MainStay VP Allocation Portfolios

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1 MainStay VP Allocation Portfolios Message from the President and Annual Report December 31, 2017 MainStay VP Conservative Allocation Portfolio MainStay VP Moderate Allocation Portfolio MainStay VP Moderate Growth Allocation Portfolio MainStay VP Growth Allocation Portfolio Sign up for electronic delivery of your shareholder reports. For full details on electronic delivery, including who can participate and what you can receive via edelivery, please log on to

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3 Message from the President Stocks in general provided solid double-digit total returns during the 12 months ended December 31, The most notable exceptions came in the highly competitive telecommunication services sector and the commodity-dependent energy sector. Although there were wide variations among emerging markets, many benefited from technology-related industries and strengthening local currencies. As a group, emerging-market stocks were the strongest performers in 2017, outpacing developed-market stocks by a substantial margin. According to FTSE-Russell data on U.S. equities, stocks at all capitalization levels provided strong double-digit positive returns, with growth stocks generally outperforming value stocks regardless of company size. These results reflected optimism that the new U.S. administration might increase infrastructure spending and provide business tax incentives and tax cuts for consumers that could stimulate economic growth. While many of the administration s plans are still under consideration, President Trump signed a tax reform bill in December that dramatically lowered corporate tax rates and provided tax relief for many Americans. During the reporting period, the Federal Open Market Committee ( FOMC ) increased the targeted federal funds range three times in March, June and December of These incremental increases raised the federal funds target range to 1.25% to 1.50% by year-end The FOMC also announced plans to trim its balance sheet by reducing the reinvestment of principal payments received in the System Open Market Account. During the reporting period, yields rose for U.S. Treasury securities with maturities of seven years or less and declined for U.S. Treasury securities with longer maturities. Despite shifting yields, all major fixed-income asset classes provided positive total returns during the reporting period, with convertible bonds showing particularly strong performance. During the reporting period, lower-quality bonds generally tended to outperform higher-quality securities and longer-term bonds generally tended to outperform shorter-term instruments. At MainStay, we have always encouraged investors to diversify their investments and maintain a long-term perspective, even when markets are strong. Asset classes that perform well in one environment may perform differently in another, and in today s ever-changing world, wide market swings are not unknown. MainStay VP Portfolios offer a wide array of investment objectives to help shareholders pursue diversification appropriate for their long-range financial goals. At MainStay, we also offer several investment boutiques, allowing shareholders to choose the style or mix of styles best suited to their investment needs. We believe that relatively few individual investors can match the level of professional experience and market insight that our portfolio managers provide. The report that follows provides more detailed information on the specific markets, investment strategies and portfolio decisions that affected your MainStay VP Portfolio(s) during the 12 months ended December 31, We encourage you to read the report carefully and use it to help you evaluate your progress toward your financial goals. Sincerely, Kirk C. Lehneis President The opinions expressed are as of the date of the accompanying report and are subject to change. Past performance is no guarantee of future results. There is no guarantee that any forecasts made will come to pass. This material does not constitute investment advice and is not intended as an endorsement of any specific investment. Not all MainStay VP Portfolios and/or share classes are available under all policies. Not part of the Annual Report

4 Table of Contents Annual Report MainStay VP Conservative Allocation Portfolio 5 MainStay VP Moderate Allocation Portfolio 17 MainStay VP Moderate Growth Allocation Portfolio 29 MainStay VP Growth Allocation Portfolio 41 Notes to Financial Statements 52 Report of Independent Registered Public Accounting Firm 64 Board Consideration and Approval of Management Agreement 65 Other Matters 69 Proxy Voting Policies and Procedures and Proxy Voting Record 69 Shareholder Reports and Quarterly Portfolio Disclosure 69 Board of Trustees and Officers 70 Investors should refer to the Portfolio s Summary Prospectus and/or Prospectus and consider the Portfolio s investment objectives, strategies, risks, charges and expenses carefully before investing. The Summary Prospectus and/or Prospectus contain this and other information about the Portfolio. You may obtain copies of the Portfolio s Summary Prospectus and/or the Prospectus and the Statement of Additional Information free of charge, upon request, by calling toll-free , by writing to New York Life Insurance and Annuity Corporation, 51 Madison Avenue, Room 251, New York, New York or by sending an to MainStayShareholdersServices@nylim.com. These documents are also available at mainstayinvestments.com/vpdocuments. Please read the Summary Prospectus and/or Prospectus carefully before investing. MainStay VP Funds Trust portfolios are separate account options which are purchased through a variable insurance or variable annuity contract.

