 0      
                                                             2001       14.96           15.22                 0      

State Street Research Diversified Division/(c)/              2002       33.00           27.84                 0      
                                                             2001       33.94           33.00                 0      

Metlife Stock Index Division/(c)/                            2002       35.55           25.52            1.0025      
                                                             2001       35.62           35.55                 0      

American Funds Growth-Income Division/(c)/                   2002       74.65           59.65                 0      
                                                             2001       77.93           74.65                 0      

Harris Oakmark Large Cap Value Division/(c)/                 2002       11.28            9.47            2.1428      
                                                             2001       11.47           11.28                 0      

T. Rowe Price Large Cap Growth Division/(c)/                 2002       11.30            8.50            5.9123      
                                                             2001       11.47           11.30                 0      

MFS Investors Trust Division/(c)/                            2002        8.16            6.38                 0      
                                                             2001        8.61            8.16                 0      

State Street Research Investment Trust Division/(c)/         2002       58.92           42.61                 0      
                                                             2001       63.28           58.92                 0      

MFS Research Managers Division/(c)/                          2002        8.26            6.14                 0      
                                                             2001        9.27            8.26                 0      

American Funds Growth Division/(c)/                          2002      100.35           74.20                 0      
                                                             2001      111.08          100.35                 0      

Janus Growth Division/(c)(e)/                                2002        7.72            5.24                 0      
                                                             2001        8.85            7.72                 0      

Davis Venture Value Division/(c)/                            2002       25.34           20.72                 0      
                                                             2001       26.10           25.34                 0      

Met/Putnam Voyager Division/(c)/                             2002        4.87            3.39                 0      
                                                             2001        5.35            4.87                 0      

Metlife Mid Cap Stock Index Division/(c)/                    2002       10.23            8.52             .9915      
                                                             2001       10.36           10.23                 0      

Neuberger Berman Partners Mid Cap Value Division/(c)/        2002       14.79           13.09                 0      
                                                             2001       15.13           14.79                 0      

60

485BPOS
159th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 159th
                                                        [Enlarge/Download Table]

                                                                                                    Number of     
                                                                Beginning of Year  End of Year  Accumulation Units
                                                                   Accumulation   Accumulation    End of Year (In 
                                                          Year      Unit Value     Unit Value       Thousands)    
                                                                                                                  
Harris Oakmark Focused Value Division/(c)/                2002         $24.95         $22.26               .4559  
                                                          2001          24.18          24.95                   0  

T. Rowe Price Mid-Cap Growth Division/(c)/                2002           8.21           4.50              1.4808  
                                                          2001           8.62           8.21                   0  

Janus Mid Cap Division/(c)/                               2002          15.23          10.57               1.272  
                                                          2001          17.73          15.23                   0  

State Street Research Aggressive Growth Division/(c)/     2002          32.29          22.54                   0  
                                                          2001          34.33          32.29                   0  

Lord Abbett Bond Debenture Division/(b)/                  2002          10.20          10.12                   0  
                                                          2001          10.49          10.20                   0  

Russell 2000 Index Division/(c)/                          2002          11.75           9.14              2.7949  
                                                          2001          11.83          11.75                   0  

T. Rowe Price Small Cap Growth Division/(c)/              2002          11.74           8.42                   0  
                                                          2001          11.95          11.74                   0  

Loomis Sayles Small Cap Division/(c)/                     2002          21.46          16.48                   0  
                                                          2001          21.98          21.46                   0  

State Street Research Aurora Division/(c)/                2002          13.86          10.66              1.8810  
                                                          2001          14.13          13.86                   0  

Franklin Templeton Small Cap Growth Division/(c)/         2002           8.76           6.20                   0  
                                                          2001           9.16           8.76                   0  

PIMCO Innovation Division/(c)/                            2002           6.06           2.94                   0  
                                                          2001           7.03           6.06                   0  

Scudder Global Equity Division/(c)/                       2002          11.85           9.74                   0  
                                                          2001          12.60          11.85                   0  

Morgan Stanley EAFE Index Division/(c)/                   2002           8.45           6.90                   0  
                                                          2001           9.23           8.45                   0  

MFS Research International Division/(c)/                  2002           8.33           7.22                   0  
                                                          2001           8.99           8.33                   0  

Putnam International Stock Division/(c)/                  2002          10.75           8.68                   0  
                                                          2001          11.53          10.75                   0  

American Funds Global Small Capitalization Division/(c)/  2002          13.18          10.44              1.9212  
                                                          2001          13.53          13.18                   0  

FI Structured Equity Division/(d)/                        2002          21.54          17.66                   0  

State Street Research Large Cap Value Division/(d)/       2002          10.00           7.89                   0  

MET/AIM Mid Cap Core Equity Division/(d)/                 2002          11.36           9.61                   0  

FI Mid Cap Opportunities Division/(d)/                    2002          10.00           8.08                   0  

MET/Aim Small Cap Growth Division/(d)/                    2002          11.19           8.43                   0  

Harris Oakmark International Division/(d)/                2002          10.89           8.77                   0  

61

485BPOS
160th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 160th
 Table U

L Class, Annual Step-Up Death Benefit and Earnings Preservation Benefit 

                                                        [Enlarge/Download Table]

                                                                                                       Number of     
                                                                  Beginning of Year   End of Year  Accumulation Units
                                                                     Accumulation    Accumulation    End of Year (In 
                                                             Year     Unit Value      Unit Value       Thousands)    
                                                                                                                     
Salomon Brothers U.S. Government Division/(c)/               2002      $ 14.31         $ 15.11                  .5155
                                                             2001        14.05           14.31                      0

Lehman Brothers Aggregate Bond Index Division/(c)/           2002        11.25           12.15                      0
                                                             2001        11.05           11.25                      0

State Street Research Bond Income Division/(a)/              2002        38.80           41.19                      0
                                                             2001        37.83           38.80                      0

PIMCO Total Return Division/(c)/                             2002        10.40           11.17                 2.8294
                                                             2001        10.23           10.40                      0

Salomon Brothers Strategic Bond Opportunities Division/(c)/  2002        15.38           16.52                  .2458
                                                             2001        15.11           15.38                      0

State Street Research Diversified Division/(c)/              2002        33.77           28.54                 2.2448
                                                             2001        34.71           33.77                      0

Metlife Stock Index Division/(c)/                            2002        34.14           26.01                  .0310
                                                             2001        36.23           34.14                      0

American Funds Growth-Income Division/(c)/                   2002        76.68           61.37                  .5949
                                                             2001        80.00           76.68                      0

Harris Oakmark Large Cap Value Division/(c)/                 2002        11.33            9.53                  .0856
                                                             2001        11.51           11.33                      0

T.Rowe Price Large Cap Growth Division/(c)/                  2002        11.36            8.55                  .0944
                                                             2001        11.51           11.36                      0

MFS Investors Trust Division/(c)/                            2002         8.20            6.42                      0
                                                             2001         8.63            8.20                      0

State Street Research Investment Trust Division/(c)/         2002        60.58           43.88                  .0183
                                                             2001        65.03           60.58                      0

MFS Research Managers Division/(c)/                          2002         8.27            6.15                      0
                                                             2001         9.30            8.27                      0

American Funds Growth Division/(c)/                          2002       103.09           76.33                      0
                                                             2001       114.03          103.09                      0

Janus Growth Division/(c)(e)/                                2002         7.72            5.25                      0
                                                             2001         8.86            7.72                      0

Davis Venture Value Division/(c)/                            2002        25.61           20.98                      0
                                                             2001        26.37           25.61                      0

Met/Putnam Voyager Division/(c)/                             2002         4.89            3.41                      0
                                                             2001         5.36            4.89                      0

Metlife Mid Cap Stock Index Division/(c)/                    2002        10.25            8.55                  .0952
                                                             2001        10.38           10.25                      0

Neuberger Berman Partners Mid Cap Value Division/(c)/        2002        14.79           13.17                      0
                                                             2001        15.19           14.79                      0

62

485BPOS
161st Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 161st
                                                        [Enlarge/Download Table]

                                                                                                    Number of     
                                                               Beginning of Year   End of Year  Accumulation Units
                                                                  Accumulation    Accumulation    End of Year (In 
                                                          Year     Unit Value      Unit Value       Thousands)    
                                                                                                                  
Harris Oakmark Focused Value Division/(c)/                2002       $25.27          $22.58               1.3063  
                                                          2001        24.48           25.27                    0  

T. Rowe Price Mid-Cap Growth Division/(c)/                2002         8.22            4.52                    0  
                                                          2001         8.62            8.22                    0  

Janus Mid Cap Division/(c)/                               2002        15.34           10.67                    0  
                                                          2001        17.85           15.34                    0  

State Street Research Aggressive Growth Division/(c)/     2002        32.96           23.04                    0  
                                                          2001        35.02           32.96                    0  

Lord Abbett Bond Debenture Division/(b)/                  2002        10.28           10.21               1.1901  
                                                          2001        10.56           10.28                    0  

Russell 2000 Index Division/(c)/                          2002        11.80            9.20                .0879  
                                                          2001        11.88           11.80                    0  

T. Rowe Price Small Cap Growth Division/(c)/              2002        11.82            8.50                    0  
                                                          2001        12.03           11.82                    0  

Loomis Sayles Small Cap Division/(c)/                     2002        21.71           16.70                    0  
                                                          2001        22.22           21.71                    0  

State Street Research Aurora Division/(c)/                2002        13.89           10.70               2.6851  
                                                          2001        14.15           13.89                    0  

Franklin Templeton Small Cap Growth Division/(c)/         2002         8.77            6.21                    0  
                                                          2001         9.17            8.77                    0  

PIMCO Innovation Division/(c)/                            2002         6.07            2.95                .3955  
                                                          2001         7.04            6.07                    0  

Scudder Global Equity Division/(c)/                       2002        11.94            9.83                    0  
                                                          2001        12.68           11.94                    0  

Morgan Stanley EAFE Index Division/(c)/                   2002         8.49            6.95                    0  
                                                          2001         9.27            8.49                    0  

MFS Research International Division/(c)/                  2002         8.34            7.24                    0  
                                                          2001         9.00            8.34                    0  

Putnam International Stock Division/(c)/                  2002        10.92            8.83                    0  
                                                          2001        11.71           10.92                    0  

American Funds Global Small Capitalization Division/(c)/  2002        13.25           10.52                    0  
                                                          2001        13.60           13.25                    0  

FI Structured Equity Division/(d)/                        2002        21.83           17.92                    0  

State Street Research Large Cap Value Division/(d)/       2002        10.00            7.90                    0  

MET/AIM Mid Cap Core Equity Division/(d)/                 2002        11.37            9.63                    0  

FI Mid Cap Opportunities Division/(d)/                    2002        10.00            8.09                    0  

Met/AIM Small Cap Growth Division/(d)/                    2002        11.20            8.45                    0  

Harris Oakmark International Division/(d)/                2002        10.90            8.79                    0  

63

485BPOS
162nd Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 162nd
Table V 
 Bonus Class, Annual Step-Up Death Benefit and Earnings Preservation Benefit

                                                        [Enlarge/Download Table]

                                                                                                        Number of    
                                                                  Beginning of Year   End of Year  Accumulation Units
                                                                     Accumulation    Accumulation    End of Year (In 
                                                             Year     Unit Value      Unit Value       Thousands)    
                                                                                                                     
Salomon Brothers U.S. Government Division/(c)/               2002      $ 14.10          $14.87                 5.6375
                                                             2001        13.87           14.10                      0

Lehman Brothers Aggregate Bond Index Division/(c)/           2002        11.18           12.05                 7.9598
                                                             2001        10.99           11.18                      0

State Street Research Bond Income Division/(a)/              2002        37.39           39.62                  .3843
                                                             2001        36.48           37.39                      0

PIMCO Total Return Division/(c)/                             2002        10.38           11.13                10.2426
                                                             2001        10.22           10.38                3328.47

Salomon Brothers Strategic Bond Opportunities Division/(c)/  2002        15.16           16.25                 2.9726
                                                             2001        14.91           15.16                1812.32

State Street Research Diversified Division/(c)/              2002        32.74           27.61                 1.8291
                                                             2001        33.68           32.74                      0

MetLife Stock Index Division/(c)/                            2002        33.36           25.36                 2.7050
                                                             2001        35.42           33.36                      0

American Funds Growth-Income Division/(c)/                   2002        73.98           59.09                  .6534
                                                             2001        77.25           73.98                      0

Harris Oakmark Large Cap Value Division/(c)/                 2002        11.26            9.45                14.4342
                                                             2001        11.45           11.26                5439.33

T. Rowe Price Large Cap Growth Division/(c)/                 2002        11.29            8.48                 1.7224
                                                             2001        11.45           11.29                1014.32

MFS Investors Trust Division/(c)/                            2002         8.15            6.37                 1.3949
                                                             2001         8.60            8.15                1399.68

State Street Research Investment Trust Division/(c)/         2002        58.37           42.20                  .4487
                                                             2001        62.71           58.37                      0

MFS Research Managers Division/(c)/                          2002         8.25            6.13                      0
                                                             2001         9.26            8.25                      0

American Funds Growth Division/(c)/                          2002        99.46           73.50                   .444
                                                             2001       110.11           99.46                314.004

Janus Growth Division/(c)(e)/                                2002         7.71            5.24                 3.1103
                                                             2001         8.85            7.71                1784.28

Davis Venture Value Division/(c)/                            2002        25.24           20.64                 2.2677
                                                             2001        26.01           25.24               1350.353

Met/Putnum Voyager Division/(c)/                             2002         4.87            3.39                 1.0072
                                                             2001         5.35            4.87                      0

MetLife Mid Cap Stock Index Division/(c)/                    2002        10.22            8.51                 1.1307
                                                             2001        10.36           10.22                      0

Neuberger Berman Partners Mid Cap Value Division/(c)/        2002        14.76           13.06                 2.9219
                                                             2001        15.11           14.76               2173.338

64

485BPOS
163rd Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 163rd
                                                        [Enlarge/Download Table]

                                                                                                     Number of     
                                                               Beginning of Year   End of Year  Accumulation Units 
                                                                  Accumulation    Accumulation    End of Year (In  
                                                          Year     Unit Value      Unit Value       Thousands)     
                                                                                                                   

Harris Oakmark Focused Value Division/(c)/                2002       $24.84          $22.15                   6.607
                                                          2001        24.08           24.84                 815.114

T. Rowe Price Mid-Cap Growth Division/(c)/                2002         8.21            4.50                   .1363
                                                          2001         8.62            8.21                       0

Janus Mid Cap Division/(c)/                               2002        15.19           10.54                  1.3453
                                                          2001        17.69           15.19                 1345.27

State Street Research Aggressive Growth Division/(c)/     2002        32.07           22.38                       0
                                                          2001        34.10           32.07                       0

Lord Abbett Bond Debenture Division/(b)/                  2002        10.18           10.09                       0
                                                          2001        10.46           10.18                       0

Russell 2000 Index Division/(c)/                          2002        11.73            9.13                   .2813
                                                          2001        11.82           11.73                       0

T. Rowe Price Small Cap Growth Division/(c)/              2002        11.71            8.40                   .3178
                                                          2001        11.93           11.71                       0

Loomis Sayles Small Cap Division/(c)/                     2002        21.38           16.41                   .2659
                                                          2001        21.90           21.38                 266.962

State Street Research Aurora Division/(c)/                2002        13.84           10.65                 18.2215
                                                          2001        14.12           13.84                3202.883

Franklin Templeton Small Cap Growth Division/(c)/         2002         8.76            6.19                       0
                                                          2001         9.16            8.76                       0

PIMCO Innovation Division/(c)/                            2002         6.06            2.93                   .5666
                                                          2001         7.03            6.06                       0

Scudder Global Equity Division/(c)/                       2002        11.82            9.71                  1.6751
                                                          2001        12.57           11.82                       0

Morgan Stanley EAFE Index Division/(c)/                   2002         8.44            6.89                  4.0190
                                                          2001         9.22            8.44                 4206.93

MFS Research International Division/(c)/                  2002         8.33            7.21                   .0438
                                                          2001         8.99            8.33                       0

Putnam International Stock Division/(c)/                  2002        10.69            8.63                  5.3893
                                                          2001        11.47           10.69                 5120.68

American Funds Global Small Capitalization Division/(c)/  2002        13.16           10.42                   .9952
                                                          2001        13.51           13.16                 438.834

FI Structured Equity Division/(d)/                        2002        21.44           17.57                   .2145

State Street Research Large Cap Value Division/(d)/       2002        10.00            7.89                       0

MET/AIM Mid Cap Core Equity Division/(d)/                 2002        11.36            9.60                  1.6125

FI Mid Cap Opportunities Division/(d)/                    2002        10.00            8.08                   .0638

MET/AIM Small Cap Growth Division/(d)/                    2002        11.19            8.43                   .0607

Harris Oakmark International Division/(d)/                2002        10.89            8.77                       0

/(a)/The assets in this investment division merged into the State Street        
   Research Bond Income Division on April 29, 2002. Accumulation unit values
     prior to April 29, 2002 are those of State Street Research Income Division.

/(b)/The assets in this investment division merged into the Lord Abbett Bond    
 Debenture Division on April 29, 2002. Accumulation unit values prior to
April 29, 2002 are those of Loomis Sayles High Yield Bond Division.   

/(c)/Inception date: August 3, 2001.                                            

/(d)/Inception date: May 1, 2002.                                               

/(e)/The assets in this investment division merged into the Janus Aggressive    
  Growth Division on April 28, 2003. This investment division is no longer
available under the Deferred Annuity.                                 

65

485BPOS
164th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 164th
INDEPENDENT AUDITORS' REPORT  

To the Policyholders of                                                         
Metropolitan Life Separate Account E                                            
and the Board of Directors of                                                   
Metropolitan 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 Metropolitan Life Separate Account E (the "Separate Account") of     
Metropolitan Life Insurance Company as of December 31, 2002, and the related    
statement of operations for the period then ended, and the statements 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 custodians and the    
depositors 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 Metropolitan Life Separate Account E of Metropolitan Life Insurance  
Company as of December 31, 2002, and the results of their operations for the    
period 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                                                                  

March 24, 2003                                                                  

F-1 

485BPOS
165th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 165th
Metropolitan Life Separate Account E  

STATEMENT OF ASSETS AND LIABILITIES 
AT DECEMBER 31, 2002  

                                                        [Enlarge/Download Table]

                                                                                Metropolitan Fund                        
                                                        -----------------------------------------------------------------

                                                          State Street                                      State Street 
                                                            Research                                          Research   
                                                        Investment Trust Variable B  Variable C Variable D  Diversified  
                                                           Portfolio     Portfolio   Portfolio  Portfolio    Portfolio   
                                                        ---------------- ----------- ---------- ---------- --------------
                                                                                                                         
ASSETS:                                                                                                                  
Investments at Value:                                                                                                    
Metropolitan Fund                                                                                                        
State Street Research Investment Trust Portfolio                                                                         
 (62,564,716 Shares; cost $2,069,419,451)..............  $1,196,193,540  $        -- $       --  $    --   $           --
Variable B Portfolio                                                                                                     
 (1,931,870 Shares; cost $61,472,461)..................              --   36,937,355         --       --               --
Variable C Portfolio                                                                                                     
 (61,225 Shares; cost $1,948,863)......................              --           --  1,170,621       --               --
Variable D Portfolio                                                                                                     
 (1,245 Shares; cost $34,391)..........................              --           --         --   23,813               --
State Street Research Diversified Portfolio                                                                              
 (105,258,642 Shares; cost $1,817,406,651).............              --           --         --       --    1,375,721,650
State Street Research Aggressive Growth Portfolio                                                                        
 (42,277,613 Shares; cost $1,146,825,141)..............              --           --         --       --               --
MetLife Stock Index Portfolio                                                                                            
 (91,801,612 Shares; cost $2,885,238,954)..............              --           --         --       --               --
Putnam International Stock Portfolio                                                                                     
 (19,113,816 Shares; cost $177,461,823)................              --           --         --       --               --
Janus Mid Cap Portfolio                                                                                                  
 (50,373,567 Shares; cost $1,311,330,492)..............              --           --         --       --               --
T. Rowe Price Small Cap Growth Portfolio                                                                                 
 (18,817,992 Shares; cost $193,565,454)................              --           --         --       --               --
Scudder Global Equity Portfolio                                                                                          
 (13,582,164 Shares; cost $174,103,183)................              --           --         --       --               --
Harris Oakmark Large Cap Value Portfolio                                                                                 
 (22,621,550 Shares; cost $248,479,877)................              --           --         --       --               --
Neuberger Berman Partners Mid Cap Value Portfolio                                                                        
 (10,775,870 Shares; cost $151,477,247)................              --           --         --       --               --
T. Rowe Price Large Cap Growth Portfolio                                                                                 
 (11,649,075 Shares; cost $154,802,359)................              --           --         --       --               --
Lehman Brothers Aggregate Bond Index Portfolio                                                                           
 (26,459,687 Shares; cost $272,639,938)................              --           --         --       --               --
Morgan Stanley EAFE Index Portfolio                                                                                      
 (14,457,554 Shares; cost $122,732,892)................              --           --         --       --               --
Russell 2000 Index Portfolio                                                                                             
 (13,363,288 Shares; cost $146,125,445)................              --           --         --       --               --
Putnam Large Cap Growth Portfolio                                                                                        
 (6,371,868 Shares; cost $32,099,084)..................              --           --         --       --               --
State Street Research Aurora Portfolio                                                                                   
 (20,569,583 Shares; cost $282,196,914)................              --           --         --       --               --
MetLife Mid Cap Stock Index Portfolio                                                                                    
 (12,068,412 Shares; cost $123,033,051)................              --           --         --       --               --
Janus Growth Portfolio                                                                                                   
 (1,838,115 Shares; cost $11,938,091)..................              --           --         --       --               --
Franklin Templeton Small Cap Growth Portfolio                                                                            
 (1,819,673 Shares; cost $12,345,495)..................              --           --         --       --               --
State Street Research Large Cap Value Portfolio                                                                          
 (393,784 Shares; cost $3,184,323).....................              --           --         --       --               --
Zenith Fund                                                                                                              
State Street Research Bond Income Portfolio                                                                              
 (4,211,961 Shares; cost $446,943,990).................              --           --         --       --               --
State Street Research Money Market Portfolio                                                                             
 (91,630 Shares; cost $9,162,957)......................              --           --         --       --               --
Davis Venture Value Portfolio                                                                                            
 (3,051,394 Shares; cost $74,325,359)..................              --           --         --       --               --
Loomis Sayles Small Cap Portfolio                                                                                        
 (114,725 Shares; cost $18,970,437)....................              --           --         --       --               --
MFS Investors Trust Portfolio                                                                                            
 (986,586 Shares; cost $7,723,533).....................              --           --         --       --               --
MFS Research Managers Portfolio                                                                                          
 (358,130 Shares; cost $2,910,163).....................              --           --         --       --               --
Harris Oakmark Focused Value Portfolio                                                                                   
 (858,266 Shares; cost $154,917,325)...................              --           --         --       --               --
Salomon Brothers Strategic Bond Opportunities Portfolio                                                                  
 (2,580,845 Shares; cost $28,689,516)..................              --           --         --       --               --
Salomon Brothers U.S. Government Portfolio                                                                               
 (7,339,695 Shares; cost $88,918,636)..................              --           --         --       --               --
                                                         --------------  ----------- ----------  -------   --------------
Total investments......................................   1,196,193,540   36,937,355  1,170,621   23,813    1,375,721,650
Cash and Accounts Receivable...........................              --           --         --       --               --
                                                         --------------  ----------- ----------  -------   --------------
Total assets...........................................   1,196,193,540   36,937,355  1,170,621   23,813    1,375,721,650
LIABILITIES:                                                                                                             
Due to Metropolitan Life Insurance Company.............              29           --         --       --               --
                                                         --------------  ----------- ----------  -------   --------------
NET ASSETS.............................................  $1,196,193,511  $36,937,355 $1,170,621  $23,813   $1,375,721,650
                                                         ==============  =========== ==========  =======   ==============
Outstanding Units (In Thousands).......................          49,890          306          8       10           58,215
Unit Value.............................................        $8.39 to      $104.24    $104.24  $122.89         $9.19 to
                                                                 $49.99                                            $33.95

See Notes to Financial Statements.  

F-2 

485BPOS
166th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 166th
                                                        [Enlarge/Download Table]

                                                Metropolitan Fund                                                
-----------------------------------------------------------------------------------------------------------------
State Street                                                                                                     
  Research                     Putnam                    T. Rowe                                     Neuberger   
 Aggressive     MetLife     International    Janus     Price Small     Scudder    Harris Oakmark  Berman Partners
   Growth     Stock Index       Stock       Mid Cap    Cap Growth   Global Equity Large Cap Value  Mid Cap Value 
 Portfolio     Portfolio      Portfolio    Portfolio    Portfolio     Portfolio      Portfolio       Portfolio   
------------ -------------- ------------- ------------ ------------ ------------- --------------- ---------------
                                                                                                                 
$         -- $           -- $         --  $         -- $         -- $         --   $         --    $         --  
          --             --           --            --           --           --             --              --  
          --             --           --            --           --           --             --              --  
          --             --           --            --           --           --             --              --  
          --             --           --            --           --           --             --              --  
 539,038,492             --           --            --           --           --             --              --  
          --  2,148,997,728           --            --           --           --             --              --  
          --             --  148,302,248            --           --           --             --              --  
          --             --           --   524,360,926           --           --             --              --  
          --             --           --            --  163,890,019           --             --              --  
          --             --           --            --           --  121,961,430             --              --  
          --             --           --            --           --           --    217,357,181              --  
          --             --           --            --           --           --             --     137,491,102  
          --             --           --            --           --           --             --              --  
          --             --           --            --           --           --             --              --  
          --             --           --            --           --           --             --              --  
          --             --           --            --           --           --             --              --  
          --             --           --            --           --           --             --              --  
          --             --           --            --           --           --             --              --  
          --             --           --            --           --           --             --              --  
          --             --           --            --           --           --             --              --  
          --             --           --            --           --           --             --              --  
          --             --           --            --           --           --             --              --  
          --             --           --            --           --           --             --              --  
          --             --           --            --           --           --             --              --  
          --             --           --            --           --           --             --              --  
          --             --           --            --           --           --             --              --  
          --             --           --            --           --           --             --              --  
          --             --           --            --           --           --             --              --  
          --             --           --            --           --           --             --              --  
          --             --           --            --           --           --             --              --  
          --             --           --            --           --           --             --              --  
------------ -------------- ------------  ------------ ------------ ------------   ------------    ------------  
 539,038,492  2,148,997,728  148,302,248   524,360,926  163,890,019  121,961,430    217,357,181     137,491,102  
          --             --           --            --          287           --             --              --  
------------ -------------- ------------  ------------ ------------ ------------   ------------    ------------  
 539,038,492  2,148,997,728  148,302,248   524,360,926  163,890,306  121,961,430    217,357,181     137,491,102  
         287             --           --            --           --           --             --              --  
------------ -------------- ------------  ------------ ------------ ------------   ------------    ------------  
$539,038,205 $2,148,997,728 $148,302,248  $524,360,926 $163,890,306 $121,961,430   $217,357,181    $137,491,102  
============ ============== ============  ============ ============ ============   ============    ============  
      28,889         80,966       14,131        46,925       18,480       11,877         22,099          10,131  
    $8.11 to       $8.52 to     $8.48 to      $8.46 to     $8.26 to     $8.67 to       $8.64 to        $8.73 to  
      $27.57         $29.70       $10.85        $11.36        $9.03       $10.44          $9.95          $13.73  

F-3 

485BPOS
167th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 167th
Metropolitan Life Separate Account E  

STATEMENT OF ASSETS AND LIABILITIES 
AT DECEMBER 31, 2002  

                                                        [Enlarge/Download Table]

                                                                           Metropolitan Fund                   
                                                        -------------------------------------------------------
                                                        T. Rowe Price Lehman Brothers    Morgan                
                                                          Large Cap      Aggregate      Stanley      Russell   
                                                           Growth       Bond Index     EAFE Index   2000 Index 
                                                          Portfolio      Portfolio     Portfolio    Portfolio  
                                                        ------------- --------------- ------------ ------------
                                                                                                               
ASSETS:                                                                                                        
Investments at Value:                                                                                          
Metropolitan Fund                                                                                              
State Street Research Investment Trust Portfolio                                                               
 (62,564,716 Shares; cost $2,069,419,451).............. $         --   $         --   $         -- $         --
Variable B Portfolio                                                                                           
 (1,931,870 Shares; cost $61,472,461)..................           --             --             --           --
Variable C Portfolio                                                                                           
 (61,225 Shares; cost $1,948,863)......................           --             --             --           --
Variable D Portfolio                                                                                           
 (1,245 Shares; cost $34,391)..........................           --             --             --           --
State Street Research Diversified Portfolio                                                                    
 (105,258,642 Shares; cost $1,817,406,651).............           --             --             --           --
State Street Research Aggressive Growth Portfolio                                                              
 (42,277,613 Shares; cost $1,146,825,141)..............           --             --             --           --
MetLife Stock Index Portfolio                                                                                  
 (91,801,612 Shares; cost $2,885,238,954)..............           --             --             --           --
Putnam International Stock Portfolio                                                                           
 (19,113,816 Shares; cost $177,461,823)................           --             --             --           --
Janus Mid Cap Portfolio                                                                                        
 (50,373,567 Shares; cost $1,311,330,492)..............           --             --             --           --
T. Rowe Price Small Cap Growth Portfolio                                                                       
 (18,817,992 Shares; cost $193,565,454)................           --             --             --           --
Scudder Global Equity Portfolio                                                                                
 (13,582,164 Shares; cost $174,103,183)................           --             --             --           --
Harris Oakmark Large Cap Value Portfolio                                                                       
 (22,621,550 Shares; cost $248,479,877)................           --             --             --           --
Neuberger Berman Partners Mid Cap Value Portfolio                                                              
 (10,775,870 Shares; cost $151,477,247)................           --             --             --           --
T. Rowe Price Large Cap Growth Portfolio                                                                       
 (11,649,075 Shares; cost $154,802,359)................  103,789,751             --             --           --
Lehman Brothers Aggregate Bond Index Portfolio                                                                 
 (26,459,687 Shares; cost $272,639,938)................           --    295,466,638             --           --
Morgan Stanley EAFE Index Portfolio                                                                            
 (14,457,554 Shares; cost $122,732,892)................           --             --    104,947,903           --
Russell 2000 Index Portfolio                                                                                   
 (13,363,288 Shares; cost $146,125,445)................           --             --             --  110,231,824
Putnam Large Cap Growth Portfolio                                                                              
 (6,371,868 Shares; cost $32,099,084)..................           --             --             --           --
State Street Research Aurora Portfolio                                                                         
 (20,569,583 Shares; cost $282,196,914)................           --             --             --           --
MetLife Mid Cap Stock Index Portfolio                                                                          
 (12,068,412 Shares; cost $123,033,051)................           --             --             --           --
Janus Growth Portfolio                                                                                         
 (1,838,115 Shares; cost $11,938,091)..................           --             --             --           --
Franklin Templeton Small Cap Growth Portfolio                                                                  
 (1,819,673 Shares; cost $12,345,495)..................           --             --             --           --
State Street Research Large Cap Value Portfolio                                                                
 (393,784 Shares; cost $3,184,323).....................           --             --             --           --
Zenith Fund                                                                                                    
State Street Research Bond Income Portfolio                                                                    
 (4,211,961 Shares; cost $446,943,990).................           --             --             --           --
State Street Research Money Market Portfolio                                                                   
 (91,630 Shares; cost $9,162,957)......................           --             --             --           --
Davis Venture Value Portfolio                                                                                  
 (3,051,394 Shares; cost $74,325,359)..................           --             --             --           --
Loomis Sayles Small Cap Portfolio                                                                              
 (114,725 Shares; cost $18,970,437)....................           --             --             --           --
MFS Investors Trust Portfolio                                                                                  
 (986,586 Shares; cost $7,723,533).....................           --             --             --           --
MFS Research Managers Portfolio                                                                                
 (358,130 Shares; cost $2,910,163).....................           --             --             --           --
Harris Oakmark Focused Value Portfolio                                                                         
 (858,266 Shares; cost $154,917,325)...................           --             --             --           --
Salomon Brothers Strategic Bond Opportunities Portfolio                                                        
 (2,580,845 Shares; cost $28,689,516)..................           --             --             --           --
Salomon Brothers U.S. Government Portfolio                                                                     
 (7,339,695 Shares; cost $88,918,636)..................           --             --             --           --
                                                        ------------   ------------   ------------ ------------
Total investments......................................  103,789,751    295,466,638    104,947,903  110,231,824
Cash and Accounts Receivable...........................           --             --             --           --
                                                        ------------   ------------   ------------ ------------
Total assets...........................................  103,789,751    295,466,638    104,947,903  110,231,824
LIABILITIES:                                                                                                   
Due to Metropolitan Life Insurance Company.............           --             --             --           --
                                                        ------------   ------------   ------------ ------------
NET ASSETS............................................. $103,789,751   $295,466,638   $104,947,903 $110,231,824
                                                        ============   ============   ============ ============
Outstanding Units (In Thousands).......................       11,767         23,589         14,678       11,624
Unit Value.............................................     $8.64 to      $10.59 to       $6.85 to     $8.16 to
                                                               $8.92         $12.69          $8.63        $9.61

See Notes to Financial Statements.  

F-4 

485BPOS
168th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 168th
                                                        [Enlarge/Download Table]

                                 Metropolitan Fund                                          Zenith Fund       
------------------------------------------------------------------------------------ -------------------------
             State Street   MetLife                                   State Street   State Street State Street
Putnam Large   Research     Mid Cap      Janus    Franklin Templeton    Research       Research     Research  
 Cap Growth     Aurora    Stock Index   Growth     Small Cap Growth  Large Cap Value Bond Income  Money Market
 Portfolio    Portfolio    Portfolio   Portfolio      Portfolio         Portfolio     Portfolio    Portfolio  
------------ ------------ ------------ ---------- ------------------ --------------- ------------ ------------
                                                                                                              
$        --  $         -- $         -- $       --    $        --       $       --    $         --  $       -- 
         --            --           --         --             --               --              --          -- 
         --            --           --         --             --               --              --          -- 
         --            --           --         --             --               --              --          -- 
         --            --           --         --             --               --              --          -- 
         --            --           --         --             --               --              --          -- 
         --            --           --         --             --               --              --          -- 
         --            --           --         --             --               --              --          -- 
         --            --           --         --             --               --              --          -- 
         --            --           --         --             --               --              --          -- 
         --            --           --         --             --               --              --          -- 
         --            --           --         --             --               --              --          -- 
         --            --           --         --             --               --              --          -- 
         --            --           --         --             --               --              --          -- 
         --            --           --         --             --               --              --          -- 
         --            --           --         --             --               --              --          -- 
         --            --           --         --             --               --              --          -- 
 22,871,019            --           --         --             --               --              --          -- 
         --   227,655,295           --         --             --               --              --          -- 
         --            --  107,024,585         --             --               --              --          -- 
         --            --           --  9,978,351             --               --              --          -- 
         --            --           --         --     11,664,106               --              --          -- 
         --            --           --         --             --        3,130,580              --          -- 
         --            --           --         --             --               --     474,778,079          -- 
         --            --           --         --             --               --              --   9,162,959 
         --            --           --         --             --               --              --          -- 
         --            --           --         --             --               --              --          -- 
         --            --           --         --             --               --              --          -- 
         --            --           --         --             --               --              --          -- 
         --            --           --         --             --               --              --          -- 
         --            --           --         --             --               --              --          -- 
         --            --           --         --             --               --              --          -- 
-----------  ------------ ------------ ----------    -----------       ----------    ------------  ---------- 
 22,871,019   227,655,295  107,024,585  9,978,351     11,664,106        3,130,580     474,778,079   9,162,959 
         --            --           --         --             --               --              --       9,004 
-----------  ------------ ------------ ----------    -----------       ----------    ------------  ---------- 
 22,871,019   227,655,295  107,024,585  9,978,351     11,664,106        3,130,580     474,778,079   9,171,963 
          1            --           --         --             --               --              --          -- 
-----------  ------------ ------------ ----------    -----------       ----------    ------------  ---------- 
$22,871,018  $227,655,295 $107,024,585 $9,978,351    $11,664,106       $3,130,580    $474,778,079  $9,171,963 
===========  ============ ============ ==========    ===========       ==========    ============  ========== 
      6,587        20,893       12,280      1,877          1,861              396          18,889         459 
   $3.38 to      $7.78 to     $8.43 to   $5.22 to       $6.18 to         $7.88 to       $10.46 to   $19.98 to 
      $8.46        $10.98        $8.78      $5.34          $6.31            $7.95          $46.31      $21.75 

F-5 

485BPOS
169th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 169th
Metropolitan Life Separate Account E  

STATEMENT OF ASSETS AND LIABILITIES 
AT DECEMBER 31, 2002  

                                                        [Enlarge/Download Table]

                                                                    Zenith Fund             
                                                        ------------------------------------
                                                           Davis                     MFS    
                                                          Venture   Loomis Sayles Investors 
                                                           Value      Small Cap     Trust   
                                                         Portfolio    Portfolio   Portfolio 
                                                        ----------- ------------- ----------
                                                                                            
ASSETS:                                                                                     
Investments at Value:                                                                       
Metropolitan Fund                                                                           
State Street Research Investment Trust Portfolio                                            
 (62,564,716 Shares; cost $2,069,419,451).............. $        --  $        --  $       --
Variable B Portfolio                                                                        
 (1,931,870 Shares; cost $61,472,461)..................          --           --          --
Variable C Portfolio                                                                        
 (61,225 Shares; cost $1,948,863)......................          --           --          --
Variable D Portfolio                                                                        
 (1,245 Shares; cost $34,391)..........................          --           --          --
State Street Research Diversified Portfolio                                                 
 (105,258,642 Shares; cost $1,817,406,651).............          --           --          --
State Street Research Aggressive Growth Portfolio                                           
 (42,277,613 Shares; cost $1,146,825,141)..............          --           --          --
MetLife Stock Index Portfolio                                                               
 (91,801,612 Shares; cost $2,885,238,954)..............          --           --          --
Putnam International Stock Portfolio                                                        
 (19,113,816 Shares; cost $177,461,823)................          --           --          --
Janus Mid Cap Portfolio                                                                     
 (50,373,567 Shares; cost $1,311,330,492)..............          --           --          --
T. Rowe Price Small Cap Growth Portfolio                                                    
 (18,817,992 Shares; cost $193,565,454)................          --           --          --
Scudder Global Equity Portfolio                                                             
 (13,582,164 Shares; cost $174,103,183)................          --           --          --
Harris Oakmark Large Cap Value Portfolio                                                    
 (22,621,550 Shares; cost $248,479,877)................          --           --          --
Neuberger Berman Partners Mid Cap Value Portfolio                                           
 (10,775,870 Shares; cost $151,477,247)................          --           --          --
T. Rowe Price Large Cap Growth Portfolio                                                    
 (11,649,075 Shares; cost $154,802,359)................          --           --          --
Lehman Brothers Aggregate Bond Index Portfolio                                              
 (26,459,687 Shares; cost $272,639,938)................          --           --          --
Morgan Stanley EAFE Index Portfolio                                                         
 (14,457,554 Shares; cost $122,732,892)................          --           --          --
Russell 2000 Index Portfolio                                                                
 (13,363,288 Shares; cost $146,125,445)................          --           --          --
Putnam Large Cap Growth Portfolio                                                           
 (6,371,868 Shares; cost $32,099,084)..................          --           --          --
State Street Research Aurora Portfolio                                                      
 (20,569,583 Shares; cost $282,196,914)................          --           --          --
MetLife Mid Cap Stock Index Portfolio                                                       
 (12,068,412 Shares; cost $123,033,051)................          --           --          --
Janus Growth Portfolio                                                                      
 (1,838,115 Shares; cost $11,938,091)..................          --           --          --
Franklin Templeton Small Cap Growth Portfolio                                               
 (1,819,673 Shares; cost $12,345,495)..................          --           --          --
State Street Research Large Cap Value Portfolio                                             
 (393,784 Shares; cost $3,184,323).....................          --           --          --
Zenith Fund                                                                                 
State Street Research Bond Income Portfolio                                                 
 (4,211,961 Shares; cost $446,943,990).................          --           --          --
State Street Research Money Market Portfolio                                                
 (91,630 Shares; cost $9,162,957)......................          --           --          --
Davis Venture Value Portfolio                                                               
 (3,051,394 Shares; cost $74,325,359)..................  59,152,035           --          --
Loomis Sayles Small Cap Portfolio                                                           
 (114,725 Shares; cost $18,970,437)....................          --   15,933,407          --
MFS Investors Trust Portfolio                                                               
 (986,586 Shares; cost $7,723,533).....................          --           --   6,718,652
MFS Research Managers Portfolio                                                             
 (358,130 Shares; cost $2,910,163).....................          --           --          --
Harris Oakmark Focused Value Portfolio                                                      
 (858,266 Shares; cost $154,917,325)...................          --           --          --
Salomon Brothers Strategic Bond Opportunities Portfolio                                     
 (2,580,845 Shares; cost $28,689,516)..................          --           --          --
Salomon Brothers U.S. Government Portfolio                                                  
 (7,339,695 Shares; cost $88,918,636)..................          --           --          --
                                                        -----------  -----------  ----------
Total investments......................................  59,152,035   15,933,407   6,718,652
Cash and Accounts Receivable...........................          --           --          --
                                                        -----------  -----------  ----------
Total assets...........................................  59,152,035   15,933,407   6,718,652
LIABILITIES:                                                                                
Due to Metropolitan Life Insurance Company.............          --           --          --
                                                        -----------  -----------  ----------
NET ASSETS............................................. $59,152,035  $15,933,407  $6,718,652
                                                        ===========  ===========  ==========
Outstanding Units (In Thousands).......................       2,653          904       1,023
Unit Value.............................................    $8.83 to     $8.12 to    $6.33 to
                                                             $22.86       $18.27       $6.65

See Notes to Financial Statements.  

F-6 

485BPOS
170th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 170th
                                                                [Download Table]

                        Zenith Fund                        
-----------------------------------------------------------
   MFS                    Salomon Brothers                 
Research   Harris Oakmark  Strategic Bond  Salomon Brothers
Managers   Focused Value   Opportunities   U.S. Government 
Portfolio    Portfolio       Portfolio        Portfolio    
---------- -------------- ---------------- ----------------
                                                           
$       --  $         --    $        --      $        --   
        --            --             --               --   
        --            --             --               --   
        --            --             --               --   
        --            --             --               --   
        --            --             --               --   
        --            --             --               --   
        --            --             --               --   
        --            --             --               --   
        --            --             --               --   
        --            --             --               --   
        --            --             --               --   
        --            --             --               --   
        --            --             --               --   
        --            --             --               --   
        --            --             --               --   
        --            --             --               --   
        --            --             --               --   
        --            --             --               --   
        --            --             --               --   
        --            --             --               --   
        --            --             --               --   
        --            --             --               --   
        --            --             --               --   
        --            --             --               --   
        --            --             --               --   
        --            --             --               --   
        --            --             --               --   
 2,451,502            --             --               --   
        --   145,221,494             --               --   
        --            --     29,511,785               --   
        --            --             --       90,530,462   
----------  ------------    -----------      -----------   
 2,451,502   145,221,494     29,511,785       90,530,462   
        --            --             --               --   
----------  ------------    -----------      -----------   
 2,451,502   145,221,494     29,511,785       90,530,462   

        --            --             --               --   
----------  ------------    -----------      -----------   
$2,451,502  $145,221,494    $29,511,785      $90,530,462   
==========  ============    ===========      ===========   
       374         6,025          1,691            5,668   
  $6.11 to     $21.83 to      $16.05 to        $14.69 to   
     $6.69        $24.83         $17.99           $16.46   

F-7 

485BPOS
171st Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 171st
Metropolitan Life Separate Account E  

STATEMENT OF ASSETS AND LIABILITIES 
AT DECEMBER 31, 2002  

                                                        [Enlarge/Download Table]

                                                                       Zenith Fund            
                                                           -----------------------------------

                                                               FI          FI          MFS    
                                                           Structured    Mid Cap      Total   
                                                             Equity   Opportunities  Return   
                                                           Portfolio    Portfolio   Portfolio 
                                                           ---------- ------------- ----------
                                                                                              
ASSETS:                                                                                       
Investments at Value:                                                                         
Zenith Fund (Continued)                                                                       
FI Structured Equity Portfolio                                                                
  (8,596 Shares; cost $1,071,535)......................... $1,071,595  $       --   $       --
FI Mid Cap Opportunities Portfolio                                                            
  (326,360 Shares; cost $2,639,346).......................         --   2,672,891           --
MFS Total Return Portfolio                                                                    
  (1 Share; cost $68).....................................         --          --           68
Fidelity Fund                                                                                 
Fidelity VIP Money Market Portfolio                                                           
  (11,063,486 Shares; cost $11,063,485)...................         --          --           --
Fidelity VIP Equity-Income Portfolio                                                          
  (5,894,720 Shares; cost $132,605,146)...................         --          --           --
Fidelity VIP Growth Portfolio                                                                 
  (5,416,910 Shares; cost $210,816,895)...................         --          --           --
Fidelity VIP Overseas Portfolio                                                               
  (1,767,929 Shares; cost $24,476,920)....................         --          --           --
Fidelity VIP Investment Grade Bond Portfolio                                                  
  (1,621,136 Shares; cost $20,507,290)....................         --          --           --
Fidelity VIP Asset Manager Portfolio                                                          
  (3,581,594 Shares; cost $56,747,034)....................         --          --           --
Calvert Fund                                                                                  
Calvert Social Balanced Portfolio                                                             
  (29,722,390 Shares; cost $57,244,150)...................         --          --           --
Calvert Social Mid Cap Growth Portfolio                                                       
  (489,235 Shares; cost $13,855,915)......................         --          --           --
Met Investors Fund                                                                            
Lord Abbett Bond Debenture Portfolio                                                          
  (5,597,774 Shares; cost $58,300,289)....................         --          --           --
MFS Research International Portfolio                                                          
  (1,113,585 Shares; cost $9,008,471).....................         --          --           --
MFS Mid Cap Growth Portfolio                                                                  
  (2,929,179 Shares; cost $19,385,554)....................         --          --           --
PIMCO Total Return Portfolio                                                                  
  (12,161,032 Shares; cost $131,060,849)..................         --          --           --
PIMCO Innovation Portfolio                                                                    
  (3,789,729 Shares; cost $13,919,424)....................         --          --           --
Met/AIM Mid Cap Core Equity Portfolio                                                         
  (448,907 Shares; cost $4,474,136).......................         --          --           --
Met/AIM Small Cap Growth Portfolio                                                            
  (204,811 Shares; cost $1,809,552).......................         --          --           --
State Street Research Concentrated International Portfolio                                    
  (89,565 Shares; cost $796,730)..........................         --          --           --
Oppenheimer Capital Appreciation Portfolio                                                    
  (488 Shares; cost $3,274)...............................         --          --           --
American Fund                                                                                 
American Funds Growth Portfolio                                                               
  (3,144,360 Shares; cost $122,885,993)...................         --          --           --
American Funds Growth-Income Portfolio                                                        
  (4,063,713 Shares; cost $119,334,746)...................         --          --           --
American Funds Global Small Cap Portfolio                                                     
  (2,039,826 Shares; cost $22,546,666)....................         --          --           --
                                                           ----------  ----------   ----------
Total investments.........................................  1,071,595   2,672,891           68
Cash and Accounts Receivable..............................         --          --           --
                                                           ----------  ----------   ----------
Total assets..............................................  1,071,595   2,672,891           68
LIABILITIES:                                                                                  
Due to Metropolitan Life Insurance Company................         --          --           --
                                                           ----------  ----------   ----------
NET ASSETS................................................ $1,071,595  $2,672,891         $ 68
                                                           ==========  ==========   ==========
Outstanding Units (In Thousands)..........................         56         328         .002
Unit Value................................................  $17.32 to    $8.07 to    $32.23 to
                                                               $19.59       $8.14       $33.00

See Notes to Financial Statements.  

