MUNIVEST
NEW YORK
INSURED
FUND, INC.
FUND LOGO
Annual Report
October 31, 1995
This report, including the financial information herein,
is transmitted to the shareholders of MuniVest New York
Insured Fund, Inc. for their information. It is not a
prospectus, circular or representation intended for use
in the purchase of shares of the Fund or any securities
mentioned in the report. Past performance results shown
in this report should not be considered a representation
of future performance. The Fund has leveraged its
Common Stock by issuing Preferred Stock to provide
the Common Stock shareholders with a potentially
higher rate of return. Leverage creates risks for
Common Stock shareholders, including the likelihood
of greater volatility of net asset value and market price
of shares of the Common Stock, and the risk that
fluctuations in the short-term dividend rates of the
Preferred Stock may affect the yield to Common
Stock shareholders.
<PAGE>
MuniVest
New York Insured
Fund, Inc.
Box 9011
Princeton, NJ
08543-9011
MUNIVEST NEW YORK INSURED FUND, INC.
The Benefits and
Risks of
Leveraging
MuniVest New York Insured Fund, Inc. utilizes leveraging to seek
to enhance the yield and net asset value of its Common Stock.
However, these objectives cannot be achieved in all interest rate
environments. To leverage, the Fund issues Preferred Stock,
which pays dividends at prevailing short-term interest rates, and
invests the proceeds in long-term municipal bonds. The interest
earned on these investments is paid to Common Stock share-
holders in the form of dividends, and the value of these portfolio
holdings is reflected in the per share net asset value of the Fund's
Common Stock. However, in order to benefit Common Stock
shareholders, the yield curve must be positively sloped; that is,
short-term interest rates must be lower than long-term interest
rates. At the same time, a period of generally declining interest
rates will benefit Common Stock shareholders. If either of these
conditions change, then the risks of leveraging will begin to
outweigh the benefits.
<PAGE>
To illustrate these concepts, assume a fund's Common Stock
capitalization of $100 million and the issuance of Preferred Stock
for an additional $50 million, creating a total value of $150 million
available for investment in long-term municipal bonds. If prevail-
ing short-term interest rates are approximately 3% and long-term
interest rates are approximately 6%, the yield curve has a strongly
positive slope. The fund pays dividends on the $50 million of
Preferred Stock based on the lower short-term interest rates.
At the same time, the fund's total portfolio of $150 million earns
the income based on long-term interest rates. Of course, increases
in short-term interest rates would reduce (and even eliminate)
the dividends on the Common Stock.
In this case, the dividends paid to Preferred Stock shareholders
are significantly lower than the income earned on the fund's
long-term investments, and therefore the Common Stock share-
holders are the beneficiaries of the incremental yield. However,
if short-term interest rates rise, narrowing the differential between
short-term and long-term interest rates, the incremental yield
pick-up on the Common Stock will be reduced or eliminated com-
pletely. At the same time, the market value of the fund's Common
Stock (that is, its price as listed on the New York Stock Exchange)
may, as a result, decline. Furthermore, if long-term interest
rates rise, the Common Stock's net asset value will reflect the full
decline in the price of the portfolio's investments, since the value
of the fund's Preferred Stock does not fluctuate. In addition to the
decline in net asset value, the market value of the fund's Common
Stock may also decline.
Officers and
Directors
Arthur Zeikel, President and Director
Donald Cecil, Director
M. Colyer Crum, Director
Edward H. Meyer, Director
Jack B. Sunderland, Director
J. Thomas Touchton, Director
Terry K. Glenn, Executive Vice President
Donald C. Burke, Vice President
Vincent R. Giordano, Vice President
Kenneth A. Jacob, Vice President
Gerald M. Richard, Treasurer
Mark B. Goldfus, Secretary
Transfer Agents
Common Stock:
The Bank of New York
101 Barclay Street
New York, New York 10286
<PAGE>
Preferred Stock:
IBJ Schroder Bank & Trust Company
One State Street
New York, New York 10004
Custodian
The Bank of New York
90 Washington Street
New York, New York 10286
NYSE Symbol
MVY
DEAR SHAREHOLDER
For the year ended October 31, 1995,
the Common Stock of MuniVest New
York Insured Fund, Inc. earned $0.748
per share income dividends, which
included earned and unpaid dividends
of $0.062. This represents a net
annualized yield of 5.69%, based on a
month-end net asset value of $13.14
per share. Over the same period, the
total investment return on the Fund's
Common Stock was +18.94%, based on
a change in per share net asset value
from $11.79 to $13.14, and assuming
reinvestment of $0.754 per share
income dividends.