5 MainStay VP Conservative Allocation Portfolio Investment and Performance Comparison 1 (Unaudited) Performance data quoted represents past performance. Past performance is no guarantee of future results. Because of market volatility and other factors, current performance may be lower or higher than the figures shown. Investment return and principal value will fluctuate, and as a result, when shares are redeemed, they may be worth more or less than their original cost. The performance table and graph do not reflect any deduction of sales charges, mortality and expense charges, contract charges, or administrative charges. Please refer to the Performance Summary appropriate for your policy. For performance information current to the most recent month-end, please call or visit $25,000 20,000 15,000 10,000 5,000 0 $22,603 S&P 500 Index $17,438 MainStay VP Conservative Allocation Portfolio Initial Class $17,293 Conservative Allocation Composite Index $17,001 MainStay VP Conservative Allocation Portfolio Service Class $14,811 Bloomberg Barclays U.S. Aggregate Bond Index $12,119 MSCI EAFE Index 12/31/07 Year-ended 12/31/17 Average Annual Total Returns for the Year-Ended December 31, 2017 Class Inception Date One Year Five Years Ten Years Gross Expense Ratio 2 Initial Class Shares 2/13/ % 6.49% 5.72% 0.93% Service Class Shares 2/13/ Benchmark Performance One Year Five Years Ten Years S&P 500 Index % 15.79% 8.50% MSCI EAFE Index Bloomberg Barclays U.S. Aggregate Bond Index Conservative Allocation Composite Index Morningstar Allocation 30% to 50% Equity Category Average Performance figures reflect certain fee waivers and/or expense limitations, without which total returns may have been different. For information on current fee waivers and/or expense limitations (if any), please refer to the Notes to Financial Statements. 2. The gross expense ratios presented reflect the Portfolio s Total Annual Portfolio Operating Expenses from the most recent Prospectus and may differ from other expense ratios disclosed in this report. 3. The S&P 500 Index is the Portfolio s primary broad-based securities market index for comparison purposes. S&P 500 is a trademark of The McGraw-Hill Companies, Inc. The S&P 500 Index is widely regarded as the standard index for measuring large-cap U.S. stock market performance. Results assume reinvestment of all dividends and capital gains. An investment cannot be made directly in an index. 4. The MSCI EAFE Index is the Portfolio s secondary benchmark. The MSCI EAFE Index consists of international stocks representing the developed world outside of North America. Results assume reinvestment of all dividends and capital gains. An investment cannot be made directly in an index. 5. The Portfolio has selected the Bloomberg Barclays U.S. Aggregate Bond Index as an additional benchmark. The Bloomberg Barclays U.S. Aggregate Bond Index is a broad-based benchmark that measures performance of the investment-grade, U.S. dollar-denominated, fixed-rate taxable bond market, including Treasurys, government-related and corporate securities, mortgage-backed securities (agency fixed-rate and hybrid adjustable-rate mortgage pass-throughs), asset-backed securities and commercial mortgage-backed securities. Results assume reinvestment of all dividends and capital gains. An investment cannot be made directly in an index. 6. The Portfolio has selected the Conservative Allocation Composite Index as an additional benchmark. The Conservative Allocation Composite Index consists of the S&P 500 Index, the MSCI EAFE Index and the Bloomberg Barclays U.S. Aggregate Bond Index weighted 30%, 10% and 60%, respectively. Results assume reinvestment of all dividends and capital gains. An investment cannot be made directly in an index. 7. The Morningstar Allocation 30% to 50% Equity Category Average is representative of funds that seek to provide both income and capital appreciation by investing in multiple asset classes, including stocks, bonds, and cash. These portfolios are dominated by domestic holdings and have equity exposures between 30% and 50%. Results are based on average total returns of similar funds with all dividends and capital gain distributions reinvested. 5

6 Cost in Dollars of a $1,000 Investment in MainStay VP Conservative Allocation Portfolio (Unaudited) The example below is intended to describe the fees and expenses borne by shareholders during the six-month period from July 1, 2017, to December 31, 2017, and the impact of those costs on your investment. Example As a shareholder of the Portfolio you incur two types of costs: (1) transaction costs, including exchange fees and sales charges (loads) on purchases (as applicable), and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Portfolio expenses (as applicable). This example is intended to help you understand your ongoing costs (in dollars) of investing in the Portfolio and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 made at the beginning of the six-month period and held for the entire period from July 1, 2017, to December 31, Shares are only sold in connection with variable life and annuity contracts and the example does not reflect any contract level or transactional fees or expenses. If these costs had been included, your costs would have been higher. This example illustrates your Portfolio s ongoing costs in two ways: Actual Expenses The second and third data columns in the table below provide information about actual account values and actual expenses. You may use the information in these columns, together with the amount you invested, to estimate the expenses that you paid during the six months ended December 31, Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading entitled Expenses Paid During Period to estimate the expenses you paid on your account during this period. Hypothetical Example for Comparison Purposes The fourth and fifth data columns in the table below provide information about hypothetical account values and hypothetical expenses based on the Portfolio s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balances or expenses you paid for the sixmonth period shown. You may use this information to compare the ongoing costs of investing in the Portfolio with the ongoing costs of investing in other mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other mutual funds. Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as exchange fees or sales charges (loads). Therefore, the fourth and fifth data columns of the table are useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher. Share Class Beginning Account Value 7/1/17 Ending Account Value (Based on Actual Returns and Expenses) 12/31/17 Expenses Paid During Period 1 Ending Account Value (Based on Hypothetical 5% Annualized Return and Actual Expenses) 12/31/17 Expenses Paid During Period 1 Net Expense Ratio During Period 2 Initial Class Shares $1, $1, $0.10 $1, $ % Service Class Shares $1, $1, $1.40 $1, $ % 1. Expenses are equal to the Portfolio s annualized expense ratio of each class multiplied by the average account value over the period, divided by 365 and multiplied by 184 (to reflect the six-month period). The table above represents the actual expenses incurred during the six-month period. In addition to the fees andexpenses which the Portfolio bears directly, the Portfolio indirectly bears a pro rata share of the fees and expenses of the Underlying Portfolio/Funds in which it invests. Such indirect expenses are not included in the above-reported expense figures. 2. Expenses are equal to the Portfolio s annualized expense ratio to reflect the six-month period. 6 MainStay VP Conservative Allocation Portfolio