F-8 

485BPOS
172nd Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 172nd
                                                        [Enlarge/Download Table]

                                Fidelity Fund                                      Calvert Fund     
----------------------------------------------------------------------------- ----------------------
                                                                                           Calvert  
Fidelity VIP Fidelity VIP                           Fidelity VIP Fidelity VIP   Calvert    Social   
   Money       Equity-    Fidelity VIP Fidelity VIP  Investment     Asset       Social     Mid Cap  
   Market       Income       Growth      Overseas    Grade Bond    Manager     Balanced    Growth   
 Portfolio    Portfolio    Portfolio    Portfolio    Portfolio    Portfolio    Portfolio  Portfolio 
------------ ------------ ------------ ------------ ------------ ------------ ----------- ----------
                                                                                                    
$        --  $         -- $         -- $        --  $        --  $        --  $        -- $       --
         --            --           --          --           --           --           --         --
         --            --           --          --           --           --           --         --
 11,063,485            --           --          --           --           --           --         --
         --   107,048,117           --          --           --           --           --         --
         --            --  126,972,358          --           --           --           --         --
         --            --           --  19,411,860           --           --           --         --
         --            --           --          --   22,209,564           --           --         --
         --            --           --          --           --   45,665,325           --         --
         --            --           --          --           --           --   44,583,585         --
         --            --           --          --           --           --           --  8,957,889
         --            --           --          --           --           --           --         --
         --            --           --          --           --           --           --         --
         --            --           --          --           --           --           --         --
         --            --           --          --           --           --           --         --
         --            --           --          --           --           --           --         --
         --            --           --          --           --           --           --         --
         --            --           --          --           --           --           --         --
         --            --           --          --           --           --           --         --
         --            --           --          --           --           --           --         --
         --            --           --          --           --           --           --         --
         --            --           --          --           --           --           --         --
         --            --           --          --           --           --           --         --
-----------  ------------ ------------ -----------  -----------  -----------  ----------- ----------
 11,063,485   107,048,117  126,972,358  19,411,860   22,209,564   45,665,325   44,583,585  8,957,889
         --            --           --          --           --           --           --         --
-----------  ------------ ------------ -----------  -----------  -----------  ----------- ----------
 11,063,485   107,048,117  126,972,358  19,411,860   22,209,564   45,665,325   44,583,585  8,957,889
         --            --           --          --           --           --           --         --
-----------  ------------ ------------ -----------  -----------  -----------  ----------- ----------
$11,063,485  $107,048,117 $126,972,358 $19,411,860  $22,209,564  $45,665,325  $44,583,585 $8,957,889
===========  ============ ============ ===========  ===========  ===========  =========== ==========
        746         3,628        4,626       1,400        1,040        2,125        2,114        468
     $15.17        $29.50       $27.45      $13.85       $21.36       $21.47    $20.02 to     $19.16
                                                                                   $21.51           

F-9 

485BPOS
173rd Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 173rd
Metropolitan Life Separate Account E  

STATEMENT OF ASSETS AND LIABILITIES 
AT DECEMBER 31, 2002  

                                                        [Enlarge/Download Table]

                                                                    Met Investors Fund          
                                                           -------------------------------------

                                                           Lord Abbett      MFS          MFS    
                                                              Bond       Research      Mid Cap  
                                                            Debenture  International   Growth   
                                                            Portfolio    Portfolio    Portfolio 
                                                           ----------- ------------- -----------
                                                                                                
ASSETS:                                                                                         
Investments at Value:                                                                           
Zenith Fund (Continued)                                                                         
FI Structured Equity Portfolio                                                                  
  (8,596 Shares; cost $1,071,535)......................... $        --  $       --   $        --
FI Mid Cap Opportunities Portfolio                                                              
  (326,360 Shares; cost $2,639,346).......................          --          --            --
MFS Total Return Portfolio                                                                      
  (1 Shares; cost $68)....................................          --          --            --
Fidelity Fund                                                                                   
Fidelity VIP Money Market Portfolio                                                             
  (11,063,486 Shares; cost $11,063,485)...................          --          --            --
Fidelity VIP Equity-Income Portfolio                                                            
  (5,894,720 Shares; cost $132,605,146)...................          --          --            --
Fidelity VIP Growth Portfolio                                                                   
  (5,416,910 Shares; cost $210,816,895)...................          --          --            --
Fidelity VIP Overseas Portfolio                                                                 
  (1,767,929 Shares; cost $24,476,920)....................          --          --            --
Fidelity VIP Investment Grade Bond Portfolio                                                    
  (1,621,136 Shares; cost $20,507,290)....................          --          --            --
Fidelity VIP Asset Manager Portfolio                                                            
  (3,581,594 Shares; cost $56,747,034)....................          --          --            --
Calvert Fund                                                                                    
Calvert Social Balanced Portfolio                                                               
  (29,722,390 Shares; cost $57,244,150)...................          --          --            --
Calvert Social Mid Cap Growth Portfolio                                                         
  (489,235 Shares; cost $13,855,915)......................          --          --            --
Met Investors Fund                                                                              
Lord Abbett Bond Debenture Portfolio                                                            
  (5,597,774 Shares; cost $58,300,289)....................  57,316,343          --            --
MFS Research International Portfolio                                                            
  (1,113,585 Shares; cost $9,008,471).....................          --   8,338,351            --
MFS Mid Cap Growth Portfolio                                                                    
  (2,929,179 Shares; cost $19,385,554)....................          --          --    13,645,467
PIMCO Total Return Portfolio                                                                    
  (12,161,032 Shares; cost $131,060,849)..................          --          --            --
PIMCO Innovation Portfolio                                                                      
  (3,789,729 Shares; cost $13,919,424)....................          --          --            --
Met/AIM Mid Cap Core Equity Portfolio                                                           
  (448,907 Shares; cost $4,474,136).......................          --          --            --
Met/AIM Small Cap Growth Portfolio                                                              
  (204,811 Shares; cost $1,809,552).......................          --          --            --
State Street Research Concentrated International Portfolio                                      
  (89,565 Shares; cost $796,730)..........................          --          --            --
Oppenheimer Capital Appreciation Portfolio                                                      
  (488 Shares; cost $3,274)...............................          --          --            --
American Fund                                                                                   
American Funds Growth Portfolio                                                                 
  (3,144,360 Shares; cost $122,885,993)...................          --          --            --
American Funds Growth-Income Portfolio                                                          
  (4,063,713 Shares; cost $119,334,746)...................          --          --            --
American Funds Global Small Cap Portfolio                                                       
  (2,039,826 Shares; cost $22,546,666)....................          --          --            --
                                                           -----------  ----------   -----------
Total investments.........................................  57,316,343   8,338,351    13,645,467
Cash and Accounts Receivable..............................          --          --            --
                                                           -----------  ----------   -----------
Total assets..............................................  57,316,343   8,338,351    13,645,467
LIABILITIES:                                                                                    
Due to Metropolitan Life Insurance Company................          --          --            --
                                                           -----------  ----------   -----------
NET ASSETS................................................ $57,316,343  $8,338,351   $13,645,467
                                                           ===========  ==========   ===========
Outstanding Units (In Thousands)..........................       5,370       1,105         2,939
Unit Value................................................    $9.96 to    $7.63 to      $4.66 to
                                                                $13.79       $7.67         $4.68

See Notes to Financial Statements.  

F-10  

485BPOS
174th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 174th
                                                        [Enlarge/Download Table]

                            Met Investors Fund                                         American Fund            
-------------------------------------------------------------------------- -------------------------------------
                                                State Street                             American     American  
   PIMCO                   Met/AIM    Met/AIM     Research    Oppenheimer   American       Funds        Funds   
   Total       PIMCO       Mid Cap   Small Cap  Concentrated    Capital       Funds       Growth-      Global   
  Return     Innovation  Core Equity  Growth    International Appreciation   Growth       Income      Small Cap 
 Portfolio   Portfolio    Portfolio  Portfolio    Portfolio    Portfolio    Portfolio    Portfolio    Portfolio 
------------ ----------- ----------- ---------- ------------- ------------ ------------ ------------ -----------
                                                                                                                
$         -- $        -- $       --  $       --   $      --    $      --   $         -- $         -- $        --
          --          --         --          --          --           --             --           --          --
          --          --         --          --          --           --             --           --          --
          --          --         --          --          --           --             --           --          --
          --          --         --          --          --           --             --           --          --
          --          --         --          --          --           --             --           --          --
          --          --         --          --          --           --             --           --          --
          --          --         --          --          --           --             --           --          --
          --          --         --          --          --           --             --           --          --
          --          --         --          --          --           --             --           --          --
          --          --         --          --          --           --             --           --          --
          --          --         --          --          --           --             --           --          --
          --          --         --          --          --           --             --           --          --
          --          --         --          --          --           --             --           --          --
 137,802,804          --         --          --          --           --             --           --          --
          --  11,592,650         --          --          --           --             --           --          --
          --          --  4,412,747          --          --           --             --           --          --
          --          --         --   1,769,568          --           --             --           --          --
          --          --         --          --     794,444           --             --           --          --
          --          --         --          --          --        3,150             --           --          --
          --          --         --          --          --           --    104,487,140           --          --
          --          --         --          --          --           --             --  103,900,891          --
          --          --         --          --          --           --             --           --  18,827,591
------------ ----------- ----------  ----------   ---------    ---------   ------------ ------------ -----------
 137,802,804  11,592,650  4,412,747   1,769,568     794,444        3,150    104,487,140  103,900,891  18,827,591
          --          --         --          --          --           --             --           --          --
------------ ----------- ----------  ----------   ---------    ---------   ------------ ------------ -----------
 137,802,804  11,592,650  4,412,747   1,769,568     794,444        3,150    104,487,140  103,900,891  18,827,591
          --           1         --          --          --           --             --           --          --
------------ ----------- ----------  ----------   ---------    ---------   ------------ ------------ -----------
$137,802,804 $11,592,649 $4,412,747  $1,769,568   $ 794,444       $3,150   $104,487,140 $103,900,891 $18,827,591
============ =========== ==========  ==========   =========    =========   ============ ============ ===========
      12,100       3,262        454         208          90         .499          1,194        1,478       1,733
   $11.11 to    $2.93 to   $9.58 to    $8.41 to    $8.86 to     $6.30 to      $71.44 to    $57.44 to   $10.35 to
      $11.47       $3.65      $9.74       $8.54       $8.89        $6.31         $93.21       $74.94      $11.05

F-11  

485BPOS
175th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 175th
Metropolitan Life Separate Account E  

STATEMENT OF OPERATIONS 
FOR THE YEAR ENDED DECEMBER 31, 2002  

                                                        [Enlarge/Download Table]

                                                                                    Metropolitan Fund                 
                                                                    ------------------------------------------------- 
                                                                     State Street                                     
                                                                       Research                                       
                                                                      Investment                                      
                                                                        Trust       Variable B   Variable C Variable D
                                                                      Portfolio     Portfolio    Portfolio  Portfolio 
                                                                    -------------  ------------  ---------- ----------
                                                                                                                      
INVESTMENT (LOSS) INCOME                                                                                              
Income:                                                                                                               
  Dividends........................................................ $   8,886,606  $    266,310  $   9,216   $   151  
  Expenses.........................................................    18,909,283       441,705         --        --  
                                                                    -------------  ------------  ---------   -------  
Net investment (loss) income.......................................   (10,022,677)     (175,395)     9,216       151  
                                                                    -------------  ------------  ---------   -------  
NET REALIZED AND UNREALIZED (LOSSES) GAINS ON                                                                         
 INVESTMENTS:                                                                                                         
Net realized (losses) gains from security transactions.............   (66,085,417)      643,331     43,399        --  
Change in net unrealized (depreciation) appreciation of investments                                                   
 for the period....................................................  (428,155,040)  (15,556,854)  (562,444)   (8,572) 
                                                                    -------------  ------------  ---------   -------  
Net realized and unrealized (losses) gains on investments..........  (494,240,457)  (14,913,523)  (519,045)   (8,572) 
                                                                    -------------  ------------  ---------   -------  
NET (DECREASE) INCREASE IN NET ASSETS RESULTING                                                                       
 FROM OPERATIONS................................................... $(504,263,134) $(15,088,918) $(509,829)  $(8,421) 
                                                                    =============  ============  =========   =======  

--------                                                                        
(a) For the period from May 1, 2002 to December 31, 2002                        
(b) For the period from August 1, 2002 to December 31, 2002                     

See Notes to Financial Statements.  

F-12  

485BPOS
176th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 176th
                                                        [Enlarge/Download Table]

                                                  Metropolitan Fund                                                  
-------------------------------------------------------------------------------------------------------------------- 
                State Street                                                                                         
 State Street     Research                      Putnam                       T. Rowe                                 
   Research      Aggressive      MetLife     International     Janus       Price Small     Scudder    Harris Oakmark 
 Diversified       Growth      Stock Index       Stock        Mid Cap      Cap Growth   Global Equity Large Cap Value
  Portfolio      Portfolio      Portfolio      Portfolio     Portfolio      Portfolio     Portfolio      Portfolio   
-------------  -------------  -------------  ------------- -------------  ------------  ------------- ---------------
                                                                                                                     
$  40,427,315  $          --  $  44,415,384  $  1,522,109  $          --  $         --  $  2,454,476   $  7,186,463  
   20,578,131      8,264,707     31,201,033     2,096,472      7,931,142     2,426,851     1,709,646      2,789,769  
-------------  -------------  -------------  ------------  -------------  ------------  ------------   ------------  
   19,849,184     (8,264,707)    13,214,351      (574,363)    (7,931,142)   (2,426,851)      744,830      4,396,694  
-------------  -------------  -------------  ------------  -------------  ------------  ------------   ------------  
  (33,325,338)   (98,158,424)   (47,830,847)    1,229,560   (299,802,071)  (30,658,257)   (6,095,281)     2,731,729  
 (269,960,376)  (142,132,655)  (661,053,913)  (33,522,332)    53,519,510   (34,221,994)  (21,053,921)   (49,157,322) 
-------------  -------------  -------------  ------------  -------------  ------------  ------------   ------------  
 (303,285,714)  (240,291,079)  (708,884,760)  (32,292,772)  (246,282,561)  (64,880,251)  (27,149,202)   (46,425,593) 
-------------  -------------  -------------  ------------  -------------  ------------  ------------   ------------  
$(283,436,530) $(248,555,786) $(695,670,409) $(32,867,135) $(254,213,703) $(67,307,102) $(26,404,372)  $(42,028,899) 
=============  =============  =============  ============  =============  ============  ============   ============  

F-13  

485BPOS
177th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 177th
Metropolitan Life Separate Account E  

STATEMENT OF OPERATIONS 
FOR THE YEAR ENDED DECEMBER 31, 2002  

                                                        [Enlarge/Download Table]

                                                                                                 Metropolitan Fund              
                                                                                   ---------------------------------------------

                                                                                      Neuberger    T. Rowe Price Lehman Brothers
                                                                                   Berman Partners   Large Cap      Aggregate   
                                                                                    Mid Cap Value     Growth       Bond Index   
                                                                                      Portfolio      Portfolio      Portfolio   
                                                                                   --------------- ------------- ---------------
                                                                                                                                
INVESTMENT (LOSS) INCOME                                                                                                        
Income:                                                                                                                         
  Dividends.......................................................................  $    457,657   $    347,977    $ 7,277,719  
  Expenses........................................................................     1,793,482      1,511,473      3,052,946  
                                                                                    ------------   ------------    -----------  
Net investment (loss) income......................................................    (1,335,825)    (1,163,496)     4,224,773  
                                                                                    ------------   ------------    -----------  
NET REALIZED AND UNREALIZED (LOSSES) GAINS ON INVESTMENTS:                                                                      
Net realized (losses) gains from security transactions............................      (588,042)    (8,230,356)     3,229,161  
Change in net unrealized (depreciation) appreciation of investments for the period   (16,047,845)   (26,390,985)    14,151,148  
                                                                                    ------------   ------------    -----------  
Net realized and unrealized (losses) gains on investments.........................   (16,635,887)   (34,621,341)    17,380,309  
                                                                                    ------------   ------------    -----------  
NET (DECREASE) INCREASE IN NET ASSETS RESULTING FROM OPERATIONS...................  $(17,971,712)  $(35,784,837)   $21,605,082  
                                                                                    ============   ============    ===========  

--------                                                                        
(a) For the period from May 1, 2002 to December 31, 2002                        
(b) For the period from August 1, 2002 to December 31, 2002                     

See Notes to Financial Statements.  

F-14  

485BPOS
178th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 178th
                                                        [Enlarge/Download Table]

                                              Metropolitan Fund                                               
------------------------------------------------------------------------------------------------------------- 
                                                                                   Franklin                   
   Morgan                                State Street     MetLife                  Templeton    State Street  
  Stanley       Russell     Putnam Large   Research       Mid Cap       Janus      Small Cap      Research    
 EAFE Index    2000 Index    Cap Growth     Aurora      Stock Index    Growth       Growth     Large Cap Value
 Portfolio     Portfolio     Portfolio    Portfolio      Portfolio    Portfolio    Portfolio    Portfolio (a) 
------------  ------------  ------------ ------------  ------------  -----------  -----------  ---------------
                                                                                                              
    $515,464  $    759,389  $        --  $  1,307,452  $    372,591  $        --  $        --     $  13,529   
   1,245,795     1,445,740      306,771     3,085,935     1,231,387      116,512      126,140        11,199   
------------  ------------  -----------  ------------  ------------  -----------  -----------     ---------   
    (730,331)     (686,351)    (306,771)   (1,778,483)     (858,796)    (116,512)    (126,140)        2,330   
------------  ------------  -----------  ------------  ------------  -----------  -----------     ---------   
 (12,197,536)   (6,920,534)  (9,568,780)      140,071    (2,570,115)  (1,882,958)  (2,259,828)     (266,085)  
  (6,039,133)  (21,331,382)     710,397   (71,663,432)  (15,835,386)  (1,738,189)    (802,862)      (53,743)  
------------  ------------  -----------  ------------  ------------  -----------  -----------     ---------   
 (18,236,669)  (28,251,916)  (8,858,383)  (71,523,361)  (18,405,501)  (3,621,147)  (3,062,690)     (319,828)  
------------  ------------  -----------  ------------  ------------  -----------  -----------     ---------   
$(18,967,000) $(28,938,267) $(9,165,154) $(73,301,844) $(19,264,297) $(3,737,659) $(3,188,830)    $(317,498)  
============  ============  ===========  ============  ============  ===========  ===========     =========   

F-15  

485BPOS
179th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 179th
Metropolitan Life Separate Account E  

STATEMENT OF OPERATIONS 
FOR THE YEAR ENDED DECEMBER 31, 2002  

                                                        [Enlarge/Download Table]

                                                                                                 Zenith Fund              
                                                                                   -------------------------------------- 
                                                                                   State Street State Street     Davis    
                                                                                     Research     Research      Venture   
                                                                                   Bond Income  Money Market     Value    
                                                                                    Portfolio    Portfolio     Portfolio  
                                                                                   ------------ ------------ ------------ 
                                                                                                                          
INVESTMENT (LOSS) INCOME                                                                                                  
Income:                                                                                                                   
  Dividends....................................................................... $26,622,068   $ 146,577   $    519,556 
  Expenses........................................................................   5,759,318     159,028        726,203 
                                                                                   -----------   ---------   ------------ 
Net investment (loss) income......................................................  20,862,750     (12,451)      (206,647)
                                                                                   -----------   ---------   ------------ 
NET REALIZED AND UNREALIZED (LOSSES) GAINS ON INVESTMENTS:                                                                
Net realized (losses) gains from security transactions............................  (9,378,074)   (413,699)    (3,014,672)
Change in net unrealized (depreciation) appreciation of investments for the period  19,780,963     417,973     (8,476,246)
                                                                                   -----------   ---------   ------------ 
Net realized and unrealized (losses) gains on investments.........................  10,402,889       4,274    (11,490,918)
                                                                                   -----------   ---------   ------------ 
NET (DECREASE) INCREASE IN NET ASSETS RESULTING FROM OPERATIONS................... $31,265,639   $  (8,177)  $(11,697,565)
                                                                                   ===========   =========   ============ 

--------                                                                        
(a) For the period from May 1, 2002 to December 31, 2002                        
(b) For the period from August 1, 2002 to December 31, 2002                     

See Notes to Financial Statements.  

F-16  

485BPOS
180th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 180th
                                                        [Enlarge/Download Table]

                                            Zenith Fund                                             
--------------------------------------------------------------------------------------------------- 
                  MFS         MFS                    Salomon Brothers                       FI      
Loomis Sayles  Investors   Research   Harris Oakmark  Strategic Bond  Salomon Brothers  Structured  
  Small Cap      Trust     Managers   Focused Value   Opportunities   U.S. Government     Equity    
  Portfolio    Portfolio   Portfolio    Portfolio       Portfolio        Portfolio     Portfolio (a)
------------- -----------  ---------  -------------- ---------------- ---------------- -------------
                                                                                                    
 $    17,754  $    22,398  $   3,152   $    252,961     $1,165,166       $1,838,360      $    931   
     200,804       68,814     26,314      1,584,662        224,941          576,680         3,335   
 -----------  -----------  ---------   ------------     ----------       ----------      --------   
    (183,050)     (46,416)   (23,162)    (1,331,701)       940,225        1,261,680        (2,404)  
 -----------  -----------  ---------   ------------     ----------       ----------      --------   
  (2,317,368)    (359,047)  (222,160)    (1,820,374)        59,911          163,311       (17,138)  
  (1,785,701)    (951,022)  (413,525)   (14,656,939)       712,043        1,598,086            61   
 -----------  -----------  ---------   ------------     ----------       ----------      --------   
  (4,103,069)  (1,310,069)  (635,685)   (16,477,313)       771,954        1,761,397       (17,077)  
 -----------  -----------  ---------   ------------     ----------       ----------      --------   
 $(4,286,119) $(1,356,485) $(658,847)  $(17,809,014)    $1,712,179       $3,023,077      $(19,481)  
 ===========  ===========  =========   ============     ==========       ==========      ========   

F-17  

485BPOS
181st Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 181st
Metropolitan Life Separate Account E  

STATEMENT OF OPERATIONS 
FOR THE YEAR ENDED DECEMBER 31, 2002  

                                                        [Enlarge/Download Table]

                                                                                           Zenith Fund        
                                                                                   ---------------------------
                                                                                        FI                    
                                                                                      Mid Cap         MFS     
                                                                                   Opportunities Total Return 
                                                                                   Portfolio (a) Portfolio (b)
                                                                                   ------------- -------------
                                                                                                              
INVESTMENT (LOSS) INCOME                                                                                      
Income:                                                                                                       
  Dividends.......................................................................   $      --        $--     
  Expenses........................................................................      10,413         --     
                                                                                     ---------        ---     
Net investment (loss) income......................................................     (10,413)        --     
                                                                                     ---------        ---     
NET REALIZED AND UNREALIZED (LOSSES) GAINS ON INVESTMENTS:                                                    
Net realized (losses) gains from security transactions............................    (113,293)        --     
Change in net unrealized (depreciation) appreciation of investments for the period      33,545         --     
                                                                                     ---------        ---     
Net realized and unrealized (losses) gains on investments.........................     (79,748)        --     
                                                                                     ---------        ---     
NET (DECREASE) INCREASE IN NET ASSETS RESULTING FROM OPERATIONS...................   $ (90,161)       $--     
                                                                                     =========        ===     

--------                                                                        
(a) For the period from May 1, 2002 to December 31, 2002                        
(b) For the period from August 1, 2002 to December 31, 2002                     

See Notes to Financial Statements.  

F-18  

485BPOS
182nd Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 182nd
                                                        [Enlarge/Download Table]

                                 Fidelity Fund                                          Calvert Fund        
-------------------------------------------------------------------------------  -------------------------- 
                                                      Fidelity VIP                 Calvert       Calvert    
Fidelity VIP Fidelity VIP  Fidelity VIP  Fidelity VIP  Investment  Fidelity VIP    Social     Social Mid Cap
Money Market Equity-Income    Growth       Overseas    Grade Bond  Asset Manager  Balanced        Growth    
 Portfolio     Portfolio    Portfolio     Portfolio    Portfolio     Portfolio    Portfolio     Portfolio   
------------ ------------- ------------  ------------ ------------ ------------- -----------  --------------
                                                                                                            
  $202,096   $  4,981,916  $    396,348  $   178,464   $  629,814   $ 1,912,499  $ 1,296,489   $        --  
   124,286      1,148,423     1,459,828      213,873      181,691       450,755      562,336        97,250  
  --------   ------------  ------------  -----------   ----------   -----------  -----------   -----------  
    77,810      3,833,493    (1,063,480)     (35,409)     448,123     1,461,744      734,153       (97,250) 
  --------   ------------  ------------  -----------   ----------   -----------  -----------   -----------  
        --        763,466      (118,628)     247,005      298,157      (875,165)    (357,440)     (994,226) 
        --    (28,590,772)  (57,511,100)  (5,101,215)     959,591    (5,683,887)  (7,333,126)   (2,556,138) 
  --------   ------------  ------------  -----------   ----------   -----------  -----------   -----------  
        --    (27,827,306)  (57,629,728)  (4,854,210)   1,257,748    (6,559,052)  (7,690,566)   (3,550,364) 
  --------   ------------  ------------  -----------   ----------   -----------  -----------   -----------  
  $ 77,810   $(23,993,813) $(58,693,208) $(4,889,619)  $1,705,871   $(5,097,308) $(6,956,413)  $(3,647,614) 
  ========   ============  ============  ===========   ==========   ===========  ===========   ===========  

F-19  

485BPOS
183rd Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 183rd
Metropolitan Life Separate Account E  

STATEMENT OF OPERATIONS 
FOR THE YEAR ENDED DECEMBER 31, 2002  

                                                        [Enlarge/Download Table]

                                                                                              Met Investors Fund           
                                                                                   --------------------------------------- 

                                                                                    Lord Abbett       MFS          MFS     
                                                                                       Bond        Research      Mid Cap   
                                                                                     Debenture   International   Growth    
                                                                                     Portfolio     Portfolio    Portfolio  
                                                                                   ------------  ------------- ----------- 
                                                                                                                           
INVESTMENT (LOSS) INCOME                                                                                                   
Income:                                                                                                                    
  Dividends....................................................................... $  6,690,618    $  13,949   $    80,711 
  Expenses........................................................................      719,242       74,052       165,987 
                                                                                   ------------    ---------   ----------- 
Net investment (loss) income......................................................    5,971,376      (60,103)      (85,276)
                                                                                   ------------    ---------   ----------- 
NET REALIZED AND UNREALIZED (LOSSES) GAINS ON INVESTMENTS:                                                                 
Net realized (losses) gains from security transactions............................  (14,253,624)      22,886    (2,005,974)
Change in net unrealized (depreciation) appreciation of investments for the period    8,175,221     (735,047)   (6,237,774)
                                                                                   ------------    ---------   ----------- 
Net realized and unrealized (losses) gains on investments.........................   (6,078,403)    (712,161)   (8,243,748)
                                                                                   ------------    ---------   ----------- 
NET (DECREASE) INCREASE IN NET ASSETS RESULTING FROM OPERATIONS................... $   (107,027)   $(772,264)  $(8,329,024)
                                                                                   ============    =========   =========== 

--------                                                                        
(a) For the period from May 1, 2002 to December 31, 2002                        
(b) For the period from August 1, 2002 to December 31, 2002                     

See Notes to Financial Statements.  

F-20  

485BPOS
184th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 184th
                                                        [Enlarge/Download Table]

                                Met Investors Fund                                                American Fund                
---------------------------------------------------------------------------------  ------------------------------------------- 
                              Met/AIM                  State Street                                                            
                              Mid Cap       Met/AIM      Research     Oppenheimer                                American Funds
   PIMCO        PIMCO          Core        Small Cap   Concentrated     Capital    American Funds American Funds     Global    
Total Return  Innovation      Equity        Growth     International Appreciation      Growth     Growth-Income    Small Cap   
 Portfolio    Portfolio    Portfolio (a) Portfolio (a) Portfolio (a) Portfolio (b)   Portfolio      Portfolio      Portfolio   
------------ ------------  ------------- ------------- ------------- ------------- -------------- -------------- --------------
                                                                                                                               
 $       --  $         --    $   4,673     $      --     $    977        $  --      $     34,029   $  1,048,373   $   120,912  
    923,205       168,001       20,462         6,804        2,922            1           976,556        923,963       188,863  
 ----------  ------------    ---------     ---------     --------        -----      ------------   ------------   -----------  
   (923,205)     (168,001)     (15,789)       (6,804)      (1,945)          (1)         (942,527)       124,410       (67,951) 
 ----------  ------------    ---------     ---------     --------        -----      ------------   ------------   -----------  
    451,129    (8,862,942)    (214,427)     (142,271)     (35,493)          --        (3,452,758)    (1,338,173)      198,118  
  7,040,652    (2,079,595)     (61,389)      (39,983)      (2,285)        (125)      (18,976,831)   (16,039,489)   (4,288,626) 
 ----------  ------------    ---------     ---------     --------        -----      ------------   ------------   -----------  
  7,491,781   (10,942,537)    (275,816)     (182,254)     (37,778)        (125)      (22,429,589)   (17,377,662)   (4,090,508) 
 ----------  ------------    ---------     ---------     --------        -----      ------------   ------------   -----------  
 $6,568,576  $(11,110,538)   $(291,605)    $(189,058)    $(39,723)       $(126)     $(23,372,116)  $(17,253,252)  $(4,158,459) 
 ==========  ============    =========     =========     ========        =====      ============   ============   ===========  

F-21  

485BPOS
185th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 185th
Metropolitan Life Separate Account E  

STATEMENT OF CHANGES IN NET ASSETS  
FOR THE YEARS ENDED DECEMBER 31, 2002 and 2001  

                                                        [Enlarge/Download Table]

                                                              Metropolitan Fund                     
                                         ---------------------------------------------------------- 
                                              State Street Research                                 
                                           Investment Trust Portfolio       Variable B Portfolio    
                                         ------------------------------  -------------------------- 
                                          For the Year    For the Year   For the Year  For the Year 
                                             Ended           Ended          Ended         Ended     
                                          December 31,    December 31,   December 31,  December 31, 
                                              2002            2001           2002          2001     
                                         --------------  --------------  ------------  ------------ 
                                                                                                    
(DECREASE) INCREASE IN NET ASSETS:                                                                  
From operations:                                                                                    
 Net investment (loss) income........... $  (10,022,677) $  285,760,419  $   (175,395) $  8,822,319 
 Net realized (losses) gains from                                                                   
   security transactions................    (66,085,417)     40,502,292       643,331     3,201,027 
 Change in net unrealized                                                                           
   (depreciation) appreciation of                                                                   
   investments..........................   (428,155,040)   (798,280,444)  (15,556,854)  (25,735,304)
                                         --------------  --------------  ------------  ------------ 
 Net (decrease) increase in net assets                                                              
   resulting from operations............   (504,263,134)   (472,017,733)  (15,088,918)  (13,711,958)
                                         --------------  --------------  ------------  ------------ 
From capital transactions:                                                                          
 Net premiums...........................     88,528,653     125,138,106        99,808       173,878 
 Redemptions............................   (139,818,896)   (169,777,816)   (6,196,537)   (8,362,207)
                                         --------------  --------------  ------------  ------------ 
 Total net (redemptions) premiums.......    (51,290,243)    (44,639,710)   (6,096,729)   (8,188,329)
 Net portfolio transfers................   (194,554,453)   (198,531,959)         (439)        4,213 
 Net other transfers....................       (383,956)     (1,044,291)       22,354       100,737 
                                         --------------  --------------  ------------  ------------ 
 Net (decrease) increase in net assets                                                              
   resulting from capital transactions..   (246,228,652)   (244,215,960)   (6,074,814)   (8,083,379)
                                         --------------  --------------  ------------  ------------ 
NET CHANGE IN NET ASSETS................   (750,491,786)   (716,233,693)  (21,163,732)  (21,795,337)
NET ASSETS--BEGINNING OF PERIOD.........  1,946,685,297   2,662,918,990    58,101,087    79,896,424 
                                         --------------  --------------  ------------  ------------ 
NET ASSETS--END OF PERIOD............... $1,196,193,511  $1,946,685,297  $ 36,937,355  $ 58,101,087 
                                         ==============  ==============  ============  ============ 

See Notes to Financial Statements.  

F-22  

485BPOS
186th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 186th
                                                        [Enlarge/Download Table]

                                                 Metropolitan Fund                                                 
------------------------------------------------------------------------------------------------------------------ 
                                                         State Street Research           State Street Research     
  Variable C Portfolio      Variable D Portfolio         Diversified Portfolio        Aggressive Growth Portfolio  
------------------------  ------------------------  ------------------------------  ------------------------------ 
For the Year For the Year For the Year For the Year  For the Year    For the Year    For the Year    For the Year  
   Ended        Ended        Ended        Ended         Ended           Ended           Ended           Ended      
December 31, December 31, December 31, December 31,  December 31,    December 31,    December 31,    December 31,  
    2002         2001         2002         2001          2002            2001            2002            2001      
------------ ------------ ------------ ------------ --------------  --------------  -------------  --------------- 
                                                                                                                   
$     9,216   $  347,534    $   151      $  4,822   $   19,849,184  $  187,498,293  $  (8,264,707)  $  252,872,239 
     43,399       72,823         --            --      (33,325,338)     16,964,189    (98,158,424)     (32,188,412)
   (562,444)    (916,481)    (8,572)      (11,427)    (269,960,376)   (384,212,752)  (142,132,655)    (523,056,616)
-----------   ----------    -------      --------   --------------  --------------  -------------  --------------- 
   (509,829)    (496,124)    (8,421)       (6,605)    (283,436,530)   (179,750,270)  (248,555,786)    (302,372,789)
-----------   ----------    -------      --------   --------------  --------------  -------------  --------------- 
         --           --         --            --       83,863,952     130,574,458     42,354,253       56,134,392 
   (590,385)    (199,719)        --            --     (172,872,031)   (190,560,127)   (59,440,246)     (67,813,404)
-----------   ----------    -------      --------   --------------  --------------  -------------  --------------- 
   (590,385)    (199,719)        --            --      (89,008,079)    (59,985,669)   (17,085,993)     (11,679,012)
         --           --         --            --     (206,076,228)   (157,798,327)   (62,626,898)     (69,075,745)
      2,705         (403)        --            --       (2,371,382)       (246,252)        32,635          (67,364)
-----------   ----------    -------      --------   --------------  --------------  -------------  --------------- 
   (587,680)    (200,122)        --            --     (297,455,689)   (218,030,248)   (79,680,256)     (80,822,121)
-----------   ----------    -------      --------   --------------  --------------  -------------  --------------- 
 (1,097,509)    (696,246)    (8,421)       (6,605)    (580,892,219)   (397,780,518)  (328,236,042)    (383,194,910)
  2,268,130    2,964,376     32,234        38,839    1,956,613,869   2,354,394,387    867,274,247    1,250,469,157 
-----------   ----------    -------      --------   --------------  --------------  -------------  --------------- 
$ 1,170,621   $2,268,130    $23,813      $ 32,234   $1,375,721,650  $1,956,613,869  $ 539,038,205  $   867,274,247 
===========   ==========    =======      ========   ==============  ==============  =============  =============== 

F-23  

485BPOS
187th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 187th
Metropolitan Life Separate Account E  

STATEMENT OF CHANGES IN NET ASSETS  
FOR THE YEARS ENDED DECEMBER 31, 2002 and 2001  

                                                        [Enlarge/Download Table]

                                                              Metropolitan Fund                       
                                         ------------------------------------------------------------ 

                                                     MetLife                       Putnam             
                                              Stock Index Portfolio      International Stock Portfolio
                                         ------------------------------  ---------------------------- 
                                            For the         For the        For the        For the     
                                           Year Ended      Year Ended     Year Ended     Year Ended   
                                          December 31,    December 31,   December 31,   December 31,  
                                              2002            2001           2002           2001      
                                         --------------  --------------  ------------   ------------  
                                                                                                      
(DECREASE) INCREASE IN NET ASSETS:                                                                    
From operations:                                                                                      
 Net investment (loss) income........... $   13,214,351  $      726,504  $   (574,363)  $  5,374,536  
 Net realized (losses) gains from                                                                     
   security transactions................    (47,830,847)    218,623,281     1,229,560    (58,642,621) 
 Change in net unrealized                                                                             
   (depreciation) appreciation of                                                                     
   investments..........................   (661,053,913)   (695,352,680)  (33,522,332)     4,283,802  
                                         --------------  --------------  ------------   ------------  
 Net (decrease) increase in net assets                                                                
   resulting from operations............   (695,670,409)   (476,002,895)  (32,867,135)   (48,984,283) 
                                         --------------  --------------  ------------   ------------  
From capital transactions:                                                                            
 Net premiums...........................    205,870,674     247,478,793    17,914,868     21,428,581  
 Redemptions............................   (238,537,193)   (245,802,849)  (14,202,903)   (14,914,493) 
                                         --------------  --------------  ------------   ------------  
 Total net (redemptions) premiums.......    (32,666,519)      1,675,944     3,711,965      6,514,088  
 Net portfolio transfers................   (121,464,210)   (132,036,347)  (13,312,317)   (15,462,226) 
 Net other transfers....................       (841,450)       (235,289)      204,245         39,484  
                                         --------------  --------------  ------------   ------------  
 Net (decrease) increase in net assets                                                                
   resulting from capital transactions..   (154,972,179)   (130,595,692)   (9,396,107)    (8,908,654) 
                                         --------------  --------------  ------------   ------------  
NET CHANGE IN NET ASSETS................   (850,642,588)   (606,598,587)  (42,263,242)   (57,892,937) 
NET ASSETS--BEGINNING OF PERIOD.........  2,999,640,316   3,606,238,903   190,565,490    248,458,427  
                                         --------------  --------------  ------------   ------------  
NET ASSETS--END OF PERIOD............... $2,148,997,728  $2,999,640,316  $148,302,248   $190,565,490  
                                         ==============  ==============  ============   ============  

See Notes to Financial Statements.  

F-24  

485BPOS
188th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 188th
                                                        [Enlarge/Download Table]

                                                Metropolitan Fund                                                 
----------------------------------------------------------------------------------------------------------------- 
                                      T. Rowe Price                                                               
        Janus Mid Cap               Small Cap Growth             Scudder Global           Harris Oakmark Large    
          Portfolio                     Portfolio               Equity Portfolio           Cap Value Portfolio    
-----------------------------  --------------------------  --------------------------  -------------------------- 
   For the        For the        For the       For the       For the       For the       For the       For the    
  Year Ended     Year Ended     Year Ended    Year Ended    Year Ended    Year Ended    Year Ended    Year Ended  
 December 31,   December 31,   December 31,  December 31,  December 31,  December 31,  December 31,  December 31, 
     2002           2001           2002          2001          2002          2001          2002          2001     
-------------  --------------  ------------  ------------  ------------  ------------  ------------  ------------ 
                                                                                                                  
$  (7,931,142) $  (13,354,117) $ (2,426,851) $ 18,345,297  $    744,830  $ 17,805,115  $  4,396,694  $ (1,389,508)
 (299,802,071)    (67,658,830)  (30,658,257)  (63,940,947)   (6,095,281)     (344,522)    2,731,729      (336,559)
   53,519,510    (501,903,569)  (34,221,994)   16,602,625   (21,053,921)  (50,075,476)  (49,157,322)   16,427,340 
-------------  --------------  ------------  ------------  ------------  ------------  ------------  ------------ 
 (254,213,703)   (582,916,516)  (67,307,102)  (28,993,025)  (26,404,372)  (32,614,883)  (42,028,899)   14,701,273 
-------------  --------------  ------------  ------------  ------------  ------------  ------------  ------------ 
   78,317,495     134,829,501    23,773,940    28,226,005    18,661,812    24,278,930    55,698,963    43,289,710 
  (55,664,011)    (71,519,010)  (17,416,451)  (15,841,130)  (12,212,003)  (10,733,613)  (18,302,421)   (9,475,831)
-------------  --------------  ------------  ------------  ------------  ------------  ------------  ------------ 
   22,653,484      63,310,491     6,357,489    12,384,875     6,449,809    13,545,317    37,396,542    33,813,879 
 (126,395,606)   (180,614,322)  (18,785,506)  (24,810,765)  (15,561,211)   (9,195,948)   24,610,591    97,996,381 
     (340,988)        377,348       (22,983)      (53,080)      (51,225)      (31,909)      (12,518)       (2,270)
-------------  --------------  ------------  ------------  ------------  ------------  ------------  ------------ 
 (104,083,110)   (116,926,483)  (12,451,000)  (12,478,970)   (9,162,627)    4,317,460    61,994,615   131,807,990 
-------------  --------------  ------------  ------------  ------------  ------------  ------------  ------------ 
 (358,296,813)   (699,842,999)  (79,758,102)  (41,471,995)  (35,566,999)  (28,297,423)   19,965,716   146,509,263 
  882,657,739   1,582,500,738   243,648,408   285,120,403   157,528,429   185,825,852   197,391,465    50,882,202 
-------------  --------------  ------------  ------------  ------------  ------------  ------------  ------------ 
$ 524,360,926  $  882,657,739  $163,890,306  $243,648,408  $121,961,430  $157,528,429  $217,357,181  $197,391,465 
=============  ==============  ============  ============  ============  ============  ============  ============ 

F-25  

485BPOS
189th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 189th
Metropolitan Life Separate Account E  

STATEMENT OF CHANGES IN NET ASSETS  
FOR THE YEARS ENDED DECEMBER 31, 2002 AND 2001  

                                                        [Enlarge/Download Table]

                                                                      Metropolitan Fund                   
                                                   ------------------------------------------------------ 
                                                    Neuberger Berman Partners      T. Rowe Price Large    
                                                     Mid Cap Value Portfolio      Cap Growth Portfolio    
                                                   --------------------------  -------------------------- 
                                                     For the       For the       For the       For the    
                                                    Year Ended    Year Ended    Year Ended    Year Ended  
                                                   December 31,  December 31,  December 31,  December 31, 
                                                       2002          2001          2002          2001     
                                                   ------------  ------------  ------------  ------------ 
                                                                                                          
(DECREASE) INCREASE IN NET ASSETS:                                                                        
From operations:                                                                                          
 Net investment (loss) income..................... $ (1,335,825) $  1,195,041  $ (1,163,496) $ (1,748,863)
 Net realized (losses) gains from security                                                                
   transactions...................................     (588,042)    3,807,073    (8,230,356)     (682,160)
 Change in net unrealized (depreciation)                                                                  
   appreciation of investments....................  (16,047,845)  (10,467,310)  (26,390,985)  (17,787,487)
                                                   ------------  ------------  ------------  ------------ 
 Net (decrease) increase in net assets resulting                                                          
   from operations................................  (17,971,712)   (5,465,196)  (35,784,837)  (20,218,510)
                                                   ------------  ------------  ------------  ------------ 
From capital transactions:                                                                                
 Net premiums.....................................   24,528,755    30,474,103    16,607,597    28,687,964 
 Redemptions......................................  (11,844,163)  (10,432,016)  (10,459,277)   (9,751,130)
                                                   ------------  ------------  ------------  ------------ 
 Total net (redemptions) premiums.................   12,684,592    20,042,087     6,148,320    18,936,834 
 Net portfolio transfers..........................   (1,512,656)    5,817,583   (14,168,225)  (20,582,506)
 Net other transfers..............................       11,488        (5,285)      (47,292)      (34,941)
                                                   ------------  ------------  ------------  ------------ 
 Net (decrease) increase in net assets resulting                                                          
   from capital transactions......................   11,183,424    25,854,385    (8,067,197)   (1,680,613)
                                                   ------------  ------------  ------------  ------------ 
NET CHANGE IN NET ASSETS..........................   (6,788,288)   20,389,189   (43,852,034)  (21,899,123)
NET ASSETS--BEGINNING OF PERIOD...................  144,279,390   123,890,201   147,641,785   169,540,908 
                                                   ------------  ------------  ------------  ------------ 
NET ASSETS--END OF PERIOD......................... $137,491,102  $144,279,390  $103,789,751  $147,641,785 
                                                   ============  ============  ============  ============ 

See Notes to Financial Statements.  

F-26  

485BPOS
190th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 190th
                                                        [Enlarge/Download Table]

                                              Metropolitan Fund                                              
------------------------------------------------------------------------------------------------------------ 
 Lehman Brothers Aggregate      Morgan Stanley EAFE            Russell 2000               Putnam Large       
   Bond Index Portfolio           Index Portfolio             Index Portfolio         Cap Growth Portfolio   
--------------------------  --------------------------  --------------------------  ------------------------ 
  For the       For the       For the       For the       For the       For the       For the      For the   
 Year Ended    Year Ended    Year Ended    Year Ended    Year Ended    Year Ended    Year Ended   Year Ended 
December 31,  December 31,  December 31,  December 31,  December 31,  December 31,  December 31, December 31,
    2002          2001          2002          2001          2002          2001          2002         2001    
------------  ------------  ------------  ------------  ------------  ------------  ------------ ------------
                                                                                                             
$  4,224,773  $    489,786  $   (730,331) $   (817,472) $   (686,351) $ (1,099,774) $  (306,771) $  (290,076)
   3,229,161       988,979   (12,197,536)  (19,467,764)   (6,920,534)   (1,019,377)  (9,568,780)  (3,198,474)
  14,151,148     8,296,558    (6,039,133)   (2,918,733)  (21,331,382)    2,115,434      710,397   (4,848,712)
------------  ------------  ------------  ------------  ------------  ------------  -----------  ----------- 
  21,605,082     9,775,323   (18,967,000)  (23,203,969)  (28,938,267)       (3,717)  (9,165,154)  (8,337,262)
------------  ------------  ------------  ------------  ------------  ------------  -----------  ----------- 
  71,552,667    59,258,535    31,484,149    28,355,503    25,188,548    22,795,243    6,666,399   11,725,933 
 (21,649,754)  (13,628,069)   (8,786,993)   (6,204,831)  (10,278,268)   (7,832,759)  (1,774,289)  (1,094,842)
------------  ------------  ------------  ------------  ------------  ------------  -----------  ----------- 
  49,902,913    45,630,466    22,697,156    22,150,672    14,910,280    14,962,484    4,892,110   10,631,091 
  14,654,153    29,693,207     1,498,716     6,905,872     2,093,085    (8,465,618)    (827,035)   6,858,021 
     (54,738)      (39,733)      (11,531)      (11,272)        5,035       (14,940)       5,270        9,368 
------------  ------------  ------------  ------------  ------------  ------------  -----------  ----------- 
  64,502,328    75,283,940    24,184,341    29,045,272    17,008,400     6,481,926    4,070,345   17,498,480 
------------  ------------  ------------  ------------  ------------  ------------  -----------  ----------- 
  86,107,410    85,059,263     5,217,341     5,841,303   (11,929,867)    6,478,209   (5,094,809)   9,161,218 
 209,359,228   124,299,965    99,730,562    93,889,259   122,161,691   115,683,482   27,965,827   18,804,609 
------------  ------------  ------------  ------------  ------------  ------------  -----------  ----------- 
$295,466,638  $209,359,228  $104,947,903  $ 99,730,562  $110,231,824  $122,161,691  $22,871,018  $27,965,827 
============  ============  ============  ============  ============  ============  ===========  =========== 

F-27  

485BPOS
191st Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 191st
Metropolitan Life Separate Account E  

STATEMENT OF CHANGES IN NET ASSETS  
FOR THE YEARS ENDED DECEMBER 31, 2002 AND 2001  

                                                        [Enlarge/Download Table]

                                                           Metropolitan Fund                   
                                         ----------------------------------------------------- 

                                            State Street Research         MetLife Mid Cap      
                                              Aurora Portfolio         Stock Index Portfolio   
                                         --------------------------  ------------------------- 

                                           For the       For the       For the       For the   
                                          Year Ended    Year Ended    Year Ended    Year Ended 
                                         December 31,  December 31,  December 31,  December 31,
                                             2002          2001          2002          2001    
                                         ------------  ------------  ------------  ------------
                                                                                               
(DECREASE) INCREASE IN NET ASSETS:                                                             
From operations:                                                                               
 Net investment (loss) income........... $ (1,778,483) $ (1,181,736) $   (858,796) $  (542,629)
 Net realized (losses) gains from                                                              
   security transactions................      140,071     2,710,571    (2,570,115)    (704,463)
 Change in net unrealized                                                                      
   (depreciation) appreciation of                                                              
   investments..........................  (71,663,432)   11,525,102   (15,835,386)     907,048 
                                         ------------  ------------  ------------  ----------- 
 Net (decrease) increase in net assets                                                         
   resulting from operations............  (73,301,844)   13,053,937   (19,264,297)    (340,044)
                                         ------------  ------------  ------------  ----------- 
From capital transactions:                                                                     
 Net premiums...........................   64,952,373    57,884,018    31,850,585   27,729,414 
 Redemptions............................  (18,528,997)   (8,894,295)   (8,035,867)  (4,228,148)
                                         ------------  ------------  ------------  ----------- 
 Total net (redemptions) premiums.......   46,423,376    48,989,723    23,814,718   23,501,266 
 Net portfolio transfers................   46,056,104    95,499,619    15,929,248    3,843,424 
 Net other transfers....................       75,719      (144,748)        7,647       14,241 
                                         ------------  ------------  ------------  ----------- 
 Net (decrease) increase in net assets                                                         
   resulting from capital transactions..   92,555,199   144,344,594    39,751,613   27,358,931 
                                         ------------  ------------  ------------  ----------- 
NET CHANGE IN NET ASSETS................   19,253,355   157,398,531    20,487,316   27,018,887 
NET ASSETS--BEGINNING OF PERIOD.........  208,401,940    51,003,409    86,537,269   59,518,382 
                                         ------------  ------------  ------------  ----------- 
NET ASSETS--END OF PERIOD............... $227,655,295  $208,401,940  $107,024,585  $86,537,269 
                                         ============  ============  ============  =========== 

See Notes to Financial Statements.  