For the six-month period ended Octo-
ber 31, 1995, the total investment
return on the Fund's Common Stock
was +8.01%, based on a change in per
share net asset value from $12.55 to
$13.14, and assuming reinvestment
of $0.370 per share income dividends.
For the six-month period ended
October 31, 1995, the Fund's Auction
Market Preferred Stock had an aver-
age yield of 3.75%.
<PAGE>
The Environment
After losing momentum through the
second calendar quarter of 1995, it
now appears that the US economic
expansion has resumed. Gross domes-
tic product growth for the three
months ended September 30 was
reported to be 4.2%, higher than gener-
ally expected. September durable
goods orders increased a surprisingly
strong 3%, and existing home sales
rose to a near-record level. At the
same time, there is evidence that infla-
tionary pressures remain subdued.
Reflecting the trend of renewed eco-
nomic growth--and continued good
news on the inflation front--the Fed-
eral Reserve Board signaled no near-
term shift in monetary policy following
its September meeting. Thus, official
interest rates may not be reduced
further in the immediate future.
Another significant development has
been the strengthening of the US
dollar relative to the yen and the
Deutschemark. Improving interest rate
differentials favoring the US currency,
combined with coordinated central
bank intervention and more positive
investor sentiment, have helped to
bolster the dollar in foreign exchange
markets. Other factors that appear to
be improving the US dollar's outlook in
the near term are a pick-up in capital
flows to the United States and the
prospect of increased capital outflows
from Japan. However, it remains to be
seen if the US dollar's strengthening
trend can continue without significant
improvements in the US budget and
trade deficits.
In the weeks ahead, investor interest
will continue to focus on US economic
activity. Clear signs of a moderate,
noninflationary expansion could fur-
ther benefit the US stock and bond
markets. In addition, should the cur-
rent Federal budget deficit reduction
efforts now underway in Washington
prove successful, the implications
would likely be positive for the US
financial markets.
<PAGE>
The Municipal Market
Tax-exempt bond yields continued to
decline during the six-month period
ended October 31, 1995. As measured
by the Bond Buyer Revenue Bond
Index, the yield on uninsured, long-
term municipal revenue bonds fell 30
basis points (0.30%) to end the Octo-
ber period at approximately 6.00%.
While tax-exempt bond yields have
declined dramatically from their highs
one year ago, municipal bond yields
have exhibited considerable yield vol-
atility on a weekly basis. In recent
months, tax-exempt bond yields have
fluctuated by as much as 20 basis
points on a week-to-week basis. US
Treasury bond yields have displayed
similar volatility, but the extent of
their decline has been greater. By the
end of October, long-term US Treasury
bond yields had declined almost 100
basis points to 6.33%. Proposed Fed-
eral tax restructuring continued to
weigh heavily on the tax-exempt bond
market. Thus far in 1995, US Treasury
bond yields have declined approxi-
mately 150 basis points. Municipal
bond yields have fallen approximately
95 basis points as the uncertainty
surrounding any changes to the exist-
ing Federal income tax structure has
prevented the municipal bond market
from rallying as strongly as its taxable
counterpart.
<PAGE>
A general view of a moderately ex-
panding domestic economy, supported
by a very favorable inflationary envi-
ronment, allowed interest rates to
significantly decline from their recent
highs in November 1994. However, this
decline was not a smooth downward
curve. Conflicting economic indicators
were released during recent months
that have prevented a clear consensus
regarding the near-term direction of
interest rates from being reached. The
resultant uncertainty has prompted
more of a saw-toothed pattern as
interest rate declines were repeatedly
interrupted by indications of stronger-
than-expected economic growth. As
these concerns were overcome by sub-
sequent weaker economic releases,
interest rate declines have resumed.
These periods of volatility are likely to
continue for the remainder of 1995, or
until proposed Federal budget deficit
reduction packages are resolved and
any resultant responses by the
Federal Reserve Board have occurred.
However, the municipal bond market's
technical position remained suppor-
tive throughout recent quarters.
Approximately $82 billion in long-term
municipal securities were issued dur-
ing the six months ended October 31,
1995. While this issuance is virtually
identical to underwritings during the
October 31, 1994 quarter, tax-exempt
bond issuance over the last 12 months
remained approximately 25% below
comparable 1994 levels. The munici-
pal bond market should maintain this
positive technical position well into
1996. Annual issuance for 1995 is now
projected to be approximately $140
billion, significantly less than last
year's already low level of $162 billion.
Projected maturities and early redemp-
tions for the remainder of 1995 and
throughout 1996 will lead to a con-
tinued decline in the total outstand-
ing municipal bond supply throughout
1996 and, perhaps, into 1998 should
new bond issuance remain at histori-
cally low levels.
