##### 



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

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

For the fiscal year ended
December 31, 2006

Commission File Nos. 33-34562;
33-60288; 333-48983; 333-133224

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
incorporation or organization) |  | (I.R.S. Employer Identification No.)

|                                                
|------------------------------------------------
|222 Broadway2nd Floor
New York, New York 10038  
|                                                
|(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 if the registrant is a well-known seasoned issuer, as defined in Rule 405 of
the Securities Act. [ ] Yes
[X] No

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or
15(d) of the Act. [ ] Yes
[X] No

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. [X] Yes  [  ]  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 ]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer,
or a non-accelerated filer.

[ ]
large accelerated filer [ ]
accelerated filer [X]
non-accelerated filer


Indicated by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the
Act). [ ] Yes
[X] No

State the aggregate market value of the voting and non-voting
common equity held by non-affiliates computed by reference to the price at which the common equity was last sold, or the average
bid and asked price of such common equity, as of the last business day of the registrants  most recently completed second
fiscal quarter: Not applicable.

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.





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##### 



Item 1. Business
      Item 1A. Risk Factors
 Risk Factors that Could Affect ML of New York
  Competitive Environment
 Industry Trends Could Adversely Affect Financial Results
  1




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Competitive Factors May Adversely Affect Market Share and Financial Results
  Regulatory and Legislative Risks
 The Insurance Industry is Heavily Regulated, and Changes in Regulation May Adversely Affect
Financial Results
    Changes in Tax Legislation Could Make Certain Products Less Attractive to Consumers
   Market Risk
 Volatility in Equity Markets May Adversely Affect Sales of Variable Annuity Products and Financial
Results
   2




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##### 



Credit Risk
 Impairment in the Value of the Investment Portfolio May Adversely Affect Financial Results
  Interest Rate Risk
 Changes in Market Interest Rates May Adversely Affect Financial Results
    3




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##### 



Liquidity Risk
 ML of New Yorks Business and Financial Results May be Adversely Impacted by an Inability to Sell
Assets to Meet Maturing Obligations.
  Reserving Assumptions for Guaranteed Benefits
 Differences between Actual Experience and Reserving Assumptions May Adversely Affect Financial
Results
   Operational Risk
 ML of New York May Incur Losses From Inadequate or Failed Internal Processes, People and Systems or
From External Events.
  Litigation Risk
 Legal Proceedings Could Adversely Affect ML of New Yorks Operating Results and Financial Condition
for a Particular Period and Impact its Credit Ratings.
 Accounting for Contingencies
 4




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Item 1B. Unresolved Staff Comments
  Item 2. Properties
  Item 3. Legal Proceedings
  Item 4. Submission of Matters to a Vote of Security Holders
  PART II
 Item 5. Market for Registrants Common Equity, Related Stockholder Matters and Issuer Purchases of
Equity Securities
     Item 6. Selected Financial Data
  Item 7. Managements Narrative Analysis of Results of Operations
  Forward Looking Statements
  5




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See Risk Factors that Could Affect ML of New York
 Business Overview
  Life Insurance Strategy
   Critical Accounting Policies and Estimates
   Valuation of Fixed Maturity and Equity Securities
 Accounting for Certain Investments in Debt and Equity Securities
 6




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Other-Than-Temporary Impairment Losses on Investments
  Deferred Policy Acquisition Costs for Variable Annuities and Variable Life Insurance
 Accounting and
Reporting by Insurance Enterprises for Certain Long-Duration Contracts and for Realized Gains and
Losses from the Sale of Investments
    7




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Policyholder Liabilities
 Accounting and Reporting by
Insurance Enterprises Accounting and Reporting by Insurance Enterprises for Certain
Long-Duration Contracts and for Realized Gains and Losses from the Sale of Investments Accounting and Reporting by Insurance Enterprises for Certain
Nontraditional Long-Duration Contracts and for Separate Accounts
   Federal Income Taxes
   8




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##### 



Recent Developments
 Accounting Pronouncements
 The Fair
Value Option for Financial Assets and Financial Liabilities.
 Accounting by
Insurance Enterprises for Deferred Acquisition Costs in Connection With Modifications or Exchanges
of Insurance Contracts.
 Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year
Financial Statements.
 Fair Value Measurements.
 Accounting for Uncertainty in Income Taxes, an
Interpretation of FASB Statement No. 109
 9




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Accounting and Reporting by
Insurance Enterprises for Certain Nontraditional Long-Duration Contracts and for Separate Accounts.
 New Business
    10




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##### 



(dollars in millions)
    
    
    % Change2006 vs.
    
    
    2005 vs.2006
    
    
    2005
    
    
    2004
    
    
    2005
    
    
    2004Variable Annuities (including ICA):Bonus
    
    $
    23.9
    
    
    $
    10.8
    
    
    $
    
    
    
    
    121
    %
    
    
    100
    %L-Share
    
    
    20.0
    
    
    
    11.6
    
    
    
    4.3
    
    
    
    72
    
    
    
    170B-Share
    
    
    14.9
    
    
    
    17.4
    
    
    
    65.5
    
    
    
    (14
    )
    
    
    (73
    )C-Share
    
    
    2.1
    
    
    
    2.3
    
    
    
    4.6
    
    
    
    (9
    )
    
    
    (50
    )60.9
    
    
    
    42.1
    
    
    
    74.4
    
    
    
    45
    
    
    
    (43
    )All Other Deposits
    
    
    0.4
    
    
    
    0.9
    
    
    
    1.9
    
    
    
    (56
    )
    
    
    (53
    )Total Direct Deposits
    
    $
    61.3
    
    
    $
    43.0
    
    
    $
    76.3
    
    
    
    43
    %
    
    
    (44
    )%
   Financial Condition
  (dollars in millions)
    
    1Q06
    
    
    2Q06
    
    
    3Q06
    
    
    4Q06
    
    
    TotalInvestment performance
    
    $
    40.7
    
    
    $
    (12.1
    )
    
    $
    29.9
    
    
    $
    50.5
    
    
    $
    109.0Deposits
    
    
    20.7
    
    
    
    12.2
    
    
    
    13.7
    
    
    
    14.4
    
    
    
    61.0Policy fees and charges
    
    
    (4.4
    )
    
    
    (4.3
    )
    
    
    (4.5
    )
    
    
    (4.4
    )
    
    
    (17.6
    )Surrenders, benefits and withdrawals
    
    
    (31.7
    )
    
    
    (34.0
    )
    
    
    (29.1
    )
    
    
    (33.8
    )
    
    
    (128.6
    )Net increase (decrease)
    
    $
    25.3
    
    
    $
    (38.2
    )
    
    $
    10.0
    
    
    $
    26.7
    
    
    $
    23.8
 11




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##### 



(dollars in millions)
    
    2006Deposits collected
    
    $
    61.3Internal tax-free exchanges
    
    
    (9.2
    )Net contract owner deposits
    
    
    52.1Contract owner withdrawals
    
    
    76.0Net transfers from separate accounts
    
    
    69.2Net contract owner withdrawals
    
    
    145.2Net contract owner activity
    
    $
    (93.1
    )
  2006
    
    2005Investment grade fixed maturity securities (rated A or higher)
    
    
    44
    %
    
    
    54
    %Policy loans
    
    
    30
    
    
    
    29Cash and cash equivalents
    
    
    14
    
    
    
    6Investment grade fixed maturity securities (rated BBB)
    
    
    11
    
    
    
    10Equity securities
    
    
    1
    
    
    
    Below investment grade fixed maturity securities
    
    
    
    
    
    
    1100
    %
    
    
    100
    %
    12




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##### 



Business Environment
  Equity Market Performance
     13




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##### 



Medium Term Interest Rates, Corporate Credit and Credit Spreads
     2006
    
    
    2005Average medium term interest rate yield (1)
    
    
    4.77
    %
    
    
    4.36Increase in medium term interest rates (in basis points)
    
    
    41
    
    
    
    120Credit spreads (in basis points) (2)
    
    
    77
    
    
    
    106Expanding (contracting) of credit spreads (in basis points)
    
    
    (29
    )
    
    
    34Increase (decrease) on market valuations: (in millions)Available-for-sale investment securities
    
    $
    0.4
    
    
    $
    (3.3
    )Interest-sensitive policyholder liabilities
    
    
    0.2
    
    
    
    0.5Net increase (decrease) on market valuations
    
    $
    0.6
    
    
    $
    (2.8
    )
 
