<PAGE>
                                    FORM 10-K

                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

                  ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934

                  For the fiscal year ended December 31, 2001

              Commission File Nos. 33-34562; 33-60288; 333-48983

                      ML LIFE INSURANCE COMPANY OF NEW YORK
             (Exact name of Registrant as specified in its charter)

          New York                                       16-1020455
-------------------------------              ----------------------------------
(State or other jurisdiction of             (I.R.S. Employer Identification No.)
incorporation or organization)

                          100 Church Street, 11th Floor
                          New York, New York 10080-6511
                     --------------------------------------
                    (Address of Principal Executive Offices)

                                 1-800-333-6524
                  ----------------------------------------------
                 (Registrant's telephone no. including area code)

       Securities registered pursuant to Section 12(b) or 12(g) of the Act: None

       Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes X   No
                                             ---    ---

       Indicate by check mark if disclosure of delinquent filers pursuant to
Item 405 of Regulation S-K is not contained herein, and will not be contained,
to the best of registrant's knowledge, in definitive proxy or information
statements incorporated by reference in Part III of this Form 10-K or any
amendment to this Form 10-K. [X]

                    APPLICABLE ONLY TO CORPORATE REGISTRANTS

       Indicate the number of shares outstanding of each of the registrant's
classes of common stock, as of the latest practicable date.

                                                      Common 220,000
                                                             -------

       REGISTRANT MEETS THE CONDITIONS SET FORTH IN GENERAL INSTRUCTION I(1)(a)
AND (b) OF FORM 10-K AND IS THEREFORE FILING THIS FORM WITH THE REDUCED
DISCLOSURE FORMAT.



<PAGE>

                                     PART I

Item 1. Business.

        The Registrant is engaged in the sale of life insurance and annuity
products. The Registrant is a stock life insurance company organized under the
laws of the State of New York on November 28, 1973. The Registrant is currently
subject to primary regulation by the New York State Insurance Department. The
Registrant is a direct wholly owned subsidiary of Merrill Lynch Insurance Group
("MLIG"). MLIG is an indirect wholly owned subsidiary of Merrill Lynch & Co.,
Inc. ("Merrill Lynch & Co."), a corporation whose common stock is traded on the
New York Stock Exchange.

        Information pertaining to contract owner deposits, contract owner
account balances, and capital contributions can be found in the Registrant's
financial statements which are contained herein.

        The Registrant is currently licensed to conduct life insurance and
annuity business in nine states. It currently markets its annuity products and
variable life insurance products only in the state of New York. During 2001,
annuity and life insurance sales were made principally in New York (97%, as
measured by total contract owner deposits).

        The Registrant's life insurance and annuity products are sold by
licensed agents affiliated with Merrill Lynch Life Agency, Inc. ("MLLA"), a
wholly owned subsidiary of Merrill Lynch, Pierce, Fenner & Smith Incorporated
("MLPF&S"), pursuant to a general agency agreement by and between the Registrant
and MLLA. At December 31, 2001, approximately 1,266 agents of MLLA were
authorized to act for the Registrant.

Item 2. Properties.

        The Registrant's home office is located at 100 Church Street, 11th
Floor, New York, New York. This office space is leased from MLPF&S. In addition,
personnel performing services for the Registrant pursuant to its Management
Services Agreement operate in MLIG office space. MLIG occupies certain
office space in Princeton, New Jersey through Merrill Lynch & Co. An allocable
share of the cost of each of these premises is paid by the Registrant through
the service agreement with MLIG. Merrill Lynch Insurance Group
Services, Inc. ("MLIGS"), an affiliate of MLIG owns office space in
Jacksonville, Florida. MLIGS also leases certain office space in Springfield,
Massachusetts from Picknelly Family Limited Partnership. During 2001, MLIGS
consolidated operations into the Jacksonville, Florida location. MLIGS continues
to lease the office space in Springfield, Massachusetts, although there are no
personnel at that location.


Item 3. Legal Proceedings.

        There is no material pending litigation to which the Registrant is a
party or of which any of its property is the subject, and there are no legal
proceedings contemplated by any governmental authorities against the Registrant
of which it has any knowledge.

Item 4. Submission of Matters to a Vote of Security Holders.


        Information called for by this item is omitted pursuant to General
Instruction I. of Form 10-K.

                                    PART II

Item 5. Market for Registrant's Common Equity and Related Stockholder Matters.

        (a) The Registrant is a wholly owned subsidiary of MLIG, which is an
indirect wholly owned subsidiary of Merrill Lynch & Co. MLIG is the sole record
holder of Registrant's shares. Therefore, there is no public trading market for
Registrant's common stock.

        During 2001, the Registrant did not pay any dividends. During 2000,
the Registrant paid a $35,000,000 dividend to MLIG. No other cash dividends have
been declared on Registrant's common stock at any time during the two most
recent fiscal years. Under laws applicable to insurance companies domiciled in
the State of New York, notice of intention to declare a dividend must be filed
with the New York Superintendent of Insurance who may disallow the payment. See
Note 7 to the Registrant's financial statements.

        (b) Not applicable.

Item 6. Selected Financial Data.

        Information called for by this item is omitted pursuant to General
        Instruction I. of Form 10-K.



                                    - 2 -
<PAGE>

Item 7. Management's Discussion and Analysis of Financial Condition and Results
        of Operations.

This Management's Discussion and Analysis of Financial Condition and Results of
Operations should be read in conjunction with the Financial Statements and Notes
to Financial Statements included herein.

In addition to providing historical information, ML of New York may make or
publish forward-looking statements about management expectations, strategic
objectives, business prospects, anticipated financial performance, and other
similar matters. A variety of factors, many of which are beyond ML of New York's
control, affect the operations, performance, business strategy, and results of
ML of New York and could cause actual results and experience to differ
materially from the expectations and objectives expressed in these statements.
These factors include, but are not limited to, the factors listed in the
Business Environment and Economic Environment sections listed below, as well as
actions and initiatives taken by both current and potential competitors and the
effect of current, pending, and future legislation and regulation. ML OF NEW
YORK UNDERTAKES NO RESPONSIBILITY TO UPDATE OR REVISE ANY FORWARD-LOOKING
STATEMENTS.

FINANCIAL EXPOSURE RELATED TO THE EVENTS OF SEPTEMBER 11, 2001

ML of New York has determined that its financial exposure related to the events
and aftermath of the terrorist attacks ("Attacks") on September 11, 2001 can be
characterized into the following risk categories: mortality risk, equity price
risk, and credit risk. The following discusses each type of risk in greater
detail and its impact, either actual or potential, on ML of New York.

Mortality Risk - In quantifying mortality risk directly associated with the
Attacks, ML of New York has not experienced a material financial impact due to
reported death claims and does not anticipate a material financial impact of
death claims incurred but not reported. Mitigating factors of direct mortality
risk include i) the average age of ML of New York's contract owners is low to
mid-70s, thus it is unlikely that a large concentration were working at the
Attack sites, and ii) ML of New York has minimal exposure to mortality risks
assumed from other life insurance companies.

Equity Price Risk - The significant decrease in the U.S. equity market that
occurred after the Attacks has negatively impacted ML of New York's earnings and
future earnings via the following:

-   Reductions in separate accounts assets. Asset based fees collected on
    separate accounts assets are a primary source of earnings for ML of New
    York, thus lower asset balances will result in lower fee income. During the
    month of September 2001, ML of New York's separate accounts assets decreased
    $64.6 million, or 7% as compared to August 2001. A decrease of approximately
    $66.1 million was due to negative investment performance in the underlying
    mutual funds supporting variable products. Although investment performance
    rebounded during the fourth quarter 2001, earnings have been negatively
    impacted due to this reduction in separate accounts assets.
-   Increased exposure to guaranteed minimum death benefits. Due to decreasing
    variable contract owner account values, there is an increasing number of
    contracts, and amounts per contract, in which guaranteed minimum death
    benefits exceed those contract owner account values. This may result in
    greater future mortality expense given the current reduced level of variable
    account balances.

Credit Risk - Airline, insurance, and hotel & tourism sectors have been
particularly impacted by the Attacks. As such, credit quality within those
sectors has been negatively affected. ML of New York monitors its credit
exposure to these sectors on a daily basis. ML of New York has not incurred any
realized losses due to the sale or book value writedown of any securities in the
sectors noted above.

Technology - ML of New York's policy administration systems were not impacted by
the Attacks and contract owner processing for all fixed product transactions
continued as normal. Variable product processing was suspended during the
closure of the stock exchanges and resumed on Monday, September 17. Also, ML of
New York relocated certain financial systems to a designated disaster recovery
location in accordance with Merrill Lynch & Co. policy.



                                     - 3 -
<PAGE>

BUSINESS ENVIRONMENT

ML of New York conducts its business in the life insurance and annuity markets
of the financial services industry. These markets are highly regulated with
particular emphasis on company solvency and sales practice monitoring.

The financial services industry continues to be affected by the intensifying
competitive environment as demonstrated by consolidation through mergers and
acquisitions, competition from new entrants, and traditional competitors using
the internet or other technology to establish or expand their businesses. In
addition, the Gramm-Leach-Bliley Act, passed in 1999, represented a significant
accomplishment in the effort to modernize the financial services industry in the
U.S. by repealing Depression-era barriers between commercial banking, investment
banking, and insurance activities. This legislation, together with other changes
in the financial services industry made possible by previous reforms, has
increased the number of companies competing for a similar customer base.

Demographically, the population is aging, which favors life insurance and
annuity products. During June 2001, Congress passed the Economic Growth and Tax
Relief Reconciliation Act of 2001 (the "Act"). The primary provision in the Act
that impacted the insurance industry was the reform and eventual repeal of the
estate tax. Under the new tax law, the annual estate tax exemption will increase
from $0.675 million in 2001 to $3.5 million in 2009, with an anticipated
complete repeal of the estate tax in 2010. ML of New York does not offer estate
planning life insurance products.

SERVICE CENTER INTEGRATION

During the second quarter 2001, ML of New York announced plans to consolidate
its life and annuity policy administration service centers into one location.
The objective of this initiative is to provide high quality service with a
single point of contact for all of ML of New York's touchpoints, including
contract owners, Financial Advisors, District Annuity Specialists, and Wealth
Management Specialists. In addition, the consolidation is consistent with
Merrill Lynch & Co.'s goals of integrating for efficiency, minimizing business
risk, and maximizing the client experience. The consolidation was completed
during the third quarter 2001. Costs incurred related to the consolidation were
$1.0 million, with the majority of these costs reported in the third quarter. ML
of New York anticipates future annual expense savings of approximately $0.5
million.

ECONOMIC ENVIRONMENT

ML of New York's financial position and/or results of operations are primarily
impacted by the following economic factors:

-       fluctuations in medium term interest rates
-       fluctuations in credit spreads
-       equity market performance

ML of New York defines medium term interest rates as the average interest rate
on U.S. Treasury securities with terms of 1 to 10 years. During 2001, medium
term interest rates decreased approximately 101 basis points to yield, on
average, 4.12% at December 31, 2001.

ML of New York defines credit spreads as the interest rate spread between the
5-year U.S Treasury Bond Index and the 5-year Corporate Industrial Bond Index.
During 2001, credit spreads contracted approximately 32 basis points to end the
year at 146 basis points.

                                     - 4 -

<PAGE>

There are several standard indices published on a daily basis that measure
performance of selected components of the U.S. equity market. Examples include
the Dow Jones Industrial Average ("Dow"), NASDAQ Composite Index ("NASDAQ") and
the Standard & Poor's 500 Composite Stock Price Index ("S&P Index"). Despite a
rebound in the U.S. equity market during the fourth quarter 2001, all three
indices closed significantly lower from their respective levels at December 31,
2000. During 2001, the Dow, NASDAQ and S&P Index decreased 7.1%, 21.1% and
13.0%, respectively. Although the investment performance in the underlying
mutual funds supporting ML of New York's variable products do not replicate the
returns on any specific U.S. equity market index; investment performance will
generally increase or decrease with corresponding increases or decreases in the
overall U.S. equity market.

NEW BUSINESS

ML of New York sells variable and interest sensitive life insurance and annuity
products through Merrill Lynch & Co.'s retail network of Financial Advisors. ML
of New York competes for Merrill Lynch & Co.'s clients' life insurance and
annuity business with unaffiliated insurers whose products are also sold
through Merrill Lynch & Co.'s retail network, and with insurers who solicit
this business directly. The product lines that ML of New York offers are
focused in the highly competitive market segment of retirement and death
benefit planning. ML of New York competes in this market segment by integrating
its products into Merrill Lynch & Co.'s planning-based financial management
program.

ML of New York's financial management is based on conservative investment and
liability management and regular monitoring of its risk profile. ML of New York
also seeks to provide superior customer service and financial management to
promote the competitiveness of its products. ML of New York's customer service
centers have established standards of performance that are monitored on a
regular basis. Managers and employees in the customer service centers are
periodically evaluated based on their performance in meeting these standards.