7 Investment Objectives of Underlying Portfolios/Funds as of December 31, 2017 (Unaudited) 30.5% 23.2 Total Return Current Income 22.2 Capital Appreciation 21.2 Growth of Capital 2.9 Short-Term Investment 0.0 Other Assets, Less Liabilities See Portfolio of Investments beginning on page 11 for specific holdings within these categories. Less than one-tenth of a percent. 7

8 Portfolio Management Discussion and Analysis (Unaudited) Answers to the questions reflect the views of portfolio managers Jae S.Yoon, CFA, Jonathan Swaney, Poul Kristensen, CFA, and Amit Soni, CFA, of New York Life Investments, 1 the Portfolio s Manager. How did MainStay VP Conservative Allocation Portfolio perform relative to its benchmarks and peers during the 12 months ended December 31, 2017? For the 12 months ended December 31, 2017, MainStay VP Conservative Allocation Portfolio returned 10.80% for Initial Class shares and 10.52% for Service Class shares. Over the same period, both share classes underperformed the 21.83% return of the S&P 500 Index, 2 which is the Portfolio s primary benchmark, and the 25.03% return of the MSCI EAFE Index, 2 which is a secondary benchmark of the Portfolio. For the 12 months ended December 31, 2017, both share classes outperformed the 3.54% return of the Bloomberg Barclays U.S. Aggregate Bond Index, 2 but underperformed the 10.85% return of the Conservative Allocation Composite Index. 2 These two indices are additional benchmarks of the Portfolio. Over the same period, both share classes outperformed the 9.86% return of the Morningstar Allocation 30% to 50% Equity Category Average. 3 What factors affected the Portfolio s relative performance during the reporting period? The Portfolio is a fund of funds, meaning that it seeks to achieve its investment objective by investing primarily in mutual funds and exchange-traded funds ( ETFs ) managed by New York Life Investments or its affiliates (the Underlying Portfolios/Funds ). The Underlying Portfolios/Funds may invest in various instruments, including fixed-income securities and domestic or international stocks at various capitalization levels. The Portfolio s primary benchmark, the S&P 500 Index, on the other hand, consists entirely of U.S. large-cap stocks. These differences particularly the Portfolio s holdings in Underlying Portfolios/Funds that invest in investment-grade bonds largely accounted for the Portfolio s underperformance of its primary benchmark during the reporting period because investmentgrade bonds in the aggregate tended to underperform U.S. large-cap stocks by a substantial margin during the reporting period. The Conservative Allocation Composite Index reflects a broader mix of asset classes than the S&P 500 Index and offers an alternative yardstick against which to measure the performance of the Portfolio. From an asset allocation perspective, the Portfolio s allocations to emerging-market equities and convertible bonds helped strengthen the Portfolio s performance relative to the Conservative Allocation Composite Index, while the Portfolio s bias toward small-cap stocks detracted from the Portfolio s relative performance. Despite a rise in the price of oil during the reporting period, investments in Underlying Portfolios/Funds that held energy-related assets also weighed on the Portfolio s results. These divergent effects largely canceled each other out, leaving the net contribution from asset class policy very modestly positive. (Contributions take weightings and total returns into account.) Performance of the Underlying Portfolios/Funds relative to their respective benchmarks likewise had a smaller-than-usual net influence on the Portfolio s active returns. Soft performance from Underlying Portfolios/Funds including MainStay VP Absolute Return Multi-Strategy Portfolio and MainStay VP Cushing Renaissance Advantage Portfolio outweighed stronger results from several other Underlying Portfolios/Funds. How did you allocate the Portfolio s assets during the reporting period and why? We considered a variety of information, including the portfoliolevel characteristics of the Underlying Portfolios/Funds, such as capitalization, style biases, sector exposures, credit quality and duration. 4 We also examined the attributes of the holdings of the Underlying Portfolios/Funds, such as valuation metrics, earnings data and technical indicators. Generally speaking, we seek to invest the Portfolio s assets in Underlying Portfolios/Funds that correspond well to our desired asset class exposures and appear to be positioned to benefit from the current economic environment. Our desired asset class exposures include attractively valued market segments that we believe enjoy strong price and earnings momentum. Risk exposure did not stray particularly far from that of the Conservative Allocation Composite Index during the reporting period. While underlying economic fundamentals argued for an aggressive posture, we believed that valuations were a little rich and we worried that profit margins could soon come under pressure from rising labor expenses and higher debt-service costs. For these reasons, equity sensitivity was held close to that of the Conservative Allocation Composite Index for most of the reporting period. There were also some allocation adjustments within asset classes. One of the more prominent changes was a retreat from lower-quality credit instruments. Spreads 5 on these bonds and notes in relation to comparable U.S. Treasury securities were 1. New York Life Investments is a service mark used by New York Life Investment Management Holdings LLC and its subsidiary New York Life Investment Management LLC. 2. See footnote on page 5 for more information on this index. 3. See footnote on page 5 for more information on the Morningstar Allocation 30% to 50% Equity Category Average. 4. Duration is a measure of the price sensitivity of a fixed-income investment to changes in interest rates. Duration is expressed as a number of years and is considered a more accurate sensitivity gauge than average maturity. 5. The terms spread and yield spread may refer to the difference in yield between a security or type of security and comparable U.S. Treasury issues. The terms may also refer to the difference in yield between two specific securities or types of securities at a given time. The term credit spread typically refers to the difference in yield between corporate or municipal bonds (or a specific category of these bonds) and comparable U.S. Treasury issues. 8 MainStay VP Conservative Allocation Portfolio