<PAGE>
Despite the municipal bond market's
relative underperformance compared
to the US Treasury market thus far in
1995, the extent of the tax-exempt
bond market's rally was nonetheless
quite impressive. Municipal bond
yields have fallen 135 basis points
from their highs reached in November
1994 and municipal bond prices rose
accordingly. Most tax-exempt products
recouped almost all of the losses
incurred in 1994 and are well on their
way to posting double-digit total
returns for all of 1995. This relative
underperformance so far in 1995 pro-
vided long-term investors with the
rare opportunity to purchase tax-
exempt securities at yield levels near
those of taxable securities.
Additionally, many of the factors that
led to the relative underperformance
of the tax-exempt bond market thus
far in 1995, namely investor concern
regarding Federal budget deficit
reductions and proposed changes in
Federal income tax structure, are
nearing resolution. The Federal bud-
get reconciliation process has already
begun, and may be essentially com-
pleted by year-end. Recent public
opinion polls suggest that the majority
of American taxpayers prefer the
existing Federal income tax system
compared to proposed changes, such
as the flat tax or national sales tax.
In an upcoming election year, neither
party is likely to advocate a clearly
unpopular position, particularly one
that can be expected to negatively
impact the Federal budget deficit reduc-
tion program through reduced tax
revenues. As these factors are
resolved, we believe that much of the
resistance that the municipal bond
market met this year should dissipate.
This should allow municipal bond yields
to significantly decline from current
levels in order to return to more normal
historic yield relationships.
<PAGE>
Portfolio Strategy
As interest rates continued to move
lower at the beginning of May, our
strategy of adding lower-coupon,
longer-maturity issues to the portfolio
continued to enhance the Fund's net
asset value. Economic releases during
the second quarter of 1995 confirmed
our belief that the economy was in-
deed slowing and the potential of an
ease in interest rates by the Federal
Reserve Board was a real possibility.
In July, the Federal Reserve Board cut
the Federal Fund's target rate by 25
basis points. While the cut was not
significant in size, it did indicate the
probable end to any further interest
rate increases which had taken a
severe toll on the performance of the
credit markets during the preceding
12 months.
The economic soft landing that inves-
tors hoped for came into question
during the third quarter of this year
as the economy produced stronger-
than-expected results. This caused a
temporary rise in yields as investors
feared renewed inflationary pressure
along with renewed growth.
The bounce back in economic growth
seems to be waning as we move into
the fourth quarter of 1995. Consumers
have curtailed their spending and
continue to be extremely price con-
scious in the purchase of goods, which
has produced the lowest level of infla-
tion in many years. As a result, we
are anticipating a continued decline
in interest rates during the remainder
of 1995.
While New York experienced a record
delay in approving a budget agreeable
to the legislature and the Governor,
the surge of issuance expected by the
delay was well received by investors.
The main reason for the more orderly
disbursement of the financings was a
result of the close attention the new
administration spent in reviewing the
financing needs of the various author-
ities. This renewed fiscal responsibil-
ity helped the perception of New York
issues in the marketplace and aided
their relative value.
<PAGE>
Prior to the budget resolution, issu-
ance in New York was well below 1994
levels. The third quarter of this year
saw volume increase by 30% over 1994
levels. On a year-over-year basis, New
York issuance is down 25%, slightly
higher than volume declines on a
national basis.
In Conclusion
We appreciate your interest in
MuniVest New York Insured Fund,
Inc., and we look forward to assisting
you with your financial needs in the
months and years ahead.
Sincerely,
(Arthur Zeikel)
Arthur Zeikel
President
(Vincent R. Giordano)
Vincent R. Giordano
Vice President
(James C. Cahill)
James C. Cahill
Portfolio Manager
November 27, 1995
We are pleased to announce that James
C. Cahill is responsible for the day-to-
day management of MuniVest New York
Insured Fund, Inc. Mr. Cahill has been
employed by Merrill Lynch Asset
Management, L.P. (an affiliate of the
Fund's investment adviser) since 1994 as
Vice President and Portfolio Manager.
Prior thereto, he was employed by the
Prudential Insurance Company.
