BLACKROCK INSURED MUNICIPAL 2008 TERM TRUST INC, N-30D, 2000-03-01

BLACKROCK INSURED MUNICIPAL 2008 TERM TRUST INC
N-30D, 2000-03-01

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- --------------------------------------------------------------------------------
THE BLACKROCK INSURED MUNICIPAL 2008 TERM TRUST INC.
ANNUAL REPORT TO SHAREHOLDERS
REPORT OF INVESTMENT ADVISOR
- --------------------------------------------------------------------------------

January 31, 2000

Dear Shareholder:

After easing monetary policy three times during the fourth quarter of
1998, the Federal Reserve reversed its trend by raising the Fed funds target
rate 75 basis points (to 5.50%) over the course of 1999 in response to robust
GDP, low unemployment and rising equity prices. U.S. Treasury yields rose
significantly during the past twelve months, with the yield of the 30-year
Treasury rising above 6.00% for the first time since May 1998.

Despite the rise in Treasury yields, continued strong economic growth may
spur the Federal Reserve to proactively fight perceived inflation through
continued monetary policy tightening in 2000. Until the inflation picture
becomes clearer, we expect interest rates to remain largely range-bound.
Accordingly, we will continue to seek the most attractive relative value
opportunities and utilize our proprietary risk management systems to help the
Trust to achieve its investment objectives.

This report contains a summary of market conditions during the annual
period and a review of portfolio strategy by your Trust's managers in addition
to the Trust's audited financial statements and a detailed portfolio list of the
Trust's holdings. Continued thanks for your confidence in BlackRock. We
appreciate the opportunity to help you achieve your long-term investment goals.

Sincerely,

/s/ Laurence D. Fink /s/ Ralph L. Schlosstein
- -------------------- ------------------------
Laurence D. Fink Ralph L. Schlosstein
Chairman President

1
<PAGE>

January 31, 2000

Dear Shareholder:

We are pleased to present the annual report for The BlackRock Insured
Municipal 2008 Term Trust Inc. (the "Trust") for the year ended December 31,
1999. We would like to take this opportunity to review the Trust's stock price
and net asset value (NAV) performance, summarize developments in the fixed
income markets and discuss recent portfolio management activity.

The Trust is a diversified closed-end bond fund whose shares are traded on
the New York Stock Exchange under the symbol "BRM". The Trust's investment
objective is to manage a portfolio of municipal debt securities that will return
$15 per share (an amount equal to the Trust's initial public offering price) to
investors on or about December 31, 2008, while providing current income exempt
from regular federal income tax. The Trust seeks to achieve this objective by
investing in high credit quality ("AAA" or insured to "AAA") tax-exempt general
obligation and revenue bonds issued by city, county and state municipalities
throughout the United States.

The table below summarizes the changes in the Trust's stock price and NAV
over the past year:

---------------------------------------------------------------------
12/31/99 12/31/98 CHANGE HIGH LOW
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
STOCK PRICE $13.75 $16.125 (14.73)% $16.125 $13.50
- -----------------------------------------------------------------------------------------------------
NET ASSET VALUE (NAV) $16.00 $17.06 (6.21)% $17.27 $15.99
- -----------------------------------------------------------------------------------------------------
</TABLE>

THE FIXED INCOME MARKETS

The U.S. economy sustained its growth during the past twelve months, as
U.S. exports and manufacturing continued to rebound. Additionally, consumer
strength remains an important contributor to economic growth as low unemployment
and rising incomes fuel domestic demand. After lowering interest rates three
times in the second half of 1998, and despite inflation concerns as measured by
CPI and PPI remaining relatively benign, the Federal Reserve (the "Fed") adopted
a tightening bias and raised its target for the Federal funds rate from 4.75% to
5.50% between June and November 1999. In a statement accompanying the latest
tightening on November 16, it was indicated that the Fed believes that growth
"continues in excess of the economy's growth potential"; nevertheless, the Fed
reversed their tightening stance by adopting a neutral bias.

U.S. Treasury yields rose dramatically during 1999, with the yield of the
30-year Treasury increasing by 139 basis points to close the year at 6.48%. Bond
prices, which move inversely to their yields, were punished by the constant
threat of inflation in response to the strong economic data and the market's
uncertainty over the Fed's policy throughout the year. Recently, a weaker
dollar, higher commodity prices and strong gains in the U.S. and European equity
markets have depressed overall demand for fixed income securities.

Municipals underperformed the taxable market during the year, posting a
pre-tax -2.07% total return as measured by the LEHMAN MUNICIPAL BOND INDEX
versus the LEHMAN AGGREGATE'S -0.83%. As interest rates rose to their highest
level in four years during the third quarter of 1999, retail demand for
municipal securities increased dramatically. This rise in municipal interest
rates is directly related to the increase of alternative taxable investment
spreads over Treasuries. Currently

<PAGE>

municipals are substantially cheaper than their long-term average valuations as
compared to Treasuries. Unlike the taxable market, which witnessed a surge of
supply by issuers trying to avoid potential year-end market dislocations due to
Y2K, the volume of new municipal issuance is down significantly from 1998's
pace, creating a positive technical environment. We believe that the current
market environment offers some of the most attractive investment opportunities
in municipals in the last few years.

THE TRUST'S PORTFOLIO AND INVESTMENT STRATEGY

The Trust's portfolio is managed to diversify exposure to various sectors,
issuers, revenue sources and types of bonds. BlackRock's investment strategy
emphasizes a relative value approach, which allows the Trust to capitalize upon
changing market conditions by rotating municipal sectors and coupons.
Additionally, the Trust emphasizes securities whose maturity dates match the
termination date of the Trust.

Over the year, trading activity in the Trust remained relatively low, as
many of the securities in the Trust's portfolio continued to trade at prices
above where they were purchased. As trading activity that results in the Trust
realizing a capital gain could require a taxable distribution, we continue to
believe that waiting to restructure the portfolio in a higher interest rate
environment is the most prudent portfolio management strategy. At present, we
are confident that the Trust is on schedule to achieve its primary investment
objective of returning $15 per share upon termination and will continue to seek
investment opportunities in the municipal market.

Additionally, the Trust employs leverage to enhance its income by
borrowing at short-term municipal rates and investing the proceeds in longer
maturity issues that have higher yields. The degree to which the Trust can
benefit from its use of leverage may affect its ability to pay high monthly
income.

The following chart compares the Trust's current and December 31, 1998
asset composition:

- ------------------------------------------------------------------------------
THE BLACKROCK INSURED MUNICIPAL 2008 TERM TRUST INC.
- ------------------------------------------------------------------------------
SECTOR DECEMBER 31, 1999 DECEMBER 31, 1998
- ------------------------------------------------------------------------------
Utility/Power 22% 22%
- ------------------------------------------------------------------------------
County, City & State 22% 22%
- ------------------------------------------------------------------------------
Hospital 15% 14%
- ------------------------------------------------------------------------------
Education 11% 11%
- ------------------------------------------------------------------------------
Lease Revenue 6% 5%
- ------------------------------------------------------------------------------
Transportation 6% 6%
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Water & Sewer 6% 6%
- ------------------------------------------------------------------------------
Tax Revenue 5% 6%
- ------------------------------------------------------------------------------
Special District 3% 4%
- ------------------------------------------------------------------------------
Housing 3% 3%
- ------------------------------------------------------------------------------
Industrial & Pollution Control 1% 1%
- ------------------------------------------------------------------------------

3
<PAGE>

As a result of an internal reorganization, effective January 1, 2000,
BlackRock Advisors, Inc. has replaced BlackRock Financial Management, Inc., a
wholly-owned subsidiary of BlackRock Advisors, Inc. as the Advisor of the Trust.
The investment management and other personnel responsible for providing services
to the Trust did not change as a result of the reorganization. We look forward
to managing the Trust to benefit from the opportunities available in the fixed
income markets and to meet its investment objectives. We thank you for your
investment in the BlackRock Insured Municipal 2008 Term Trust Inc. Please feel
free to contact our marketing center at (800) 227-7BFM (7236) if you have
specific questions which were not addressed in this report.