9 quite tight. Given significant use of leverage by nonfinancial corporations, relaxed underwriting standards and tightening monetary conditions, we believed that risks were somewhat elevated despite low default rates. In our opinion, available levels of incremental yield from speculative-grade debt weren t especially attractive. As a result, we reduced the Portfolio s holdings of high-yield bonds and floating-rate notes. At so late a stage in the economic expansion, we believed that U.S. equities also appeared to be rather expensive. As economic reacceleration broadened around the globe and political instability faded in Europe in the spring of 2017, we began to shift equity exposure out of the United States into international markets. As the year wore on, the Portfolio s preference for non-u.s. stocks increased. Through most of 2017, we maintained a preference for smallcap stocks, believing that they were likely to benefit disproportionately from corporate tax reform, deregulation, trade negotiations and strong domestic consumption. Although that posture was not rewarded in 2017, it remained firmly in place at the end of the reporting period. How did the Portfolio s allocations change over the course of the reporting period? The Portfolio established a number of new positions during the reporting period, the largest of which was in the recently launched MainStay VP Indexed Bond Portfolio, which received assets diverted primarily from MainStay VP Bond Portfolio. The Portfolio also elected to invest in IQ 50 Percent Hedged FTSE Europe ETF on the belief that the valuation discount relative to U.S. equities was excessive. This ETF was just one of the ways that the Portfolio moved assets away from the U.S. market. In May 2017, we added a position in IQ Chaikin U.S. Small Cap ETF alongside the Portfolio s existing position in MainStay VP Epoch U.S. Small Cap Portfolio as we sought to diversify exposure across investment styles. Shortly thereafter, the Portfolio reduced its position in MainStay VP High Yield Corporate Bond Portfolio and initiated a position in IQ S&P High Yield Low Volatility Bond ETF as we sought what we believed to be a less risky way to participate in the speculative-grade bond market. This shift was part of a broader effort to increase quality within the fixed-income portion of the Portfolio. We initiated a position in MainStay VP Cornerstone Growth Portfolio, which the Portfolio had not owned for several years. A new management team assumed responsibility for MainStay VP Cornerstone Growth Portfolio in the summer of 2016, introducing a quantitative discipline with which we were very familiar and altogether comfortable. The investment was funded primarily by reducing the Portfolio s position in MainStay VP Large Cap Growth Fund. The Portfolio materially increased its position in MainStay VP Emerging Markets Equity Portfolio. In our opinion, pricing was favorable across much of the emerging-markets complex and earnings were well-positioned for a global economy that appeared to be gathering traction. For similar reasons, the Portfolio increased its position in MainStay International Opportunities Fund. The Portfolio also increased its position in MainStay VP Convertible Portfolio. We believed that economic conditions were favorable for corporate profit growth and corresponding stock price gains, but investor sentiment remained fragile and prone to being swayed by rapidly changing political developments. Exposure to convertible bonds would allow the Portfolio to participate in the equity rally that we anticipated while providing a measure of protection on the downside should our expectations fail to be met. During the reporting period, the Portfolio reduced its position in MainStay VP Absolute Return Multi-Strategy Portfolio. We had used that Underlying Portfolio/Fund as a shelter against potential volatility in the bond market. With bond yields a bit higher and volatility still muted, we saw less of a need for such a shelter than we had in The Portfolio also reduced positions in MainStay VP High Yield Corporate Bond Portfolio and MainStay VP Floating Rate Portfolio. In our opinion, credit spreads were quite tight and the use of leverage was rather elevated for a later phase of economic expansion. In this environment, we did not view risk as being adequately compensated, so we moved the Portfolio toward higher-quality options. Which Underlying Equity Portfolios/Funds had the highest total returns during the reporting period, and which Underlying Equity Portfolios/Funds had the lowest total returns? Of the Underlying Portfolios/Funds that the Portfolio held for the full reporting period, the highest returns came from MainStay VP Emerging Markets Equity Portfolio and MainStay VP Large Cap Growth Portfolio. The only Portfolio holding that provided a negative return for 2017 was MainStay Cushing MLP Premier Fund. While MainStay VP Cushing Renaissance Portfolio had positive performance, it provided the next-lowest total return. Which Underlying Equity Portfolios/Funds made the strongest positive contributions to the Portfolio s overall performance, and which Underlying Equity Portfolios/ Funds were the greatest detractors? The most significant contributions to the Portfolio s performance came from MainStay VP Emerging Markets Equity Portfolio and MainStay VP Large Cap Growth Portfolio. The only Underlying Portfolio/Fund that provided a negative total return was Main- Stay Cushing MLP Premier Fund. IQ Chaikin U.S. Small Cap ETF, however, had one of the smallest positive contributions to performance. 9

