<PAGE>   1
                                    FORM 10-K

                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

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

                   For the fiscal year ended December 31, 2000

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

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

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

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

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

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

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

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

                    APPLICABLE ONLY TO CORPORATE REGISTRANTS

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

                                                      Common 220,000
                                                             -------

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



<PAGE>   2
                                     PART I

Item 1. Business.

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

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

        The Registrant is currently licensed to conduct life insurance and
annuity business in nine states. It currently markets its annuity products and
variable life insurance products only in the state of New York. During 2000,
annuity and life insurance sales were made principally in New York (96%, as
measured by total contract owner deposits).

        The Registrant's life insurance and annuity products are sold by
licensed agents affiliated with Merrill Lynch Life Agency, Inc. ("MLLA"), a
wholly owned subsidiary of Merrill Lynch, Pierce, Fenner & Smith Incorporated
("MLPF&S"), pursuant to a general agency agreement by and between the Registrant
and MLLA. Sales are made by career life insurance agents whose sole
responsibility is the sale and servicing of insurance, and by Financial
Consultants of MLPF&S who are also licensed as insurance agents. At December 31,
2000, approximately 2,338 agents of MLLA were authorized to act for the
Registrant.

Item 2. Properties.

        The Registrant's home office is located at 100 Church Street, 11th
Floor, New York, New York. This office space is leased from MLPF&S. In addition,
personnel performing services for the Registrant pursuant to its Management
Services Agreement operate in MLIG office space. Merrill Lynch Insurance Group
Services, Inc. ("MLIGS"), an affiliate of MLIG owns office space in
Jacksonville, Florida. MLIGS also leases certain office space in Springfield,
Massachusetts from Picknelly Family Limited Partnership. MLIG occupies certain
office space in Princeton, New Jersey through Merrill Lynch & Co. An allocable
share of the cost of each of these premises is paid by the Registrant through
the service agreement with MLIG.

Item 3. Legal Proceedings.

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

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


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

                                    PART II

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

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

        During 2000, the Registrant paid a $35,000 ordinary dividend to MLIG.
No other cash dividends have been declared on Registrant's common stock at any
time during the two most recent fiscal years. Under laws applicable to insurance
companies domiciled in the State of New York, notice of intention to declare a
dividend must be filed with the New York Superintendent of Insurance who may
disallow the payment. See Note 7 to the Registrant's financial statements.

        (b) Not applicable.

Item 6. Selected Financial Data.

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



                                    - 2 -
<PAGE>   3

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

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

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

BUSINESS ENVIRONMENT

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

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

Demographically, the population is aging, which favors life insurance and
annuity products. However, current tax legislative proposals, which are in
various stages of the political process, may have a material impact on the life
insurance industry by reducing the need for certain products used in estate
planning and/or reducing tax advantages associated with certain products.

ECONOMIC ENVIRONMENT

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

-       fluctuations in medium term interest rates

-       fluctuations in credit spreads

-       equity market performance

ML of New York defines medium term interest rates as the average interest rate
on U.S. Treasury securities with terms of 1 to 10 years. During 2000, medium
term interest rates decreased approximately 111 basis points to yield, on
average, 5.13% at December 31, 2000. Although medium term interest rates
decreased on a year-to-year basis they were, on average, higher during 2000 as
compared to 1999. The average medium term yield during 2000 was 6.07% as
compared to 5.47% during 1999.

                                     - 3 -
<PAGE>   4

ML of New York defines credit spreads as the interest rate spread between the
5-year U.S Treasury Bond Index and the 5-year Corporate Industrial Bond Index.
During 2000, credit spreads widened approximately 67 basis points to end the
year at 178 basis points.

There are several standard indices published on a daily basis that measure
performance of selected components of the U.S. equity market. Examples include
the Dow Jones Industrial Average ("Dow"), NASDAQ Composite Index ("NASDAQ") and
the Standard & Poor's 500 Composite Stock Price Index ("S&P Index"). During
2000, the U.S. equity market experienced increased volatility, particularly
during the fourth quarter, and all three indices closed significantly lower from
their respective levels at December 31, 1999. During 2000, the Dow, NASDAQ and
S&P Index decreased 6.2%, 39.3% and 10.1%, respectively. Although the investment
performance in the underlying mutual funds supporting ML of New York's variable
products do not replicate the returns on any specific U.S. equity market index;
investment performance will generally increase or decrease with corresponding
increases or decreases in the overall U.S. equity market.

SUMMARY

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

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

ML of New York has strategically placed its marketing emphasis on the sale of
variable annuities, modified guaranteed annuities and variable life insurance
products. These products are designed to address the retirement and estate
planning needs of Merrill Lynch & Co.'s clients. The variable annuity product
provides tax-deferred retirement savings with the opportunity for diversified
investing in a wide selection of underlying mutual fund portfolios. The modified
guaranteed annuity product provides a guaranteed fixed interest rate for a
period selected by the contract owner, but imposes a market value adjustment for
withdrawals prior to the expiration of the guarantee period. ML of New York
offers a variable life insurance product that provides life insurance protection
and allows the contract owner to allocate the cash value of the policy to
underlying diversified mutual fund portfolios. The following table summarizes ML
of New York's sales activity for the three years ending December 31, 2000:

                                     - 4 -
<PAGE>   5

<TABLE>
<CAPTION>
                                                     (In Millions)                            % Change
                                     ---------------------------------------------- -----------------------------
                                           2000           1999            1998       2000 - 1999    1999 - 1998
                                     --------------- -------------- --------------- -------------- --------------
<S>                                  <C>             <C>            <C>             <C>            <C>
Variable Annuities                   $       74.3    $     78.1     $      97.2               -5%           -20%

Modified Guaranteed Annuities                 3.1           1.8             1.7               72%             6%

Variable Life Insurance                       5.2           7.4             9.6              -30%           -23%

Other                                         0.1           0.2             0.2              -50%             -
                                     --------------- -------------- --------------- -------------- --------------

  Total Direct Premiums Collected    $       82.7    $     87.5     $     108.7               -5%           -20%
                                     =============== ============== =============== ============== ==============
</TABLE>

ML of New York's total sales decreased 5% during 2000 as compared to 1999 and
20% during 1999 as compared to 1998 primarily due to reductions in variable
annuity sales. Variable annuity sales, however, continue to dominate overall
sales by comprising 90%, 89%, and 89% of total direct premiums collected during
2000, 1999, and 1998, respectively.