Sincerely,

/s/ Robert S. Kapito /s/ Kevin M. Klingert

Robert S. Kapito Kevin M. Klingert
Vice Chairman and Portfolio Manager Managing Director and Portfolio Manager
BlackRock Advisors, Inc. BlackRock Advisors, Inc.

- --------------------------------------------------------------------------------
THE BLACKROCK INSURED MUNICIPAL 2008 TERM TRUST INC.
- --------------------------------------------------------------------------------
Symbol on New York Stock Exchange: BRM
- --------------------------------------------------------------------------------
Initial Offering Date: September 18, 1992
- --------------------------------------------------------------------------------
Closing Stock Price as of 12/31/99: $13.75
- --------------------------------------------------------------------------------
Net Asset Value as of 12/31/99: $16.00
- --------------------------------------------------------------------------------
Yield on Closing Stock Price as of 12/31/99 ($13.75)(1): 5.78%
- --------------------------------------------------------------------------------
Current Monthly Distribution per Common Share(2): $0.06625
- --------------------------------------------------------------------------------
Current Annualized Distribution per Common Share(2): $0.795
- --------------------------------------------------------------------------------

- ----------
(1) Yield on Closing Stock Price is calculated by dividing the current
annualized distribution per share by the closing stock price per share.
(2) Distribution is not constant and is subject to change.

4
<PAGE>

- --------------------------------------------------------------------------------
THE BLACKROCK INSURED MUNICIPAL 2008 TERM TRUST INC.
PORTFOLIO OF INVESTMENTS DECEMBER 31, 1999
- --------------------------------------------------------------------------------

LONG-TERM INVESTMENTS--145.2%
ALABAMA--0.3%
AAA $ 1,905 Mobile Impvt. Wt., Zero Coupon, 8/15/08, MBIA ............................ 8/02 @ 71.587 $ 1,185,405
-------------
ARIZONA--0.6%
AAA 4,000 Chandler, G.O., Zero Coupon, 7/01/08, FGIC ............................... No Opt. Call 2,560,720
-------------
CALIFORNIA--0.4%
AAA 1,890 California Hlth. Fac. Fin. Auth. Rev., Marin Gen. Hosp.,
Ser. A, 5.75%, ......................................................... 8/01/8/03 @ 102 1,944,640
-------------
COLORADO--10.8%
AAA 2,000 E-470 Pub. Hwy. Auth. Co. Rev., Ser. B, Zero Coupon, 9/01/11, MBIA ....... No Opt. Call 1,049,340
AAA 30,205++ Jefferson Cnty. Sch. Dist. No. R-001, G.O., 6.25%, 12/15/02, AMBAC ....... N/A 31,808,885
AAA 13,285++ Univ. of Colorado, Hosp. Auth. Rev., Ser. A, 6.25%, 11/15/02, AMBAC ...... N/A 14,091,400
------------
46,949,625
------------
DISTRICT OF COLUMBIA--5.6%
Dist. of Columbia, G.O., MBIA,
AAA 17,950++ Ser. B, 6.30%, 6/01/02 ................................................. N/A 18,928,813
AAA 115++ Ser. E, 5.875%, 6/01/03 ................................................ N/A 120,904
AAA 2,955 Ser. E, 5.875%, 6/01/08 ................................................ 6/03 @ 102 3,039,868
AAA 2,000 Dist. of Columbia, Hosp. Rev., Children's Hosp.,
Ser. A, 6.25%, 7/15/08, FGIC ........................................... 7/02 @ 102 2,069,800
------------
24,159,385
------------
GEORGIA--1.7%
AAA 7,000++ Atlanta, C.O.P., Pretrial Det. Ctr., 6.25%, 12/01/02, MBIA ............... N/A 7,429,170
------------
HAWAII--1.9%
AAA 7,760 Honolulu Cnty., G.O., Ser. A, 5.80%, 1/01/07, FGIC ....................... No Opt. Call 8,066,210
------------
ILLINOIS--13.5%
AAA 14,205 Chicago O' Hare Intl. Arprt. Rev., Ser. A, 6.25%, 1/01/08, MBIA .......... 1/05 @ 102 15,026,191
Chicago Sch. Fin. Auth., G.O., Ser. A, FGIC,
AAA 13,000 6.25%, 6/01/07 ........................................................... 6/02 @ 102 13,591,110
AAA 9,150 6.25%, 6/01/09 ........................................................... 6/02 @ 102 9,544,823
Illinois Hlth. Fac. Auth. Rev., Ser. A,
AAA 11,000++ Alexian Med. Ctr. Proj., 6.35%, 1/01/02, MBIA ............................ N/A 11,552,090
AAA 2,500++ Carle Foundation, 6.75%, 1/01/00, FGIC ................................... N/A 2,550,000
Met. Pier & Expo. Auth. Ded. St. Tax Rev. Auth., FGIC,
AAA 1,570 Ser. A, Zero Coupon, 6/15/08 ............................................. ETM 998,661
AAA 8,600 Ser. A, Zero Coupon, 6/15/08 ............................................. No Opt. Call 5,450,594
------------
58,713,469
------------
INDIANA--2.4%
Indiana Hlth. Fac. Fin. Auth. Hosp. Rev. & Impvt., Ancilla Sys. Inc., MBIA,
AAA 5,665 Ser. A, 6.25%, 7/01/08 ................................................... 7/02 @ 102 5,852,115
AAA 4,350 Ser. B, 6.25%, 7/01/08 ................................................... 7/02 @ 102 4,519,998
------------
10,372,113
------------
IOWA--1.1%
AAA 500 Iowa Fin. Auth., Sngl. Fam. Mtge. Rev., Ser. F, 6.35%, 7/01/09, AMBAC .... 1/03 @ 102 510,080
AAA 4,195 Muscatine, Elec. Rev., 5.00%, 1/01/08, FSA ............................... 1/00 @ 100 4,148,939
------------
4,659,019
------------
KENTUCKY--0.6%
AAA 3,890 Owensboro, Elec. Lt. & Pwr. Rev., Ser. B, Zero Coupon, 1/01/09, AMBAC .... No Opt. Call 2,400,480
------------
</TABLE>

See Notes to Financial Statements.