10 What factors and risks affected the Portfolio s Underlying Fixed-Income Portfolio/Fund investments during the reporting period? After several years of steady but modest growth, the U.S. economy appeared to be gathering steam in That, together with evidence that labor markets were quite tight, contributed to the Federal Open Market Committee s decision to raise the federal funds target range three times during the reporting period and to begin reducing the Federal Reserve s balance sheet. The combination of tightening monetary policy and modest inflation expectations led to a material flattening of the yield curve, 6 with short-term rates rising and yields further out the yield curve holding relatively steady or even falling modestly. During the reporting period, which fixed-income market segments were the strongest positive contributors to the Portfolio s performance and which segments were particularly weak? Convertible bonds, whose performance is linked to that of underlying equities, provided the strongest positive contributions during the reporting period. Credit also performed reasonably well, with spreads compressing on strong economic performance and modest default rates. Faring less well were highquality bonds and short-duration securities. Which Underlying Fixed-Income Portfolios/Funds made the strongest positive contributions to the Portfolio s performance, and which Underlying Fixed-Income Portfolios/Funds were the greatest detractors? MainStay VP Bond Portfolio made the strongest positive contribution to the performance of the fixed-income portion of the Portfolio, followed by MainStay VP Floating Rate Portfolio. Several Underlying Portfolios/Funds contributed very little, if anything, to the performance of the fixed-income portion of the Portfolio, including cash, IQ S&P High Yield Low Volatility Bond ETF and MainStay VP PIMCO Real Return Portfolio. 6. The yield curve is a line that plots the yields of various securities of similar quality typically U.S. Treasury issues across a range of maturities. The U.S. Treasury yield curve serves as a benchmark for other debt and is used in economic forecasting. The opinions expressed are those of the portfolio managers as of the date of this report and are subject to change. There is no guarantee that any forecasts will come to pass. This material does not constitute investment advice and is not intended as an endorsement of any specific investment. Not all MainStay VP Portfolios and/or share classes are available under all policies. 10 MainStay VP Conservative Allocation Portfolio

11 Portfolio of Investments December 31, 2017 Affiliated Investment Companies 97.1% Shares Value Equity Funds 47.1% IQ 50 Percent Hedged FTSE Europe ETF (a) 651,672 $ 13,255,008 IQ 50 Percent Hedged FTSE International ETF (a) 1,529,389 33,111,272 IQ Chaikin U.S. Large Cap ETF 1,626 41,122 IQ Chaikin U.S. Small Cap ETF 145,270 4,074,824 IQ Global Resources ETF (b) 235,066 6,717,011 MainStay Cushing MLP Premier Fund Class I 423,385 5,292,310 MainStay Epoch Capital Growth Fund Class I (a) 643,789 8,176,122 MainStay Epoch Global Choice Fund Class I (a) 949,683 20,551,134 MainStay Epoch International Choice Fund Class I 398,994 14,387,721 MainStay Epoch U.S. All Cap Fund Class I 461,469 13,133,406 MainStay Epoch U.S. Equity Yield Fund Class I 198,350 3,248,965 MainStay International Opportunities Fund Class I 1,844,502 17,817,885 MainStay MAP Equity Fund Class I 330,320 13,893,270 MainStay U.S. Equity Opportunities Fund Class I 1,609,335 16,012,886 MainStay VP Absolute Return Multi-Strategy Portfolio Initial Class (a) 5,685,569 50,730,578 MainStay VP Cornerstone Growth Portfolio Initial Class 291,906 9,010,936 MainStay VP Cushing Renaissance Advantage Portfolio Initial Class (a)(b) 1,500,537 15,785,924 MainStay VP Eagle Small Cap Growth Portfolio Initial Class 888,951 12,529,364 MainStay VP Emerging Markets Equity Portfolio Initial Class (a) 4,677,478 47,814,083 MainStay VP Epoch U.S. Equity Yield Portfolio Initial Class 596,648 9,635,387 MainStay VP Epoch U.S. Small Cap Portfolio Initial Class (a) 1,296,120 17,266,711 MainStay VP Large Cap Growth Portfolio Initial Class 605,370 14,478,610 MainStay VP Mid Cap Core Portfolio Initial Class 1,393,019 21,695,766 MainStay VP S&P 500 Index Portfolio Initial Class 256,677 13,352,935 MainStay VP Small Cap Core Portfolio Initial Class (a) 1,148,827 15,113,529 MainStay VP T. Rowe Price Equity Income Portfolio Initial Class 1,272,509 17,938, ,064,759 Fixed Income Funds 50.0% IQ Enhanced Core Plus Bond U.S. ETF (a) 2,057,025 41,037,649 IQ S&P High Yield Low Volatility Bond ETF (a) 443,271 11,148,266 MainStay Short Duration High Yield Fund Class I 1,789,203 17,766,789 Shares Value Fixed Income Funds (continued) MainStay Total Return Bond Fund Class I 204,968 $ 2,178,808 MainStay VP Bond Portfolio Initial Class (a) 7,982, ,189,421 MainStay VP Convertible Portfolio Initial Class (a) 1,180,265 15,682,316 MainStay VP Floating Rate Portfolio Initial Class (a) 5,554,432 50,458,396 MainStay VP High Yield Corporate Bond Portfolio Initial Class 2,291,877 23,024,270 MainStay VP Indexed Bond Portfolio Initial Class (a) 13,377, ,315,762 MainStay VP PIMCO Real Return Portfolio Initial Class (a) 900,369 7,690,369 MainStay VP Unconstrained Bond Portfolio Initial Class (a) 2,353,668 23,666, ,158,742 Total Affiliated Investment Companies (Cost $810,391,881) 856,223,501 Short-Term Investment 2.9% Principal Amount Repurchase Agreement 2.9% Fixed Income Clearing Corp. 0.54%, dated 12/29/17 due 1/2/18 Proceeds at Maturity $25,770,262 (Collateralized by a United States Treasury Inflation Indexed Note with a rate of 0.125% and a maturity date of 4/15/22, with a Principal Amount of $26,150,000 and a Market Value of $26,285,719) $25,768,716 25,768,716 Total Short-Term Investment (Cost $25,768,716) 25,768,716 Total Investments (Cost $836,160,597) 100.0% 881,992,217 Other Assets, Less Liabilities ,954 Net Assets 100.0% $882,354,171 Percentages indicated are based on Portfolio net assets. Less than one-tenth of a percent. (a) (b) The Portfolio s ownership exceeds 5% of the outstanding shares of the Underlying Portfolio s/fund s share class. Non-income producing Underlying Portfolio/Fund. The following abbreviations are used in the preceding pages: ETF Exchange-Traded Fund FTSE Financial Times Stock Exchange The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. 11