Variable annuity sales decreased 5% during 2000 as compared to 1999 and 20%
during 1999 as compared to 1998. The decrease in variable annuity sales during
2000 primarily occurred in the fourth quarter amid increased volatility and a
significant downturn in the equity market. Also contributing to the decreases in
variable annuity sales is the impact of regulations regarding the replacement of
certain life insurance policies and annuity contracts enacted by the New York
Insurance Department during the fourth quarter 1998. The new regulations
significantly increase the complexity and length of time to process most
replacements. In management's opinion, sales volumes have been negatively
impacted within its distribution system by the increase in administrative burden
for life insurance and annuity sales. The following table compares ML of New
York's variable annuity sales received by the source of funds:

<TABLE>
<CAPTION>
                                                 ($ In Millions)                          % Change
                                      ---------------------------------------   ------------------------------
                                           2000         1999          1998       1999 - 1998      1999 - 1998
                                       -----------   ----------   -----------    -------------   --------------
<S>                                    <C>          <C>          <C>             <C>             <C>
   Internal Replacement Policies       $     5.3    $     7.3    $     13.8            -27%             -47%

   External Replacement Policies            23.5         21.6          33.5              9%             -36%
                                       -----------  -----------  ------------    ------------    -------------

     Total Replacement Policies             28.8         28.9          47.3              -              -39%

   New Business                             45.5         49.2          49.9             -8%              -1%

                                       -----------  -----------  ------------    ------------    -------------
     Total Variable Annuity Deposits   $    74.3    $    78.1    $     97.2             -5%             -20%
                                       ===========  ===========  ============    ============    =============
</TABLE>

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

                                     - 5 -
<PAGE>   6

During 2000, policy and contract surrenders increased $7.8 million (or 13%) to
$67.3 million as compared to 1999 primarily due to an increase in variable
annuity surrenders. During 2000, variable annuity surrenders increased $13.9
million (or 56%) to 38.5 million. This increase is primarily due to the
anticipated increase in surrender activity due to the increase in the number of
contracts reaching the end of their surrender charge period as compared to 1999.
Partially offsetting the increase in variable annuity surrenders was a $3.4
million (or 22%) decrease in variable life surrenders and a $2.7 million (or
49%) decrease in fixed annuity surrenders.

FINANCIAL CONDITION

At December 31, 2000, ML of New York's assets were $1.3 billion, or $83.3
million lower than the $1.4 billion in assets at December 31, 1999 primarily due
to a decrease in separate account assets. Separate account assets decreased
$51.3 million (or 5%) to $1.0 billion primarily due to unfavorable investment
performance during the fourth quarter 2000 associated with the general decline
in the U.S. equity market. Changes in separate account assets for the first
three quarters of 2000 and the fourth quarter 2000 were as follows:

<TABLE>
<CAPTION>
                                                     1Q00-3Q00                4Q00                Total
                                                     -------------        -------------        -------------
<S>                                               <C>                  <C>                  <C>
   Investment performance - variable products     $     25.5           $      (77.2)        $      (51.7)

   Net cashflow -  variable products                     5.7                   (5.3)                 0.4
                                                  ----------------     ----------------    -----------------
                                                  $     31.2           $      (82.5)        $      (51.3)
                                                  ================     ================    =================
</TABLE>

Assets excluding separate account assets ("general account assets") decreased
$32.0 million primarily due to the $35.0 million dividend payment to MLIG and
the declining number of fixed rate contracts inforce. Partially offsetting the
decline in general account assets was the increase in market values of
investment securities associated with the decreasing interest rate environment.
During 2000, market values on invested assets increased $5.8 million. After
adjusting for deferred federal income taxes, total general account assets
increased $4.4 million as a result of the year-to-year decrease in interest
rates.

During 2000, ML of New York experienced contract owner withdrawals that exceeded
deposits by $3.5 million. The components of contract owner transactions are as
follows:

<TABLE>
<CAPTION>
(In Millions)                                                                                            2000
                                                                                                    -----------
<S>                                                                                                 <C>
Premiums collected                                                                                   $   82.7
Internal tax-free exchanges                                                                              (5.4)
                                                                                                    -----------
     Net contract owner deposits                                                                         77.3

Contract owner withdrawals                                                                              100.1
Net transfers to/from separate accounts                                                                 (19.3)
                                                                                                    -----------
     Net contract owner withdrawals                                                                      80.8
                                                                                                    -----------

Net contract owner activity                                                                          $   (3.5)
                                                                                                    ===========
</TABLE>

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

<TABLE>
<CAPTION>
<S>                                                                                   <C>
Investment Grade Fixed Maturity Securities (Rated A or higher)..................         41%
Policy Loans....................................................................         36%
Investment Grade Fixed Maturity Securities (Rated BBB)..........................         14%
Equity Securities...............................................................          7%
Non-Investment Grade Fixed Maturity Securities..................................          2%
                                                                                      --------
                                                                                        100%
                                                                                      ========
</TABLE>

                                     - 6 -
<PAGE>   7

ML of New York's investment in collateralized mortgage obligations ("CMO") and
mortgage backed securities ("MBS") had a carrying value of $4.0 million as of
December 31, 2000. At December 31, 2000, all of ML of New York's CMO and MBS
holdings were fully collateralized by the Government National Mortgage
Association, the Federal National Mortgage Association or the Federal Home Loan
Mortgage Corporation. CMO and MBS securities are structured to allow the
investor to determine, within certain limits, the amount of interest rate risk,
prepayment risk and default risk that the investor is willing to accept. It is
this level of risk that determines the degree to which the yields on CMO and MBS
securities will exceed the yields that can be obtained from similarly rated
corporate securities.

As of December 31, 2000, ML of New York had 2,401 life insurance and annuity
contracts inforce with interest rate guarantees. The estimated average rate of
interest credited on behalf of contract owners was 4.90% during 2000. Invested
assets supporting liabilities with interest rate guarantees had an estimated
effective yield of 7.27% during 2000. The number of life insurance and annuity
contracts inforce with interest rate guarantees decreased 14% as compared to
1999.


                                     - 7 -
<PAGE>   8
LIQUIDITY AND CAPITAL RESOURCES

ML of New York's liquidity requirements include the payment of sales commissions
and other underwriting expenses and the funding of its contractual obligations
for the life insurance and annuity contracts it has inforce. ML of New York has
developed and utilizes a cash flow projection system and regularly performs
asset / liability duration matching in the management of its asset and liability
portfolios. ML of New York anticipates funding all its cash requirements
utilizing cash from operations, normal investment maturities and anticipated
calls and repayments, consistent with prior years. As of December 31, 2000, ML
of New York's assets included $151.9 million of cash, short-term investments and
investment grade publicly traded available-for-sale securities that could be
liquidated if funds were required.

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

The National Association of Insurance Commissioners utilizes the Risk Based
Capital ("RBC") adequacy monitoring system. The RBC calculates the amount of
adjusted capital that a life insurance company should have based upon that
company's risk profile. As of December 31, 2000 and 1999, based on the RBC
formula, ML of New York's total adjusted capital level was well in excess of the
minimum amount of capital required to avoid regulatory action.

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

ML of New York has developed a comprehensive capital management plan that will
continue to provide appropriate levels of capital for the risks that ML of New
York assumes, but will allow ML of New York to reduce its absolute level of
surplus. In implementing this plan, ML of New York paid $35.0 million in
dividends to MLIG during 2000. No dividends were paid during 1999 and 1998.

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

RESULTS OF OPERATIONS

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

-       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, and

-       the charges imposed on variable life insurance and variable annuity
        contracts

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

2000 compared to 1999

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

                                     - 8 -
<PAGE>   9

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

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

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

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

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

Amortization of deferred policy acquisition costs decreased $0.9 million (or
18%) to $4.0 million during 2000. The retrospective adjustment of deferred
policy acquisition costs that occurred during 2000 resulted in a $0.8 million
decrease in amortization of deferred policy acquisition costs.


1999 compared to 1998

ML of New York recorded net earnings of $6.6 million and $4.8 million for 1999
and 1998, respectively.

Policy charge revenue increased $2.1 million (or 14%) during 1999 as compared to
1998. The increase in policy charge revenue is primarily attributable to the
increase in average variable account balances. During 1999, average
variable account balances increased $142.2 million (or 18%) as compared to 1998.
During the same time period, asset based policy charges increased $1.8 million
(or 20%) consistent with the growth in the average variable account balances.