5
<PAGE>

<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
OPTION
PRINCIPAL CALL
RATING* AMOUNT PROVISIONS VALUE
(UNAUDITED) (000) DESCRIPTION (UNAUDITED) (NOTE 1)
===================================================================================================================================
<S> <C> <C> <C> <C>
LOUISIANA--1.2%
AAA $ 5,000++ Lousiana Pub. Fac. Auth. Hosp. Rev.,
Lafayette Gen. Med. Ctr. Proj.,
6.30%, 10/01/02, FSA ................................................... N/A $ 5,288,300
------------
MASSACHUSETTS--4.9%
AAA 4,465++ Chelsea, Sch. Proj. Loan, 6.00%, 6/15/04, AMBAC .......................... N/A 4,760,449
Massachusetts Bay Trans. Auth. Rev., Ser. B, MBIA,
AAA 200++ 6.00%, 3/01/03 ......................................................... N/A 211,164
AAA 5,800 6.00%, 3/01/10 ......................................................... 3/03 @ 102 6,002,420
AAA 10,000 Massachusetts St. Hsg. Fin. Agcy. Hsg. Proj.,
Ser. A, 5.95%, 10/01/08, AMBAC ......................................... 4/03 @ 102 10,309,500
------------
21,283,533
------------
MICHIGAN--4.6%
Lake Orion, Cmnty. Sch. Dist., AMBAC,
AAA 3,290++ 6.60%, 5/01/05 ......................................................... N/A 3,576,000
AAA 3,285++ 6.70%, 5/01/05 ......................................................... N/A 3,585,774
AAA 8,920++ Michigan St. Bldg. Auth. Rev., Fac. Proj., N/A9,446,726
Ser. IIA, 6.25%, 10/01/02, AMBAC ....................................... N/A 9,446,726
AAA 3,400 Wyandotte, Elec. Rev., 6.25%, 10/01/08, MBIA ............................. No Opt. Call 3,613,316
------------
20,221,816
------------
MISSOURI--1.7%
AAA 7,350 Kansas City, Sch. Dist. Bldg. Corp. Leasehold Rev.,
Cap. Impvts. Proj., Ser. A, 6.50%, 2/01/08, FGIC ....................... 2/01 @ 102 7,610,631
----------
NEVADA--3.9%
AAA 6,490++ Clark Cnty. Fld Ctrl., 6.30%, 11/01/01, AMBAC ............................ N/A 6,754,987
Washoe Cnty. Arpt. Auth. Rev., Ser. B, MBIA,
AAA 3,135 5.70%, 7/01/07 ......................................................... 7/03 @ 102 3,220,115
AAA 2,645 5.75%, 7/01/08 ......................................................... 7/03 @ 102 2,716,733
AAA 4,135++ Washoe Cnty. Sch. Dist., G.O., Ser. A, 6.20%, 10/01/02, AMBAC ............ N/A 4,337,408
------------
17,029,243
------------
NEW JERSEY--13.1%
AAA 30,275 New Jersey Econ. Dev. Auth., Mkt. Trans. Fac. Rev., 8
Ser. A, 5.80%, 7/01/08, MBIA ........................................... 7/04 @ 102 31,565,018
New Jersey St. G.O., Ser. D, MBIA,
AAA 8,370++ 6.00%, 2/15/03 ......................................................... N/A 8,820,892
AAA 16,125 6.00%, 2/15/09 ......................................................... 2/03 @ 102 16,779,030
------------
57,164,940
------------
NEW YORK--8.3%
New York City G.O., MBIA,
AAA 5,000 Ser. E, 6.125%, 8/01/06 ................................................ No Opt. Call 5,296,700
AAA 15,500 Ser. E, 6.20%, 8/01/07 ................................................. No Opt. Call 16,539,895
AAA 5,000 Ser. G, 5.75%, 2/01/08 ................................................. 2/06 @ 101.5 5,179,600
New York St. Environ. Fac. Corp., P.C.R., Ser. D,
AAA 5,945 6.50%, 5/15/07 ......................................................... 11/04 @ 102 6,465,128
AAA 2,245 6.50%, 11/15/07 ........................................................ 11/04 @ 102 2,441,415
------------
35,922,738
------------
NORTH CAROLINA--8.6%
AAA 1,000++ Cumberland Cnty. C.O.P., Civic Ctr. Proj.,
Ser. A, 6.375%, 12/01/04, AMBAC ........................................ N/A 1,084,370
North Carolina Eastn. Mun. Pwr. Agcy. Sys. Rev., Ser. B,
AAA 13,500 6.125%, 1/01/09, FGIC .................................................. No Opt. Call 14,301,090
AAA 5,000 7.00%, 1/01/08, CAPMAC ................................................. No Opt. Call 5,541,500
AAA 14,675 7.25%, 1/01/07, CAPMAC ................................................. No Opt. Call 16,391,535
------------
37,318,495
------------
</TABLE>

See Notes to Financial Statements.

6
<PAGE>

<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
OPTION
PRINCIPAL CALL
RATING* AMOUNT PROVISIONS VALUE
(UNAUDITED) (000) DESCRIPTION (UNAUDITED) (NOTE 1)
===================================================================================================================================
<S> <C> <C> <C> <C>
NORTH DAKOTA--1.1%
AAA $ 4,450++ Bismark Hosp. Rev., St. Alexius Med. Ctr., 6.90%, 5/01/01, AMBAC ......... N/A $ 4,673,835
------------
OHIO--2.3%
AAA 2,410++ Cleveland, G.O., 6.40%, 11/15/04, MBIA ................................... N/A 2,614,609
AAA 6,095 Hamilton City, Elec. Sys. Rev., Ser. A, 6.125%, 10/15/08, FGIC ........... 10/02 @ 102 6,404,138
AAA 1,000++ Ohio St. Bldg. Auth. Fac. Rev., Juvenile Correctional Proj.,
6.50%, 10/01/04, AMBAC ................................................. N/A 1,087,620
------------
10,106,367
------------
PENNSYLVANIA--13.9%
AAA 4,000 Allegheny Cnty. Hosp. Dev. Auth. Rev., Magee Women's Hosp.,
6.25%, 10/01/08, FGIC .................................................. 10/02 @ 102 4,188,640
Dauphin Cnty. Gen. Auth. Hosp. Rev.,
HAPSCO-Western Pennsylvania Hosp. Proj., MBIA,
AAA 5,000 6.25%, 7/01/08 ......................................................... 7/02 @ 102 5,224,600
AAA 10,000 Ser. A, 6.25%, 7/01/08 ................................................. 7/02 @ 102 10,449,200
AAA 6,600 ERIE CNTY. HOSP. AUTH. REV., ST. VINCENT HLTH. CTR. PROJ., SER. A,
6.25%, 7/01/08, MBIA ................................................... 7/02 @ 102 6,896,472
AAA 3,500 Indiana Cnty. Indl. Dev. Auth. P.C.R., New York St. Elec. & Gas Corp.,
Ser. A, 6.00%, 6/01/06, MBIA ........................................... No Opt. Call 3,685,255
AAA 6,500 Pennsylvania Hsg. Fin. Agcy. Rev., Rental Hsg.,
Ser. C, 6.25%, 7/01/07, FNMA 7/02 @ 102 6,707,610
AAA 7,450++ Pennsylvania St., G.O., Ser. A, 6.50%, 11/01/01, FGIC .................... N/A 7,814,380
AAA 2,500 Philadelphia, Gas Wks. Rev., 5.25%, 7/01/08, FSA ......................... No Opt. Call 2,505,350
AAA 10,930++ Pittsburgh, G.O., Ser. D, 6.00%, 9/01/02, AMBAC .......................... N/A 11,481,746
AAA 1,665++ Scranton-Lackawanna Hlth. & Welfare Auth. Rev., 6.90%, 1/01/00, MBIA ..... N/A 1,698,300
------------
60,651,553
------------
TEXAS--25.0%
AAA 13,000++ Austin Pub. Impvt., G.O., 6.10%, 9/01/02, AMBAC .......................... N/A 13,474,760
Austin Util. Sys. Rev.,
AAA 11,515 Ser. A, Zero Coupon, 11/15/08, MBIA .................................... No Opt. Call 7,198,026
AAA 5,000 Ser. A, Zero Coupon, 11/15/09, AMBAC ................................... No Opt. Call 2,930,450
AAA 5,000 Ser. A, Zero Coupon, 11/15/09, MBIA .................................... No Opt. Call 2,930,450
AAA 7,000 6.25%, 11/15/08, AMBAC ................................................. 11/02 @ 102 7,355,460
AAA 5,000 6.625%, 11/15/08, AMBAC ................................................ No Opt. Call 5,501,550
Baytown, G.O., AMBAC,
AAA 2,385++ 6.40%, 2/01/02 ......................................................... N/A 2,467,879
AAA 2,840 6.40%, 2/01/08 ......................................................... 2/02 @ 100 2,930,738
AAA 9,930 Circle C Mun. Util. Dist. No. 3 Rev., 6.50%, 11/15/09, FGIC ............ 11/01 @ 100 10,197,911
Coppell Indpt. Sch. Dist., MBIA,
AAA 1,430 6.10%, 8/15/09 ......................................................... ETM 1,507,892
AAA 2,495 6.10%, 8/15/09 ......................................................... 8/02 @ 100 2,565,559
AAA 4,390 Houston Indpt. Sch. Dist., Zero Coupon, 8/15/09, AMBAC ................... No Opt. Call 2,607,923
AAA 16,135 Houston Wtr. & Swr. Sys. Rev., Jr. Lien, Ser. C, 6.25%, 12/01/09, MBIA ... 12/02 @ 102 16,948,365
AAA 6,000 San Antonio Elec. & Gas Rev., Ser. B, Zero Coupon, 2/01/10, FGIC ......... No Opt. Call 3,432,480
Texas Mun. Pwr. Agcy. Rev., AMBAC,
AAA 15,000 Zero Coupon, 9/01/08 ................................................... No Opt. Call 9,479,100
AAA 16,175 Zero Coupon, 9/01/09 ................................................... No Opt. Call 9,585,952
AAA 5,900 Texas St. Pub. Fin. Auth. Bldg. Rev., Ser. B, 6.25%, 2/01/09, AMBAC ...... No Opt. Call 6,309,460
AAA 2,275 Ysleta Indpt. Sch. Dist. Rev., Zero Coupon, 8/15/08, PSFG ................ No Opt. Call 1,435,002
------------
108,858,957
------------
</TABLE>