ML of New York has strategically placed its marketing emphasis on the sale of
variable annuities, variable life insurance products, and modified guaranteed
annuities. These products are designed to address the retirement and death
benefit planning needs of Merrill Lynch & Co.'s clients. ML or New York offers
three types of variable annuity products. These products are differentiated by
the degree of liquidity afforded to the contract owner. The B-Share variable
annuity contains a seven year surrender charge period, the L-Share variable
annuity (introduced in the fourth quarter 2001) contains a three year surrender
charge period, and the C-Share variable annuity has no surrender charge period.
Each variable annuity product provides tax-deferred retirement savings with the
opportunity for diversified investing in a wide selection of underlying mutual
fund portfolios. ML of New York offers a variable life insurance product that
provides life insurance protection and allows the contract owner to allocate the
cash value of the policy to underlying diversified mutual fund portfolios. The
modified guaranteed annuity product also provides tax-deferred retirement
savings through a guaranteed fixed interest rate for a period selected by the
contract owner, but imposes a market value adjustment for withdrawals prior to
the expiration of the guarantee period. The following table summarizes ML of New
York's sales activity for the three years ending December 31, 2001:


                                     - 5 -

<PAGE>


<TABLE>
<CAPTION>
                                        (In Millions)                     % Change
                            -------------------------------------- ------------------------
                                2001         2000         1999     2001 - 2000  2000 - 1999
                            ------------ ------------ ------------ ------------ -----------
<S>                        <C>           <C>          <C>          <C>         <C>
Variable Annuities:

   C-Share                  $    71.5    $       -    $      -        100%          -%

   B-Share                       36.5         74.3        78.1        -51          -5

   L-Share                        1.2            -           -        100           -
                            ---------    ---------    --------     ------       -----

                                109.2         74.3        78.1         47          -5
                            ---------    ---------    --------     ------       -----


Variable Life Insurance           4.3          5.2         7.4        -17         -30

Modified Guaranteed
Annuities                         0.8          3.1         1.8        -74          72


Other                             0.4          0.1         0.2        300         -50
                            ---------    ---------    --------     ------       -----



  Total Direct Premiums     $   114.7    $    82.7    $   87.5         39%         -5%
                            =========    =========    ========     ======       =====
</TABLE>

ML of New York's total sales increased 39% during 2001, as compared to a 5%
decrease during 2000. Variable annuity sales increased $34.9 million (or 47%)
during 2001 and continue to dominate overall sales by comprising 95%, 90%, and
89% of total direct premiums during 2001, 2000, and 1999, respectively. During
2001, variable annuity sales were favorably impacted by the introduction of the
C-Share variable annuity product.

Management believes that variable annuity sales are impacted by the performance
of the equity markets, therefore future variable annuity sales could be
negatively impacted by the continuation of:

-       equity market volatility, or
-       the decline in the equity markets from what was experienced during
        2001 and 2000

Merrill Lynch & Co. offers an optional asset allocation service to ML of New
York's B-Share variable annuity contract owners. An investment advisor allocates
the participating contract owner's account value among the available underlying
mutual fund portfolios based on the contract owner's investment objectives and
risk tolerance. ML of New York does not receive any financial remuneration from
Merrill Lynch & Co. for this service; however, management believes that its
availability has had a positive effect on variable annuity sales volume.

Modified guaranteed annuity sales decreased $2.3 million (or 74%) during 2001 as
compared to 2000. Modified guaranteed annuity products offer a fixed interest
crediting rate reflective of the current interest rate environment, thus
increases or decreases in sales tend to have a direct relationship to changes in
interest rates. During 2001, modified guaranteed annuity sales were negatively
impacted by the lower interest rate environment as compared to 2000.

                                     - 6 -

<PAGE>

FINANCIAL CONDITION

At December 31, 2001, ML of New York's assets were $1,301.6 million, or $43.8
million lower than the $1,345.4 million in assets at December 31, 2000 primarily
due to a decrease in separate account assets. During the same time, separate
accounts assets decreased $42.5 million (or 4%) to $993.1 million primarily due
to unfavorable investment performance associated with the general decline in the
U.S. equity market. Changes in separate account assets during 2001 by quarter
were as follows:

<TABLE>
<CAPTION>
(In Millions)                     1Q01        2Q01         3Q01        4Q01        Total
                              -----------  ----------  ----------- -----------  -----------
<S>                         <C>            <C>         <C>         <C>          <C>
Net investment gain
 (loss) - variable
 products                     $   (89.6)   $    43.6   $  (108.2)   $  85.5     $  (68.7)

Net cash inflow
 (outflow) - variable
 products                          (5.6)        12.4         7.2       12.2         26.2
                              -----------  ----------  ----------- -----------  -----------
                              $   (95.2)   $    56.0   $  (101.0)   $  97.7     $  (42.5)
                              ===========  ==========  =========== ===========  ===========
</TABLE>

During 2001, ML of New York experienced contract owner deposits that exceeded
withdrawals by $25.3 million. The components of contract owner transactions were
as follows:

<TABLE>
<CAPTION>
(In Millions)                                                                        2001
                                                                                 -----------
<S>                                                                             <C>
Premiums collected                                                               $    114.7
Internal tax-free exchanges                                                            (7.7)
                                                                                 -----------
     Net contract owner deposits                                                      107.0


Contract owner withdrawals                                                            126.3
Net transfers to/from separate accounts                                               (44.6)
                                                                                 -----------

     Net contract owner withdrawals                                                    81.7
                                                                                 -----------


Net contract owner activity                                                      $     25.3
                                                                                 ===========
</TABLE>


ML of New York maintains a conservative general account investment portfolio. ML
of New York has no mortgage or real estate investments. The following schedule
identifies ML of New York's general account invested assets by type:

<TABLE>
<S>                                                                             <C>
Investment Grade Fixed Maturity Securities (Rated A or higher)...............       39%
Policy Loans.................................................................       37%
Investment Grade Fixed Maturity Securities (Rated BBB).......................       17%
Equity Securities............................................................        5%
Non-Investment Grade Fixed Maturity Securities...............................        2%
                                                                                 ------
                                                                                   100%
                                                                                 ======
</TABLE>


ML of New York's investment in collateralized mortgage obligations ("CMO") and
mortgage backed securities ("MBS") had a carrying value of $2.9 million as of
December 31, 2001. At December 31, 2001, all of ML of New York's CMO and MBS
holdings were fully collateralized by the Government National Mortgage
Association, the Federal National Mortgage Association or the Federal Home Loan
Mortgage Corporation. CMO and MBS securities are structured to allow the
investor to determine, within certain limits, the amount of interest rate risk,
prepayment risk and default risk that the investor is willing to accept. It is
this level of risk that determines the degree to which the yields on CMO and MBS
securities will exceed the yields that can be obtained from similarly rated
corporate securities.

As of December 31, 2001, ML of New York had 2,169 life insurance and annuity
contracts inforce with interest rate guarantees. The estimated average rate of
interest credited on behalf of contract owners was 4.86% during 2001. Invested
assets supporting liabilities with interest rate guarantees had an estimated
effective yield of 6.39% during 2001. The number of life insurance and annuity
contracts inforce with interest rate guarantees decreased 10% as compared to
2000.


                                     - 7 -

<PAGE>

LIQUIDITY AND CAPITAL RESOURCES

ML of New York's liquidity requirements include the payment of sales commissions
and other underwriting expenses and the funding of its contractual obligations
for the life insurance and annuity contracts it has inforce. ML of New York has
developed and utilizes a cash flow projection system and regularly performs
asset / liability duration matching in the management of its asset and liability
portfolios. ML of New York anticipates funding all its cash requirements
utilizing cash from operations, normal investment maturities and anticipated
calls and repayments, consistent with prior years. As of December 31, 2001, ML
of New York's assets included $164.4 million of cash, short-term investments and
investment grade publicly traded available-for-sale securities that could be
liquidated if funds were required.

In order to continue to issue life insurance and annuity products, ML of New
York must meet or exceed the statutory capital and surplus requirements of the
insurance departments of the states in which it conducts business. Statutory
accounting practices differ from generally accepted accounting principles
("GAAP") in two major respects. First, under statutory accounting practices, the
acquisition costs of new business are charged to expense, while under GAAP they
are amortized over a period of time. Second, under statutory accounting
practices, the required additions to statutory reserves for new business in some
cases may initially exceed the statutory revenues attributable to such business.
These practices result in a reduction of statutory income and surplus at the
time of recording new business.

The National Association of Insurance Commissioners utilizes the Risk Based
Capital ("RBC") adequacy monitoring system. The RBC calculates the amount of
adjusted capital that a life insurance company should have based upon that
company's risk profile. As of December 31, 2001 and 2000, based on the RBC
formula, ML of New York's total adjusted capital level was well in excess of the
minimum amount of capital required to avoid regulatory action.

ML of New York has received claims paying ability ratings from the major
insurance rating agencies as follows: A.M. Best - "A+" and Standard and Poors -
"AA-".

ML of New York has developed a comprehensive capital management plan that will
continue to provide appropriate levels of capital for the risks that ML of New
York assumes, but will allow ML of New York to reduce its absolute level of
surplus. In implementing this plan, ML of New York paid $35.0 million in
dividends to MLIG during 2000. No dividends were paid during 2001 and 1999.

ML of New York believes that it will be able to fund the capital and surplus
requirements of projected new business from current statutory earnings and
existing statutory capital and surplus. If sales of new business significantly
exceed projections, ML of New York may have to look to its parent and other
affiliated companies to provide the capital or borrowings necessary to support
its current marketing efforts. ML of New York's future marketing efforts could
be hampered should its parent and/or affiliates be unwilling to commit
additional funding.

MANAGEMENT ESTIMATES

ML of New York amortizes deferred policy acquisition costs based on the expected
future gross profits for each group of contracts. In estimating future gross
profits, management makes assumptions regarding such factors as policy charge
revenue, investment performance, policy lapse rates, mortality, and expenses for
the expected life of each group of contracts. Actual gross profits can vary from
management's estimates resulting in increases or decreases in the rate of
amortization. Management periodically updates these estimates and evaluates the
recoverability of deferred policy acquisition costs. The impact of revisions to
estimates on cumulative amortization is recorded as a charge or credit to
current operations. During 2001 and 2000, ML of New York credited earnings, via
a reduction in amortization of deferred policy acquisition costs, $0.8 million
and $0.7 million, respectively.

                                     - 8 -

<PAGE>

RESULTS OF OPERATIONS

ML of New York's gross earnings are principally derived from two sources:

-   the charges imposed on variable life insurance and variable annuity
    contracts, and
-   the net earnings from investment of fixed rate life insurance and annuity
    contract owner deposits less interest credited to contract owners, commonly
    known as interest spread

The costs associated with acquiring contract owner deposits are amortized over
the period in which ML of New York anticipates holding those funds. In addition,
ML of New York incurs expenses associated with the maintenance of inforce
contracts.

2001 compared to 2000

ML of New York recorded net earnings of $4.3 million and $10.1 million for 2001
and 2000, respectively.

Policy charge revenue decreased $1.5 million (or 7%) during 2001 as compared to
2000. The decrease in policy charge revenue is primarily attributable to the
decrease in average variable account balances. Average variable account balances
decreased $108.3 million (or 10%) during 2001 as compared to 2000. During the
same time period, asset based policy charges decreased $1.1 million (or 9%)
consistent with the reduction in the separate accounts assets. Non-asset based
charges decreased $0.4 million (or 5%) as compared to 2000 primarily due to a
decrease in cost of insurance charges.

Net earnings derived from interest spread decreased $1.8 million during 2001 as
compared to 2000. The decrease in interest spread is primarily a result of ML of
New York's $35.0 million dividend payment to MLIG during the fourth quarter
2000, as well as the reduction in invested assets resulting from the decline in
fixed rate contracts inforce.

Net realized investment losses increased $2.4 million during 2001 as compared to
2000. The increase in net realized investment losses is due to an increase in
credit related losses. Current period credit related losses were due to asset
sales and book value writedowns of one security holding.

Policy benefits increased $1.3 million (or 71%) during 2001 as compared to 2000.
The increase in policy benefits is primarily due to a $1.7 million increase in
variable annuity death benefit expense incurred under guaranteed minimum death
benefit provisions. Partially offsetting this increase is decreased mortality
for variable life insurance products.

Amortization of deferred policy acquisition costs decreased $0.5 million (or
12%) to $3.5 million during 2001. The decrease in amortization of deferred
policy acquisition costs is primarily due to the decrease in asset based
variable annuity policy charge revenue.

Insurance expenses and taxes increased $0.7 million (or 16%) during 2001 as
compared to 2000. The increase in insurance expenses and taxes is primarily due
to $1.0 million of costs related to the consolidation of ML of New York's policy
administration service centers.

ML of New York's effective federal income tax rate increased to 45% for 2001
from 32% for 2000. During 2001, ML of New York recorded a $0.8 million (net of
tax) adjustment for interest expense. Excluding this interest expense
adjustment, ML of New York's effective federal income tax rate was 34% for 2001.

                                     - 9 -

<PAGE>

2000 compared to 1999

ML of New York recorded net earnings of $10.1 million and $6.6 million for 2000
and 1999, respectively.

Policy charge revenue increased $3.2 million (or 19%) during 2000 as compared to
1999 primarily due to an increase in average variable account balances. Average
variable account balances increased $138.9 million (or 15%) during 2000 as
compared to 1999. During the same time period, asset based policy charges
increased $1.7 million (or 17%) consistent with the growth in the separate
accounts assets. Non-asset based charges increased $1.5 million (or 22%) as
compared to 1999 primarily due to increases in cost of insurance charges and
deferred policy load revenue and a decrease in market value adjustment expense
on the modified guaranteed annuity product.

Net earnings derived from interest spread decreased $0.6 million during 2000 as
compared to 1999. The reduction in interest spread is primarily a result of the
declining number of fixed rate contracts inforce.

Net realized investment losses decreased $3.0 million during 2000 as compared to
1999. The decrease in net realized investment losses is primarily due to a $4.0
million decrease in credit related losses. Prior period credit related losses
were impacted by book value writedowns and asset sales of several large security
holdings. ML of New York did not incur any credit related losses during 2000.
Partially offsetting the $4.0 million decrease in credit related losses is a
$1.0 million decrease in interest related gains. The decrease in interest
related gains, during 2000, is primarily due to reductions in trading activity
attributable to decreases in fixed product surrenders.

Policy benefits increased $1.2 million (or 183%) during 2000 as compared to 1999
due to significantly increased mortality for interest sensitive life insurance
products.

Reinsurance premium ceded increased $0.2 million (or 10%) to $2.0
million during 2000. This increase is attributable to the combined effect of the
increasing age of contract owners and increased insurance inforce.

Amortization of deferred policy acquisition costs decreased $0.9 million (or
18%) to $4.0 million during 2000. The retrospective adjustment of deferred
policy acquisition costs that occurred during 2000 resulted in a $0.8 million
decrease in amortization of deferred policy acquisition costs as compared to
1999 (see Management Estimates, above).