 (1)
    
    ML of New York defines medium term interest rates as the average interest rate on
U.S. Treasury securities with terms of 1 to 5 years.(2)
    
    ML of New York defines credit spreads according to the Merrill Lynch U.S.
Corporate Bond Index for BBB-A Rated bonds with three to five year maturities.  Liquidity and Capital Resources
 Liquidity
  14




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##### 



Capital Resources
    Statutory Accounting Practices and Risk-Based Capital (RBC)
   Contractual Obligations
  Less Than
    
    Three to
    
    More Than(dollars in millions)
    
    Three Years
    
    Five Years
    
    Five Years
    
    TotalContractual Obligations:Long-term liabilities (1)
    
    $
    0.9
    
    
    $
    2.0
    
    
    $
    16.0
    
    
    $
    18.9
 
 (1)
    
    The long-term liabilities include the portion of future policy benefits for which
ML of New York believes the amount and timing of the payments are essentially fixed and
determinable. These amounts primarily relate to contracts where ML of New York is
currently making payments to policyholders and will continue to do so until the
occurrence of a specific event. 15




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##### 



Results of Operations
  
    
    the charges imposed on variable annuity and variable life insurance 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
 Critical Accounting Policies
 2006 compared to 2005
   Policy Charge Revenue
    
    2006
    
    
    2005
    
    
    Change(In Millions)Asset-based policy charge revenue
    
    $
    12.8
    
    
    $
    12.0
    
    
    $
    0.8
    (1)Guaranteed benefit based policy charge revenue
    
    
    0.8
    
    
    
    0.4
    
    
    
    0.4
    (2)Non-asset based policy charge revenue
    
    
    6.0
    
    
    
    6.0
    
    
    
    $
    19.6
    
    
    $
    18.4
    
    
    $
    1.2
 
 (1)
    
    Asset-based policy charge revenue was favorably impacted by the increase in
average variable account balances during 2006 as compared to 2005.(2)
    
    The increase in guaranteed benefit based policy charge revenue is due to the
increase in inforce variable annuity contracts containing guaranteed benefit riders
resulting from increased demand for these provisions.  Interest Spread
    
    2006
    
    
    2005
    
    
    Change(In Millions)Net investment income
    
    $
    11.5
    
    
    $
    11.3
    
    
    $
    0.2
    (1)Interest credited to policyholder account balances
    
    
    (7.8
    )
    
    
    (8.2
    )
    
    
    0.4
    (2)$
    3.7
    
    
    $
    3.1
    
    
    $
    0.6
 
 (1)
    
    Despite the reduction in fixed rate contracts inforce, net investment income was
favorably impacted by an increase in asset yields during 2006 as compared to 2005. 16




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##### 



(2)
    
    The decrease in interest credited is primarily due to the reduction of fixed
rate contracts inforce.  Critical Accounting Policies
  Critical
Accounting Policies
 2005
compared to 2004
   Interest Spread
    
    2005
    
    
    2004
    
    
    Change(In Millions)Net investment income
    
    $
    11.3
    
    
    $
    11.2
    
    
    $
    0.1
    (1)Interest credited to policyholder account balances
    
    
    (8.2
    )
    
    
    (9.1
    )
    
    
    0.9
    (2)$
    3.1
    
    
    $
    2.1
    
    
    $
    1.0
 
 (1)
    
    Despite the reduction in fixed rate contracts inforce, net investment income was
favorably impacted by an increase in asset yields during 2005 as compared to 2004.(2)
    
    The decrease in interest credited is mainly due to the reduction of fixed
rate contracts inforce.   Policy Benefits
    
    2005
    
    
    2004
    
    
    Change(In Millions)Life insurance benefit expense
    
    $
    1.4
    
    
    $
    1.7
    
    
    $
    (0.3
    ) (1)Variable annuity guaranteed benefit expense
    
    
    1.1
    
    
    
    1.3
    
    
    
    (0.2
    ) (2)$
    2.5
    
    
    $
    3.0
    
    
    $
    (0.5
    )
 
 (1)
    
    The decrease in life insurance benefit expense is due to a decrease in net
amount at risk per death claim.(2)
    
    The decrease in variable annuity guaranteed benefit expense is due to
favorable GMDB liability unlocking during 2005 as noted in the Critical Accounting
Policiessection above. 17




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##### 



Critical Accounting Policies
  Insurance Expenses and Taxes - Net of Capitalization
    
    2005
    
    
    2004
    
    
    Change(In Millions)General insurance expenses
    
    $
    3.7
    
    
    $
    3.2
    
    
    $
    0.5
    (1)Commissions
    
    
    0.4
    
    
    
    0.1
    
    
    
    0.3
    (2)Taxes, licenses, and fees
    
    
    0.6
    
    
    
    0.7
    
    
    
    (0.1
    )$
    4.7
    
    
    $
    4.0
    
    
    $
    0.7
 
 (1)
    
    The increase in general insurance expenses is primarily due to new product
development expenses.(2)
    
    The increase in commissions is primarily due to an increase in variable
annuity asset-based commissions. Critical
Accounting Policies
 Segment Information
  Annuities
    
    2006
    
    
    2005
    
    
    2004(Dollars In Millions)Net revenues
    
    $
    13.6
    
    
    $
    13.9
    
    
    $
    11.6Net revenues  % of all segments
    
    
    59
    %
    
    
    60
    %
    
    
    56
    %Earnings before change in accounting principle
    
    $
    4.8
    
    
    $
    2.7
    
    
    $
    5.2Earnings before change in accounting principle  % of all segments
    
    
    63
    %
    
    
    50
    %
    
    
    66
    %Net earnings
    
    $
    4.8
    
    
    $
    2.7
    
    
    $
    3.3Net earnings  % of all segments
    
    
    63
    %
    
    
    50
    %
    
    
    57
    %
 18




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Life
    
    2006
    
    
    2005
    
    
    2004(Dollars In Millions)Net revenues
    
    $
    8.2
    
    
    $
    8.4
    
    
    $
    8.2Net revenues  % of all segments
    
    
    35
    %
    
    
    36
    %
    
    
    40
    %Earnings before change in accounting principle
    
    $
    1.9
    
    
    $
    2.1
    
    
    $
    2.1Earnings before change in accounting principle  % of all segments
    
    
    25
    %
    
    
    39
    %
    
    
    27
    %Net earnings
    
    $
    1.9
    
    
    $
    2.1
    
    
    $
    2.0Net earnings  % of all segments
    
    
    25
    %
    
    
    39
    %
    
    
    34
    %
 Other
    
    2006
    
    
    2005
    
    
    2004(Dollars In Millions)Net revenues
    
    $
    1.4
    
    
    $
    1.0
    
    
    $
    0.9Net revenues  % of all segments
    
    
    6
    %
    
    
    4
    %
    
    
    4
    %Earnings before change in accounting principle
    
    $
    0.9
    
    
    $
    0.6
    
    
    $
    0.6Earnings before change in accounting principle  % of all segments
    
    
    12
    %
    
    
    11
    %
    
    
    8
    %Net earnings
    
    $
    0.9
    
    
    $
    0.6
    
    
    $
    0.5Net earnings  % of all segments
    
    
    12
    %
    
    
    11
    %
    
    
    9
    %
    Inflation
  Item 7A. Quantitative and Qualitative Disclosures about Market Risk
 Market Risk
   19




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Interest Rate Risk
   Change in Fair ValueChange in Interest Rates
    
    2006
    
    2005(In Millions)+ 100 Basis Points
    
    $
    (0.2
    )
    
    $
    (1.1
    )+ 50 Basis Points
    
    $
    (0.1
    )
    
    $
    (0.6
    )+ 10 Basis Points
    
    $
    (0.0
    )
    
    $
    (0.1
    )- 10 Basis Points
    
    $
    (0.0
    )
    
    $
    0.1- 50 Basis Points
    
    $
    0.1
    
    
    $
    0.6- 100 Basis Points
    
    $
    0.1
    
    
    $
    1.1
   Credit Spread Risk
  20




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##### 





Change in Fair ValueChange in Credit Spreads
    
    2006
    
    2005(In Millions)+ 50 Basis Points
    
    $
    (0.9
    )
    
    $
    (1.6
    )+ 10 Basis Points
    
    $
    (0.2
    )
    
    $
    (0.3
    )- 10 Basis Points
    
    $
    0.2
    
    
    $
    0.5- 50 Basis Points
    
    $
    0.9
    
    
    $
    1.7
   Credit Risk
  Equity Price Risk
  
    
    Reductions in separate accounts assets. Asset-based policy fees collected on separate accounts assets are a primary
source of earnings, thus lower asset balances will result in lower policy charge revenue and lower actual gross
profits.
 