See Notes to Financial Statements.

7
<PAGE>

A-1+ 1,100 Harris Cnty. Texas Hlth. Fac. Dev. Corp. Rev., St. Lukes Episcopal Hosp.,
Ser. A, 4.25%, 1/03/00 FRDD (cost $1,100,000) .......................... N/A 1,100,000
------------
TOTAL INVESTMENTS--145.4% (COST $598,722,844) 633,051,202
Other assets in excess of liabilities--1.9% .............................. 8,263,210
Liquidation value of preferred stock--(47.3%) ............................ (206,000,000)
------------
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS--100% ....................... $435,314,412
============

</TABLE>

- ----------------
* Using the higher of Standard & Poor's or Moody's rating.
** For purposes of amortized cost valuation, the maturity date of this
instrument is considered to be the earlier of the next date on which the
security can be redeemed at par, or the next date on which the rate of
interest is adjusted.
+ Option call provisions: date (month/year) and price of the earliest
optional call or redemption. There may be other call provisions at varying
prices at later dates.
++ This bond is prerefunded. See glossary for definition.

<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------
THE FOLLOWING ABBREVIATIONS ARE USED IN PORTFOLIO DESCRIPTIONS:

<S> <C> <C> <C>
AMBAC -- American Municipal Bond Assurance Corporation FRDD -- Floating Rate Daily Demand**
BIGI -- Bond Investors Guaranty Insurance Company FSA -- Financial Security Assurance
CAPMAC -- Capital Markets Assurance Company G.O. -- General Obligation
C.O.P. -- Certificate of Participation MBIA -- Municipal Bond Insurance Association
ETM -- Escrowed to Maturity P.C.R. -- Pollution Control Revenue
FGIC -- Financial Guaranty Insurance Company PSFG -- Permanent School Fund Guaranty
FNMA -- Federal National Mortgage Association
- -------------------------------------------------------------------------------------------------------------------
</TABLE>

8
<PAGE>

- --------------------------------------------------------------------------------
THE BLACKROCK INSURED
MUNICIPAL 2008 TERM TRUST INC.
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1999
- --------------------------------------------------------------------------------

ASSETS
Investments, at value (cost $598,722,844)
(Note 1) .............................................. $ 633,051,202
Cash ..................................................... 85,109
Interest receivable ...................................... 10,306,623
Receivable for investments sold .......................... 365,000
Other assets ............................................. 6,780
-------------
643,814,714
-------------
LIABILITIES

Dividends payable-common stock ........................... 1,802,470
Dividends payable-preferred stock ........................ 227,155
Investment advisory fee payable (Note 2) ................. 164,600
Administration fee payable (Note 2) ...................... 47,029
Other accrued expenses ................................... 259,048
-------------
2,500,302
-------------
NET INVESTMENT ASSETS .................................... $ 641,314,412
=============
Net investment assets were comprised of:
Common stock:
Par value (Note 4) ................................... $ 272,071
Paid-in capital in excess of par ..................... 378,448,780
Preferred stock (Note 4) ............................... 206,000,000
-------------
584,720,851

Undistributed net investment income .................... 22,604,981
Accumulated net realized loss .......................... (339,778)
Net unrealized appreciation ............................ 34,328,358
-------------
Net investment assets, December 31, 1999 ............... $ 641,314,412
=============
Net assets applicable to common
shareholders ......................................... $ 435,314,412
=============
Net asset value per common share:
($435,314,412 O 27,207,093 shares of
common stock issued and outstanding) ................... $16.00
=======
- --------------------------------------------------------------------------------
THE BLACKROCK INSURED
MUNICIPAL 2008 TERM TRUST INC.
STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 1999
- --------------------------------------------------------------------------------

NET INVESTMENT INCOME

Income

Interest and discount earned ........................... $ 37,228,946
-------------

Operating expenses

Investment advisory .................................... 2,304,109
Administration ......................................... 658,317
Auction agent .......................................... 555,000
Custodian .............................................. 149,500
Reports to shareholders ................................ 99,500
Directors .............................................. 82,500
Independent accountants ................................ 51,000
Legal .................................................. 45,500
Registration ........................................... 32,500
Transfer agent ......................................... 25,500
Miscellaneous .......................................... 185,723
-------------
Total expenses ....................................... 4,189,149
-------------
Net investment income .................................... 33,039,797
-------------

REALIZED AND UNREALIZED LOSS ON
INVESTMENTS

Net realized loss on investments ......................... (33,995)
Net change in unrealized appreciation
on investments ...................................... (33,645,451)
-------------
Net loss on investments .................................. (33,679,446)
-------------

NET DECREASE IN NET INVESTMENT

ASSETS RESULTING FROM OPERATIONS ......................... $ (639,649)
=============

See Notes to Financial Statements.

9
<PAGE>

- --------------------------------------------------------------------------------
THE BLACKROCK INSURED MUNICIPAL 2008 TERM TRUST INC.
STATEMENTS OF CHANGES IN NET INVESTMENT ASSETS
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
1999 1998
------------- -------------
<S> <C> <C>
INCREASE (DECREASE) IN NET INVESTMENT ASSETS
OPERATIONS:
Net investment income .................................................................... $ 33,039,797 $ 32,566,277
Net realized gain (loss) on investments .................................................. (33,995) 188,548
Net change in unrealized appreciation on investments ..................................... (33,645,451) 2,943,199
------------- -------------
Net increase (decrease) in net investment assets resulting from operations ........ (639,649) 35,698,024
------------- -------------
DIVIDENDS AND DISTRIBUTIONS:
To common shareholders from net investment income ........................................ (21,629,233) (21,629,248)
To common shareholders from net realized gain on investments ............................. -- (142,426)
To preferred shareholders from net investment income ..................................... (6,652,978) (6,836,065)
To preferred shareholders from net realized gain on investments .......................... -- (46,134)
------------- -------------
Total dividends and distributions ........................................................ (28,282,211) (28,653,873)
------------- -------------
Total increase (decrease) ..................................................... (28,921,860) 7,044,151
------------- -------------
NET INVESTMENT ASSETS
Beginning of year .......................................................................... 670,236,272 663,192,121
------------- -------------
End of year (including undistributed net investment income of
$22,604,981 and $17,847,395, respectively) ............................................... $ 641,314,412 $ 670,236,272
============= =============
</TABLE>

See Notes to Financial Statements.