Segment Information

ML of New York's operating results are categorized into two business segments:
Life Insurance and Annuities. ML of New York's Life Insurance segment consists
of variable life insurance products and interest-sensitive life products. ML of
New York's Annuity segment consists of variable annuities and interest-sensitive
annuities. Other earnings represent earnings on assets that do not support
contract owner liabilities. Net earnings by segment were as follows:

<TABLE>
<CAPTION>
        Segment                  2001                   2000                   1999
        -------                  ----                   ----                   ----
<S>                            <C>                   <C>                    <C>
Life Insurance                    $1.9                   $2.8                   $2.6
Annuities                          1.8                    5.3                    2.4
Other                              0.6                    2.0                    1.6
</TABLE>

The products that comprise the Life Insurance and Annuity segments generally
possess similar economic characteristics. As such, the financial condition and
results of operations of each business segment are generally consistent with ML
of New York's consolidated financial condition and results of operations
presented herein.

The decrease in annuity net earnings during 2001 as compared to 2000 is
primarily due to the increase in net realized investment losses, as noted above.

The decrease in other net earnings during 2001 as compared to 2000 is primarily
due to a reduction in net investment income resulting from the Company's $35.0
million dividend payment to MLIG during the fourth quarter 2000.

ML of New York is not dependent upon any single customer, and no single customer
accounted for more than 10% of its revenues during 2001.

Inflation

ML of New York's operations have not been materially impacted by inflation and
changing prices during the preceding three years.

                                     - 10 -

<PAGE>

Item 7A. Quantitive and Qualitative Disclosures About Market Risk

Market risk is the potential change in a financial instrument's value caused by
fluctuations in certain underlying risk factors. ML of New York is primarily
subject to market risk resulting from fluctuations in interest rates, credit
spreads, credit risk, and equity prices.

A number of assumptions must be made to obtain the expected fair value changes
illustrated below. ML of New York has no reason to believe that historically
simulated interest rate and credit spread movements have any predictive power
for future fair value changes. The volatility experienced during recent years
demonstrates the limitations of these models.

Interest Rate Risk

Interest rate risk arises from the possibility that changes in interest rates
will affect the value of investments, primarily fixed maturity securities and
preferred equity securities, as well as interest sensitive liabilities. Changes
in interest rates have an inverse relationship to the value of investments and
interest sensitive liabilities. ML of New York manages interest rate risk as
part of its asset / liability management strategy. For each portfolio,
management monitors the expected changes in assets and liabilities, as produced
by ML of New York's model, resulting from various interest rate scenarios. Based
on these results, management closely matches the duration and convexity of
insurance liabilities to the duration and convexity of assets supporting those
liabilities.

The following table presents the estimated net impact on the fair value of
investments and interest sensitive liabilities resulting from various
hypothetical interest rate scenarios, based on assumptions contained in ML of
New York's model:

<TABLE>
<CAPTION>
                              Change in Fair
                                  Value
                              (In Millions)
                            -------------------
Change in Interest           2001       2000
Rates
------------------------    -------    --------
<S>                         <C>       <C>
+ 100 basis points          ($2.3)     ($2.0)
+ 50 basis points           ($1.1)     ($0.9)
- 50 basis points            $0.9       $0.9
- 100 basis points           $1.6       $1.7
</TABLE>

ML of New York's model is based on existing business inforce as of year-end 2001
without considering the impact of new life insurance and annuity sales on assets
or liabilities. The model incorporates ML of New York's fixed maturity
securities and preferred equity investments excluding variable rate securities
with rate resetting in less than ninety days, securities with a maturity of less
than ninety days, and securities that are in or near default. The changes in
interest rate scenarios, noted above, assume parallel shifts in the yield curve
occurring uniformly throughout the year.

Additionally, certain products have features that mitigate the impact of
interest rate risk. Examples include surrender charges, market value
adjustments, and resetting of interest credited rates (subject to certain
guaranteed minimum crediting rates). For interest sensitive life products the
guaranteed minimum rate is 4%. For interest sensitive annuity products the
guaranteed minimum rates range from 3% to 5%, with the greatest concentration in
the 3% to 4% range.

Credit Spread Risk

Credit spread risk arises from the possibility that changes in credit spreads
will affect the value of investments. Credit spreads represent the credit risk
premiums required by market participants for a given credit quality, i.e., the
additional yield that a debt instrument issued by a AA-rated entity must produce
over a risk-free alternative (e.g., U.S. Treasury instrument).


                                     - 11 -
<PAGE>
The following table presents the estimated net impact on the fair value of
investments resulting from various hypothetical fluctuations in credit spreads,
based on assumptions contained in ML of New York's model:

<TABLE>
<CAPTION>
                                Change in Fair
                                    Value
                                (In Millions)
                              -------------------
Change in Credit Spreads       2001        2000
--------------------------    -------    --------
<S>                           <C>       <C>
+ 50 basis points             ($2.6)     ($2.4)

+ 10 basis points             ($0.6)     ($0.5)

- 10 basis points              $0.4       $0.5

- 50 basis points              $2.3       $2.4
</TABLE>

ML of New York's model is based on existing business inforce as of year-end 2001
without considering the impact of new life insurance and annuity sales on
assets. The model incorporates ML of New York's fixed maturity securities and
preferred equity investments excluding securities with a maturity of less than
ninety days and securities that are in or near default. The changes in credit
spreads, noted above, assume a uniform occurrence throughout the year.

Liability valuations for modified guaranteed annuities mitigate ML of New York's
exposure to credit spread risk on these products. Contract owner surrender
values reflect changes in spread between corporate bonds and U.S. Treasury
securities since the market value adjusted account value is based on current
crediting rates for new and renewal contracts. These crediting rates are
adjusted weekly and reflect current market conditions.

Credit Risk

Credit risk represents the loss that ML of New York would incur if an issuer
fails to perform its contractual obligations and the value of the security held
has been permanently impaired or is deemed worthless. ML of New York manages its
credit risk by setting investment policy guidelines that assure diversification
with respect to investment, issuer, geographic location and credit quality.
Management regularly monitors compliance of each investment portfolio's status
with the investment policy guidelines, including timely updates of
credit-related securities.

Equity Price Risk

Equity price risk arises from the possibility that general reductions in equity
prices will negatively affect the value of assets and liabilities, primarily
separate accounts assets and separate accounts liabilities. General reductions
in equity prices impact ML of New York in the following ways:

-   Reductions in separate accounts assets. Asset based fees collected on
    separate accounts assets are a primary source of earnings for ML of New
    York, thus lower asset balances will result in lower fee income.
-   Increased exposure to guaranteed minimum death benefits. Decreasing variable
    contract owner account values increases the number of contracts, as well as
    amounts per contract, in which guaranteed minimum death benefits exceed
    those variable contract owner account balances. This may result in greater
    future mortality expense.
-   Potential hindrance of sales and marketing efforts for variable products.


                                     - 12 -
<PAGE>
Item 8.           Financial Statements and Supplementary Data.

                  The financial statements of Registrant are set forth in Part
IV hereof and are incorporated herein by reference.

Item 9.           Changes in and Disagreements With Accountants on Accounting
                  and Financial Disclosure.

                  Not applicable.

                                    PART III

                  Information called for by items 10 through 13 of this part is
omitted pursuant to General Instruction I. of Form 10-K.

                                     PART IV

Item 14.          Exhibits, Financial Statement Schedules, and Reports on Form
                  8-K.

                  (a)      Financial Statements and Exhibits.

                           (1)      The following financial statements of the
                                    Registrant are filed as part of this report:

                           a.       Independent Auditors' Report dated February
                                    25, 2002.

                           b.       Balance Sheets at December 31, 2001 and
                                    2000.

                           c.       Statements of Earnings for the Years Ended
                                    December 31, 2001, 2000 and 1999.

                           d.       Statements of Comprehensive Income for the
                                    Years Ended December 31, 2001, 2000 and
                                    1999.

                           e.       Statements of Stockholder's Equity for the
                                    Years Ended December 31, 2001, 2000 and
                                    1999.

                           f.       Statements of Cash Flows for the Years Ended
                                    December 31, 2001, 2000 and 1999.

                           g.       Notes to Financial Statements for the Years
                                    Ended December 31, 2001, 2000 and 1999.

                           (2)      Not applicable.

                           (3)      The following exhibits are filed as part of
                                    this report as indicated below:


                                     - 13 -



<PAGE>


              3.1    Certificate of Amendment of the Charter of ML Life
                     Insurance Company of New York. (Incorporated by reference
                     to Exhibit 6(a)(ii) to Post-Effective Amendment No. 10 to
                     ML of New York Variable Annuity Account A's registration
                     statement on Form N-4, File No. 33-43654, filed December 9,
                     1996.)

              3.2    By-Laws of ML Life Insurance Company of New York.
                     (Incorporated by reference to Exhibit 6(b) to
                     Post-Effective Amendment No. 10 to ML of New York Variable
                     Annuity Account A's registration statement on Form N-4,
                     File No. 33-43654, filed December 9, 1996.)

              4.1    Modified Guaranteed Annuity Contract. (Incorporated by
                     reference to Exhibit 4(a) to Pre-Effective Amendment No. 1
                     to the Registrant's registration statement on Form S-1,
                     File No. 33-34562, filed October 16, 1990.)

              4.2    Modified Guaranteed Annuity Contract Application.
                     (Incorporated by reference to Exhibit 4(b) to Pre-Effective
                     Amendment No. 1 to the Registrant's registration statement
                     on Form S-1, File No. 33-34562, filed October 16, 1990.)

              4.3    Qualified Retirement Plan Endorsement. (Incorporated by
                     reference to Exhibit 4(c) to Pre-Effective Amendment No. 1
                     to the Registrant's registration statement on Form S-1,
                     File No. 33-34562, filed October 16, 1990.)

              4.4    IRA Endorsement. (Incorporated by reference to Exhibit 4(d)
                     to Pre-Effective Amendment No. 1 to the Registrant's
                     registration statement on Form S-1, File No. 33-34562,
                     filed October 16, 1990.)

              4.5    Company Name Change Endorsement. (Incorporated by reference
                     to Exhibit 4(e) to Post-Effective Amendment No. 3 to the
                     Registrant's registration statement on Form S-1, File No.
                     33-34562, filed March 30, 1992.)

              4.6    IRA Endorsement, MLNY009 (Incorporated by reference to
                     Exhibit 4(d)(2) to Post-Effective Amendment No. 1 to the
                     Registrant's registration statement on Form S-1, File No.
                     33-60288, filed March 31, 1994).



                                     - 14 -

<PAGE>



              4.7    Modified Guaranteed Annuity Contract MLNY-AY-991/94.
                     (Incorporated by reference to Exhibit 4(a)(2) to
                     Post-Effective Amendment No. 3 to the Registrant's
                     registration statement on Form S-1, File No. 33-60288,
                     filed December 7, 1994).

              4.8    Qualified Retirement Plan Endorsement MLNY-AYQ-991/94.
                     (Incorporation by reference to Exhibit 4(c)(2) to
                     Post-Effective Amendment No. 3 to the Registrant's
                     registration statement on Form S-1, File No. 33-60288,
                     filed December 7, 1994).

              10.1   General Agency Agreement between Royal Tandem Life
                     Insurance Company and Merrill Lynch Life Agency Inc.
                     (Incorporated by reference to Exhibit 10(a) to
                     Pre-Effective Amendment No. 1 to the Registrant's
                     registration statement on Form S-1, File No. 33-34562,
                     filed October 16, 1990.)

              10.2   Investment Management Agreement by and between Royal Tandem
                     Life Insurance Company and Equitable Capital Management
                     Corporation. (Incorporated by reference to Exhibit 10(b) to
                     Pre-Effective Amendment No. 1 to the Registrant's
                     registration statement on Form S-1, File No. 33-34562,
                     filed October 16, 1990.)

              10.3   Shareholders' Agreement by and among The Equitable Life
                     Assurance Society of the United States and Merrill Lynch &
                     Co., Inc. and Tandem Financial Group, Inc. (Incorporated by
                     reference to Exhibit 10(c) to Pre-Effective Amendment No. 1
                     to the Registrant's registration statement on Form S-1,
                     File No. 33-34562, filed October 16, 1990.)

              10.4   Service Agreement by and between Royal Tandem Life
                     Insurance Company and Tandem Financial Group, Inc.
                     (Incorporated by reference to Exhibit 10(d) to
                     Pre-Effective Amendment No. 1 to the Registrant's
                     registration statement on Form S-1, File No. 33-34562,
                     filed October 16, 1990.)

              10.5   Service Agreement by and between Tandem Financial Group,
                     Inc. and Merrill Lynch & Co., Inc. (Incorporated by
                     reference to Exhibit 10(e) to Pre-Effective Amendment No. 1
                     to the Registrant's registration statement on Form S-1,
                     File No. 33-34562, filed October 16, 1990.)



                                     - 15 -
<PAGE>


              10.6   Form of Investment Management Agreement by and between
                     Royal Tandem Life Insurance Company and Merrill Lynch Asset
                     Management, Inc. (Incorporated by reference to Exhibit
                     10(f) to Post-Effective Amendment No. 1 to the Registrant's
                     registration statement on Form S-1, File No. 33-34562,
                     filed March 7, 1991.)

              10.7   Assumption Reinsurance Agreement between Merrill Lynch Life
                     Insurance Company, Tandem Insurance Group, Inc. and Royal
                     Tandem Life Insurance Company and Family Life Insurance
                     Company. (Incorporated by reference to Exhibit 10(g) to
                     Post-Effective Amendment No. 3 to the Registrant's
                     registration statement on Form S-1, File No. 33-34562,
                     filed March 30, 1992.)

              10.8   Indemnity Agreement between ML Life Insurance Company of
                     New York and Merrill Lynch Life Agency, Inc. (Incorporated
                     by reference to Exhibit 10(h) to Post-Effective Amendment
                     No. 3 to the Registrant's registration statement on Form
                     S-1, File No. 33-34562, filed March 30, 1992.)