    
    Increased exposure to death and living benefits. Decreasing variable contract owner account values increase the number
of contracts, as well as amounts per contract, in which GMDB and GMIB provisions exceed those variable contract owner
account balances. This may result in greater future policy benefit expense. Additionally, declines in the U.S. equity
markets may also increase ML of New Yorks exposure to benefits under GMWB provisions. This provision can generate
volatility in earnings as the underlying embedded derivative liability is recorded at fair value in response to changes
in equity market conditions and policyholder behavior. This may result in greater policy benefit expense.
 
    
    Potential hindrance of sales and marketing efforts for variable annuity products.
 
    
    One or any combination of the above items may lead to a revision of future assumptions which may result in unfavorable
DAC and/or variable annuity guaranteed benefit reserve unlocking.
 Item 8. Financial Statements and Supplementary Data
  21




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##### 



Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure.
  Item 9A. Controls and Procedures
   Item 9B. Other Information
  PART III
  Item 14. Principal Account Fees and Services
 Pre-Approval of Services Provided by the Registrants Independent Auditor
   
    
    Audit services include audit work performed in the review and preparation of the
financial statements, as well as, services that generally only the independent auditor can be
expected to provide, such as comfort letters, statutory audits, attest services, consents and
assistance with and review of documents filed with the SEC.
    
    Audit-Related services include accounting consultations relating to actuarial valuations.
    
    Tax services include all services performed by the independent auditors tax personnel.
    
    All Other services include all other miscellaneous services not captured in the other
two categories that are not prohibited services, as defined by the SEC, and that the Audit
Committee believes will not impair the independence of the independent auditor.
   22




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##### 



Fees Paid to the Registrants Independent Auditor
  2006
    
    
    2005Audit (1)
    
    $
    380,009
    
    
    $
    242,146Audit-Related (2)
    
    
    8,311
    
    
    
    5,272Tax (3)
    
    
    4,156
    
    
    
    2,636All Other (4)
    
    
    23,097
    
    
    
    13,531Total
    
    $
    415,573
    
    
    $
    263,585
 
 (1)
    
    Audit Fees included audit work performed in the review and preparation of the
financial statements, as well as, services that generally only the independent auditor can
be expected to provide, such as
comfort letters, statutory audits, attest services, consents and assistance with and review
of documents filed with the Securities and Exchange Commission.(2)
    
    Audit-Related Fees included accounting consultations relating to actuarial
valuations.(3)
    
    Tax Fees included all services performed by the independent auditors tax personnel.(4)
    
    All Other Fees included miscellaneous out-of-pocket expenses. 23




---



##### 



PART IV

Item 15.  Exhibits and Financial Statement Schedules.

(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 March 2, 2007.                                       
|b.  |  | Balance Sheets at
December 31, 2006 and 2005.                                           
|c.  |  | Statements of Earnings for the Years Ended
December 31, 2006, 2005 and 2004.            
|d.  |  | Statements of Comprehensive Income for the
Years Ended December 31, 2006, 2005 and 2004.
|e.  |  | Statements of Stockholders Equity for the
Years Ended December 31, 2006, 2005 and 2004.
|f.  |  | Statements of Cash Flows for the Years Ended
December 31, 2006, 2005 and 2004.          
|g.  |  | Notes to Financial Statements for the Years
Ended December 31, 2006, 2005 and 2004.     
|(2) |  | Not applicable.                                                                         
|(3) |  | The following exhibits are filed as part of
this report as indicated below:             

24



---



##### 



|    |  |                                                                                                                                                                                                                                                                                                   
|--- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|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).                                                                                        

25



---



##### 



|     |  |                                                                                                                                                                                                                                                                                                                                               
|---- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|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.)                                                                  

26



---



##### 



|      |  |                                                                                                                                                                                                                                                                                                                                                                       
|----- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|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
registered public accounting firm, 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.)                                                                                                                                          

27



---



##### 



|     |  |                                                                                                                                                                                                                          
|---- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|24.2 |  | 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.)
|24.3 |  | 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.)    
|24.4 |  | 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.)     
|24.5 |  | 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.)  
|24.6 |  | 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.)  

28



---



##### 



|      |  |                                                                                                                                                                                                           
|----- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|24.7  |  | 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.)                      
|24.8  |  | Power of attorney of John C. Carroll. (Incorporated by reference to
Exhibit 24.8 to Annual Report on Form 10-K, File Nos. 33-34562,
33-60288, and 333-48983, filed March 29, 2006.)                       
|24.9  |  | Power of attorney of Paul Michalowski. (Incorporated by reference to
Exhibit 24.9 to Annual Report on Form 10-K, File Nos. 33-34562,
33-60288, and 333-48983, filed March 29, 2006.)                      
|24.10 |  | 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.)
|24.11 |  | 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.) 
|24.12 |  | Power of attorney of Deborah J. Adler. (Incorporated by reference to
Exhibit 24.13 to Annual Report on Form 10-K, File Nos. 33-34562,
33-60288, and 333-48983, filed March 29, 2004.)                     
|24.13 |  | Power of attorney of Concetta M. Ruggiero. (Incorporated by reference to
Exhibit 24.13 to Annual Report on Form 10-K, File Nos. 33-34562,
33-60288, and 333-48983, filed March 29, 2004.)                 
|31.1  |  | Certification by the Chief Executive Officer of the Registrant
pursuant to Rule 15d-14(a), is filed herewith.                                                                                             
|31.2  |  | Certification by the Chief Financial Officer of the Registrant
pursuant to Rule 15d-14(a), is filed herewith.                                                                                             
|32.1  |  | Certification by the Chief Executive Officer of the
Registrant pursuant to 18 U.S.C. Section 1350, as
adopted pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002, is filed herewith.               
|32.2  |  | Certification by the Chief Financial Officer of the
Registrant pursuant to 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002,
is filed herewith.               

29



---



##### 



INDEX TO FINANCIAL STATEMENTS

|                                                                                       
|---------------------------------------------------------------------------------------
|Independent Auditors Report                                                           
|Balance
Sheets at December 31, 2006 and 2005                                           
|Statements
of Earnings for the Years Ended December 31, 2006, 2005 and 2004            
|Statements
of Comprehensive Income for the Years Ended December 31, 2006, 2005 and 2004
|Statements
of Stockholders Equity for the Years Ended December 31,
2006, 2005 and 2004
|Statements
of Cash Flows for the Years Ended December 31, 2006, 2005 and
2004          
|Notes
to Financial Statements for the Years Ended December 31, 2006, 2005 and 2004     





---



##### 



1




---



##### 



ML Life Insurance Company of New York
 (a wholly owned subsidiary of Merrill Lynch Insurance Group, Inc.)
Balance Sheets
 December 31,
    
    
    December 31,(dollars in thousands)
    
    2006
    
    
    2005ASSETSInvestmentsFixed maturity available-for-sale securities, at estimated fair value
(amortized cost: 2006 - $133,127; 2005 - $165,404)
    
    $
    132,440
    
    
    $
    164,279Equity available-for-sale securities, at estimated fair value
(cost: 2006 - $1,382; 2005 - $702)
    
    
    1,386
    
    
    
    706Policy loans on insurance contracts, at outstanding loan balances
    
    
    72,779
    
    
    
    74,393206,605
    
    
    
    239,378Cash and Cash Equivalents
    
    
    35,952
    
    
    
    14,650Accrued Investment Income
    
    
    3,622
    
    
    
    3,934Deferred Policy Acquisition Costs
    
    
    22,485
    
    
    
    23,038Deferred Sales Inducements
    
    
    1,840
    
    
    
    601Other Assets
    
    
    8,027
    
    
    
    3,772Separate Accounts Assets
    
    
    970,012
    
    
    
    946,261Total Assets
    
    $
    1,248,543
    
    
    $
    1,231,634
 See Notes to Financial Statements.
    