10
<PAGE>

- --------------------------------------------------------------------------------
THE BLACKROCK INSURED MUNICIPAL 2008 TERM TRUST INC.
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
------------------------------------------------------------
PER COMMON SHARE OPERATING PERFORMANCE: 1999 1998 1997 1996 1995
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of the year ............................ $ 17.06 $ 16.80 $ 15.90 $ 16.08 $ 13.88
-------- -------- -------- -------- --------
Net investment income ............................................. 1.21 1.20 1.18 1.17 1.19
Net realized and unrealized gain (loss) on investments ............ (1.23) .11 .78 (.27) 2.21
-------- -------- -------- -------- --------
Net increase (decrease) from investment operations ................ (.02) 1.31 1.96 .90 3.40
-------- -------- -------- -------- --------
Dividends and distributions:
Dividends from net investment income to:
Common shareholders ........................................... (.80) (.80) (.79) (.79) (.83)
Preferred shareholders ........................................ (.24) (.25) (.27) (.25) (.28)
Distributions from net realized gain on investments to:
Common shareholders ........................................... -- -- -- (.03) (.06)
Preferred shareholders ........................................ -- -- -- (.01) (.02)
Distributions in excess of net realized gain on investments to:
Common shareholders ........................................... -- ** ** ** (.01)
Preferred shareholders ........................................ -- ** ** ** **
-------- -------- -------- -------- --------
Total dividends and distributions ................................. (1.04) (1.05) (1.06) (1.08) (1.20)
-------- -------- -------- -------- --------
Net asset value, end of year* ..................................... $ 16.00 $ 17.06 $ 16.80 $ 15.90 $ 16.08
======== ======== ======== ======== ========
Market value, end of year* ........................................ $ 13.75 $ 16.13 $ 15.25 $ 14.50 $ 13.50
======== ======== ======== ======== ========
TOTAL INVESTMENT RETURN+ ......................................... (10.14)% 11.21% 10.97% 13.56% 17.64%
======== ======== ======== ======== ========
RATIOS TO AVERAGE NET ASSETS OF COMMON
SHAREHOLDERS:
Expenses++ ........................................................ .93% .88% .92% .95% .95%
Net investment income before preferred stock dividends++ .......... 7.30 %7.10 %7.19 %7.32 %7.74%
Preferred stock dividends ......................................... 1.47% 1.49% 1.03% 1.64% 1.97%
Net investment income available to common shareholders ............ 5.83% 5.61% 5.56% 5.68% 5.77%

SUPPLEMENTAL DATA:
Average net assets of common shareholders (in thousands) .......... $452,317 $458,993 $444,895 $434,692 $417,017
Portfolio turnover ................................................ 1% 0% 11% 8% 27%
Net assets of common shareholders, end of year (in thousands) ..... $435,314 $464,236 $457,192 $432,609 $437,470
Preferred stock outstanding (in thousands) ........................ $206,000 $206,000 $206,000 $206,000 $206,000
Asset coverage per share of preferred stock, end of year .......... $ 77,857 $ 81,361 $ 80,508 $ 77,525 $ 78,112
</TABLE>

- ----------
* Net asset value and market value are published in BARRON'S on Saturday and
THE WALL STREET JOURNAL on Monday.
** Actual amount paid to common shareholders was $0.005235 , $0.004814, and
$0.00271 for the years ended December 31, 1998, 1997, and 1996,
respectively. Actual amount paid to preferred shareholders was $0.001696,
$0.00154, $0.00084 and $0.002929 per common share for the years ended
December 31, 1998, 1997, 1996 and 1995, respectively.
+ Total investment return is calculated assuming a purchase of common stock
at the current market price on the first day and a sale at the current
market price on the last day of the year reported. Dividends and
distributions are assumed for purposes of this calculation to be reinvested
at prices obtained under the Trust's dividend reinvestment plan. Total
investment return does not reflect brokerage commissions.
++ Ratios are calculated on the basis of income and expenses applicable to
both the common and preferred stock, relative to the average net assets of
common stockholders.

The information above represents the audited operating performance data for a
share of common stock outstanding, total investment return, ratios to average
net assets and other supplemental data for the years indicated. This information
has been determined based upon financial information provided in the financial
statements and market value data for Trust's shares.

See Notes to Financial Statements.

11
<PAGE>

- --------------------------------------------------------------------------------
THE BLACKROCK INSURED
MUNICIPAL 2008 TERM TRUST INC.
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------

NOTE 1. ORGANIZATION &
ACCOUNTING
POLICIES

The BlackRock Insured Municipal 2008 Term Trust Inc. (the "Trust"), was orga-
nized in Maryland on August 7, 1992 as a diversified, closed-end management
investment company. The Trust's investment objective is to manage a diversified
portfolio of high quality securities that will return $15 per share to investors
on or about December 31, 2008 while providing current income exempt from regular
federal income tax. The ability of issuers of debt securities held by the Trust
to meet their obligations may be affected by economic developments in the
specific industry or region. No assurance can be given that the Trust's
investment objective will be achieved.

The following is a summary of significant accounting policies followed by the
Trust:

SECURITIES VALUATION: Municipal securities (including commitments to purchase
such securities on a "when-issued" basis) are valued on the basis of prices
provided by dealers or pricing services approved by the Trust's Board of
Directors. In determining the value of a particular security, pricing services
may use certain information with respect to transactions in such securities,
quotations from bond dealers, market transactions in comparable securities and
various relationships between securities in determining values. Any securities
or other assets for which such current market quotations are not readily
available are valued at fair value as determined in good faith under procedures
established by and under the general supervision and responsibility of the
Trust's Board of Directors.

Short-term securities having a remaining maturity of 60 days or less are
valued at amortized cost which approximates market value.

SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities transactions are
recorded on the trade date. Realized and unrealized gains and losses are
calculated on the identified cost basis. Interest income is recorded on the
accrual basis and the Trust amortizes premium and accretes original issue
discount on securities purchased using the interest method.

FEDERAL INCOME TAXES: It is the Trust's intention to continue to meet the
requirements of the Internal Revenue Code applicable to regulated investment
companies and to distribute sufficient net income to shareholders. For this
reason and because substantially all of the Trust's gross income consists of
tax-exempt interest, no Federal income tax provision is required.

DIVIDENDS AND DISTRIBUTIONS: The Trust declares and pays dividends and
distributions to common shareholders monthly from net investment income, net
realized short-term capital gains and other sources, if necessary. Net long-term
capital gains, if any, in excess of loss carryforwards may be distributed
annually. Dividends and distributions are recorded on the ex-dividend date.
Dividends and distributions to preferred shareholders are accrued and determined
as described in Note 4.

ESTIMATES: The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates.

NOTE 2. AGREEMENTS

The Trust has an Investment Advisory Agreement with BlackRock Financial
Management, Inc. (the "Advisor") a wholly-owned subsidiary of BlackRock
Advisors, Inc., which is a wholly-owned subsidiary of BlackRock, Inc., which in
turn is an indirect majority-owned subsidiary of PNC Bank Corp. The Trust has an
Administration Agreement with Princeton Administrators, L.P. (the
"Administrator"), an indirect wholly-owned affiliate of Merrill Lynch & Co.,
Inc.