              10.9   Amended General Agency Agreement between ML Life Insurance
                     Company of New York and Merrill Lynch Life Agency, Inc.
                     (Incorporated by reference to Exhibit 10(i) to
                     Post-Effective Amendment No. 3 to the Registrant's
                     registration statement on Form S-1, File No. 33-34562,
                     filed March 30, 1992.)

              10.10  Amended Management Agreement between ML Life Insurance
                     Company of New York and Merrill Lynch Asset Management,
                     Inc. (Incorporated by reference to Exhibit 10(j) to the
                     Registrant's registration statement on Form S-1, File No.
                     33-60288, filed March 30, 1993.)

              10.11  Mortgage Loan Servicing Agreement between ML Life Insurance
                     Company of New York and Merrill Lynch & Co., Inc.
                     (Incorporated by reference to Exhibit 10(k) to
                     Post-Effective Amendment No. 4 to the Registrant's
                     registration statement on Form S-1, File No. 33-60288,
                     filed March 29, 1995.)

              23.1   Written Consent of Deloitte & Touche, LLP, independent
                     auditors, is filed herewith.

              24.1   Power of attorney of Frederick J. C. Butler. (Incorporated
                     by reference to Exhibit 24(a) to Post-Effective Amendment
                     No. 1 to the Registrant's registration statement on Form
                     S-1, File No. 33-60288, filed March 31, 1994.)



                                     - 16 -
<PAGE>

              24.2   Power of attorney of Michael P. Cogswell. (Incorporated by
                     reference to Exhibit 24(b) to Post-Effective Amendment No.
                     1 to the Registrant's registration statement on Form S-1,
                     File No. 33-60288, filed March 31, 1994.)

              24.3   Power of attorney of David M. Dunford. (Incorporated by
                     reference to Exhibit 24(e) to Post-Effective Amendment No.
                     1 to the Registrant's registration statement on Form S-1,
                     File No. 33-60288, filed March 31, 1994.)

              24.4   Power of attorney of Robert L. Israeloff. (Incorporated by
                     reference to Exhibit 24(g) to Post-Effective Amendment No.
                     1 to the Registrant's registration statement on Form S-1,
                     File No. 33-60288, filed March 31, 1994.)

              24.5   Power of attorney of Cynthia L. Kahn. (Incorporated by
                     reference to Exhibit 24(i) to Post-Effective Amendment No.
                     1 to the Registrant's registration statement on Form S-1,
                     File No. 33-60288, filed March 31, 1994.)

              24.6   Power of attorney of Robert A. King. (Incorporated by
                     reference to Exhibit 24(j) to Post-Effective Amendment No.
                     1 to the Registrant's registration statement on Form S-1,
                     File No. 33-60288, filed March 31, 1994.)

              24.7   Power of attorney of Irving M. Pollack. (Incorporated by
                     reference to Exhibit 24(k) to Post-Effective Amendment No.
                     1 to the Registrant's registration statement on Form S-1,
                     File No. 33-60288, filed March 31, 1994.)

              24.8   Power of attorney of Barry G. Skolnick. (Incorporated by
                     reference to Exhibit 24(l) to Post-Effective Amendment No.
                     1 to

                                     - 17 -
<PAGE>

                     the Registrant's registration statement on Form S-1, File
                     No. 33-60288, filed March 31, 1994.)

              24.9   Power of attorney of Gail R. Farkas. (Incorporated by
                     reference to Exhibit 24(g) to Post-Effective Amendment No.
                     5 to the Registrant's registration statement on Form S-1,
                     File No. 33-60288, filed March 26, 1996.)

              24.10  Power of attorney of Richard M. Drew. (Incorporated by
                     reference to Exhibit 24.14 to Annual Report on Form 10-K,
                     File Nos. 33-34562, 33-60288, and 333-48983, filed
                     March 30, 2000.)

              24.11  Power of attorney of Matthew J. Rider. (Incorporated by
                     reference to Exhibit 24.11 to Annual Report on Form 10-K,
                     File Nos. 33-34562, 33-60288, and 333-48983, filed April 2,
                     2001.)

              24.12  Power of attorney of Christopher J. Grady. (Incorporated by
                     reference to Exhibit 24.12 to Annual Report on Form 10-K,
                     File Nos. 33-34562, 33-60288, and 333-48983, filed April 2,
                     2001.)

              24.13  Power of attorney of H. McIntyre Gardner. (Incorporated by
                     reference to ML of New York Variable Annuity Separate
                     Account A's registration statement on Form N-4, File No.
                     333-69220, filed September 10, 2001.)

              24.14  Power of attorney of Joseph Justice. (Incorporated by
                     reference to ML of New York Variable Annuity Separate
                     Account A's registration statement on Form N-4, File No.
                     333-69220, filed September 10, 2001.)

              24.15  Power of attorney of Nikos K. Kardassis. (Incorporated by
                     reference to ML of New York Variable Annuity Separate
                     Account A's registration statement on Form N-4, File No.
                     333-69220, filed September 10, 2001.)

              24.16  Power of attorney of Lori M. Salvo. (Incorporated by
                     reference to ML of New York Variable Annuity Separate
                     Account A's registration statement on Form N-4, File No.
                     333-69220, filed September 10, 2001.)

       (b)    Reports on Form 8-K.

              No reports on Form 8-K have been filed during the last quarter of
              the fiscal year ended December 31, 2001.

                                     - 18 -
<PAGE>


<TABLE>
<CAPTION>
                          INDEX TO FINANCIAL STATEMENTS
<S>                                                                                                 <C>
Independent Auditors' Report...............................................................................

Balance Sheets at December 31, 2001 and 2000...............................................................

Statements of Earnings for the Years Ended December 31, 2001, 2000 and 1999................................

Statements of Comprehensive Income for the Years Ended December 31, 2001, 2000 and 1999....................

Statements of Stockholder's Equity for the Years Ended December 31, 2001, 2000 and 1999....................

Statements of Cash Flows for the Years Ended December 31, 2001, 2000 and 1999..............................

Notes to Financial Statements for the Years Ended December 31, 2001, 2000 and 1999.........................
</TABLE>

<PAGE>

INDEPENDENT AUDITORS' REPORT



The Board of Directors of
ML Life Insurance Company of New York:

We have audited the accompanying balance sheets of ML Life Insurance Company of
New York (the "Company"), a wholly owned subsidiary of Merrill Lynch Insurance
Group, Inc., as of December 31, 2001 and 2000, and the related statements of
earnings, comprehensive income, stockholder's equity, and cash flows for each of
the three years in the period ended December 31, 2001. 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 financial statements present fairly, in all material
respects, the financial position of the Company as of December 31, 2001 and
2000, and the results of its operations and its cash flows for each of the three
years in the period ended December 31, 2001 in conformity with accounting
principles generally accepted in the United States of America.







Deloitte & Touche, LLP
New York, New York

February 25, 2002
<PAGE>


ML LIFE INSURANCE COMPANY OF NEW YORK
(A wholly owned subsidiary of Merrill Lynch Insurance Group, Inc.)

BALANCE SHEETS
AS OF DECEMBER 31, 2001 AND 2000
(Dollars in thousands, except common stock par value and shares)
-------------------------------------------------------------------------------


<TABLE>
<CAPTION>
ASSETS                                                  2001            2000
------                                                  ----            ----
<S>                                                  <C>          <C>
INVESTMENTS:
Fixed maturity securities, at estimated fair value
(amortized cost: 2001 - $142,945; 2000 - $142,648)   $  143,731   $  140,657
Equity securities, at estimated fair value
(cost: 2001 - $11,871; 2000 - $18,313)                   11,650       17,695
Policy loans on insurance contracts                      92,967       90,367
                                                     ----------   ----------
Total Investments                                       248,348      248,719


CASH AND CASH EQUIVALENTS                                20,524       19,514
ACCRUED INVESTMENT INCOME                                 4,648        4,621
DEFERRED POLICY ACQUISITION COSTS                        30,915       30,195
FEDERAL INCOME TAXES - DEFERRED                              --          581
FEDERAL INCOME TAXES - CURRENT                               --           62
REINSURANCE RECEIVABLES                                     305        1,978
OTHER ASSETS                                              3,844        4,099
SEPARATE ACCOUNTS ASSETS                                993,056    1,035,626
                                                     ----------   ----------





TOTAL ASSETS                                         $1,301,640   $1,345,395
                                                     ==========   ==========
</TABLE>







See accompanying notes to financial statements.



<PAGE>








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


<TABLE>
<CAPTION>
LIABILITIES AND STOCKHOLDER'S EQUITY                             2001            2000
------------------------------------                             ----            ----
<S>                                                          <C>           <C>
LIABILITIES:
   POLICYHOLDER LIABILITIES AND ACCRUALS:
      Policyholders' account balances                        $   231,016    $   239,140
      Claims and claims settlement expenses                        4,109          4,938
                                                             -----------    -----------
               Total policyholder liabilities and accruals       235,125        244,078

   OTHER POLICYHOLDER FUNDS                                        1,125            986
   FEDERAL INCOME TAXES - DEFERRED                                 2,752             --
   FEDERAL INCOME TAXES - CURRENT                                    295             --
   AFFILIATED PAYABLES - NET                                         459            926
   OTHER LIABILITIES                                                 981          2,176
   SEPARATE ACCOUNTS LIABILITIES                                 993,056      1,035,626
                                                             -----------    -----------
               Total Liabilities                               1,233,793      1,283,792
                                                             -----------    -----------

STOCKHOLDER'S EQUITY:
   Common stock, $10 par value - 220,000 shares
      authorized, issued and outstanding                           2,200          2,200
   Additional paid-in capital                                     52,310         52,310
   Retained earnings                                              14,476         10,147
   Accumulated other comprehensive loss                           (1,139)        (3,054)
                                                             -----------    -----------
               Total Stockholder's Equity                         67,847         61,603
                                                             -----------    -----------


TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY                   $ 1,301,640    $ 1,345,395
                                                             ===========    ===========
</TABLE>






<PAGE>

ML LIFE INSURANCE COMPANY OF NEW YORK
(A wholly owned subsidiary of Merrill Lynch Insurance Group, Inc.)

STATEMENTS OF EARNINGS
FOR THE YEARS ENDED DECEMBER 31, 2001, 2000 AND 1999
(Dollars in thousands)
---------------------------------------------------------

<TABLE>
<CAPTION>
                                                                    2001        2000        1999
                                                                    ----        ----        ----
<S>                                                               <C>         <C>         <C>
REVENUES:
   Policy charge revenue                                          $ 18,723    $ 20,216    $ 17,046
   Net investment income                                            15,870      18,687      19,400
   Net realized investment losses                                   (2,477)        (98)     (3,100)
                                                                  --------    --------    --------

            Total Revenues                                          32,116      38,805      33,346
                                                                  --------    --------    --------

BENEFITS AND EXPENSES:
   Interest credited to policyholders' account balances             10,925      11,910      12,013
   Policy benefits (net of reinsurance recoveries: 2001 - $648;
     2000 - $2,419; 1999 - $542)                                     3,050       1,787         632
   Reinsurance premium ceded                                         1,947       2,011       1,822
   Amortization of deferred policy acquisition costs                 3,500       3,969       4,845
   Insurance expenses and taxes                                      4,820       4,147       4,195
                                                                  --------    --------    --------

            Total Benefits and Expenses                             24,242      23,824      23,507
                                                                  --------    --------    --------

            Earnings Before Federal Income Tax Provision             7,874      14,981       9,839
                                                                  --------    --------    --------

FEDERAL INCOME TAX PROVISION (BENEFIT):
   Current                                                           1,243       2,855       4,805
   Deferred                                                          2,302       1,979      (1,555)
                                                                  --------    --------    --------

            Total Federal Income Tax Provision                       3,545       4,834       3,250
                                                                  --------    --------    --------


NET EARNINGS                                                      $  4,329    $ 10,147    $  6,589
                                                                  ========    ========    ========
</TABLE>



See accompanying notes to financial statements.




<PAGE>


ML LIFE INSURANCE COMPANY OF NEW YORK
(A wholly owned subsidiary of Merrill Lynch Insurance Group, Inc.)

STATEMENTS OF COMPREHENSIVE INCOME
FOR THE YEARS ENDED DECEMBER 31, 2001, 2000 AND 1999
(Dollars in thousands)
-------------------------------------------------------------------------------


<TABLE>
<CAPTION>
                                                                 2001      2000        1999
                                                                 ----      ----        ----
<S>                                                           <C>         <C>        <C>
NET EARNINGS                                                  $  4,329    $ 10,147    $  6,589
                                                              --------    --------    --------

OTHER COMPREHENSIVE INCOME (LOSS):

   Net unrealized gains (losses) on
    available-for-sale securities:
     Net unrealized holding gains (losses)
       arising during the period                                   936       5,667     (14,221)
     Reclassification adjustment for losses
       included in net earnings                                  2,238         110       3,708
                                                              --------    --------    --------

     Net unrealized gains (losses) on investment securities      3,174       5,777     (10,513)

     Adjustments for:
              Policyholder liabilities                            (228)     (1,971)      3,496
              Deferred federal income taxes                     (1,031)     (1,332)      2,456
                                                              --------    --------    --------

   Total other comprehensive income (loss), net of tax           1,915       2,474      (4,561)
                                                              --------    --------    --------

COMPREHENSIVE INCOME                                          $  6,244    $ 12,621    $  2,028
                                                              ========    ========    ========
</TABLE>




See accompanying notes to financial statements.



<PAGE>


ML LIFE INSURANCE COMPANY OF NEW YORK
(A wholly owned subsidiary of Merrill Lynch Insurance Group, Inc.)