    (Continued)
 2




---



##### 



ML Life Insurance Company of New York
(a wholly owned subsidiary of Merrill Lynch Insurance Group, Inc.)
Balance Sheets
 December 31,
    
    
    December 31,(dollars in thousands, except common stock par value and shares)
    
    2006
    
    
    2005LIABILITIESPolicyholder Liabilities and AccrualsPolicyholder account balances
    
    $
    152,840
    
    
    $
    168,880Future policy benefits
    
    
    22,326
    
    
    
    22,546Claims and claims settlement expenses
    
    
    8,501
    
    
    
    3,329183,667
    
    
    
    194,755Other Policyholder Funds
    
    
    679
    
    
    
    264Federal Income Taxes  Deferred
    
    
    2,089
    
    
    
    2,091Federal Income Taxes  Current
    
    
    1,064
    
    
    
    642Affiliated Payables  Net
    
    
    1,417
    
    
    
    2,869Other Liabilities
    
    
    1,849
    
    
    
    863Separate Accounts Liabilities
    
    
    970,012
    
    
    
    946,261Total Liabilities
    
    
    1,160,777
    
    
    
    1,147,745STOCKHOLDERS EQUITYCommon stock ($10 par value; 220,000 shares authorized, issued
and outstanding)
    
    
    2,200
    
    
    
    2,200Additional paid-in capital
    
    
    52,310
    
    
    
    52,310Accumulated other comprehensive loss, net of taxes
    
    
    (753
    )
    
    
    (1,177
    )Retained earnings
    
    
    34,009
    
    
    
    30,556Total Stockholders Equity
    
    
    87,766
    
    
    
    83,889Total Liabilities and Stockholders Equity
    
    $
    1,248,543
    
    
    $
    1,231,634
  3




---



##### 



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,(dollars in thousands)
    
    2006
    
    
    2005
    
    
    2004Net RevenuesPolicy charge revenue
    
    $
    19,577
    
    
    $
    18,431
    
    
    $
    18,426Net investment income
    
    
    11,523
    
    
    
    11,275
    
    
    
    11,222Net realized investment gains (loss)
    
    
    (71
    )
    
    
    1,799
    
    
    
    127Total Net Revenues
    
    
    31,029
    
    
    
    31,505
    
    
    
    29,775Benefits and ExpensesInterest credited to policyholder liabilities
    
    
    7,823
    
    
    
    8,216
    
    
    
    9,096Policy benefits (net of reinsurance recoveries: 2006 - $1,219;
2005 - $98; 2004 - $1,066)
    
    
    2,608
    
    
    
    2,501
    
    
    
    3,014Reinsurance premium ceded
    
    
    1,915
    
    
    
    1,845
    
    
    
    1,722Amortization of deferred policy acquisition costs
    
    
    3,269
    
    
    
    7,005
    
    
    
    821Insurance expenses and taxes
    
    
    4,424
    
    
    
    4,699
    
    
    
    3,999Total Benefits and Expenses
    
    
    20,039
    
    
    
    24,266
    
    
    
    18,652Earnings Before Federal Income Taxes
    
    
    10,990
    
    
    
    7,239
    
    
    
    11,123Federal Income Tax Expense (Benefit)Current
    
    
    3,656
    
    
    
    2,585
    
    
    
    2,597Deferred
    
    
    (230
    )
    
    
    (814
    )
    
    
    662Total Federal Income Tax Expense
    
    
    3,426
    
    
    
    1,771
    
    
    
    3,259Earnings Before Change in Accounting Principle
    
    
    7,564
    
    
    
    5,468
    
    
    
    7,864Change in Accounting Principle, Net of Tax
    
    
    
    
    
    
    
    
    
    
    (2,032
    )Net Earnings
    
    $
    7,564
    
    
    $
    5,468
    
    
    $
    5,832
  4




---



##### 



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,(dollars in thousands)
    
    2006
    
    
    2005
    
    
    2004Net Earnings
    
    $
    7,564
    
    
    $
    5,468
    
    
    $
    5,832Other Comprehensive Income (Loss)Net unrealized gains (losses) on available-for-sale securities:Net unrealized holding gains (losses) arising during the period
    
    
    509
    
    
    
    (1,474
    )
    
    
    (2,133
    )Reclassification adjustment for gains included in net earnings
    
    
    (71
    )
    
    
    (1,799
    )
    
    
    (127
    )438
    
    
    
    (3,273
    )
    
    
    (2,260
    )Adjustments for policyholder liabilities
    
    
    214
    
    
    
    512
    
    
    
    1,132Adjustments for deferred federal income taxes
    
    
    (228
    )
    
    
    966
    
    
    
    395Total other comprehensive income (loss), net of taxes
    
    
    424
    
    
    
    (1,795
    )
    
    
    (733
    )Comprehensive Income
    
    $
    7,988
    
    
    $
    3,673
    
    
    $
    5,099
  5




---



##### 



ML Life Insurance Company of New York
(a wholly owned subsidiary of Merrill Lynch Insurance Group, Inc.)
Statements of Stockholders Equity
 AccumulatedAdditional
    
    
    other
    
    
    
    
    
    
    TotalCommon
    
    
    paid-in
    
    
    comprehensive
    
    
    Retained
    
    
    stockholders(dollars in thousands)
    
    stock
    
    
    capital
    
    
    income (loss)
    
    
    earnings
    
    
    equityBalance, January 1, 2004
    
    $
    2,200
    
    
    $
    52,310
    
    
    $
    1,351
    
    
    $
    21,756
    
    
    $
    77,617Net earnings
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    5,832
    
    
    
    5,832Cash dividend paid to parent
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (2,500
    )
    
    
    (2,500
    )Other comprehensive loss, net of taxes
    
    
    
    
    
    
    
    
    
    
    (733
    )
    
    
    
    
    
    
    (733
    )Balance, December 31, 2004
    
    
    2,200
    
    
    
    52,310
    
    
    
    618
    
    
    
    25,088
    
    
    
    80,216Net earnings
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    5,468
    
    
    
    5,468Other comprehensive loss, net of taxes
    
    
    
    
    
    
    
    
    
    
    (1,795
    )
    
    
    
    
    
    
    (1,795
    )Balance, December 31, 2005
    
    
    2,200
    
    
    
    52,310
    
    
    
    (1,177
    )
    
    
    30,556
    
    
    
    83,889Net earnings
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    7,564
    
    
    
    7,564Cash dividend paid to parent
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (4,111
    )
    
    
    (4,111
    )Other comprehensive income, net of taxes
    
    
    
    
    
    
    
    
    
    
    424
    
    
    
    
    
    
    
    424Balance, December 31, 2006
    
    $
    2,200
    
    
    $
    52,310
    
    
    $
    (753
    )
    
    $
    34,009
    
    
    $
    87,766
  6




---



##### 



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,(dollars in thousands)
    
    2006
    
    
    2005
    
    
    2004Cash Flows From Operating Activities:Net earnings
    
    $
    7,564
    
    
    $
    5,468
    
    
    $
    5,832Noncash items included in earnings:Change in accounting principle, net of tax
    
    
    
    
    
    
    
    
    
    
    2,032Amortization of deferred policy acquisition costs
    
    
    3,269
    
    
    
    7,005
    
    
    
    821Capitalization of policy acquisition costs
    
    
    (2,716
    )
    
    
    (1,911
    )
    
    
    (3,924
    )Amortization of deferred sales inducements
    
    
    63
    
    
    
    (28
    )
    
    
    Capitalization of sales inducements
    
    
    (1,302
    )
    
    
    (573
    )
    
    
    Amortization of investments
    
    
    603
    
    
    
    821
    
    
    
    622Interest credited to policyholder liabilities
    
    
    7,823
    
    
    
    8,216
    
    
    
    9,096Change in guaranteed benefit liabilities
    
    
    56
    
    
    
    285
    
    
    
    (188
    )Deferred federal income tax expense (benefit)
    
    
    (230
    )
    
    
    (814
    )
    
    
    662(Increase) decrease in operating assets:Accrued investment income
    
    
    312
    
    
    
    (15
    )
    
    
    413Other
    
    
    (4,255
    )
    
    
    2,206
    
    
    
    (2,330
    )Increase (decrease) in operating liabilities:Claims and claims settlement expenses
    
    
    5,172
    
    
    
    (1,936
    )
    
    
    1,338Other policyholder funds
    
    
    415
    
    
    
    (835
    )
    
    
    (1,015
    )Federal
income taxes  current
    
    
    422
    
    
    
    (92
    )
    
    
    (231
    )Affiliated
payables  net
    
    
    (1,452
    )
    
    
    512
    
    
    
    (480
    )Other
    
    
    986
    
    
    
    863
    
    
    
    (28
    )Other operating activities:Net realized investment (gains) losses
    
    
    71
    
    
    
    (1,799
    )
    
    
    (127
    )Net cash and cash equivalents provided by operating activities
    
    
    16,801
    
    
    
    17,373
    
    
    
    12,493Cash Flows From Investing Activities:Proceeds from (payments for):Sales of available-for-sale securities
    
    
    22,173
    
    
    
    36,283
    
    
    
    26,368Maturities of available-for-sale securities
    
    
    41,403
    
    
    
    13,182
    
    
    
    26,870Purchases of available-for-sale securities
    
    
    (32,653
    )
    
    
    (36,992
    )
    
    
    (53,564
    )Policy loans
on insurance contracts  net
    
    
    1,614
    
    
    
    2,357
    
    
    
    4,242Net cash and cash equivalents provided by investing activities
    
    
    32,537
    
    
    
    14,830
    
    
    
    3,916
 See Notes to Financial Statements.
    