12 Portfolio of Investments December 31, 2017 (continued) The following is a summary of the fair valuations according to the inputs used as of December 31, 2017, for valuing the Portfolio s assets. Asset Valuation Inputs Description Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Investments (a) Affiliated Investment Companies Equity Funds $415,064,759 $ $ $415,064,759 Fixed Income Funds 441,158, ,158,742 Short-Term Investment Repurchase Agreement 25,768,716 25,768,716 Total Investments in Securities $856,223,501 $25,768,716 $ $881,992,217 (a) For a complete listing of investments, see the Portfolio of Investments. The Portfolio recognizes transfers between the levels as of the beginning of the period. For the year ended December 31, 2017, the Portfolio did not have any transfers among levels. (See Note 2) As of December 31, 2017, the Portfolio did not hold any investments with significant unobservable inputs (Level 3). (See Note 2) Total 12 MainStay VP Conservative Allocation Portfolio The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

13 Statement of Assets and Liabilities as of December 31, 2017 Assets Investment in affiliated investment companies, at value (identified cost $810,391,881) $856,223,501 Repurchase agreements, at value (identified cost $25,768,716) 25,768,716 Cash 665 Receivables: Dividends and interest 416,086 Fund shares sold 266,773 Investment securities sold 236,231 Initial Class Net assets applicable to outstanding shares $ 16,480,967 Shares of beneficial interest outstanding 1,397,038 Net asset value per share outstanding $ Service Class Net assets applicable to outstanding shares $865,873,204 Shares of beneficial interest outstanding 74,201,069 Net asset value per share outstanding $ Total assets 882,911,972 Liabilities Payables: Fund shares redeemed 306,829 NYLIFE Distributors (See Note 3) 183,448 Shareholder communication 38,595 Professional fees 25,816 Custodian 1,198 Trustees 1,074 Accrued expenses 841 Total liabilities 557,801 Net assets $882,354,171 Composition of Net Assets Shares of beneficial interest outstanding (par value of $.001 per share) unlimited number of shares authorized $ 75,598 Additional paid-in capital 848,238, ,313,967 Undistributed net investment income 17,354,629 Accumulated net realized gain (loss) on investments (29,146,045) Net unrealized appreciation (depreciation) on investments 45,831,620 Net assets $882,354,171 The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. 13

14 Statement of Operations for the year ended December 31, 2017 Investment Income (Loss) Income Dividend distributions from affiliated investment companies $16,785,977 Interest 34,504 Total income 16,820,481 Expenses Distribution/Service Service Class (See Note 3) 2,141,047 Professional fees 73,101 Shareholder communication 53,413 Trustees 21,452 Custodian 10,951 Miscellaneous 26,918 Total expenses 2,326,882 Net investment income (loss) 14,493,599 Realized and Unrealized Gain (Loss) on Investments Net realized gain (loss) on: Affiliated investment company transactions 12,680,083 Realized capital gain distributions from affiliated investment companies 11,920,355 Net realized gain (loss) on investments and investments from affiliated investment companies 24,600,438 Net change in unrealized appreciation (depreciation) on investments in affiliated investment companies 48,311,571 Net realized and unrealized gain (loss) on investments 72,912,009 Net increase (decrease) in net assets resulting from operations $87,405, MainStay VP Conservative Allocation Portfolio The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