STATEMENTS OF STOCKHOLDER'S EQUITY
FOR THE YEARS ENDED DECEMBER 31, 2001, 2000 AND 1999
(Dollars in thousands)
-------------------------------------------------------------------------------


<TABLE>
<CAPTION>
                                                                            Accumulated
                                                  Additional                    other          Total
                                       Common      paid-in      Retained    comprehensive   stockholder's
                                       stock       capital      earnings         loss          equity
                                    ----------------------------------------------------------------------
<S>                                 <C>           <C>            <C>            <C>            <C>
BALANCE, JANUARY 1, 1999            $  2,200      $ 66,259       $ 14,462       $   (967)      $ 81,954

   Net earnings                                                     6,589                         6,589
   Other comprehensive loss,
     net of tax                                                                   (4,561)        (4,561)
                                    --------      --------       --------       --------       --------

BALANCE, DECEMBER 31, 1999             2,200        66,259         21,051         (5,528)        83,982

   Dividend to parent                              (13,949)       (21,051)                      (35,000)
   Net earnings                                                    10,147                        10,147
   Other comprehensive income,
     net of tax                                                                    2,474          2,474
                                    --------      --------       --------       --------       --------

BALANCE, DECEMBER 31, 2000             2,200        52,310         10,147         (3,054)        61,603

   Net earnings                                                     4,329                         4,329
   Other comprehensive
     income, net of tax                                                            1,915          1,915
                                    --------      --------       --------       --------       --------

BALANCE, DECEMBER 31, 2001          $  2,200      $ 52,310       $ 14,476       $ (1,139)      $ 67,847
                                    ========      ========       ========       ========       ========
</TABLE>







See accompanying notes to financial statements.




<PAGE>

ML LIFE INSURANCE COMPANY OF NEW YORK
(A wholly owned subsidiary of Merrill Lynch Insurance Group, Inc.)

STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2001, 2000 AND 1999
(Dollars in thousands)
-------------------------------------------------------------------------------


<TABLE>
<CAPTION>
                                                                         2001           2000             1999
                                                                         ----           ----             ----
<S>                                                                  <C>             <C>             <C>
Cash Flows From Operating Activities:
  Net earnings                                                       $   4,329       $  10,147       $   6,589
  Noncash items included in earnings:
    Amortization of deferred policy acquisition costs                    3,500           3,969           4,845
    Capitalization of policy acquisition costs                          (4,220)         (4,461)         (4,806)
    Amortization of investments                                            307             343             429
    Interest credited to policyholders' account balances                10,925          11,910          12,013
    Provision (benefit) for deferred Federal income tax                  2,302           1,979          (1,555)
  (Increase) decrease in operating assets:
    Accrued investment income                                              (27)            369             (22)
    Federal income taxes - current                                          62             (62)             --
    Reinsurance receivables                                              1,673          (1,825)            499
    Other                                                                  255            (790)            952
  Increase (decrease) in operating liabilities:
    Claims and claims settlement expenses                                 (829)          1,176             776
    Other policyholder funds                                               139            (209)           (588)
    Federal income taxes - current                                         295          (1,420)             73
    Affiliated payables                                                   (467)           (104)           (223)
    Other                                                               (1,198)           (238)            290
  Other operating activities:
    Net realized investment losses (excluding gains on cash and
      cash equivalents)                                                  2,478              98           3,100
                                                                     ---------       ---------       ---------

      Net cash and cash equivalents provided by operating
      activities                                                        19,524          20,882          22,372
                                                                     ---------       ---------       ---------

Cash Flow From Investing Activities:
  Proceeds from (payments for):
    Sales of available-for-sale securities                              24,345           9,320         171,785
    Maturities of available-for-sale securities                         31,446          27,935          40,227
    Purchases of available-for-sale securities                         (52,428)        (12,859)       (189,067)
    Policy loans on insurance contracts                                 (2,600)         (2,202)            (82)
                                                                     ---------       ---------       ---------

      Net cash and cash equivalents provided by investing
      activities                                                           763          22,194          22,863
                                                                     ---------       ---------       ---------
</TABLE>






See accompanying notes to financial statements.                   (Continued)




<PAGE>
ML LIFE INSURANCE COMPANY OF NEW YORK
(a wholly owned subsidiary of Merrill Lynch Insurance Group, Inc.)


STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2001, 2000 AND 1999 (Continued)
(Dollars in thousands)
-------------------------------------------------------------------------------


<TABLE>
<CAPTION>
                                                                          2001           2000              1999
                                                                          ----           ----              ----
<S>                                                                    <C>            <C>             <C>
Cash Flows from Financing Activities:
  Proceeds from (payments for):
    Dividends paid to parent                                           $      --       $ (35,000)      $      --
    Policyholder deposits                                                107,009          77,338          79,889
    Policyholder withdrawals (including transfers to/from
    separate accounts)                                                  (126,286)       (100,095)       (109,636)
                                                                       ---------       ---------       ---------

       Net cash and cash equivalents used by financing activities        (19,277)        (57,757)        (29,747)
                                                                       ---------       ---------       ---------

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                       1,010         (14,681)         15,488

CASH AND CASH EQUIVALENTS:
   Beginning of year                                                      19,514          34,195          18,707
                                                                       ---------       ---------       ---------

   End of year                                                         $  20,524       $  19,514       $  34,195
                                                                       =========       =========       =========

Supplementary Disclosure of Cash Flow Information:
   Cash paid to affiliates for:
     Federal income taxes                                              $     886       $   4,337       $   4,732
     Interest                                                                 64              91              85
</TABLE>









See accompanying notes to financial statements.




<PAGE>

ML LIFE INSURANCE COMPANY OF NEW YORK
(A wholly owned subsidiary of Merrill Lynch Insurance Group, Inc.)

NOTES TO FINANCIAL STATEMENTS
(Dollars in thousands)
-------------------------------------------------------------------------------

NOTE 1.    SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

   DESCRIPTION OF BUSINESS: ML Life Insurance Company of New York (the
   "Company") is a wholly owned subsidiary of Merrill Lynch Insurance Group,
   Inc. ("MLIG"). The Company is an indirect wholly owned subsidiary of Merrill
   Lynch & Co., Inc. ("Merrill Lynch & Co."). The Company is domiciled in the
   State of New York.

   The Company sells non-participating life insurance and annuity products
   including variable life insurance, variable annuities, market value adjusted
   annuities and immediate annuities. The Company is licensed to sell insurance
   and annuities in nine states; however, it currently limits its marketing
   activities to the State of New York. The Company markets its products solely
   through the retail network of Merrill Lynch, Pierce, Fenner & Smith,
   Incorporated ("MLPF&S"), a wholly owned broker-dealer subsidiary of Merrill
   Lynch & Co.

   BASIS OF REPORTING: The accompanying financial statements have been prepared
   in conformity with accounting principles generally accepted in the United
   States of America and prevailing industry practices, both of which require
   management to make estimates that affect the reported amounts and disclosure
   of contingencies in the financial statements. Actual results could differ
   from those estimates.

   The significant accounting policies and related judgements underlying the
   Company's financial statements are summarized below. In applying these
   policies, management makes subjective and complex judgements that frequently
   require estimates about matters that are inherently uncertain. Many of these
   policies are common in the insurance industry; others are specific to the
   Company's business and operations.

   For the purpose of reporting cashflows, cash and cash equivalents include
   cash on hand and on deposit and short-term investments with original
   maturities of three months or less.

   To facilitate comparisons with the current year, certain amounts in the prior
   years have been reclassified.

   REVENUE RECOGNITION: Revenues for variable annuity contracts consist of
   policy charges for mortality and expense risks, administration fees, and
   annual contract maintenance charges, as well as withdrawal charges assessed
   on contracts surrendered during the withdrawal charge period.

   Revenues for variable life insurance contracts consist of policy charges for
   mortality and expense risks, cost of insurance fees, and amortization of
   deferred sales charges, as well as withdrawal charges assessed on contracts
   surrendered during the withdrawal charge period.

   Revenues for interest-sensitive annuity contracts (market value adjusted
   annuities and immediate annuities) and interest-sensitive life insurance
   contracts (single premium whole life insurance - not currently marketed)
   consist of investment income and withdrawal charges assessed on contracts
   surrendered during the withdrawal charge period.

   INVESTMENTS: The Company's investments in fixed maturity and equity
   securities are classified as available-for-sale and are carried at estimated
   fair value with unrealized gains and losses included in stockholder's equity
   as a component of accumulated other comprehensive loss, net of tax. If
   management determines that a decline in the value of a security is
   other-than-temporary, based on the review of current market conditions and
   credit quality, the carrying value is adjusted to estimated fair value and
   the decline in value is recorded as a net realized investment loss.



<PAGE>

   For fixed maturity securities, premiums are amortized to the earlier of the
   call or maturity date, discounts are accreted to the maturity date, and
   interest income is accrued daily. For equity securities, dividends are
   recognized on the dividend declaration date. Realized gains and losses on the
   sale or maturity of investments are determined on the basis of specific
   identification. Investment transactions are recorded on the trade date.

   Certain fixed maturity securities are considered non-investment grade. The
   Company defines non-investment grade fixed maturity securities as unsecured
   debt obligations that do not have a rating equivalent to Standard and Poor's
   (or similar rating agency) BBB- or higher.

   Policy loans on insurance contracts are stated at unpaid principal balances.

   DEFERRED POLICY ACQUISITION COSTS: Policy acquisition costs for life and
   annuity contracts are deferred and amortized based on the estimated future
   gross profits for each group of contracts. These future gross profit
   estimates are subject to periodic evaluation by the Company, with necessary
   revisions applied against amortization to date. The impact of these revisions
   on cumulative amortization is recorded as a charge or credit to current
   operations. It is reasonably possible that estimates of future gross profits
   could be reduced in the future, resulting in a material reduction in the
   carrying amount of deferred policy acquisition costs.

   Policy acquisition costs are principally commissions and a portion of certain
   other expenses relating to policy acquisition, underwriting and issuance that
   are primarily related to and vary with the production of new business.
   Insurance expenses and taxes reported in the statements of earnings are net
   of amounts deferred. Policy acquisition costs can also arise from the
   acquisition or reinsurance of existing inforce policies from other insurers.
   These costs include ceding commissions and professional fees related to the
   reinsurance assumed. The deferred costs are amortized in proportion to the
   estimated future gross profits over the anticipated life of the acquired
   insurance contracts utilizing an interest methodology.

   During 1990, the Company entered into an assumption reinsurance agreement
   with an unaffiliated insurer. The acquisition costs relating to this
   agreement are being amortized over a twenty-five year period using an
   effective interest rate of 7.5%. This reinsurance agreement provided for
   payment of contingent ceding commissions, for a ten year period, based upon
   the persistency and mortality experience of the insurance contracts assumed.
   Any payments made for the contingent ceding commissions were capitalized and
   amortized using an identical methodology as that used for the initial
   acquisition costs. The following is a reconciliation of the acquisition costs
   related to the reinsurance agreement for the years ended December 31:

   <TABLE>
   <CAPTION>
                               2001           2000          1999
                               ----           ----          ----
   <S>                      <C>            <C>            <C>
   Beginning balance        $ 12,765       $ 12,396       $ 12,784
   Capitalized amounts            17          1,237          1,336
   Interest accrued              957            930            959
   Amortization               (2,398)        (1,798)        (2,683)
                            --------       --------       --------
   Ending balance           $ 11,341       $ 12,765       $ 12,396
                            ========       ========       ========
   </TABLE>


   The following table presents the expected amortization, net of interest
   accrued, of these deferred acquisition costs over the next five years. The
   amortization may be adjusted based on periodic evaluation of the expected
   gross profits on the reinsured policies.

<TABLE>
                                  <S>            <C>
                                   2002           $   664
                                   2003           $   660
                                   2004           $   684
                                   2005           $   724
                                   2006           $   806
</TABLE>

   SEPARATE ACCOUNTS: Separate Accounts are established in conformity with New
   York State Insurance Law and are generally not chargeable with liabilities
   that arise from any other business of the Company. Separate Accounts assets
   may be subject to general claims of the Company only to the extent the value
   of such assets exceeds Separate Accounts liabilities.
<PAGE>

   Net investment income and net realized and unrealized gains (losses)
   attributable to Separate Accounts assets accrue directly to the contract
   owner and are not reported as revenue in the Company's statements of
   earnings.

   Assets and liabilities of Separate Accounts, representing net deposits and
   accumulated net investment earnings less fees, held primarily for the benefit
   of contract owners, are shown as separate captions in the balance sheets.

   POLICYHOLDERS' ACCOUNT BALANCES: Liabilities for the Company's universal life
   type contracts, including its life insurance and annuity products, are equal
   to the full accumulation value of such contracts as of the valuation date
   plus deficiency reserves for certain products. Interest-crediting rates for
   the Company's fixed-rate products are as follows:

   Interest-sensitive life products                4.00%
   Interest-sensitive deferred annuities           3.00% - 7.40%
   Immediate annuities                             3.00% - 8.80%

   These rates may be changed at the option of the Company after initial
   guaranteed rates expire, unless contracts are subject to minimum interest
   rate guarantees.

   CLAIMS AND CLAIMS SETTLEMENT EXPENSES: Liabilities for claims and claims
   settlement expenses equal the death benefit (plus accrued interest) for
   claims that have been reported to the Company but have not settled and an
   estimate, based upon prior experience, for unreported claims.

   INCOME TAXES: The results of operations of the Company are included in the
   consolidated Federal income tax return of Merrill Lynch & Co. The Company has
   entered into a tax-sharing agreement with Merrill Lynch & Co. whereby the
   Company will calculate its current tax provision based on its operations.
   Under the agreement, the Company periodically remits to Merrill Lynch & Co.
   its current federal income tax liability.

   The Company uses the asset and liability method in providing income taxes on
   all transactions that have been recognized in the financial statements. The
   asset and liability method requires that deferred taxes be adjusted to
   reflect the tax rates at which future taxable amounts will be settled or
   realized. The effects of tax rate changes on future deferred tax liabilities
   and deferred tax assets, as well as other changes in income tax laws, are
   recognized in net earnings in the period such changes are enacted. Valuation
   allowances are established when necessary to reduce deferred tax assets to
   the amounts expected to be realized.