<PAGE>
<TABLE>
PROXY RESULTS
<CAPTION>
During the six-month period ended October 31, 1995,
MuniVest New York Insured Fund, Inc. Common Stock
shareholders voted on the following proposals. The
proposals were approved at a special shareholders'
meeting on May 12, 1995. The description of each
proposal and number of shares voted are as follows:
Shares Voted Shares Voted
For Without Authority
<S> <S> <C> <C>
1. To elect the Fund's Board of Directors: Edward H. Meyer 6,791,707 193,634
Jack B. Sutherland 6,793,868 191,473
J. Thomas Touchton 6,794,204 191,137
Arthur Zeikel 6,793,351 191,990
<CAPTION>
Shares Voted Shares Voted Shares Voted
For Against Abstain
<S> <C> <C> <C>
2. To select Ernst & Young LLP as the Fund's independent auditors. 6,714,896 53,953 216,492
<CAPTION>
During the six-month period ended October 31, 1995,
MuniVest New York Insured Fund, Inc. Preferred Stock
shareholders voted on the following proposals. The
proposals were approved at a special shareholders'
meeting on May 12, 1995. The description of each
proposal and number of shares voted are as follows:
Shares Voted Shares Voted
For Without Authority
<S> <C> <C> <C>
1. To elect the Fund's Board of Directors: Donald Cecil 1,579 170
M. Colyer Crum 1,579 170
Edward H. Meyer 1,579 170
Jack B. Sutherland 1,579 170
J. Thomas Touchton 1,579 170
Arthur Zeikel 1,579 170
<PAGE>
<CAPTION>
Shares Voted Shares Voted Shares Voted
For Against Abstain
<S> <C> <C> <C>
2. To select Ernst & Young LLP as the Fund's independent auditors. 1,744 5 0
</TABLE>
Portfolio
Abbreviations
To simplify the listings of MuniVest New York Insured Fund, Inc.'s
portfolio holdings in the Schedule of Investments, we have
abbreviated the names of many of the securities according to
the list at right.
AMT Alternative Minimum Tax (subject to)
HFA Housing Finance Agency
IDA Industrial Development Authority
IDR Industrial Development Revenue Bonds
M/F Multi-Family
PCR Pollution Control Revenue Bonds
UT Unlimited Tax
VRDN Variable Rate Demand Notes
<TABLE>
SCHEDULE OF INVESTMENTS (in Thousands)
<CAPTION>
S&P Moody's Face Value
STATE Ratings Ratings Amount Issue (Note 1a)
<S> <S> <S> <C> <S> <C>
New York--98.5% Metropolitan Transportation Authority, New York,
Commuter Facilities Revenue Bonds:
AAA Aaa $ 2,990 Refunding, Series A, 6.125% due 7/01/2012 (e) $ 3,113
BBB Baa1 1,000 (Service Contract), Series P, 5.75% due 7/01/2015 962
AAA Aaa 5,000 Metropolitan Transportation Authority, New York, Transport
Facilities Revenue Bonds, Series O, 6.375% due 7/01/2020 (e) 5,295
A1+ NR* 1,000 Nassau County, New York, IDA, Civic Facilities Revenue Bonds
(Cold Spring Harbor Laboratory Project), VRDN, 3.95% due 7/01/2019 (a) 1,000
<PAGE>
AAA Aaa 3,685 Nassau County, New York, UT, Series P, 6.50% due 11/01/2011 (b) 4,028
AAA Aaa 2,000 New York City, New York, Educational Construction Fund Revenue Bonds,
Senior Sub-Series B, 5.625% due 4/01/2013 (e) 2,005
AAA Aaa 5,000 New York City, New York, IDA, Civic Facilities Revenue Bonds
(USTA National Tennis Center Project), 6.375% due 11/15/2014 (f) 5,295
A1+ NR* 400 New York City, New York, IDA, IDR, (Japan Airlines Company Ltd.