15 Statements of Changes in Net Assets for the years ended December 31, 2017 and December 31, 2016 Increase (Decrease) in Net Assets Operations: Net investment income (loss) $ 14,493,599 $ 15,275,186 Net realized gain (loss) on investments and investments from affiliated investment companies 24,600,438 (23,605,961) Net change in unrealized appreciation (depreciation) on investments in affiliated investment companies 48,311,571 59,237,249 Net increase (decrease) in net assets resulting from operations 87,405,608 50,906,474 Dividends and distributions to shareholders: From net investment income: Initial Class (346,180) (414,278) Service Class (15,678,030) (20,172,435) (16,024,210) (20,586,713) From net realized gain on investments: Initial Class (328,587) Service Class (17,843,302) (18,171,889) Total dividends and distributions to shareholders (16,024,210) (38,758,602) Capital share transactions: Net proceeds from sale of shares 77,955, ,922,775 Netassetvalueofsharesissuedto shareholders in reinvestment of dividends and distributions 16,024,210 38,758,602 Cost of shares redeemed (149,729,776) (205,370,550) Increase (decrease) in net assets derived from capital share transactions (55,750,045) (61,689,173) Net increase (decrease) in net assets 15,631,353 (49,541,301) Net Assets Beginning of year 866,722, ,264,119 End of year $ 882,354,171 $ 866,722,818 Undistributed net investment income at end of year $ 17,354,629 $ 16,024,147 The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements. 15

16 Financial Highlights selected per share data and ratios Year ended December 31, Initial Class Net asset value at beginning of year $ $ $ $ $ Net investment income (loss) (a) Net realized and unrealized gain (loss) on investments (0.41) Total from investment operations (0.17) Less dividends and distributions: From net investment income (0.24) (0.29) (0.28) (0.32) (0.31) From net realized gain on investments (0.23) (0.69) (0.83) (0.32) Total dividends and distributions (0.24) (0.52) (0.97) (1.15) (0.63) Net asset value at end of year $ $ $ $ $ Total investment return (b) 10.80% 6.36% (1.41%) 4.29% 13.03% Ratios (to average net assets)/supplemental Data: Net investment income (loss) 1.89% 2.02% 2.01% 1.99% 1.96% Net expenses (c) 0.02% 0.03% 0.03% 0.03% 0.03% Portfolio turnover rate 44% 44% 40% 47% 56% Net assets at end of year (in 000 s) $ 16,481 $ 16,599 $ 16,171 $ 15,669 $ 14,971 (a) Per share data based on average shares outstanding during the year. (b) Total return does not reflect any deduction of sales charges, mortality and expense charges, contract charges or administrative charges. For periods of less than one year, total return is not annualized. (c) In addition to the fees and expenses which the Portfolio bears directly, the Portfolio indirectly bears a pro-rata share of the fees and expenses of the Underlying Portfolios/Funds in which it invests. Such indirect expenses are not included in the above expense ratios. Year ended December 31, Service Class Net asset value at beginning of year $ $ $ $ $ Net investment income (loss) (a) Net realized and unrealized gain (loss) on investments (0.40) Total from investment operations (0.19) Less dividends and distributions: From net investment income (0.21) (0.26) (0.25) (0.29) (0.29) From net realized gain on investments (0.23) (0.69) (0.83) (0.32) Total dividends and distributions (0.21) (0.49) (0.94) (1.12) (0.61) Net asset value at end of year $ $ $ $ $ Total investment return (b) 10.52% 6.10% (1.65%) 4.03% 12.75% Ratios (to average net assets)/supplemental Data: Net investment income (loss) 1.66% 1.74% 1.84% 1.78% 1.73% Net expenses (c) 0.27% 0.28% 0.28% 0.28% 0.28% Portfolio turnover rate 44% 44% 40% 47% 56% Net assets at end of year (in 000 s) $ 865,873 $ 850,124 $ 900,093 $ 896,381 $ 838,989 (a) Per share data based on average shares outstanding during the year. (b) Total return does not reflect any deduction of sales charges, mortality and expense charges, contract charges or administrative charges. For periods of less than one year, total return is not annualized. (c) In addition to the fees and expenses which the Portfolio bears directly, the Portfolio indirectly bears a pro-rata share of the fees and expenses of the Underlying Portfolios/Funds in which it invests. Such indirect expenses are not included in the above expense ratios. 16 MainStay VP Conservative Allocation Portfolio The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial statements.