    (Continued)
 7




---



##### 



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,(dollars in thousands)
    
    2006
    
    
    2005
    
    
    2004Cash Flows From Financing Activities:Proceeds from (payments for):Cash dividend paid to parent
    
    $
    (4,111
    )
    
    $
    
    
    
    $
    (2,500
    )Policyholder deposits (excludes internal policy replacement deposits)
    
    
    52,072
    
    
    
    35,439
    
    
    
    71,983Policyholder withdrawals (including transfers from separate accounts)
    
    
    (75,997
    )
    
    
    (59,641
    )
    
    
    (91,581
    )Net cash and cash equivalents used in financing activities
    
    
    (28,036
    )
    
    
    (24,202
    )
    
    
    (22,098
    )Net increase (decrease) in cash and cash equivalents
    
    
    21,302
    
    
    
    8,001
    
    
    
    (5,689
    )Cash and cash equivalents, beginning of year
    
    
    14,650
    
    
    
    6,649
    
    
    
    12,338Cash and cash equivalents, end of year
    
    $
    35,952
    
    
    $
    14,650
    
    
    $
    6,649Supplementary Disclosure of Cash Flow Information:Cash paid to affiliates for:Federal income taxes
    
    $
    3,234
    
    
    $
    2,677
    
    
    $
    2,828Interest
    
    
    179
    
    
    
    67
    
    
    
    25
  8




---



##### 



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
   Basis of Reporting
    Revenue Recognition
    Investments
   9




---



##### 



Cash and Cash Equivalents
  Deferred Policy Acquisition Costs (DAC)
    2006
    
    
    2005
    
    
    2004Beginning balance
    
    $
    6,949
    
    
    $
    8,167
    
    
    $
    8,830Interest accrued
    
    
    521
    
    
    
    613
    
    
    
    662Amortization
    
    
    (1,477
    )
    
    
    (1,831
    )
    
    
    (1,325
    )Ending balance
    
    $
    5,993
    
    
    $
    6,949
    
    
    $
    8,167
 10




---



##### 



2007
    
    2008
    
    2009
    
    2010
    
    2011$  768
    
    $  726
    
    $  705
    
    $  690
    
    $  673
 Deferred Sales Inducements
  Separate Accounts
   Policyholder Account Balances
  Interest-sensitive life products
    
    4.00%Interest-sensitive deferred annuities
    
    3.00%  6.80%
  Future Policy Benefits
  Claims and Claims Settlement Expenses
  Federal Income Taxes
  11




---



##### 



Accounting for Income Taxes.
  Accounting Pronouncements
 The Fair
Value Option for Financial Assets and Financial Liabilities
 Accounting by Insurance
Enterprises for Deferred Acquisition Costs in Connection With Modifications or Exchanges of
Insurance Contracts.
 Considering
the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial
Statements.
 Fair Value Measurements.
 Accounting for Uncertainty in Income Taxes, an
Interpretation of FASB Statement No. 109
 Accounting and Reporting by
Insurance Enterprises for Certain Nontraditional Long-Duration Contracts and for Separate Accounts.
 12




---



##### 



Note 2. Estimated Fair Value of Financial Instruments
  2006
    
    
    2005Assets:Fixed maturity securities (1)
    
    $
    132,440
    
    
    $
    164,279Equity securities (1)
    
    
    1,386
    
    
    
    706Policy loans on insurance contracts (2)
    
    
    72,779
    
    
    
    74,393Cash and cash equivalents (3)
    
    
    35,952
    
    
    
    14,650Separate accounts assets (4)
    
    
    970,012
    
    
    
    946,261Total assets:
    
    $
    1,212,569
    
    
    $
    1,200,289Liabilities :Policyholder account balances (5)
    
    $
    152,840
    
    
    $
    168,880
 
 (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.(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 the Separate Accounts are carried at the net asset value provided by the
fund managers.(5)
    
    The Company records certain adjustments to policyholder account balances in conjunction
with the unrealized holding gains or losses on investments classified as available-for-sale.
The Company adjusts a portion of these 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. 13




---



##### 



Note 3. Investments
  2006Cost/
    
    
    Gross
    
    
    Gross
    
    
    EstimatedAmortized
    
    
    Unrealized
    
    
    Unrealized
    
    
    FairCost
    
    
    Gains
    
    
    Losses
    
    
    ValueFixed maturity securities:Corporate debt securities
    
    $
    116,328
    
    
    $
    630
    
    
    $
    1,622
    
    
    $
    115,336Mortgage-backed securities
    
    
    7,083
    
    
    
    25
    
    
    
    38
    
    
    
    7,070U.S. Government and agencies
    
    
    6,217
    
    
    
    105
    
    
    
    4
    
    
    
    6,318Foreign governments
    
    
    3,499
    
    
    
    254
    
    
    
    37
    
    
    
    3,716Total fixed maturity securities
    
    $
    133,127
    
    
    $
    1,014
    
    
    $
    1,701
    
    
    $
    132,440Equity securities:Non-redeemable preferred stocks
    
    $
    1,382
    
    
    $
    8
    
    
    $
    4
    
    
    $
    1,386
 2005Cost/
    
    
    Gross
    
    
    Gross
    
    
    EstimatedAmortized
    
    
    Unrealized
    
    
    Unrealized
    
    
    FairCost
    
    
    Gains
    
    
    Losses
    
    
    ValueFixed maturity securities:Corporate debt securities
    
    $
    151,263
    
    
    $
    1,052
    
    
    $
    2,650
    
    
    $
    149,665U.S. Government and agencies
    
    
    7,043
    
    
    
    221
    
    
    
    
    
    
    
    7,264Foreign governments
    
    
    4,499
    
    
    
    324
    
    
    
    59
    
    
    
    4,764Mortgage-backed securities
    
    
    2,599
    
    
    
    34
    
    
    
    47
    
    
    
    2,586Total fixed maturity securities
    
    $
    165,404
    
    
    $
    1,631
    
    
    $
    2,756
    
    
    $
    164,279Equity securities:Non-redeemable preferred stocks
    
    $
    702
    
    
    $
    4
    
    
    $
    
    
    
    $
    706
 14




---



##### 



2006Less than 12 months
    
    
    More than 12 Months
    
    
    TotalEstimated
    
    
    
    
    
    
    Estimated
    
    
    
    
    
    
    EstimatedFair
    
    
    Unrealized
    
    
    Fair
    
    
    Unrealized
    
    
    Fair
    
    
    UnrealizedValue
    
    
    Losses
    
    
    Value
    
    
    Losses
    
    
    Value
    
    
    LossesFixed maturity securities:Corporate debt securities
    
    $
    11,126
    
    
    $
    52
    
    
    $
    73,477
    
    
    $
    1,570
    
    
    $
    84,603
    
    
    $
    1,622Mortgage-backed securities
    
    
    156
    
    
    
    
    
    
    
    2,115
    
    
    
    38
    
    
    
    2,271
    
    
    
    38Foreign governments
    
    
    
    
    
    
    
    
    
    
    1,462
    
    
    
    37
    
    
    
    1,462
    
    
    
    37U.S. Government and agencies
    
    
    1,194
    
    
    
    4
    
    
    
    
    
    
    
    
    
    
    
    1,194
    
    
    
    4Equity securities:Non-redeemable preferred stocks
    
    
    965
    
    
    
    4
    
    
    
    
    
    
    
    
    
    
    
    965
    
    
    