   Insurance companies are generally subject to taxes on premiums and in
   substantially all states are exempt from state income taxes.

   DERIVATIVES: On January 1, 2001, the Company adopted the provisions of SFAS
   No. 133, as amended, Accounting for Derivative Instruments and Hedging
   Activities ("SFAS No. 133"). SFAS No.133 requires the Company to recognize
   all derivatives as either assets or liabilities in the balance sheet and
   measure those instruments at fair value. At December 31, 2001, the fair value
   of derivatives was immaterial. The accounting treatment for changes in fair
   value for derivatives is dependent upon whether the derivative qualifies for
   hedge accounting. As defined by SFAS No. 133, the Company does not have any
   derivatives that qualify for hedge accounting and, as such, changes in fair
   value of the Company's derivative instruments are recorded in earnings. At
   December 31, 2001, the change in fair value of derivatives did not have a
   material impact on earnings.




<PAGE>


NOTE 2.     ESTIMATED FAIR VALUE OF FINANCIAL INSTRUMENTS

   Financial instruments are carried at fair value or amounts that approximate
   fair value. The carrying value of financial instruments as of December 31
   were:

   <TABLE>
   <CAPTION>
                                                       2001          2000
                                                  ------------   -------------
<S>                                               <C>            <C>
   Assets:
      Fixed maturity securities (1)                $  143,731      $  140,657
      Equity securities (1)                            11,650          17,695
      Policy loans on insurance contracts (2)          92,967          90,367
      Cash and cash equivalents (3)                    20,524          19,514
      Separate Accounts assets (4)                    993,056       1,035,626
                                                   ----------      ----------

   Total financial instruments                     $1,261,928      $1,303,859
                                                   ==========      ==========
</TABLE>


   (1)    For publicly traded securities, the estimated fair value is determined
          using quoted market prices. For securities without a readily
          ascertainable market value, the Company utilizes pricing services and
          broker quotes. Such estimated fair values do not necessarily represent
          the values for which these securities could have been sold at the
          dates of the balance sheets. At December 31, 2001 and 2000, securities
          without a readily ascertainable market value, having an amortized cost
          of $24,264 and $23,284, had an estimated fair value of $23,902 and
          $22,906, respectively.

   (2)    The Company estimates the fair value of policy loans as equal to the
          book value of the loans. Policy loans are fully collateralized by the
          account value of the associated insurance contracts, and the spread
          between the policy loan interest rate and the interest rate credited
          to the account value held as collateral is fixed.

   (3)    The estimated fair value of cash and cash equivalents approximates the
          carrying value.

   (4)    Assets held in Separate Accounts are carried at the net asset value
          provided by the fund managers.

NOTE 3.    INVESTMENTS

   The amortized cost and estimated fair value of investments in fixed maturity
   and equity securities as of December 31 were:

<TABLE>
<CAPTION>

                                                                         2001
                                              ----------------------------------------------------------
                                                  Cost /          Gross        Gross       Estimated
                                                 Amortized     Unrealized   Unrealized        Fair
                                                   Cost           Gains        Losses         Value
                                              --------------  ------------ ------------   ------------
<S>                                           <C>             <C>          <C>            <C>
   Fixed maturity securities:
      Corporate debt securities                $115,846        $  2,011        $  2,214        $115,643
      Mortgage-backed securities                  2,668             192              --           2,860
      U.S. government and agencies               22,433             829               7          23,255
      Foreign governments                         1,998              --              25           1,973
                                               --------        --------        --------        --------

        Total fixed maturity securities        $142,945        $  3,032        $  2,246        $143,731
                                               ========        ========        ========        ========

   Equity securities:
      Non-redeemable preferred stocks          $ 11,699        $     --        $    191        $ 11,508
      Common stocks                                 172              --              30             142
                                               --------        --------        --------        --------

           Total equity securities             $ 11,871        $     --        $    221        $ 11,650
                                               ========        ========        ========        ========
</TABLE>




<PAGE>

<TABLE>
<CAPTION>
                                                                         2000
                                              --------------------------------------------------------
                                                  Cost /        Gross          Gross       Estimated
                                                 Amortized    Unrealized     Unrealized       Fair
                                                   Cost         Gains          Losses        Value
                                              -------------- ------------   ------------ -------------
<S>                                           <C>            <C>            <C>          <C>
   Fixed maturity securities:
      Corporate debt securities                $109,101        $    594        $  2,314        $107,381
      Mortgage-backed securities                  3,904             190              59           4,035
      U.S. government and agencies               27,645             239             263          27,621
      Foreign governments                         1,998              --             378           1,620
                                               --------        --------        --------        --------

        Total fixed maturity securities        $142,648        $  1,023        $  3,014        $140,657
                                               ========        ========        ========        ========

   Equity securities:
      Non-redeemable preferred stocks          $ 18,141        $     --        $    588        $ 17,553
      Common stocks                                 172              --              30             142
                                               --------        --------        --------        --------

           Total equity securities             $ 18,313        $     --        $    618        $ 17,695
                                               ========        ========        ========        ========
</TABLE>


   The amortized cost and estimated fair value of fixed maturity securities at
   December 31, 2001 by contractual maturity were:

<TABLE>
<CAPTION>
                                                                      Estimated
                                                      Amortized         Fair
                                                         Cost           Value
                                                    -----------     ------------
<S>                                                 <C>             <C>
   Fixed maturity securities:
      Due in one year or less                       $ 18,164        $ 18,145
      Due after one year through five years           75,401          76,356
      Due after five years through ten years          31,961          31,469
      Due after ten years                             14,751          14,901
                                                    --------        --------
                                                     140,277         140,871


      Mortgage-backed securities                       2,668           2,860
                                                    --------        --------

        Total fixed maturity securities             $142,945        $143,731
                                                    ========        ========
</TABLE>

   Fixed maturity securities not due at a single maturity date have been
   included in the preceding table in the year of final maturity. Expected
   maturities may differ from contractual maturities because borrowers may have
   the right to call or prepay obligations with or without call or prepayment
   penalties.

   The amortized cost and estimated fair value of fixed maturity securities at
   December 31, 2001 by rating agency equivalent were:

<TABLE>
<CAPTION>
                                                               Estimated
                                                Amortized         Fair
                                                  Cost           Value
                                               ---------      -----------
<S>                                            <C>             <C>
   AAA                                         $ 36,256        $ 37,108
   AA                                             4,464           4,260
   A                                             54,320          54,787
   BBB                                           42,863          42,753
   Non-investment grade                           5,042           4,823
                                               --------        --------

        Total fixed maturity securities        $142,945        $143,731
                                               ========        ========
</TABLE>




<PAGE>


   The Company has recorded certain adjustments to policyholders' account
   balances in conjunction with unrealized holding gains or losses on
   investments classified as available-for-sale. The Company adjusts those
   liabilities as if the unrealized holding gains or losses had actually been
   realized, with corresponding credits or charges reported in accumulated other
   comprehensive loss, net of taxes. The components of net unrealized gains
   (losses) included in accumulated other comprehensive loss as of December 31
   were as follows:

<TABLE>
<CAPTION>
                                                     2001               2000
                                                     ----               ----
<S>                                                <C>              <C>
   Assets:
      Fixed maturity securities                     $   786           $(1,991)
      Equity securities                                (221)             (618)
      Federal income taxes - deferred                    --             1,645
                                                    -------           -------
                                                        565              (964)
                                                    -------           -------

   Liabilities:
      Federal income taxes - deferred                  (614)               --
      Policyholders' account balances                 2,318             2,090
                                                    -------           -------
                                                      1,704             2,090
                                                    -------           -------

   Stockholder's equity:
      Accumulated other comprehensive loss          $(1,139)          $(3,054)
                                                    =======           =======
</TABLE>


   Proceeds and gross realized investment gains and losses from the sale of
   available-for-sale securities for the years ended December 31 were:

<TABLE>
<CAPTION>
                                            2001         2000          1999
                                            ----         ----          ----
<S>                                      <C>           <C>           <C>
   Proceeds                              $ 24,345      $  9,320      $171,785
   Gross realized investment gains            223            43         1,357
   Gross realized investment losses         2,701           141         4,457
</TABLE>

   The Company had investment securities with a carrying value of $1,017 and
   $1,023 that were deposited with insurance regulatory authorities at December
   31, 2001 and 2000, respectively.

   Excluding investments in U.S. Government and Agencies, the Company is not
   exposed to any significant concentration of credit risk in its fixed maturity
   securities portfolio.

   Net investment income arose from the following sources for the years ended
   December 31:

<TABLE>
<CAPTION>
                                                   2001              2000               1999
                                                   ----              ----               ----
   <S>                                          <C>                <C>                <C>
   Fixed maturity securities                    $  9,929           $ 10,643           $ 12,921
   Equity securities                               1,104              1,429              1,637
   Policy loans on insurance contracts             4,440              4,441              4,362
   Cash and cash equivalents                         760              2,635                932
   Other                                               1                  1                 29
                                                --------           --------           --------

   Gross investment income                        16,234             19,149             19,881
   Less investment expenses                         (364)              (462)              (481)
                                                --------           --------           --------

   Net investment income                        $ 15,870           $ 18,687           $ 19,400
                                                ========           ========           ========
</TABLE>





<PAGE>


   Net realized investment gains (losses), including other-than-temporary
   writedowns in carrying value, for the years ended December 31 were as
   follows:

<TABLE>
<CAPTION>
                                            2001               2000              1999
                                            ----               ----              ----
<S>                                        <C>               <C>               <C>
   Fixed maturity securities               $(2,458)          $  (115)          $(1,938)
   Equity securities                           (20)               17            (1,162)
   Cash and cash equivalents                     1                --                --
                                           -------           -------           -------

   Net realized investment losses          $(2,477)          $   (98)          $(3,100)
                                           =======           =======           =======
</TABLE>


NOTE 4.    FEDERAL INCOME TAXES

   The following is a reconciliation of the provision for income taxes based on
   earnings before federal income taxes, computed using the Federal statutory
   tax rate, versus the reported provision for income taxes for the years ended
   December 31:

<TABLE>
<CAPTION>
                                                             2001        2000         1999
                                                             ----        ----         ----
<S>                                                         <C>           <C>           <C>
   Provision for income taxes computed at Federal
   statutory rate                                           $ 2,756       $ 5,243       $ 3,444
   Increase (decrease) in income taxes resulting from:
         Interest adjustments                                   832            --            --
         Non-deductible fees                                     18            --            --
         Dividend received deduction                            (78)         (155)         (129)
         Foreign tax credit                                      17          (254)          (65)
                                                            -------       -------       -------
   Federal income tax provision                             $ 3,545       $ 4,834       $ 3,250
                                                            =======       =======       =======
</TABLE>


   The Federal statutory rate for each of the three years in the period ended
   December 31, 2001 was 35%.

   The Company provides for deferred income taxes resulting from temporary
   differences that arise from recording certain transactions in different years
   for income tax reporting purposes than for financial reporting purposes. The
   sources of these differences and the tax effect of each are as follows:

   <TABLE>
   <CAPTION>
                                                          2001         2000         1999
                                                          ----         ----         ----
<S>                                                     <C>          <C>          <C>
   Deferred policy acquisition costs                    $   440      $   622      $   332
   Policyholders' account balances                        1,859        1,006         (793)
   Investment adjustments                                     3          351       (1,113)
   Other                                                     --           --           19
                                                        -------      -------      -------

   Deferred Federal income tax provision (benefit)      $ 2,302      $ 1,979      $(1,555)
                                                        =======      =======      =======
</TABLE>


   Deferred tax assets and liabilities as of December 31 are determined as
follows:

<TABLE>
<CAPTION>
                                                         2001        2000
                                                         ----        ----
<S>                                                     <C>        <C>
   Deferred tax assets:
      Policyholders' account balances                   $ 2,951       $ 4,810
      Investment adjustments                              1,384         1,387
      Net unrealized investment loss on investment
      securities                                            614         1,645
                                                        -------       -------
           Total deferred tax assets                      4,949         7,842
                                                        -------       -------
   Deferred tax liabilities:
      Deferred policy acquisition costs                   7,701         7,261
                                                        -------       -------

           Net deferred tax asset (liability)           $(2,752)      $   581
                                                        =======       =======
</TABLE>



<PAGE>

   The Company anticipates that all deferred tax assets will be realized,
   therefore no valuation allowance has been provided.

NOTE 5.    REINSURANCE

   In the normal course of business, the Company seeks to limit its exposure to
   loss on any single insured life and to recover a portion of benefits paid by
   ceding reinsurance to other insurance enterprises or reinsurers under
   indemnity reinsurance agreements, primarily excess coverage and coinsurance
   agreements. The maximum amount of mortality risk retained by the Company is
   approximately $300 on single life policies and $500 on joint life policies.

   Indemnity reinsurance agreements do not relieve the Company from its
   obligations to policyholders. Failure of reinsurers to honor their
   obligations could result in losses to the Company. The Company regularly
   evaluates the financial condition of its reinsurers so as to minimize its
   exposure to significant losses from reinsurer insolvencies. The Company holds
   collateral under reinsurance agreements in the form of letters of credit,
   trust agreements and funds withheld totaling $114 that can be drawn upon for
   delinquent reinsurance recoverables.

   As of December 31, 2001, the Company had the following life insurance
   in-force:

<TABLE>
<CAPTION>
                                                                                   Percentage
                                         Ceded to      Assumed                     of amount
                           Gross          other       from other        Net         assumed to
                           amount       companies     companies       amount          net
                         -----------    ----------    ----------    -----------    ----------
<S>                     <C>           <C>           <C>           <C>             <C>
      Life insurance
          in force      $  829,284    $  160,729    $  875,588    $1,544,143            57%
</TABLE>

   The Company has entered into a reinsurance agreement with an unaffiliated
   insurer, whereby the Company assumes mortality risk, within certain limits,
   on a block of yearly renewable term life insurance contracts. To the extent
   that actual mortality experience is less than or greater than expected
   mortality, the Company pays/receives an experience refund to/from the
   reinsurer.