F-28  

485BPOS
192nd Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 192nd
                                                        [Enlarge/Download Table]

                            Metropolitan Fund                                     Zenith Fund        
------------------------------------------------------------------------  -------------------------- 
                                                         State Street                                
          Janus                Franklin Templeton       Research Large       State Street Research   
     Growth Portfolio      Small Cap Growth Portfolio Cap Value Portfolio    Bond Income Portfolio   
-------------------------  -------------------------  ------------------- -------------------------- 
                For the                    For the          For the                                  
  For the    Period May 1,   For the    Period May 1,    Period May 1,      For the       For the    
 Year Ended     2001 to     Year Ended     2001 to          2002 to        Year Ended    Year Ended  
December 31, December 31,  December 31, December 31,     December 31,     December 31,  December 31, 
    2002         2001          2002         2001             2002             2002          2001     
------------ ------------- ------------ ------------- ------------------- ------------  ------------ 
                                                                                                     
$  (116,512)  $  (34,781)  $  (126,140)  $  (23,853)      $    2,330      $ 20,862,750  $ 27,442,886 
 (1,882,958)    (284,528)   (2,259,828)     (92,759)        (266,085)       (9,378,074)      379,716 
 (1,738,189)    (221,552)     (802,862)     121,474          (53,743)       19,780,963       249,272 
-----------   ----------   -----------   ----------       ----------      ------------  ------------ 
 (3,737,659)    (540,861)   (3,188,830)       4,862         (317,498)       31,265,639    28,071,874 
-----------   ----------   -----------   ----------       ----------      ------------  ------------ 
  4,468,356    4,067,645     4,644,131    2,352,146          980,885        50,993,993    48,241,660 
   (649,094)    (104,809)     (779,669)     (59,962)         (57,995)      (45,822,604)  (39,191,743)
-----------   ----------   -----------   ----------       ----------      ------------  ------------ 
  3,819,262    3,962,836     3,864,462    2,292,184          922,890         5,171,389     9,049,917 
  1,534,438    4,965,438     3,988,094    4,705,317        2,525,640        (7,622,352)   26,561,578 
    (17,000)      (8,103)          970       (2,953)            (452)         (689,641)     (136,479)
-----------   ----------   -----------   ----------       ----------      ------------  ------------ 
  5,336,700    8,920,171     7,853,526    6,994,548        3,448,078        (3,140,604)   35,475,016 
-----------   ----------   -----------   ----------       ----------      ------------  ------------ 
  1,599,041    8,379,310     4,664,696    6,999,410        3,130,580        28,125,035    63,546,890 
  8,379,310           --     6,999,410           --               --       446,653,044   383,106,154 
-----------   ----------   -----------   ----------       ----------      ------------  ------------ 
$ 9,978,351   $8,379,310   $11,664,106   $6,999,410       $3,130,580      $474,778,079  $446,653,044 
===========   ==========   ===========   ==========       ==========      ============  ============ 

F-29  

485BPOS
193rd Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 193rd
Metropolitan Life Separate Account E  

STATEMENT OF CHANGES IN NET ASSETS  
FOR THE YEARS ENDED DECEMBER 31, 2002 and 2001  

                                                        [Enlarge/Download Table]

                                                             Zenith Fund                     
                                         --------------------------------------------------- 
                                           State Street Research         Davis Venture       
                                          Money Market Portfolio        Value Portfolio      
                                         ------------------------  ------------------------- 

                                           For the      For the      For the       For the   
                                          Year Ended   Year Ended   Year Ended    Year Ended 
                                         December 31, December 31, December 31,  December 31,
                                             2002         2001         2002          2001    
                                         ------------ ------------ ------------  ------------
                                                                                             
(DECREASE) INCREASE IN NET ASSETS:                                                           
From operations:                                                                             
 Net investment (loss) income........... $   (12,451) $   277,039  $   (206,647) $ 3,410,789 
 Net realized (losses) gains from                                                            
   security transactions................    (413,699)       7,391    (3,014,672)  (2,016,375)
 Change in net unrealized                                                                    
   (depreciation) appreciation of                                                            
   investments..........................     417,973       16,573    (8,476,246)  (7,151,686)
                                         -----------  -----------  ------------  ----------- 
 Net (decrease) increase in net assets                                                       
   resulting from operations............      (8,177)     301,003   (11,697,565)  (5,757,272)
                                         -----------  -----------  ------------  ----------- 
From capital transactions:                                                                   
 Net premiums...........................     141,673      145,344    14,236,039   22,970,731 
 Redemptions............................  (2,118,843)  (1,766,058)   (4,683,545)  (2,519,810)
                                         -----------  -----------  ------------  ----------- 
 Total net (redemptions) premiums.......  (1,977,170)  (1,620,714)    9,552,494   20,450,921 
 Net portfolio transfers................  (1,385,023)   1,530,800     2,966,432   14,699,473 
 Net other transfers....................      (6,467)        (407)      (23,689)     (17,824)
                                         -----------  -----------  ------------  ----------- 
 Net (decrease) increase in net assets                                                       
   resulting from capital transactions..  (3,368,660)     (90,321)   12,495,237   35,132,570 
                                         -----------  -----------  ------------  ----------- 
NET CHANGE IN NET ASSETS................  (3,376,837)     210,682       797,672   29,375,298 
NET ASSETS--BEGINNING OF PERIOD.........  12,548,800   12,338,118    58,354,363   28,979,065 
                                         -----------  -----------  ------------  ----------- 
NET ASSETS--END OF PERIOD............... $ 9,171,963  $12,548,800  $ 59,152,035  $58,354,363 
                                         ===========  ===========  ============  =========== 

See Notes to Financial Statements.  

F-30  

485BPOS
194th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 194th
                                                        [Enlarge/Download Table]

                                                Zenith Fund                                                
---------------------------------------------------------------------------------------------------------- 
      Loomis Sayles             MFS Investors               MFS Research              Harris Oakmark       
   Small Cap Portfolio         Trust Portfolio           Managers Portfolio       Focused Value Portfolio  
------------------------  -------------------------  -------------------------  -------------------------- 
                                          For the                    For the                     For the   
  For the      For the      For the    Period May 1,   For the    Period May 1,   For the     Period May 1,
 Year Ended   Year Ended   Year Ended     2001 to     Year Ended     2001 to     Year Ended      2001 to   
December 31, December 31, December 31, December 31,  December 31, December 31,  December 31,  December 31, 
    2002         2001         2002         2001          2002         2001          2002          2001     
------------ ------------ ------------ ------------- ------------ ------------- ------------  -------------
                                                                                                           
$  (183,050) $   785,264  $   (46,416)  $  (17,516)   $  (23,162)  $   (6,670)  $ (1,331,701)  $  (281,199)
 (2,317,368)    (566,119)    (359,047)     (40,034)     (222,160)      (6,449)    (1,820,374)       18,688 
 (1,785,701)  (1,185,244)    (951,022)     (53,859)     (413,525)     (45,135)   (14,656,939)    4,961,108 
-----------  -----------  -----------   ----------    ----------   ----------   ------------   ----------- 
 (4,286,119)    (966,099)  (1,356,485)    (111,409)     (658,847)     (58,254)   (17,809,014)    4,698,597 
-----------  -----------  -----------   ----------    ----------   ----------   ------------   ----------- 
  4,096,075    5,571,839    2,818,772    2,117,535       989,248      563,137     45,776,502    16,869,874 
 (1,225,608)    (430,618)    (429,424)     (70,413)     (163,199)     (20,851)   (10,153,825)   (1,451,046)
-----------  -----------  -----------   ----------    ----------   ----------   ------------   ----------- 
  2,870,467    5,141,221    2,389,348    2,047,122       826,049      542,286     35,622,677    15,418,828 
  1,308,370    2,621,334    1,521,544    2,231,462       940,646      981,355     49,368,108    57,897,479 
    (19,251)     (16,318)      (2,652)        (278)     (120,721)      (1,012)        19,954         4,865 
-----------  -----------  -----------   ----------    ----------   ----------   ------------   ----------- 
  4,159,586    7,746,237    3,908,240    4,278,306     1,645,974    1,522,629     85,010,739    73,321,172 
-----------  -----------  -----------   ----------    ----------   ----------   ------------   ----------- 
   (126,533)   6,780,138    2,551,755    4,166,897       987,127    1,464,375     67,201,725    78,019,769 
 16,059,940    9,279,802    4,166,897           --     1,464,375           --     78,019,769            -- 
-----------  -----------  -----------   ----------    ----------   ----------   ------------   ----------- 
$15,933,407  $16,059,940  $ 6,718,652   $4,166,897    $2,451,502   $1,464,375   $145,221,494   $78,019,769 
===========  ===========  ===========   ==========    ==========   ==========   ============   =========== 

F-31  

485BPOS
195th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 195th
Metropolitan Life Separate Account E  

STATEMENTS OF CHANGES IN NET ASSETS 
FOR THE YEARS ENDED DECEMBER 31, 2002 AND 2001  

                                                        [Enlarge/Download Table]

                                                               Zenith Fund                      
                                         ------------------------------------------------------ 
                                              Salomon Brothers                                  
                                               Strategic Bond             Salomon Brothers      
                                           Opportunities Portfolio    U.S. Government Portfolio 
                                         --------------------------  -------------------------- 
                                                      For the Period              For the Period
                                           For the     May 1, 2001     For the     May 1, 2001  
                                          Year Ended        to        Year Ended        to      
                                         December 31,  December 31,  December 31,  December 31, 
                                             2002          2001          2002          2001     
                                         ------------ -------------- ------------ --------------
                                                                                                
(DECREASE) INCREASE IN NET ASSETS:                                                              
From operations:                                                                                
 Net investment (loss) income........... $   940,225    $  (32,522)  $ 1,261,680   $   (67,139) 
 Net realized (losses) gains from                                                               
   security transactions................      59,911        14,575       163,311       140,914  
 Change in net unrealized                                                                       
   (depreciation) appreciation of                                                               
   investments..........................     712,043       110,225     1,598,086        13,739  
                                         -----------    ----------   -----------   -----------  
 Net (decrease) increase in net assets                                                          
   resulting from operations............   1,712,179        92,278     3,023,077        87,514  
                                         -----------    ----------   -----------   -----------  
From capital transactions:                                                                      
 Net premiums...........................   9,357,545     3,660,495    26,611,616     9,311,981  
 Redemptions............................  (1,646,534)     (108,151)   (4,736,316)     (635,745) 
                                         -----------    ----------   -----------   -----------  
 Total net (redemptions) premiums.......   7,711,011     3,552,344    21,875,300     8,676,236  
 Net portfolio transfers................  12,008,736     4,403,445    47,121,418     9,761,913  
 Net other transfers....................      34,339        (2,547)      (11,933)       (3,063) 
                                         -----------    ----------   -----------   -----------  
 Net (decrease) increase in net assets                                                          
   resulting from capital transactions..  19,754,086     7,953,242    68,984,785    18,435,086  
                                         -----------    ----------   -----------   -----------  
NET CHANGE IN NET ASSETS................  21,466,265     8,045,520    72,007,862    18,522,600  
NET ASSETS--BEGINNING OF PERIOD.........   8,045,520            --    18,522,600            --  
                                         -----------    ----------   -----------   -----------  
NET ASSETS--END OF PERIOD............... $29,511,785    $8,045,520   $90,530,462   $18,522,600  
                                         ===========    ==========   ===========   ===========  

See Notes to Financial Statements.  

F-32  

485BPOS
196th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 196th
                                                        [Enlarge/Download Table]

                   Zenith Fund                                         Fidelity Fund                    
-------------------------------------------------  ---------------------------------------------------- 
                       FI Mid Cap     MFS Total          Fidelity VIP               Fidelity VIP        
FI Structured Equity Opportunities      Return           Money Market               Equity-Income       
     Portfolio         Portfolio      Portfolio            Portfolio                  Portfolio         
-------------------- -------------- -------------- ------------------------  -------------------------- 
   For the Period    For the Period For the Period                                                      
    May 1, 2002       May 1, 2002   July 12, 2002    For the      For the      For the       For the    
         to                to             to        Year Ended   Year Ended   Year Ended    Year Ended  
    December 31,      December 31,   December 31,  December 31, December 31, December 31,  December 31, 
        2002              2002           2002          2002         2001         2002          2001     
-------------------- -------------- -------------- ------------ ------------ ------------  ------------ 
                                                                                                        
     $   (2,404)       $  (10,413)       $--       $    77,810  $   379,811  $  3,833,493  $  6,992,912 
        (17,138)         (113,293)        --                --       (1,383)      763,466     1,349,973 
             61            33,545         --                --           --   (28,590,772)  (16,321,538)
     ----------        ----------        ---       -----------  -----------  ------------  ------------ 
        (19,481)          (90,161)        --            77,810      378,428   (23,993,813)   (7,978,653)
     ----------        ----------        ---       -----------  -----------  ------------  ------------ 
        378,551           991,362         69         2,227,625    3,646,116    26,832,203    21,719,604 
         (6,784)          (83,795)        --        (4,742,095)  (6,814,819)  (21,292,137)   (8,013,039)
     ----------        ----------        ---       -----------  -----------  ------------  ------------ 
        371,767           907,567         69        (2,514,470)  (3,168,703)    5,540,066    13,706,565 
        719,489         1,856,364         (1)       (1,736,104)   2,287,497    (7,685,496)   (3,203,013)
           (180)             (879)        --            (1,086)         (66)     (243,007)      (48,131)
     ----------        ----------        ---       -----------  -----------  ------------  ------------ 
      1,091,076         2,763,052         68        (4,251,660)    (881,272)   (2,388,437)   10,455,421 
     ----------        ----------        ---       -----------  -----------  ------------  ------------ 
      1,071,595         2,672,891         68        (4,173,850)    (502,844)  (26,382,250)    2,476,768 
             --                --         --        15,237,335   15,740,179   133,430,367   130,953,599 
     ----------        ----------        ---       -----------  -----------  ------------  ------------ 
     $1,071,595        $2,672,891        $68       $11,063,485  $15,237,335  $107,048,117  $133,430,367 
     ==========        ==========        ===       ===========  ===========  ============  ============ 

F-33  

485BPOS
197th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 197th
Metropolitan Life Separate Account E  

STATEMENTS OF CHANGES IN NET ASSETS 
FOR THE YEARS ENDED DECEMBER 31, 2002 AND 2001  

                                                        [Enlarge/Download Table]

                                                             Fidelity Fund                     
                                         ----------------------------------------------------- 

                                                Fidelity VIP                Fidelity VIP       
                                              Growth Portfolio           Overseas Portfolio    
                                         --------------------------  ------------------------- 
                                           For the       For the       For the      For the    
                                          Year Ended    Year Ended    Year Ended   Year Ended  
                                         December 31,  December 31,  December 31, December 31, 
                                             2002          2001          2002         2001     
                                         ------------  ------------  ------------ ------------ 
                                                                                               
(DECREASE) INCREASE IN NET ASSETS:                                                             
From operations:                                                                               
 Net investment (loss) income........... $ (1,063,480) $ 12,771,693  $   (35,409) $  4,124,361 
 Net realized (losses) gains from                                                              
   security transactions................     (118,628)    4,343,482      247,005   (11,481,626)
 Change in net unrealized                                                                      
   (depreciation) appreciation of                                                              
   investments..........................  (57,511,100)  (59,277,205)  (5,101,215)      569,907 
                                         ------------  ------------  -----------  ------------ 
 Net (decrease) increase in net assets                                                         
   resulting from operations............  (58,693,208)  (42,162,030)  (4,889,619)   (6,787,358)
                                         ------------  ------------  -----------  ------------ 
From capital transactions:                                                                     
 Net premiums...........................   36,628,253    31,287,806    6,481,400     4,230,751 
 Redemptions............................  (26,325,330)  (11,649,137)  (4,381,451)   (2,224,873)
                                         ------------  ------------  -----------  ------------ 
 Total net (redemptions) premiums.......   10,302,923    19,638,669    2,099,949     2,005,878 
 Net portfolio transfers................  (13,952,990)  (12,954,638)  (2,825,268)   (2,822,921)
 Net other transfers....................     (724,277)      (45,081)     385,220        (9,706)
                                         ------------  ------------  -----------  ------------ 
 Net (decrease) increase in net assets                                                         
   resulting from capital transactions..   (4,374,344)    6,638,950     (340,099)     (826,749)
                                         ------------  ------------  -----------  ------------ 
NET CHANGE IN NET ASSETS................  (63,067,552)  (35,523,080)  (5,229,718)   (7,614,107)
NET ASSETS--BEGINNING OF PERIOD.........  190,039,910   225,562,990   24,641,578    32,255,685 
                                         ------------  ------------  -----------  ------------ 
NET ASSETS--END OF PERIOD............... $126,972,358  $190,039,910  $19,411,860  $ 24,641,578 
                                         ============  ============  ===========  ============ 

See Notes to Financial Statements.  

F-34  

485BPOS
198th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 198th
                                                        [Enlarge/Download Table]

                   Fidelity Fund                                        Calvert Fund                    
---------------------------------------------------  -------------------------------------------------- 
      Fidelity VIP               Fidelity VIP                 Calvert                   Calvert         
    Investment Grade            Asset Manager             Social Balanced           Social Mid Cap      
     Bond Portfolio               Portfolio                  Portfolio             Growth Portfolio     
------------------------  -------------------------  ------------------------  ------------------------ 
  For the      For the      For the       For the      For the      For the      For the      For the   
 Year Ended   Year Ended   Year Ended    Year Ended   Year Ended   Year Ended   Year Ended   Year Ended 
December 31, December 31, December 31,  December 31, December 31, December 31, December 31, December 31,
    2002         2001         2002          2001         2002         2001         2002         2001    
------------ ------------ ------------  ------------ ------------ ------------ ------------ ------------
                                                                                                        
$   448,123  $   492,357  $  1,461,744  $ 2,573,671  $   734,153  $ 2,290,450  $   (97,250) $   690,657 
    298,157       22,431      (875,165)     (72,641)    (357,440)     409,210     (994,226)      91,761 
    959,591      412,609    (5,683,887)  (5,345,005)  (7,333,126)  (6,985,802)  (2,556,138)  (2,456,958)
-----------  -----------  ------------  -----------  -----------  -----------  -----------  ----------- 
  1,705,871      927,397    (5,097,308)  (2,843,975)  (6,956,413)  (4,286,142)  (3,647,614)  (1,674,540)
-----------  -----------  ------------  -----------  -----------  -----------  -----------  ----------- 
  8,330,403    3,168,235    11,658,288    5,275,568    9,488,386    6,593,693    4,282,754    2,975,912 
 (5,340,250)  (1,265,495)  (10,127,182)  (3,352,358)  (6,243,133)  (2,394,706)  (2,749,441)    (698,397)
-----------  -----------  ------------  -----------  -----------  -----------  -----------  ----------- 
  2,990,153    1,902,740     1,531,106    1,923,210    3,245,253    4,198,987    1,533,313    2,277,515 
  1,455,562    2,275,631    (3,159,932)  (2,607,518)  (3,412,895)  (2,530,451)  (1,252,159)    (484,072)
    (12,433)         434       (81,251)     (32,230)     (95,334)      (5,289)      (2,721)      (6,559)
-----------  -----------  ------------  -----------  -----------  -----------  -----------  ----------- 
  4,433,282    4,178,805    (1,710,077)    (716,538)    (262,976)   1,663,247      278,433    1,786,884 
-----------  -----------  ------------  -----------  -----------  -----------  -----------  ----------- 
  6,139,153    5,106,202    (6,807,385)  (3,560,513)  (7,219,389)  (2,622,895)  (3,369,181)     112,344 
 16,070,411   10,964,209    52,472,710   56,033,223   51,802,974   54,425,869   12,327,070   12,214,726 
-----------  -----------  ------------  -----------  -----------  -----------  -----------  ----------- 
$22,209,564  $16,070,411  $ 45,665,325  $52,472,710  $44,583,585  $51,802,974  $ 8,957,889  $12,327,070 
===========  ===========  ============  ===========  ===========  ===========  ===========  =========== 

F-35  

485BPOS
199th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 199th
Metropolitan Life Separate Account E  

STATEMENTS OF CHANGES IN NET ASSETS 
FOR THE YEARS ENDED DECEMBER 31, 2002 AND 2001  

                                                                [Download Table]

                                                Met Investors Fund                  
                               ---------------------------------------------------- 

                                    Lord Abbett Bond             MFS Research       
                                  Debenture Portfolio      International Portfolio  
                               -------------------------  ------------------------- 
                                                                          For the   
                                 For the       For the      For the    Period May 1,
                                Year Ended    Year Ended   Year Ended     2001 to   
                               December 31,  December 31, December 31, December 31, 
                                   2002          2001         2002         2001     
                               ------------  ------------ ------------ -------------
                                                                                    
(DECREASE) INCREASE IN NET                                                          
 ASSETS:                                                                            
From operations:                                                                    
 Net investment (loss) income. $  5,971,376  $ 7,319,216   $  (60,103)  $   (8,430) 
 Net realized (losses) gains                                                        
   from security transactions.  (14,253,624)  (4,420,779)      22,886     (154,703) 
 Change in net unrealized                                                           
   (depreciation)                                                                   
   appreciation of investments    8,175,221   (5,106,728)    (735,047)      64,927  
                               ------------  -----------   ----------   ----------  
 Net (decrease) increase in                                                         
   net assets resulting from                                                        
   operations.................     (107,027)  (2,208,291)    (772,264)     (98,206) 
                               ------------  -----------   ----------   ----------  
From capital transactions:                                                          
 Net premiums.................    7,860,124    8,045,981    2,885,243    1,907,461  
 Redemptions..................   (6,054,118)  (6,105,729)    (280,314)     (28,536) 
                               ------------  -----------   ----------   ----------  
 Total net (redemptions)                                                            
   premiums...................    1,806,006    1,940,252    2,604,929    1,878,925  
 Net portfolio transfers......   (3,407,244)  (1,107,976)   2,892,536    1,830,503  
 Net other transfers..........      (70,984)      (6,157)       1,407          521  
                               ------------  -----------   ----------   ----------  
 Net (decrease) increase in                                                         
   net assets resulting from                                                        
   capital transactions.......   (1,672,222)     826,119    5,498,872    3,709,949  
                               ------------  -----------   ----------   ----------  
NET CHANGE IN NET ASSETS......   (1,779,249)  (1,382,172)   4,726,608    3,611,743  
NET ASSETS--BEGINNING OF                                                            
 PERIOD.......................   59,095,592   60,477,764    3,611,743           --  
                               ------------  -----------   ----------   ----------  
NET ASSETS--END OF PERIOD..... $ 57,316,343  $59,095,592   $8,338,351   $3,611,743  
                               ============  ===========   ==========   ==========  

See Notes to Financial Statements.  

F-36  

485BPOS
200th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 200th
                                                        [Enlarge/Download Table]

                                                        Met Investors Fund                                          
--------------------------------------------------------------------------------------------------------------------

                                                                                   Met/AIM Mid Cap                  
       MFS Mid Cap                    PIMCO                       PIMCO              Core Equity   Met/AIM Small Cap
     Growth Portfolio        Total Return Portfolio       Innovation Portfolio        Portfolio    Growth Portfolio 
-------------------------  --------------------------  --------------------------  --------------- -----------------
                For the                     For the                     For the        For the          For the     
  For the    Period May 1,   For the     Period May 1,   For the     Period May 1,  Period May 1,    Period May 1,  
 Year Ended     2001 to     Year Ended      2001 to     Year Ended      2001 to        2002 to          2002 to     
December 31, December 31,  December 31,  December 31,  December 31,  December 31,   December 31,     December 31,   
    2002         2001          2002          2001          2002          2001           2002             2002       
------------ ------------- ------------  ------------- ------------  ------------- --------------- -----------------
                                                                                                                    
$   (85,276)  $   (43,236) $   (923,205)  $   630,468  $   (168,001)  $   (48,151)   $  (15,789)      $   (6,804)   
 (2,005,974)     (272,607)      451,129       113,883    (8,862,942)      571,002      (214,427)        (142,271)   
 (6,237,774)      497,687     7,040,652      (298,698)   (2,079,595)     (247,179)      (61,389)         (39,983)   
-----------   -----------  ------------   -----------  ------------   -----------    ----------       ----------    
 (8,329,024)      181,844     6,568,576       445,653   (11,110,538)      275,672      (291,605)        (189,058)   
-----------   -----------  ------------   -----------  ------------   -----------    ----------       ----------    
  6,655,945     4,173,265    42,097,180    13,011,753     4,121,129     2,672,212     1,431,405          735,136    
 (1,005,157)     (174,183)   (5,822,340)     (447,923)   (1,006,835)     (164,818)     (134,737)         (20,635)   
-----------   -----------  ------------   -----------  ------------   -----------    ----------       ----------    
  5,650,788     3,999,082    36,274,840    12,563,830     3,114,294     2,507,394     1,296,668          714,501    
  3,186,086     8,952,053    65,212,134    16,785,028     4,297,192    12,815,220     3,407,582        1,239,643    
      4,791          (153)      (40,066)       (7,191)       (4,822)     (301,763)          102            4,482    
-----------   -----------  ------------   -----------  ------------   -----------    ----------       ----------    
  8,841,665    12,950,982   101,446,908    29,341,667     7,406,664    15,020,851     4,704,352        1,958,626    
-----------   -----------  ------------   -----------  ------------   -----------    ----------       ----------    
    512,641    13,132,826   108,015,484    29,787,320    (3,703,874)   15,296,523     4,412,747        1,769,568    
 13,132,826            --    29,787,320            --    15,296,523            --            --               --    
-----------   -----------  ------------   -----------  ------------   -----------    ----------       ----------    
$13,645,467   $13,132,826  $137,802,804   $29,787,320  $ 11,592,649   $15,296,523    $4,412,747       $1,769,568    
===========   ===========  ============   ===========  ============   ===========    ==========       ==========    

State Street                                                                    
Research                                                                    
Concentrated                                                                    
International                                                                   
Portfolio                                                                   
-------------                                                                   
For the                                                                   
Period May 1,                                                                   
2002 to                                                                   
December 31,                                                                    
2002                                                                    
-------------                                                                   
$ (1,945)                                                                   
(35,493)                                                                  
(2,285)                                                                 
--------                                                                    
(39,723)                                                                  
--------                                                                    
498,830                                                                   
(8,807)                                                                 
--------                                                                    
490,023                                                                   
349,381                                                                   
(5,237)                                                                 
--------                                                                    
834,167                                                                   
--------                                                                    
794,444                                                                   
--                                                              
--------                                                                    
$794,444                                                                    
========                                                                    

F-37  

485BPOS
201st Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 201st
Metropolitan Life Separate Account E  

STATEMENTS OF CHANGES IN NET ASSETS 
FOR THE YEARS ENDED DECEMBER 31, 2002 AND 2001  

                                                        [Enlarge/Download Table]

                                               Met                                                               
                                          Investors Fund                       American Fund                     
                                         ---------------- ------------------------------------------------------ 
                                           Oppenheimer                                                           
                                             Capital                                                             
                                           Appreciation         American Funds              American Funds       
                                            Portfolio          Growth Portfolio         Growth-Income Portfolio  
                                         ---------------- --------------------------  -------------------------- 
                                                                           For the                     For the   
                                          For the Period    For the     Period May 1,   For the     Period May 1,
                                         July 12, 2002 to  Year Ended      2001 to     Year Ended      2001 to   
                                           December 31,   December 31,  December 31,  December 31,  December 31, 
                                               2002           2002          2001          2002          2001     
                                         ---------------- ------------  ------------- ------------  -------------
                                                                                                                 
(DECREASE) INCREASE IN NET ASSETS:                                                                               
From operations:                                                                                                 
 Net investment (loss) income...........      $   (1)     $   (942,527)  $ 1,948,431  $    124,410   $   404,468 
 Net realized (losses) gains from                                                                                
   security transactions................          --        (3,452,758)   (2,689,026)   (1,338,173)     (246,604)
 Change in net unrealized                                                                                        
   (depreciation) appreciation of                                                                                
   investments..........................        (125)      (18,976,831)      770,317   (16,039,489)      413,295 
                                              ------      ------------   -----------  ------------   ----------- 
 Net (decrease) increase in net assets                                                                           
   resulting from operations............        (126)      (23,372,116)       29,722   (17,253,252)      571,159 
                                              ------      ------------   -----------  ------------   ----------- 
From capital transactions:                                                                                       
 Net premiums...........................       3,047        42,684,747    17,039,465    43,119,386    13,166,365 
 Redemptions............................          --        (4,824,809)     (454,636)   (4,734,047)     (443,449)
                                              ------      ------------   -----------  ------------   ----------- 
 Total net (redemptions) premiums.......       3,047        37,859,938    16,584,829    38,385,339    12,722,916 
 Net portfolio transfers................         229        43,381,213    29,950,379    46,482,099    22,928,444 
 Net other transfers....................          --            70,992       (17,817)       68,773        (4,587)
                                              ------      ------------   -----------  ------------   ----------- 
 Net (decrease) increase in net assets                                                                           
   resulting from capital transactions..       3,276        81,312,143    46,517,391    84,936,211    35,646,773 
                                              ------      ------------   -----------  ------------   ----------- 
NET CHANGE IN NET ASSETS................       3,150        57,940,027    46,547,113    67,682,959    36,217,932 
NET ASSETS--BEGINNING OF PERIOD.........          --        46,547,113            --    36,217,932            -- 
                                              ------      ------------   -----------  ------------   ----------- 
NET ASSETS--END OF PERIOD...............      $3,150      $104,487,140   $46,547,113  $103,900,891   $36,217,932 
                                              ======      ============   ===========  ============   =========== 

See Notes to Financial Statements.  

F-38  

485BPOS
202nd Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 202nd
                                                                [Download Table]


      American Fund       
------------------------- 

  American Funds Global   
   Small Cap Portfolio    
------------------------- 
                For the   
  For the    Period May 1,
 Year Ended     2001 to   
December 31, December 31, 
    2002         2001     
------------ -------------
                          
$   (67,951)  $   38,470  
    198,118     (173,168) 

 (4,288,626)     561,696  
-----------   ----------  

 (4,158,459)     426,998  
-----------   ----------  
  9,135,021    2,930,262  
   (954,950)     (53,280) 
-----------   ----------  
  8,180,071    2,876,982  
  7,184,816    4,329,114  
     (1,458)     (10,473) 
-----------   ----------  

 15,363,429    7,195,623  
-----------   ----------  
 11,204,970    7,622,621  
  7,622,621           --  
-----------   ----------  
$18,827,591   $7,622,621  
===========   ==========  

F-39  

485BPOS
203rd Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 203rd
Metropolitan Life Separate Account E  

NOTES TO FINANCIAL STATEMENTS 
December 31, 2002 

1.  BUSINESS                                                                    

Metropolitan Life Separate Account E (the "Separate Account"), a separate 
account of Metropolitan Life Insurance Company ("Metropolitan Life"), was       
established on September 27, 1983 to support Metropolitan Life's operations     
with respect to certain variable annuity contracts ("Contracts"). Metropolitan  
Life is a wholly owned subsidiary of MetLife, Inc. ("MetLife"). The Separate    
Account was registered as a unit investment trust on April 6, 1984 under the    
Investment Company Act of 1940, as amended, and exists in accordance with the   
regulations of the New York Insurance Department. The Separate Account          
presently consists of fifty-five sub-accounts that support various Contracts    
(VestMet, Preference Plus Account, Preference Plus Select, Enhanced Preference  
Plus Account, Financial Freedom Account, MetLife Asset Builder, MetLife Income  
Security Plan, MetLife Settlement Plus and MetLife Financial Freedom Select).   

 The Separate Account is divided into sub-accounts invested in shares of the
corresponding portfolios, series or funds of the Metropolitan Series Fund, Inc. 
(the "Metropolitan Fund"), the New England Zenith Fund (the "Zenith Fund"), the 
Fidelity Variable Insurance Products Funds (the "Fidelity Fund"), the Calvert   
Variable Series Fund, Inc. (the "Calvert Fund"), the MetLife Investors Series   
Trust (the "Met Investors Fund") and the American Funds Insurance Series, (the  
"American Fund"), collectively, (the "Funds"). For convenience, the portfolios, 
series and funds are referred to as "portfolios."                               

The assets of the Separate Account are registered in the name of          
Metropolitan Life. Under applicable insurance law, the assets and liabilities   
of the Separate Account are clearly identified and distinguished from           
Metropolitan Life's other assets and liabilities. The portion of the Separate   
Account's assets applicable to the variable annuity contracts is not chargeable 
with liabilities arising out of any other business Metropolitan Life may        
conduct.                                                                        

Metropolitan Fund:                                    
State Street Research Investment Trust Portfolio  
Variable B Portfolio (d)                          
Variable C Portfolio (d)                          
Variable D Portfolio (d)                          
State Street Research Diversified Portfolio       
State Street Research Aggressive Growth Portfolio 
MetLife Stock Index Portfolio                     
Putnam International Stock Portfolio              
Janus Mid Cap Portfolio                           
T. Rowe Price Small Cap Growth Portfolio          
Scudder Global Equity Portfolio                   
Harris Oakmark Large Cap Value Portfolio          
Neuberger Berman Partners Mid Cap Value Portfolio 
T. Rowe Price Large Cap Growth Portfolio          
Lehman Brothers Aggregate Bond Index Portfolio    
Morgan Stanley EAFE Index Portfolio               
Russell 2000 Index Portfolio                      
Putnam Large Cap Growth Portfolio                 
State Street Research Aurora Portfolio            
MetLife Mid Cap Stock Index Portfolio             
Janus Growth Portfolio (a)                        
Franklin Templeton Small Cap Growth Portfolio (a) 
 State Street Research Large Cap Value Portfolio (b)

Zenith Fund:                                          
State Street Research Bond Income Portfolio       
State Street Research Money Market Portfolio      
Davis Venture Value Portfolio                     
Loomis Sayles Small Cap Portfolio                 
MFS Investors Trust Portfolio (a)                 
MFS Research Managers Portfolio (a)               
Harris Oakmark Focused Value Portfolio (a)        
Zenith Fund (continued):                                          
Salomon Brothers Strategic Bond Opportunities Portfolio (a)   
Salomon Brothers U.S. Government Portfolio (a)                
FI Structured Equity Portfolio (b)                            
FI Mid Cap Opportunities Portfolio (b)                        
MFS Total Return Portfolio (c)                                

Fidelity Fund:                                                    
Fidelity VIP Money Market Portfolio                           
Fidelity VIP Equity-Income Portfolio                          
Fidelity VIP Growth Portfolio                                 
Fidelity VIP Overseas Portfolio                               
Fidelity VIP Investment Grade Bond Portfolio                  
Fidelity VIP Asset Manager Portfolio                          

Calvert Fund:                                                     
Calvert Social Balanced Portfolio                             
Calvert Social Mid Cap Growth Portfolio                       

Met Investors Fund:                                               
Lord Abbett Bond Debenture Portfolio                          
MFS Research International Portfolio (a)                      
MFS Mid Cap Growth Portfolio (a)                              
PIMCO Total Return Portfolio (a)                              
PIMCO Innovation Portfolio (a)                                
Met/AIM Mid Cap Core Equity Portfolio (b)                     
Met/AIM Small Cap Growth Portfolio (b)                        
State Street Research Concentrated International Portfolio (b)
Oppenheimer Capital Appreciation Portfolio (c)                

American Fund:                                                    
American Funds Growth Portfolio (a)                           
American Funds Growth-Income Portfolio (a)                    
American Funds Global Small Cap Portfolio (a)                 

F-40  

485BPOS
204th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 204th
NOTES TO FINANCIAL STATEMENTS -- (Continued)  

(a) On May 1, 2001, operations commenced for the fourteen new sub-accounts
added to the Separate Account on that date: Janus Growth Portfolio, Franklin    
Templeton Small Cap Growth Portfolio, MFS Investors Trust Portfolio, MFS        
Research Managers Portfolio, Harris Oakmark Focused Value Portfolio, Salomon    
Brothers Strategic Bond Opportunities Portfolio, Salomon Brothers U.S.          
Government Portfolio, MFS Research International Portfolio, MFS Mid Cap Growth  
Portfolio, PIMCO Total Return Portfolio, PIMCO Innovation Portfolio, American   
Funds Growth Portfolio, American Funds Growth-Income Portfolio and American     
Funds Global Small Cap Portfolio.                                               

 (b) On May 1, 2002, operations commenced for the six new sub-accounts added
to the separate account on that date: State Street Research Large Cap Value     
Portfolio, FI Structured Equity Portfolio, FI Mid Cap Opportunities Portfolio,  
Met/AIM Mid Cap Core Equity Portfolio, Met/AIM Small Cap Growth Portfolio, and  
State Street Research Concentrated International Equity Portfolio.              

(c) On July 12, 2002, operations commenced for the two new sub-accounts   
added to the Separate Account on that date: MFS Total Return and Oppenheimer    
Capital Appreciation Portfolio.                                                 

  (d) Variable B Portfolio, Variable C Portfolio and Variable D Portfolio have
contracts that only invest in the State Street Research Investment Trust        
Portfolio.                                                                      

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 Metropolitan Life, which is taxed as a life  
 insurance company under the provisions of the Internal Revenue Code
      ("IRC"). Under the current provisions of the IRC, Metropolitan Life 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. Metropolitan Life 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. Net Premiums                                                         

     In the case of certain policies, Metropolitan Life deducts a sales load
and a state premium tax charge from premiums before amounts are   
 allocated to the Separate Account. In the case of certain policies,
Metropolitan Life also deducts a Federal income tax charge before 
   amounts are allocated to the Separate Account. The Federal income tax
charge is imposed in connection with certain policies to recover a
 portion of the Federal income tax adjustment attributable to policy
acquisition expenses.                                             

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 Metropolitan Life are credited as   
    Accumulation or Annuity Units as of the end of the valuation period in
which received, as provided in the prospectus.                    

F-41  

485BPOS
205th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 205th
NOTES TO FINANCIAL STATEMENTS -- (Continued)  

3.  EXPENSES                                                                    

With respect to assets in the Separate Account that support certain       
policies, Metropolitan Life deducts a charge from the net assets of the         
Separate Account for the assumption of general administrative expenses and      
mortality and expense risks. This charge is equivalent to an effective annual   
rate of 1.5% of the average daily values of the net assets in the Separate      
Account for VestMet contracts and 1.25% for Preference Plus contracts. Of this  
charge, Metropolitan Life estimates 0.75% is for general administrative         
expenses for VestMet contracts, 0.50% is for Preference Plus contracts and      
0.75% is for the mortality and expense risk on both contracts. However, for the 
Enhanced Preference Plus Account and Financial Freedom Account contracts, the   
charge is equivalent to an effective annual rate of 0.95% of the average daily  
value of the assets for these contracts. Of this charge, Metropolitan Life      
estimates 0.20% is for general administrative expenses and 0.75% is for         
mortality and expense risk. The Variable B, Variable C and Variable D contracts 
are charged for administrative expenses, mortality and expense risk according   
to the rating under their respective contracts. The Separate Account charges    
for Preference Plus Select contracts with the basic death benefit are as        
follows: 1.25% for the B class; 1.50% for the L class; 1.65% for the C class;   
and 1.70% for the first seven years of the Bonus class (after which this        
reverts to the B class charge). There are additional Separate Account charges   
associated with the available optional riders. These are as follows: 0.10% for  
the Annual Step-Up Death Benefit; 0.25% for the Greater of Annual Step-Up or 5% 
Annual Increase Death Benefit; and 0.25% for the Earnings Preservation Benefit. 
For MetLife Settlement Plus, MetLife Income Security Plan and MetLife Financial 
Freedom Select contracts, the charge is equivalent to an effective annual rate  
of 1.25% of the average daily value of the assets for these contracts. The      
charge for MetLife Asset Builder is 0.95%, but cannot be greater than 1.25%.    