Project) VRDN, AMT, 4% due 11/01/2015 (a) 400
New York City, New York, Municipal Water Finance Authority,
Water and Sewer System Revenue Bonds (e):
AAA Aaa 3,000 Series B, 5.50% due 6/15/2019 2,938
AAA Aaa 4,000 Series F, 5.50% due 6/15/2023 3,895
New York City, New York, UT, Series B (Fiscal 92):
BBB+ Baa1 5,000 7.50% due 2/01/2006 5,539
AAA Aaa 2,000 7% due 2/01/2017 (c) 2,226
AAA Aaa 2,000 7% due 2/01/2018 (c) 2,226
New York State Dormitory Authority Revenue Bonds:
AAA Aaa 5,915 (City University), Third Generation Reserves, Series 2, 6.875%
due 7/01/2014 (e) 6,539
A1+ VMIG1++ 1,200 (Cornell University), VRDN, Series B, 3.90% due 7/01/2025 (a) 1,200
AAA Aaa 1,500 Refunding (State University Educational Facilities), Series A,
5.50% due 5/15/2010 (b) 1,521
AAA Aaa 4,500 Refunding (State University Educational Facilities), Series A,
5.875% due 5/15/2011 (b) 4,713
AAA Aaa 4,315 (Saint Vincent's Hospital and Medical Center), 5.80%
due 8/01/2025 (c) (d) 4,296
AAA Aaa 1,380 (State University Educational Facilities), Series A,
5.875% due 5/15/2011 (c) 1,445
AAA Aaa 6,640 New York State Energy Research and Development Authority,
Gas Facilities Revenue Bonds (Brooklyn Union Gas Company),
AMT, Series B, 6.75% due 2/01/2024 (e) 7,085
A1+ NR* 1,000 New York State Energy Research and Development Authority, PCR
(Niagara Power Corporation Project), VRDN, AMT, Series B, 3.95%
due 7/01/2027 (a) 1,000
AAA Aaa 3,585 New York State HFA, M/F Housing Secured Mortgage Revenue Bonds,
Series A, 6.30% due 8/15/2026 (c) 3,656
A Aaa 8,000 New York State Local Government Assistance Corporation Revenue
Bonds, Series A, 7.125% due 4/01/2002 (g) 9,289
<PAGE> New York State Medical Care Facilities, Finance Agency Revenue Bonds:
AAA Aaa 4,000 (Mental Health Services Facilities), Series C, 5.25% due 8/15/2014 (b) 3,776
AAA Aaa 3,500 (Montefiore Medical Center), Series A, 5.75% due 2/15/2025 (c) (d) 3,456
AAA Aaa 4,600 (New York Hospital Mortgage), Series A, 6.80% due 8/15/2024 (c) (d) 5,022
AAA Aaa 2,000 (New York Hospital Mortgage), Series A, 6.50% due 8/15/2029 (c) (d) 2,128
AAA Aaa 3,500 Refunding (Mental Health Services Facilities), Series F, 5.25%
due 2/15/2019 (e) 3,260
AAA Aaa 3,000 New York State Thruway Authority, General Revenue Bonds,
Series A, 5.50% due 1/01/2023 (b) 2,921
New York State Urban Development Corporation,
Revenue Refunding Bonds:
BBB Baa1 2,360 (Correctional Facilities), 5.50% due 1/01/2015 2,209
AAA Aaa 10,000 (Correctional Facilities), Series A, 6.50% due 1/01/2010 (f) 11,026
AAA Aaa 5,000 (Correctional Facilities), Series A, 5% due 1/01/2017 (c) 4,613
BBB Baa1 2,000 (Onondaga County Convention Project), 6.25% due 1/01/2020 2,013
AAA Aaa 1,000 Niagara Falls, New York, Water Treatment Plant, UT, AMT, 7.25%
due 11/01/2010 (e) 1,167
Port Authority of New York and New Jersey, Consolidated Bonds:
AAA Aaa 3,000 72nd Series, 7.40% due 10/01/2012 (c) 3,457
AAA Aaa 3,185 Refunding, UT, AMT, 97th Series, 6.50% due 7/15/2019 (b) 3,375
A1+ VMIG1++ 100 Port Authority of New York and New Jersey, Special Obligation
Revenue Bonds (Versatile Structure Obligation), VRDN, Series 2,
3.60% due 5/01/2019 (a) 100
A1+ VMIG1++ 1,800 Syracuse, New York, IDA, Civic Facility Revenue Bonds (Multi-Modal
Syracuse University Project), VRDN, 3.90% due 3/01/2023 (a) 1,800
Triborough Bridge and Tunnel Authority, New York, Special Obligation
Revenue Refunding Bonds:
AAA Aaa 5,475 Series A, 6.625% due 1/01/2017 (e) 5,903
AAA Aaa 5,150 Series B, 6.875% due 1/01/2015 (c) 5,650
Total Investments (Cost--$133,117)--98.5% 141,542
Other Assets Less Liabilities--1.5% 2,140
--------
Net Assets--100.0% $143,682
========
<PAGE>
<FN>
(a)The interest rate is subject to change periodically based upon prevailing
market rates. The interest rate shown is the rate in effect at October 31, 1995.
(b)FGIC Insured.
(c)AMBAC Insured.
(d)FHA Insured.
(e)MBIA Insured.
(f)FSA Insured.
(g)Prerefunded.
*Not Rated.
++Highest short-term rating by Moody's Investors Service, Inc.
Ratings of issues shown have not been audited by Ernst & Young LLP.
See Notes to Financial Statements.