NOTE 6.    RELATED PARTY TRANSACTIONS

   The Company and MLIG are parties to a service agreement whereby MLIG has
   agreed to provide certain accounting, data processing, legal, actuarial,
   management, advertising and other services to the Company. Expenses incurred
   by MLIG, in relation to this service agreement, are reimbursed by the Company
   on an allocated cost basis. Charges billed to the Company by MLIG pursuant to
   the agreement were $4,963, $4,556 and $4,199 for 2001, 2000 and 1999
   respectively. Charges attributable to this agreement are included in
   insurance expenses and taxes, except for investment related expenses, which
   are included in net investment income. The Company is allocated interest
   expense on its accounts payable to MLIG that approximates the daily Federal
   funds rate. Total intercompany interest incurred was $53, $69 and $54 for
   2001, 2000 and 1999, respectively. Intercompany interest is included in net
   investment income. While management believes that these fees are calculated
   on a reasonable basis, they may not necessarily be indicative of the costs
   that would have been incurred on a stand-alone basis.

   The Company and Merrill Lynch Investment Managers, L.P. ("MLIM") are parties
   to a service agreement whereby MLIM has agreed to provide certain invested
   asset management services to the Company. The Company pays a fee to MLIM for
   these services through the MLIG service agreement. Charges attributable to
   this agreement and allocated to the Company by MLIG were $145, $156 and $149
   for 2001, 2000 and 1999, respectively.

   The Company has a general agency agreement with Merrill Lynch Life Agency
   Inc. ("MLLA") whereby registered representatives of MLPF&S, who are the
   Company's licensed insurance agents, solicit applications for contracts to be
   issued by the Company. MLLA is paid commissions for the contracts sold by
   such agents. Commissions paid to MLLA were $3,910, $2,874 and $3,069 for
   2001, 2000 and 1999, respectively. Substantially all of these commissions
   were capitalized as deferred policy acquisitions costs and are being
   amortized in accordance with the policy discussed in Note 1.



<PAGE>

   In connection with the acquisition of a block of variable life insurance
   business from Monarch Life Insurance Company, the Company borrowed funds from
   Merrill Lynch & Co. to partially finance the transaction. The outstanding
   loan balance was paid off during 2001. As of December 31, 2000, the
   outstanding loan balance was $203. Repayments made on this loan during 2001,
   2000 and 1999 were $203, $87 and $144, respectively. Loan interest was
   calculated at LIBOR plus 150 basis points. Intercompany interest paid during
   2001, 2000 and 1999 was $11, $22 and $31, respectively.

   Affiliated agreements generally contain reciprocal indemnity provisions
   pertaining to each party's representations and contractual obligations
   thereunder.

NOTE 7.    STOCKHOLDER'S EQUITY AND STATUTORY REGULATIONS

   Notice of intention to declare a dividend must be filed with the New York
   Superintendent of Insurance who may disallow the payment. The Company filed
   no divided request during 2001 and 1999. During 2000, the Company paid a cash
   dividend of $35,000. At December 31, 2001 and 2000, approximately $3,207 and
   $3,157, respectively, of stockholder's equity was available for distribution
   to MLIG.

   Applicable insurance department regulations require that the Company report
   its accounts in accordance with statutory accounting practices. Statutory
   accounting practices differ from principles utilized in these financial
   statements as follows: policy acquisition costs are expensed as incurred,
   future policy benefit reserves are established using different actuarial
   assumptions, there is no provision for deferred income taxes, and securities
   are valued on a different basis.

   The Company's statutory financial statements are presented on the basis of
   accounting practices prescribed or permitted by the New York Insurance
   Department. Effective January 1, 2001, the State of New York adopted the
   National Association of Insurance Commissioner's statutory accounting
   practices, ("NAIC SAP") as a component of prescribed or permitted practices
   by the State of New York. The State of New York has adopted certain
   prescribed accounting practices which differ from those found in NAIC SAP.
   Specifically, deferred tax assets and deferred tax liabilities are not
   recognized by the State of New York. Other differences in accounting
   practices between NAIC SAP and the State of New York were not applicable to
   the Company. The impact of adopting Codification resulted in a $4,359
   decrease in statutory surplus.

   At December 31, 2001, statutory capital and surplus on a New York basis and
   an NAIC SAP basis were $34,265 and $34,880, respectively. The difference
   between statutory capital and surplus on a New York basis versus an NAIC SAP
   basis is the recognition of a $615 deferred tax asset in accordance with NAIC
   SAP. There was no difference in net income on a New York basis versus an NAIC
   SAP basis at December 31, 2001. Statutory capital and surplus at December 31,
   2000, was $33,767. The Company's statutory net income for 2001, 2000 and 1999
   was $348, $5,125 and $9,030, respectively.

   The National Association of Insurance Commissioners ("NAIC") utilizes the
   Risk Based Capital ("RBC") adequacy monitoring system. The RBC calculates the
   amount of adjusted capital that a life insurance company should have based
   upon that company's risk profile. As of December 31, 2001, and 2000, based on
   the RBC formula, the Company's total adjusted capital level was in excess of
   the minimum amount of capital required to avoid regulatory action.

NOTE 8.    COMMITMENTS AND CONTINGENCIES

   State insurance laws generally require that all life insurers who are
   licensed to transact business within a state become members of the state's
   life insurance guaranty association. These associations have been established
   for the protection of policyholders from loss (within specified limits) as a
   result of the insolvency of an insurer. At the time an insolvency occurs, the
   guaranty association assesses the remaining members of the association an
   amount sufficient to satisfy the insolvent insurer's policyholder obligations
   (within specified limits). Based upon the public information available at
   this time, management believes the Company has no material financial
   obligations to state guaranty associations.




<PAGE>

   In the normal course of business, the Company is subject to various claims
   and assessments. Management believes the settlement of these matters would
   not have a material effect on the financial position or results of operations
   of the Company.

NOTE 9.     SERVICE CENTER INTEGRATION

   During the second quarter 2001, the Company announced plans to consolidate
   its life and annuity policy administration service centers into one location.
   The consolidation was completed during the third quarter 2001. Costs incurred
   related to the consolidation were $1.0 million and are reported in insurance
   expenses and taxes. At December 31, 2001, costs incurred and unpaid were $0.5
   million.













<PAGE>


NOTE 10.     SEGMENT INFORMATION

   In reporting to management, the Company's operating results are categorized
   into two business segments: Life Insurance and Annuities. The Company's Life
   Insurance segment consists of variable life insurance products and
   interest-sensitive life insurance products. The Company's Annuity segment
   consists of variable annuities and interest-sensitive annuities. The
   accounting policies of the business segments are the same as those described
   in the summary of significant accounting policies. All revenue and expense
   transactions are recorded at the product level and accumulated at the
   business segment level for review by management. The "Other" category,
   presented in the following segment financial information, represents net
   revenues and earnings on assets that do not support life or annuity contract
   owner liabilities.

   The following table summarizes each business segment's contribution to the
   consolidated amounts:

<TABLE>
<CAPTION>
                                                 Life
   2001                                        Insurance        Annuities       Other           Total
                                            -------------     ------------   -----------     -----------
<S>                                        <C>                <C>            <C>             <C>
   Net interest spread (a)                    $    1,311      $    2,638      $      996      $    4,945
   Other revenues                                  9,028           7,210               8          16,246
                                              ----------      ----------      ----------      ----------

   Net revenues                                   10,339           9,848           1,004          21,191
                                              ----------      ----------      ----------      ----------

   Policy benefits                                 1,322           1,728              --           3,050
   Reinsurance premium ceded                       1,947              --              --           1,947
   Amortization of deferred policy
      acquisition costs                            2,018           1,482              --           3,500
   Other non-interest expenses                     2,055           2,765              --           4,820
                                              ----------      ----------      ----------      ----------

   Total non-interest expenses                     7,342           5,975              --          13,317
                                              ----------      ----------      ----------      ----------

   Net earnings before Federal income
       tax provision                               2,997           3,873           1,004           7,874
   Income tax expense                              1,134           2,060             351           3,545
                                              ----------      ----------      ----------      ----------

   Net earnings                               $    1,863      $    1,813      $      653      $    4,329
                                              ==========      ==========      ==========      ==========

   Balance Sheet Information:

   Total assets                               $  452,156      $  828,087      $   21,397      $1,301,640
   Deferred policy acquisition costs              13,847          17,068              --          30,915
   Policyholder liabilities and accruals         107,660         127,465              --         235,125
   Other policyholder funds                          686             439              --           1,125
</TABLE>





<PAGE>







<TABLE>
<CAPTION>
                                               Life
   2000                                      Insurance     Annuities         Other            Total
                                          -------------   ------------   ------------      -----------
<S>                                        <C>             <C>             <C>              <C>
Net interest spread (a)                    $    1,184      $    2,462      $    3,131       $    6,777
Other revenues                                  9,558          10,599             (39)          20,118
                                           ----------      ----------      ----------       ----------

Net revenues                                   10,742          13,061           3,092           26,895
                                           ----------      ----------      ----------       ----------

Policy benefits                                 1,727              60              --            1,787
Reinsurance premium ceded                       2,011              --              --            2,011
Amortization of deferred policy
   acquisition costs                            1,181           2,788              --            3,969
Other non-interest expenses                     1,698           2,449              --            4,147
                                           ----------      ----------      ----------       ----------

Total non-interest expenses                     6,617           5,297              --           11,914
                                           ----------      ----------      ----------       ----------

Net earnings before Federal income
    tax provision                               4,125           7,764           3,092           14,981
Income tax expense                              1,288           2,464           1,082            4,834
                                           ----------      ----------      ----------       ----------

Net earnings                               $    2,837      $    5,300      $    2,010       $   10,147
                                           ==========      ==========      ==========       ==========

Balance Sheet Information:

Total assets                               $  493,569      $  832,825      $   19,001       $1,345,395
Deferred policy acquisition costs              15,528          14,667              --           30,195
Policyholder liabilities and accruals         107,236         136,842              --          244,078
Other policyholder funds                          598             388              --              986
</TABLE>





<PAGE>




<TABLE>
<CAPTION>
                                                Life
   1999                                       Insurance        Annuities         Other            Total
                                            -------------     ------------    -----------      ------------
<S>                                           <C>             <C>             <C>              <C>
   Net interest spread (a)                    $    1,640      $    3,108      $    2,639       $    7,387
   Other revenues                                  8,453           5,612            (119)          13,946
                                              ----------      ----------      ----------       ----------

   Net revenues                                   10,093           8,720           2,520           21,333
                                              ----------      ----------      ----------       ----------

   Policy benefits                                   618              14              --              632
   Reinsurance premium ceded                       1,822              --              --            1,822
   Amortization of deferred policy
      acquisition costs                            2,100           2,745              --            4,845
   Other non-interest expenses                     1,662           2,533              --            4,195
                                              ----------      ----------      ----------       ----------

   Total non-interest expenses                     6,202           5,292              --           11,494
                                              ----------      ----------      ----------       ----------

   Net earnings before Federal income
       tax provision                               3,891           3,428           2,520            9,839
   Income tax expense                              1,332           1,036             882            3,250
                                              ----------      ----------      ----------       ----------

   Net earnings                               $    2,559      $    2,392      $    1,638       $    6,589
                                              ==========      ==========      ==========       ==========

   Balance Sheet Information:

   Total assets                               $  519,774      $  862,187      $   46,733       $1,428,694
   Deferred policy acquisition costs              15,082          14,621              --           29,703
   Policyholder liabilities and accruals         103,146         148,632              --          251,778
   Other policyholder funds                          633             562              --            1,195
</TABLE>

(a)  Management considers investment income net of interest credited to
     policyholders' account balances in evaluating results.

   The table below summarizes the Company's net revenues by product for 2001,
   2000 and 1999:

<TABLE>
<CAPTION>
                                                     2001           2000          1999
                                                  ---------      ---------     ---------
<S>                                                <C>            <C>           <C>
   Life Insurance
                 Variable life                     $  9,989       $ 10,393      $  9,656
                 Interest-sensitive whole
                 life                                   350            349           437
                                                   --------       --------      --------

                 Total Life Insurance                10,339         10,742        10,093
                                                   --------       --------      --------

   Annuities
                 Variable annuities                   9,853         10,221         8,291
                 Interest-sensitive annuities            (5)         2,840           429
                                                   --------       --------      --------

                 Total Annuities                      9,848         13,061         8,720
                                                   --------       --------      --------

   Other                                              1,004          3,092         2,520
                                                   --------       --------      --------

   Total                                           $ 21,191       $ 26,895      $ 21,333
                                                   ========       ========      ========
</TABLE>




                                   * * * * * *









<PAGE>


                                   SIGNATURES

       Pursuant to the requirements of Section 15(d) of the Securities Exchange
Act of 1934, the registrant has duly caused this report to be signed on its
behalf by the undersigned, thereunto duly authorized.

                                           ML Life Insurance Company of New York
                                           -------------------------------------
                                           (Registrant)

Date: March 28, 2002                       By:       /s/ Matthew J. Rider
                                                    --------------------------
                                                    Matthew J. Rider
                                                    Chief Financial Officer

       Pursuant to the requirements of the Securities Exchange Act of 1934, this
Report has been signed below by the following persons on behalf of the
registrant and in the capacities and on the dates indicated.