F-42  

485BPOS
206th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 206th
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:                                        

                                                        [Enlarge/Download Table]

                                                                Purchases    Sales   
                                                                ---------- ----------
                                                                   (In thousands)    
                                                                                     
Metropolitan Fund:                                                                   
   State Street Research Investment Trust Portfolio............ $   30,853 $  287,104
   Variable B Portfolio........................................        481      6,732
   Variable C Portfolio........................................         69        648
   Variable D Portfolio........................................         --         --
   State Street Research Diversified Portfolio.................     65,473    342,156
   State Street Research Aggressive Growth Portfolio...........     23,669    115,176
   MetLife Stock Index Portfolio...............................    420,104    561,861
   Putnam International Stock Portfolio........................    411,007    420,977
   Janus Mid Cap Portfolio.....................................     91,711    203,726
   T. Rowe Price Small Cap Growth Portfolio....................    311,130    326,008
   Scudder Global Equity Portfolio.............................     13,340     21,758
   Harris Oakmark Large Cap Value Portfolio....................    100,531     34,140
   Neuberger Berman Partners Mid Cap Value Portfolio...........     48,370     38,522
   T. Rowe Price Large Cap Growth Portfolio....................     14,649     23,880
   Lehman Brothers Aggregate Bond Index Portfolio..............    108,229     39,502
   Morgan Stanley EAFE Index Portfolio.........................     60,146     36,692
   Russell 2000 Index Portfolio................................     39,987     23,665
   Putnam Large Cap Growth Portfolio...........................     13,349      9,585
   State Street Research Aurora Portfolio......................    149,602     58,825
   MetLife Mid Cap Stock Index Portfolio.......................     51,944     13,051
   Janus Growth Portfolio......................................     10,721      5,501
   Franklin Templeton Small Cap Growth Portfolio...............     16,878      9,150
   State Street Research Large Cap Value Portfolio.............      6,188      2,738
Zenith Fund:                                                                         
   State Street Research Bond Income Portfolio.................    534,447    514,086
   State Street Research Money Market Portfolio................     11,975     15,365
   Davis Venture Value Portfolio...............................     19,568      7,280
   Loomis Sayles Small Cap Portfolio...........................     11,756      7,779
   MFS Investors Trust Portfolio...............................      7,254      3,392
   MFS Research Managers Portfolio.............................      3,616      1,993
   Harris Oakmark Focused Value Portfolio......................    106,352     22,673
   Salomon Brothers Strategic Bond Opportunities Portfolio.....     28,367      7,672
   Salomon Brothers U.S. Government Portfolio..................     84,803     14,556
   FI Structured Equity Portfolio..............................      1,240        152
   FI Mid Cap Opportunities Portfolio..........................      4,356      1,603
   MFS Total Return Portfolio..................................         --         --
Fidelity Fund:                                                                       
   Fidelity VIP Money Market Portfolio.........................    129,366    133,540
   Fidelity VIP Equity-Income Portfolio........................     12,674     11,229
   Fidelity VIP Growth Portfolio...............................      9,179     14,616
   Fidelity VIP Overseas Portfolio.............................     57,136     57,511
   Fidelity VIP Investment Grade Bond Portfolio................     10,479      5,597
   Fidelity VIP Asset Manager Portfolio........................      5,603      5,851
Calvert Fund:                                                                        
   Calvert Social Balanced Portfolio...........................      5,728      5,257
   Calvert Social Mid Cap Growth Portfolio.....................      2,260      2,079
Met Investors Fund:                                                                  
   Lord Abbett Bond Debenture Portfolio........................     80,180     75,880
   MFS Research International Portfolio........................     12,331      6,893
   MFS Mid Cap Growth Portfolio................................     13,510      4,754
   PIMCO Total Return Portfolio................................    113,974     13,451
   PIMCO Innovation Portfolio..................................     36,596     29,357
   Met/AIM Mid Cap Core Equity Portfolio.......................      6,018      4,481
   Met/AIM Small Cap Growth Portfolio..........................      5,131         28
   State Street Research Concentrated International Portfolio..      1,375        543
   Oppenheimer Capital Appreciation Portfolio..................          3         --
American Fund:                                                                       
   American Funds Growth Portfolio.............................     89,360      9,110
   American Funds Growth-Income Portfolio......................     89,672      4,491
   American Funds Global Small Cap Portfolio...................     22,349      7,062
                                                                ---------- ----------
   Total....................................................... $3,505,089 $3,569,678
                                                                ========== ==========

F-43  

485BPOS
207th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 207th
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:                                                           

                                                                [Download Table]

                                                 Metropolitan Fund                
                                 -------------------------------------------------

                                   State Street                                   
                                     Research                                     
                                 Investment Trust Variable B Variable C Variable D
                                    Portfolio     Portfolio  Portfolio  Portfolio 
                                 ---------------- ---------- ---------- ----------
                                                                                  
(In Thousands)                                                                    
Outstanding at December 31, 2001      59,681         500         21         --    
Activity during 2002:                                                             
  Issued........................       5,080           1         --         14    
  Redeemed......................      14,871         195         13          4    
                                      ------         ---         --         --    
Outstanding at December 31, 2002      49,890         306          8         10    
                                      ======         ===         ==         ==    

Outstanding at December 31, 2000      66,973         367         16         --    
Activity during 2001:                                                             
  Issued........................       6,835         306          8         --    
  Redeemed......................      14,127         172          3         --    
                                      ------         ---         --         --    
Outstanding at December 31, 2001      59,681         500         21         --    
                                      ======         ===         ==         ==    

F-44  

485BPOS
208th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 208th
NOTES TO FINANCIAL STATEMENTS -- (Continued)  

5.  CHANGES IN OUTSTANDING UNITS -- (Continued)                                 

                                                        [Enlarge/Download Table]

                                           Metropolitan Fund                                           
-------------------------------------------------------------------------------------------------------
             State Street                                                                              
State Street   Research    MetLife     Putnam               T. Rowe Price                              
  Research    Aggressive    Stock   International   Janus     Small Cap      Scudder    Harris Oakmark 
Diversified     Growth      Index       Stock      Mid Cap     Growth     Global Equity Large Cap Value
 Portfolio    Portfolio   Portfolio   Portfolio   Portfolio   Portfolio     Portfolio      Portfolio   
------------ ------------ --------- ------------- --------- ------------- ------------- ---------------
                                                                                                       
   70,653       32,803     86,714      14,761      55,394      19,896        12,720         16,996     
    5,373        3,975     26,012      36,939      16,874      34,420         2,831         14,637     
   17,811        7,889     31,760      37,569      25,343      35,836         3,674          9,534     
   ------       ------     ------      ------      ------      ------        ------         ------     
   58,215       28,889     80,996      14,131      46,925      18,480        11,877         22,099     
   ======       ======     ======      ======      ======      ======        ======         ======     

   78,707       35,680     90,483      15,094      61,499      20,924        12,438          5,122     
    7,708        5,786     25,207      83,744      24,018      25,897         3,259         19,069     
   15,763        8,663     28,975      84,078      30,123      26,924         2,978          7,195     
   ------       ------     ------      ------      ------      ------        ------         ------     
   70,653       32,803     86,714      14,761      55,394      19,896        12,720         16,996     
   ======       ======     ======      ======      ======      ======        ======         ======     

F-45  

485BPOS
209th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 209th
NOTES TO FINANCIAL STATEMENTS -- (Continued)  

5.  CHANGES IN OUTSTANDING UNITS -- (Continued)                                 

                                                        [Enlarge/Download Table]

                                                    Metropolitan Fund                    
                                 --------------------------------------------------------
                                    Neuberger    T. Rowe Price Lehman Brothers   Morgan  
                                 Berman Partners   Large Cap      Aggregate     Stanley  
                                  Mid Cap Value     Growth       Bond Index    EAFE Index
                                    Portfolio      Portfolio      Portfolio    Portfolio 
                                 --------------- ------------- --------------- ----------
                                                                                         
(In Thousands)                                                                           
Outstanding at December 31, 2001      9,483         12,688         18,171        11,475  
Activity during 2002:                                                                    
  Issued........................      6,520          3,774         14,798        10,759  
  Redeemed......................      5,872          4,695          9,380         7,556  
                                     ------         ------         ------        ------  
Outstanding at December 31, 2002     10,131         11,767         23,589        14,678  
                                     ======         ======         ======        ======  

Outstanding at December 31, 2000      7,840         12,984         11,437         8,353  
Activity during 2001:                                                                    
  Issued........................      7,769          5,100         13,646        12,943  
  Redeemed......................      6,126          5,396          6,913         9,821  
                                     ------         ------         ------        ------  
Outstanding at December 31, 2001      9,483         12,688         18,171        11,475  
                                     ======         ======         ======        ======  

F-46  

485BPOS
210th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 210th
NOTES TO FINANCIAL STATEMENTS -- (Continued)  

5.  CHANGES IN OUTSTANDING UNITS -- (Continued)                                 

                                                        [Enlarge/Download Table]

                                     Metropolitan Fund                                      Zenith Fund 
------------------------------------------------------------------------------------------- ------------
                        State Street MetLife Mid               Franklin      State Street   State Street
 Russell   Putnam Large   Research    Cap Stock    Janus      Templeton        Research       Research  
2000 Index  Cap Growth     Aurora       Index     Growth   Small Cap Growth Large Cap Value Bond Income 
Portfolio   Portfolio    Portfolio    Portfolio  Portfolio    Portfolio        Portfolio     Portfolio  
---------- ------------ ------------ ----------- --------- ---------------- --------------- ------------
                                                                                                        
  10,115      5,652        14,852       8,337      1,080          795              --          19,377   
   6,326      5,027        17,018       8,108      2,129        3,188             779          25,028   
   4,817      4,092        10,977       4,165      1,332        2,122             383          25,516   
  ------      -----        ------      ------      -----        -----             ---          ------   
  11,624      6,587        20,893      12,280      1,877        1,861             396          18,889   
  ======      =====        ======      ======      =====        =====             ===          ======   

   9,545      2,596         4,165       5,604         --           --              --          17,699   
   4,258      5,175        17,050       6,239      1,422          932              --           6,415   
   3,687      2,120         6,363       3,505        342          137              --           4,737   
  ------      -----        ------      ------      -----        -----             ---          ------   
  10,115      5,652        14,852       8,337      1,080          795              --          19,377   
  ======      =====        ======      ======      =====        =====             ===          ======   

F-47  

485BPOS
211th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 211th
NOTES TO FINANCIAL STATEMENTS -- (Continued)  

5.  CHANGES IN OUTSTANDING UNITS -- (Continued)                                 

                                                        [Enlarge/Download Table]

                                                      Zenith Fund                      
                                 ------------------------------------------------------
                                 State Street                                          
                                   Research                                            
                                    Money         Davis     Loomis Sayles MFS Investors
                                    Market    Venture Value   Small Cap       Trust    
                                  Portfolio     Portfolio     Portfolio     Portfolio  
                                 ------------ ------------- ------------- -------------
                                                                                       
(In Thousands)                                                                         
Outstanding at December 31, 2001     627          2,153          702            499    
Activity during 2002:                                                                  
  Issued........................     602          1,359          759          1,097    
  Redeemed......................     770            859          557            573    
                                     ---          -----          ---          -----    
Outstanding at December 31, 2002     459          2,653          904          1,023    
                                     ===          =====          ===          =====    

Outstanding at December 31, 2000     637            940          367             --    
Activity during 2001:                                                                  
  Issued........................     151          2,135          595            570    
  Redeemed......................     161            922          260             71    
                                     ---          -----          ---          -----    
Outstanding at December 31, 2001     627          2,153          702            499    
                                     ===          =====          ===          =====    

F-48  

485BPOS
212th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 212th
NOTES TO FINANCIAL STATEMENTS -- (Continued)  

5.  CHANGES IN OUTSTANDING UNITS -- (Continued)                                 

                                                        [Enlarge/Download Table]

                                        Zenith Fund                                         
--------------------------------------------------------------------------------------------

                Harris      Salomon Brothers    Salomon       FI          FI          MFS   
MFS Research    Oakmark        Strategic      Brothers US Structured    Mid Cap      Total  
  Managers   Focused Value Bond Opportunities Government    Equity   Opportunities  Return  
 Portfolio     Portfolio       Portfolio       Portfolio  Portfolio    Portfolio   Portfolio
------------ ------------- ------------------ ----------- ---------- ------------- ---------
                                                                                            
    166          2,908             496           1,236        --           --          --   
    498          5,912           2,162           6,786        67          528        .002   
    290          2,795             967           2,354        11          200          --   
    ---          -----           -----           -----        --          ---        ----   
    374          6,025           1,691           5,668        56          328        .002   
    ===          =====           =====           =====        ==          ===        ====   

     --             --              --              --        --           --          --   
    199          3,701             625           1,921        --           --          --   
     33            793             129             685        --           --          --   
    ---          -----           -----           -----        --          ---        ----   
    166          2,908             496           1,236        --           --          --   
    ===          =====           =====           =====        ==          ===        ====   

F-49  

485BPOS
213th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 213th
NOTES TO FINANCIAL STATEMENTS -- (Continued)  

5.  CHANGES IN OUTSTANDING UNITS -- (Continued)                                 

                                                        [Enlarge/Download Table]

                                                    Fidelity Fund                    
                                 ----------------------------------------------------
                                 Fidelity VIP                                        
                                    Money     Fidelity VIP  Fidelity VIP Fidelity VIP
                                    Market    Equity-Income    Growth      Overseas  
                                  Portfolio     Portfolio    Portfolio    Portfolio  
                                 ------------ ------------- ------------ ------------
                                                                                     
(In Thousands)                                                                       
Outstanding at December 31, 2001     1,028        3,720        4,794         1,398   
Activity during 2002:                                                                
  Issued........................    13,480        1,047        1,425         5,438   
  Redeemed......................    13,762        1,139        1,593         5,436   
                                    ------        -----        -----        ------   
Outstanding at December 31, 2002       746        3,628        4,626         1,400   
                                    ======        =====        =====        ======   

Outstanding at December 31, 2000     1,091        3,437        4,642         1,430   
Activity during 2001:                                                                
  Issued........................    40,754          709          983        14,308   
  Redeemed......................    40,818          426          830        14,339   
                                    ------        -----        -----        ------   
Outstanding at December 31, 2001     1,028        3,720        4,794         1,398   
                                    ======        =====        =====        ======   

F-50  

485BPOS
214th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 214th
NOTES TO FINANCIAL STATEMENTS -- (Continued)  

5.  CHANGES IN OUTSTANDING UNITS -- (Continued)                                 

                                                        [Enlarge/Download Table]

      Fidelity Fund             Calvert Fund                      Met Investors Fund               
------------------------- ------------------------ ------------------------------------------------
Fidelity VIP Fidelity VIP  Calvert     Calvert     Lord Abbet                                      
 Investment     Asset      Social   Social Mid Cap    Bond    MFS Research   MFS Mid      PIMCO    
 Grade Bond    Manager    Balanced      Growth     Debenture  International Cap Growth Total Return
 Portfolio    Portfolio   Portfolio   Portfolio    Portfolio    Portfolio   Portfolio   Portfolio  
------------ ------------ --------- -------------- ---------- ------------- ---------- ------------
                                                                                                   
     822        2,208       2,129        457         5,561          415       1,558        2,824   
     760          629         505        260         7,730        1,771       3,078       13,449   
     542          712         520        249         7,921        1,081       1,697        4,173   
   -----        -----       -----        ---         -----        -----       -----       ------   
   1,040        2,125       2,114        468         5,370        1,105       2,939       12,100   
   =====        =====       =====        ===         =====        =====       =====       ======   

     603        2,240       2,063        393         5,542           --          --           --   
     349          275         346        156         2,709        1,020       1,919        3,617   
     129          307         280         91         2,690          605         361          793   
   -----        -----       -----        ---         -----        -----       -----       ------   
     822        2,208       2,129        457         5,561          415       1,558        2,824   
   =====        =====       =====        ===         =====        =====       =====       ======   

F-51  

485BPOS
215th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 215th
NOTES TO FINANCIAL STATEMENTS -- (Continued)  

5.  CHANGES IN OUTSTANDING UNITS -- (Continued)                                 

                                                        [Enlarge/Download Table]

                                                   Met Investors Fund                   
                                 -------------------------------------------------------
                                              Met/AIM     Met/AIM      State Street     
                                   PIMCO    Mid Cap Core Small Cap Research Concentrated
                                 Innovation    Equity     Growth       International    
                                 Portfolio   Portfolio   Portfolio       Portfolio      
                                 ---------- ------------ --------- ---------------------
                                                                                        
(In Thousands)                                                                          
Outstanding at December 31, 2001    2,056        --          --              --         
Activity during 2002:                                                                   
  Issued........................   10,731       577         593             156         
  Redeemed......................    9,525       123         385              66         
                                   ------       ---         ---             ---         
Outstanding at December 31, 2002    3,262       454         208              90         
                                   ======       ===         ===             ===         

Outstanding at December 31, 2000       --        --          --              --         
Activity during 2001:                                                                   
  Issued........................    5,264        --          --              --         
  Redeemed......................    3,208        --          --              --         
                                   ------       ---         ---             ---         
Outstanding at December 31, 2001    2,056        --          --              --         
                                   ======       ===         ===             ===         

F-52  

485BPOS
216th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 216th
NOTES TO FINANCIAL STATEMENTS -- (Continued)  

5.  CHANGES IN OUTSTANDING UNITS -- (Continued)                                 

                                                                [Download Table]

Met Investors                                               
    Fund                      American Fund                 
------------- ----------------------------------------------
 Oppenheimer                                                
   Capital    American Funds American Funds  American Funds 
Appreciation      Growth     Growth-Income  Global Small Cap
  Portfolio     Portfolio      Portfolio       Portfolio    
-------------   ---------    -------------- ----------------
                                                            
       --           394            412             559      
    1.407         1,131          1,468           2,217      
    0.908           331            402           1,043      
    -----         -----          -----           -----      
     .499         1,194          1,478           1,733      
    =====         =====          =====           =====      

       --            --             --              --      
       --           510            474             695      
       --           116             62             136      
    -----         -----          -----           -----      
       --           394            412             559      
    =====         =====          =====           =====      

F-53  

485BPOS
217th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 217th
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]

                                                                   Metropolitan Fund                
                                                   -------------------------------------------------

                                                     State Street                                   
                                                       Research                                     
                                                   Investment Trust Variable B Variable C Variable D
                                                      Portfolio     Portfolio  Portfolio  Portfolio 
                                                   ---------------- ---------- ---------- ----------
                                                                                                    
2002                                                                                                
Units (In Thousands)..............................           49,890      306          8         10  
Unit Value (1)....................................  $8.39 to $49.99  $104.24    $104.24    $122.89  
Net Assets (In Thousands).........................       $1,196,194  $36,937     $1,171        $24  
Investment Income Ratio to Net Assets (2).........            0.57%    0.55%      0.54%      0.54%  
Expenses as a Percent of Average Net Assets (3)...   0.95% to 2.20%     1.0%         0%         0%  
Total Return (4)..................................      -28% to -3%     -27%       -27%       -26%  
2001                                                                                                
Units (In Thousands)..............................           59,681      500         21         --  
Unit Value (1).................................... $30.49 to $68.31  $142.17    $142.17    $165.93  
Net Assets (In Thousands).........................       $1,946,685  $58,101     $2,268        $32  
Investment Income Ratio to Net Assets (2).........           13.58%   13.69%     13.28%     13.57%  
Expenses as a Percent of Average Net Assets (3)...   0.95% to 1.80%     1.0%         0%         0%  
Total Return (4)..................................             -18%     -18%       -18%       -17%  

--------                                                                        
(1) Metropolitan Life 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 results
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 primarily of mortality and expense charges, for each
 period indicated. The ratios include only those expenses that result in a
direct reduction to unit values. Charges made directly to contract owner
accounts through the redemption of units and expenses of the underlying 
fund 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.             

F-54  

485BPOS
218th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 218th
NOTES TO FINANCIAL STATEMENTS -- (Continued)  

6.  UNIT VALUES -- (Continued)                                                  

                                                        [Enlarge/Download Table]

                                                           Metropolitan Fund                                          
----------------------------------------------------------------------------------------------------------------------
                   State Street                                                                                       
  State Street       Research                          Putnam                         T. Rowe Price                   
    Research        Aggressive        MetLife       International        Janus          Small Cap         Scudder     
  Diversified         Growth        Stock Index         Stock           Mid Cap          Growth        Global Equity  
   Portfolio        Portfolio        Portfolio        Portfolio        Portfolio        Portfolio        Portfolio    
---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ----------------
                                                                                                                      
          58,215           28,889           80,996           14,131           46,925           18,480           11,877
 $9.19 to $33.95  $8.11 to $27.57  $8.52 to $29.70  $8.48 to $10.85  $8.46 to $11.36   $8.26 to $9.03  $8.67 to $10.44
      $1,375,722         $539,038       $2,148,998         $148,302         $524,361         $163,890         $121,961
           2.43%            0.00%            1.73%            0.90%            0.00%            0.00%            1.76%
  0.95% to 2.20%   0.95% to 2.20%   0.95% to 2.20%   0.95% to 2.20%   0.95% to 2.20%   0.95% to 2.20%   0.95% to 2.20%
     -16% to -8%     -30% to -19%       -24% to 0%     -19% to -14%     -31% to -15%       -28% to 2%     -18% to -13%
          70,653           32,803           86,714           14,761           55,394           19,896           12,720
$26.81 to $39.79 $25.42 to $39.05 $32.93 to $38.60 $10.69 to $13.28 $15.19 to $16.14 $12.25 to $12.43 $11.97 to $12.55
      $1,956,614         $867,274       $2,999,640         $190,565         $882,658         $243,648         $157,528
           9.92%           25.00%            1.20%            3.64%            0.00%            8.08%           11.56%
  0.95% to 1.80%   0.95% to 1.50%   0.95% to 1.80%   0.95% to 2.05%   0.95% to 2.05%   0.95% to 1.25%   0.95% to 1.80%
             -7%      -24% to 25%             -13%       -21% to 0%       -38% to 2%             -10%       -17% to 1%

Harris Oakmark                                                                  
Large Cap Value                                                                 
Portfolio                                                                 
----------------                                                                
22,099                                                      
$8.64 to $9.95                                                              
$217,357                                                        
3.47%                                                     
0.95% to 2.20%                                                              
-16% to -2%                                                           
16,996                                                      
$11.26 to $11.70                                                                
$197,391                                                        
0.23%                                                     
0.95% to 2.05%                                                              
3% to 17%                                                         

F-55  

485BPOS
219th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 219th
NOTES TO FINANCIAL STATEMENTS -- (Continued)  

6.  UNIT VALUES -- (Continued)                                                  

                                                        [Enlarge/Download Table]

                                                                         Metropolitan Fund                         
                                                -------------------------------------------------------------------
                                                   Neuberger                                                       
                                                    Berman        T. Rowe Price   Lehman Brothers       Morgan     
                                                   Partners         Large Cap        Aggregate         Stanley     
                                                 Mid Cap Value       Growth         Bond Index        EAFE Index   
                                                   Portfolio        Portfolio        Portfolio        Portfolio    
                                                ---------------- ---------------- ---------------- ----------------
                                                                                                                   
2002                                                                                                               
Units (In Thousands)...........................           10,131           11,767           23,589           14,678
Unit Value (1)................................. $ 8.73 to $13.73 $  8.64 to $8.92 $10.59 to $12.69 $  6.85 to $8.63
Net Assets (In Thousands)......................         $137,491         $103,790         $295,467         $104,948
Investment Income Ratio to Net Assets (2)......            0.32%            0.28%            2.88%            0.50%
Expenses as a Percent of Average Net Assets (3)   0.95% to 2.20%   0.95% to 2.20%   0.95% to 2.20%   0.95% to 2.20%
Total Return (4)...............................      -13% to -2%       -25% to 2%         4% to 9%      -18% to -3%
2001                                                                                                               
Units (In Thousands)...........................            9,483           12,688           18,171           11,475
Unit Value (1)................................. $14.76 to $15.34 $11.29 to $11.73 $11.26 to $11.62   $8.44 to $8.77
Net Assets (In Thousands)......................         $144,279         $147,642         $209,359          $99,731
Investment Income Ratio to Net Assets (2)......            2.22%            0.08%            1.57%            0.34%
Expenses as a Percent of Average Net Assets (3)   0.95% to 2.05%   0.95% to 2.05%   0.95% to 1.80%   0.95% to 2.05%
Total Return (4)...............................        -3% to 3%       -11% to 1%         1% to 6%       -23% to 1%

--------                                                                        
(1) Metropolitan Life 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 results
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 primarily of mortality and expense charges, for each
 period indicated. The ratios include only those expenses that result in a
direct reduction to unit values. Charges made directly to contract owner
accounts through the redemption of units and expenses of the underlying 
fund 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.             

F-56  

485BPOS
220th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 220th
NOTES TO FINANCIAL STATEMENTS -- (Continued)  

6.  UNIT VALUES -- (Continued)                                                  

                                                        [Enlarge/Download Table]

                                                      Metropolitan Fund                                                      
-----------------------------------------------------------------------------------------------------------------------------

                                      State Street         MetLife                            Franklin        State Street   
    Russell         Putnam Large        Research           Mid Cap            Janus          Templeton          Research     
   2000 Index        Cap Growth          Aurora          Stock Index         Growth       Small Cap Growth   Large Cap Value 
   Portfolio         Portfolio         Portfolio          Portfolio         Portfolio        Portfolio          Portfolio    
----------------- ----------------- ----------------- ----------------- ----------------- ----------------- -----------------
                                                                                                                             
           11,624             6,587            20,893            12,280             1,877             1,861               396
 $  8.16 to $9.61  $  3.38 to $8.46  $ 7.78 to $10.98  $  8.43 to $8.78  $  5.22 to $5.34  $  6.18 to $6.31  $  7.88 to $7.95
$         110,232 $          22,871 $         227,655 $         107,025 $           9,978 $          11,664 $           3,131
            0.65%             0.00%             0.60%             0.38%             0.00%             0.00%             0.86%
   0.95% to 2.20%    0.95% to 2.20%    0.95% to 2.20%    0.95% to 2.20%    0.95% to 2.20%    0.95% to 2.20%    0.95% to 2.20%
      -21% to -1%      -31% to -15%       -23% to -5%       -17% to -1%      -32% to -31%        -29% to 1%       -21% to -3%
           10,115             5,652            14,852             8,337             1,080               795                --
 $11.82 to $12.19  $  4.95 to $4.97  $13.84 to $14.09  $10.36 to $10.41  $  7.71 to $7.77  $  8.80 to $8.82               $--
$         122,162 $          27,966 $         208,402           $86,537 $           8,379            $6,999               $--
            0.27%             0.00%             0.49%             0.50%             0.00%             0.00%                --
   0.95% to 1.80%    0.95% to 1.25%    0.95% to 2.05%    0.95% to 1.25%    0.95% to 2.05%    0.95% to 1.35%                --
         0% to 3%      -31% to -32%         3% to 15%               -2%        -22% to 2%        -12% to 0%                --

F-57  

485BPOS
221st Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 221st
NOTES TO FINANCIAL STATEMENTS -- (Continued)  

6.  UNIT VALUES -- (Continued)                                                  

                                                        [Enlarge/Download Table]

                                                                                   Zenith Fund                     
                                                -------------------------------------------------------------------
                                                  State Street     State Street                                    
                                                    Research         Research          Davis        Loomis Sayles  
                                                  Bond Income      Money Market    Venture Value      Small Cap    
                                                   Portfolio        Portfolio        Portfolio        Portfolio    
                                                ---------------- ---------------- ---------------- ----------------
                                                                                                                   
2002                                                                                                               
Units (In Thousands)...........................           18,889              459            2,653              904
Unit Value (1)................................. $10.46 to $46.31 $19.98 to $21.75  $8.83 to $22.86  $8.12 to $18.27
Net Assets (In Thousands)......................         $474,778           $9,163          $59,152          $15,933
Investment Income Ratio to Net Assets (2)......            5.78%            1.35%            0.88%            0.11%
Expenses as a Percent of Average Net Assets (3)   0.95% to 2.20%   1.25% to 1.50%   0.95% to 2.20%   0.95% to 2.20%
Total Return (4)...............................         4% to 7%               0%       -18% to 0%      -23% to -3%
2001                                                                                                               
Units (In Thousands)...........................           19,377              627            2,153              702
Unit Value (1)................................. $21.93 to $42.57 $20.00 to $21.65 $25.24 to $27.60 $21.38 to $23.52
Net Assets (In Thousands)......................         $446,653          $12,549          $58,354          $16,060
Investment Income Ratio to Net Assets (2)......            7.88%            3.81%            9.18%            7.45%
Expenses as a Percent of Average Net Assets (3)   0.95% to 1.50%   1.25% to 1.50%   0.95% to 2.05%   0.95% to 2.05%
Total Return (4)...............................         1% to 7%         2% to 3%      -.12% to 2%        -9% to 2%
                                                                [Download Table]


                                                     MFS      
                                                  Investors   
                                                    Trust     
                                                  Portfolio   
                                                --------------
                                                              
2002                                                          
Units (In Thousands)...........................          1,023
Unit Value (1)................................. $6.33 to $6.65
Net Assets (In Thousands)......................         $6,719
Investment Income Ratio to Net Assets (2)......          0.41%
Expenses as a Percent of Average Net Assets (3) 0.95% to 2.20%
Total Return (4)...............................   -22% to -21%
2001                                                          
Units (In Thousands)...........................            499
Unit Value (1)................................. $8.15 to $8.42
Net Assets (In Thousands)......................         $4,167
Investment Income Ratio to Net Assets (2)......          0.00%
Expenses as a Percent of Average Net Assets (3) 0.95% to 2.05%
Total Return (4)...............................     -11% to 1%

--------                                                                        
(1) Metropolitan Life 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 results
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 primarily of mortality and expense charges, for each
 period indicated. The ratios include only those expenses that result in a
direct reduction to unit values. Charges made directly to contract owner
accounts through the redemption of units and expenses of the underlying 
fund 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.             

F-58  

485BPOS
222nd Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 222nd
NOTES TO FINANCIAL STATEMENTS -- (Continued)  

6.  UNIT VALUES -- (Continued)                                                  

                                                        [Enlarge/Download Table]

                                                   Zenith Fund                                                    
------------------------------------------------------------------------------------------------------------------
                   Harris       Salomon Brothers     Salomon                                                      
 MFS Research      Oakmark       Strategic Bond    Brothers US     FI Structured    FI Mid Cap       MFS Total    
   Managers     Focused Value    Opportunities     Government         Equity       Opportunities      Return      
  Portfolio       Portfolio        Portfolio        Portfolio        Portfolio       Portfolio       Portfolio    
-------------- ---------------- ---------------- ---------------- ---------------- -------------- ----------------
                                                                                                                  
           374            6,025            1,691            5,668               56            328             .002
$6.11 to $6.69 $21.83 to $24.83 $16.05 to $17.99 $14.69 to $16.46 $17.32 to $19.59 $8.07 to $8.14 $32.23 to $33.00
        $2,452         $145,221          $29,512          $90,530           $1,072         $2,673               $0
         0.16%            0.23%            6.20%            3.37%            0.17%          0.00%            0.00%
0.95% to 2.20%   0.95% to 2.20%   0.95% to 2.20%   0.95% to 2.20%   0.95% to 2.20% 0.95% to 2.20%   1.15% to 1.30%
  -26% to -25%       -11% to 3%         7% to 9%         2% to 7%       -21% to 0%     -19% to 4%               2%
           166            2,908              496            1,236               --             --               --
$8.83 to $8.90 $24.84 to $27.50 $15.16 to $16.56 $15.07 to $15.40              $--            $--              $--
        $1,464          $78,020           $8,046          $18,523              $--            $--              $--
         0.00%            0.00%            0.00%            0.00%               --             --               --
0.95% to 1.25%   0.95% to 2.05%   0.95% to 2.05%   0.95% to 1.25%               --             --               --
    -11% to 1%        3% to 12%         1% to 3%         2% to 6%               --             --               --

F-59  

485BPOS
223rd Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 223rd
NOTES TO FINANCIAL STATEMENTS -- (Continued)  

6.  UNIT VALUES -- (Continued)                                                  

                                                        [Enlarge/Download Table]

                                                                   Fidelity Fund                    
                                                ----------------------------------------------------
                                                Fidelity VIP                                        
                                                   Money     Fidelity VIP  Fidelity VIP Fidelity VIP
                                                   Market    Equity-Income    Growth      Overseas  
                                                 Portfolio     Portfolio    Portfolio    Portfolio  
                                                ------------ ------------- ------------ ------------
                                                                                                    
2002                                                                                                
Units (In Thousands)...........................       746         3,628         4,626       1,400   
Unit Value (1).................................   $ 15.17      $  29.50      $  27.45     $ 13.85   
Net Assets (In Thousands)......................   $11,063      $107,048      $126,972     $19,412   
Investment Income Ratio to Net Assets (2)......     1.54%         4.14%         0.25%       0.81%   
Expenses as a Percent of Average Net Assets (3)     0.95%         0.95%         0.95%       0.95%   
Total Return (4)...............................        1%          -18%          -31%        -21%   
2001                                                                                                
Units (In Thousands)...........................     1,028         3,720         4,794       1,398   
Unit Value (1).................................     15.06         35.86         39.65       17.54   
Net Assets (In Thousands)......................   $15,237      $133,430      $190,040     $24,642   
Investment Income Ratio to Net Assets (2)......     3.27%         6.22%         7.04%      15.44%   
Expenses as a Percent of Average Net Assets (3)     0.95%         0.95%         0.95%       0.95%   
Total Return (4)...............................        3%           -6%          -18%        -22%   

--------                                                                        
(1) Metropolitan Life 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 results
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 primarily of mortality and expense charges, for each
 period indicated. The ratios include only those expenses that result in a
direct reduction to unit values. Charges made directly to contract owner
accounts through the redemption of units and expenses of the underlying 
fund 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.             

F-60  

485BPOS
224th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 224th
NOTES TO FINANCIAL STATEMENTS -- (Continued)  

6.  UNIT VALUES -- (Continued)                                                  

                                                        [Enlarge/Download Table]

      Fidelity Fund                Calvert Fund                                  Met Investors Fund                        
------------------------- ------------------------------- -----------------------------------------------------------------
Fidelity VIP Fidelity VIP     Calvert         Calvert        Lord Abbet                                                    
 Investment     Asset         Social       Social Mid Cap       Bond        MFS Research      MFS Mid           PIMCO      
 Grade Bond    Manager       Balanced          Growth        Debenture      International    Cap Growth      Total Return  
 Portfolio    Portfolio      Portfolio       Portfolio       Portfolio        Portfolio      Portfolio        Portfolio    
------------ ------------ ---------------- -------------- ---------------- --------------- --------------- ----------------
                                                                                                                           
    1,040        2,125               2,114        468                5,370           1,105           2,939           12,100
  $ 21.36      $ 21.47    $20.02 to $21.51    $ 19.16     $ 9.96 to $13.79 $ 7.63 to $7.67 $ 4.66 to $4.68 $11.11 to $11.47
  $22,210      $45,665    $         44,584    $ 8,958     $         57,316 $         8,338 $        13,645 $        137,803
    3.29%        3.90%               2.69%      0.00%               11.49%           0.23%           0.60%            0.00%
    0.95%        0.95%      0.95% to 1.25%      0.95%       0.95% to 2.20%  0.95% to 2.20%  0.95% to 2.20%   0.95% to 2.20%
       9%         -10%          -13% to 0%       -29%            -3% to 4%     -14% to -1%            -45%         4% to 9%
      822        2,208               2,129        457                5,561             415           1,558            2,824
    19.54        23.75    $23.01 to $24.80    $ 26.95     $10.65 to $10.80 $ 8.38 to $8.75 $ 8.23 to $8.44 $10.38 to $10.57
  $16,070      $52,473    $         51,803    $12,327     $         59,096 $         3,612 $        13,133 $         29,787
    4.60%        5.66%               5.60%      6.52%               13.56%           0.21%           0.00%            2.49%
    0.95%        0.95%      0.95% to 1.25%      0.95%       0.95% to 1.25%  0.95% to 1.35%  0.95% to 1.80%   0.95% to 2.05%
       7%          -5%                 -8%       -13%           -2% to -3%      -13% to 2%      -16% to 2%         0% to 6%

F-61  

485BPOS
225th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 225th
NOTES TO FINANCIAL STATEMENTS -- (Continued)  

6.  UNIT VALUES -- (Continued)                                                  

                                                        [Enlarge/Download Table]

                                                                       Met Investors Fund                     
                                                   -----------------------------------------------------------
                                                                                                State Street  
                                                                     Met/AIM        Met/AIM       Research    
                                                       PIMCO       Mid Cap Core    Small Cap    Concentrated  
                                                     Innovation       Equity        Growth      International 
                                                     Portfolio      Portfolio      Portfolio      Portfolio   
                                                   -------------- -------------- -------------- --------------
                                                                                                              
2002                                                                                                          
Units (In Thousands)..............................          3,262            454            208             90
Unit Value (1).................................... $2.93 to $3.65 $9.58 to $9.74 $8.41 to $8.54 $8.86 to $8.89
Net Assets (In Thousands).........................        $11,593         $4,413         $1,770           $794
Investment Income Ratio to Net Assets (2).........          0.00%          0.21%          0.00%          0.25%
Expenses as a Percent of Average Net Assets (3)... 0.95% to 2.20% 0.95% to 2.20% 0.95% to 2.20% 0.95% to 2.20%
Total Return (4)..................................    -52% to -5%     -15% to 0%     -29% to 0%           -16%
2001                                                                                                          
Units (In Thousands)..............................          2,056             --             --             --
Unit Value (1).................................... $7.44 to $7.46            $--            $--            $--
Net Assets (In Thousands).........................        $15,297            $--            $--            $--
Investment Income Ratio to Net Assets (2).........          0.00%             --             --             --
Expenses as a Percent of Average Net Assets (3)... 0.95% to 1.25%             --             --             --
Total Return (4)..................................   -26% to -25%             --             --             --

--------                                                                        
(1) Metropolitan Life 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 results
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 primarily of mortality and expense charges, for each
 period indicated. The ratios include only those expenses that result in a
direct reduction to unit values. Charges made directly to contract owner
accounts through the redemption of units and expenses of the underlying 
fund 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.             

F-62  

485BPOS
226th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 226th
NOTES TO FINANCIAL STATEMENTS -- (Continued)  

6.  UNIT VALUES -- (Continued)                                                  

                                                                [Download Table]

Met Investors Fund                    American Fund                   
------------------ ---------------------------------------------------

   Oppenheimer                                            American    
     Capital           American       American Funds    Funds Global  
   Appreciation      Funds Growth     Growth-Income      Small Cap    
    Portfolio         Portfolio         Portfolio        Portfolio    
------------------ ----------------- ---------------- ----------------
                                                                      
            .499               1,194            1,478            1,733
  $6.30 to $6.31    $71.44 to $93.21 $57.44 to $74.94 $10.35 to $11.05
              $3            $104,487         $103,901          $18,828
           0.00%               0.05%            1.50%            0.91%
  1.15% to 1.25%      0.95% to 2.20%   0.95% to 2.20%   0.95% to 2.20%
        1% to 2%          -26% to 3%      -20% to -1%      -21% to -4%
              --                 394              412              559
             $--   $99.46 to $124.56 $83.86 to $92.64 $13.16 to $13.78
             $--             $46,547          $36,218           $7,623
              --               4.53%            1.47%            0.81%
              --      0.95% to 2.05%   0.95% to 1.35%   0.95% to 2.05%
              --          -15% to 0%        -3% to 0%        -9% to 2%

F-63  

485BPOS
227th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 227th
NOTES TO FINANCIAL STATEMENTS -- (Concluded)  

7.  CHANGE OF FUND NAME                                                         

Effective May 1, 2001, State Street Research Growth changed its name to   
State Street Research Investment Trust. Effective April 29, 2002, State Street  
Research Income Portfolio and State Street Research Money Market Portfolio of   
the Metropolitan Fund were merged, respectively, into the State Street Research 
Bond Income Portfolio and the State Street Research Money Market Portfolio of   
the Zenith Fund. Effective April 29, 2002, Loomis Sayles High Yield Bond        
Portfolio of the Metropolitan Fund was merged into the Lord Abbett Bond         
Debenture of the Met Investors Fund. Effective May 1, 2002, State Street        
Research Aurora Small Cap Value Portfolio and the Harris Oakmark Mid Cap Value  
changed their names to State Street Research Aurora Portfolio and Harris        
Oakmark Focused Value Portfolio, respectively.                                  

8.  NEW CONTRACTS                                                               

On July 12, 2002, the Separate Account funded a new contract, MetLife     
Financial Freedom Select. On August 3, 2001, the Separate Account funded a new  
contract, Preference Plus Select. On December 6, 2001, the Separate Account     
funded a new contract, Metlife Asset Builder.                                   

F-64  

485BPOS
228th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 228th
Independent Auditors' Report  

To the Board of Directors and Shareholder of                                    
Metropolitan Life Insurance Company:                                            

  We have audited the accompanying consolidated balance sheets of Metropolitan
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 Metropolitan 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.  

DELOITTE & TOUCHE LLP                                                           

New York, New York                                                              
February 19, 2003                                                               

F-65  

485BPOS
229th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 229th
METROPOLITAN LIFE INSURANCE COMPANY AND SUBSIDIARIES  

CONSOLIDATED BALANCE SHEETS 

December 31, 2002 and 2001  
(Dollars in millions, except share and per share data)  

                                                                [Download Table]

                                                               2002     2001  
                                                             -------- --------
                                                                              
Assets                                                                        
Investments:                                                                  
   Fixed maturities available-for-sale, at fair value                         
     (amortized cost: $ 117,781 and $107,630, respectively). $124,525 $110,601
   Equity securities, at fair value (cost: $1,242 and                         
     $2,421, respectively)..................................    1,286    3,027
   Mortgage loans on real estate............................   25,353   24,626
   Policy loans.............................................    8,047    7,894
   Real estate and real estate joint ventures                                 
     held-for-investment....................................    3,620    3,278
   Real estate held-for-sale................................      229    1,647
   Other limited partnership interests......................    2,380    1,637
   Short-term investments...................................    1,199    1,168
   Other invested assets....................................    3,419    3,013
                                                             -------- --------
       Total investments....................................  170,058  156,891
Cash and cash equivalents...................................    1,106    3,932
Accrued investment income...................................    1,889    1,981
Premiums and other receivables..............................    7,945    7,126
Deferred policy acquisition costs...........................    9,666   10,471
Other assets................................................    4,819    4,750
Separate account assets.....................................   53,912   62,714
                                                             -------- --------
       Total assets......................................... $249,395 $247,865
                                                             ======== ========
Liabilities and Stockholder's Equity                                          
Liabilities:                                                                  
   Future policy benefits................................... $ 86,039 $ 83,493
   Policyholder account balances............................   54,464   54,764
   Other policyholder funds.................................    6,206    6,001
   Policyholder dividends payable...........................    1,025    1,042
   Policyholder dividend obligation.........................    1,882      708
   Short-term debt..........................................      912      345
   Long-term debt...........................................    2,624    2,380
   Current income taxes payable.............................      873      162
   Deferred income taxes payable............................    1,947    1,893
   Payables under securities loaned transactions............   16,321   12,662
   Other liabilities........................................    6,848    6,981
   Separate account liabilities.............................   53,912   62,714
                                                             -------- --------
       Total liabilities....................................  233,053  233,145
                                                             -------- --------
Commitments and contingencies (Note 11)                                       

Company-obligated mandatorily redeemable securities of                        
  subsidiary trusts.........................................      277      276
                                                             -------- --------
Stockholder's Equity:                                                         
   Common stock, par value $0.01 per share; 1,000,000,000                     
     shares authorized; 494,466,664 shares issued and                         
     outstanding at December 31, 2002 and December 31, 2001.        5        5
   Additional paid-in capital...............................   13,474   12,825
   Retained earnings........................................      708       --
   Accumulated other comprehensive income...................    1,878    1,614
                                                             -------- --------
       Total stockholder's equity...........................   16,065   14,444
                                                             -------- --------
       Total liabilities and stockholder's equity........... $249,395 $247,865
                                                             ======== ========

See Accompanying Notes to Consolidated Financial Statements.  

F-66  

485BPOS
230th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 230th
METROPOLITAN LIFE INSURANCE COMPANY AND SUBSIDIARIES  

CONSOLIDATED STATEMENTS OF INCOME 

For the Years Ended December 31, 2002, 2001 and 2000  
(Dollars in millions) 

                                                                [Download Table]

                                                       2002    2001     2000  
                                                     -------  ------- ------- 
                                                                              
Revenues                                                                      
Premiums............................................ $18,470  $17,023 $16,263 
Universal life and investment-type product policy                             
  fees..............................................   1,918    1,874   1,820 
Net investment income...............................  10,700   11,122  11,029 
Other revenues......................................   1,400    1,532   2,259 
Net investment (losses) gains (net of amounts                                 
  allocable to other accounts of $(139), $(33) and                            
  $(54), respectively)..............................    (730)     927    (418)
                                                     -------  ------- ------- 
   Total revenues...................................  31,758   32,478  30,953 
                                                     -------  ------- ------- 
Expenses                                                                      
Policyholder benefits and claims (excludes amounts                            
  directly related to net investment losses and                               
  gains of $(150), $(54) and $41, respectively).....  18,860   18,265  16,935 
Interest credited to policyholder account balances..   2,711    3,035   2,935 
Policyholder dividends..............................   1,911    2,060   1,913 
Payments to former Canadian policyholders...........      --       --     327 
Demutualization costs...............................      --       --     230 
Other expenses (excludes amounts directly related                             
  to net investment losses and gains of $11, $21                              
  and $(95), respectively)..........................   6,589    6,920   7,308 
                                                     -------  ------- ------- 
   Total expenses...................................  30,071   30,280  29,648 
                                                     -------  ------- ------- 
Income from continuing operations before provision                            
  for income taxes..................................   1,687    2,198   1,305 
Provision for income taxes..........................     525      797     435 
                                                     -------  ------- ------- 
Income from continuing operations...................   1,162    1,401     870 
Income from discontinued operations, net of income                            
  taxes.............................................     450       86      79 
                                                     -------  ------- ------- 
Net income.......................................... $ 1,612  $ 1,487 $   949 
                                                     =======  ======= ======= 
Net income after April 7, 2000 (date of                                       
  demutualization) (Note 1).........................                  $ 1,169 
                                                                      ======= 

See Accompanying Notes to Consolidated Financial Statements.  

F-67  

485BPOS
231st Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 231st
METROPOLITAN LIFE INSURANCE COMPANY AND SUBSIDIARIES  

CONSOLIDATED STATEMENTS OF STOCKHOLDER'S EQUITY 

For the Years Ended December 31, 2002, 2001 and 2000  
(Dollars in millions) 

                                                        [Enlarge/Download Table]

                                                                                 Accumulated Other Comprehensive            
                                                                                          Income (Loss)                     
                                                                              ------------------------------------          
                                                                                   Net         Foreign    Minimum           
                                                         Additional             Unrealized    Currency    Pension           
                                                  Common  Paid-in   Retained    Investment   Translation Liability          
                                                  Stock   Capital   Earnings  (Losses) Gains Adjustment  Adjustment  Total  
                                                  ------ ---------- --------  -------------- ----------- ---------- ------- 
                                                                                                                            
Balance at December 31, 1999.....................  $--    $    --   $ 14,100      $ (297)       $ (94)      $(19)   $13,690 
Policy credits and cash payments to eligible                                                                                
 policyholders...................................                     (2,958)                                        (2,958)
Common stock issued in demutualization...........    5     10,917    (10,922)                                            -- 
Capital contribution from the Holding                                                                                       
 Company.........................................           3,632                                                     3,632 
Dividends on common stock........................                       (762)                                          (762)
Comprehensive income:                                                                                                       
  Net loss before date of demutualization........                       (220)                                          (220)
  Net income after date of demutualization.......                      1,169                                          1,169 
  Other comprehensive income:                                                                                               
   Unrealized investment gains, net of related                                                                              
    offsets, reclassification adjustments and                                                                               
    income taxes.................................                                  1,480                              1,480 
   Foreign currency translation adjustments......                                                  (6)                   (6)
   Minimum pension liability adjustment..........                                                             (9)        (9)
                                                                                                                    ------- 
   Other comprehensive income....................                                                                     1,465 
                                                                                                                    ------- 
  Comprehensive income...........................                                                                     2,414 
                                                   ---    -------   --------      ------        -----       ----    ------- 
Balance at December 31, 2000.....................    5     14,549        407       1,183         (100)       (28)    16,016 
Sale of subsidiary to the Holding Company........              96                                                        96 
Issuance of warrants--by subsidiary..............              40                                                        40 
Dividends on common stock........................          (1,860)    (1,894)                                        (3,754)
Comprehensive income:                                                                                                       
  Net income.....................................                      1,487                                          1,487 
  Other comprehensive income:                                                                                               
   Cumulative effect of change in accounting                                                                                
    for derivatives, net of income taxes and                                                                                
    reclassification adjustment..................                                     22                                 22 
   Unrealized gains on derivative instruments,                                                                              
    net of income taxes..........................                                     24                                 24 
   Unrealized investment gains, net of related                                                                              
    offsets, reclassification adjustments and                                                                               
    income taxes.................................                                    570                                570 
   Foreign currency translation adjustments......                                                 (39)                  (39)
   Minimum pension liability adjustment..........                                                            (18)       (18)
                                                                                                                    ------- 
   Other comprehensive income....................                                                                       559 
                                                                                                                    ------- 
  Comprehensive income...........................                                                                     2,046 
                                                   ---    -------   --------      ------        -----       ----    ------- 
Balance at December 31, 2001.....................    5     12,825         --       1,799         (139)       (46)    14,444 
Sale of subsidiaries to the Holding Company......             149                                                       149 
Capital contribution from the Holding                                                                                       
 Company.........................................             500                                                       500 
Dividends on common stock........................                       (904)                                          (904)
Comprehensive income:                                                                                                       
  Net income.....................................                      1,612                                          1,612 
  Other comprehensive income:                                                                                               
   Unrealized losses on derivative instruments,                                                                             
    net of income taxes..........................                                    (58)                               (58)
   Unrealized investment gains, net of related                                                                              
    offsets, reclassification adjustments and                                                                               
    income taxes.................................                                    250                                250 
   Foreign currency translation adjustments......                                                  72                    72 
                                                                                                                    ------- 
   Other comprehensive income....................                                                                       264 
                                                                                                                    ------- 
  Comprehensive income...........................                                                                     1,876 
                                                   ---    -------   --------      ------        -----       ----    ------- 
Balance at December 31, 2002.....................  $ 5    $13,474   $    708      $1,991        $ (67)      $(46)   $16,065 
                                                   ===    =======   ========      ======        =====       ====    ======= 

See Accompanying Notes to Consolidated Financial Statements 

F-68  

485BPOS
232nd Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 232nd
METROPOLITAN LIFE INSURANCE COMPANY AND SUBSIDIARIES  

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............................................................. $  1,612  $  1,487  $    949 
Adjustments to reconcile net income to net cash provided by operating                                
  activities:                                                                                        
   Depreciation and amortization expenses..............................      383       318       363 
   Amortization of premiums and accretion of discounts associated with                               
     investments, net..................................................     (456)     (358)     (451)
   Losses (gains) from sales of investments and businesses, net........      870      (894)      472 
   Interest credited to other policyholder account balances............    2,711     3,035     2,935 
   Universal life and investment-type product policy fees..............   (1,918)   (1,874)   (1,820)
   Change in premiums and other receivables............................   (2,200)     (612)      331 
   Change in deferred policy acquisition costs, net....................     (766)     (553)     (519)
   Change in insurance-related liabilities.............................    4,550     3,522     2,618 
   Change in income taxes payable......................................      684       871       246 
   Change in other liabilities.........................................       32      (226)     (997)
   Other, net..........................................................     (698)     (920)     (919)
                                                                        --------  --------  -------- 
Net cash provided by operating activities..............................    4,804     3,796     3,208 
                                                                        --------  --------  -------- 
Cash flows from investing activities                                                                 
Sales, maturities and repayments of:                                                                 
   Fixed maturities....................................................   61,473    51,438    56,971 
   Equity securities...................................................    2,676     2,073       748 
   Mortgage loans on real estate.......................................    2,632     1,936     2,185 
   Real estate and real estate joint ventures..........................      179     1,131       606 
   Other limited partnership interests.................................      340       396       422 
Purchases of:                                                                                        
   Fixed maturities....................................................  (79,527)  (51,417)  (64,918)
   Equity securities...................................................   (1,217)   (3,045)     (863)
   Mortgage loans on real estate.......................................   (3,188)   (3,412)   (2,787)
   Real estate and real estate joint ventures..........................      (28)     (665)     (407)
   Other limited partnership interests.................................     (447)     (424)     (660)
Net change in short-term investments...................................     (308)     (303)    2,382 
Purchase of businesses, net of cash received...........................       --        --      (416)
Proceeds from sales of businesses......................................      749       831       877 
Net change in payable under securities loaned transactions.............    3,659       361     5,840 
Other, net.............................................................     (814)     (534)     (821)
                                                                        --------  --------  -------- 
Net cash used in investing activities.................................. $(13,821) $ (1,634) $   (841)
                                                                        --------  --------  -------- 

See Accompanying Notes to Consolidated Financial Statements.  