Net earnings derived from interest spread decreased $0.3 million during 1999 as
compared to 1998. The reduction in interest spread is primarily a result of the
declining number of fixed rate contracts inforce.

Net realized investment losses increased $1.1 million (or 55%) to $3.1 million
during 1999 primarily due to two factors. First, there was a $0.8 million
decrease in interest related realized gains as compared to 1998. This decrease
is primarily attributable to reduced sales of investments supporting the
modified guaranteed

                                    - 9 -
<PAGE>   10

annuity product. The reduction in investment sales is attributable to lower
surrender activity during 1999 as compared to 1998. Second, credit related
losses increased $0.3 million during 1999 as compared to 1998.

Policy benefits decreased $1.0 million (or 61%) during 1999 as compared to 1998
due to decreased mortality for variable life insurance products.

Reinsurance premium ceded increased $0.1 million (or 7%) to $1.8 million during
1999. This increase is attributable to the combined effect of the increasing age
of contract owners and increased insurance inforce.

Amortization of deferred policy acquisition costs decreased $0.9 million (or
16%) to $4.8 million in 1999. The retrospective adjustment of deferred policy
acquisition costs that occurred during 1998 resulted in a $1.5 million increase
in amortization of deferred policy acquisition costs. Excluding this adjustment,
amortization of deferred policy acquisition costs increased $0.6 million as
compared to 1998 primarily due to the growth in policy fee income.

Insurance expenses and taxes decreased $0.7 million (or 14%) during 1999 as
compared to 1998. The decrease in insurance expenses and taxes is primarily due
to reductions in salary and office rental expenses associated with ML of New
York's closing of it's New York service center, as well as expense reduction
procedures implemented by Merrill Lynch & Co. Both of these events occurred
during the third quarter 1998.

ML of New York's effective federal income tax rate increased to 33% for 1999
from 28% for 1998 principally due to a reduction of certain permanent
differences recorded during 1999 as compared to 1998.


Segment Information

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

<TABLE>
<CAPTION>
          Segment                        2000                        1999                        1998
          -------                        ----                        ----                        ----
<S>                                      <C>                         <C>                         <C>
Life Insurance                           $2.8                        $2.6                        $0.5
Annuities                                 5.3                         2.4                         2.6
Other                                     2.0                         1.6                         1.7
</TABLE>

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

The increase in annuity net earnings during 2000 as compared to 1999 is
primarily due to the reductions in net realized investment losses, noted above.

ML of New York is not dependent upon any single customer, and no single customer
accounted for more than 10% of its revenues during 2000.

Inflation

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

Item 7A. Quantitive and Qualitative Disclosures About Market Risk

MARKET RISK

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

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

Interest Rate Risk

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

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

<TABLE>
<CAPTION>
                                  Change in Fair Value
                                      (In Millions)
                                 ------------------------
Change in Interest Rates           2000          1999
-----------------------------    ----------    ----------
<S>                              <C>           <C>
+ 100 basis points               ($2.0)        ($3.5)
+ 50 basis points                ($0.9)        ($1.7)
- 50 basis points                 $0.9          $1.5
- 100 basis points                $1.7          $2.9
</TABLE>

ML of New York's model is based on existing business inforce as of year-end 2000
without considering the impact of new life insurance and annuity sales on assets
or liabilities. The model incorporates ML of New York's fixed maturity
securities and preferred equity investments excluding variable rate securities
with rate resetting in less than ninety days, securities with a maturity of less
than ninety days, and securities that are in or near default. The changes in
interest rate scenarios, noted above, assume parallel shifts in the yield curve
occurring uniformly throughout the year.

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

Credit Spread Risk

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

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

<TABLE>
<CAPTION>
                                     Change in Fair Value
                                        (In Millions)
                                    -----------------------
Change in Credit Spreads              2000          1999
-------------------------------     ---------     ---------
<S>                                   <C>           <C>
+ 50 basis points                     ($2.4)        ($3.2)
+ 10 basis points                     ($0.5)        ($0.9)
- 10 basis points                      $0.5          $0.3
- 50 basis points                      $2.4          $2.5
</TABLE>

ML of New York's model is based on existing business inforce as of year-end 2000
without considering the impact of new life insurance and annuity sales on
assets. The model incorporates ML of New York's fixed maturity securities and
preferred equity investments excluding securities with a maturity of less than
ninety days and securities that are in or near default. The changes in credit
spreads, noted above, assume a uniform occurrence throughout the year.

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

Credit Risk

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

                                     - 10 -
<PAGE>   11
Item 8.           Financial Statements and Supplementary Data.

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

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

                  Not applicable.

                                    PART III

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

                                     PART IV

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

                  (a)      Financial Statements and Exhibits.

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

                           a.       Independent Auditors' Report dated February
                                    27, 2001.

                           b.       Balance Sheets at December 31, 2000 and
                                    1999.

                           c.       Statements of Earnings for the Years Ended
                                    December 31, 2000, 1999 and 1998.

                           d.       Statements of Comprehensive Income for the
                                    Years Ended December 31, 2000, 1999 and
                                    1998.

                           e.       Statements of Stockholder's Equity for the
                                    Years Ended December 31, 2000, 1999 and
                                    1998.

                           f.       Statements of Cash Flows for the Years Ended
                                    December 31, 2000, 1999 and 1998.

                           g.       Notes to Financial Statements for the Years
                                    Ended December 31, 2000, 1999 and 1998.

                           (2)      Not applicable.

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


                                     - 12 -



<PAGE>   12


              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).



                                     - 13 -

<PAGE>   13


              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.)



                                     - 14 -
<PAGE>   14


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

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

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

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

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

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

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

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



                                     - 15 -
<PAGE>   15

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

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

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

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

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

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

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

                                     - 16 -
<PAGE>   16

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

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

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

              24.11  Power of attorney of Matthew J. Rider is filed herewith.

              24.12  Power of attorney of Christopher J. Grady is filed
                     herewith.

       (b)    Reports on Form 8-K.

              No reports on Form 8-K have been filed during the last quarter of
              the fiscal year ended December 31, 2000.



                                     - 17 -
<PAGE>   17


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

Balance Sheets at December 31, 2000 and 1999...............................................................

Statements of Earnings for the Years Ended December 31, 2000, 1999 and 1998 ...............................

Statements of Comprehensive Income for the Years Ended December 31, 2000, 1999 and 1998....................

Statements of Stockholder's Equity for the Years Ended December 31, 2000, 1999 and 1998....................

Statements of Cash Flows for the Years Ended December 31, 2000, 1999 and 1998..............................

Notes to Financial Statements for the Years Ended December 31, 2000, 1999 and 1998.........................
</TABLE>

<PAGE>   18

















INDEPENDENT AUDITORS' REPORT



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

We have audited the accompanying balance sheets of ML Life
Insurance Company of New York (the "Company"), a wholly owned
subsidiary of Merrill Lynch Insurance Group, Inc., as of December
31, 2000 and 1999, and the related statements of earnings,
comprehensive income, stockholder's equity, and cash flows for
each of the three years in the period ended December 31, 2000.
These financial statements are the responsibility of the
Company's management. Our responsibility is to express an opinion
on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards
generally accepted in the United States of America. Those
standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are
free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in
the financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable
basis for our opinion.