    4Total temporarily impaired securities
    
    $
    13,441
    
    
    $
    60
    
    
    $
    77,054
    
    
    $
    1,645
    
    
    $
    90,495
    
    
    $
    1,705
 2005Less than 12 months
    
    
    More than 12 Months
    
    
    TotalEstimated
    
    
    
    
    
    
    Estimated
    
    
    
    
    
    
    EstimatedFair
    
    
    Unrealized
    
    
    Fair
    
    
    Unrealized
    
    
    Fair
    
    
    UnrealizedValue
    
    
    Losses
    
    
    Value
    
    
    Losses
    
    
    Value
    
    
    LossesFixed maturity securities:Corporate debt securities
    
    $
    54,548
    
    
    $
    874
    
    
    $
    64,241
    
    
    $
    1,776
    
    
    $
    118,789
    
    
    $
    2,650U.S. Government and agencies
    
    
    
    
    
    
    
    
    
    
    2,440
    
    
    
    59
    
    
    
    2,440
    
    
    
    59Mortgage-backed securities
    
    
    1,469
    
    
    
    21
    
    
    
    743
    
    
    
    26
    
    
    
    2,212
    
    
    
    47Total temporarily impaired securities
    
    $
    56,017
    
    
    $
    895
    
    
    $
    67,424
    
    
    $
    1,861
    
    
    $
    123,441
    
    
    $
    2,756
   15




---



##### 



2006EstimatedAmortized
    
    
    FairCost
    
    
    ValueFixed maturity securities:Due in one year or less
    
    $
    32,843
    
    
    $
    32,654Due after one year through five years
    
    
    71,574
    
    
    
    70,434Due after five years through ten years
    
    
    14,235
    
    
    
    14,324Due after ten years
    
    
    7,392
    
    
    
    7,958126,044
    
    
    
    125,370Mortgage-backed securities
    
    
    7,083
    
    
    
    7,070Total fixed maturity securities
    
    $
    133,127
    
    
    $
    132,440
 2005EstimatedAmortized
    
    
    FairCost
    
    
    ValueFixed maturity securities:Due in one year or less
    
    $
    43,051
    
    
    $
    42,782Due after one year through five years
    
    
    102,664
    
    
    
    100,914Due after five years through ten years
    
    
    9,708
    
    
    
    9,742Due after ten years
    
    
    7,382
    
    
    
    8,255162,805
    
    
    
    161,693Mortgage-backed securities
    
    
    2,599
    
    
    
    2,586Total fixed maturity securities
    
    $
    165,404
    
    
    $
    164,279
   2006EstimatedAmortized
    
    
    FairCost
    
    
    ValueAAA
    
    $
    32,191
    
    
    $
    32,209AA
    
    
    29,013
    
    
    
    28,882A
    
    
    45,625
    
    
    
    45,285BBB
    
    
    26,298
    
    
    
    26,064Below investment grade
    
    
    
    
    
    
    Total fixed maturity securities
    
    $
    133,127
    
    
    $
    132,440Investment grade
    
    
    100
    %
    
    
    100
    %Below investment grade
    
    
    0
    %
    
    
    0
    %
 16




---



##### 



2005EstimatedAmortized
    
    
    FairCost
    
    
    ValueAAA
    
    $
    37,172
    
    
    $
    37,277AA
    
    
    28,547
    
    
    
    27,906A
    
    
    72,124
    
    
    
    71,953BBB
    
    
    25,338
    
    
    
    24,958Below investment grade
    
    
    2,223
    
    
    
    2,185Total fixed maturity securities
    
    $
    165,404
    
    
    $
    164,279Investment grade
    
    
    99
    %
    
    
    99
    %Below investment grade
    
    
    1
    %
    
    
    1
    %
   2006
    
    
    2005Assets:Fixed maturity securities
    
    $
    (687
    )
    
    $
    (1,125
    )Equity securities
    
    
    4
    
    
    
    4(683
    )
    
    
    (1,121
    )Liabilities:Policyholder account balances
    
    
    476
    
    
    
    690Federal income taxes  deferred
    
    
    (406
    )
    
    
    (634
    )70
    
    
    
    56Stockholder equity:Accumulated other comprehensive loss, net of taxes
    
    $
    (753
    )
    
    $
    (1,177
    )
  2006
    
    2005
    
    2004Proceeds
    
    $
    22,173
    
    
    $
    36,283
    
    
    $
    26,368Gross realized investment gains
    
    
    89
    
    
    
    2,114
    
    
    
    280Gross realized investment losses
    
    
    160
    
    
    
    315
    
    
    
    153
     17




---



##### 



2006
    
    
    2005
    
    
    2004Fixed maturity securities
    
    $
    6,930
    
    
    $
    7,411
    
    
    $
    7,416Policy loans on insurance contracts
    
    
    3,560
    
    
    
    3,679
    
    
    
    3,751Cash and cash equivalents
    
    
    1,397
    
    
    
    480
    
    
    
    265Equity securities
    
    
    53
    
    
    
    17
    
    
    
    Other
    
    
    (20
    )
    
    
    
    
    
    
    129Gross investment income
    
    
    11,920
    
    
    
    11,587
    
    
    
    11,561Less investment expenses
    
    
    (397
    )
    
    
    (312
    )
    
    
    (339
    )Net investment income
    
    $
    11,523
    
    
    $
    11,275
    
    
    $
    11,222Net realized investment gains (losses), for the years ended December 31 were as follows:
2006
    
    
    2005
    
    
    2004Fixed maturity securities
    
    $
    (71
    )
    
   $
    1,799
    
    
    $
    127
 Note 4. DAC
  2006
    
    
    2005
    
    
    2004Normal amortization related to variable life and annuity insurance products
    
    $
    4,180
    
    
    $
    3,820
    
    
    $
    3,788Unlocking related to variable life insurance products
    
    
    (267
    )
    
    
    (157
    )
    
    
    Unlocking related to variable annuity insurance products
    
    
    (644
    )
    
    
    3,342
    
    
    
    (2,967
    )Total amortization of DAC
    
    $
    3,269
    
    
    $
    7,005
    
    
    $
    821
    18




---



##### 



Note 5. Deferred Sales Inducements
  2006
    
    
    2005Beginning balance
    
    $
    601
    
    
    $
    Capitalization
    
    
    1,302
    
    
    
    573Amortization
    
    
    (63
    )
    
    
    28Ending balance
    
    $
    1,840
    
    
    $
    601
 Note 6. Variable Contracts Containing Guaranteed Benefits
 Variable Annuity Contracts Containing Guaranteed Benefits
  
    
    In general, contracts containing GMDB provisions provide a death benefit equal to the
greater of the GMDB or the contract value. Depending on the type of contract, the GMDB may
equal: i) contract deposits accumulated at a specified interest rate, ii) the contract
value on specified contract anniversaries, iii) return of contract deposits, or iv) some
combination of these benefits. Each benefit type is reduced for contract withdrawals.
    
    In general, contracts containing GMIB provisions provide the option to receive a
guaranteed future income stream upon annuitization. There is a waiting period of ten years
that must elapse before the GMIB provision can be exercised.
    
    Contracts containing GMWB provisions provide the contract owner the ability to withdraw
minimum annual payments, regardless of the impact of market performance on the contract
owners account value. In general, withdrawal percentages are based on the contract
owners age at the time of the first withdrawal. The Company began offering the GMWB
benefit provision in March 2006.
  2006
    
    2005GMDB
    
    GMIB
 
    GMWB
    
    GMDB
 
    GMIB
 
    GMWBNet amount at risk (1)
    
    $
    27,959
    
    
    $
    84
    
    
    $
    
    
    
    $
    49,572
    
    
    $
    100
    
    
    $
    n/aAverage attained age of contract
owners
    
    
    68
    
    
    
    60
    
    
    
    72
    
    
    
    67
    
    
    
    59
    
    
    
    n/aWeighted average period remaining
until expected annuitization
    
    
    n/a
    
    
    
    7.9
    yrs
    
    
    n/a
    
    
    
    n/a
    
    
    

    8.5
    yrs

    
    
    n/a
 
 (1)
    
    Net amount at risk for GMDB is defined as the current GMDB in excess of the
contract owners account balance at the balance sheet date.Net amount at risk for GMIB is defined as the present value of the minimum
guaranteed annuity payments available to the contract owner in excess of the contract
owners account balance at the balance sheet date.Net amount at risk for GMWB is defined as the present value of the minimum
guaranteed withdrawals available to the contract owner in excess of the contract owners
account balance at the balance sheet date. 19