The investment advisory fee paid to the Advisor is computed weekly and
payable monthly at an annual rate of 0.35% of the Trust's average weekly net
investment assets. The administration fee paid to the Administrator is also
computed weekly and payable monthly at an annual rate of 0.10% of the Trust's
average weekly net investment assets.

Pursuant to the agreements, the Advisor provides continuous supervision of
the investment portfolio and pays the compensation of officers of the Trust who
are affiliated persons of the Advisor. The Administrator pays occupancy and
certain clerical and accounting costs of the Trust. The Trust bears all other
costs and expenses.

NOTE 3. PORTFOLIO
SECURITIES

Purchases and sales of investments, other than short-term investments, for the
year ended December 31, 1999, aggregated $6,236,992 and $4,076,983,
respectively.

The federal income tax basis of the Trust's investments at December 31, 1999,
was $599,028,627, and accordingly, net unrealized appreciation was $34,022,575
(gross unrealized appreciation--$34,159,412, gross unrealized
depreciation--$136,837).

For federal income tax purposes, the Trust had a capital loss carryforward at
December 31, 1999 of approximately $34,000

12
<PAGE>

which will expire in 2007. Accordingly, no capital gain distribution is expected
to be paid to shareholders until net gains have been realized in excess of such
amounts.

NOTE 4. CAPITAL

There are 200 million shares of $.01 par value common stock authorized. Of the
27,207,093 common shares outstanding at December 31, 1999, the Advisor owned
7,093 shares. As of December 31, 1999, there were 8,240 preferred shares
outstanding as follows: Series T28-2,060, Series R28-2,060, Series T7-2,060 and
Series R7-2,060.

The Trust may classify or reclassify any unissued shares of common stock into
one or more series of preferred stock. On November 23, 1992, the Trust
reclassified 4,120 shares of common stock and issued 4 series of Auction Market
Preferred Stock ("Preferred Stock") as follows: Series T28--1,030 shares, Series
R28--1,030 shares, Series R7--1,030 shares and serie T7--1,030 shares. The
Preferred Stock has a liquidation value of $25,000 per share plus any
accumulated but unpaid dividends. On May 16, 1995 shareholders approved a
proposal to split each share of the Trust's Auction Market Preferred Stock into
two shares and simultaneously reduce each share's liquidation preference from
$50,000 to $25,000. The split occurred on July 24, 1995.

Dividends on Series T7 and R7 are cumulative at a rate which is reset every 7
days based on the results of an auction. Dividends on Series T28 are cumulative
at a rate which is reset every 28 days based on the results of an auction.
Series R28 paid dividends monthly at a rate established at the initial offering
through May 17, 1994. Thereafter, rates on Series R28 reset every 28 days based
on results of an auction. Dividend rates ranged from 2.40% to 5.90% during the
year ended December 31, 1999.

The Trust may not declare dividends or make other distributions on shares of
common stock or purchase any such shares if, at the time of the declaration,
distribution or purchase, asset coverage with respect to the outstanding
Preferred Stock would be less than 200%.

The Preferred Stock is redeemable at the option of the Trust, in whole or in
part, on any dividend payment date at $25,000 per share plus any accumulated or
unpaid dividends whether or not declared. The Preferred Stock is also subject to
mandatory redemption at $25,000 per share plus any accumulated or unpaid
dividends, whether or not declared if certain requirements relating to the
composition of the assets and liabilities of the Trust as set forth in the
Articles of Incorporation are not satisfied.

The holders of Preferred Stock have voting rights equal to the holders of
common stock (one vote per share) and will vote together with holders of shares
of common stock as a single class. However, holders of Preferred Stock are also
entitled to elect two of the Trust's directors. In addition, the Investment
Company Act of 1940 requires that along with approval by stockholders that might
otherwise be required, the approval of the holders of a majority of any
outstanding preferred stock, voting separately as a class would be required to
(a) adopt any plan of reorganization that would adversely affect the Preferred
Stock, and (b) take any action requiring a vote of security holders, including,
among other things, changes in the Trust's subclassification as a closed-end
investment company or changes in its fundamental investment restrictions.

NOTE 5. DIVIDENDS

Subsequent to December 31, 1999, the Board of Directors of the Trust declared a
dividend from undistributed earnings of $0.06625 per common share payable
February 1, 2000 to shareholders of record on January 14, 2000.

For the period January 1, 2000 to January 31, 2000 dividends declared on
Preferred Shares totalled $682,136 in aggregate for the four outstanding
Preferred Share series.

NOTE 6. SUBSEQUENT
EVENT

Subsequent to year-end, the Trust will be issuing 2,600 shares of Auction Rate
Municipal Preferred Stock, series T7, at an aggregate offering price of
$65,000,000. The liquidation preference of each share is $25,000 plus
accumulated but unpaid dividends. The estimated net proceeds of the offering are
$64,050,000 after payment of offering expenses and the underwriting discount.
Except for the initial dividend rate and the length of the initial dividend
period for the new preferred shares, the rights and preferences of the new
preferred shares are the same as the Trust's outstanding series T7 preferred
shares.

13
<PAGE>

- --------------------------------------------------------------------------------
THE BLACKROCK INSURED MUNICIPAL 2008 TERM TRUST INC.
REPORT OF INDEPENDENT AUDITORS
- --------------------------------------------------------------------------------

The Shareholders and Board of
The BlackRock Insured Municipal 2008 Term Trust Inc.:

We have audited the accompanying statement of assets and liabilities including
the portfolio of investments, of The BlackRock Insured Municipal 2008 Term Trust
Inc., as of December 31, 1999, and the related statement of operations for the
year then ended, and the statements of changes in net assets for each of the two
years in the period then ended and the financial highlights for each of the five
years in the period then ended. These financial statements and financial
highlights are the responsibility of the Trust's management. Our responsibility
is to express an opinion on these financial statements and financial highlights
based on our audits.

We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned at December
31, 1999 by correspondence with the custodian. An audit also includes assessing
the accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. We believe that
our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of The
BlackRock Insured Municipal 2008 Term Trust Inc. as of December 31, 1999, the
results of its operations, the changes in its net assets and financial
highlights for the respective stated periods in conformity with generally
accepted accounting principles.

/s/ Deloitte & Touche LLP

Deloitte & Touche LLP

New York, New York
February 11, 2000

14
<PAGE>

- --------------------------------------------------------------------------------
THE BLACKROCK INSURED MUNICIPAL 2008 TERM TRUST INC.
TAX INFORMATION
- --------------------------------------------------------------------------------

We are required by the Internal Revenue Code to advise you within 60 days
of the Trust's tax year end as to the federally tax-exempt interest dividends
received by you during such fiscal year. All of the net investment income
distributions paid by the Fund during its taxable year ended December 31, 1999
qualify as tax exempt interest dividends for federal income tax purposes.
Additionally, the following summarizes the per share capital gain distribution
paid by the fund during the year:

Record Payable Long-Term
Date Date Capital Gains*
------- ------- ------------

Series R28 1/7/99 1/8/99 $5.742

*All of this long-term capital gain distribution is subject to the 20% tax rate.

- --------------------------------------------------------------------------------
DIVIDEND REINVESTMENT PLAN
- --------------------------------------------------------------------------------

Pursuant to the Trust's Dividend Reinvestment Plan (the "Plan"),
shareholders may elect to have all distributions of dividends and capital gains
reinvested by State Street Bank and Trust Company (the "Plan Agent") in Trust
shares pursuant to the Plan. Shareholders who do not participate in the Plan
will receive all distributions in cash paid by check in United States dollars
mailed directly to the shareholders of record (or if the shares are held in
street or other nominee name, then to the nominee) by the transfer agent, as
dividend disbursing agent.