In our opinion, such financial statements present fairly, in all
material respects, the financial position of the Company as of
December 31, 2000 and 1999, and the results of its operations and
its cash flows for each of the three years in the period ended
December 31, 2000 in conformity with accounting principles
generally accepted in the United States of America.





/s/ DELOITTE & TOUCHE LLP

NEW YORK, NEW YORK
February 27, 2001





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

BALANCE SHEETS
AS OF DECEMBER 31, 2000 AND 1999
(Dollars in thousands, except common stock par value and shares)
<TABLE>
<CAPTION>

ASSETS                                                                        2000                  1999
------                                                                     -----------          ------------
<S>                                                                        <C>                  <C>
INVESTMENTS:
 Fixed maturity securities, at estimated fair value
   (amortized cost: 2000 - $142,648; 1999 - $166,016)                      $   140,657          $   160,437
 Equity securities, at estimated fair value
   (cost: 2000 - $18,313; 1999 - $19,782)                                       17,695               16,992
 Policy loans on insurance contracts                                            90,367               88,165
                                                                           -----------          ------------
   Total Investments                                                           248,719              265,594


CASH AND CASH EQUIVALENTS                                                       19,514               34,195
ACCRUED INVESTMENT INCOME                                                        4,621                4,990
DEFERRED POLICY ACQUISITION COSTS                                               30,195               29,703
FEDERAL INCOME TAXES - DEFERRED                                                    581                3,892
FEDERAL INCOME TAXES - CURRENT                                                      62                    -
REINSURANCE RECEIVABLES                                                          1,978                  153
OTHER ASSETS                                                                     4,099                3,292
SEPARATE ACCOUNTS ASSETS                                                     1,035,626            1,086,875
                                                                           -----------          ------------


TOTAL ASSETS                                                               $ 1,345,395          $ 1,428,694
                                                                           ===========          ============
</TABLE>















See accompanying notes to financial statements.





<TABLE>
<CAPTION>

LIABILITIES AND STOCKHOLDER'S EQUITY                                         2000               1999
------------------------------------                                      -----------       ------------
<S>                                                                       <C>               <C>
LIABILITIES:
 POLICYHOLDER LIABILITIES AND ACCRUALS:
   Policyholders' account balances                                        $   239,140       $   248,016
   Claims and claims settlement expenses                                        4,938             3,762
                                                                          -----------       ------------
          Total policyholder liabilities and accruals                         244,078           251,778

 OTHER POLICYHOLDER FUNDS                                                         986             1,195
 FEDERAL INCOME TAXES - CURRENT                                                     -             1,420
 AFFILIATED PAYABLES - NET                                                        926             1,030
 OTHER LIABILITIES                                                              2,176             2,414
 SEPARATE ACCOUNTS LIABILITIES                                              1,035,626         1,086,875
                                                                          -----------       ------------
          Total Liabilities                                                 1,283,792         1,344,712
                                                                          -----------       ------------
STOCKHOLDER'S EQUITY:
 Common stock, $10 par value - 220,000 shares
   authorized, issued and outstanding                                           2,200             2,200
 Additional paid-in capital                                                    52,310            66,259
 Retained earnings                                                             10,147            21,051
 Accumulated other comprehensive loss                                          (3,054)           (5,528)
                                                                          -----------       ------------
          Total Stockholder's Equity                                           61,603            83,982
                                                                          -----------       ------------
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY                                $ 1,345,395       $ 1,428,694
                                                                          ===========       ============
</TABLE>









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, 2000, 1999 AND 1998
(Dollars in thousands)
<TABLE>
<CAPTION>

                                                                         2000             1999            1998
<S>                                                                   ----------       ----------     ----------
REVENUES:                                                             <C>             <C>             <C>

 Policy charge revenue                                                $  20,216       $  17,046       $  14,917
 Net investment income                                                   18,687          19,400          21,549
 Net realized investment losses                                             (98)         (3,100)         (1,998)
                                                                      ----------      ----------      ----------
        Total Revenues                                                   38,805          33,346          34,468
                                                                      ----------      ----------      ----------
BENEFITS AND EXPENSES:
 Interest credited to policyholders' account balances                    11,910          12,013          13,832
 Policy benefits (net of reinsurance recoveries: 2000 - $2,419
   1999 - $542; 1998 - $1,191)                                            1,787             632           1,630
 Reinsurance premium ceded                                                2,011           1,822           1,705
 Amortization of deferred policy acquisition costs                        3,969           4,845           5,759
 Insurance expenses and taxes                                             4,147           4,195           4,900
                                                                      ----------      ----------      ----------
        Total Benefits and Expenses                                      23,824          23,507          27,826
                                                                      ----------      ----------      ----------
        Earnings Before Federal Income Tax Provision                     14,981           9,839           6,642
                                                                      ----------      ----------      ----------
FEDERAL INCOME TAX PROVISION (BENEFIT):
 Current                                                                  2,855           4,805           3,337
 Deferred                                                                 1,979          (1,555)         (1,465)
                                                                      ----------      ----------      ----------
        Total Federal Income Tax Provision                                4,834           3,250           1,872
                                                                      ----------      ----------      ----------
NET EARNINGS                                                          $  10,147       $   6,589       $   4,770
                                                                      ==========      ==========      ==========
</TABLE>












See accompanying notes to financial statements.

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, 2000, 1999 AND 1998
(Dollars in thousands)
<TABLE>
<CAPTION>

                                                                         2000             1999            1998
                                                                      ----------      ----------      ----------
<S>                                                                   <C>             <C>             <C>
NET EARNINGS                                                          $  10,147       $   6,589       $   4,770
                                                                      ----------      ----------      ----------
OTHER COMPREHENSIVE INCOME (LOSS)

 Net unrealized gains (losses) on available-for-sale securities:
   Net unrealized holding gains (losses) arising during the period        5,667         (14,221)         (4,329)
   Reclassification adjustment for losses included in net earnings          110           3,708           1,994
                                                                      ----------      ----------      ----------
   Net unrealized gains (losses) on investment securities                 5,777         (10,513)         (2,335)

   Adjustments for:
              Policyholder liabilities                                   (1,971)          3,496           1,417
              Deferred federal income taxes                              (1,332)          2,456             321
                                                                      ----------      ----------      ----------
 Total other comprehensive income (loss), net of tax                      2,474          (4,561)           (597)
                                                                      ----------      ----------      ----------
COMPREHENSIVE INCOME                                                  $  12,621       $   2,028       $   4,173
                                                                      ==========      ==========      ==========
</TABLE>























See accompanying notes to financial statements.