F-69  

485BPOS
233rd Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 233rd
METROPOLITAN LIFE INSURANCE COMPANY AND SUBSIDIARIES  

CONSOLIDATED STATEMENTS OF CASH FLOWS--(Continued)  

For the Years Ended December 31, 2002, 2001 and 2000  
(Dollars in millions) 

                                                        [Enlarge/Download Table]

                                                                         2002      2001      2000   
                                                                       --------  --------  -------- 
                                                                                                    
Cash flows from financing activities                                                                
Policyholder account balances:                                                                      
   Deposits........................................................... $ 27,681  $ 29,171  $ 28,452 
   Withdrawals........................................................  (22,118)  (25,593)  (28,504)
Net change in short-term debt.........................................      567      (740)   (3,095)
Long-term debt issued.................................................      537       353     1,214 
Long-term debt repaid.................................................     (221)   (1,379)     (124)
Capital contribution from the Holding Company.........................      649        96     3,632 
Net proceeds from issuance of company-obligated mandatorily redeemable                              
  securities of subsidiary trust......................................       --       197        -- 
Cash payments to eligible policyholders...............................       --        --    (2,550)
Dividends on common stock.............................................     (904)   (3,754)     (762)
                                                                       --------  --------  -------- 
Net cash provided by (used in) financing activities...................    6,191    (1,649)   (1,737)
                                                                       --------  --------  -------- 
Change in cash and cash equivalents...................................   (2,826)      513       630 
Cash and cash equivalents, beginning of year..........................    3,932     3,419     2,789 
                                                                       --------  --------  -------- 
Cash and cash equivalents, end of year................................ $  1,106  $  3,932  $  3,419 
                                                                       ========  ========  ======== 
Supplemental disclosures of cash flow information:                                                  
   Cash paid (refunded) during the year for:                                                        
       Interest....................................................... $    267  $    336  $    448 
                                                                       ========  ========  ======== 
       Income taxes................................................... $     96  $   (335) $    256 
                                                                       ========  ========  ======== 
   Non-cash transactions during the year:                                                           
       Policy credits to eligible policyholders....................... $     --  $     --  $    408 
                                                                       ========  ========  ======== 
       Business acquisitions--assets.................................. $     --  $     --  $ 22,936 
                                                                       ========  ========  ======== 
       Business acquisitions--liabilities............................. $     --  $     --  $ 22,437 
                                                                       ========  ========  ======== 
       Business dispositions--assets.................................. $ 17,276  $  6,162  $  1,184 
                                                                       ========  ========  ======== 
       Business dispositions--liabilities............................. $ 16,547  $  5,263  $  1,014 
                                                                       ========  ========  ======== 
       Real estate acquired in satisfaction of debt................... $     30  $     30  $     24 
                                                                       ========  ========  ======== 
       Mortgage note on sale of real estate........................... $     --  $  1,530  $     -- 
                                                                       ========  ========  ======== 
       Purchase money mortgage on real estate sale.................... $    954  $     --  $     49 
                                                                       ========  ========  ======== 

See Accompanying Notes to Consolidated Financial Statements.  

F-70  

485BPOS
234th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 234th
METROPOLITAN LIFE INSURANCE COMPANY AND SUBSIDIARIES  

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  

1.  Summary of Accounting Policies                                              

Business                                                                    

Metropolitan Life Insurance Company ("Metropolitan Life") and its         
subsidiaries (the "Company") is a leading provider of insurance and other       
financial services to a broad section of individual and institutional           
customers. The Company offers life insurance, annuities, automobile and         
property insurance and mutual funds to individuals and group insurance,         
reinsurance, as well as retirement and savings products and services to         
corporations and other institutions. Metropolitan Life is a wholly-owned        
subsidiary of MetLife, Inc. ("MetLife" or the "Holding Company").               

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 New York Insurance Department (the "Department")       
recognizes only statutory accounting practices for determining and reporting    
the financial condition and results of operations of an insurance company for   
determining solvency under the New York Insurance Law. No consideration is      
given by the Department to financial statements prepared in conformity with     
GAAP in making such determination.                                              

The accompanying consolidated financial statements include the accounts of
Metropolitan Life and its subsidiaries, partnerships and joint ventures in      
which the Company has a majority voting interest. Closed block assets,          
liabilities, revenues and expenses are combined on a line by line basis with    
the assets, liabilities, revenues and expenses outside the closed block based   
on the nature of the particular item. See Note 7. Intercompany accounts and     
transactions have been eliminated.                                              

Metropolitan Insurance and Annuity Company ("MIAC"), which was sold to    
MetLife in 2001, and Cova Corporation, MetLife Investors Group, Inc., MetLife   
International Holdings, Inc., Walnut Street Securities, Inc., Seguros Genesis   
S.A., MetLife Pensiones S.A. and Metropolitan Life Seguros de Vida S.A., which  
were sold to MetLife in 2002, are included in the accompanying Financial        
Statements until the date of sale. See Note 12.                                 

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. The Company uses   
the cost method for minor interest investments and when it has virtually no     
influence over the partnership's operating and financial policies.              

Minority interest related to consolidated entities included in other      
liabilities was $481 million and $442 million at December 31, 2002 and 2001,    
respectively.                                                                   

Certain amounts in the prior years' consolidated financial statements have
been reclassified to conform with the 2002 presentation.                        

Summary of Critical Accounting Estimates                                    

The preparation of financial statements in conformity with GAAP requires  
management to adopt accounting policies and make estimates and assumptions that 
affect amounts reported in the consolidated financial statements. The critical  
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.                                                                 

F-71  

485BPOS
235th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 235th
METROPOLITAN LIFE INSURANCE COMPANY AND SUBSIDIARIES  

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(Continued) 

Investments                                                               

 The Company's principal investments are in fixed maturities, mortgage loans
and real estate, all of 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 impairments and    
income, as well as 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 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 determination of fair values in the       
absence of quoted market values is based on valuation methodologies, securities 
the Company deems to be comparable and assumptions deemed appropriate given the 
circumstances. The use of different methodologies and assumptions may have a    
material effect on the estimated fair value amounts.                            

Derivatives                                                               

The Company enters into freestanding derivative transactions primarily to 
manage the risk associated with variability in cash flows related to the        
Company's financial assets and liabilities or to changing fair values. The      
Company also purchases investment securities and issues certain insurance and   
reinsurance policies with embedded derivatives. The associated financial        
statement risk is the volatility in net income, which can result from (i)       
changes in fair value of derivatives not qualifying as accounting hedges, and   
(ii) ineffectiveness of designated hedges in an environment of changing         
interest rates or fair values. In addition, accounting for derivatives is       
complex, as evidenced by significant authoritative interpretations of the       
primary accounting standards which continue to evolve, as well as the           
significant judgments and estimates involved in determining fair value in the   
absence of quoted market values. These estimates are based on valuation         
methodologies and assumptions deemed appropriate in the circumstances. Such     
assumptions include estimated market volatility and interest rates used in the  
determination of fair value where quoted market values are not available. The   
use of different assumptions may have a material effect on the estimated fair   
value amounts.                                                                  

Deferred Policy Acquisition Costs                                         

The Company incurs significant costs in connection with acquiring new     
insurance business. These costs, which vary with, and are primarily related to, 
the production of new business, are deferred. The recovery of such costs is     
dependent on the future profitability of the related business. The amount of    
future profit is dependent principally upon investment returns, mortality,      
morbidity, persistency, expenses to administer the business creditworthiness of 
reinsurance counterparties and certain economic variables, such as inflation.   
Of these factors, the Company anticipates that investment returns are most      
likely to impact the rate of amortization of such costs. The aforementioned     
factors enter into management's estimates of gross margins and profits, which   
generally are used to amortize such costs. Revisions to estimates result in     
changes to the amounts expensed in the reporting period in which the revisions  
are made and could result in the impairment of the asset and a charge to income 
if estimated future gross margins and profits are less than amounts deferred.   
In addition, the Company                                                        

F-72  

485BPOS
236th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 236th
METROPOLITAN LIFE INSURANCE COMPANY AND SUBSIDIARIES  

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(Continued) 

utilizes the reversion to the mean assumption, a standard industry practice, in 
its determination of the amortization of deferred policy acquisition costs.     
This practice assumes that the expectation for long-term appreciation in equity 
markets is not changed by minor short-term market fluctuations, but that it     
does change when large interim deviations have occurred.                        

Future Policy Benefits                                                    

The Company establishes liabilities for amounts payable under insurance   
policies, including traditional life insurance, annuities and disability        
insurance. 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.                                  

The Company also establishes liabilities for unpaid claims and claims     
expenses for property and casualty insurance. Pricing of this insurance takes   
into account the expected frequency and severity of losses, the costs of        
providing coverage, competitive factors, characteristics of the insured and the 
property covered, and profit considerations. Liabilities for property and       
casualty insurance are dependent on estimates of amounts payable for claims     
reported but not settled and claims incurred but not reported. These estimates  
are influenced by historical experience and actuarial assumptions of current    
developments, anticipated trends and risk management strategies.                

Differences between the actual experience and assumptions used in pricing 
these policies and in the establishment of liabilities result in variances in   
profit and could result in losses.                                              

Reinsurance                                                               

The Company enters into reinsurance transactions as both a provider and a 
purchaser of reinsurance. Accounting for reinsurance requires extensive use of  
assumptions and estimates, particularly related to the future performance of    
the underlying business and the potential impact of counterparty credit risks.  
The Company periodically reviews actual and anticipated experience compared to  
the aforementioned assumptions used to establish policy benefits and evaluates  
the financial strength of counterparties to its reinsurance agreements using    
criteria similar to that evaluated in the security impairment process discussed 
above. Additionally, for each of its reinsurance contracts, the Company must    
determine if the contract provides indemnification against loss or liability    
relating to insurance risk, in accordance with applicable accounting standards. 
The Company must review all contractual features, particularly those that may   
limit the amount of insurance risk to which the Company is subject or features  
that delay the timely reimbursement of claims. If the Company determines that a 
contract does not expose it to a reasonable possibility of a significant loss   
from insurance risk, the Company records the contract using the deposit method  
of accounting.                                                                  

Litigation                                                                

The Company is a party to a number of legal actions. Given the inherent   
unpredictability of litigation, it is difficult to estimate the impact of       
litigation on the Company's consolidated financial position. Liabilities are    
established when it is probable that a loss has been incurred and the amount of 
the loss can be reasonably estimated. Liabilities related to certain lawsuits,  
including the Company's asbestos-related liability, are especially difficult to 
estimate due to the limitation of available data and uncertainty regarding      
numerous variables used to determine amounts recorded. The data and variables   
that impact the assumption used to estimate the Company's asbestos-related      
liability include the number of future claims, the cost to resolve claims, the  
disease mix and severity of disease, the jurisdiction of claims filed, tort     
reform efforts and the impact of any possible future adverse verdicts and their 
amounts. It is possible that an adverse outcome in certain of the Company's     
litigation,                                                                     

F-73  

485BPOS
237th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 237th
METROPOLITAN LIFE INSURANCE COMPANY AND SUBSIDIARIES  

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(Continued) 

including asbestos-related cases, or the use of different assumptions in the    
determination of amounts recorded could have a material effect upon the         
Company's consolidated net income or cash flows in particular quarterly or      
annual periods.                                                                 

Employee Benefit Plans                                                    

The Company sponsors pension and other retirement plans in various forms  
covering employees who meet specified eligibility requirements. The reported    
expense and liability associated with these plans requires an extensive use of  
assumptions which include the discount rate, expected return on plan assets and 
rate of future compensation increases as determined by the Company. Management  
determines these assumptions based upon currently available market and industry 
data, historical performance of the plan and its assets, and consultation with  
an independent consulting actuarial firm to aid it in selecting appropriate     
assumptions and valuing its related liabilities. The actuarial assumptions used 
by the Company may differ materially from actual results due to changing market 
and economic conditions, higher or lower withdrawal rates or longer or shorter  
life spans of the participants. These differences may have a significant effect 
on the Company's consolidated financial statements and liquidity.               

Significant Accounting Policies                                             

Investments                                                               

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 other comprehensive income or loss, 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.                       

  Mortgage loans on real estate are stated at amortized cost, net of valuation
allowances. Valuation allowances are established for the excess carrying value  
of the mortgage loan over its estimated fair value when it is probable that,    
based upon current information and events, the Company will be unable to        
collect all amounts due under the contractual terms of the loan agreement.      
Valuation allowances are included in net investment gains and losses and are    
based upon the present value of expected future cash flows discounted at the    
loan's original effective interest rate or the collateral value if the loan is  
collateral dependent. Interest income earned on impaired loans is accrued on    
the principal amount of the loan based on the loan's contractual interest rate. 
However, interest ceases to be accrued for loans on which interest is generally 
more than 60 days past due and/or where the collection of interest is not       
considered probable. Cash receipts on impaired loans are recorded as a          
reduction of the recorded asset.                                                

  Real estate held-for-investment including related improvements, is stated at
cost less accumulated depreciation. Depreciation is provided on a straight-line 
basis over the estimated useful life of the asset (typically 20 to 40 years).   
Real estate held-for-sale is stated at the lower of depreciated cost or fair    
value less expected disposition costs. Real estate is not depreciated while it  
is classified as held-for-sale. Cost of real estate held-for-investment is      
adjusted for impairment whenever events or changes in circumstances indicate    
the carrying amount of the asset may not be recoverable. Impaired real estate   
is written down to estimated fair value with the impairment loss being included 
in net investment gains and losses. Impairment losses are based upon the        
estimated fair value of real estate, which is generally computed using the      
present value of expected future cash flows from the real estate discounted at  
a rate commensurate with the underlying risks. Real estate acquired upon        

F-74  

485BPOS
238th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 238th
METROPOLITAN LIFE INSURANCE COMPANY AND SUBSIDIARIES  

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(Continued) 

foreclosure of commercial and agricultural mortgage loans is recorded at the    
lower of estimated fair value or the carrying value of the mortgage loan at the 
date of foreclosure.                                                            

Policy loans are stated at unpaid principal balances.                     

  Short-term investments are stated at amortized cost, which approximates fair
value.                                                                          

Other invested assets consist principally of leveraged leases and funds   
withheld at interest. The leveraged leases are recorded net of non-recourse     
debt. The Company participates in lease transactions which are diversified by   
geographic area. The Company regularly reviews residual values and writes down  
residuals to expected values as needed. Funds withheld represent amounts        
contractually withheld by ceding companies in accordance with reinsurance       
agreements. For agreements written on a modified coinsurance basis and certain  
agreements written on a coinsurance basis, assets supporting the reinsured      
policies and equal to the net statutory reserves are withheld and continue to   
be legally owned by the ceding companies. The Company recognizes interest on    
funds withheld in accordance with the treaty terms as investment income is      
earned on the assets supporting the reinsured policies.                         

Structured Investment Transactions and Variable Interest Entities         

The Company participates in structured investment transactions, primarily 
asset securitizations and structured notes. These transactions enhance the      
Company's total return of the investment portfolio principally by generating    
management fee income on asset securitizations and by providing equity-based    
returns on debt securities through structured notes and similar type            
instruments.                                                                    

The Company sponsors financial asset securitizations of high yield debt   
securities, investment grade bonds and structured finance securities and also   
is the collateral manager and a beneficial interest holder in such              
transactions. As the collateral manager, the Company earns management fees on   
the outstanding securitized asset balance, which are recorded in income as      
earned. When the Company transfers assets to a bankruptcy-remote special        
purpose entity ("SPE") and surrenders control over the transferred assets, the  
transaction is accounted for as a sale. Gains or losses on securitizations are  
determined with reference to the carrying amount of the financial assets        
transferred, which is allocated to the assets sold and the beneficial interests 
retained based on relative fair values at the date of transfer. Beneficial      
interests in securitizations are carried at fair value in fixed maturities.     
Income on the beneficial interests is recognized using the prospective method   
in accordance with Emerging Issues Task Force ("EITF") Issue No. 99-20,         
Recognition of Interest Income and Impairment on Certain Investments ("EITF     
99-20"). The SPEs used to securitize assets are not consolidated by the Company 
because unrelated third parties hold controlling interests through ownership of 
equity in the SPEs, representing at least three percent of the value of the     
total assets of the SPE throughout the life of the SPE, and such equity class   
has the substantive risks and rewards of the residual interest of the SPE.      

The Company purchases or receives beneficial interests in SPEs, which     
generally acquire financial assets, including corporate equities, debt          
securities and purchased options. The Company has not guaranteed the            
performance, liquidity or obligations of the SPEs and the Company's exposure to 
loss is limited to its carrying value of the beneficial interests in the SPEs.  
The Company uses the beneficial interests as part of its risk management        
strategy, including asset-liability management. These SPEs are not consolidated 
by the Company because unrelated third parties hold controlling interests       
through ownership of equity in the SPEs, representing at least three percent of 
the value of the total assets of the SPE throughout the life of the SPE, and    
such equity class has the substantive risks and rewards of the residual         
interest of the SPE. The beneficial interests in SPEs where the Company         
exercises significant influence over the operating and financial policies of    
the SPE are accounted for in accordance with the equity method of accounting.   
Impairments of these beneficial interests are included in                       

F-75  

485BPOS
239th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 239th
METROPOLITAN LIFE INSURANCE COMPANY AND SUBSIDIARIES  

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(Continued) 

net investment gains and losses. The beneficial interests in SPEs where the     
Company does not exercise significant influence are accounted for based on the  
substance of the beneficial interest's rights and obligations. Beneficial       
interests are accounted for and are included in fixed maturities. These         
beneficial interests are generally structured notes, as defined by EITF Issue   
No. 96-12, Recognition of Interest Income and Balance Sheet Classification of   
Structured Notes, and their income is recognized using the retrospective        
interest method or the level yield method, as appropriate.                      

Effective in 2003, Financial Accounting Standards Board ("FASB")          
Interpretation No. 46, Consolidation of Variable Interest Entities, and         
Interpretation of APB No. 51 ("FIN 46") will establish new accounting guidance  
relating to the consolidation of variable interest entities ("VIEs"). Certain   
of the asset-backed securitizations and structured investment transactions      
discussed above meet the definition of a VIE under FIN 46. In addition, certain 
investments in real estate joint ventures and other limited partnership         
interests also 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:     

                                                        [Enlarge/Download Table]

                                                                        December 31, 2002    
                                                                        ------------------   
                                                                                   Maximum   
                                                                        Total    Exposure to 
                                                                        Assets      Loss     
                                                                        ------   ----------- 
                                                                        (Dollars in millions)
                                                                                             
Financial asset-backed securitizations and collateralized debt and bond                      
  obligations.......................................................... $1,719      $  9(1)  
Other structured investment transactions...............................     89        38(2)  
Real estate joint ventures.............................................    443       196(3)  
Other limited partnership interests....................................    864       167(3)  
                                                                         ------     ----     
   Total............................................................... $3,115      $410     
                                                                         ======     ====     

--------                                                                        
(1) The maximum exposure to loss is based on the carrying value of retained     
interests.                                                              
(2) The maximum exposure to loss is based on the carrying value of beneficial   
interests.                                                              
(3) The maximum exposure to loss is based on the carrying value plus unfunded   
commitments reduced by amounts guaranteed by other partners.            

Derivative Instruments                                                    

The Company uses derivative instruments to manage risk through one of four
principal risk management strategies: (i) the hedging of liabilities, (ii)      
invested assets, (iii) portfolios of assets or liabilities and (iv) firm        
commitments and forecasted transactions. Additionally, the Company enters into  
income generation and replication derivative transactions as permitted by its   
derivatives use plan that was approved by the New York Insurance Department     
(the "Department"). The Company's derivative hedging strategy employs a variety 
of instruments, including financial futures, financial forwards, interest rate, 
credit default and foreign currency swaps, foreign currency forwards contracts, 
and options, including caps and floors.                                         

On the date the Company enters into a derivative contract, management     
designates the derivative as a hedge of the identified exposure (fair value,    
cash flow or foreign currency). If a derivative does not qualify as a hedge,    

F-76  

485BPOS
240th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 240th
METROPOLITAN LIFE INSURANCE COMPANY AND SUBSIDIARIES  

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(Continued) 

according to Statement of Financial Accounting Standards ("SFAS") No. 133,      
Accounting for Derivative Instruments and Hedging Activities, as amended ("SFAS 
133"), the derivative is recorded at fair value and changes in its fair value   
are generally reported in net investment gains or losses.                       

  The Company formally documents all relationships between hedging instruments
and hedged items, as well as its risk management objective and strategy for     
undertaking various hedge transactions. In this documentation, the Company      
specifically identifies the asset, liability, firm commitment, or forecasted    
transaction that has been designated as a hedged item and states how the        
hedging instrument is expected to hedge the risks related to the hedged item.   
The Company formally measures effectiveness of its hedging relationships both   
at the hedge inception and on an ongoing basis in accordance with its risk      
management policy. The Company generally determines hedge effectiveness based   
on total changes in fair value of a derivative instrument. The Company          
discontinues hedge accounting prospectively when: (i) it is determined that the 
derivative is no longer effective in offsetting changes in the fair value or    
cash flows of a hedged item, (ii) the derivative expires or is sold,            
terminated, or exercised, (iii) the derivative is de-designated as a hedge      
instrument, (iv) it is probable that the forecasted transaction will not occur, 
(v) a hedged firm commitment no longer meets the definition of a firm           
commitment, or (vi) management determines that designation of the derivative as 
a hedge instrument is no longer appropriate.                                    

The Company designates and accounts for the following as cash flow hedges,
when they have met the effectiveness requirements of SFAS 133: (i) various      
types of interest rate swaps to convert floating rate investments to fixed rate 
investments, (ii) receive U.S. dollar fixed on foreign currency swaps to hedge  
the foreign currency cash flow exposure of foreign currency denominated         
investments, (iii) foreign currency forwards to hedge the exposure of future    
payments or receipts in foreign currencies, and (iv) other instruments to hedge 
the cash flows of various other forecasted transactions. For all qualifying and 
highly effective cash flow hedges, the effective portion of changes in fair     
value of the derivative instrument is reported in other comprehensive income or 
loss. The ineffective portion of changes in fair value of the derivative        
instrument is reported in net investment gains or losses. Hedged forecasted     
transactions, other than the receipt or payment of variable interest payments,  
are not expected to occur more than 12 months after hedge inception.            

The Company designates and accounts for the following as fair value hedges
when they have met the effectiveness requirements of SFAS 133: (i) various      
types of interest rate swaps to convert fixed rate investments to floating rate 
investments, (ii) receive U.S. dollar floating on foreign currency swaps to     
hedge the foreign currency fair value exposure of foreign currency denominated  
investments, and (iii) other instruments to hedge various other fair value      
exposures of investments. For all qualifying and highly effective fair value    
hedges, the changes in fair value of the derivative instrument are reported as  
net investment gains or losses. In addition, changes in fair value attributable 
to the hedged portion of the underlying instrument are reported in net          
investment gains and losses.                                                    

When hedge accounting is discontinued because it is determined that the   
derivative no longer qualifies as an effective fair value hedge, the derivative 
continues to be carried on the consolidated balance sheet at its fair value,    
but the hedged asset or liability will no longer be adjusted for changes in     
fair value. When hedge accounting is discontinued because the hedged item no    
longer meets the definition of a firm commitment, the derivative continues to   
be carried on the consolidated balance sheet at its fair value, and any asset   
or liability that was recorded pursuant to recognition of the firm commitment   
is removed from the consolidated balance sheet and recognized as a net          
investment gain or loss in the current period. When hedge accounting is         
discontinued because it is probable that a forecasted transaction will not      
occur, the derivative continues to be carried on the consolidated balance sheet 
at its fair value, and gains and losses that were accumulated in other          
comprehensive income or loss are recognized immediately in net investment gains 
or losses. When the hedged forecasted                                           

F-77  

485BPOS
241st Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 241st
METROPOLITAN LIFE INSURANCE COMPANY AND SUBSIDIARIES  

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(Continued) 

transaction is no longer probable, but is reasonably possible, the accumulated  
gain or loss remains in other comprehensive income or loss and is recognized    
when the transaction affects net income or loss; however, prospective hedge     
accounting for the transaction is terminated. In all other situations in which  
hedge accounting is discontinued, the derivative is carried at its fair value   
on the consolidated balance sheet, with changes in its fair value generally     
recognized in the current period as net investment gains or losses.             

The Company may enter into contracts that are not themselves derivative   
instruments but contain embedded derivatives. For each contract, the Company    
assesses whether the economic characteristics of the embedded derivative are    
clearly and closely related to those of the host contract and determines        
whether a separate instrument with the same terms as the embedded instrument    
would meet the definition of a derivative instrument.                           

If it is determined that the embedded derivative possesses economic       
characteristics that are not clearly and closely related to the economic        
characteristics of the host contract, and that a separate instrument with the   
same terms would qualify as a derivative instrument, the embedded derivative is 
separated from the host contract and accounted for as a stand-alone derivative. 
Such embedded derivatives are recorded on the consolidated balance sheet at     
fair value and changes in their fair value are recorded currently in net        
investment gains or losses. If the Company is unable to properly identify and   
measure an embedded derivative for separation from its host contract, the       
entire contract is carried on the consolidated balance sheet at fair value,     
with changes in fair value recognized in the current period as net investment   
gains or losses.                                                                

The Company also uses derivatives to synthetically create investments that
are either more expensive to acquire or otherwise unavailable in the cash       
markets. These securities, called replication synthetic asset transactions      
("RSATs"), are a combination of a derivative and a cash security to             
synthetically create a third replicated security. These derivatives are not     
designated as hedges. As of December 31, 2002 and 2001, 19 and 15,              
respectively, of such RSATs, with notional amounts totaling $285 million and    
$205 million, respectively, have been created through the combination of a      
credit default swap and a U.S. Treasury security. The Company records the       
premiums received on the credit default swaps in investment income over the     
life of the contract and changes in fair value are recorded in net investment   
gains and losses.                                                               

The Company enters into written covered calls and net written covered     
collars to generate additional investment income on the underlying assets it    
holds. These derivatives are not designated as hedges. The Company records the  
premiums received as net investment income over the life of the contract and    
changes in fair value of such options and collars as net investment gains and   
losses.                                                                         

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.   
The estimated life for a company occupied real estate property is 40 years.     
Estimated lives range from five to ten years for leasehold improvements and     
three to five years for all other property and equipment. Accumulated           
depreciation and amortization of property, equipment and leasehold improvements 
was $368 million and $546 million at December 31, 2002 and 2001, respectively.  
Related depreciation and amortization expense was $81 million, $96 million and  
$90 million for the years ended December 31, 2002, 2001 and 2000, respectively. 

F-78  

485BPOS
242nd Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 242nd
METROPOLITAN LIFE INSURANCE COMPANY AND SUBSIDIARIES  

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(Continued) 

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 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 $297 million and $165 million at       
December 31, 2002 and 2001, respectively. Related amortization expense was $153 
million, $106 million and $45 million for the years ended December 31, 2002,    
2001 and 2000, respectively.                                                    

Deferred Policy Acquisition Costs                                           

The costs of acquiring new insurance 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, universal life and investment-type products.    
Generally, deferred policy acquisition costs are amortized in proportion to the 
present value of estimated gross margins or profits from investment, 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     
utilizes the reversion to the mean assumption, a standard industry practice, in 
its determination of the amortization of deferred policy acquisition costs.     
This practice assumes that the expectation for long-term appreciation is not    
changed by minor short-term market fluctuations, but that it does change when   
large interim deviations have occurred. 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 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 or acquisition and are consistently     
applied during the lives of the contracts. Deviations from estimated experience 
are included in operations when they occur. For these contracts, the            
amortization period is typically the estimated life of the policy.              

Policy acquisition costs related to internally replaced contracts are     
expensed at the date of replacement.                                            

Deferred policy acquisition costs for property and casualty insurance     
contracts, which are primarily comprised of commissions and certain             
underwriting expenses, are deferred and amortized on a pro rata basis over the  
applicable contract term or reinsurance treaty.                                 

Value of business acquired ("VOBA"), included as part of deferred policy  
acquisition costs, represents the present value of future profits generated     
from existing insurance contracts in force at the date of acquisition and is    
amortized over the expected policy or contract duration in relation to the      
present value of estimated gross profits from such policies and contracts.      

F-79  

485BPOS
243rd Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 243rd
METROPOLITAN LIFE INSURANCE COMPANY AND SUBSIDIARIES  

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(Continued) 

Information regarding VOBA and deferred policy acquisition costs for the  
year ended December 31, 2002 is as follows:                                     

                                                                [Download Table]

                                            Deferred           
                                  Value of   Policy            
                                  Business Acquisition         
                                  Acquired    Costs     Total  
                                  -------- ----------- ------- 
                                      (Dollars in millions)    
                                                               
Balance at January 1, 2002.......  $1,502    $ 8,969   $10,471 
Capitalizations..................      --      2,227     2,227 
                                   ------    -------   ------- 
       Total.....................   1,502     11,196    12,698 
                                   ------    -------   ------- 
Amortization allocated to:                                     
   Net investment gains (losses).      16         (5)       11 
   Unrealized investment gains...      31        173       204 
   Other expenses................     121      1,380     1,501 
                                   ------    -------   ------- 
       Total amortization........     168      1,548     1,716 
                                   ------    -------   ------- 
Dispositions and other...........    (463)      (853)   (1,316)
                                   ------    -------   ------- 
Balance at December 31, 2002.....  $  871    $ 8,795   $ 9,666 
                                   ======    =======   ======= 

Information regarding VOBA and deferred policy acquisition costs for the  
year ended December 31, 2001 is as follows:                                     

                                                                [Download Table]

                                            Deferred           
                                  Value of   Policy            
                                  Business Acquisition         
                                  Acquired    Costs     Total  
                                  -------- ----------- ------- 
                                      (Dollars in millions)    
                                                               
Balance at January 1, 2001.......  $1,674    $ 8,823   $10,497 
Capitalizations..................      --      2,018     2,018 
                                   ------    -------   ------- 
       Total.....................   1,674     10,841    12,515 
                                   ------    -------   ------- 
Amortization allocated to:                                     
   Net investment (losses) gains.     (15)        36        21 
   Unrealized investment gains...      16        112       128 
   Other expenses................     178      1,256     1,434 
                                   ------    -------   ------- 
       Total amortization........     179      1,404     1,583 
                                   ------    -------   ------- 
Dispositions and other...........       7       (468)     (461)
                                   ------    -------   ------- 
Balance at December 31, 2001.....  $1,502    $ 8,969   $10,471 
                                   ======    =======   ======= 

F-80  

485BPOS
244th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 244th
METROPOLITAN LIFE INSURANCE COMPANY AND SUBSIDIARIES  

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(Continued) 

Information regarding VOBA and deferred policy acquisition costs for the  
year ended December 31, 2000 is as follows:                                     

                                                                [Download Table]

                                                   Deferred           
                                         Value of   Policy            
                                         Business Acquisition         
                                         Acquired    Costs     Total  
                                         -------- ----------- ------- 
                                             (Dollars in millions)    
                                                                      
Balance at January 1, 2000..............  $  632    $ 8,438   $ 9,070 
Capitalizations.........................      --      1,805     1,805 
Acquisitions............................   1,480        201     1,681 
                                          ------    -------   ------- 
       Total............................   2,112     10,444    12,556 
                                          ------    -------   ------- 
Amortization allocated to:                                            
   Net investment gains (losses)........      28       (123)      (95)
   Unrealized investment gains..........      93        503       596 
   Other expenses.......................     310      1,162     1,472 
                                          ------    -------   ------- 
       Total amortization...............     431      1,542     1,973 
                                          ------    -------   ------- 
Dispositions and other..................      (7)       (79)      (86)
                                          ------    -------   ------- 
Balance at December 31, 2000............  $1,674    $ 8,823   $10,497 
                                          ======    =======   ======= 

The estimated future amortization expense allocated to other expenses for 
VOBA is $83 million in 2003, $78 million in 2004, $73 million in 2005, $70      
million in 2006 and $64 million in 2007.                                        

Amortization of VOBA and 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 and losses 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 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 related to certain products have a direct impact
on the amortization of VOBA and deferred policy acquisition costs. Presenting   
investment gains and losses net of related amortization of VOBA and deferred    
policy 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 is 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 ranging from ten to 30 years and impairments were recognized in          
operating results when permanent diminution in value was deemed to have         
occurred.                                                                       

F-81  

485BPOS
245th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 245th
METROPOLITAN LIFE INSURANCE COMPANY AND SUBSIDIARIES  

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(Continued) 

Changes in goodwill were as follows:                                      

                                                                [Download Table]

                           Years ended December 31,
                           ----------------------- 
                            2002    2001     2000  
                            -----   ----    -----  
                           (Dollars in millions)   
                                                   
Net balance at January 1.. $ 575    $703    $ 611  
Acquisitions..............     7      20      286  
Amortization..............    --     (47)     (50) 
Impairment losses.........    (2)    (61)      --  
Dispositions and other....  (175)    (40)    (144) 
                            -----    ----   -----  
Net balance at December 31 $ 405    $575    $ 703  
                            =====    ====   =====  

Accumulated amortization from goodwill was as follows at:                 

                                                                [Download Table]

                         December 31,         
                         ------------------   
                         2002         2001    
                         ----         ----    
                         (Dollars in millions)
                                              
Accumulated amortization $71          $100    
                         ===            ====  

Future Policy Benefits and Policyholder Account Balances                  

Future policy benefit liabilities for participating 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              
nonforfeiture interest rate, ranging from 3% to 8%, 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.                              

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 liabilities range from 3% to 9%. Future policy        
benefit liabilities for non-medical health insurance are calculated using the   
net level premium method and assumptions as to future morbidity, withdrawals    
and interest, which provide a margin for adverse deviation. Interest rates used 
in establishing such liabilities range from 3% to 7%. Future policy benefit     
liabilities for disabled lives are estimated using the present value of         
benefits method and experience assumptions as to claim terminations, expenses   
and interest. Interest rates used in establishing such liabilities range from   
3% to 8%.                                                                       

Policyholder account balances for 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 13%, less expenses, mortality charges, and withdrawals.                      

  The liability for unpaid claims and claim expenses for property and casualty
insurance 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,                                

F-82  

485BPOS
246th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 246th
METROPOLITAN LIFE INSURANCE COMPANY AND SUBSIDIARIES  

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(Continued) 

reduced for anticipated salvage and subrogation. 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 and are recognized in the period in which  
services are provided. Amounts that are charged to operations include interest  
credited and benefit claims incurred in excess of related policyholder account  
balances.                                                                       

Premiums related to property and casualty contracts are recognized as     
revenue on a pro rata basis over the applicable contract term. Unearned         
premiums are included in other liabilities.                                     

Other Revenues                                                            

Other revenues include asset management and advisory fees, broker/dealer  
commissions and fees, and administrative service fees. Such fees and            
commissions are recognized in the period in which services are performed. Other 
revenues also include changes in account value relating to corporate-owned life 
insurance ("COLI"). Under certain COLI contracts, if the Company reports        
certain unlikely adverse results in its consolidated financial statements,      
withdrawals would not be immediately available and would be subject to market   
value adjustment, which could result in a reduction of the account value.       

Policyholder Dividends                                                    

 Policyholder dividends are approved annually by the insurance subsidiaries'
boards of directors. The aggregate amount of policyholder dividends is related  
to actual interest, mortality, morbidity and expense experience for the year,   
as well as management's judgment as to the appropriate level of statutory       
surplus to be retained by the insurance subsidiaries.                           

Participating Business                                                    

Participating business represented approximately 16% and 18% of the       
Company's life insurance in-force, and 90% and 82% of the number of life        
insurance policies in-force, at December 31, 2002 and 2001, respectively.       
Participating policies represented approximately 43% and 46%, 44% and 46%, and  
47% and 50% of gross and net life insurance premiums for the years ended        
December 31, 2002, 2001 and 2000, respectively. The percentages indicated are   
calculated excluding the business of the Reinsurance segment.                   

Income Taxes                                                              

  Metropolitan Life, the Holding Company and its includable life insurance and
non-life insurance subsidiaries file a consolidated U.S. federal income tax     
return in accordance with the provisions of the Internal                        

F-83  

485BPOS
247th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 247th
METROPOLITAN LIFE INSURANCE COMPANY AND SUBSIDIARIES  

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(Continued) 

Revenue Code of 1986, as amended (the "Code"). Non-includable subsidiaries file 
either separate tax returns or separate consolidated tax returns. Under the     
Code, the amount of federal income tax expense incurred by mutual life          
insurance companies includes an equity tax calculated based upon a prescribed   
formula that incorporates a differential earnings rate between stock and mutual 
life insurance companies. Metropolitan Life has not been subject to the equity  
tax since the date of demutualization. The future tax consequences of temporary 
differences between financial reporting and tax bases of assets and liabilities 
are measured at the balance sheet dates and are recorded as deferred income tax 
assets and liabilities.                                                         

Reinsurance                                                               

The Company has reinsured certain of its life insurance and property and  
casualty 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. Deferred policy acquisition costs are reduced by  
amounts recovered under reinsurance contracts. Amounts received from reinsurers 
for policy administration are reported in other revenues.                       

The Company assumes and retrocedes financial reinsurance contracts, which 
represent low mortality risk reinsurance treaties. These contracts are reported 
as deposits and are included in other assets. The amount of revenue reported on 
these contracts represents fees and the cost of insurance under the terms of    
the reinsurance agreement.                                                      

Separate Accounts                                                         

 Separate accounts are established in conformity with insurance laws and are
generally not chargeable with liabilities that arise from any other business of 
the Company. Separate account assets are subject to general account claims only 
to the extent the value of such assets exceeds the separate account             
liabilities. Investments (stated at estimated fair value) and liabilities of    
the separate accounts are reported separately as assets and liabilities.        
Deposits to separate accounts, investment income and recognized and unrealized  
gains and losses on the investments of the separate accounts accrue directly to 
contractholders and, accordingly, are not reflected in the Company's            
consolidated statements of income and cash flows. Mortality, policy             
administration and surrender charges to all separate accounts are included in   
revenues.                                                                       

Stock Based Compensation                                                  

The Company accounts for the stock-based compensation plans using the     
accounting method prescribed by Accounting Principles Board Opinion ("APB") No. 
25, Accounting for Stock Issued to Employees ("APB 25") and has included in     
Note 17 the pro forma disclosures required by SFAS No. 123, Accounting for      
Stock-Based Compensation ("SFAS 123").                                          

Foreign Currency Translation                                              

 Balance sheet accounts of foreign operations are translated at the exchange
rates in effect at each year-end and income and expense accounts are translated 
at the average rates of exchange prevailing during the year. The local          
currencies of foreign operations are the functional currencies unless the local 
economy is highly inflationary. Translation adjustments are charged or credited 
directly to other comprehensive income or loss. Gains and losses from foreign   
currency transactions are reported in earnings.                                 

Discontinued Operations                                                   

  The results of operations of a component of the Company that either has been
disposed of or is classified as held-for-sale on or after January 1, 2002 are   
reported in discontinued operations if the operations and cash flows            

F-84  

485BPOS
248th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 248th
METROPOLITAN LIFE INSURANCE COMPANY AND SUBSIDIARIES  

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(Continued) 

of the component have been or will be eliminated from the ongoing operations of 
the Company as a result of the disposal transaction and the Company will not    
have any significant continuing involvement in the operations of the component  
after the disposal transaction.                                                 

Demutualization and Initial Public Offering                                 

On April 7, 2000 (the "date of demutualization"), Metropolitan Life       
converted from a mutual life insurance company to a stock life insurance        
company and became a wholly-owned subsidiary of MetLife. The conversion was     
pursuant to an order by the New York Superintendent of Insurance (the           
"Superintendent") approving Metropolitan Life's plan of reorganization, as      
amended (the "plan").                                                           

On the date of demutualization, policyholders' membership interests in    
Metropolitan Life were extinguished and eligible policyholders received, in     
exchange for their interests, trust interests representing 494,466,664 shares   
of common stock of MetLife to be held in a trust, cash payments aggregating     
$2,550 million and adjustments to their policy values in the form of policy     
credits aggregating $408 million, as provided in the plan. In addition,         
Metropolitan Life's Canadian branch made cash payments of $327 million in the   
second quarter of 2000 to holders of certain policies transferred to Clarica    
Life Insurance Company in connection with the sale of a substantial portion of  
Metropolitan Life's Canadian operations in 1998, as a result of a commitment    
made in connection with obtaining Canadian regulatory approval of that sale.    

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 "Structured       
Investment Transactions and Variable Interest Entities."                        

As of December 31, 2002, the FASB is deliberating on a proposed statement 
that would further amend SFAS 133. The proposed statement will address certain  
SFAS 133 Implementation Issues. The proposed statement is not expected to have  
a significant impact on the Company's consolidated financial statements.        

In December 2002, the FASB issued SFAS No. 148, Accounting for Stock-Based
Compensation --Transition and Disclosure ("SFAS 148"), which provides guidance  
on how to transition from the intrinsic value method of accounting for          
stock-based employee compensation under APB 25 to the fair value method of      
accounting of SFAS 123, if a company so elects. Effective January 1, 2003, the  
Company adopted the fair value method of recording stock options under SFAS     
123. In accordance with alternatives available under the transitional guidance  
of SFAS 148, the Company has elected to apply the fair value method of          
accounting for stock options prospectively to awards granted subsequent to      
January 1, 2003. As permitted, options granted prior to January 1, 2003, will   
continue to be accounted for under APB 25, and the pro forma impact of          
accounting for these options at fair value will continue to be disclosed in the 
consolidated financial statements until the last of those options vest in 2005. 

In November 2002, the FASB issued Interpretation No. 45, Guarantor's      
Accounting and Disclosure Requirements for Guarantees Including Indirect        
Guarantees of Indebtedness of Others ("FIN 45"). FIN 45 requires entities to    
establish liabilities for certain types of guarantees, and expands financial    
statement disclosures                                                           

F-85  

485BPOS
249th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 249th
METROPOLITAN LIFE INSURANCE COMPANY AND SUBSIDIARIES  

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(Continued) 

for others. Disclosure requirements under FIN 45 are effective for financial    
statements of annual periods ending after December 15, 2002 and are applicable  
to all guarantees issued by the guarantor subject to the provisions of FIN 45.  
The initial recognition and initial measurement provisions of FIN 45 are        
applicable on a prospective basis to guarantees issued or modified after        
December 31, 2002. The Company does not expect the initial adoption of FIN 45   
to have a significant impact on the Company's consolidated financial            
statements. The adoption of FIN 45 requires the Company to include disclosures  
in its consolidated financial statements related to guarantees. See Note 11.    

 In June 2002, the FASB issued SFAS No. 146, Accounting for Costs Associated
with Exit or Disposal Activities ("SFAS 146"), which must be adopted for exit   
and disposal activities initiated after December 31, 2002. SFAS 146 will        
require that a liability for a cost associated with an exit or disposal         
activity be recognized and measured initially at fair value only when the       
liability is incurred rather than at the date of an entity's commitment to an   
exit plan as required by EITF 94-3, Liability Recognition for Certain Employee  
Termination Benefits and Other Costs to Exit an Activity (including Certain     
Costs Incurred in a Restructuring) ("EITF 94-3"). As discussed in Note 13, in   
the fourth quarter of 2001, the Company recorded a charge of $330 million, net  
of income taxes of $169 million, associated with business realignment           
initiatives using the EITF 94-3 accounting guidance.                            

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 ("SFAS 145"). 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 the initial        
application of this standard did not have a significant impact on the Company's 
consolidated financial statements.                                              

 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 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 a material impact on the Company's consolidated financial statements other 
than the presentation as discontinued operations of net investment income and   
net investment gains related to operations of real estate on which the Company  
initiated disposition activities subsequent to January 1, 2002 and the          
classification of such real estate as held-for-sale on the consolidated balance 
sheets. See Note 20.                                                            

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                                                                        

F-86  

485BPOS
250th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 250th
METROPOLITAN LIFE INSURANCE COMPANY AND SUBSIDIARIES  

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(Continued) 

goodwill during 2002. Amortization of goodwill was $47 million and $50 million  
for the years ended December 31, 2001 and 2000, respectively. Amortization of   
other intangible assets was not material for the years ended December 31, 2002, 
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 $5 million charge to earnings relating to the impairment 
of certain goodwill assets in the third quarter of 2002 as a cumulative effect  
of a change in accounting. There was no impairment of identified intangible     
assets or significant reclassifications between goodwill and other intangible   
assets at January 1, 2002.                                                      

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. In         
accordance with SFAS 141, the elimination of $5 million of negative goodwill    
was reported in income in the first quarter of 2002 as a cumulative effect of a 
change in accounting.                                                           

In July 2001, the U.S. Securities and Exchange Commission ("SEC") released
Staff Accounting Bulletin ("SAB") 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 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 
of FASB Statement No. 125, relating to the derecognition of transferred assets  
and extinguished liabilities and the reporting of servicing assets and          
liabilities. The initial 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   
initial adoption of EITF 99-20 did not have a material impact on the Company's  
consolidated financial statements.                                              

Effective January 1, 2001, the Company adopted SFAS 133 which established 
new accounting and reporting standards for derivative instruments, including    
certain derivative instruments embedded in other contracts, and for hedging     
activities. The cumulative effect of the adoption of SFAS 133, as of January 1, 
2001, resulted in a $33 million increase in other comprehensive income, net of  
income taxes of $18 million, and had no material impact on net income. The      
increase to other comprehensive income is attributable to net gains on cash     
flow-type hedges at transition. Also at transition, the amortized cost of fixed 
maturities decreased and other invested assets increased by $22 million,        
representing the fair value of certain interest rate swaps that were accounted  
for prior to SFAS 133 using fair value-type settlement accounting. During the   
year ended December 31, 2001, $18 million of the pre-tax gain reported in       
accumulated other comprehensive income at transition was reclassified into net  
investment income. The FASB continues to issue additional guidance relating to  
the accounting for derivatives under SFAS 133, which may result in further      
adjustments to the Company's treatment of derivatives in subsequent accounting  
periods.                                                                        

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                               

F-87  

485BPOS
251st Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 251st
METROPOLITAN LIFE INSURANCE COMPANY AND SUBSIDIARIES  

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(Continued) 

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.  