</TABLE>
<TABLE>
STATEMENT OF ASSETS, LIABILITIES AND CAPITAL
<CAPTION>
As of October 31, 1995
<S> <S> <C> <C>
Assets: Investments, at value (identified cost--$133,117,293) (Note 1a) $141,541,932
Cash 16,905
Interest receivable 2,417,981
Deferred organization expense (Note 1e) 15,660
Prepaid expenses and other assets 6,162
------------
Total assets 143,998,640
------------
Liabilities: Payables:
Dividends to shareholders (Note 1f) $ 181,481
Investment adviser (Note 2) 58,860 240,341
------------
Accrued expenses and other liabilities 76,122
------------
Total liabilities 316,463
------------
Net Assets: Net assets $143,682,177
============
Capital: Capital Stock (200,000,000 shares authorized) (Note 4):
Preferred Stock, par value $.10 per share (1,960 shares of AMPS*
issued and outstanding at $25,000 per share liquidation preference) $ 49,000,000
Common Stock, par value $.10 per share (7,204,432 shares issued and
outstanding) $ 720,443
Paid-in capital in excess of par 100,237,381
Undistributed investment income--net 532,766
Accumulated realized capital losses on investments--net (Note 5) (15,233,052)
Unrealized appreciation on investments--net 8,424,639
------------
Total--Equivalent to $13.14 net asset value per share of Common Stock
(market price--$12.00) 94,682,177
------------
Total capital $143,682,177
============
<PAGE>
<FN>
*Auction Market Preferred Stock.
See Notes to Financial Statements.
</TABLE>
<TABLE>
STATEMENT OF OPERATIONS
<CAPTION>
For the Year Ended October 31, 1995
<S> <S> <C> <C>
Investment Interest and amortization of premium and discount earned $ 8,281,991
Income (Note 1d):
Expenses: Investment advisory fees (Note 2) $ 694,712
Commission fees (Note 4) 124,283
Professional fees 76,825
Printing and shareholder reports 41,712
Transfer agent fees 37,045
Accounting services (Note 2) 22,673
Directors' fees and expenses 22,627
Listing fees 16,170
Custodian fees 13,211
Pricing fees 6,473
Amortization of organization expenses (Note 1e) 6,275
Other 10,918
----------
Total expenses before reimbursement 1,072,924
Reimbursement of expenses (Note 2) (34,961)
----------
Total expenses after reimbursement 1,037,963
-----------
Investment income--net 7,244,028
-----------
Realized & Realized loss on investments--net (8,401,860)
Unrealized Gain Change in unrealized appreciation/depreciation on investments--net 18,187,404
(Loss) on -----------
Investments--Net Net Increase in Net Assets Resulting from Operations $17,029,572
(Notes 1b, 1d ===========
& 3):
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
<CAPTION>
For the Year Ended October 31,
Increase (Decrease) in Net Assets: 1995 1994
<S> <S> <C> <C>
Operations: Investment income--net $ 7,244,028 $ 7,389,100
Realized loss on investments--net (8,401,860) (6,831,186)
Change in unrealized appreciation/depreciation on investments--net 18,187,404 (15,186,065)
------------ ------------
Net increase (decrease) in net assets resulting from operations 17,029,572 (14,628,151)
------------ ------------
Dividends & Investment income--net:
Distributions to Common Stock (5,428,929) (6,182,613)
Shareholders Preferred Stock (1,838,960) (1,194,786)
(Note 1f): Realized gain on investments--net:
Common Stock -- (267,833)
Preferred Stock -- (42,571)
------------ ------------
Net decrease in net assets resulting from dividends and distributions
to shareholders (7,267,889) (7,687,803)
------------ ------------
Capital Stock Offering and underwriting costs resulting from the issuance of
Transactions Preferred Stock -- 23,256
(Notes 1e & 4): Value of shares issued to Common Stock shareholders in reinvestment of
dividends and distributions -- 933,698
------------ ------------
Net increase in net assets derived from capital stock transactions -- 956,954
------------ ------------
Net Assets: Total increase (decrease) in net assets 9,761,683 (21,359,000)
Beginning of year 133,920,494 155,279,494
------------ ------------
End of year* $143,682,177 $133,920,494
============ ============
<FN>
*Undistributed investment income--net $ 532,766 $ 556,627
============ ============
See Notes to Financial Statements.