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

STATEMENTS OF STOCKHOLDER'S EQUITY
FOR THE YEARS ENDED DECEMBER 31, 2000, 1999 AND 1998
(Dollars in thousands)
<TABLE>
<CAPTION>
                                                                                              Accumulated
                                                            Additional                           other               Total
                                                Common       paid-in          Retained       comprehensive       stockholder's
                                                stock        capital          earnings           loss                equity
                                              ---------     ----------        ---------      -------------       -------------
<S>                                           <C>           <C>               <C>            <C>                 <C>
BALANCE, JANUARY 1, 1998                      $  2,200      $  66,259         $  9,692       $       (370)       $     77,781

 Net earnings                                                                    4,770                                  4,770
 Other comprehensive loss, net of tax                                                                (597)               (597)
                                              ---------     ----------        ---------      -------------       -------------
BALANCE, DECEMBER 31, 1998                       2,200         66,259           14,462               (967)             81,954

 Net earnings                                                                    6,589                                  6,589
 Other comprehensive loss, net of tax                                                              (4,561)             (4,561)
                                              ---------     ----------        ---------      -------------       -------------
BALANCE, DECEMBER 31, 1999                       2,200         66,259           21,051             (5,528)             83,982

 Dividend to parent                                           (13,949)         (21,051)                               (35,000)
 Net earnings                                                                   10,147                                 10,147
 Other comprehensive income, net of tax                                                             2,474               2,474
                                              ---------     ----------        ---------      -------------       -------------
BALANCE, DECEMBER 31, 2000                    $  2,200      $  52,310         $ 10,147       $     (3,054)       $     61,603
                                              =========     ==========        =========      =============       =============
</TABLE>





















See accompanying notes to financial statements.

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, 2000, 1999 AND 1998
(Dollars in thousands)
<TABLE>
<CAPTION>
                                                                              2000            1999            1998
<S>                                                                        -----------     -----------     -----------
Cash Flows From Operating Activities:                                      <C>             <C>             <C>
Net earnings                                                               $   10,147      $    6,589      $    4,770
Noncash items included in earnings:
Amortization of deferred policy acquisition costs                               3,969           4,845           5,759
Capitalization of policy acquisition costs                                     (4,461)         (4,806)         (5,095)
Amortization (accretion) of investments                                           343             429            (262)
Interest credited to policyholders' account balances                           11,910          12,013          13,832
Provision (benefit) for deferred Federal income tax                             1,979          (1,555)         (1,465)
(Increase) decrease in operating assets:
Accrued investment income                                                         369             (22)            448
Federal income taxes - current                                                    (62)              -               -
Reinsurance receivables                                                        (1,825)            499            (223)
Other                                                                            (790)            952            (856)
Increase (decrease) in operating liabilities:
Claims and claims settlement expenses                                           1,176             776             979
Other policyholder funds                                                         (209)           (588)           (158)
Federal income taxes - current                                                 (1,420)             73            (908)
Affiliated payables                                                              (104)           (223)         (2,239)
Other                                                                            (238)            290             (31)
Other operating activities:
Net realized investment losses                                                     98           3,100           1,998
                                                                           -----------     -----------     -----------
Net cash and cash equivalents provided by operating activities                 20,882          22,372          16,549
                                                                           -----------     -----------     -----------
Cash Flow From Investing Activities:
Proceeds from (payments for):
Sales of available-for-sale securities                                          9,320         171,785         102,967
Maturities of available-for-sale securities                                    27,935          40,227          59,161
Purchases of available-for-sale securities                                    (12,859)       (189,067)       (119,611)
Policy loans on insurance contracts                                            (2,202)            (82)             80
                                                                           -----------     -----------     -----------
Net cash and cash equivalents provided by investing activities                 22,194          22,863          42,597
                                                                           -----------     -----------     -----------
</TABLE>











See accompanying notes to financial statements.                 (Continued)

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, 2000, 1999 AND 1998
(Continued) (Dollars in thousands)
<TABLE>
<CAPTION>                                                                     2000            1999            1998
                                                                           -----------     -----------     -----------
<S>                                                                        <C>             <C>             <C>
Cash Flows from Financing Activities:
Proceeds from (payments for):
Dividends paid to parent                                                   $  (35,000)     $        -      $        -
Policyholder deposits                                                          77,338          79,889          94,226
Policyholder withdrawals (including transfers to/from separate accounts)     (100,095)       (109,636)       (144,728)
                                                                           -----------     -----------     -----------
       Net cash and cash equivalents used by financing activities             (57,757)        (29,747)        (50,502)
                                                                           -----------     -----------     -----------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                          (14,681)         15,488           8,644

CASH AND CASH EQUIVALENTS:
 Beginning of year                                                             34,195          18,707          10,063
                                                                           -----------     -----------     -----------
 End of year                                                               $   19,514       $  34,195       $  18,707
                                                                           ===========     ===========     ===========
Supplementary Disclosure of Cash Flow Information:
 Cash paid to affiliates for:
   Federal income taxes                                                    $    4,337       $   4,732       $   4,245
   Interest                                                                        91              85             148

</TABLE>






















See accompanying notes to financial statements.

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

NOTES TO FINANCIAL STATEMENTS
(DOLLARS IN THOUSANDS)

 NOTE 1:   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

  Description of Business: ML Life Insurance Company of New York
  (the "Company") is a wholly owned subsidiary of Merrill Lynch
  Insurance Group, Inc. ("MLIG"). The Company is an indirect
  wholly owned subsidiary of Merrill Lynch & Co., Inc. ("Merrill
  Lynch & Co.").

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

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

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

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

  Revenue Recognition: Revenues for variable annuity contracts
  consist of policy charges for mortality and expense risks,
  administration fees, withdrawal charges, and annual contract
  maintenance charges.

  Revenues for variable life insurance contracts consist of
  policy charges for mortality and expense risks, cost of
  insurance fees, withdrawal charges, and amortization of
  deferred sales charges.

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

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

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

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

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

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

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

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

                                 2000          1999          1998
                               ---------     ---------     ---------
   Beginning balance           $ 12,396      $ 12,784      $ 16,550
   Capitalized amounts            1,237         1,336           691
   Interest accrued                 930           959         1,241
   Amortization                  (1,798)       (2,683)       (5,698)
                               ---------     ---------     ---------
   Ending balance              $ 12,765      $ 12,396      $ 12,784
                               =========     =========     =========

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

                  2001        $    745
                  2002        $    691
                  2003        $    675
                  2004        $    715
                  2005        $    756

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

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

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


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

  Interest-sensitive life products        4.00%
  Interest-sensitive deferred annuities   4.00% - 8.07%
  Immediate annuities                     3.00% - 11.00%

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

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

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

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

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

  Accounting Pronouncements: On January 1, 2001, the Company
  adopted the provisions of SFAS No. 133, Accounting for
  Derivative Instruments and Hedging Activities ("SFAS No. 133").
  SFAS No.133 requires the Company to recognize all derivatives
  as either assets or liabilities in the balance sheet and
  measure those instruments at fair value.  The accounting
  treatment for changes in fair value of derivatives is dependent
  upon whether the derivative qualifies for hedge accounting.  As
  defined in SFAS No. 133, the Company does not have any
  derivatives that qualify for hedge accounting and, as such,
  changes in fair value of derivatives will be recorded in
  earnings.  The adoption of SFAS No. 133 will not have a
  material impact on the Company's financial position or results
  of operations.

 NOTE 2:     ESTIMATED FAIR VALUE OF FINANCIAL INSTRUMENTS

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

                                                        2000           1999
  Assets:                                           ------------   ------------
   Fixed maturity securities (1)                    $    140,657   $    160,437
   Equity securities (1)                                  17,695         16,992
   Policy loans on insurance contracts (2)                90,367         88,165
   Cash and cash equivalents (3)                          19,514         34,195
   Separate Accounts assets (4)                        1,035,626      1,086,875
                                                    ------------   ------------
  Total financial instruments                       $  1,303,859   $  1,386,664
                                                    ============   ============

 (1)  For publicly traded securities, the estimated fair value
      is determined using quoted market prices. For securities
      without a readily ascertainable market value, the Company
      utilizes pricing services and broker quotes. Such
      estimated fair values do not necessarily represent the
      values for which these securities could have been sold at
      the dates of the balance sheets. At December 31, 2000 and
      1999, securities without a readily ascertainable market
      value, having an amortized cost of $18,818 and $19,734,
      had an estimated fair value of $18,453 and $18,876,
      respectively.