17 MainStay VP Moderate Allocation Portfolio Investment and Performance Comparison 1 (Unaudited) Performance data quoted represents past performance. Past performance is no guarantee of future results. Because of market volatility and other factors, current performance may be lower or higher than the figures shown. Investment return and principal value will fluctuate, and as a result, when shares are redeemed, they may be worth more or less than their original cost. The performance table and graph do not reflect any deduction of sales charges, mortality and expense charges, contract charges or administrative charges. Please refer to the Performance Summary appropriate for your policy. For performance information current to the most recent month-end, please call or visit $25,000 $22,603 S&P 500 Index 20,000 15,000 10,000 5,000 0 $18,275 Moderate Allocation Composite Index $17,920 MainStay VP Moderate Allocation Portfolio Initial Class $17,486 MainStay VP Moderate Allocation Portfolio Service Class $14,811 Bloomberg Barclays U.S. Aggregate Bond Index $12,119 MSCI EAFE Index 12/31/07 Year-ended 12/31/17 Average Annual Total Returns for the Year-Ended December 31, 2017 Class Inception Date One Year Five Years Ten Years Gross Expense Ratio 2 Initial Class Shares 2/13/ % 8.45% 6.01% 1.02% Service Class Shares 2/13/ Benchmark Performance One Year Five Years Ten Years S&P 500 Index % 15.79% 8.50% MSCI EAFE Index Bloomberg Barclays U.S. Aggregate Bond Index Moderate Allocation Composite Index Morningstar Allocation 50% to 70% Equity Category Average Performance figures reflect certain fee waivers and/or expense limitations, without which total returns may have been different. For information on current fee waivers and/or expense limitations (if any), please refer to the Notes to Financial Statements. 2. The gross expense ratios presented reflect the Portfolio s Total Annual Portfolio Operating Expenses from the most recent Prospectus and may differ from other expense ratios disclosed in this report. 3. The S&P 500 Index is the Portfolio s primary broad-based securities market index for comparison purposes. S&P 500 is a trademark of The McGraw-Hill Companies, Inc. The S&P 500 Index is widely regarded as the standard index for measuring large-cap U.S. stock market performance. Results assume reinvestment of all dividends and capital gains. An investment cannot be made directly in an index. 4. The MSCI EAFE Index is the Portfolio s secondary benchmark. The MSCI EAFE Index consists of international stocks representing the developed world outside of North America. Results assume reinvestment of all dividends and capital gains. An investment cannot be made directly in an index. 5. The Portfolio has selected the Bloomberg Barclays U.S. Aggregate Bond Index as an additional benchmark. The Bloomberg Barclays U.S. Aggregate Bond Index is a broad-based benchmark that measures performance of the investment-grade, U.S. dollar-denominated, fixed-rate taxable bond market, including Treasurys, government-related and corporate securities, mortgage-backed securities (agency fixed-rate and hybrid adjustable-rate mortgage pass-throughs), asset-backed securities and commercial mortgage-backed securities. Results assume reinvestment of all dividends and capital gains. An investment cannot be made directly in an index. 6. The Portfolio has selected the Moderate Allocation Composite Index as an additional benchmark. The Moderate Allocation Composite Index consists of the S&P 500 Index, the MSCI EAFE Index and the Bloomberg Barclays U.S. Aggregate Bond Index weighted 45%, 15% and 40%, respectively. Results assume reinvestment of all dividends and capital gains. An investment cannot be made directly in an index. 7. The Morningstar Allocation 50% to 70% Equity Category Average is representative of funds that seek to provide both income and capital appreciation by investing in multiple asset classes, including stocks, bonds, and cash. These portfolios are dominated by domestic holdings and have equity exposures between 50% and 70%. Results are based on average total returns of similar funds with all dividends and capital gain distributions reinvested. 17

18 Cost in Dollars of a $1,000 Investment in MainStay VP Moderate Allocation Portfolio (Unaudited) The example below is intended to describe the fees and expenses borne by shareholders during the six-month period from July 1, 2017, to December 31, 2017, and the impact of those costs on your investment. Example As a shareholder of the Portfolio you incur two types of costs: (1) transaction costs, including exchange fees and sales charges (loads) on purchases (as applicable), and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Portfolio expenses (as applicable). This example is intended to help you understand your ongoing costs (in dollars) of investing in the Portfolio and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 made at the beginning of the six-month period and held for the entire period from July 1, 2017, to December 31, Shares are only sold in connection with variable life and annuity contracts and the example does not reflect any contract level or transactional fees or expenses. If these costs had been included, your costs would have been higher. This example illustrates your Portfolio s ongoing costs in two ways: Actual Expenses The second and third data columns in the table below provide information about actual account values and actual expenses. You may use the information in these columns, together with the amount you invested, to estimate the expenses that you paid during the six months ended December 31, Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading entitled Expenses Paid During Period to estimate the expenses you paid on your account during this period. Hypothetical Example for Comparison Purposes The fourth and fifth data columns in the table below provide information about hypothetical account values and hypothetical expenses based on the Portfolio s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balances or expenses you paid for the six-month period shown. You may use this information to compare the ongoing costs of investing in the Portfolio with the ongoing costs of investing in other mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other mutual funds. Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as exchange fees or sales charges (loads). Therefore, the fourth and fifth data columns of the table are useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher. Share Class Beginning Account Value 7/1/17 Ending Account Value (Based on Actual Returns and Expenses) 12/31/17 Expenses Paid During Period 1 Ending Account Value (Based on Hypothetical 5% Annualized Return and Actual Expenses) 12/31/17 Expenses Paid During Period 1 Net Expense Ratio During Period 2 Initial Class Shares $1, $1, $0.10 $1, $ % Service Class Shares $1, $1, $1.41 $1, $ % 1. Expenses are equal to the Portfolio s annualized expense ratio of each class multiplied by the average account value over the period, divided by 365 and multiplied by 184 (to reflect the six-month period). The table above represents the actual expenses incurred during the six-month period. In addition to the fees andexpenses which the Portfolio bears directly, the Portfolio indirectly bears a pro rata share of the fees and expenses of the Underlying Portfolio/Funds in which it invests. Such indirect expenses are not included in the above-reported expense figures. 2. Expenses are equal to the Portfolio s annualized expense ratio to reflect the six-month period. 18 MainStay VP Moderate Allocation Portfolio