</TABLE>
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS
<CAPTION>
For the
Period
The folowing per share data and ratios have been derived April 30,
from information provided in the financial statements. For the Year Ended 1993++ to
October 31, Oct. 31,
Increase (Decrease) in Net Asset Value: 1995 1994 1993
<S> <S> <C> <C> <C>
Per Share Net asset value, beginning of period $ 11.79 $ 14.90 $ 14.18
Operating -------- -------- --------
Performance: Investment income--net 1.00 1.03 .48
Realized and unrealized gain (loss) on investments--net 1.36 (3.06) .80
-------- -------- --------
Total from investment operations 2.36 (2.03) 1.28
-------- -------- --------
Less dividends and distributions to Common Stock shareholders:
Investment income--net (.75) (.86) (.34)
Realized gain on investments--net -- (.04) --
-------- -------- --------
Total dividends and distributions to Common Stock shareholders (.75) (.90) (.34)
-------- -------- --------
Capital charge resulting from issuance of Common Stock -- -- (.03)
-------- -------- --------
Effect of Preferred Stock activity:++++
Dividends and distributions to Preferred Stock shareholders:
Investment income--net (.26) (.17) (.06)
Realized gain on investments--net -- (.01) --
Capital charge resulting from issuance of Preferred Stock -- -- (.13)
-------- -------- --------
Total effect of Preferred Stock activity (.26) (.18) (.19)
-------- -------- --------
Net asset value, end of period $ 13.14 $ 11.79 $ 14.90
======== ======== ========
Market price per share, end of period $ 12.00 $ 10.50 $ 14.75
======== ======== ========
Total Investment Based on market price per share 21.97% (23.65%) .59%+++
Return:** ======== ======== ========
Based on net asset value per share 18.94% (15.13%) 7.49%+++
======== ======== ========
Ratios to Average Expenses, net of reimbursement .75% .64% .35%*
Net Assets:*** ======== ======== ========
Expenses .77% .74% .79%*
======== ======== ========
Investment income--net 5.22% 5.06% 4.75%*
======== ======== ========
<PAGE>
Supplemental Net assets, net of Preferred Stock, end of period (in thousands) $ 94,682 $ 84,920 $106,279
Data: ======== ======== ========
Preferred Stock outstanding, end of period (in thousands) $ 49,000 $ 49,000 $ 49,000
======== ======== ========
Portfolio turnover 192.08% 74.77% 10.81%
======== ======== ========
Dividends Investment income--net $ 938 $ 610 $ 242
Per Share on
Preferred Stock
Outstanding:++++++
<FN>
*Annualized.
**Total investment returns based on market value, which can be significantly
greater or lesser than the net asset value, may result in substantially different
returns. Total investment returns exclude the effects of sales loads.
***Do not reflect the effect of dividends to Preferred Stock shareholders.
++Commencement of Operations.
++++The Fund's Preferred Stock was issued on June 1, 1993.
++++++Dividends per share have been adjusted to reflect a two-for-one stock split.
+++Aggregate total investment return.
See Notes to Financial Statements.
</TABLE>
NOTES TO FINANCIAL STATEMENTS
1. Significant Accounting Policies:
MuniVest New York Insured Fund, Inc. (the "Fund") is registered
under the Investment Company Act of 1940 as a non-diversified,
closed-end management investment company. The Fund determines
and makes available for publication the net asset value of its Common
Stock on a weekly basis. The Fund's Common Stock is listed on the
New York Stock Exchange under the symbol MVY. The following is a
summary of significant accounting policies followed by the Fund.
<PAGE>
(a) Valuation of investments--Municipal bonds are traded primarily
in the over-the-counter markets and are valued at the most recent bid
price or yield equivalent as obtained by the Fund's pricing service
from dealers that make markets in such securities. Financial futures
contracts and options thereon, which are traded on exchanges, are
valued at their closing prices as of the close of such exchanges.
Options, which are traded on exchanges, are valued at their last sale
price as of the close of such exchanges or, lacking any sales, at the last
available bid price. Securities with remaining maturities of sixty
days or less are valued at amortized cost, which approximates market
value. Securities for which market quotations are not readily avail-
able are valued at fair value as determined in good faith by or under
the direction of the Board of Directors of the Fund, including valua-
tions furnished by a pricing service retained by the Fund, which may
utilize a matrix system for valuations. The procedures of the pricing
service and its valuations are reviewed by the officers of the Fund
under the general supervision of the Board of Directors.
(b) Derivative financial instruments--The Fund may engage in
various portfolio strategies to seek to increase its return by hedging
its portfolio against adverse movements in the debt markets. Losses
may arise due to changes in the value of the contract or if the
counterparty does not perform under the contract.
* Financial futures contracts--The Fund may purchase or sell
interest rate futures contracts and options on such futures contracts
for the purpose of hedging the market risk on existing securities or
the intended purchase of securities. Futures contracts are contracts
for delayed delivery of securities at a specific future date and at a
specific price or yield. Upon entering into a contract, the Fund
deposits and maintains as collateral such initial margin as required
by the exchange on which the transaction is effected. Pursuant to
the contract, the Fund agrees to receive from or pay to the broker an
amount of cash equal to the daily fluctuation in value of the contract.