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

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

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

 NOTE 3:   INVESTMENTS

  The amortized cost and estimated fair value of investments in
  fixed maturity and equity securities as of December 31 were:
<TABLE>
<CAPTION>
                                                                        2000
                                          --------------------------------------------------------------
                                             Cost /           Gross            Gross          Estimated
                                            Amortized       Unrealized       Unrealized         Fair
                                              Cost            Gains            Losses           Value
<S>                                       ------------     ------------     ------------     -----------
  Fixed maturity securities:              <C>              <C>              <C>              <C>
   Corporate debt securities              $   109,101      $       594      $     2,314      $  107,381
   Mortgage-backed securities                   3,904              190               59           4,035
   U.S. government and agencies                27,645              239              263          27,621
   Foreign governments                          1,998                -              378           1,620
                                          ------------     ------------     ------------     -----------
    Total fixed maturity securities       $   142,648      $     1,023      $     3,014      $  140,657
                                          ============     ============     ============     ===========
  Equity securities:
   Non-redeemable preferred stocks        $    18,141      $         -      $       588      $   17,553
   Common stocks                                  172                -               30             142
                                          ------------     ------------     ------------     -----------
      Total equity securities             $    18,313      $         -      $       618      $   17,695
                                          ============     ============     ============     ===========
</TABLE>

<TABLE>
<CAPTION>
                                                                        1999
                                          --------------------------------------------------------------
                                             Cost /          Gross             Gross          Estimated
                                           Amortized       Unrealized        Unrealized         Fair
                                             Cost            Gains             Losses           Value
                                          ------------    -------------     ------------     -----------
<S>                                       <C>             <C>               <C>              <C>
  Fixed maturity securities:
   Corporate debt securities              $   128,239     $        600      $     4,558      $  124,281
   Mortgage-backed securities                   8,488              210               68           8,630
   U.S. government and agencies                27,291              160            1,681          25,770
   Foreign governments                          1,998                -              242           1,756
                                          ------------    -------------     ------------     -----------
    Total fixed maturity securities       $   166,016     $        970      $     6,549      $  160,437
                                          ============    =============     ============     ===========
  Equity securities:
   Non-redeemable preferred stocks        $    19,610     $         25      $     2,788      $   16,847
   Common stocks                                  172                -               27             145
                                          ------------    -------------     ------------     -----------
      Total equity securities             $    19,782     $         25      $     2,815      $   16,992
                                          ============    =============     ============     ===========
</TABLE>

  The amortized cost and estimated fair value of fixed maturity
  securities at December 31, 2000 by contractual maturity were:

                                                                 Estimated
                                              Amortized            Fair
                                                Cost               Value
                                             ------------      ------------
   Fixed maturity securities:
   Due in one year or less                   $    25,012       $    24,768
   Due after one year through five years          68,887            68,242
   Due after five years through ten years         24,066            23,097
   Due after ten years                            20,779            20,515
                                             ------------      ------------
                                                 138,744           136,622
   Mortgage-backed securities                      3,904             4,035
                                             ------------      ------------
     Total fixed maturity securities         $   142,648       $   140,657
                                             ============      ============

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

  The amortized cost and estimated fair value of fixed maturity
  securities at December 31, 2000 by rating agency equivalent were:

                                                                     Estimated
                                                  Amortized            Fair
                                                    Cost               Value
                                                 ----------         ----------
   AAA                                           $  48,121          $  48,141
   AA                                                6,496              6,460
   A                                                48,005             47,338
   BBB                                              35,182             34,300
   Non-investment grade                              4,844              4,418
                                                 ----------         ----------
     Total fixed maturity securities             $ 142,648          $ 140,657
                                                 ==========         ==========

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

                                                  2000         1999
   Assets:                                     ----------    ---------
    Fixed maturity securities                  $ (1,991)     $ (5,579)
    Equity securities                              (618)       (2,790)
    Other assets                                      -           (17)
    Federal income taxes - deferred               1,645         2,977
                                              ----------    ----------
                                                   (964)       (5,409)
                                              ----------    ----------
   Liabilities:
    Policyholders' account balances               2,090           119
                                              ----------    ----------
   Stockholder's equity:
    Accumulated other comprehensive loss       $ (3,054)    $  (5,528)
                                              ==========    ==========

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

                                        2000          1999          1998
                                     ---------     ---------     ---------
  Proceeds                           $  9,320      $ 171,785     $ 102,967
  Gross realized investment gains          43          1,357         2,096
  Gross realized investment losses        141          4,457         4,094


  The company owned investment securities of $1,023 and $989 that
  were deposited with insurance regulatory authorities at
  December 31, 2000 and 1999, respectively.

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

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

                                             2000         1999         1998
                                          ----------   ----------   ----------
  Fixed maturity securities               $  10,643    $  12,921    $  16,244
  Equity securities                           1,429        1,637          695
  Policy loans on insurance contracts         4,441        4,362        4,316
  Cash and cash equivalents                   2,635          932          800
  Other                                           1           29           29
                                          ----------   ----------   ----------
  Gross investment income                    19,149       19,881       22,084
  Less investment expenses                     (462)        (481)        (535)
                                          ----------   ----------   ----------
  Net investment income                   $  18,687    $  19,400    $  21,549
                                          ==========   ==========   ==========



 Net realized investment gains (losses), including changes in
 valuation allowances, for the years ended December 31:

                                             2000         1999         1998
                                          ---------    ----------   ----------
  Fixed maturity securities               $   (115)    $  (1,938)   $  (1,944)
  Equity securities                             17        (1,162)         (54)
                                          ---------    ----------   ----------
  Net realized investment gains (losses)  $    (98)    $  (3,100)   $  (1,998)
                                          =========    ==========   ==========

 NOTE 4:   FEDERAL INCOME TAXES

  The following is a reconciliation of the provision for income
  taxes based on earnings before federal income taxes, computed
  using the Federal statutory tax rate, with the provision for
  income taxes for the years ended December 31:
<TABLE>
<CAPTION>
                                                                2000          1999         1998
                                                              --------      --------     --------
<S>                                                           <C>           <C>          <C>
  Provision for income taxes computed at
   Federal Statutory rate                                     $ 5,243       $ 3,444      $ 2,325
  Decrease in income taxes resulting from:
     Dividend received deduction                                 (155)         (129)        (300)
     Foreign tax credit                                          (254)          (65)        (153)
                                                              --------      --------     --------
       Federal income tax provision                           $ 4,834       $ 3,250      $ 1,872
                                                              ========      ========     ========
</TABLE>

  The Federal statutory rate for each of the three years in the
  period ended December 31, 2000 was 35%.