---



##### 



GMDB
    
    
    GMIBBalance at January 1, 2005
    
    $
    2,863
    
    
    $
    26Guaranteed benefits incurred
    
    
    1,345
    
    
    
    50Guaranteed benefits paid
    
    
    (892
    )
    
    
    Unlocking
    
    
    (233
    )
    
    
    Balance at December 31, 2005
    
    
    3,083
    
    
    
    76Guaranteed benefits incurred
    
    
    1,277
    
    
    
    126Guaranteed benefits paid
    
    
    (855
    )
    
    
    Unlocking
    
    
    (669
    )
    
    
    163Balance at December 31, 2006
    
    $
    2,836
    
    
    $
    365
  Accounting for
Derivative Instruments and Hedging Activities
  2006MoneyEquity
    
    
    Bond
    
    
    Balanced
    
    
    Market
    
    
    Other
    
    
    TotalGMDB only
    
    $
    343,921
    
    
    
    100,346
    
    
    
    56,066
    
    
    
    19,417
    
    
    
    253
    
    
    $
    520,003GMDB and GMIB
    
    
    110,333
    
    
    
    24,795
    
    
    
    21,938
    
    
    
    3,179
    
    
    
    1,287
    
    
    
    161,532GMDB and GMWB
    
    
    7,083
    
    
    
    1,771
    
    
    
    2,469
    
    
    
    16
    
    
    
    298
    
    
    
    11,637GMWB only
    
    
    7,233
    
    
    
    1,903
    
    
    
    1,713
    
    
    
    57
    
    
    
    370
    
    
    
    11,276GMIB only
    
    
    4,750
    
    
    
    809
    
    
    
    534
    
    
    
    
    
    
    
    106
    
    
    
    6,199No guaranteed benefit
    
    
    2,271
    
    
    
    372
    
    
    
    366
    
    
    
    
    
    
    
    89
    
    
    
    3,098Total
    
    $
    475,591
    
    
    
    129,996
    
    
    
    83,086
    
    
    
    22,669
    
    
    
    2,403
    
    
    $
    713,745
 20




---



##### 



2005MoneyEquity
    
    
    Bond
    
    
    Market
    
    
    Balanced
    
    
    Other
    
    
    TotalGMDB only
    
    $
    371,277
    
    
    
    117,433
    
    
    
    53,033
    
    
    
    20,933
    
    
    
    161
    
    
    $
    562,837GMDB and GMIB
    
    
    79,528
    
    
    
    20,512
    
    
    
    17,093
    
    
    
    3,815
    
    
    
    699
    
    
    
    121,647GMIB only
    
    
    1,847
    
    
    
    513
    
    
    
    
    
    
    
    316
    
    
    
    114
    
    
    
    2,790No guaranteed benefit
    
    
    1,010
    
    
    
    157
    
    
    
    250
    
    
    
    
    
    
    
    71
    
    
    
    1,488Total
    
    $
    453,662
    
    
    
    138,615
    
    
    
    70,376
    
    
    
    25,064
    
    
    
    1,045
    
    
    $
    688,762
 Variable Life Contracts Containing Guaranteed Benefits
    2006
    
    
    2005Balanced
    
    $
    108,938
    
    
    $
    102,463Equity
    
    
    82,920
    
    
    
    83,953Bond
    
    
    32,903
    
    
    
    35,692Money Market
    
    
    31,506
    
    
    
    33,530Other
    
    
    
    
    
    
    1,861Total
    
    $
    256,267
    
    
    $
    257,499
 Note 7. Federal Income Taxes
  2006
    
    
    2005
    
    
    2004Provisions for income taxes computed at Federal statutory rate
    
    $
    3,847
    
    
    $
    2,533
    
    
    $
    3,893Increase (decrease) in income taxes resulting from:Dividend received deduction
    
    
    (360
    )
    
    
    (772
    )
    
    
    (622
    )Foreign tax credit
    
    
    (61
    )
    
    
    10
    
    
    
    (12
    )Federal income tax provision
    
    $
    3,426
    
    
    $
    1,771
    
    
    $
    3,259
  21




---



##### 



2006
    
    
    2005
    
    
    2004Deferred sales inducements
    
    $
    434
    
    
    $
    210
    
    
    $
    DAC (1)
    
    
    49
    
    
    
    (1,401
    )
    
    
    1,414Investment adjustment
    
    
    27
    
    
    
    693
    
    
    
    (19
    )Policyholder account balances (1)
    
    
    (740
    )
    
    
    (316
    )
    
    
    (733
    )Deferred Federal income tax provision (benefit)
    
    $
    (230
    )
    
    $
    (814
    )
    
    $
    662
 
 (1)
    
    The 2004 amounts exclude deferred tax benefits related to the adoption of SOP 03-1
(see Note 1 to the Financial Statements).  2006
    
    
    2005Deferred tax assets:Policyholder account balances
    
    $
    3,807
    
    
    $
    3,067Investment adjustments
    
    
    745
    
    
    
    772Net unrealized investment loss on investment securities
    
    
    406
    
    
    
    634Total deferred tax assets
    
    
    4,958
    
    
    
    4,473Deferred tax liabilities:DAC
    
    
    6,403
    
    
    
    6,354Deferred sales inducements
    
    
    644
    
    
    
    210Total deferred tax liabilities
    
    
    7,047
    
    
    
    6,564Net deferred tax liability
    
    $
    (2,089
    )
    
    $
    (2,091
    )
  Note 8. Reinsurance
    Percentage ofCeded to
    
    Assumed
    
    
    
    
    
    amountGross
    
    other
    
    from other
    
    Net
    
    assumed toamount
    
    companies
    
    companies
    
    amount
    
    netLife insurance inforce
    
    $
    588,909
    
    
    $
    74,383
    
    
    $
    1,435
    
    
    $
    515,961
    
    
    
    0.3
    %
  22




---



##### 



Note 9. Related Party Transactions
      Note 10. Stockholders Equity and Statutory Regulations
    23




---



##### 



Note 11. Commitments and Contingencies
   Note 12. Segment Information
  24




---



##### 



Annuities2006
    
    
    2005
    
    
    2004Policy charge revenue
    
    $
    12,188
    
    
    $
    11,085
    
    
    $
    10,802Net interest spread (1)
    
    
    1,492
    
    
    
    1,055
    
    
    
    707Net realized in investment gains (losses)
    
    
    (67
    )
    
    
    1,799
    
    
    
    113Net revenues
    
    
    13,613
    
    
    
    13,939
    
    
    
    11,622Policy benefits
    
    
    961
    
    
    
    1,136
    
    
    
    1,309Reinsurance premium ceded
    
    
    483
    
    
    
    406
    
    
    
    243Amortization of DAC
    
    
    2,005
    
    
    
    5,529
    
    
    
    (309
    )Insurance expenses and taxes
    
    
    3,256
    
    
    
    3,388
    
    
    
    2,730Net benefits and expenses
    
    
    6,705
    
    
    
    10,459
    
    
    
    3,973Earnings before federal income taxes
    
    
    6,908
    
    
    
    3,480
    
    
    
    7,649Federal income tax provision
    
    
    2,139
    
    
    
    736
    
    
    
    2,431Earnings before change in accounting principal
    
    
    4,769
    
    
    
    2,744
    
    
    
    5,218Change in accounting principal, net of tax
    
    
    
    
    
    
    
    
    
    
    (1,917
    )Net earnings
    
    $
    4,769
    
    
    $
    2,744
    
    
    $
    3,301Select Balance Sheet information:Total assets
    
    $
    843,748
    
    
    $
    837,047
    
    
    $
    875,359Total policyholder liabilities and accruals
    
    
    95,974
    
    
    
    108,782
    
    
    
    122,453
 
 (1)
    
    Management considers investment income net of interest credited to policyholder liabilities in evaluating results. 25




---



##### 



Life Insurance2006
    
    
    2005
    
    
    2004Policy charge revenue
    
    $
    7,389
    
    
    $
    7,346
    
    
    $
    7,624Net interest spread (1)
    
    
    815
    
    
    
    1,045
    
    
    
    552Net realized in investment gains (losses)
    
    
    
    
    
    
    
    
    
    
    Net revenues
    
    
    8,204
    
    
    
    8,391
    
    
    
    8,176Policy benefits
    
    
    1,647
    
    
    
    1,365
    
    
    