<TABLE>
<CAPTION>
Signature                                    Title                                     Date
---------                                    -----                                     ----
<S>                                        <C>                                       <C>


/s/ Barry G. Skolnick                        Director, Senior Vice President,          March 28, 2002
-------------------------                    and General Counsel*                      --------------
Barry G. Skolnick


/s/ Matthew J. Rider                         Director, Senior Vice President,          March 28, 2002
-------------------------                    Chief Financial Officer, and              --------------
Matthew J. Rider                             Treasurer


          *
                                             Director and Chairman of the Board        March 28, 2002
-------------------------                                                              --------------
H. McIntyre Gardner


          *
                                             Director, President, and Chief            March 28, 2002
-------------------------                    Executive Officer                         --------------
Nikos K. Kardassis
</TABLE>


<PAGE>
<TABLE>
<S>                                          <C>                                       <C>
          *
                                             Director and Senior Vice President        March 28, 2002
-------------------------                                                              --------------
Michael P. Cogswell

          *
                                             Director                                  March 28, 2002
-------------------------                                                              --------------
Frederick J. C. Butler

          *
                                             Director                                  March 28, 2002
-------------------------                                                              --------------
Richard M. Drew

          *

------------------------                     Director and Senior Vice President        March 28, 2002
Christopher J. Grady                                                                   --------------

          *
                                             Director                                  March 28, 2002
-------------------------                                                              --------------
Robert L. Israeloff

          *
                                             Director, Vice President, and             March 28, 2002
-------------------------                    Controller                                --------------
Joseph Justice

          *
                                             Director                                  March 28, 2002
-------------------------                                                              --------------
Robert A. King

          *
                                             Director                                  March 28, 2002
-------------------------                                                              --------------
Irving M. Pollack

          *
                                             Director, Vice President,                 March 28, 2002
-------------------------                    Senior Counsel, and Secretary             --------------
Lori M. Salvo

          *
                                             Director                                  March 28, 2002
-------------------------                                                              --------------
Cynthia Kahn Sherman
</TABLE>

*Signing in his own capacity and as Attorney-in-Fact.


<PAGE>


SUPPLEMENTAL INFORMATION TO BE FURNISHED WITH REPORTS FILED PURSUANT TO SECTION
15(d) OF THE ACT BY REGISTRANTS WHICH HAVE NOT REGISTERED SECURITIES PURSUANT TO
SECTION 12 OF THE ACT.

         No annual report covering the Registrant's last fiscal year or proxy
         material has been or will be sent to Registrant's security holder.


<PAGE>
                                 EXHIBIT INDEX

<TABLE>
<CAPTION>
 Exhibit No.               Description                                       Location
 -----------               -----------                                       --------
 <S>                       <C>                                               <C>
 3.1                       Certificate of Amendment of the Charter of        Incorporated by reference to Exhibit
                           ML Life Insurance Company of New York             6(a)(ii) to Post-Effective Amendment No.
                                                                             10 to ML of New York Variable Annuity
                                                                             Account A's registration statement on Form
                                                                             N-4, File No. 33-43654, filed December 9,
                                                                             1996.

 3.2                       By-Laws of ML Life Insurance Company of           Incorporated by reference to Exhibit 6(b)
                           New York                                          to Post-Effective Amendment No. 10 to ML
                                                                             of New York Variable Annuity Account A's
                                                                             registration statement on Form N-4, File
                                                                             No. 33-43654, filed December 9, 1996.

 4.1                       Modified Guaranteed Annuity Contract              Incorporated by reference to Exhibit 4(a)
                                                                             to Pre-Effective Amendment No. 1 to the
                                                                             Registrant's registration statement on
                                                                             Form S-1, File No. 33-34562, filed October
                                                                             16, 1990.

 4.2                       Modified Guaranteed Annuity Contract              Incorporated by reference to Exhibit 4(b)
                           Application                                       to Pre-Effective Amendment No. 1 to the
                                                                             Registrant's registration statement on
                                                                             Form S-1, File No. 33-34562, filed October
                                                                             16, 1990.

 4.3                       Qualified Retirement Plan Endorsement             Incorporated by reference to Exhibit 4(c)
                                                                             to Pre-Effective Amendment No. 1 to the
                                                                             Registrant's registration statement on
                                                                             Form S-1,  File No. 33-34562, filed
                                                                             October 16, 1990.

 4.4                       IRA Endorsement                                   Incorporated by reference to Exhibit 4(d)
                                                                             to Pre-Effective Amendment No. 1 to the
                                                                             Registrant's registration statement on
                                                                             Form S-1, File No. 33-34562, filed October
                                                                             16, 1990.
</TABLE>


                                      E-1

<PAGE>

<TABLE>
 <S>                       <C>                                               <C>
 4.5                       Company Name Change Endorsement                   Incorporated by reference to Exhibit 4(e)
                                                                             to Post-Effective Amendment No. 3 to the
                                                                             Registrant's registration statement on
                                                                             Form S-1, File No. 33-34562, filed March
                                                                             30, 1992.

 4.6                       IRA Endorsement, MLNY009                          Incorporated by reference to Exhibit
                                                                             4(d)(2) to Post-Effective Amendment No. 1
                                                                             to the Registrant's registration statement
                                                                             on Form S-1, File No. 33-60288, filed
                                                                             March 31, 1994.

 4.7                       Modified Guaranteed Annuity Contract              Incorporated by reference to Exhibit
                           MLNY-AY-991/94                                    4(a)(2) to Post-Effective Amendment No. 3
                                                                             to the Registrant's registration statement
                                                                             on Form S-1, File No. 33-60288, filed
                                                                             December 7, 1994.

 4.8                       Qualified Retirement Plan Endorsement             Incorporated by reference to Exhibit
                           MLNY-AYQ-991/94                                   4(c)(2) to Post-Effective Amendment No. 3
                                                                             to the Registrant's registration statement
                                                                             on Form S-1, File No. 33-60288, filed
                                                                             December 7, 1994.

 10.1                      General Agency Agreement between Royal            Incorporated by  reference to Exhibit
                           Tandem Life Insurance Company and Merrill         10(a) to Pre-Effective Amendment No. 1 to
                           Lynch Life Agency Inc.                            the Registrant's registration statement on
                                                                             Form S-1, File No. 33-34562, filed October
                                                                             16, 1990.

 10.2                      Investment Management Agreement by and            Incorporated by reference to Exhibit 10(b)
                           between Royal Tandem Life Insurance               to Pre-Effective Amendment No. 1 to the
                           Company and Equitable Capital Management          Registrant's registration statement on
                           Corporation                                       Form S-1, File No. 33-34562, filed October
                                                                             16, 1990.

 10.3                      Shareholders' Agreement by and among The          Incorporated by reference to Exhibit 10(c)
                           Equitable Life Assurance Society of the           to Pre- Effective Amendment No. 1 to the
                           United States and Merrill Lynch & Co.,            Registrant's registration statement on
                           Inc. and Tandem Financial Group, Inc.             Form S-1, File No. 33-34562, filed October
                                                                             16, 1990.
</TABLE>


                                      E-2
<PAGE>

<TABLE>
 <S>                       <C>                                               <C>
 10.4                      Service Agreement by and between Royal            Incorporated by reference to Exhibit 10(d)
                           Tandem Life Insurance Company and Tandem          to Pre-Effective Amendment No. 1 to the
                           Financial Group, Inc.                             Registrant's registration statement on
                                                                             Form S-1, File No. 33-34562, filed October
                                                                             16, 1990.

 10.5                      Service Agreement by and between Tandem           Incorporated by reference to Exhibit 10(e)
                           Financial Group, Inc. and Merrill Lynch &         to Pre-Effective Amendment No. 1 to the
                           Co., Inc.                                         Registrant's registration  statement on
                                                                             Form S-1, File No. 33-34562, filed October
                                                                             16, 1990.

 10.6                      Form of Investment Management Agreement by        Incorporated by reference to Exhibit 10(f)
                           and between Royal Tandem Life Insurance           to Post-Effective Amendment No. 1 to the
                           Company and Merrill Lynch Asset                   Registrant's registration statement on
                           Management, Inc.                                  Form S-1, File No. 33-34562, filed March
                                                                             7, 1991.

 10.7                      Assumption Reinsurance Agreement between          Incorporated by reference to Exhibit 10(g)
                           Merrill Lynch Life Insurance Company,             to Post-Effective Amendment No. 3 to the
                           Tandem Insurance Group, Inc. and Royal            Registrant's registration statement on
                           Tandem Life Insurance Company and Family          Form S-1, File No. 33-34562, filed March
                           Life Insurance Company                            30, 1992.

 10.8                      Indemnity Agreement between ML Life               Incorporated by reference to Exhibit 10(h)
                           Insurance Company of New York and Merrill         to Post-Effective Amendment No. 3 to the
                           Lynch Life Agency, Inc.                           Registrant's registration statement on
                                                                             Form S-1, File No. 33-34562, filed March
                                                                             30, 1992.

 10.9                      Amended General Agency Agreement between          Incorporated by reference to Exhibit 10(i)
                           ML Life Insurance Company of New York and         to Post-Effective Amendment No. 3 to the
                           Merrill Lynch Life Agency, Inc.                   Registrant's registration statement on
                                                                             Form S-1,  File No. 33-34562, filed March
                                                                             30, 1992.

 10.10                     Amended Management Agreement between ML           Incorporated by reference to Exhibit 10(j)
                           Life Insurance Company of New York and            to the Registrant's registration statement
                           Merrill Lynch Asset Management, Inc.              on Form S-1, File No. 33-60288, filed March
                                                                             30, 1993.
</TABLE>

                                      E-3
<PAGE>

<TABLE>
 <S>                       <C>                                               <C>
 10.11                     Mortgage Loan Servicing Agreement between         Incorporated by reference to Exhibit 10(k)
                           ML Life Insurance Company of New York and         to the Registrant's registration statement
                           Merrill Lynch & Co., Inc.                         on Form S-1, File No. 33-60288, filed
                                                                             March 29, 1995.

 23.1                      Written Consent of Deloitte & Touche              Exhibit 23.1
                           LLP, independent auditors

 24.1                      Power of attorney of Frederick J. C.              Incorporated by reference to Exhibit 24(a)
                           Butler                                            to Post-Effective Amendment No. 1 to the
                                                                             Registrant's registration statement on
                                                                             Form S-1, File No. 33-60288, filed March
                                                                             31, 1994.

 24.2                      Power of attorney of Michael P. Cogswell          Incorporated by reference to Exhibit 24(b)
                                                                             to Post-Effective Amendment No. 1 to the
                                                                             Registrant's registration statement on
                                                                             Form S-1, File No. 33-60288, filed March
                                                                             31, 1994.

 24.3                      Power of attorney of David M. Dunford             Incorporated by reference to Exhibit 24(e)
                                                                             to Post-Effective Amendment No. 1 to the
                                                                             Registrant's registration statement on
                                                                             Form S-1, File No. 33-60288, filed March
                                                                             31, 1994.

 24.4                      Power of attorney of Robert L. Israeloff          Incorporated by reference to Exhibit 24(g)
                                                                             to Post-Effective Amendment No. 1 to the
                                                                             Registrant's registration statement on
                                                                             Form S-1, File No. 33-60288, filed March
                                                                             31, 1994.
</TABLE>



                                      E-4
<PAGE>


<TABLE>
<S>                       <C>                                               <C>
 24.5                      Power of attorney of Cynthia L. Kahn              Incorporated by reference to Exhibit 24(i)
                                                                             to Post-Effective Amendment No. 1 to the
                                                                             Registrant's registration statement on
                                                                             Form S-1, File No. 33-60288, filed March
                                                                             31, 1994.

 24.6                      Power of attorney of Robert A. King               Incorporated by reference to Exhibit 24(j)
                                                                             to Post-Effective Amendment No. 1 the
                                                                             Registrant's registration statement on
                                                                             Form S-1, File No. 33-60288, filed March
                                                                             31, 1994.

 24.7                      Power of attorney of Irving M. Pollack            Incorporated by reference to Exhibit 24(k)
                                                                             to Post-Effective Amendment No. 1 to the
                                                                             Registrant's registration statement on
                                                                             Form S-1, File No. 33-60288, filed March
                                                                             31, 1994.

 24.8                      Power of attorney of Barry G. Skolnick            Incorporated by reference to Exhibit 24(l)
                                                                             to Post-Effective Amendment No. 1 to the
                                                                             Registrant's registration statement on
                                                                             Form S-1, File No. 33-60288, filed March
                                                                             31, 1994.

 24.9                      Power of attorney of Gail R. Farkas               Incorporated by reference to Exhibit 24(g)
                                                                             to Post-Effective Amendment No. 5 to the
                                                                             Registrant's registration statement on
                                                                             Form S-1, File No. 33-60288, filed March
                                                                             26, 1996.

 24.10                     Power of attorney of Richard M. Drew              Incorporated by reference to Exhibit 24.14
                                                                             to Annual Report on Form 10-K, File Nos.
                                                                             33-34562, 33-60288, and 333-48983,
                                                                             filed March 30, 2000.

 24.11                     Power of attorney of Matthew J. Rider             Incorporated by reference to Exhibit 24.11
                                                                             to Annual Report on Form 10-K, File Nos.
                                                                             33-34562, 33-60288, and 333-48983,
                                                                             filed April 2, 2001.

 24.12                     Power of attorney of Christopher J. Grady         Incorporated by reference to Exhibit 24.12
                                                                             to Annual Report on Form 10-K, File Nos.
                                                                             33-34562, 33-60288, and 333-48983,
                                                                             filed April 2, 2001.

 24.13                     Power of attorney of H. McIntyre Gardner          Incorporated by reference to ML of New
                                                                             York Variable Annuity Separate Account A's
                                                                             registration statement on Form N-4, File
                                                                             No. 333-69220, filed September 10, 2001.

 24.14                     Power of attorney of Joseph Justice               Incorporated by reference to ML of New
                                                                             York Variable Annuity Separate Account A's
                                                                             registration statement on Form N-4, File
                                                                             No. 333-69220, filed September 10, 2001.

 24.15                     Power of attorney of Nikos K. Kardassis           Incorporated by reference to ML of New
                                                                             York Variable Annuity Separate Account A's
                                                                             registration statement on Form N-4, File
                                                                             No. 333-69220, filed September 10, 2001.

 24.16                     Power of attorney of Lori M. Salvo                Incorporated by reference to ML of New
                                                                             York Variable Annuity Separate Account A's
                                                                             registration statement on Form N-4, File
                                                                             No. 333-69220, filed September 10, 2001.
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