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

                                                        2000          1999          1998
                                                     ---------     ---------    ----------
   <S>                                                 <C>           <C>          <C>
   Deferred policy acquisition costs                 $    622      $    332     $    (158)
   Policyholders' account balances                      1,006          (793)         (659)
   Investment adjustments                                 351        (1,113)         (629)
   Other                                                    -            19           (19)
                                                    ---------     ---------     ---------
   Deferred Federal income tax provision (benefit)   $  1,979      $ (1,555)     $ (1,465)
                                                    =========     =========     =========
</TABLE>

  Deferred tax assets and liabilities as of December 31 are
  determined as follows:
                                               2000           1999
   Deferred tax assets:                      ---------      ---------
    Policyholders' account balances          $  4,810       $  5,816
    Investment adjustments                      1,387          1,738
    Net unrealized investment loss              1,645          2,977
                                             ---------      ---------
      Total deferred tax assets                 7,842         10,531
                                             ---------      ---------

   Deferred tax liabilities:
    Deferred policy acquisition costs           7,261          6,639
                                             ---------      ---------
      Net deferred tax asset                 $    581       $  3,892
                                             =========      =========

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

 NOTE 5:   REINSURANCE

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

  Indemnity reinsurance agreements do not relieve the Company
  from its obligations to policyholders. Failure of reinsurers to
  honor their obligations could result in losses to the Company.
  The Company regularly evaluates the financial condition of its
  reinsurers so as to minimize its exposure to significant losses
  from reinsurer insolvencies. The Company holds collateral under
  reinsurance agreements in the form of letters of credit, trust
  agreements and funds withheld totaling $103 that can be drawn
  upon for delinquent reinsurance recoverables.

  As of December 31, 2000, the Company had the following life
  insurance in-force:
<TABLE>
<CAPTION>
                                                                                      Percentage
                                         Ceded to        Assumed                      of amount
                            Gross          other        from other         Net        assumed to
                            amount       companies      companies        amount           Net
<S>                       <C>            <C>            <C>            <C>            <C>
Life insurance            ---------      ---------      ---------      ----------     ----------
        in force          $ 940,286      $ 166,354      $ 871,306      $1,645,238            53%
</TABLE>

 NOTE 6:   RELATED PARTY TRANSACTIONS

  The Company and MLIG are parties to a service agreement whereby
  MLIG has agreed to provide certain accounting, data processing,
  legal, actuarial, management, advertising and other services to
  the Company. Expenses incurred by MLIG, in relation to this
  service agreement, are reimbursed by the Company on an
  allocated cost basis. Charges billed to the Company by MLIG
  pursuant to the agreement were $4,556, $4,199 and $4,767 for
  2000, 1999 and 1998 respectively. Charges attributable to this
  agreement are included in insurance expenses and taxes, except
  for investment related expenses, which are included in net
  investment income. The Company is allocated interest expense on
  its accounts payable to MLIG that approximates the daily
  Federal funds rate. Total intercompany interest incurred was
  $69, $54 and $69 for 2000, 1999 and 1998, respectively.
  Intercompany interest is included in net investment income.

  The Company and Merrill Lynch Investment Managers, L.P.
  ("MLIM") are parties to a service agreement whereby MLIM has
  agreed to provide certain invested asset management services to
  the Company. The Company pays a fee to MLIM for these services
  through the MLIG service agreement. Charges attributable to
  this agreement and allocated to the Company by MLIG were $156,
  $149 and $157 for 2000, 1999 and 1998, respectively.

  The Company has a general agency agreement with Merrill Lynch
  Life Agency Inc. ("MLLA") whereby registered representatives of
  MLPF&S, who are the Company's licensed insurance agents,
  solicit applications for contracts to be issued by the Company.
  MLLA is paid commissions for the contracts sold by such agents.
  Commissions paid to MLLA were $2,874, $3,069 and $3,798 for
  2000, 1999 and 1998, respectively. Substantially all of these
  commissions were capitalized as deferred policy acquisitions
  costs and are being amortized in accordance with the policy
  discussed in Note 1.

  In connection with the acquisition of a block of variable life
  insurance business from Monarch Life Insurance Company
  ("Monarch Life"), the Company borrowed funds from Merrill Lynch
  & Co. to partially finance the transaction. As of December 31,
  2000 and 1999, the outstanding loan balance was $203 and $290,
  respectively. Repayments made on this loan during 2000, 1999
  and 1998 were $87, $144 and $722, respectively.  Loan interest
  was calculated at LIBOR plus 150 basis points. Intercompany
  interest paid during 2000, 1999 and 1998 was $22, $31 and $79,
  respectively.

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

 NOTE 7:  STOCKHOLDER'S EQUITY AND STATUTORY REGULATIONS

  During 2000, the Company paid a cash dividend of $35,000.
  Notice of intention to declare a dividend must be filed with
  the New York Superintendent of Insurance who may disallow the
  payment. During 1999 and 1998, no dividend request was filed.

  Statutory capital and surplus at December 31, 2000 and 1999,
  were $33,767 and $61,717, respectively. At December 31, 2000,
  approximately $3,157 of stockholder's equity was available for
  distribution to MLIG.

  Applicable insurance department regulations require that the
  Company report its accounts in accordance with statutory
  accounting practices. Statutory accounting practices differ
  from principles utilized in these financial statements as
  follows: policy acquisition costs are expensed as incurred,
  future policy benefit reserves are established using different
  actuarial assumptions, there is no provision for deferred
  income taxes, and securities are valued on a different basis.
  The Company's statutory net income for 2000, 1999 and 1998 was
  $5,125, $9,030 and $5,405, respectively.

  The National Association of Insurance Commissioners ("NAIC")
  utilizes the Risk Based Capital ("RBC") adequacy monitoring
  system. The RBC calculates the amount of adjusted capital that
  a life insurance company should have based upon that company's
  risk profile. As of December 31, 2000, and 1999, based on the
  RBC formula, the Company's total adjusted capital level was in
  excess of the minimum amount of capital required to avoid
  regulatory action.

  On January 1, 2001, the Company adopted the Codification of
  Statutory Accounting Principles ("Codification"). The purpose
  of Codification is to standardize regulatory accounting and
  reporting for the insurance industry. However, statutory
  accounting principles will continue to be established by
  individual state laws and permitted practices.   The New York
  State Insurance Department has not adopted all principles of
  Codification.  The adoption of Codification is not expected
  to have a material impact on the Company's statutory surplus.

 NOTE 8:   COMMITMENTS AND CONTINGENCIES

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

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

 NOTE 9:  SEGMENT INFORMATION

  In reporting to management, the Company's operating results are
  categorized into two business segments: Life Insurance and
  Annuities.  The Company's Life Insurance segment consists of
  variable life insurance products and interest-sensitive life
  insurance products.  The Company's Annuity segment consists of
  variable annuities and interest-sensitive annuities.

  The Company's organization is structured in accordance with its
  two business segments.  Each segment has its own administrative
  service center that provides product support to the Company and
  customer service support to the Company's contract owners.
  Additionally, the marketing and sales management functions,
  within MLIG, are organized according to these two business
  segments.

  The accounting policies of the business segments are the same
  as those described in the summary of significant accounting
  policies.  All revenue and expense transactions are recorded at
  the product level and accumulated at the business segment level
  for review by management.

  The "Other" category, presented in the following segment
  financial information, represents assets and the earnings on
  those assets that do not support contract owner liabilities.