The Plan Agent serves as agent for the shareholders in administering the
Plan. After the Trust declares a dividend or determines to make a capital gain
distribution, the Plan Agent will, as agent for the participants, receive the
cash payment and use it to buy Trust shares in the open market on the New York
Stock Exchange or elsewhere for the participants' accounts. The Trust will not
issue any new shares under the Plan.

Participants in the Plan may withdraw from the Plan upon written notice to
the Plan Agent and will receive certificates for whole Trust shares and a cash
payment for any fraction of a Trust share.

The Plan Agent's fees for the handling of the reinvestment of dividends
and distributions will be paid by the Trust. However, each participant will pay
a pro rata share of brokerage commissions incurred with respect to the Plan
Agent's open market purchases in connection with the reinvestment of dividends
and distributions. The automatic reinvestment of dividends and distributions
will not relieve participants of any federal income tax that may be payable on
such dividends or distributions.

The Trust reserves the right to amend or terminate the Plan as applied to
any dividend or distribution paid subsequent to written notice of the change
sent to all shareholders of the Trust at least 90 days before the record date
for the dividend or distribution. The Plan also may be amended or terminated by
the Plan Agent upon at least 90 days' written notice to all shareholders of the
Trust. All correspondence concerning the Plan should be directed to the Plan
Agent at (800) 699-1BFM. The address is on the front of this report.

- --------------------------------------------------------------------------------
ADDITIONAL INFORMATION
- --------------------------------------------------------------------------------

There have been no material changes in the Trust's investment objectives
or policies that have not been approved by the shareholders or to its charter or
by-laws or in the principal risk factors associated with investment in the
Trust. There have been no changes in the persons who are primarily responsible
for the day-to-day management of the Trust's portfolio.

We have transitioned into the year 2000, and it is business as usual at
BlackRock.

15
<PAGE>

- --------------------------------------------------------------------------------
THE BLACKROCK INSURED MUNICIPAL 2008 TERM TRUST INC.
ADDITIONAL INFORMATION
- --------------------------------------------------------------------------------

THE TRUST'S INVESTMENT OBJECTIVE:

The BlackRock Insured Municipal2008 Term Trust's investment objective is to
provide current income exempt from regular federal income tax and to return $15
per share (the initial public offering price per share) to investors on or about
December 31, 2008.

WHO MANAGES THE TRUST?

BlackRock Advisors, Inc. (the "Advisor") is an SEC-registered investment
advisor. As of December 31, 1999, the Advisor and its affiliates (together,
"BlackRock") currently managed $165 billion on behalf of taxable and tax-exempt
clients worldwide. Strategies include fixed income, equity and cash and may
incorporate both domestic and international securities. Domestic fixed income
strategies utilize the government, mortgage, corporate and municipal bond
sectors. BlackRock manages twenty-two closed-end funds that are traded on either
the New York or American stock exchanges, and a $27 billion family of open-end
funds. BlackRock manages over 580 accounts, domiciled in the United States and
overseas.

WHAT CAN THE TRUST INVEST IN?

The Trust intends to invest at least 80% of its total assets in a diversified
portfolio of municipal obligations insured as to the timely payment of both
principal and interest. The Trust may invest up to 20% of its total assets in
uninsured municipal obligations which are rated Aaa by Moody's or AAA by S&P, or
are determined by the Trust's Advisor to be of comparable credit quality
(guaranteed, escrowed or backed in trust).

WHAT IS THE ADVISOR'S INVESTMENT STRATEGY?

The Advisor will seek to meet the Trust's investment objective by managing the
assets of the Trust so as to return the initial offering price ($15 per share)
at maturity. The Advisor will implement a conservative strategy that will seek
to closely match the maturity of the assets of the portfolio with the future
return of the initial investment at the end of 2008. At the Trust's termination,
BlackRock expects that the value of the securities which have matured, combined
with the value of the securities that are sold, if any, will be sufficient to
return the initial offering price to investors. On a continuous basis, the Trust
will seek its objective by actively managing its portfolio of municipal
obligations and retaining a small portion of its income each year.

In addition to seeking the return of the initial offering price, the Advisor
also seeks to provide current income exempt from regular federal income tax to
investors. The portfolio managers will attempt to achieve this objective by
investing in securities that provide competitive income. In addition, leverage
will be used to enhance the income of the portfolio. In order to maintain
competitive yields as the Trust approaches maturity and depending on market
conditions, the Advisor will attempt to purchase securities with call protection
or maturities as close to the Trust's maturity date as possible. Securities with
call protection should provide the portfolio with some degree of protection
against reinvestment risk during times of lower prevailing interest rates. Since
the Trust's primary goal is to return the initial offering price at maturity,
any cash that the Trust receives prior to its maturity date will be reinvested
in securities with maturities which coincide with the remaining term of the
Trust. It is important to note that the Trust will be managed so as to preserve
the integrity of the return of the initial offering price. If market conditions,
such as interest rate volatility, force a choice between current income and
risking the return of the initial offering price, it is likely the return of the
initial offering price will be emphasized.

HOW ARE THE TRUST'S SHARES PURCHASED AND SOLD? DOES THE TRUST PAY DIVIDENDS
REGULARLY?

The Trust's shares are traded on the New York Stock Exchange which provides
investors with liquidity on a daily basis. Orders to buy or sell shares of the
Trust must be placed through a registered broker or financial advisor. The Trust
pays monthly dividends which are typically paid on the first business day of the
month. For shares held in the shareholder's name, dividends may be reinvested in
additional shares of the Trust through the Trust's transfer agent, State Street
Bank and Trust Company. Investors who wish to hold shares in a brokerage account
should check with their financial advisor to determine whether their brokerage
firm offers dividend reinvestment services.

16
<PAGE>

LEVERAGE CONSIDERATIONS IN A TERM TRUST

Under current market conditions, leverage increases the income earned by the
Trust. The Trust employs leverage primarily through the issuance of preferred
stock. Leverage permits the Trust to borrow money at short-term rates and
reinvest that money in longer-term assets which typically offer higher interest
rates. The difference between the cost of the borrowed funds and the income
earned on the proceeds that are invested in longer term assets is the benefit to
the Trust from leverage.

Leverage also increases the duration (or price volatility of the net assets) of
the Trust, which can improve the performance of the Trust in a declining rate
environment, but can cause net assets to decline faster than the market in a
rapidly rising rate environment. The Advisor's portfolio managers continuously
monitor and regularly review the Trust's use of leverage and the Trust may
reduce, or unwind, the amount of leverage employed should the Advisor consider
that reduction to be in the best interests of the shareholders.

SPECIAL CONSIDERATIONS AND RISK FACTORS RELEVANT TO TERM TRUSTS

THE TRUST IS INTENDED TO BE A LONG-TERM INVESTMENT AND IS NOT A SHORT-TERM
TRADING VEHICLE.

RETURN OF INITIAL INVESTMENT. Although the objective of the Trust is to return
its initial offering price upon termination, there can be no assurance that this
objective will be achieved.

DIVIDEND CONSIDERATION. The income and dividends paid by the Trust are likely to
decline to some extent over the term of the Trust due to the anticipated
shortening of the dollar-weighted average maturity of the Trust's assets.

LEVERAGE. The Trust utilizes leverage through the issuance of preferred stock,
which involves special risks. The Trust's net asset value and market value may
be more volatile due to its use of leverage.

MARKET PRICE OF SHARES. The shares of closed-end investment companies such as
the Trust trade on the New York Stock Exchange (NYSE symbol: BRM) and as such
are subject to supply and demand influences. As a result, shares may trade at a
discount or a premium to their net asset value.