    1,705Reinsurance premium ceded
    
    
    1,432
    
    
    
    1,439
    
    
    
    1,479Amortization of DAC
    
    
    1,264
    
    
    
    1,476
    
    
    
    1,130Insurance expenses and taxes
    
    
    1,168
    
    
    
    1,311
    
    
    
    1,269Net benefits and expenses
    
    
    5,511
    
    
    
    5,591
    
    
    
    5,583Earnings before federal income taxes
    
    
    2,693
    
    
    
    2,800
    
    
    
    2,593Federal income tax provision
    
    
    801
    
    
    
    700
    
    
    
    520Earnings before change in accounting principal
    
    
    1,892
    
    
    
    2,100
    
    
    
    2,073Change in accounting principal, net of tax
    
    
    
    
    
    
    
    
    
    
    (115
    )Net earnings
    
    $
    1,892
    
    
    $
    2,100
    
    
    $
    1,958Select Balance Sheet information:Total assets
    
    $
    359,284
    
    
    $
    359,982
    
    
    $
    380,257Total policyholder liabilities and accruals
    
    
    87,693
    
    
    
    85,973
    
    
    
    90,451
 
 (1)
    
    Management considers investment income net of interest credited to policyholder liabilities in evaluating results. 26




---



##### 



Other2006
    
    
    2005
    
    
    2004Policy charge revenue
    
    $
    
    
    
    $
    
    
    
    $
    Net interest spread (1)
    
    
    1,393
    
    
    
    959
    
    
    
    867Net realized in investment gains (losses)
    
    
    (4
    )
    
    
    
    
    
    
    14Net revenues
    
    
    1,389
    
    
    
    959
    
    
    
    881Earnings before federal income taxes
    
    
    1,389
    
    
    
    959
    
    
    
    881Federal income tax provision
    
    
    486
    
    
    
    335
    
    
    
    308Net earnings
    
    $
    903
    
    
    $
    624
    
    
    $
    573Select Balance Sheet information:Total assets
    
    $
    45,511
    
    
    $
    34,605
    
    
    $
    25,963
 
 (1)
    
    Management considers investment income net of interest credited to policyholder
liabilities in evaluating results. 27




---



##### 



2006
    
    
    2005
    
    
    2004Annuities:Variable annuities
    
    $
    12,834
    
    
    $
    11,658
    
    
    $
    11,325Interest-sensitive annuities
    
    
    779
    
    
    
    2,281
    
    
    
    297Total Annuities
    
    
    13,613
    
    
    
    13,939
    
    
    
    11,622Life Insurance:Variable Life
    
    
    8,147
    
    
    
    8,346
    
    
    
    8,134Interest-sensitive whole life
    
    
    57
    
    
    
    45
    
    
    
    42Total Life Insurance
    
    
    8,204
    
    
    
    8,391
    
    
    
    8,176Other
    
    
    1,389
    
    
    
    959
    
    
    
    881Net Revenues (1)
    
    $
    23,206
    
    
    $
    23,289
    
    
    $
    20,679
 
 (1)
    
    Management considers investment income net of interest credited to policyholder
liabilities in evaluating Net Revenues.  28




---



##### 



SIGNATURES

Pursuant to the
requirements of Section 13 or 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 26, 2007 |  | By:                                               | /s/ Joseph E. JusticeJoseph E. Justice
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.

|                                       |  |                                                                              |  |               
|-------------------------------------- |  | ---------------------------------------------------------------------------- |  | --------------
|Signature                              |  | Title                                                                        |  | Date          
|                                      
|/s/ Barry G. SkolnickBarry G. Skolnick |  | Director, Senior Vice President,
and General Counsel*                        |  | March 26, 2007
|                                      
|/s/ Joseph E. JusticeJoseph E. Justice |  | Director, Senior Vice President,
Chief Financial Officer, and
Treasurer      |  | March 26, 2007
|                                      
|*Deborah J. Adler                      |  | Chairman of the Board, President, Chief
Executive Officer, and Chief Actuary |  | March 26, 2007





---



##### 



|                                         |  |                                                                                            |  |               
|---------------------------------------- |  | ------------------------------------------------------------------------------------------ |  | --------------
|                                        
|*Frederick J. C. Butler                  |  | Director                                                                                   |  | March 26, 2007
|                                        
|*John C. Carroll                         |  | Director and Senior Vice President                                                         |  | March 26, 2007
|                                        
|*Richard M. Drew                         |  | Director                                                                                   |  | March 26, 2007
|                                        
|*Robert L. Israeloff                     |  | Director                                                                                   |  | March 26, 2007
|                                        
|*Robert A. King                          |  | Director                                                                                   |  | March 26, 2007
|                                        
|*Paul Michalowski                        |  | Director and Vice President                                                                |  | March 26, 2007
|                                        
|*Irving M. Pollack                       |  | Director                                                                                   |  | March 26, 2007
|                                        
|*Concetta M. Ruggiero                    |  | Director and Senior Vice President                                                         |  | March 26, 2007
|                                        
|*Lori M. Salvo                           |  | Director, Vice President,
 Chief Compliance Officer, Deputy General Counsel, and Secretary |  | March 26, 2007
|                                        
|*Cynthia Kahn Sherman                    |  | Director                                                                                   |  | March 26, 2007
|                                        
|/s/ Elizabeth
GarrisonElizabeth Garrison |  | Vice President and Controller                                                              |  | March 26, 2007




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






---



##### 



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





---



##### 



EXHIBIT INDEX

|            |  |                                                                                  |  |                                                                                                                                                                                                               
|----------- |  | -------------------------------------------------------------------------------- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit No. |  | Description                                                                      |  | Location                                                                                                                                                                                                      
|            |  |                                                                                  |  |                                                                                                                                                                                                               
|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.                                 

E-1



---



##### 



|     |  |                                                                                                                                                                               |  |                                                                                                                                                                                                          
|---- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|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
        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                                                                                                        |  | Incorporated 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.  

E-2



---



##### 



|      |  |                                                                                                                                                                                       |  |                                                                                                                                                                               
|----- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|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.
|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.                                   

E-3



---



##### 



|      |  |                                                                                                               |  |                                                                                                                                                                              
|----- |  | ------------------------------------------------------------------------------------------------------------- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|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 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 registered public accounting firm                       |  | Exhibit 23.1                                                                                                                                                                 
|     
|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.
|24.2  |  | 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.

E-4



---



##### 



|      |  |                                                                                                                                                                          |  |                                                                                                                                                                              
|----- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------ |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|24.3  |  | 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.
|24.4  |  | 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.   
|24.5  |  | 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.
|24.6  |  | 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.
|24.7  |  | 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.                                 
|24.8  |  | Power of attorney of John C. Carroll                                                                                                                                     |  | Incorporated by
reference to Exhibit 24.8 to Annual Report on Form 10-K, File Nos.
33-34562, 33-60288, and 333-48983, filed March 29, 2006.                                  
|24.9  |  | Power of attorney of Paul Michalowski                                                                                                                                    |  | Incorporated by
reference to Exhibit 24.9 to Annual Report on Form 10-K, File Nos.
33-34562, 33-60288, and 333-48983, filed March 29, 2006.                                  
|24.10 |  | 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.          
|24.11 |  | 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.          
|24.12 |  | Power of attorney of Deborah
        J. Adler                                                                                                                            |  | Incorporated by
reference to Exhibit 24.13 to Annual Report on Form 10-K, File Nos.
33-34562, 33-60288, and 333-48983, filed March 29, 2004.                                 
|24.13 |  | Power of attorney of Concetta
        M. Ruggiero                                                                                                                        |  | 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 29, 2004.                                 
|31.1  |  | Certification by the Chief Executive Officer of the Registrant
pursuant to Rule 15d-14(a).                                                                               |  | Exhibit 31.1                                                                                                                                                                 
|31.2  |  | Certification of the Chief Financial Officer of the Registrant
pursuant to Rule 15d-14(a).                                                                               |  | Exhibit 31.2                                                                                                                                                                 
|32.1  |  | Certification by the Chief Executive Officer of the
Registrant pursuant to 18 U.S.C. Section 1350, as
adopted pursuant to Section 906 of the Sarbanes-Oxley
Act of 2002. |  | Exhibit 32.1                                                                                                                                                                 
|32.2  |  | Certification by the Chief Financial Officer of the
Registrant pursuant to 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |  | Exhibit 32.2                                                                                                                                                                 

E-5