  The following table summarizes each business segment's
  contribution to the consolidated amounts:
<TABLE>
<CAPTION>

                                                Life
   2000                                       Insurance       Annuities         Other           Total
  ------                                      ----------      ----------      ----------       ---------
  <S>                                         <C>             <C>              <C>           <C>
  Net interest spread (a)                     $   1,184       $   2,462        $  3,131      $    6,777
  Other revenues                                  9,558          10,599             (39)         20,118
                                              ----------      ----------       ---------     -----------
  Net revenues                                   10,742          13,061           3,092          26,895
                                              ----------      ----------       ---------     -----------
  Policy benefits                                 1,727              60               -           1,787
  Reinsurance premium ceded                       2,011               -               -           2,011
  Amortization of deferred policy
     acquisition costs                            1,181           2,788               -           3,969
  Other non-interest expenses                     1,698           2,449               -           4,147
                                              ----------      ----------       ---------     -----------
  Total non-interest expenses                     6,617           5,297               -          11,914
                                              ----------      ----------       ---------     -----------
  Net earnings before Federal income
      Tax provision                               4,125           7,764           3,092          14,981
  Income tax expense                              1,288           2,464           1,082           4,834
                                              ----------      ----------       ---------     -----------
  Net earnings                                $   2,837       $   5,300        $  2,010      $   10,147
                                              ==========      ==========       =========     ===========
  Balance Sheet Information:

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

</TABLE>


<TABLE>
<CAPTION>


                                                Life
   1999                                       Insurance       Annuities         Other           Total
  ------                                      ----------      ----------      ----------      ----------
  <S>                                         <C>             <C>             <C>             <C>
  Net interest spread (a)                     $   1,640       $   3,108        $  2,639        $  7,387
  Other revenues                                  8,453           5,612            (119)         13,946
                                              ----------      ----------      ----------      ----------
  Net revenues                                   10,093           8,720           2,520          21,333
                                              ----------      ----------      ----------      ----------
  Policy benefits                                   618              14               -             632
  Reinsurance premium ceded                       1,822               -               -           1,822
  Amortization of deferred policy
     acquisition costs                            2,100           2,745               -           4,845
  Other non-interest expenses                     1,662           2,533               -           4,195
                                              ----------      ----------      ----------      ----------
  Total non-interest expenses                     6,202           5,292               -          11,494
                                              ----------      ----------      ----------      ----------
  Net earnings before Federal income
      Tax provision                               3,891           3,428           2,520           9,839
  Income tax expense                              1,332           1,036             882           3,250
                                              ----------      ----------      ----------      ----------
  Net earnings                                $   2,559       $   2,392        $  1,638       $   6,589
                                              ==========      ==========      ==========      ==========
  Balance Sheet Information:

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

</TABLE>

















<TABLE>
<CAPTION>





                                                 Life
   1998                                       Insurance       Annuities         Other           Total
  ------                                      -----------     ----------      ----------     -----------
  <S>                                         <C>             <C>             <C>             <C>
  Net interest spread (a)                     $     789       $   3,876       $   3,052       $    7,717
  Other revenues                                  8,472           4,810            (363)          12,919
                                              -----------     ----------      ----------      -----------
  Net revenues                                    9,261           8,686           2,689           20,636
                                              -----------     ----------      ----------      -----------
  Policy benefits                                 1,570              60               -            1,630
  Reinsurance premium ceded                       1,705               -               -            1,705
  Amortization of deferred policy
     acquisition costs                            3,571           2,188               -            5,759
  Other non-interest expenses                     1,973           2,927               -            4,900
                                              -----------     ----------      ----------      -----------
  Total non-interest expenses                     8,819           5,175               -           13,994
                                              -----------     ----------      ----------      -----------
  Net earnings before Federal income
      Tax provision (benefit)                       442           3,511           2,689            6,642
  Income tax expense (benefit)                       (7)            938             941            1,872
                                              -----------     ----------      ----------      -----------
  Net earnings                                $     449       $   2,573       $   1,748       $    4,770
                                              ===========     ==========      ==========      ===========
  Balance Sheet Information:

  Total assets                                $ 484,322       $ 720,478        $ 43,182       $1,247,982
  Deferred policy acquisition costs              15,325          14,417               -           29,742
  Policyholder liabilities and accruals         103,926         168,306               -          272,232
  Other policyholder funds                        1,319             464               -            1,783
</TABLE>

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

  The table below summarizes the Company's net revenues by
  product for 2000, 1999 and 1998:

                                    2000         1999          1998
                                 ----------    ---------     ---------
 Life Insurance
  Variable life                  $  10,393     $  9,656      $  9,045
  Interest-sensitive whole life        349          437           216
                                 ----------    ---------     ---------
     Total Life Insurance           10,742       10,093         9,261
                                 ==========    =========     =========
 Annuities
  Variable annuities                10,221        8,291         6,240
  Interest-sensitive annuities       2,840          429         2,446
                                 ----------    ---------     ---------
     Total Annuities                13,061        8,720         8,686
                                 ----------    ---------     ---------
  Other                              3,092        2,520         2,689
                                 ----------    ---------     ---------
  Total                          $  26,895     $ 21,333      $ 20,636
                                 ==========    =========     =========

* * * * * *



<PAGE>   19


                                   SIGNATURES

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

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

Date: March 29, 2001                       By:       /s/ Matthew J. Rider
                                                    --------------------------
                                                    Matthew J. Rider
                                                    Chief Financial Officer

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


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


/s/ Barry G. Skolnick                        Director, President and                   March 29, 2001
-------------------------                    General Counsel*                          --------------
Barry G. Skolnick


/s/ Matthew J. Rider                         Director, Senior Vice President,          March 29, 2001
-------------------------                    Chief Financial Officer, and              --------------
Matthew J. Rider                             Treasurer


          *
                                             Director, Senior Vice President and       March 29, 2001
-------------------------                    Chief Investment Officer                  --------------
David M. Dunford


          *
                                             Director and Senior Vice President        March 29, 2001
-------------------------                                                              --------------
Gail R. Farkas
</TABLE>


<PAGE>   20
<TABLE>
<S>                                          <C>                                       <C>
          *
                                             Director, Vice President and Senior       March 29, 2001
-------------------------                    Counsel                                   --------------
Michael P. Cogswell


          *
                                             Director                                  March 29, 2001
-------------------------                                                              --------------
Frederick J. C. Butler

          *
                                             Director                                  March 29, 2001
-------------------------                                                              --------------
Richard M. Drew


          *

------------------------                    Director and Vice President                March 29, 2001
Christopher J. Grady                                                                   --------------


          *
                                             Director                                  March 29, 2001
-------------------------                                                              --------------
Robert L. Israeloff


          *
                                             Director                                  March 29, 2001
-------------------------                                                              --------------
Cynthia Kahn Sherman

          *
                                             Director                                  March 29, 2001
-------------------------                                                              --------------
Robert A. King


          *
                                             Director                                  March 29, 2001
-------------------------                                                              --------------
Irving M. Pollack
</TABLE>

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


<PAGE>   21


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

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


<PAGE>   22
                                 EXHIBIT INDEX

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

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

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

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

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

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


                                      E-1

<PAGE>   23

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

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

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

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

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

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

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


                                      E-2
<PAGE>   24

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

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

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

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

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

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

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

                                      E-3
<PAGE>   25

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

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

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

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

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

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



                                      E-4
<PAGE>   26


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

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

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

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

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

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

 24.11                     Power of attorney of Matthew J. Rider             Exhibit 24.11


 24.12                     Power of attorney of Christopher J. Grady         Exhibit 24.12
</TABLE>


                                      E-5