ILLIQUID SECURITIES. The Trust may invest in securities that are illiquid,
although under current market conditions the Trust expects only to do so to a
limited extent. An investment in these securities involves special risks.

ANTITAKEOVER PROVISIONS. Certain antitakeover provisions will make a change in
the Trust's business or management more difficult without the approval of the
Trust's Board of Directors and may have the effect of depriving shareholders of
an opportunity to sell their shares at a premium above the prevailing market
price.

MUNICIPAL OBLIGATIONS. Municipal obligations include debt obligations issued by
states, cities, and local authorities, and possessions and certain territories
of the United States to obtain funds for various public purposes, including the
construction of public facilities, the refinancing of outstanding obligations
and the obtaining of funds for general operating expenses and for loans to other
public institutions and facilities. The value of municipal debt securities
generally varies inversely with changes in prevailing market interest rates.
Depending on the amount of call protection that the securities in the Trust
have, the Trust may be subject to certain reinvestment risks in environments of
declining interest rates.

ALTERNATIVE MINIMUM TAX (AMT). The Trust may invest in securities subject to
AMT. The Trust currently holds no securities that are subject to AMT.

17
<PAGE>

- --------------------------------------------------------------------------------
THE BLACKROCK INSURED MUNICIPAL 2008 TERM TRUST INC.
GLOSSARY
- --------------------------------------------------------------------------------

CLOSED-END FUND: Investment vehicle which initially offers a fixed
number of shares and trades on a stock exchange. The
fund invests in a portfolio of securities in accordance
with its stated investment objectives and policies.

DISCOUNT: When a fund's net asset value is greater than its stock
price the fund is said to be trading at a discount.

DIVIDEND: Income generated by securities in a portfolio and
distributed to shareholders after the deduction of
expenses. This Trust declares and pays dividends to
common shareholders on a monthly basis.

DIVIDEND REINVESTMENT: Shareholders may have all dividends and distributions of
capital gains automatically reinvested into additional
shares of a fund.

MARKET PRICE: Price per share of a security trading in the secondary
market. For a closed-end fund, this is the price at
which one share of the fund trades on the stock
exchange. If you were to buy or sell shares, you would
pay or receive the market price.

NET ASSET VALUE (NAV): Net asset value is the total market value of all
securities and other assets held by the Trust, plus
income accrued on its investments, minus any liabilities
including accrued expenses, divided by the total number
of outstanding shares. It is the underlying value of a
single share on a given day. Net asset value for the
Trust is calculated weekly and published in BARRON'S on
Saturday and THE WALL STREET JOURNAL on Monday.

PREMIUM: When a fund's stock price is greater than its net asset
value, the fund is said to be trading at a premium.

PRE-REFUNDED BONDS: These securities are collateralized by U.S. Government
securities which are held in escrow and are used to pay
principal and interest on the tax exempt issue and
retire the bond in full at the date indicated, typically
at a premium to par.

18
<PAGE>

- --------------------------------------------------------------------------------
BLACKROCK ADVISORS, INC.
SUMMARY OF CLOSED-END FUNDS
- --------------------------------------------------------------------------------

TAXABLE TRUSTS
- --------------------------------------------------------------------------------

STOCK MATURITY
PERPETUAL TRUSTS SYMBOL DATE
------ --------
The BlackRock Income Trust Inc. BKT N/A
The BlackRock North American Government Income Trust Inc. BNA N/A
The BlackRock High Yield Trust BHY N/A

TERM TRUSTS
The BlackRock Target Term Trust Inc. BTT 12/00
The BlackRock 2001 Term Trust Inc. BTM 06/01
The BlackRock Strategic Term Trust Inc. BGT 12/02
The BlackRock Investment Quality Term Trust Inc. BQT 12/04
The BlackRock Advantage Term Trust Inc. BAT 12/05
The BlackRock Broad Investment Grade 2009 Term Trust Inc. BCT 12/09

TAX-EXEMPT TRUSTS
- --------------------------------------------------------------------------------
STOCK MATURITY
PERPETUAL TRUSTS SYMBOL DATE
------ ------
The BlackRock Investment Quality Municipal Trust Inc. BKN N/A
THE BLACKROCK CALIFORNIA INVESTMENT QUALITY
MUNICIPAL TRUST INC RAA N/A
The BlackRock Florida Investment Quality
Municipal Trust RFA N/A
The BlackRock New Jersey Investment Quality
Municipal Trust Inc. RNJ N/A
The BlackRock New York Investment Quality
Municipal Trust Inc. RNY N/A
The BlackRock Pennsylvania Strategic
Municipal Trust BPS N/A
The BlackRock Strategic Municipal Trust BSD N/A

TERM TRUSTS

The BlackRock Municipal Target Term Trust Inc. BMN 12/06
The BlackRock Insured Municipal 2008
Term Trust Inc. BRM 12/08
The BlackRock California Insured Municipal 2008
Term Trust Inc. BFC 12/08
The BlackRock Florida Insured Municipal 2008
Term Trust BRF 12/08
The BlackRock New York Insured Municipal 2008
Term Trust Inc. BLN 12/08
The BlackRock Insured Municipal Term Trust Inc. BMT 12/10

IF YOU WOULD LIKE FURTHER INFORMATION PLEASE CALL BLACKROCK
AT (800) 227-7BFM (7236) OR CONSULT WITH YOUR FINANCIAL ADVISOR.
- --------------------------------------------------------------------------------

19
<PAGE>

BLACKROCK

DIRECTORS
Laurence D. Fink, CHAIRMAN
Andrew F. Brimmer
Richard E. Cavanagh
Kent Dixon
Frank J. Fabozzi
James Clayburn La Force, Jr.
Walter F. Mondale
Ralph L. Schlosstein

OFFICERS
Ralph L. Schlosstein, PRESIDENT
Keith T. Anderson, VICE PRESIDENT
Michael C. Huebsch, VICE PRESIDENT
Robert S. Kapito, VICE PRESIDENT
Kevin M. Klingert, VICE PRESIDENT
Richard M. Shea, VICE PRESIDENT/TAX
Henry Gabbay, TREASURER
James Kong, ASSISTANT TREASURER
Karen H. Sabath, SECRETARY

INVESTMENT ADVISOR
BlackRock Advisors, Inc.
400 Bellevue Parkway
Wilmington, DE 19809
(800) 227-7BFM

ADMINISTRATOR
Princeton Adminstrators, L.P.
P.O. Box 9095
Princeton, NJ 08543-9095
(800) 543-6217

CUSTODIAN AND TRANSFER AGENT
State Street Bank and Trust Company
One Heritage Drive
North Quincy, MA 02171
(800) 699-1BFM

AUCTION AGENT
Deutsche Bank
4 Albany Street New York, NY 10006

INDEPENDENT AUDITORS
Deloitte & Touche LLP
Two World Financial Center
New York, NY 10281-1434

LEGAL COUNSEL
Skadden, Arps, Slate, Meagher & Flom LLP
Four Times Square
New York, NY 10036

This report is for shareholder information. This is not a prospectus intended
for use in the purchase or sale of any securities.

THE BLACKROCK INSURED
MUNICIPAL 2008 TERM TRUST INC.
c/o Princeton Administrators, L.P.
P.O. Box 9095
Princeton, NJ 08543-9095
(800) 543-6217

THE BLACKROCK
INSURED MUNICIPAL
2008 TERM
TRUST INC.
=====================
ANNUAL REPORT
DECEMBER 31, 1999

09247K-10-9
09247K-30-7
09247K-20-8
09247K-40-6
09247K-50-5
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