2.  September 11, 2001 Tragedies                                                

On September 11, 2001 terrorist attacks occurred in New York, Washington, 
D.C. and Pennsylvania (the "tragedies") triggering a significant loss of life   
and property which had an adverse impact on certain of the Company's            
businesses. The Company has direct exposure to these events with claims arising 
from its Individual, Institutional, Reinsurance and Auto & Home insurance       
coverages, and it believes the majority of such claims have been reported or    
otherwise analyzed by the Company.                                              

  The Company's original estimate of the total insurance losses related to the
tragedies, which was recorded in the third quarter of 2001, was $208 million,   
net of income taxes of $117 million. Net income for the year ended December 31, 
2002 includes a $17 million, net of income taxes of $9 million, benefit from    
the reduction of the liability associated with the tragedies. This revision of  
the liability is the result of an analysis completed during the fourth quarter  
of 2002, which focused on the emerging incidence experienced over the past 12   
months associated with certain disability products. As of December 31, 2002,    
the Company's remaining liability for unpaid and future claims associated with  
the tragedies was $47 million, principally related to disability coverages. The 
estimate has been and will continue to be subject to revision in subsequent     
periods, as claims are received from insureds and the claims to reinsurers are  
identified and processed. Any revision to the estimate of gross losses and      
reinsurance recoveries in subsequent periods will affect net income in such     
periods. Reinsurance recoveries are dependent on the continued creditworthiness 
of the reinsurers, which may be adversely affected by their other reinsured     
losses in connection with the tragedies.                                        

The Company's general account investment portfolios include investments,  
primarily comprised of fixed maturities, in industries that were affected by    
the tragedies, including airline, other travel, lodging and insurance.          
Exposures to these industries also exist through mortgage loans and investments 
in real estate. The carrying value of the Company's investment portfolio        
exposed to industries affected by the tragedies was approximately $3.5 billion  
at December 31, 2002.                                                           

  The long-term effects of the tragedies on the Company's businesses cannot be
assessed at this time. The tragedies have had significant adverse effects on    
the general economic, market and political conditions, increasing many of the   
Company's business risks. This may have a negative effect on MetLife's          
businesses and results of operations over time. In particular, the declines in  
share prices experienced after the reopening of the U.S. equity markets         
following the tragedies have contributed, and may continue to contribute, to a  
decline in separate account assets, which in turn may have an adverse effect on 
fees earned in the Company's businesses. In addition, the Company has received  
and expects to continue to receive disability claims from individuals resulting 
from the tragedies.                                                             

F-88  

485BPOS
252nd Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 252nd
METROPOLITAN LIFE INSURANCE COMPANY AND SUBSIDIARIES  

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(Continued) 

3.  Investments                                                                 

Fixed Maturities and Equity Securities                                      

  Fixed maturities and equity securities at December 31, 2002 were as follows:

                                                                [Download Table]

                                       Cost or  Gross Unrealized           
                                      Amortized ---------------- Estimated 
                                        Cost     Gain     Loss   Fair Value
                                      ---------  ------  ------  ----------
                                            (Dollars in millions)          
                                                                           
Fixed Maturities:                                                          
 Bonds:                                                                    
   U.S. corporates securities........ $ 42,265  $2,914   $  896   $ 44,283 
   Mortgage-backed securities........   30,444   1,534       20     31,958 
   Foreign corporate securities......   15,405   1,295      185     16,515 
   U.S. treasuries/agencies..........   13,256   1,514        3     14,767 
   Asset-backed securities...........    8,070     204      181      8,093 
   Foreign government securities.....    4,649     516       50      5,115 
   States and political subdivisions.    2,575     181       20      2,736 
   Other fixed income assets.........      312     126       82        356 
                                      --------   ------  ------   -------- 
     Total bonds.....................  116,976   8,284    1,437    123,823 
 Redeemable preferred stocks.........      805      13      116        702 
                                      --------   ------  ------   -------- 
   Total fixed maturities............ $117,781  $8,297   $1,553   $124,525 
                                      ========   ======  ======   ======== 
Equity Securities:                                                         
 Common stocks....................... $    827  $  114   $   80   $    861 
 Nonredeemable preferred stocks......      415      13        3        425 
                                      --------   ------  ------   -------- 
   Total equity securities........... $  1,242  $  127   $   83   $  1,286 
                                      ========   ======  ======   ======== 

  Fixed maturities and equity securities at December 31, 2001 were as follows:

                                                                [Download Table]

                                       Cost or  Gross Unrealized           
                                      Amortized ---------------- Estimated 
                                        Cost     Gain     Loss   Fair Value
                                      ---------  ------  ------  ----------
                                            (Dollars in millions)          
                                                                           
Fixed Maturities:                                                          
 Bonds:                                                                    
   U.S. corporates securities........ $ 41,552  $1,371   $  671   $ 42,252 
   Mortgage-backed securities........   24,579     839      190     25,228 
   Foreign corporate securities......   15,682     657      528     15,811 
   U.S. treasuries/agencies..........    7,923   1,007       42      8,888 
   Asset-backed securities...........    7,856     147      204      7,799 
   Foreign government securities.....    5,130     522       36      5,616 
   States and political subdivisions.    2,243      68       21      2,290 
   Other fixed income assets.........    1,881     284      211      1,954 
                                      --------   ------  ------   -------- 
     Total bonds.....................  106,846   4,895    1,903    109,838 
Redeemable preferred stocks..........      784      12       33        763 
                                      --------   ------  ------   -------- 
   Total fixed maturities............ $107,630  $4,907   $1,936   $110,601 
                                      ========   ======  ======   ======== 
Equity Securities:                                                         
 Common stocks....................... $  1,938  $  655   $   75   $  2,518 
 Nonredeemable preferred stocks......      483      28        2        509 
                                      --------   ------  ------   -------- 
   Total equity securities........... $  2,421  $  683   $   77   $  3,027 
                                      ========   ======  ======   ======== 

F-89  

485BPOS
253rd Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 253rd
METROPOLITAN LIFE INSURANCE COMPANY AND SUBSIDIARIES  

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(Continued) 

The Company held foreign currency derivatives with notional amounts of    
$2,372 million and $1,958 million to hedge the exchange rate risk associated    
with foreign bonds at December 31, 2002 and 2001, respectively.                 

The Company held fixed maturities at estimated fair values that were below
investment grade or not rated by an independent rating agency that totaled      
$10,731 million and $9,618 million at December 31, 2002 and 2001, respectively. 
Non-income producing fixed maturities were $395 million and $236 million at     
December 31, 2002 and 2001, respectively.                                       

  The cost or amortized cost and estimated fair value of bonds at December 31,
2002, by contractual maturity date (excluding scheduled sinking funds), are     
shown below:                                                                    

                                                                [Download Table]

                                             Cost or             
                                            Amortized  Estimated 
                                              Cost     Fair Value
                                            ---------  ----------
                                            (Dollars in millions)
                                                                 
Due in one year or less.................... $  3,702    $  3,765 
Due after one year through five years......   22,212      23,250 
Due after five years through ten years.....   20,504      21,985 
Due after ten years........................   32,044      34,772 
                                            --------    -------- 
   Subtotal................................   78,462      83,772 
Mortgage-backed and asset-backed securities   38,514      40,051 
                                            --------    -------- 
   Subtotal................................  116,976     123,823 
Redeemable preferred stock.................      805         702 
                                            --------    -------- 
   Total fixed maturities.................. $117,781    $124,525 
                                            ========    ======== 

Bonds not due at a single maturity date have been included in the above   
table in the year of final maturity. Actual maturities may differ from          
contractual maturities due to the exercise of prepayment options.               

Sales of fixed maturities and equity securities classified as             
available-for-sale were as follows:                                             

                                                                [Download Table]

                         Years ended December 31, 
                        ------------------------- 
                          2002     2001     2000  
                        -------  -------  ------- 
                          (Dollars in millions)   
                                                  
Proceeds............... $34,918  $27,576  $46,205 
Gross investment gains. $ 1,683  $   634  $   599 
Gross investment losses $  (973) $  (934) $(1,520)

 Gross investment losses above exclude writedowns recorded during 2002, 2001
and 2000 for other than temporarily impaired available-for-sale fixed           
maturities and equity securities of $1,342 million, $278 million and $324       
million, respectively.                                                          

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.     

Securities Lending Program                                                  

The Company participates in securities lending programs whereby blocks of 
securities, which are included in investments, are loaned to third parties,     
primarily major brokerage firms. The Company requires a minimum                 

F-90  

485BPOS
254th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 254th
METROPOLITAN LIFE INSURANCE COMPANY AND SUBSIDIARIES  

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(Continued) 

of 102% of the fair value of the loaned securities to be separately maintained  
as collateral for the loans. Securities with a cost or amortized cost of        
$13,477 million and $11,416 million and an estimated fair value of $16,120      
million and $12,066 million were on loan under the program at December 31, 2002 
and 2001, respectively. The Company was liable for cash collateral under its    
control of $16,321 million and $12,662 million at December 31, 2002 and 2001,   
respectively. Security collateral on deposit from customers may not be sold or  
repledged and is not reflected in the consolidated financial statements.        

Structured Investment Transactions                                          

The Company securitizes high yield debt securities, investment grade bonds
and structured finance securities. The Company has sponsored five               
securitizations with a total of approximately $1,719 million in financial       
assets as of December 31, 2002. Two of these transactions included the transfer 
of assets totaling approximately $289 million in 2001, resulting in the         
recognition of an insignificant amount of investment gains. The Company's       
beneficial interests in these SPEs as of December, 31, 2002 and 2001 and the    
related investment income for the years ended December 31, 2002, 2001 and 2000  
were insignificant.                                                             

The Company also invests in structured notes and similar type instruments,
which generally provide equity-based returns on debt securities. The carrying   
value of such investments was approximately $870 million and $1.6 billion at    
December 31, 2002 and 2001, respectively. The related income recognized was $1  
million, $44 million and $62 million for the years ended December 31, 2002,     
2001 and 2000, respectively.                                                    

Assets on Deposit and Held in Trust                                         

  The Company had investment assets on deposit with regulatory agencies with a
fair market value of $939 million and $835 million at December 31, 2002 and     
2001, respectively. Company securities held in trust to satisfy collateral      
requirements had an amortized cost of $1,430 million and $1,336 million at      
December 31, 2002 and 2001, respectively.                                       

Mortgage Loans on Real Estate                                               

Mortgage loans on real estate were categorized as follows:                

                                                                [Download Table]

                                     December 31,          
                            -------------------------------
                                 2002            2001      
                            --------------- ---------------
                            Amount  Percent Amount  Percent
                            ------- ------- ------- -------
                                 (Dollars in millions)     
                                                           
Commercial mortgage loans.. $20,433   80%   $19,503   79%  
Agricultural mortgage loans   5,042   20%     5,267   21%  
                            -------  ----   -------  ----  
   Total...................  25,475  100%    24,770  100%  
                            =======  ====   =======  ====  
Less: Valuation allowances.     122             144        
                            -------         -------        
   Mortgage loans.......... $25,353         $24,626        
                            =======         =======        

Mortgage loans on real estate are collateralized by properties primarily  
located throughout the United States. At December 31, 2002, approximately 18%,  
13% and 7% of the properties were located in California, New York and Florida,  
respectively. Generally, the Company (as the lender) requires that a minimum of 
one-fourth of the purchase price of the underlying real estate be paid by the   
borrower.                                                                       

Mortgage loans at December 31, 2002 and 2001 include $1,515 million and   
$1,530 million, respectively from MIAC, a related party, in connection with     
MIAC's purchase of real estate from the Company in 2001.                        

F-91  

485BPOS
255th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 255th
METROPOLITAN LIFE INSURANCE COMPANY AND SUBSIDIARIES  

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(Continued) 

  Certain of the Company's real estate joint ventures have mortgage loans with
the Company. The carrying values of such mortgages were $620 million and $644   
million at December 31, 2002 and 2001, respectively.                            

Changes in mortgage loan valuation allowances were as follows:            

                                                                [Download Table]

                                              Years ended       
                                             December 31,       
                                           -------------------- 
                                           2002    2001   2000  
                                           ----    ----   ----  
                                           (Dollars in millions)
                                                                
Balance at January 1...................... $144    $ 83   $ 90  
Additions.................................   39     106     38  
Deductions for writedowns and dispositions  (56)    (45)   (74) 
(Dispositions) acquisitions of affiliates.   (5)     --     29  
                                            ----   ----   ----  
Balance at December 31.................... $122    $144   $ 83  
                                            ====   ====   ====  

A portion of the Company's mortgage loans on real estate was impaired and 
consisted of the following:                                                     

                                                                [Download Table]

                                                     December 31,
                                                     ----------- 
                                                     2002   2001 
                                                     ----  ------
                                                     (Dollars in 
                                                      millions)  
                                                                 
Impaired mortgage loans with valuation allowances... $604  $  816
Impaired mortgage loans without valuation allowances  257     315
                                                     ----  ------
Total...............................................  861   1,131
Less: Valuation allowances on impaired mortgages....  121     140
                                                     ----  ------
   Impaired mortgage loans.......................... $740  $  991
                                                     ====  ======

 The average investment in impaired mortgage loans on real estate was $1,068
million, $938 million and $912 million for the years ended December 31, 2002,   
2001 and 2000, respectively. Interest income on impaired mortgage loans was $88 
million, $103 million and $80 million for the years ended December 31, 2002,    
2001 and 2000, respectively.                                                    

The investment in restructured mortgage loans on real estate was $410     
million and $684 million at December 31, 2002 and 2001, respectively. Interest  
income of $44 million, $76 million and $77 million was recognized on            
restructured loans for the years ended December 31, 2002, 2001 and 2000,        
respectively. Gross interest income that would have been recorded in accordance 
with the original terms of such loans amounted to $41 million, $60 million and  
$74 million for the years ended December 31, 2002, 2001 and 2000, respectively. 

Mortgage loans on real estate with scheduled payments of 60 days (90 days 
for agriculture mortgages) or more past due or in foreclosure had an amortized  
cost of $28 million and $43 million at December 31, 2002 and 2001, respectively.

F-92  

485BPOS
256th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 256th
METROPOLITAN LIFE INSURANCE COMPANY AND SUBSIDIARIES  

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(Continued) 

Real Estate and Real Estate Joint Ventures                                  

Real estate and real estate joint ventures consisted of the following:    

                                                                [Download Table]

                                                                December 31,  
                                                               -------------- 
                                                                2002    2001  
                                                               ------  ------ 
                                                                 (Dollars in  
                                                                  millions)   
                                                                              
Real estate and real estate joint ventures held-for-investment $3,808  $3,435 
Impairments...................................................   (188)   (157)
                                                               ------  ------ 
   Total......................................................  3,620   3,278 
                                                               ------  ------ 
Real estate held-for-sale.....................................    327   1,859 
Impairments...................................................    (82)   (177)
Valuation allowance...........................................    (16)    (35)
                                                               ------  ------ 
   Total......................................................    229   1,647 
                                                               ------  ------ 
       Real estate and real estate joint ventures............. $3,849  $4,925 
                                                               ======  ====== 

Accumulated depreciation on real estate was $1,319 million and $1,882     
million at December 31, 2002 and 2001, respectively. Related depreciation       
expense was $180 million, $217 million and $224 million for the years ended     
December 31, 2002, 2001 and 2000, respectively. These amounts include $48       
million, $79 million and $80 million of depreciation expense related to         
discontinued operations for the years ended December 31, 2002, 2001 and 2000,   
respectively.                                                                   

Real estate and real estate joint ventures were categorized as follows:   

                                                                [Download Table]

                    December 31,         
            -----------------------------
                 2002           2001     
            -------------- --------------
            Amount Percent Amount Percent
            ------ ------- ------ -------
                (Dollars in millions)    
                                         
Office..... $2,244   58%   $3,079   63%  
Retail.....    697   18%      779   16%  
Apartments.    454   12%      495   10%  
Land.......     87    2%      184    4%  
Agriculture      7    0%       14    0%  
Other......    360   10%      374    7%  
            ------  ----   ------  ----  
   Total... $3,849  100%   $4,925  100%  
            ======  ====   ======  ====  

F-93  

485BPOS
257th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 257th
METROPOLITAN LIFE INSURANCE COMPANY AND SUBSIDIARIES  

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(Continued) 

The Company's real estate holdings are primarily located throughout the   
United States. At December 31, 2002, approximately 26%, 23% and 16% of the      
Company's real estate holdings were located in California, New York and Texas,  
respectively.                                                                   

Changes in real estate and real estate joint ventures held-for-sale       
valuation allowance were as follows:                                            

                                                                [Download Table]

                                           Years ended December 31,
                                           ----------------------- 
                                           2002     2001    2000   
                                           ----     ----    ----   
                                           (Dollars in millions)   
                                                                   
Balance at January 1...................... $ 35     $ 39    $ 34   
Additions charged to operations...........   21       16      17   
Deductions for writedowns and dispositions  (40)     (20)    (12)  
                                            ----     ----    ----  
Balance at December 31.................... $ 16     $ 35    $ 39   
                                            ====     ====    ====  

Investment income related to impaired real estate and real estate joint   
ventures held-for-investment was $40 million, $22 million and $11 million for   
the years ended December 31, 2002, 2001 and 2000, respectively. Investment      
income related to impaired real estate held-for-sale was $11 million, $31       
million and $52 million for the years ended December 31, 2002, 2001 and 2000,   
respectively. The carrying value of non-income producing real estate and real   
estate joint ventures was $62 million and $9 million at December 31, 2002 and   
2001, respectively.                                                             

  The Company owned real estate acquired in satisfaction of debt of $8 million
and $49 million at December 31, 2002 and 2001, respectively.                    

Leveraged Leases                                                            

Leveraged leases, included in other invested assets, consisted of the     
following:                                                                      

                                                                [Download Table]

                           December 31,        
                          -------------------- 
                           2002       2001     
                           ------     ------   
                          (Dollars in millions)
                                               
Investment............... $  985     $1,070    
Estimated residual values    428        505    
                           ------     ------   
   Total.................  1,413      1,575    
Unearned income..........   (368)      (404)   
                           ------     ------   
   Leveraged leases...... $1,045     $1,171    
                           ======     ======   

The investment amounts set forth above are generally due in monthly       
installments. The payment periods generally range from two to 15 years, but in  
certain circumstances are as long as 30 years. These receivables are generally  
collateralized by the related property. The Company's deferred tax provision    
related to leveraged leases was $981 million and $1,077 million at December 31, 
2002 and 2001, respectively.                                                    

F-94  

485BPOS
258th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 258th
METROPOLITAN LIFE INSURANCE COMPANY AND SUBSIDIARIES  

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(Continued) 

Net Investment Income                                                       

The components of net investment income were as follows:                  

                                                                [Download Table]

                                                  Years ended December 31,
                                                  ----------------------- 
                                                   2002     2001    2000  
                                                  -------  ------- -------
                                                   (Dollars in millions)  
                                                                          
Fixed maturities................................. $ 7,861  $ 8,462 $ 8,529
Equity securities................................      25       48      41
Mortgage loans on real estate....................   1,840    1,838   1,693
Real estate and real estate joint ventures(1)....     756      910     990
Policy loans.....................................     512      527     515
Other limited partnership interests..............      57       48     142
Cash, cash equivalents and short-term investments     224      264     271
Other............................................     318      268     192
                                                  -------  ------- -------
   Total.........................................  11,593   12,365  12,373
Less: Investment expenses(1).....................     893    1,243   1,344
                                                  -------  ------- -------
   Net investment income......................... $10,700  $11,122 $11,029
                                                  =======  ======= =======

--------                                                                        
(1) Excludes amounts related to real estate held-for-sale presented as          
discontinued operations in accordance with SFAS 144.                    

Net Investment (Losses) Gains                                               

Net investment (losses) gains, including changes in valuation allowances, 
were as follows:                                                                

                                                                [Download Table]

                                              Years ended December 31,
                                              ----------------------  
                                               2002    2001     2000  
                                              -----   ------  ------- 
                                               (Dollars in millions)  
                                                                      
Fixed maturities............................. $(862)  $ (644) $(1,437)
Equity securities............................   230       66      192 
Mortgage loans on real estate................   (21)     (91)     (18)
Real estate and real estate joint ventures(1)    (6)   1,626      101 
Other limited partnership interests..........    (2)    (161)      (7)
Sales of businesses..........................    (7)      25      632 
Other........................................  (201)      73       65 
                                              -----   ------  ------- 
       Total.................................  (869)     894     (472)
Amounts allocable to:                                                 
   Deferred policy acquisition costs.........   (11)     (21)      95 
   Participating contracts...................    (7)    (105)    (126)
   Policyholder dividend obligation..........   157      159       85 
                                              -----   ------  ------- 
       Net investment (losses) gains......... $(730)  $  927  $  (418)
                                              =====   ======  ======= 

--------                                                                        
(1) The amount presented for the year ended December 31, 2002 excludes amounts  
related to sales of real estate held-for-sale presented as discontinued 
operations in accordance with SFAS 144.                                 

Investment gains and losses are net of related policyholder amounts. The  
amounts netted against investment gains and losses are (i) amortization of      
deferred policy acquisition costs to the extent that such amortization results  
from investment gains and losses, (ii) adjustments to participating             
contractholder accounts when amounts equal to such investment gains and losses  
are applied to the contractholder's accounts, and (iii) adjustments to the      

F-95  

485BPOS
259th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 259th
METROPOLITAN LIFE INSURANCE COMPANY AND SUBSIDIARIES  

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(Continued) 

policyholder dividend obligation resulting from investment gains and losses.    
This presentation may not be comparable to presentations made by other insurers.

Real estate and real estate joint ventures net investment gains for 2001  
include $1,630 million related to the sale of real estate to MIAC.              

Net Unrealized Investment Gains                                             

The components of net unrealized investment gains, included in accumulated
other comprehensive income, were as follows:                                    

                                                                [Download Table]

                                             Years ended December 31, 
                                            ------------------------- 
                                              2002     2001     2000  
                                            -------  -------  ------- 
                                              (Dollars in millions)   
                                                                      
Fixed maturities........................... $ 6,713  $ 2,971  $ 1,696 
Equity securities..........................      44      606      744 
Derivatives................................     (24)      71       -- 
Other invested assets......................       1       59       58 
                                            -------  -------  ------- 
       Total...............................   6,734    3,707    2,498 
                                            -------  -------  ------- 
Amounts allocable to:                                                 
   Future policy benefit loss recognition..  (1,242)     (30)    (284)
   Deferred policy acquisition costs.......    (366)      (6)     113 
   Participating contracts.................    (129)    (127)    (133)
   Policyholder dividend obligation........  (1,882)    (708)    (385)
Deferred income taxes......................  (1,124)  (1,037)    (626)
                                            -------  -------  ------- 
       Total...............................  (4,743)  (1,908)  (1,315)
                                            -------  -------  ------- 
       Net unrealized investment gains..... $ 1,991  $ 1,799  $ 1,183 
                                            =======  =======  ======= 

The changes in net unrealized investment gains were as follows:           

                                                        [Enlarge/Download Table]

                                                                      Years ended December 31,
                                                                      ----------------------- 
                                                                        2002    2001    2000  
                                                                      -------  ------  ------ 
                                                                       (Dollars in millions)  
                                                                                              
Balance at January 1................................................. $ 1,799  $1,183  $ (297)
Unrealized investment gains during the year..........................   2,803   1,391   3,298 
Unrealized investment (losses) gains relating to:                                             
   Future policy benefit (loss) gain recognition.....................  (1,212)    254     (35)
   Deferred policy acquisition costs.................................    (204)   (128)   (596)
   Participating contracts...........................................      (2)      6     (15)
   Policyholder dividend obligation..................................  (1,174)   (323)   (385)
Deferred income taxes................................................     (72)   (475)   (787)
Unrealized investment gains (losses) of subsidiaries at date of sale,                         
  net of deferred income taxes.......................................      53    (109)     -- 
                                                                      -------  ------  ------ 
Balance at December 31............................................... $ 1,991  $1,799  $1,183 
                                                                      =======  ======  ====== 
Net change in unrealized investment gains............................ $   192  $  616  $1,480 
                                                                      =======  ======  ====== 

F-96  

485BPOS
260th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 260th
METROPOLITAN LIFE INSURANCE COMPANY AND SUBSIDIARIES  

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(Continued) 

4.  Derivative Instruments                                                      

 The table below provides a summary of the notional amount and fair value of
derivative financial instruments held at December 31, 2002 and 2001:            

                                                        [Enlarge/Download Table]

                                             2002                        2001            
                                  --------------------------- ---------------------------
                                           Current Market or             Current Market  
                                               Fair Value                or Fair Value   
                                  Notional ------------------ Notional ------------------
                                   Amount  Assets Liabilities  Amount  Assets Liabilities
                                  -------- ------ ----------- -------- ------ -----------
                                                                                         
Financial futures................ $     4   $ --     $ --     $    --   $ --      $--    
Interest rate swaps..............   3,866    196      126       1,823     73        9    
Floors...........................     325      9       --         325     11       --    
Caps.............................   7,770     --       --       8,010      5       --    
Financial forwards...............   1,870     --       12          --     --       --    
Foreign currency swaps...........   2,371     92      181       1,925    188       26    
Options..........................      78      9       --       1,880      8       12    
Foreign currency forwards........       1     --       --          33      4       --    
Written covered calls............      --     --       --          40     --       --    
Credit default swaps.............     376      2       --         270     --       --    
                                  -------   ----     ----     -------   ----      ---    
   Total contractual commitments. $16,661   $308     $319     $14,306   $289      $47    
                                  =======   ====     ====     =======   ====      ===    

  The following is a reconciliation of the notional amounts by derivative type
and strategy at December 31, 2002 and 2001:                                     

                                                        [Enlarge/Download Table]

                                  December 31, 2001           Terminations/ December 31, 2002
                                   Notional Amount  Additions  Maturities    Notional Amount 
                                  ----------------- --------- ------------- -----------------
                                                     (Dollars in millions)                   
                                                                                             
BY DERIVATIVE TYPE                                                                           
Financial futures................      $    --       $   760     $  756          $     4     
Interest rate swaps..............        1,823         3,005        962            3,866     
Floors...........................          325            --         --              325     
Caps.............................        8,010         3,750      3,990            7,770     
Financial forwards...............           --         2,870      1,000            1,870     
Foreign currency swaps...........        1,925           760        314            2,371     
Options..........................        1,880            55      1,857               78     
Foreign currency forwards........           33             1         33                1     
Written covered calls............           40            --         40               --     
Credit default swaps.............          270           121         15              376     
                                       -------       -------     ------          -------     
   Total contractual commitments.      $14,306       $11,322     $8,967          $16,661     
                                       =======       =======     ======          =======     
BY DERIVATIVE STRATEGY                                                                       
Liability hedging................        9,008         3,817      4,142            8,683     
Invested asset hedging...........        4,768         4,488      3,972            5,284     
Portfolio hedging................          530         2,104         --            2,634     
Forecasted transaction hedging...           --           913        853               60     
                                       -------       -------     ------          -------     
   Total contractual commitments.      $14,306       $11,322     $8,967          $16,661     
                                       =======       =======     ======          =======     

F-97  

485BPOS
261st Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 261st
METROPOLITAN LIFE INSURANCE COMPANY AND SUBSIDIARIES  

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(Continued) 

The following table presents the notional amounts of derivative financial 
instruments by maturity at December 31, 2002:                                   

                                                        [Enlarge/Download Table]

                                                     Remaining Life                            
                          ---------------------------------------------------------------------
                          One Year   After One Year   After Five Years                         
                          or Less  Through Five Years Through Ten Years After Ten Years  Total 
                          -------- ------------------ ----------------- --------------- -------
                                                  (Dollars in millions)                        
                                                                                               
Financial futures........  $    4        $   --            $   --            $ --       $     4
Interest rate swaps......      64         1,887             1,630             285         3,866
Floors...................      --            --               325              --           325
Caps.....................   1,000         6,770                --              --         7,770
Financial forwards.......   1,870            --                --              --         1,870
Foreign currency swaps...      88           962               851             470         2,371
Options..................       3            20                --              55            78
Foreign currency forwards      --             1                --              --             1
Written covered calls....      --            --                --              --            --
Credit default swaps.....      45           331                --              --           376
                           ------        ------            ------            ----       -------
   Total contractual                                                                           
     commitments.........  $3,074        $9,971            $2,806            $810       $16,661
                           ======        ======            ======            ====       =======

The following table presents the notional amounts and fair values of      
derivatives by type of hedge designation at December 31, 2002 and 2001:         

                                                                [Download Table]

                            2002                        2001            
                 --------------------------- ---------------------------
                              Fair Value                  Fair Value    
                 Notional ------------------ Notional ------------------
                  Amount  Assets Liabilities  Amount  Assets Liabilities
                 -------- ------ ----------- -------- ------ -----------
                                  (Dollars in millions)                 
                                                                        
BY TYPE OF HEDGE                                                        
Fair value...... $   418   $ --     $ 64     $    --   $ --      $--    
Cash flow.......   3,445     69       72         607     61        1    
Non qualifying..  12,798    239      183      13,699    228       46    
                 -------   ----     ----     -------   ----      ---    
   Total........ $16,661   $308     $319     $14,306   $289      $47    
                 =======   ====     ====     =======   ====      ===    

  For the years ended December 2002, 2001 and 2000, the Company recognized net
investment income of $23 million, $32 million and $13 million, respectively,    
from the periodic settlement of interest rate and foreign currency swaps.       

 During the year ended December 31, 2002, the Company recognized $30 million
in net investment losses related to qualifying fair value hedges. Accordingly,  
$34 million of unrealized gains on fair value hedged investments were           
recognized in net investment gains and losses. There were no derivatives        
designated as fair value hedges during the year ended December 31, 2001. There  
were no discontinued hedges during the year ended December 31, 2002.            

For the years ended December 31, 2002 and 2001, the amounts accumulated in
other comprehensive income relating to cash flow hedges were losses of $24      
million and gains of $71 million, respectively. During the year ended December  
31, 2002, the Company recognized other comprehensive losses of $142 million     
relating to the effective portion of cash flow hedges. During the year ended    
December 31, 2002, $10 million of other comprehensive income and $57 million of 
other comprehensive losses were reclassified into net investment                

F-98  

485BPOS
262nd Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 262nd
METROPOLITAN LIFE INSURANCE COMPANY AND SUBSIDIARIES  

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(Continued) 

income and net investment losses, respectively. During the year ended December  
31, 2001, $19 million of other comprehensive income was reclassified into net   
investment income due to the SFAS No. 133 transition adjustment. Approximately  
$6 million and $12 million of the losses reported in accumulated other          
comprehensive income at December 31, 2002 are expected to be reclassified       
during the year ending December 31, 2003 into net investment income and net     
investment gains and losses, respectively, as the underlying investments mature 
or expire according to their original terms.                                    

For the years ended December 31, 2002 and 2001, the Company recognized net
investment income of $32 million and $24 million, respectively, and net         
investment losses of $172 million and net investment gains of $100 million,     
respectively, from derivatives not qualifying as accounting hedges. The use of  
these non-speculative derivatives is permitted by the Department.               

5.  Fair Value Information                                                      

The estimated fair values 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.   

Amounts related to the Company's financial instruments were as follows:   

                                                        [Enlarge/Download Table]

                                                                      Notional Carrying Estimated 
December 31, 2002                                                      Amount   Value   Fair Value
-----------------                                                     -------- -------- ----------
                                                                         (Dollars in millions)    
                                                                                                  
Assets:                                                                                           
   Fixed maturities..................................................          $124,525  $124,525 
   Equity securities.................................................          $  1,286  $  1,286 
   Mortgage loans on real estate.....................................          $ 25,353  $ 27,935 
   Policy loans......................................................          $  8,047  $  8,047 
   Short-term investments............................................          $  1,199  $  1,199 
   Cash and cash equivalents.........................................          $  1,106  $  1,106 
   Mortgage loan commitments.........................................  $  859  $     --  $     12 
   Commitments to fund partnership investments.......................  $1,667  $     --  $     -- 
Liabilities:                                                                                      
   Policyholder account balances.....................................          $ 34,706  $ 35,063 
   Short-term debt...................................................          $    912  $    912 
   Long-term debt....................................................          $  2,624  $  2,794 
   Payable under securities loaned transactions......................          $ 16,321  $ 16,321 
Other:                                                                                            
   Company-obligated mandatorily redeemable securities of subsidiary                              
     trusts..........................................................          $    277  $    310 

F-99  

485BPOS
263rd Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 263rd
METROPOLITAN LIFE INSURANCE COMPANY AND SUBSIDIARIES  

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(Continued) 

                                                        [Enlarge/Download Table]

                                                                      Notional Carrying Estimated 
December 31, 2001                                                      Amount   Value   Fair Value
-----------------                                                     -------- -------- ----------
                                                                         (Dollars in millions)    
                                                                                                  
Assets:                                                                                           
   Fixed maturities..................................................          $110,601  $110,601 
   Equity securities.................................................          $  3,027  $  3,027 
   Mortgage loans on real estate.....................................          $ 24,626  $ 25,815 
   Policy loans......................................................          $  7,894  $  7,894 
   Short-term investments............................................          $  1,168  $  1,168 
   Cash and cash equivalents.........................................          $  3,932  $  3,932 
   Mortgage loan commitments.........................................  $  532  $     --  $     (4)
   Commitments to fund partnership investments.......................  $1,898  $     --  $     -- 
Liabilities:                                                                                      
   Policyholder account balances.....................................          $ 47,494  $ 47,833 
   Short-term debt...................................................          $    345  $    345 
   Long-term debt....................................................          $  2,380  $  2,442 
   Payable under securities loaned transactions......................          $ 12,662  $ 12,662 
Other:                                                                                            
   Company-obligated mandatorily redeemable securities of subsidiary                              
     trusts..........................................................          $    276  $    276 

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.                                                                    

Mortgage Loans on Real Estate, Mortgage Loan Commitments and Commitments to 
Fund Partnership Agreements                                                 

Fair values for mortgage loans on real estate are estimated by discounting
expected future cash flows, using current interest rates for similar loans with 
similar credit risk. For mortgage loan commitments, the estimated fair value is 
the net premium or discount of the commitments. Commitments to fund partnership 
agreements have no stated interest rate and are assumed to have a fair value of 
zero.                                                                           

Policy Loans                                                                

The carrying values for policy loans approximate fair value.              

Cash and Cash Equivalents and Short-term Investments                        

  The carrying values for cash and cash equivalents and short-term investments
approximated fair 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 upon interest rates currently being offered   
for similar contracts with maturities consistent with those remaining for the   
agreements being valued.                                                        

F-100 

485BPOS
264th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 264th
METROPOLITAN LIFE INSURANCE COMPANY AND SUBSIDIARIES  

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(Continued) 

Short-term and Long-term Debt, Payables Under Securities Loaned Transactions
and Company-Obligated Mandatorily Redeemable Securities of Subsidiary Trusts

 The fair values of short-term and long-term debt, payables under securities
loaned transactions and Company-obligated mandatorily redeemable securities of  
subsidiary trusts are determined by discounting expected future cash flows,     
using risk rates currently available for debt with similar terms and remaining  
maturities.                                                                     

Derivative Instruments                                                      

The fair value of derivative instruments, including financial futures,    
financial forwards, interest rate, credit default and foreign currency swaps,   
floors, foreign currency forwards, caps, floors, options and written covered    
calls are based upon quotations obtained from dealers or other reliable         
sources. See Note 4 for derivative fair value disclosures.                      

F-101 

485BPOS
265th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 265th
METROPOLITAN LIFE INSURANCE COMPANY AND SUBSIDIARIES  

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(Continued) 

6.  Employee Benefit Plans                                                      

Pension Benefit and Other Benefit Plans                                     

  The Company is both the sponsor and administrator of defined benefit pension
plans covering eligible employees and sales representatives of the Company.     
Retirement benefits are based upon years of credited service and final average  
earnings history.                                                               

The Company also provides certain postemployment benefits and certain     
postretirement health care and life insurance benefits for retired employees    
through insurance contracts. Substantially all of the Company's employees may,  
in accordance with the plans applicable to the postretirement benefits, become  
eligible for these benefits if they attain retirement age, with sufficient      
service, while working for the Company.                                         

                                                                [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. $4,426   $4,145  $1,669  $1,542 
   Service cost....................................    104      104      36      34 
   Interest cost...................................    307      308     123     115 
   Acquisitions and divestitures...................   (110)     (12)     --      -- 
   Actuarial losses................................    307      169     342      66 
   Curtailments and terminations...................     (3)     (49)     (2)      9 
   Change in benefits..............................     --       29    (168)     -- 
   Benefits paid...................................   (284)    (268)   (122)    (97)
                                                    ------   ------  ------  ------ 
 Projected benefit obligation at end of year.......  4,747    4,426   1,878   1,669 
                                                    ------   ------  ------  ------ 
Change in plan assets:                                                              
 Contract value of plan assets at beginning of year  4,161    4,619   1,169   1,318 
   Actual return on plan assets....................   (185)    (201)    (92)    (49)
   Acquisitions and divestitures...................   (110)     (12)     --      -- 
   Employer and participant contributions..........    426       23       1       1 
   Benefits paid...................................   (284)    (268)   (113)   (101)
                                                    ------   ------  ------  ------ 
 Contract value of plan assets at end of year......  4,008    4,161     965   1,169 
                                                    ------   ------  ------  ------ 
Under funded.......................................   (739)    (265)   (913)   (500)
Unrecognized net actuarial losses (gains)..........  1,507      693     262    (258)
Unrecognized prior service cost (credit)...........    101      116    (208)    (49)
                                                    ------   ------  ------  ------ 
Prepaid benefit (accrued) cost..................... $  869   $  544  $ (859) $ (807)
                                                    ======   ======  ======  ====== 
Qualified plan prepaid pension cost................ $1,164   $  805                 
Non-qualified plan accrued pension cost............   (341)    (323)                
Unamortized prior service cost.....................     --       16                 
Accumulated other comprehensive loss...............     46       46                 
                                                    ------   ------                 
Prepaid benefit cost............................... $  869   $  544                 
                                                    ======   ======                 

F-102 

485BPOS
266th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 266th
METROPOLITAN LIFE INSURANCE COMPANY AND SUBSIDIARIES  

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(Continued) 

The aggregate projected benefit obligation and aggregate contract value of
plan assets for the pension plans were as follows:                              

                                                        [Enlarge/Download Table]

                                         Qualified Plan   Non-Qualified Plan       Total      
                                        ----------------  -----------------  ---------------- 
                                          2002     2001    2002      2001      2002     2001  
                                        -------  -------   -----     -----   -------  ------- 
                                                      (Dollars in millions)                   
                                                                                              
Aggregate projected benefit                                                                   
  obligation........................... $(4,273) $(4,006) $(474)    $(420)   $(4,747) $(4,426)
Aggregate contract value of plan assets                                                       
  (principally Company contracts)......   4,008    4,161     --        --      4,008    4,161 
                                        -------  -------   -----     -----   -------  ------- 
(Under) over funded.................... $  (265) $   155  $(474)    $(420)   $  (739) $  (265)
                                        =======  =======   =====     =====   =======  ======= 

The assumptions used in determining the aggregate projected benefit       
obligation and aggregate contract value for the pension and other benefits were 
as follows:                                                                     

                                                                [Download Table]

                                             Pension Benefits   Other Benefits  
                                             ---------------- ------------------
                                              2002    2001       2002     2001  
                                             ------ --------- ---------- -------
                                                    (Dollars in millions)       
                                                                                
Weighted average assumptions at December 31:                                    
   Discount rate............................ 6.75%  6.9%-7.4% 6.5%-7.25% 6%-7.4%
   Expected rate of return on plan assets...  8%-9%   8%-9%    5.2%-9%    6%-9% 
   Rate of compensation increase............ 4%-6%    4%-6%      N/A       N/A  

The assumed health care cost trend rates used in measuring the accumulated
nonpension postretirement benefit obligation were as follows:                   

                                                                [Download Table]

                                              December 31,                  
                             -----------------------------------------------
                                      2002                    2001          
                             ---------------------- ------------------------
                                                                            
Pre-Medicare eligible claims 9% down to 5% in 2010  9.5% down to 5% in 2010 
Medicare eligible claims.... 11% down to 5% in 2014 11.5% down to 5% in 2014

Assumed health care cost trend rates may 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 the following effects:          

                                                                [Download Table]

                                                        One Percent One Percent
                                                         Increase    Decrease  
                                                        ----------- -----------
                                                         (Dollars in millions) 
                                                                               
Effect on total of service and interest cost components     $10         $10    
Effect on accumulated postretirement benefit obligation     $90         $88    

The components of net periodic benefit cost were as follows:              

                                                        [Enlarge/Download Table]

                                                 Pension Benefits     Other Benefits  
                                               -------------------  ----------------- 
                                                2002   2001   2000  2002   2001  2000 
                                               -----  -----  -----  ----  -----  ---- 
                                                        (Dollars in millions)         
                                                                                      
Service cost.................................. $ 104  $ 104  $  98  $ 36  $  34  $ 29 
Interest cost.................................   307    308    291   123    115   113 
Expected return on plan assets................  (354)  (402)  (420)  (93)  (108)  (97)
Amortization of prior actuarial losses (gains)    33     (2)   (19)   (9)   (27)  (22)
Curtailment cost (credit).....................    11     21     (3)    4      6     2 
                                               -----  -----  -----  ----  -----  ---- 
Net periodic benefit cost (credit)............ $ 101  $  29  $ (53) $ 61  $  20  $ 25 
                                               =====  =====  =====  ====  =====  ==== 

F-103 

485BPOS
267th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 267th
METROPOLITAN LIFE INSURANCE COMPANY AND SUBSIDIARIES  

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(Continued) 

Savings and Investment Plans                                                

The Company sponsors savings and investment plans for substantially all   
employees under which the Company matches a portion of employee contributions.  
The Company contributed $49 million, $55 million and $65 million for the years  
ended December 31, 2002, 2001 and 2000, respectively.                           

7.  Closed Block                                                                

  On the date of demutualization, Metropolitan Life established a closed block
for the benefit of holders of certain individual life insurance policies of     
Metropolitan Life. Assets have been allocated to the closed block in an amount  
that has been determined to produce cash flows which, together with anticipated 
revenues from the policies included in the closed block, are reasonably         
expected to be sufficient to support obligations and liabilities relating to    
these policies, including, but not limited to, provisions for the payment of    
claims and certain expenses and taxes, and to provide for the continuation of   
policyholder dividend scales in effect for 1999, if the experience underlying   
such dividend scales continues, and for appropriate adjustments in such scales  
if the experience changes. At least annually, the Company compares actual and   
projected experience against the experience assumed in the then-current         
dividend scales. Dividend scales are adjusted periodically to give effect to    
changes in experience.                                                          

  The closed block assets, the cash flows generated by the closed block assets
and the anticipated revenues from the policies in the closed block will benefit 
only the holders of the policies in the closed block. To the extent that, over  
time, cash flows from the assets allocated to the closed block and claims and   
other experience related to the closed block are, in the aggregate, more or     
less favorable than what was assumed when the closed block was established,     
total dividends paid to closed block policyholders in the future may be greater 
than or less than the total dividends that would have been paid to these        
policyholders if the policyholder dividend scales in effect for 1999 had been   
continued. Any cash flows in excess of amounts assumed will be available for    
distribution over time to closed block policyholders and will not be available  
to stockholders. If the closed block has insufficient funds to make guaranteed  
policy benefit payments, such payments will be made from assets outside of the  
closed block. The closed block will continue in effect as long as any policy in 
the closed block remains in-force. The expected life of the closed block is     
over 100 years.                                                                 

The Company uses the same accounting principles to account for the        
participating policies included in the closed block as it used prior to the     
date of demutualization. However, the Company establishes a policyholder        
dividend obligation for earnings that will be paid to policyholders as          
additional dividends as described below. The excess of closed block liabilities 
over closed block assets at the effective date of the demutualization (adjusted 
to eliminate the impact of related amounts in accumulated other comprehensive   
income) represents the estimated maximum future earnings from the closed block  
expected to result from operations attributed to the closed block after income  
taxes. Earnings of the closed block are recognized in income over the period    
the policies and contracts in the closed block remain in-force. Management      
believes that over time the actual cumulative earnings of the closed block will 
approximately equal the expected cumulative earnings due to the effect of       
dividend changes. If, over the period the closed block remains in existence,    
the actual cumulative earnings of the closed block is greater than the expected 
cumulative earnings of the closed block, the Company will pay the excess of the 
actual cumulative earnings of the closed block over the expected cumulative     
earnings to closed block policyholders as additional policyholder dividends     
unless offset by future unfavorable experience of the closed block and,         
accordingly, will recognize only the expected cumulative earnings in income     
with the excess recorded as a policyholder dividend obligation. If over such    
period, the actual cumulative earnings of the closed block is less than the     
expected cumulative earnings of the closed block, the Company will recognize    
only the actual earnings in income. However, the Company may change             
policyholder dividend scales in the future, which would be intended to increase 
future actual earnings until the actual cumulative earnings equal the           

F-104 

485BPOS
268th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 268th
METROPOLITAN LIFE INSURANCE COMPANY AND SUBSIDIARIES  

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(Continued) 

expected cumulative earnings. Amounts reported for the period after             
demutualization are as of April 1, 2000 and for the period beginning on April   
1, 2000 (the effect of transaction from April 1, 2000 through April 6, 2000 is  
not considered material).                                                       

Closed block liabilities and assets designated to the closed block are as 
follows:                                                                        

                                                        [Enlarge/Download Table]

                                                                                               December 31,       
                                                                                             -------------------- 
                                                                                               2002       2001    
                                                                                              -------    -------  
                                                                                             (Dollars in millions)
                                                                                                                  
CLOSED BLOCK LIABILITIES                                                                                          
Future policy benefits...................................................................... $41,207    $40,325   
Other policyholder funds....................................................................     279        321   
Policyholder dividends payable..............................................................     719        757   
Policyholder dividend obligation............................................................   1,882        708   
Payables under securities loaned transactions...............................................   4,851      3,350   
Other liabilities...........................................................................     433         90   
                                                                                              -------    -------  
       Total closed block liabilities.......................................................  49,371     45,551   
                                                                                              -------    -------  
ASSETS DESIGNATED TO THE CLOSED BLOCK                                                                             
Investments:                                                                                                      
   Fixed maturities available-for-sale, at fair value (amortized cost: $28,334 and $25,761,                       
     respectively)..........................................................................  29,981     26,331   
   Equity securities, at fair value (amortized cost: $236 and $240, respectively)...........     218        282   
   Mortgage loans on real estate............................................................   7,032      6,358   
   Policy loans.............................................................................   3,988      3,898   
   Short-term investments...................................................................      24        170   
   Other invested assets....................................................................     604        159   
                                                                                              -------    -------  
       Total investments....................................................................  41,847     37,198   
Cash and cash equivalents...................................................................     435      1,119   
Accrued investment income...................................................................     540        550   
Deferred income taxes.......................................................................   1,151      1,060   
Premiums and other receivables..............................................................     130        244   
                                                                                              -------    -------  
       Total assets designated to the closed block..........................................  44,103     40,171   
                                                                                              -------    -------  
Excess of closed block liabilities over assets designated to the closed block...............   5,268      5,380   
                                                                                              -------    -------  
Amounts included in accumulated other comprehensive loss:                                                         
   Net unrealized investment gains, net of deferred income tax of $577 and $219,                                  
     respectively...........................................................................   1,047        389   
   Unrealized derivative gains, net of deferred income tax of $7 and $9, respectively.......      13         17   
   Allocated to policyholder dividend obligation, net of deferred income tax of $668 and                          
     $255, respectively.....................................................................  (1,214)      (453)  
                                                                                              -------    -------  
                                                                                                (154)       (47)  
                                                                                              -------    -------  
Maximum future earnings to be recognized from closed block assets and liabilities........... $ 5,114    $ 5,333   
                                                                                              =======    =======  

F-105 

485BPOS
269th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 269th
METROPOLITAN LIFE INSURANCE COMPANY AND SUBSIDIARIES  

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(Continued) 

Information regarding the policyholder dividend obligation is as follows: 

                                                        [Enlarge/Download Table]


                                                                                      For the period
                                                                        Years ended   April 7, 2000 
                                                                        December 31,     through    
                                                                       -------------   December 31, 
                                                                        2002    2001       2000     
                                                                       ------  -----  --------------
                                                                           (Dollars in millions)    
                                                                                                    
Balance at beginning of period........................................ $  708  $ 385       $ --     
Impact on net income before amounts allocable to policyholder dividend                              
  obligation..........................................................    157    159         85     
Net investment losses.................................................   (157)  (159)       (85)    
Change in unrealized investment and derivative gains..................  1,174    323        385     
                                                                       ------  -----       ----     
Balance at end of period.............................................. $1,882  $ 708       $385     
                                                                       ======  =====       ====     

Closed block revenues and expenses were as follows:                       

                                                        [Enlarge/Download Table]

                                                                                             For the period
                                                                               Years ended   April 7, 2000 
                                                                               December 31,     through    
                                                                              -------------   December 31, 
                                                                               2002   2001        2000     
                                                                              ------ ------  --------------
                                                                                  (Dollars in millions)    
                                                                                                           
REVENUES                                                                                                   
Premiums..................................................................... $3,551 $3,658      $2,900    
Net investment income and other revenues.....................................  2,568  2,555       1,789    
Net investment gains (losses) (net of amounts allocable to the policyholder                                
  dividend obligation of $(157), $(159) and $(85), respectively).............    168    (20)       (150)   
                                                                              ------ ------      ------    
   Total revenues............................................................  6,287  6,193       4,539    
                                                                              ------ ------      ------    
EXPENSES                                                                                                   
Policyholder benefits and claims.............................................  3,770  3,862       2,874    
Policyholder dividends.......................................................  1,573  1,544       1,132    
Change in policyholder dividend obligation (excludes amounts directly related                              
  to net investment losses of $(157), $(159) and $(85), respectively)........    157    159          85    
Other expenses...............................................................    310    352         265    
                                                                              ------ ------      ------    
   Total expenses............................................................  5,810  5,917       4,356    
                                                                              ------ ------      ------    
Revenues net of expenses before income taxes.................................    477    276         183    
Income taxes.................................................................    173     97          67    
                                                                              ------ ------      ------    
Revenues net of expenses and income taxes.................................... $  304 $  179      $  116    
                                                                              ====== ======      ======    

F-106 

485BPOS
270th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 270th
METROPOLITAN LIFE INSURANCE COMPANY AND SUBSIDIARIES  

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(Continued) 

The change in maximum future earnings of the closed block was as follows: 

                                                                [Download Table]

                                                   For the period
                                     Years ended   April 7, 2000 
                                    December 31,      through    
                                   --------------   December 31, 
                                    2002    2001        2000     
                                   ------  ------  --------------
                                       (Dollars in millions)     
                                                                 
Balance at the end of period...... $5,114  $5,333      $5,512    
Less:                                                            
   Reallocation of assets.........     85      --          --    
   Balance at beginning of period.  5,333   5,512       5,628    
                                   ------  ------      ------    
Change during period.............. $ (304) $ (179)     $ (116)   
                                   ======  ======      ======    

During the year ended December 31, 2002, the allocation of assets to the  
closed block was revised to appropriately classify assets in accordance with    
the plan of demutualization. The reallocation of assets had no impact on        
consolidated assets or liabilities.                                             

 Metropolitan Life charges the closed block with Federal income taxes, state
and local premium taxes, and other additive state or local taxes, as well as    
investment management expenses relating to the closed block as provided in the  
plan of demutualization. Metropolitan Life also charges the closed block for    
expenses of maintaining the policies included in the closed block.              

Many of the derivative instrument strategies used by the Company are also 
used for the closed block. The table below provides a summary of the notional   
amount and fair value of derivatives by hedge accounting classification at:     

                                                                [Download Table]

                      December 31, 2002           December 31, 2001     
                 --------------------------- ---------------------------
                              Fair Value                  Fair Value    
                 Notional ------------------ Carrying ------------------
                  Amount  Assets Liabilities  Value   Assets Liabilities
                 -------- ------ ----------- -------- ------ -----------
                                  (Dollars in millions)                 
                                                                        
By Type of Hedge                                                        
Fair value......   $ --    $--       $--       $ --    $--       $--    
Cash flow.......    128      2        11        171     22        --    
Non-qualifying..    258     32         2        112     13         5    
                   ----    ---       ---       ----    ---       ---    
   Total........   $386    $34       $13       $283    $35       $ 5    
                   ====    ===       ===       ====    ===       ===    

The amounts accumulated in other comprehensive loss relating to cash flow 
hedges were gains of $21 million for both the years ended December 31, 2002 and 
2001. During the year ended December 31, 2002, the Company recognized other     
comprehensive gains of $4 million relating to the effective portion of cash     
flow hedges. Reclassifications are recognized over the life of the hedged item. 
During the year ended December 31, 2002, $4 million of other comprehensive loss 
was reclassified into net investment income. Approximately $3 million of the    
gains reported in accumulated other comprehensive loss is expected to be        
reclassified into net investment income during the year ending December 31,     
2003, as the underlying investments mature or expire according to their         
original terms.                                                                 

For the years ended December 31, 2002 and 2001, the Company recognized net
investment losses of $11 million and net investment gains of $5 million,        
respectively, from derivatives not qualifying as accounting hedges. The use of  
these non-speculative derivatives is permitted by the Department.               

F-107 

485BPOS
271st Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 271st
METROPOLITAN LIFE INSURANCE COMPANY AND SUBSIDIARIES  

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(Continued) 

The cumulative effect of the adoption of SFAS 133, as of January 1, 2001, 
resulted in $11 million of other comprehensive income, net of income taxes of   
$6 million.                                                                     

8.  Separate Accounts                                                           

Separate accounts include two categories of account types: non-guaranteed 
separate accounts totaling $39,157 million and $48,912 million at December 31,  
2002 and 2001, respectively, for which the policyholder assumes the investment  
risk, and guaranteed separate accounts totaling $14,755 million and $13,802     
million at December 31, 2002 and 2001, respectively, for which the Company      
contractually guarantees either a minimum return or account value to the        
policyholder.                                                                   

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 $463 million, $564 million and $667 million for the years ended     
December 31, 2002, 2001 and 2000, respectively. Guaranteed separate accounts    
consisted primarily of Met Managed Guaranteed Interest Contracts and            
participating close out contracts. The average interest rates credited on these 
contracts were 4.8% and 7.0% at December 31, 2002 and 2001, respectively. The   
assets that support these liabilities were comprised of $12,531 million and     
$11,888 million in fixed maturities at December 31, 2002 and 2001,              
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 early withdrawals to invest in instruments yielding a higher return,    
these investment products carry a graded surrender charge as well as a market   
value adjustment.                                                               

9.  Debt                                                                        

Debt consisted of the following:                                          

                                                        [Enlarge/Download Table]

                                                                                  December 31, 
                                                                                  -------------
                                                                                   2002   2001 
                                                                                  ------ ------
                                                                                   (Dollars in 
                                                                                    millions)  
                                                                                               
Surplus notes, interest rates ranging from 6.30% to 7.88%, maturity dates ranging              
  from 2003 to 2025.............................................................. $1,632 $1,630
Capital notes payable to the Holding Company, interest rate of 7.13%, maturity                 
  dates ranging from 2032 to 2033................................................    500     --
Senior notes, interest rates ranging from 6.75% to 7.25%, maturity dates ranging               
  from 2006 to 2011..............................................................    298    298
Investment related exchangeable debt, interest rate of 4.90%.....................     --    195
Fixed rate notes, interest rates ranging from 4.39% to 12.00%, maturity dates                  
  ranging from 2005 to 2019......................................................     33     87
Capital lease obligations........................................................     21     23
Other notes with varying interest rates..........................................    140    147
                                                                                  ------ ------
Total long-term debt.............................................................  2,624  2,380
Total short-term debt............................................................    912    345
                                                                                  ------ ------
   Total......................................................................... $3,536 $2,725
                                                                                  ====== ======

 The Company maintains committed and unsecured credit facilities aggregating
$2,434 million ($1,140 million expiring in 2003 and $1,294 million expiring in  
2005). If these facilities were drawn upon, they would bear interest at rates   
stated in the agreements. The facilities can be used for general corporate      
purposes and also                                                               

F-108 

485BPOS
272nd Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 272nd
METROPOLITAN LIFE INSURANCE COMPANY AND SUBSIDIARIES  

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(Continued) 

provide support for the Company's commercial paper program. At December 31,     
2002, the Company had drawn approximately $28 million under the facilities      
expiring in 2005 at interest rates ranging from 4.39% to 5.57%. At December 31, 
2002, the Company had approximately $508 million in letters of credit from      
various banks.                                                                  

  Payments of interest and principal on the surplus notes, subordinated to all
other indebtedness, may be made only with the prior approval of the insurance   
department of the state of domicile. Subject to the prior approval of the       
Superintendent, the $300 million 7.45% surplus notes due 2023 may be redeemed,  
in whole or in part, at the election of Metropolitan Life at any time on or     
after November 1, 2003 and, if redeemed prior to November 2013, would include a 
premium.                                                                        

  The investment-related exchangeable debt instrument is payable in cash or by
delivery of an underlying security owned by the Company. The amount of the debt 
payable at maturity is greater than the principal of the debt if the market     
value of the underlying security appreciates above certain levels at the date   
of debt repayment as compared to the market value of the underlying security at 
the date of debt issuance. At December 31, 2001, the underlying security        
pledged as collateral had a market value of $240 million.                       

 The aggregate maturities of long-term debt for the Company are $405 million
in 2003, $9 million in 2004, $392 million in 2005, $100 million in 2006, $4     
million in 2007 and $1,714 million thereafter.                                  

  Short-term debt of the Company consisted of commercial paper with a weighted
average interest rate of 1.4% and a weighted average maturity of 63 days at     
December 31, 2002. Short-term debt of the Company consisted of commercial paper 
with a weighted average interest rate of 2.1% and a weighted average maturity   
of 87 days at December 31, 2001. The Company also has other collaterlized       
borrowings with a weighted average coupon rate of 5.83% and a weighted average  
maturity of 34 days at December 31, 2002. Such securities had a weighted        
average coupon rate of 7.25% and a weighted average maturity of 30 days at      
December 31, 2001.                                                              

Interest expense related to the Company's indebtedness included in other  
expenses was $208 million, $313 million and $417 million for the years ended    
December 31, 2002, 2001 and 2000, respectively.                                 

10.  Company-Obligated Mandatorily Redeemable Securities of Subsidiary Trusts   

GenAmerica Capital I.  In June 1997, GenAmerica Corporation ("GenAmerica")
issued $125 million of 8.525% capital securities through a wholly-owned         
subsidiary trust, GenAmerica Capital I. GenAmerica has fully and                
unconditionally guaranteed, on a subordinated basis, the obligation of the      
trust under the capital securities and is obligated to mandatorily redeem the   
securities on June 30, 2027. GenAmerica may prepay the securities any time      
after June 30, 2007. Capital securities outstanding were $119 million and $118  
million, net of unamortized discounts of $6 million and $7 million at December  
31, 2002 and 2001, respectively. Interest expense on these instruments is       
included in other expenses and was $11 million for each of the years ended      
December 31, 2002, 2001 and 2000.                                               

RGA Capital Trust I.  In December 2001, a subsidiary of the Company, RGA, 
through its wholly-owned trust, RGA Capital Trust I (the "Trust"), issued       
4,500,000 Preferred Income Equity Redeemable Securities ("PIERS") Units. Each   
PIERS unit consists of (i) a preferred security issued by the Trust, having a   
stated liquidation amount of $50 per unit, representing an undivided beneficial 
ownership interest in the assets of the Trust, which consist solely of junior   
subordinated debentures issued by RGA which have a principal amount at maturity 
of $50 and a stated maturity of March 18, 2051, and (ii) a warrant to purchase, 
at any time prior to December 15, 2050, 1.2508 shares of RGA stock at an        
exercise price of $50. The fair market value of the warrant on the issuance     
date was $14.87 and is detachable from the preferred security. RGA fully and    
unconditionally guarantees, on a subordinated basis, the obligations of the     
Trust under the preferred securities. The preferred                             

F-109 

485BPOS
273rd Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 273rd
METROPOLITAN LIFE INSURANCE COMPANY AND SUBSIDIARIES  

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(Continued) 

securities and subordinated debentures were issued at a discount (original      
issue discount) to the face or liquidation value of $14.87 per security. The    
securities will accrete to their $50 face/liquidation value over the life of    
the security on a level yield basis. The weighted average effective interest    
rate on the preferred securities and the subordinated debentures is 8.25% per   
annum. Capital securities outstanding were $158 million, net of unamortized     
discount of $67 million, at both December 31, 2002 and 2001.                    

11.  Commitments, Contingencies and Guarantees                                  

Litigation                                                                  

Sales Practices Claims                                                    

Over the past several years, Metropolitan Life, New England Mutual Life   
Insurance Company ("New England Mutual") and General American Life Insurance    
Company ("General American") have faced numerous claims, including class action 
lawsuits, alleging improper marketing and sales of individual life insurance    
policies or annuities. These lawsuits are generally referred to as "sales       
practices claims."                                                              

In December 1999, a federal court approved a settlement resolving sales   
practices claims on behalf of a class of owners of permanent life insurance     
policies and annuity contracts or certificates issued pursuant to individual    
sales in the United States by Metropolitan Life, Metropolitan Insurance and     
Annuity Company or Metropolitan Tower Life Insurance Company between January 1, 
1982 and December 31, 1997. The class includes owners of approximately six      
million in-force or terminated insurance policies and approximately one million 
in-force or terminated annuity contracts or certificates.                       

  Similar sales practices class actions against New England Mutual, with which
Metropolitan Life merged in 1996, and General American, which was acquired in   
2000, have been settled. In October 2000, a federal court approved a settlement 
resolving sales practices claims on behalf of a class of owners of permanent    
life insurance policies issued by New England Mutual between January 1, 1983    
through August 31, 1996. The class includes owners of approximately 600,000     
in-force or terminated policies. A federal court has approved a settlement      
resolving sales practices claims on behalf of a class of owners of permanent    
life insurance policies issued by General American between January 1, 1982      
through December 31, 1996. An appellate court has affirmed the order approving  
the settlement. The class includes owners of approximately 250,000 in-force or  
terminated policies. Implementation of the General American class action        
settlement is proceeding.                                                       

Certain class members have opted out of the class action settlements noted
above and have brought or continued non-class action sales practices lawsuits.  
In addition, other sales practices lawsuits have been brought. As of December   
31, 2002, there are approximately 420 sales practices lawsuits pending against  
Metropolitan Life, approximately 60 sales practices lawsuits pending against    
New England Mutual and approximately 35 sales practices lawsuits pending        
against General American. Metropolitan Life, New England Mutual and General     
American continue to defend themselves vigorously against these lawsuits. Some  
individual sales practices claims have been resolved through settlement, won by 
dispositive motions, or, in a few instances, have gone to trial. Most of the    
current cases seek substantial damages, including in some cases punitive and    
treble damages and attorneys' fees. Additional litigation relating to the       
Company's marketing and sales of individual life insurance may be commenced in  
the future.                                                                     

The Metropolitan Life class action settlement did not resolve two putative
class actions involving sales practices claims filed against Metropolitan Life  
in Canada, and these actions remain pending. In March 2002, a purported class   
action complaint was filed in a federal court in Kansas by S-G Metals           
Industries, Inc. ("S-G Metals") against New England Mutual. The complaint seeks 
certification of a class on behalf of corporations and                          

F-110 

485BPOS
274th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 274th
METROPOLITAN LIFE INSURANCE COMPANY AND SUBSIDIARIES  

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(Continued) 

banks that purchased participating life insurance policies, as well as persons  
who purchased participating policies for use in pension plans or through work   
site marketing. These policyholders were not part of the New England Mutual     
class action settlement noted above. The action was transferred to a federal    
court in Massachusetts. New England Mutual moved to dismiss the case and in     
November 2002, the federal district court dismissed the case. S-G Metals has    
filed a notice of appeal. New England Mutual intends to continue to defend      
itself vigorously against the case.                                             

The Company believes adequate provision has been made in its consolidated 
financial statements for all probable and reasonably estimable losses for sales 
practices claims against Metropolitan Life, New England Mutual and General      
American.                                                                       

Regulatory authorities in a small number of states have had investigations
or inquiries relating to Metropolitan Life's, New England Mutual's or General   
American's sales of individual life insurance policies or annuities. Over the   
past several years, these and a number of investigations by other regulatory    
authorities were resolved for monetary payments and certain other relief. The   
Company may continue to resolve investigations in a similar manner.             

Asbestos-Related Claims                                                   

Metropolitan Life is a defendant in thousands of lawsuits seeking         
compensatory and punitive damages for personal injuries allegedly caused by     
exposure to asbestos or asbestos-containing products. Metropolitan Life has     
never engaged in the business of manufacturing, producing, distributing or      
selling asbestos or asbestos-containing products nor has Metropolitan Life      
issued liability or workers' compensation insurance to companies in the         
business of manufacturing, producing, distributing or selling asbestos or       
asbestos-containing products. Rather, these lawsuits have principally been      
based upon allegations relating to certain research, publication and other      
activities of one or more of Metropolitan Life's employees during the period    
from the 1920's through approximately the 1950's and alleging that Metropolitan 
Life learned or should have learned of certain health risks posed by asbestos   
and, among other things, improperly publicized or failed to disclose those      
health risks. Metropolitan Life believes that it should not have legal          
liability in such cases.                                                        

 Legal theories asserted against Metropolitan Life have included negligence,
intentional tort claims and conspiracy claims concerning the health risks       
associated with asbestos. Although Metropolitan Life believes it has            
meritorious defenses to these claims, and has not suffered any adverse monetary 
judgments in respect of these claims, due to the risks and expenses of          
litigation, almost all past cases have been resolved by settlements.            
Metropolitan Life's defenses (beyond denial of certain factual allegations) to  
plaintiffs' claims include that: (i) Metropolitan Life owed no duty to the      
plaintiffs--it had no special relationship with the plaintiffs and did not      
manufacture, produce, distribute or sell the asbestos products that allegedly   
injured plaintiffs; (ii) plaintiffs cannot demonstrate justifiable detrimental  
reliance; and (iii) plaintiffs cannot demonstrate proximate causation. In       
defending asbestos cases, Metropolitan Life selects various strategies          
depending upon the jurisdictions in which such cases are brought and other      
factors which, in Metropolitan Life's judgment, best protect Metropolitan       
Life's interests. Strategies include seeking to settle or compromise claims,    
motions challenging the legal or factual basis for such claims or defending on  
the merits at trial. In early 2002 and in early 2003, two trial courts granted  
motions dismissing claims against Metropolitan Life on some or all of the above 
grounds. Other courts have denied motions brought by Metropolitan Life to       
dismiss cases without the necessity of trial. There can be no assurance that    
Metropolitan Life will receive favorable decisions on motions in the future.    
Metropolitan Life intends to continue to exercise its best judgment regarding   
settlement or defense of such cases, including when trials of these cases are   
appropriate.                                                                    

F-111 

485BPOS
275th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 275th
METROPOLITAN LIFE INSURANCE COMPANY AND SUBSIDIARIES  

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(Continued) 

 The following table sets forth the total number of asbestos personal injury
claims pending against Metropolitan Life as of the dates indicated, the number  
of new claims during the years ended on those dates and the total settlement    
payments made to resolve asbestos personal injury claims during those years:    

                                                        [Enlarge/Download Table]

                                                             At or for the years ended
                                                                   December 31,       
                                                             ------------------------ 
                                                               2002     2001    2000  
                                                             --------  ------- -------
                                                                                      
Asbestos personal injury claims at year end (approximate)...  106,500   89,000  73,000
Number of new claims during the year (approximate)..........   66,000   59,500  54,500
Settlement payments during the year (dollars in millions)(1) $   95.1  $  90.7 $  71.1

--------                                                                        
(1) Settlement payments represent payments made by Metropolitan Life during the 
 year in connection with settlements made in that year and in prior years.
   Amounts do not include Metropolitan Life's attorneys' fees and expenses and
do not reflect amounts received from insurance carriers.                

During the fourth quarter of 2002, Metropolitan Life analyzed its claims  
experience and reviewed external publications and numerous variables to         
identify trends and assessed their impact on its recorded asbestos liability.   
Certain publications suggest a trend towards more asbestos-related claims and a 
greater awareness of asbestos litigation generally by potential plaintiffs and  
plaintiffs' lawyers. Plaintiffs' lawyers continue to advertise heavily with     
respect to asbestos litigation. Bankruptcies and reorganizations of other       
defendants in asbestos litigation may increase the pressures on remaining       
defendants, including Metropolitan Life. Through the first nine months of 2002, 
the number of new claims received by Metropolitan Life was lower than those     
received during the comparable 2001 period. However, the number of new claims   
received by Metropolitan Life during the fourth quarter of 2002 was             
significantly higher than those received in the prior year quarter, resulting   
in more new claims being received by Metropolitan Life in 2002 than in 2001.    
Factors considered also included expected trends in filing cases, the dates of  
initial exposure of plaintiffs to asbestos, the likely percentage of total      
asbestos claims which included Metropolitan Life as a defendant and experience  
in claims settlement negotiations.                                              

 Metropolitan Life also considered views derived from actuarial calculations
it made in the fourth quarter of 2002. These calculations were made using,      
among other things, current information regarding Metropolitan Life's claims    
and settlement experience, information available in public reports, as well as  
a study regarding the possible future incidence of mesothelioma. Based on all   
of the above information, including greater than expected claims experience     
over the last three years, Metropolitan Life expects to receive more claims in  
the future than it had previously expected. Previously, Metropolitan Life's     
liability reflected that the increase in asbestos-related claims was a result   
of an acceleration in the reporting of such claims; the liability now reflects  
that such an increase is also the result of an increase in the total number of  
asbestos-related claims expected to be received by Metropolitan Life.           
Accordingly, Metropolitan Life increased its recorded liability for             
asbestos-related claims by $402 million from approximately $820 million to      
$1,225 million at December 31, 2002. This total recorded asbestos-related       
liability (after the self-insured retention) is within the coverage of the      
excess insurance policies discussed below.                                      

During 1998, Metropolitan Life paid $878 million in premiums for excess   
insurance policies for asbestos-related claims. The excess insurance policies   
for asbestos-related claims provide for recovery of losses up to $1,500         
million, which is in excess of a $400 million self-insured retention. The       
asbestos-related policies are also subject to annual and per-claim sublimits.   
Amounts are recoverable under the policies annually with respect to claims paid 
during the prior calendar year. Although amounts paid by Metropolitan Life in   
any given year that may be recoverable in the next calendar year under the      
policies will be reflected as a reduction in the Company's operating cash flows 
for the year in which they are paid, management believes that the payments will 
not have a material adverse effect on the Company's liquidity.                  

F-112 

485BPOS
276th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 276th
METROPOLITAN LIFE INSURANCE COMPANY AND SUBSIDIARIES  

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(Continued) 

Each asbestos-related policy contains an experience fund and a reference  
fund that provides for payments to the Company at the commutation date if the   
reference fund is greater than zero at commutation or pro rata reductions from  
time to time in the loss reimbursements to the Company if the cumulative return 
on the reference fund is less than the return specified in the experience fund. 
The return in the reference fund is tied to performance of the Standard &       
Poor's 500 Index and the Lehman Brothers Aggregate Bond Index. A claim will be  
made under the excess insurance policies in 2003 for the amounts paid with      
respect to asbestos litigation in excess of the retention. Based on performance 
of the reference fund, at December 31, 2002, the loss reimbursements to the     
Company in 2003 and the amount recoverable with respect to later periods will   
be $42 million less than the amount of the recorded losses. Such foregone loss  
reimbursements may be recovered upon commutation depending upon future          
performance of the reference fund. The foregone loss reimbursements are         
estimated to be $9 million with respect to 2002 claims and $42 million in the   
aggregate.                                                                      

  The $402 million increase in the recorded liability for asbestos claims less
the foregone loss reimbursement adjustment of $42 million ($27 million net of   
income tax) resulted in an increase in the recoverable of $360 million. At      
December 31, 2002, a portion ($136 million) of the $360 million recoverable was 
recognized in income while the remainder ($224 million) was recorded as a       
deferred gain which is expected to be recognized in income in the future over   
the estimated settlement period of the excess insurance policies. The $402      
million increase in the recorded liability, less the portion of the recoverable 
recognized in income, resulted in a net expense of $266 million ($169 million   
net of income tax). The $360 million recoverable may change depending on the    
future performance of the Standard & Poor's 500 Index and the Lehman Brothers   
Aggregate Bond Index.                                                           

 As a result of the excess insurance policies, $1,237 million is recorded as
a recoverable at December 31, 2002 ($224 million of which is recorded as a      
deferred gain as mentioned above); the amount includes recoveries expected to   
be obtained in 2003 for amounts paid in 2002. If at some point in the future,   
the Company believes the liability for probable and estimable losses for        
asbestos-related claims should be increased, an expense would be recorded and   
the insurance recoverable would be adjusted subject to the terms, conditions    
and limits of the excess insurance policies. Portions of the change in the      
insurance recoverable would be recorded as a deferred gain and amortized into   
income over the estimated remaining settlement period of the insurance policies.

The Company believes adequate provision has been made in its consolidated 
financial statements for all probable and reasonably estimable losses for       
asbestos-related claims. The ability of Metropolitan Life to estimate its       
ultimate asbestos exposure is subject to considerable uncertainty due to        
numerous factors. The availability of data is limited and it is difficult to    
predict with any certainty numerous variables that can affect liability         
estimates, including the number of future claims, the cost to resolve claims,   
the disease mix and severity of disease, the jurisdiction of claims filed, tort 
reform efforts and the impact of any possible future adverse verdicts and their 
amounts.                                                                        

Recent bankruptcies of other companies involved in asbestos litigation, as
well as advertising by plaintiffs' asbestos lawyers, may be resulting in an     
increase in the number of claims and the cost of resolving claims, as well as   
the number of trials and possible adverse verdicts Metropolitan Life may        
experience. Plaintiffs are seeking additional funds from defendants, including  
Metropolitan Life, in light of such recent bankruptcies by certain other        
defendants. It is likely that bills will be introduced in 2003 in the United    
States Congress to reform asbestos litigation. While the Company strongly       
supports reform efforts, there can be no assurance that legislative reforms     
will be enacted. Metropolitan Life will continue to study its claims            
experience, review external literature regarding asbestos claims experience in  
the United States and consider numerous variables that can affect its asbestos  
liability exposure, including bankruptcies of other companies involved in       
asbestos litigation and legislative and judicial developments, to identify      
trends and to assess their impact on the recorded asbestos liability.           

F-113 

485BPOS
277th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 277th
METROPOLITAN LIFE INSURANCE COMPANY AND SUBSIDIARIES  

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(Continued) 

 The number of asbestos cases that may be brought or the aggregate amount of
any liability that Metropolitan Life may ultimately incur is uncertain.         
Accordingly, it is reasonably possible that the Company's total exposure to     
asbestos claims may be greater than the liability recorded by the Company in    
its consolidated financial statements and that future charges to income may be  
necessary. While the potential future charges could be material in particular   
quarterly or annual periods in which they are recorded, based on information    
currently known by management, it does not believe any such charges are likely  
to have a material adverse effect on the Company's consolidated financial       
position.                                                                       

Property and Casualty Actions                                             

Purported class action suits involving claims by policyholders for the    
alleged diminished value of automobiles after accident-related repairs have     
been filed in Rhode Island, Texas, Georgia and Tennessee against Metropolitan   
Property and Casualty Insurance Company. Rhode Island and Texas trial courts    
denied plaintiffs' motions for class certification and a hearing on plaintiffs' 
motion in Tennessee for class certification is to be scheduled. A settlement    
has been reached in the Georgia class action; the Company determined to settle  
the case in light of a Georgia Supreme Court decision involving another         
insurer. The settlement is being implemented. A purported class action has been 
filed against Metropolitan Property and Casualty Insurance Company's            
subsidiary, Metropolitan Casualty Insurance Company, in Florida. The complaint  
alleges breach of contract and unfair trade practices with respect to allowing  
the use of parts not made by the original manufacturer to repair damaged        
automobiles. Discovery is ongoing and a motion for class certification is       
pending. Total loss valuation methods are the subject of national class actions 
involving other insurance companies. A Pennsylvania state court purported class 
action lawsuit filed in 2001 alleges that Metropolitan Property and Casualty    
Insurance Company improperly took depreciation on partial homeowner losses      
where the insured replaced the covered item. The court has dismissed the        
action. An appeal has been filed. Metropolitan Property and Casualty Insurance  
Company and Metropolitan Casualty Insurance Company are vigorously defending    
themselves against these lawsuits.                                              

Demutualization Actions                                                   

Several lawsuits were brought in 2000 challenging the fairness of         
Metropolitan Life's plan of reorganization and the adequacy and accuracy of     
Metropolitan Life's disclosure to policyholders regarding the plan. These       
actions name as defendants some or all of Metropolitan Life, the Holding        
Company, the individual directors, the Superintendent and the underwriters for  
MetLife, Inc.'s initial public offering, Goldman Sachs & Company and Credit     
Suisse First Boston. Five purported class actions pending in the New York state 
court in New York County were consolidated within the commercial part. In       
addition, there remained a separate purported class action in New York state    
court in New York County. Another purported class action in New York state      
court in Kings County has been voluntarily held in abeyance by plaintiffs. The  
plaintiffs in the state court class actions seek injunctive, declaratory and    
compensatory relief, as well as an accounting and, in some instances, punitive  
damages. Some of the plaintiffs in the above described actions also have        
brought a proceeding under Article 78 of New York's Civil Practice Law and      
Rules challenging the Opinion and Decision of the Superintendent who approved   
the plan. In this proceeding, petitioners seek to vacate the Superintendent's   
Opinion and Decision and enjoin him from granting final approval of the plan.   
This case also is being held in abeyance by plaintiffs. Another purported class 
action was filed in New York state court in New York County on behalf of a      
purported class of beneficiaries of Metropolitan Life annuities purchased to    
fund structured settlements claiming that the class members should have         
received common stock or cash in connection with the demutualization.           
Metropolitan Life's motion to dismiss this case was granted in a decision filed 
on October 31, 2002. Plaintiff has withdrawn her notice of appeal. Three        
purported class actions were filed in the United States District Court for the  
Eastern District of New York claiming violation of the Securities Act of 1933.  
The plaintiffs in these actions, which have been consolidated, claim that the   
Policyholder Information Booklets relating to the plan failed to disclose       
certain material facts and seek rescission and compensatory damages.            
Metropolitan Life's motion to dismiss these three cases was denied in 2001. On  
February 4, 2003, plaintiffs filed a consolidated amended complaint adding a    
fraud                                                                           

F-114 

485BPOS
278th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 278th
METROPOLITAN LIFE INSURANCE COMPANY AND SUBSIDIARIES  

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(Continued) 

claim under the Securities Exchange Act of 1934. A purported class action also  
was filed in the United States District Court for the Southern District of New  
York seeking damages from Metropolitan Life and the Holding Company for alleged 
violations of various provisions of the Constitution of the United States in    
connection with the plan of reorganization. In 2001, pursuant to a motion to    
dismiss filed by Metropolitan Life, this case was dismissed by the District     
Court. In January 2003, the United States Court of Appeals for the Second       
Circuit affirmed the dismissal. Metropolitan Life, the Holding Company and the  
individual defendants believe they have meritorious defenses to the plaintiffs' 
claims and are contesting vigorously all of the plaintiffs' claims in these     
actions.                                                                        

In 2001, a lawsuit was filed in the Superior Court of Justice, Ontario,   
Canada on behalf of a proposed class of certain former Canadian policyholders   
against the Holding Company, Metropolitan Life, and Metropolitan Life Insurance 
Company of Canada. Plaintiffs' allegations concern the way that their policies  
were treated in connection with the demutualization of Metropolitan Life; they  
seek damages, declarations, and other non-pecuniary relief. The defendants      
believe they have meritorious defenses to the plaintiffs' claims and will       
contest vigorously all of plaintiffs' claims in this matter.                    

In July 2002, a lawsuit was filed in the United States District Court for 
the Eastern District of Texas on behalf of a proposed class comprised of the    
settlement class in the Metropolitan Life sales practices class action          
settlement approved in December 1999 by the United States District Court for    
the Western District of Pennsylvania. The Holding Company, Metropolitan Life,   
the trustee of the policyholder trust, and certain present and former           
individual directors and officers of Metropolitan Life are named as defendants. 
Plaintiffs' allegations concern the treatment of the cost of the settlement in  
connection with the demutualization of Metropolitan Life and the adequacy and   
accuracy of the disclosure, particularly with respect to those costs.           
Plaintiffs seek compensatory, treble and punitive damages, as well as           
attorneys' fees and costs. The defendants' motion to transfer the lawsuit to    
the Western District of Pennsylvania was granted on February 14, 2003. The      
defendants' motion to dismiss is pending. Plaintiffs have filed a motion for    
class certification which the Texas court has adjourned. The defendants believe 
they have meritorious defenses to the plaintiffs' claims and will contest them  
vigorously.                                                                     

Race-Conscious Underwriting Claims                                        

Insurance Departments in a number of states initiated inquiries in 2000   
about possible race-conscious underwriting of life insurance. These inquiries   
generally have been directed to all life insurers licensed in their respective  
states, including Metropolitan Life and certain of its subsidiaries. The New    
York Insurance Department has concluded its examination of Metropolitan Life    
concerning possible past race-conscious underwriting practices. Metropolitan    
Life has cooperated fully with that inquiry. Four purported class action        
lawsuits filed against Metropolitan Life in 2000 and 2001 alleging racial       
discrimination in the marketing, sale, and administration of life insurance     
policies have been consolidated in the United States District Court for the     
Southern District of New York. The plaintiffs seek unspecified monetary         
damages, punitive damages, reformation, imposition of a constructive trust, a   
declaration that the alleged practices are discriminatory and illegal,          
injunctive relief requiring Metropolitan Life to discontinue the alleged        
discriminatory practices and adjust policy values, and other relief.            
Metropolitan Life has entered into settlement agreements to resolve the         
regulatory examination and the actions pending in the United States District    
Court for the Southern District of New York. The class action settlement, which 
has received preliminary approval from the court, must receive final approval   
before it can be implemented. A fairness hearing was held on February 7, 2003.  
The regulatory settlement agreement is conditioned upon final approval of the   
class action settlement. Metropolitan Life recorded a charge in the fourth      
quarter of 2001 in connection with the anticipated resolution of these matters  
and believes that charge is adequate to cover the costs associated with these   
settlements.                                                                    

F-115 

485BPOS
279th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 279th
METROPOLITAN LIFE INSURANCE COMPANY AND SUBSIDIARIES  

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(Continued) 

Sixteen lawsuits involving approximately 125 plaintiffs have been filed in
federal and state court in Alabama, Mississippi and Tennessee alleging federal  
and/or state law claims of racial discrimination in connection with the sale,   
formation, administration or servicing of life insurance policies. Metropolitan 
Life is contesting vigorously plaintiffs' claims in these actions.              

Other                                                                     

 In 2001, a putative class action was filed against Metropolitan Life in the
United States District Court for the Southern District of New York alleging     
gender discrimination and retaliation in the MetLife Financial Services unit of 
the Individual segment. The plaintiffs seek unspecified compensatory damages,   
punitive damages, a declaration that the alleged practices are discriminatory   
and illegal, injunctive relief requiring Metropolitan Life to discontinue the   
alleged discriminatory practices, an order restoring class members to their     
rightful positions (or appropriate compensation in lieu thereof), and other     
relief. Metropolitan Life is vigorously defending itself against these          
allegations.                                                                    

A lawsuit has been filed against Metropolitan Life in Ontario, Canada by  
Clarica Life Insurance Company regarding the sale of the majority of            
Metropolitan Life's Canadian operation to Clarica in 1998. Clarica alleges that 
Metropolitan Life breached certain representations and warranties contained in  
the sale agreement, that Metropolitan Life made misrepresentations upon which   
Clarica relied during the negotiations and that Metropolitan Life was negligent 
in the performance of certain of its obligations and duties under the sale      
agreement. Metropolitan Life is vigorously defending itself against this        
lawsuit.                                                                        

A putative class action lawsuit is pending in the United States District  
Court for the District of Columbia, in which plaintiffs allege that they were   
denied certain ad hoc pension increases awarded to retirees under the           
Metropolitan Life retirement plan. The ad hoc pension increases were awarded    
only to retirees (i.e., individuals who were entitled to an immediate           
retirement benefit upon their termination of employment) and were not available 
to individuals like plaintiffs whose employment, or whose spouses' employment,  
had terminated before they became eligible for an immediate retirement benefit. 
The district court denied the parties' cross-motions for summary judgment to    
allow for discovery. Discovery has not yet commenced pending the court's ruling 
as to the timing of a class certification motion. The plaintiffs seek to        
represent a class consisting of former Metropolitan Life employees, or their    
surviving spouses, who are receiving deferred vested annuity payments under the 
retirement plan and who were allegedly eligible to receive the ad hoc pension   
increases awarded in 1977, 1980, 1989, 1992, 1996 and 2001, as well as          
increases awarded in earlier years. Metropolitan Life is vigorously defending   
itself against these allegations.                                               

A reinsurer of universal life policy liabilities of Metropolitan Life and 
certain affiliates is seeking rescission and has commenced an arbitration       
proceeding claiming that, during underwriting, material misrepresentations or   
omissions were made. The reinsurer also has sent a notice purporting to         
increase reinsurance premium rates. Metropolitan Life and these affiliates      
intend to vigorously defend themselves against the claims of the reinsurer,     
including the purported rate increase.                                          

 Various litigation, claims and assessments against the Company, in addition
to those discussed above and those otherwise provided for in the Company's      
consolidated financial statements, have arisen in the course of the Company's   
business, including, but not limited to, in connection with its activities as   
an insurer, employer, investor, investment advisor and taxpayer. Further, state 
insurance regulatory authorities and other federal and state authorities        
regularly make inquiries and conduct investigations concerning the Company's    
compliance with applicable insurance and other laws and regulations.            

F-116 

485BPOS
280th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 280th
METROPOLITAN LIFE INSURANCE COMPANY AND SUBSIDIARIES  

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(Continued) 

Summary                                                                   

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, except as noted above in connection with specific matters. In 
some of the matters referred to above, very large and/or indeterminate amounts, 
including punitive and treble damages, are sought. Although in light of these   
considerations it is possible that an adverse outcome in certain cases could    
have a material adverse effect upon the Company's consolidated financial        
position, based on information currently known by the Company's management, in  
its opinion, the outcomes of such pending investigations and legal proceedings  
are not likely to have such an effect. However, given the large and/or          
indeterminate amounts sought in certain of these matters and the inherent       
unpredictability of litigation, it is possible that an adverse outcome in       
certain matters could, from time to time, have a material adverse effect on the 
Company's consolidated net income or cash flows in particular quarterly or      
annual periods.                                                                 

Leases                                                                      

In accordance with industry practice, certain of the Company's income from
lease agreements with retail tenants is contingent upon the level of the        
tenants' sales revenues. Additionally, the Company, as lessee, has entered into 
various lease and sublease agreements for office space, data processing and     
other equipment. Future minimum rental and sublease income, and minimum gross   
rental payments relating to these lease agreements were as follows:             

                                                                [Download Table]

           Rental Income Sublease Income Gross Rental Payments
           ------------- --------------- ---------------------
                          (Dollars in millions)               
                                                              
2003......    $  540           $14               $184         
2004......       510            12                160         
2005......       464            11                145         
2006......       428            10                130         
2007......       379             9                114         
Thereafter     1,724             8                643         

Commitments to Fund Partnership Investments                                 

 The Company makes commitments to fund partnership investments in the normal
course of business. The amounts of these unfunded commitments were $1,667       
million and $1,898 million at December 31, 2002 and 2001, respectively. The     
Company anticipates that these amounts will be invested in the partnerships     
over the next three to five years.                                              

Guarantees                                                                  

  In the course of its business, the Company has provided certain indemnities,
guarantees and commitments to third parties pursuant to which it may be         
required to make payments now or in the future.                                 

In the context of disposition transactions, the Company has provided      
indemnities and guarantees, including those related to tax, environmental and   
other specific liabilities, and other indemnities and guarantees that are       
triggered by, among other things, breaches of representations, warranties or    
covenants provided by the Company. These obligations are often subject to time  
limitations that vary in duration, including contractual limitations and those  
that arise by operation of law such as applicable statutes of limitation. In    
some cases, the maximum potential obligation under the indemnities and          
guarantees is subject to a contractual limitation ranging from $1 million to    
$800 million, while in other cases such limitations are not specified or        
applicable. Since certain of                                                    

F-117 

485BPOS
281st Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 281st
METROPOLITAN LIFE INSURANCE COMPANY AND SUBSIDIARIES  

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(Continued) 

these obligations are not subject to limitations, the Company does not believe  
that it is possible to determine the maximum potential amount due under these   
guarantees in the future.                                                       

In addition, Metropolitan Life and its subsidiaries indemnify their       
respective directors and officers as provided in their charters and by-laws.    
Since these indemnities are generally not subject to limitation with respect to 
duration or amount, the Company does not believe that it is possible to         
determine the maximum potential amount due under these indemnities in the       
future.                                                                         

  The Company has not recorded any liability for these indemnities, guarantees
and commitments in the accompanying consolidated balance sheets at December 31, 
2002 or 2001.                                                                   

12.  Acquisitions and Dispositions                                              

Dispositions                                                                

In December 2002, the Company completed its sales of Cova Corporation,    
MetLife Investors Group, Inc., MetLife International Holdings, Inc., Walnut     
Street Securities, Inc., Seguros Genesis S.A., MetLife Pensiones S.A. and       
Metropolitan Life Seguros de Vida S.A. to the Holding Company. The amount       
received in excess of book value of $149 million was recorded as a capital      
contribution from the Holding Company. Total assets and total liabilities of    
the entities sold at the date of sale were $17,853 million and $16,545 million, 
respectively. Total revenues of the entities sold included in the consolidated  
statements of income were $1,648 million, $1,463 million, and $1,256 million    
for the years ended December 31, 2002, 2001 and 2000, respectively.             

In December 2001, the Company completed its sale of MIAC to the Holding   
Company. The amount received in excess of book value of $96 million was         
recorded as a capital contribution from the Holding Company. Total assets and   
total liabilities of MIAC at the date of sale were $6,240 million and $5,219    
million, respectively. Total revenues of MIAC included in the consolidated      
statements of income were $391 million and $509 million for the years ended     
December 31, 2001 and 2000, respectively.                                       

In July 2001, the Company completed its sale of Conning Corporation       
("Conning"), an affiliate acquired in the acquisition of GenAmerica Financial   
Corporation ("GenAmerica"). Conning specialized in asset management for         
insurance company investment portfolios and investment research. The Company    
received $108 million in the transaction and reported a gain of approximately   
$25 million in the third quarter of 2001.                                       

In October 2000, the Company completed the sale of its 48% ownership      
interest in its affiliates, Nvest, L.P. and Nvest Companies L.P. This           
transaction resulted in an investment gain of $663 million.                     

Acquisitions                                                                

 In January 2000, Metropolitan Life completed its acquisition of GenAmerica,
a holding company which included General American Life Insurance Company,       
approximately 49% of the outstanding shares of RGA common stock, and 61% of the 
outstanding shares of Conning common stock which was subsequently sold in 2001. 
Metropolitan Life owned 9% of the outstanding shares of RGA common stock prior  
to the completion of the GenAmerica acquisition. During 2002, MetLife, Inc.     
purchased additional shares of RGA's outstanding common stock. These purchases  
are intended to offset potential future dilution of the Company's holding of    
RGA's common stock arising from the issuance by RGA of company-obligated        
mandatorily redeemable securities of a subsidiary trust on December 10, 2001.   
At December 31, 2002 and 2001, Metropolitan Life's ownership percentage of the  
outstanding shares of common stock was approximately 58%.                       

F-118 

485BPOS
282nd Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 282nd
METROPOLITAN LIFE INSURANCE COMPANY AND SUBSIDIARIES  

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(Continued) 

 In April 2000, Metropolitan Life acquired the outstanding shares of Conning
common stock not already owned by Metropolitan Life for $73 million. The shares 
of Conning were subsequently sold in their entirety in July 2001.               

13.  Business Realignment Initiatives                                           

 During the fourth quarter of 2001, the Company implemented several business
realignment initiatives, which resulted from a strategic review of operations   
and an ongoing commitment to reduce expenses. The following tables represent    
the original expenses recorded in the fourth quarter of 2001 and the remaining  
liability as of December 31, 2002:                                              

                                                        [Enlarge/Download Table]

                                      Pre-tax Charges Recorded in the Fourth Quarter of 2001
                                      ------------------------------------------------------
                                      Institutional    Individual    Auto & Home    Total   
                                      -------------    ----------    -----------    -----   
                                                (Dollars in millions)                       
                                                                                            
Severance and severance-related costs     $  9            $32            $ 3        $ 44    
Facilities' consolidation costs......        3             65             --          68    
Business exit costs..................      387             --             --         387    
                                          ----            ---            ---        ----    
   Total.............................     $399            $97            $ 3        $499    
                                          ====            ===            ===        ====    

                                      Remaining Liability as of December 31, 2002           
                                      ------------------------------------------------------
                                      Institutional    Individual    Auto & Home    Total   
                                      -------------    ----------    -----------    -----   
                                                (Dollars in millions)                       
Severance and severance-related costs     $ --            $ 1            $--        $  1    
Facilities' consolidation costs......       --             13             --          13    
Business exit costs..................       40             --             --          40    
                                          ----            ---            ---        ----    
   Total.............................     $ 40            $14            $--        $ 54    
                                          ====            ===            ===        ====    

The 2001 facilities' consolidation costs include $15 million of charges   
related to MetLife Investors Group, Inc., a subsidiary sold to the Holding      
Company in December 2002. The remaining liability as of December 31, 2002       
related to this subsidiary, which is not included in the above table, was $4    
million.                                                                        

Institutional. The charges to this segment in the fourth quarter of 2001  
include costs associated with exiting a business, including the write-off of    
goodwill, severance and severance-related costs, and facilities' consolidation  
costs. These expenses are the result of the discontinuance of certain 401(k)    
recordkeeping services and externally-managed guaranteed index separate         
accounts. These actions resulted in charges to policyholder benefits and claims 
and other expenses of $215 million and $184 million, respectively. During the   
fourth quarter of 2002, approximately $30 million of the charges recorded in    
2001 were released into income primarily as a result of the accelerated         
implementation of the Company's exit from the large market 401(k) business. The 
business realignment initiatives will result in the elimination of              
approximately 930 positions. As of December 31, 2002, there were approximately  
340 terminations to be completed. The Company continues to carry a liability as 
of December 31, 2002 since the exit plan could not be completed within one year 
due to circumstances outside the Company's control, and since certain of its    
contractual obligations extended beyond one year.                               

F-119 

485BPOS
283rd Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 283rd
METROPOLITAN LIFE INSURANCE COMPANY AND SUBSIDIARIES  

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(Continued) 

Individual. The charges to this segment in the fourth quarter of 2001     
include facilities' consolidation costs, severance and severance-related costs, 
which predominately stem from the elimination of approximately 560 non-sales    
positions and 190 operations and technology positions supporting this segment.  
As of December 31, 2002, there were approximately 25 terminations to be         
completed. These costs were recorded in other expenses. The remaining liability 
as of December 31, 2002 is due to certain contractual obligations that extended 
beyond one year.                                                                

Auto & Home. The charges to this segment in the fourth quarter of 2001    
include severance and severance-related costs associated with the elimination   
of approximately 200 positions. All terminations were completed as of December  
31, 2002. The costs were recorded in other expenses.                            

14.  Income Taxes                                                               

The provision for income taxes for continuing operations was as follows:  

                                                                [Download Table]

                           Years ended December 31,
                           ----------------------- 
                            2002    2001     2000  
                            -----   ----    -----  
                           (Dollars in millions)   
                                                   
Current:                                           
   Federal................ $ 841    $(22)   $(131) 
   State and local........   (18)     (4)      34  
   Foreign................    (5)     15        5  
                            -----    ----   -----  
                             818     (11)     (92) 
                            -----    ----   -----  
Deferred:                                          
   Federal................  (322)    775      513  
   State and local........    17      32        8  
   Foreign................    12       1        6  
                            -----    ----   -----  
                            (293)    808      527  
                            -----    ----   -----  
Provision for income taxes $ 525    $797    $ 435  
                            =====    ====   =====  

Reconciliations of the income tax provision at the U.S. statutory rate to 
the provision for income taxes for continuing operations were as follows:       

                                                                [Download Table]

                                             Years ended December 31,
                                             ----------------------- 
                                             2002    2001     2000   
                                             ----    ----     -----  
                                             (Dollars in millions)   
                                                                     
Tax provision at U.S. statutory rate........ $590    $771    $ 457   
Tax effect of:                                                       
   Tax exempt investment income.............  (86)    (82)     (52)  
   Surplus tax..............................   --      --     (145)  
   State and local income taxes.............   21      35       30   
   Prior year taxes.........................   (8)     36      (37)  
   Demutualization costs....................   --      --       21   
   Payment to former Canadian policyholders.   --      --      114   
   Sales of businesses......................   --       5       31   
   Other, net...............................    8      32       16   
                                              ----    ----    -----  
Provision for income taxes.................. $525    $797    $ 435   
                                              ====    ====    =====  

Deferred income taxes represent the tax effect of the differences between 
the book and tax bases of assets and liabilities.                               

F-120 

485BPOS
284th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 284th
METROPOLITAN LIFE INSURANCE COMPANY AND SUBSIDIARIES  

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(Continued) 

Net deferred income tax assets and liabilities consisted of the following:

                                                                [Download Table]

                                               December 31,       
                                             -------------------- 
                                               2002       2001    
                                              -------    -------  
                                             (Dollars in millions)
                                                                  
Deferred income tax assets:                                       
   Policyholder liabilities and receivables. $ 3,020    $ 3,033   
   Net operating losses.....................     187        318   
   Employee benefits........................      --        123   
   Litigation related.......................      95        279   
   Other....................................     286        438   
                                              -------    -------  
                                               3,588      4,191   
   Less: Valuation allowance................      14        114   
                                              -------    -------  
                                               3,574      4,077   
                                              -------    -------  
Deferred income tax liabilities:............                      
   Investments..............................   1,597      2,053   
   Deferred policy acquisition costs........   2,699      2,756   
   Employee benefits........................      65         --   
   Net unrealized investment gains..........   1,124      1,037   
   Other....................................      36        124   
                                              -------    -------  
                                               5,521      5,970   
                                              -------    -------  
Net deferred income tax liability........... $(1,947)   $(1,893)  
                                              =======    =======  

  Domestic net operating loss carryforwards amount to $503 million at December
31, 2002 and will expire beginning in 2019. Foreign net operating loss          
carryforwards amount to $42 million at December 31, 2002 and were generated in  
various foreign countries with expiration periods of five years to infinity.    

The Company has recorded a valuation allowance related to tax benefits of 
certain foreign net operating loss carryforwards. The valuation allowance       
reflects management's assessment, based on available information, that it is    
more likely than not that the deferred income tax asset for certain foreign net 
operating loss carryforwards will not be realized. The tax benefit will be      
recognized when management believes that it is more likely than not that these  
deferred income tax assets are realizable.                                      

The Internal Revenue Service has audited the Company for the years through
and including 1996. The Company is being audited for the years 1997, 1998, and  
1999. The Company believes that any adjustments that might be required for open 
years will not have a material effect on the Company's consolidated financial   
statements.                                                                     

15.  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. This practice was initiated by   
different franchises for different products starting at various points in time  
between 1992 and 2000. Risks in excess of $25 million on single life policies   
and $30 million on survivorship policies are 100% coinsured. In addition, in    
1998, the Company reinsured substantially all of the                            

F-121 

485BPOS
285th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 285th
METROPOLITAN LIFE INSURANCE COMPANY AND SUBSIDIARIES  

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(Continued) 

mortality risk on its universal life policies issued since 1983. RGA retains a  
maximum of $4 million of coverage per individual life with respect to its       
assumed reinsurance business. 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 has exposure to catastrophes, which are an       
inherent risk of the property and casualty business and could contribute to     
significant fluctuations in the Company's results of operations. 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 Company has also protected itself through the purchase of combination 
risk coverage. This reinsurance coverage pools risks from several lines of      
business and includes individual and group life claims in excess of $2 million  
per policy, as well as excess property and casualty losses, among others.       

See Note 11 for information regarding certain excess of loss reinsurance  
agreements providing coverage for risks associated primarily with sales         
practices claims.                                                               

The amounts in the consolidated statements of income are presented net of 
reinsurance ceded. The effects of reinsurance were as follows:                  

                                                        [Enlarge/Download Table]

                                                             Years ended December 31, 
                                                            ------------------------- 
                                                              2002     2001     2000  
                                                            -------  -------  ------- 
                                                              (Dollars in millions)   
                                                                                      
Direct premiums............................................ $17,811  $16,257  $15,661 
Reinsurance assumed........................................   2,973    2,786    2,858 
Reinsurance ceded..........................................  (2,314)  (2,020)  (2,256)
                                                            -------  -------  ------- 
Net premiums............................................... $18,470  $17,023  $16,263 
                                                            =======  =======  ======= 
Reinsurance recoveries netted against policyholder benefits $ 2,631  $ 2,069  $ 1,934 
                                                            =======  =======  ======= 

Reinsurance recoverables, included in premiums and other receivables, were
$3,533 million and $3,312 million at December 31, 2002 and 2001, respectively,  
including $1,348 million and $1,356 million, respectively, relating to          
reinsurance of long-term guaranteed interest contracts and structured           
settlement lump sum contracts accounted for as a financing transaction.         
Reinsurance and ceded commissions payables, included in other liabilities, were 
$45 million and $103 million at December 31, 2002 and 2001, respectively.       

 Included in premiums and other receivables are reinsurance recoverables due
from Exeter Reassurance Company, Limited, a related party, of $502 million and  
$644 million at December 31, 2002 and 2001, respectively. Included in other     
policyholder funds are reinsurance liabilities assumed from MIAC, a related     
party, of $763 and $778 million at December 31, 2002 and 2001, respectively.    

Included in future policy benefits and other policyholder funds are       
reinsurance liabilities assumed from Cova Corporation , MetLife Investor's      
Group, Inc. and MetLife International Holdings, Inc., related parties, of $772  
million and $931 million, respectively, at December 31, 2002. These entities    
were sold at December 31, 2002. See note 12.                                    

F-122 

485BPOS
286th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 286th
METROPOLITAN LIFE INSURANCE COMPANY AND SUBSIDIARIES  

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(Continued) 

The following provides an analysis of the activity in the liability for   
benefits relating to property and casualty and group accident and non-medical   
health policies and contracts:                                                  

                                                                [Download Table]

                                   Years ended December 31, 
                                  ------------------------- 
                                    2002     2001     2000  
                                  -------  -------  ------- 
                                    (Dollars in millions)   
                                                            
Balance at January 1............. $ 4,597  $ 4,226  $ 3,790 
   Reinsurance recoverables......    (457)    (410)    (415)
                                  -------  -------  ------- 
Net balance at January 1.........   4,140    3,816    3,375 
                                  -------  -------  ------- 
Incurred related to:                                        
   Current year..................   4,116    4,182    3,786 
   Prior years...................     (85)     (84)    (112)
                                  -------  -------  ------- 
                                    4,031    4,098    3,674 
                                  -------  -------  ------- 
Paid related to:                                            
   Current year..................  (2,503)  (2,538)  (2,215)
   Prior years...................  (1,303)  (1,236)  (1,018)
                                  -------  -------  ------- 
                                   (3,806)  (3,774)  (3,233)
                                  -------  -------  ------- 
Net Balance at December 31.......   4,365    4,140    3,816 
   Add: Reinsurance recoverables.     478      457      410 
                                  -------  -------  ------- 
Balance at December 31........... $ 4,843  $ 4,597  $ 4,226 
                                  =======  =======  ======= 

16.  Other Expenses                                                             

Other expenses were comprised of the following:                           

                                                        [Enlarge/Download Table]

                                                                                 Years ended December 31, 
                                                                                ------------------------- 
                                                                                  2002     2001     2000  
                                                                                -------  -------  ------- 
                                                                                  (Dollars in millions)   
                                                                                                          
Compensation................................................................... $ 2,423  $ 2,447  $ 2,712 
Commissions....................................................................   1,938    1,649    1,638 
Interest and debt issue costs..................................................     242      312      436 
Amortization of policy acquisition costs (excludes amortization of $11, $21 and                           
  $(95), respectively, related to investment gains (losses))...................   1,501    1,434    1,472 
Capitalization of policy acquisition costs.....................................  (2,227)  (2,018)  (1,805)
Rent, net of sublease income...................................................     289      280      230 
Minority interest..............................................................      74       57      115 
Other..........................................................................   2,349    2,759    2,510 
                                                                                -------  -------  ------- 
   Total other expenses........................................................ $ 6,589  $ 6,920  $ 7,308 
                                                                                =======  =======  ======= 

17.  Stockholder's Equity                                                       

Dividend Restrictions                                                       

Under the New York Insurance Law, Metropolitan Life is permitted without  
prior insurance regulatory clearance to pay a stockholder dividend to the       
Holding Company as long as the aggregate amount of all such                     

F-123 

485BPOS
287th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 287th
METROPOLITAN LIFE INSURANCE COMPANY AND SUBSIDIARIES  

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(Continued) 

dividends in any calendar year does not exceed the lesser of (i) 10% of its     
surplus to policyholders as of the immediately preceding calendar year and (ii) 
its statutory net gain from operations for the immediately preceding calendar   
year (excluding realized capital gains). Metropolitan Life will be permitted to 
pay a stockholder dividend to the Holding Company in excess of the lesser of    
such two amounts only if it files notice of its intention to declare such a     
dividend and the amount thereof with the Superintendent and the Superintendent  
does not disapprove the distribution. Under the New York Insurance Law, the     
Superintendent has broad discretion in determining whether the financial        
condition of a stock life insurance company would support the payment of such   
dividends to its stockholders. The Department has established informal          
guidelines for such determinations. The guidelines, among other things, focus   
on the insurer's overall financial condition and profitability under statutory  
accounting practices. For the year ended December 31, 2002, Metropolitan Life   
paid to MetLife, Inc. $535 million in dividends for which prior insurance       
regulatory clearance was not required and $369 million in special dividends, as 
approved by the Superintendent. For the year ended December 31, 2001,           
Metropolitan Life paid to MetLife, Inc. $721 million in dividends for which     
prior insurance regulatory clearance was not required and $3,033 million in     
special dividends, as approved by the Superintendent. For the year ended        
December 31, 2000, Metropolitan Life paid to MetLife, Inc. $763 million in      
dividends for which prior insurance regulatory clearance was not required. Of   
the total dividend paid, $1,894 million (retained earnings from date of         
demutualization through the month the dividend was paid) was charged to         
retained earnings and $1,860 million was charged to additional paid-in-capital. 
At December 31, 2002, Metropolitan Life could pay the Holding Company a         
dividend of $662 million without prior approval of the Superintendent.          

Stock Compensation Plans                                                    

Under the MetLife, Inc. 2000 Stock Incentive Plan (the "Stock Incentive   
Plan"), awards may be granted to Metropolitan Life employees in the form of     
non-qualified or incentive stock options qualifying under Section 422A of the   
Internal Revenue Code. Under the MetLife, Inc. 2000 Directors Stock Plan, (the  
"Directors Stock Plan") awards granted may be in the form of stock awards or    
non-qualified stock options or a combination of the foregoing to outside        
Directors of the Company. The aggregate number of shares of stock that may be   
awarded under the Stock Incentive Plan is subject to a maximum limit of         
37,823,333 shares for the duration of the plan. The Directors Stock Plan has a  
maximum limit of 500,000 share awards.                                          

All options granted have an exercise price equal to the fair market value 
price of the Company's common stock on the date of grant, and an option's       
maximum term is ten years. Certain options under the Stock Incentive Plan       
become exercisable over a three-year period commencing with date of grant,      
while other options become exercisable three years after the date of grant.     
Options issued under the Directors Stock Plan are exercisable at any time after 
April 7, 2002.                                                                  

MetLife, Inc. applies APB 25 and related interpretations in accounting for
its stock-based compensation plans. Accordingly, in the measurement of          
compensation expense, the excess of market price over exercise price is         
utilized on the first date that both the number of shares and award price are   
known. For the years ended December 31, 2002 and 2001, compensation expense for 
non-employees related to MetLife, Inc.'s Stock Incentive Plan and Directors     
Stock Plan was $2 million and $1 million, respectively. This expense is         
allocated to the Company to properly reflect compensation expense related to    
Metropolitan Life employees.                                                    

Had the compensation cost for the MetLife, Inc. Stock Incentive Plan and  
Directors Stock Plan allocable to the Company been determined based on fair     
value at the grant date for awards under those plans consistent with the method 
of SFAS No. 123, the Company's net income for the years ended December 31, 2002 
and 2001 would have been reduced to a pro forma amount of $1,570 million and    
$1,468 million, respectively.                                                   

  The pro forma net income is not necessarily representative of the effects on
net income in future years. The pro forma net income includes the Company's     
ownership share of compensation costs related to RGA's incentive stock plan     
determined in accordance with SFAS 123.                                         

F-124 

485BPOS
288th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 288th
METROPOLITAN LIFE INSURANCE COMPANY AND SUBSIDIARIES  

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(Continued) 

The fair value of each option grant is estimated on the date of the grant 
using the Black-Scholes options-pricing model with the following weighted       
average assumptions used for grants for the:                                    

                                                                [Download Table]

                            2002       2001   
                         ----------- ---------
                                              
Dividend yield:.........    0.68%      0.68%  
Risk-free rate of return 4.74%-5.52%   5.72%  
Volatility.............. 25.3%-30.3%   31.6%  
Expected duration.......  4-6 years  4-6 years

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 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. As of December 31, 2001, New York State        
Statutory Accounting Practices did not provide for deferred income taxes. The   
Department has adopted a modification to its regulations, effective December    
31, 2002, with respect to the admissibility of deferred taxes by New York       
insurers, subject to certain limitations. Statutory net income of Metropolitan  
Life, as filed with the Department, was $1,478 million, $2,782 million and      
$1,027 million for the years ended 2002, 2001 and 2000, respectively; statutory 
capital and surplus, as filed, was $6,986 million and $5,358 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 Department required adoption of the Codification, with 
certain modifications, for the preparation of statutory financial statements    
effective January 1, 2001. Further modifications by state insurance departments 
may impact the effect of the Codification on the statutory capital and surplus  
of Metropolitan Life and the Holding Company's other insurance subsidiaries.    

F-125 

485BPOS
289th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 289th
METROPOLITAN LIFE INSURANCE COMPANY AND SUBSIDIARIES  

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(Continued) 

18.  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.............................. $ 2,904  $1,287  $2,807 
Income tax effect of holding gains................................................    (976)   (509)   (975)
Reclassification adjustments:                                                                              
   Recognized holding losses included in current year income......................     339     579     989 
   Amortization of premiums and accretion of discounts associated with                                     
     investments..................................................................    (440)   (475)   (498)
   Recognized holding gains allocated to other policyholder amounts...............    (139)    (33)    (54)
   Income tax effect..............................................................      75     (27)   (152)
Allocation of holding losses on investments relating to other policyholder                                 
  amounts.........................................................................  (2,453)   (158)   (977)
Income tax effect of allocation of holding losses to other policyholder amounts...     829      61     340 
Unrealized investment gain (losses) of subsidiary at date of sale.................      68    (173)     -- 
Deferred income taxes on unrealized investment gain (losses) of subsidiary at date                         
  of sale.........................................................................     (15)     64      -- 
                                                                                   -------  ------  ------ 
Net unrealized investment gains...................................................     192     616   1,480 
                                                                                   -------  ------  ------ 
Foreign currency translation adjustments arising during the year..................     137     (58)     (6)
Foreign currency translation of subsidiary at date of sale........................     (65)     19      -- 
                                                                                   -------  ------  ------ 
Foreign currency translation adjustment...........................................      72     (39)     (6)
Minimum pension liability adjustment..............................................      --     (18)     (9)
                                                                                   -------  ------  ------ 
Other comprehensive income........................................................ $   264  $  559  $1,465 
                                                                                   =======  ======  ====== 

19.  Business Segment Information                                               

The Company provides insurance and financial services to customers in the 
United States, Canada, Central America, South America, Europe, South Africa,    
Asia and Australia. The Company's business is divided into six major segments:  
Individual, Institutional, Reinsurance, Auto & Home, Asset Management and       
International. These segments are managed separately because they either        
provide different products and services, require different strategies or have   
different technology requirements.                                              

Individual offers a wide variety of individual insurance and investment   
products, including life insurance, annuities and mutual funds. Institutional   
offers a broad range of group insurance and retirement and savings products and 
services, including group life insurance, non-medical health insurance such as  
short and long-term disability, long-term care, and dental insurance, and other 
insurance products and services. Reinsurance provides primarily reinsurance of  
life and annuity policies in North America and various international markets.   
Additionally, reinsurance of critical illness policies is provided in select    
international markets. Auto & Home provides insurance coverages, including      
private passenger automobile, homeowners and personal excess liability          
insurance. Asset Management provides a broad variety of asset management        
products and services to individuals                                            

F-126 

485BPOS
290th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 290th
METROPOLITAN LIFE INSURANCE COMPANY AND SUBSIDIARIES  

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(Continued) 

and institutions. International provides life insurance, accident and health    
insurance, annuities and retirement and savings products to both individuals    
and groups, and auto and homeowners coverage to individuals.                    

 Set forth in the tables below is certain financial information with respect
to the Company's operating segments as of or 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, except for   
the method of capital allocation and the accounting for gains and losses from   
inter-company sales which are eliminated in consolidation. The Company          
allocates capital to each segment based upon an internal capital allocation     
system that allows the Company to more effectively manage its capital. The      
Company evaluates the performance of each operating segment based upon income   
or loss from operations before provision for income taxes and non-recurring     
items (e.g. items of unusual or infrequent nature). The Company allocates       
certain non-recurring items (primarily consisting of expenses associated with   
the resolution of proceedings alleging race-conscious underwriting practices,   
sales practices claims and claims for personal injuries caused by exposure to   
asbestos or asbestos-containing products and demutualization costs) to          
Corporate & Other.                                                              

                                                        [Enlarge/Download Table]

At or for the year ended                                                Auto     Asset                  Corporate          
December 31, 2002                 Individual Institutional Reinsurance & Home  Management International  & Other    Total  
------------------------          ---------- ------------- ----------- ------  ---------- ------------- --------- -------- 
                                                                    (Dollars in millions)                                  
                                                                                                                           
Premiums.........................  $  4,419     $ 8,254      $1,984    $2,828     $ --        $992       $    (7) $ 18,470 
Universal life and investment-                                                                                             
  type product policy fees.......     1,267         614          --        --       --          37            --     1,918 
Net investment income............     6,036       3,926         378       177       59         241          (117)   10,700 
Other revenues...................       454         607          42        26      166          10            95     1,400 
Net investment (losses) gains....      (131)       (508)          7       (46)      (4)         (9)          (39)     (730)
Policyholder benefits and                                                                                                  
 claims..........................     5,162       9,337       1,517     2,020       --         821             3    18,860 
Interest credited to policyholder                                                                                          
 account balances................     1,608         930         146        --       --          28            (1)    2,711 
Policyholder dividends...........     1,769         115          --        (1)      --          28            --     1,911 
Other expenses...................     2,543       1,529         616       794      211         373           523     6,589 
Income (loss) from continuing                                                                                              
 operations before provision for                                                                                           
 income taxes....................       963         982         132       172       10          21          (593)    1,687 
Income from discontinued                                                                                                   
 operations, net of income                                                                                                 
 taxes...........................       201         122          --        --       --          --           127       450 
Net income (loss)................       811         759          86       131        6          21          (202)    1,612 
Total assets.....................   120,284      94,911       9,458     4,944      191         795        18,812   249,395 
Deferred policy acquisition                                                                                                
 costs...........................     7,448         608       1,429       175       --           5             1     9,666 
Goodwill, net....................        73          62          96       156       18          --            --       405 
Separate account assets..........    21,982      31,935          11        --       --          --           (16)   53,912 
Policyholder liabilities.........    84,844      55,460       6,734     2,673       --         248          (343)  149,616 
Separate account liabilities.....    21,982      31,935          11        --       --          --           (16)   53,912 

F-127 

485BPOS
291st Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 291st
METROPOLITAN LIFE INSURANCE COMPANY AND SUBSIDIARIES  

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(Continued) 

                                                        [Enlarge/Download Table]

At or for the year ended                                                Auto     Asset                  Corporate          
December 31, 2001                 Individual Institutional Reinsurance & Home  Management International  & Other    Total  
------------------------          ---------- ------------- ----------- ------  ---------- ------------- --------- -------- 
                                                                    (Dollars in millions)                                  
                                                                                                                           
Premiums.........................  $  4,531     $ 7,288      $1,664    $2,755     $ --       $  788      $    (3) $ 17,023 
Universal life and investment-                                                                                             
 type product policy fees........     1,245         592          --        --       --           38           (1)    1,874 
Net investment income............     6,130       3,965         349       200       71          256          151    11,122 
Other revenues...................       527         649          35        22      198           16           85     1,532 
Net investment gains (losses)....       838         (15)        (10)      (17)      25          (16)         122       927 
Policyholder benefits and                                                                                                  
 claims..........................     5,213       8,924       1,373     2,121       --          632            2    18,265 
Interest credited to policyholder                                                                                          
 account balances................     1,850       1,012         122        --       --           51           --     3,035 
Policyholder dividends...........     1,767         259          --        --       --           34           --     2,060 
Other expenses...................     2,763       1,746         478       800      252          315          566     6,920 
Income (loss) from continuing                                                                                              
 operations before provision                                                                                               
 for income taxes................     1,678         538          65        39       42           50         (214)    2,198 
Income from discontinued                                                                                                   
 operations, net of income                                                                                                 
 taxes...........................        38          23          --        --       --           --           25        86 
Net income (loss)................     1,092         383          39        41       27           16         (111)    1,487 
Total assets.....................   127,499      89,620       7,496     4,567      256        3,385       15,042   247,865 
Deferred policy acquisition                                                                                                
 costs...........................     8,371         509       1,147       179       --          263            2    10,471 
Goodwill, net....................       223          55         106       159       20           12           --       575 
Separate account assets..........    31,261      31,177          13        --       --          277          (14)   62,714 
Policyholder liabilities.........    84,637      52,035       5,062     2,610       --        1,987         (323)  146,008 
Separate account liabilities.....    31,261      31,177          13        --       --          277          (14)   62,714 

For the year ended                                                     Auto &    Asset                  Corporate          
December 31, 2000                 Individual Institutional Reinsurance  Home   Management International  & Other    Total  
------------------                ---------- ------------- ----------- ------  ---------- ------------- --------- -------- 
                                                                    (Dollars in millions)                                  
Premiums.........................  $  4,625     $ 6,900      $1,444    $2,636     $ --       $  660      $    (2) $ 16,263 
Universal life and investment-                                                                                             
 type product policy fees........     1,221         547          --        --       --           53           (1)    1,820 
Net investment income............     6,110       3,712         368       194       90          254          301    11,029 
Other revenues...................       680         650          29        40      760            9           91     2,259 
Net investment gains (losses)....       199        (475)         (2)      (20)      --           18         (138)     (418)
Policyholder benefits and                                                                                                  
 claims..........................     5,045       8,178       1,147     2,005       --          562           (2)   16,935 
Interest credited to policyholder                                                                                          
 account balances................     1,680       1,090         109        --       --           56           --     2,935 
Policyholder dividends...........     1,742         124          15        --       --           32           --     1,913 
Payments to former Canadian                                                                                                
 policyholders...................        --          --          --        --       --          327           --       327 
Demutualization costs............        --          --          --        --       --           --          230       230 
Other expenses...................     3,005       1,514         452       827      784          292          434     7,308 
Income (loss) from continuing                                                                                              
 operations before provision                                                                                               
 for income taxes................     1,363         428         116        18       66         (275)        (411)    1,305 
Income from discontinued                                                                                                   
 operations, net of income                                                                                                 
 taxes...........................        36          21          --        --       --           --           22        79 
Net income (loss)................       892         307          68        30       34         (285)         (97)      949 

F-128 

485BPOS
292nd Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 292nd
METROPOLITAN LIFE INSURANCE COMPANY AND SUBSIDIARIES  

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(Continued) 

For the year ended December 31, 2001 the Institutional, Individual,       
Reinsurance and Auto & Home segments include $287 million, $24 million, $9      
million and $5 million, respectively, of pre-tax losses associated with the     
September 11, 2001 tragedies. See Note 2.                                       

  The Institutional, Individual and Auto & Home segments include $399 million,
$97 million and $3 million, respectively, in pre-tax charges associated with    
business realignment initiatives for the year ended December 31, 2001. See Note 
13.                                                                             

For the year ended December 31, 2001, the Individual segment includes $118
million of pre-tax expenses associated with the establishment of a policyholder 
liability for certain group annuity policies.                                   

For the year ended December 31, 2001, pre-tax gross investment gains of   
$1,027 million, $142 million and $357 million resulting from the sale of        
certain real estate properties to MIAC are included in the Individual segment,  
Institutional segment and Corporate & Other, respectively.                      

 The Individual segment included an equity ownership interest in Nvest under
the equity method of accounting. Nvest was included within the Asset Management 
segment due to the types of products and strategies employed by the entity. The 
Individual segment's equity in earnings of Nvest, which is included in net      
investment income, was $30 million for the year ended December 31, 2000. The    
Individual segment includes $538 million (after allocating $118 million to      
participating contracts) of the pre-tax gross investment gain on the sale of    
Nvest in 2000.                                                                  

  As part of the GenAmerica acquisition in 2000, the Company acquired Conning,
the results of which are included in the Asset Management segment due to the    
types of products and strategies employed by the entity from its acquisition    
date to July 2001, the date of its disposition. The Company sold Conning,       
receiving $108 million in the transaction and reported a gain of approximately  
$25 million in the third quarter of 2001.                                       

The Corporate & Other segment consists of various start-up entities and   
run-off entities, as well as the elimination of all intersegment amounts. The   
principal component of the intersegment amounts relates to intersegment loans,  
which bear interest rates commensurate with related borrowings. In addition,    
the elimination of the Individual segment's ownership interest in Nvest is      
included for the year ended December 31, 2000.                                  

  Net investment income and net investment gains and losses are based upon the
actual results of each segment's specifically identifiable asset portfolio      
adjusted for allocated capital. Other costs and operating costs were allocated  
to each of the segments based upon: (i) a review of the nature of such costs,   
(ii) time studies analyzing the amount of employee compensation costs incurred  
by each segment, and (iii) cost estimates included in the Company's product     
pricing.                                                                        

Revenues derived from any customer did not exceed 10% of consolidated     
revenues. Revenues from U.S. continuing operations were $30,487 million,        
$31,396 million and $29,959 million for the years ended December 31, 2002, 2001 
and 2000, respectively, which represented 96%, 97% and 97%, respectively, of    
consolidated revenues.                                                          

20.  Discontinued Operations                                                    

  The Company actively manages its real estate portfolio with the objective to
maximize earnings through selective acquisitions and dispositions. Accordingly, 
the Company sold certain real estate holdings out of its                        

F-129 

485BPOS
293rd Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 293rd
METROPOLITAN LIFE INSURANCE COMPANY AND SUBSIDIARIES  

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(Continued) 

portfolio during 2002. In accordance with SFAS No. 144, income related to real  
estate classified as held-for-sale on or after January 1, 2002 is presented as  
discontinued operations.                                                        

The following table presents the components of income from discontinued   
operations:                                                                     

                                                                [Download Table]

                                        Years Ended December 31,
                                        ----------------------- 
                                         2002     2001    2000  
                                         -----   -----   -----  
                                        (Dollars in millions)   
                                                                
Investment income...................... $ 375    $ 422   $ 418  
Investment expense.....................  (251)    (297)   (297) 
Net investment gains...................   582       --      --  
                                         -----   -----   -----  
   Total revenues......................   706      125     121  
Provision for income taxes.............   256       39      42  
                                         -----   -----   -----  
   Income from discontinued operations. $ 450    $  86   $  79  
                                         =====   =====   =====  

The carrying value of real estate related to discontinued operations was  
$223 million and $1,580 million at December 31, 2002, and 2001, respectively.   
See Note 19 for discontinued operations by business segment.                    

21.  Related Parties                                                            

Effective January 1, 2003, MetLife Group, Incorporated, a New York        
corporation and wholly owned subsidiary of the Holding Company, was formed as a 
personnel services company to provide personnel, as needed, to support the      
activities of the Company.                                                      

F-130 

485BPOS
294th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 294th
PART II 
OTHER INFORMATION 

ITEM 24. FINANCIAL STATEMENTS AND EXHIBITS                                      

(A) FINANCIAL STATEMENTS                                              

   The following financial statements are included in Part B of this
Post-Effective Amendment on Form N-4:                         

Metropolitan Life Separate Account E                    
Independent Auditors' Report                      

           Financial Statements for the Years Ended December 31, 2001 and 2002

Statements of Assets and Liabilities              
Statements of Operations                          
Statements of Changes in Net Assets               
Notes to Financial Statements                     

Metropolitan Life Insurance Company                     
Independent Auditors' Report                      

              Financial Statements for the Years Ended December 31, 2002, 2001
and 2000                                          

Consolidated Balance Sheets                       
Consolidated Statements of Income                 
Consolidated Statements of Cash Flow              
Consolidated Statements of Equity                 
Notes to Consolidated Financial Statements        

(B) EXHIBITS                                                          

 (1)      -- Resolution of the Board of Directors of Metropolitan Life
establishing Separate Account E.(1)         
(2)       -- Not applicable.                                          
(3)(a)    -- Not applicable.                                          

(b)    -- Form of Selected Broker Agreement.(6)                 
(c)    -- Participation Agreement--New England Zenith Fund(8)   
     (d)    -- Participation Agreement--American Funds Insurance Series(6)

  (e)    -- Participation Agreement--Met Investors Series Trust (11)

(4)       -- Form of Deferred Annuity Contract.(6)                    

       (a)    -- ROTH Individual Retirement Annuity Endorsement--Form ML-446.2
(9/02)(12)                                  
 (b)    -- 401(a)/403(a) Plan Endorsement. Form ML-401.2(9/02)(12)
  (c)    -- Individual Retirement Annuity Endorsement. Form ML-408.2
(9/02)(12)                                  
(d)    -- SIMPLE Individual Retirement Annuity Endorsement.     
Form: ML-439.1 (9/02)(12)                   
     (e)    -- Tax Sheltered Annuity Endorsement. Form ML-398.2 (9/02)(12)

(5)       -- Application Form for the Deferred Annuity (6)            

(6)(a)    -- Amended and Restated Charter of Metropolitan Life.(4)(9) 
(b)    -- Restated By-Laws of Metropolitan Life.(4)(9)          

(7)       -- Not applicable.                                          
(8)       -- Not applicable.                                          
(9)       -- Opinion and consent of counsel as to the legality of the 
securities being registered.(7)             

(10)       -- Consent of Auditors(12)                                   

(11)       -- Not applicable.                                           
(12)       -- Not applicable.                                           

(13)(a)    -- Powers of Attorney.(2,3,5,7,10,11,12)                     

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

1. Filed with Post-Effective Amendment No. 19 to Registration Statement         
  No. 2-90380/811-4001 for Metropolitan Life Separate Account E on Form N-4 on
February 28, 1996. As incorporated herein by reference.                   

II-1  

485BPOS
295th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 295th
2.  Powers of Attorney for Robert H. Benmosche and Stewart G. Nagler filed with 
Post-Effective Amendment No. 23 to Registration Statement No.           
2-90380/811-4001 for Metropolitan Life Separate Account E on Form N-4 on
April 3, 1998. As incorporated herein by reference.                     

3.  Power of Attorney for Virginia M. Wilson filed with Pre-Effective Amendment 
No. 2 to Registration Statement 333-80547/811-4001 for Metropolitan Life
  Separate Account E on Form N-4 on November 1, 1999. As incorporated herein
by reference.                                                           

4.  Filed with Post Effective Amendment No. 26 to Registration Statement No.    
2-90380/811-4001 for Metropolitan Life Separate Account E on Form N-4 on
April 6, 2000, as incorporated herein by reference.                     

5.  Power of Attorney for William C. Steere, Jr. filed with Post-Effective      
Amendment No. 18 to Registration Statement No. 33-57320 for Metropolitan
Life Separate Account UL on Form S-6 on April 23, 1999. As incorporated 
herein by reference.                                                    

6.  Filed with Pre-Effective Amendment No.1 to Registration Statement Nos: 333- 
52366/811-4001 on August 3, 2001, as incorporated herein by reference.  

7.  Power of Attorney for John C. Danforth filed with Post-Effective Amendment  
   No. 27 to Registration Statement No. 2-90380/811-4001 for Metropolitan Life
Separate Account E Form N-4 in April 3, 2001. As incorporated herein by 
reference.                                                              

8.  Filed with Post-Effective Amendment No. 10 to Registration Statement        
No. 33-57320 for Metropolitan Life Separate Account UL on Form S-6 on   
September 18, 2000. As incorporated herein by reference.                

9.  Filed with Post Effective Amendment No.8 to Registration Statement No.      
333-83716/811-4001 for Metropolitan Separate Account E on Form N-4 on   
March 5, 2002 as incorporated herein by reference.                      

10. Powers of Attorney for Harry P. Kamen, Curtis H. Barnette, Charles M.       
   Leighton, Burton A. Dole, Gerald Clark, Helene L. Kaplan, James R. Houghton
   and Hugh B. Price filed with Post-Effective Amendment No. 5 to Registration
Statement No. 33-47927 for Metropolitan Life Separate Account UL on Form
S-6 on April 30, 1997, as incorporated herein by reference.             

11. Power of Attorney for John J. Phelan, Jr. filed with Post-Effective         
Amendment No. 22 to Registration Statement No. 2-90380/811-4001 for     
Metropolitan Life Separate Account E on Form N-4 on April 30, 1997, as  
incorporated herein by reference.                                       

12. Filed herewith.                                                             

ITEM 25. DIRECTORS AND OFFICERS OF THE DEPOSITOR.                               

                                                        [Enlarge/Download Table]

                                   PRINCIPAL OCCUPATION &           POSITIONS AND OFFICES   
          NAME                        BUSINESS ADDRESS                 WITH DEPOSITOR       
------------------------- ----------------------------------------  ---------------------   
                                                                                            
Robert H. Benmosche...... Chairman of the Board, President and      Chairman, President,    
                          Chief Executive Officer, MetLife, Inc.    Chief Executive         
                          and Metropolitan Life Insurance Company,  Officer and Director    
                          One Madison Avenue,                                               
                          New York, NY 10010.                                               

Curtis H. Barnette....... Chairman Emeritus, Bethlehem Steel        Director                
                          Corporation,                                                      
                          1170 Eighth Avenue,                                               
                          Martin Tower 101,                                                 
                          Bethlehem, PA 18016-7699.                                         

Gerald Clark............. Vice-Chairman of the Board and            Vice-Chairman,          
                          Chief Investment Officer, MetLife, Inc.   Chief Investment Officer
                          and Metropolitan Life Insurance Company,  and Director            
                          One Madison Avenue,                                               
                          New York, NY 10010.                                               

John C. Danforth......... Partner                                   Director                
                          Bryan Cave LLP,                                                   
                          One Metropolitan Square                                           
                          211 North Broadway,                                               
                          Suite 3600,                                                       
                          St. Louis, MO 63102.                                              

Burton A. Dole, Jr....... Retired Chairman,                         Director                
                          Nelleor Puritan Bennett,                                          
                          P.O. Box 208                                                      
                          Carlsbad, CA 92018.                                               

James R. Houghton........ Chairman of the Board and                 Director                
                          Chief Executive Officer                                           
                          Corning Incorporated,                                             
                          80 East Market Street, 2nd Floor,                                 
                          Corning, NY 14830.                                                

Harry P. Kamen........... Retired Chairman and Chief Executive      Director                
                          Officer,                                                          
                          Metropolitan Life Insurance Company,                              
                          200 Park Avenue, Suite 5700                                       
                          New York, NY 10166.                                               

II-2  

485BPOS
296th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 296th
                                                        [Enlarge/Download Table]

                                   PRINCIPAL OCCUPATION &           POSITIONS AND OFFICES
          NAME                        BUSINESS ADDRESS                 WITH DEPOSITOR    
          ----                     ----------------------           ---------------------
                                                                                         
Helene L. Kaplan......... Of Counsel, Skadden, Arps, Slate,         Director             
                          Meagher and Flom, LLP                                          
                          Four Times Square,                                             
                          New York, NY 10036.                                            

Catherine R. Kinney...... Group Executive Vice President,           Director             
                          Co-Chief Operating Officer,                                    
                          President and Executive Vice Chairman                          
                          New York Stock Exchange, Inc.                                  
                          11 Wall Street, 6th Floor                                      
                          New York, NY 10005                                             

Charles M. Leighton...... Retired Chairman of the Board and Chief   Director             
                          Executive Officer,                                             
                          CML Group, Inc.,                                               
                          51 Vaughn Hill Road,                                           
                          Bolton, MA 01720.                                              

Stewart G. Nagler........ Vice-Chairman of the Board and            Vice-Chairman, Chief 
                          Chief Financial Officer, MetLife, Inc.    Financial Officer    
                          and Metropolitan Life Insurance Company,  and Director         
                          One Madison Avenue,                                            
                          New York, NY 10010.                                            

John J. Phelan, Jr....... Former Chairman and                       Director             
                          Chief Executive Officer,                                       
                          New York Stock Exchange, Inc.                                  
                          P.O. Box 524,                                                  
                          Locust Valley, NY 11560.                                       

Hugh B. Price............ President and Chief Executive Officer,    Director             
                          National Urban League, Inc.,                                   
                          120 Wall Street, 7th & 8th Floors,                             
                          New York, NY 10005.                                            

William C. Steere, Jr.... Chairman of the Board                     Director             
                          Pfizer, Inc.,                                                  
                          235 East 42nd Street,                                          
                          New York, NY 10016                                             

II-3  

485BPOS
297th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 297th
   Set forth below is a list of the executive officers of Metropolitan Life.
The principal business address of each officer of Metropolitan Life is One      
Madison Avenue, New York, New York 10010.                                       

NAME OF OFFICER                  POSITION WITH METROPOLITAN LIFE  
---------------                  -------------------------------  

Robert H. Benmosche........... Chairman, Chief Executive Officer and Director   
Gerald Clark.................. Vice-Chairman, Chief Investment Officer and      
Director          
Stewart G. Nagler............. Vice-Chairman, Chief Financial Officer and       
Director          
C. Robert Henrikson........... President, U.S. Insurance and Financial Services 
William J. Toppeta............ President, International                         
Gary A. Beller................ Senior Executive Vice-President and General      
Counsel           
Catherine A. Rein............. Senior Executive Vice-President; President and   
                              Chief Executive Officer of MetLife Auto and Home
Lisa M. Weber................. Senior Executive Vice-President, Chief           
    Administrative Officer
Daniel J. Cavanaugh........... Executive Vice-President                         
Jeffrey J. Hodgman............ Executive Vice-President                         
Judy E. Weiss................. Executive Vice-President                         
Joseph A. Reali............... Senior Vice-President and Tax Director           
John E. Welch................. Senior Vice-President and General Auditor        
Anthony Williamson............ Senior Vice-President and Treasurer              
Virginia M. Wilson............ Senior Vice-President and Controller             
Mary Ann Brown................ Senior Vice-President and Chief Actuary          
Gwenn L. Carr................. Vice-President and Secretary                     

ITEM 26. PERSONS CONTROLLED BY OR UNDER COMMON CONTROL WITH THE DEPOSITOR OR    
REGISTRANT.                                                                     

     The registrant is a separate account of Metropolitan Life Insurance Company
under the New York Insurance law. Under said law the assets allocated to the    
separate account are the property of Metropolitan Life Insurance Company, which 
is a wholly-owned subsidiary of MetLife Inc. The following outline indicates    
those persons who are controlled by or under common control with Metropolitan   
Life Insurance Company:                                                         

II-4

485BPOS
298th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 298th
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)                                                     

1 

485BPOS
299th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 299th
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)                          

2 

485BPOS
300th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 300th
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.

3 

485BPOS
301st Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 301st
               (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.         

4 

485BPOS
302nd Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 302nd
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.                             

5 

485BPOS
303rd Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 303rd
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.           

6 

485BPOS
304th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 304th
                 (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)                       

7 

485BPOS
305th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 305th
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.

8 

485BPOS
306th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 306th
(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)

9 

485BPOS
307th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 307th
                           (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.         

10

485BPOS
308th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 308th
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.                                                                        

11

485BPOS
309th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 309th
ITEM 27. NUMBER OF CONTRACTOWNERS.                                              

As of February 28, 2003 Non-Qualified: 8,865;                         
Qualified: 13,899                                                               

ITEM 28. INDEMNIFICATION                                                        

 UNDERTAKING PURSUANT TO RULE 484(B)(1) UNDER THE SECURITIES ACT OF 1933

  MetLife, Inc. has secured a Financial Institutions Bond in the amount of
$50,000,000, subject to a $5,000,000 deductible. MetLife, Inc. maintains a      
directors' and officers' liability policy with a maximum coverage of $300       
million. Metropolitan Life Insurance Company, a subsidiary of MetLife, Inc. is  
covered under the Financial Institutions Bond and directors' and officers'      
policy. A provision in Metropolitan Life Insurance Company's by-laws provides   
for the indemnification (under certain circumstances) of individuals serving as 
directors or officers of Metropolitan Life Insurance Company.                   

   Insofar as indemnification for liability arising under the Securities Act
of 1933 may be permitted to directors, officers and controlling persons of      
Metropolitan Life Insurance Company pursuant to the foregoing provisions, or    
otherwise, Metropolitan 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   
Metropolitan of expenses incurred or paid by a director, officer or controlling 
person or Metropolitan in the successful defense of any action, suit or         
proceeding) is asserted by such director, officer or controlling person in      
connection with the securities being registered, Metropolitan Life will, unless 
in the opinion of its counsel the matter has been settled by controlling        
precedent, submit to a court of appropriate jurisdiction the question whether   
such indemnification by it is against public policy as expressed in the Act and 
will be governed by the final adjudication of such issue.                       

ITEM 29. PRINCIPAL UNDERWRITERS.                                                

(a) The principal underwriter of the registrant is Metropolitan Life  
Insurance Company. Metropolitan Life Insurance Company acts in the following    
capacities with respect to the following investment companies:                  

Metropolitan Tower Life Separate Account One (principal underwriter)            
Metropolitan Tower Life Separate Account Two (principal underwriter)            
Metropolitan Life Separate Account UL (principal underwriter)                   
Metropolitan Series Fund, Inc. (principal underwriter and sub-investment        
adviser)                                                                    
The New England Variable Annuity (depositor)                                    
New England Variable Annuity Fund I (depositor)                                 

(b) See response to Item 25 above.                                    

(c)                                                                   
(1)                                     (2) 

NAME OF PRINCIPAL UNDERWRITER           NET UNDERWRITING DISCOUNTS AND
Metropolitan Life Insurance Company                 COMMISSIONS             
                                       N/A

(3)                                     (4) 

COMPENSATION ON REDEMPTION OR               BROKERAGE COMMISSIONS     
ANNUITIZATION                                       
$301,339.86                            N/A  

(5)                                         

COMPENSATION                                        

$1,325,204.88 (Separate Account Charge)                                 

II-5

485BPOS
310th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 310th
Item 30. Location of Account and Records.                                       

Metropolitan Life Insurance Company                                             
One Madison Avenue                                                              
New York, N.Y. 10010                                                            

Item 31. Management Services.                                                   

Not Applicable                                                        

Item 32. Undertakings.                                                          

   (a) The undersigned registrant hereby undertakes to file a post-effective
amendment to this registration statement as frequently as is necessary to ensure
that the financial statements in this registration statement are not more than  
16 months old for as long as payments under these variable annuity contracts may
be accepted.                                                                    

    (b) The undersigned registrant hereby undertakes to include a post card or
similar written communication affixed to or included in the prospectus that the 
applicant can remove to send for a Statement of Additional Information.         

   (c) The undersigned registrant hereby undertakes to deliver any Statement
of Additional Information and any financial statements required to be made      
available under this form promptly upon written or oral request.                

(d) The undersigned registrant represents that it is relying on the   
exemptions form certain provisions of Sections 22(e) and 27 of the Investment   
Company Act of 1940 provided by Rule 6c-7 under the Act. The registrant further 
represents that the provisions of paragraph (a)-(d) of Rule 6c-7 have been      
complied with.                                                                  

(e) Metropolitan Life Insurance Company represents that the fees and  
charges deducted under the Deferred Annuity described in this Registration      
Statement, in the aggregate, are reasonable in relation to the services         
rendered, the expenses to be incurred, and the risks assumed by Metropolitan    
Life Insurance Company under the Deferred Annuity.                              

II-6

485BPOS
311th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 311th
SIGNATURES

     As required by the Securities Act of 1933 and the Investment Company Act of
1940, the Registrant certifies that it meets the requirements of Securities Act 
Rule 485(b) for effectiveness of this Registration Statement and has caused this
Registration Statement to be signed on its behalf, in the City of New York, and 
State of New York on this 9th day of April, 2003.                               

                Metropolitan Life Separate Account E
(Registrant)        

                   By: Metropolitan Life Insurance Company
(Depositor)         

                                /s/ Gary A. Beller
                              By: ______________________________________________
                                (Gary A. Beller)
                               Senior Executive Vice-President and General
                               Counsel

               Metropolitan Life Insurance Company
(Depositor)         

                                /s/ Gary A. Beller
                              By: ______________________________________________
                                (Gary A. Beller)
                               Senior Executive Vice-President and General
                               Counsel

II-7

485BPOS
312th Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 312th
SIGNATURES

As required by the Securities Act of 1933, this Registration Statement has  
been signed by the following persons in the capacities and on the dates         
indicated.                                                                      

                                                                [Download Table]

              Signature                          Title                   Date 
              ---------                          -----                   ---- 

                                                                              
                 *                     Chairman, President, Chief             
______________________________________  Executive Officer and                 
         Robert H. Benmosche            Director                              

                 *                     Vice Chairman, Chief                   
______________________________________  Investment Officer and                
             Gerald Clark               Director                              

                 *                     Vice Chairman, Chief                   
______________________________________  Financial Officer                     
          Stewart G. Nagler             (Principal Financial                  
                                        Officer) and Director                 

                 *                     Senior Vice-President and              
______________________________________  Controller                            
          Virginia M. Wilson                                                  

                 *                     Director                               
______________________________________                                        
          Curtis H. Barnette                                                  

                 *                     Director                               
______________________________________                                        
           John C. Danforth                                                   

                 *                     Director                               
______________________________________                                        
         Burton A. Dole, Jr.                                                  

                 *                     Director                               
______________________________________                                        
          James R. Houghton                                                   

                 *                     Director                               
______________________________________                                        
           Harry P. Kamen                                                     

                 *                     Director                               
______________________________________                                        
           Helene L. Kaplan                                                   

                 *                     Director                               
______________________________________                                        
        Catherine R. Kinney                                                   

 /s/ Christopher Nicholas, Esq.                                  April 9, 2003
*By: _________________________________                                        
      Christopher Nicholas, Esq.                                              
           Attorney-in-Fact                                                   

II-8  

485BPOS
Last Page of 313
TOC
1st
Previous
Next
↓Bottom
Just 313th
                                                                [Download Table]

              Signature                          Title                   Date   
              ---------                          -----                   ----   

                                                                                
                 *                                                              
______________________________________  Director                                
         Charles M. Leighton                                                    

                 *                                                              
______________________________________  Director                                
         John J. Phelan, Jr.                                                    

                 *                                                              
______________________________________  Director                                
           Hugh B. Price                                                        

                 *                      Director                                
______________________________________                                          
       William C. Steere, Jr.                                                   

 /s/ Christopher Nicholas, Esq.                                    April 9, 2003
*By: _________________________________                                          
      Christopher Nicholas, Esq.                                                
           Attorney-in-Fact                                                     

II-9