Such receipts or payments are known as variation margin and are
recorded by the Fund as unrealized gains or losses. When the con-
tract is closed, the Fund records a realized gain or loss equal to the
difference between the value of the contract at the time it was
opened and the value at the time it was closed.
* Options--The Fund is authorized to write covered call options and
purchase put options. When the Fund writes an option, an amount
equal to the premium received by the Fund is reflected as an asset
and an equivalent liability. The amount of the liability is subsequently
marked to market to reflect the current market value of the option
written.
When a security is purchased or sold through an exercise of an
option, the related premium paid (or received) is added to (or
deducted from) the basis of the security acquired or deducted from
(or added to) the proceeds of the security sold. When an option
expires (or the Fund enters into a closing transaction), the Fund
realizes a gain or loss on the option to the extent of the premiums
received or paid (or gain or loss to the extent the cost of the closing
transaction exceeds the premium paid or received).
<PAGE>
Written and purchased options are non-income producing
investments.
(c) Income taxes--It is the Fund's policy to comply with the require-
ments of the Internal Revenue Code applicable to regulated invest-
ment companies and to distribute substantially all of its taxable
income to its shareholders. Therefore, no Federal income tax pro-
vision is required.
(d) Security transactions and investment income--Security trans-
actions are recorded on the dates the transactions are entered into
(the trade dates). Interest income is recognized on the accrual basis.
Discounts and market premiums are amortized into interest income.
Realized gains and losses on security transactions are determined
on the identified cost basis.
(e) Deferred organization and offering expenses--Deferred organiza-
tion expenses are amortized on a straight-line basis over a five-year
period. Direct expenses relating to the public offering of the Fund's
Common and Preferred Stock were charged to capital at the time of
issuance of the shares.
(f) Dividends and distributions--Dividends from net investment
income are declared and paid monthly. Distributions of capital gains
are recorded on the ex-dividend dates.
2. Investment Advisory Agreement and Transactions
with Affiliates:
The Fund has entered into an Investment Advisory Agreement with
Fund Asset Management, L.P. ("FAM"). The general partner of FAM is
Princeton Services, Inc. ("PSI"), an indirect wholly-owned subsidiary
of Merrill Lynch & Co., Inc. ("ML & Co."), which is the limited partner.
FAM is responsible for the management of the Fund's portfolio and
provides the necessary personnel, facilities, equipment and certain
other services necessary to the operations of the Fund. For such
services, the Fund pays a monthly fee at an annual rate of 0.50% of
the Fund's average weekly net assets. For the year ended October 31,
1995, FAM earned fees of $694,712, of which $34,961 was voluntarily
waived.
Accounting services are provided to the Fund by FAM at cost.
Certain officers and/or directors of the Fund are officers and/or
directors of FAM, PSI, Merrill Lynch, Pierce, Fenner & Smith Inc.
("MLPF&S"), and/or ML & Co.
3. Investments:
Purchases and sales of investments, excluding short-term securities,
for the year ended October 31, 1995 were $256,905,684 and
$246,827,975, respectively.
<PAGE>
Net realized and unrealized gains (losses) as of October 31, 1995 were
as follows:
Realized Unrealized
Losses Gains
Long-term investments $(6,802,585) $8,424,639
Financial futures contracts (1,599,275) --
----------- ----------
Total $(8,401,860) $8,424,639
=========== ==========
As of October 31, 1995, net unrealized appreciation for Federal income
tax purposes aggregated $8,424,639, of which $8,432,656 related to
appreciated securities and $8,017 related to depreciated securities.
The aggregate cost of investments at October 31, 1995 for Federal
income tax purposes was $133,117,293.
4. Capital Stock Transactions:
The Fund is authorized to issue 200,000,000 shares of capital stock,
including Preferred Stock, par value $.10 per share, all of which
were initially classified as Common Stock. The Board of Directors is
authorized, however, to reclassify any unissued shares of capital
stock without approval of holders of Common Stock.
Common Stock
For the year ended October 31, 1995, shares issued and outstanding
remained constant at 7,204,432. At October 31, 1995, total paid-in
capital amounted to $100,957,824.
Preferred Stock
Auction Market Preferred Stock ("AMPS") are shares of Preferred
Stock of the Fund that entitle their holders to receive cash dividends
at an annual rate that may vary for the successive dividend periods.
The yield in effect at October 31, 1995 was 3.70%.
A two-for-one stock split occurred on December 1, 1994. As a result,
as of October 31, 1995, there were 1,960 AMPS authorized, issued and
outstanding with a liquidation preference of $25,000 per share, plus
accumulated and unpaid dividends of $24,836.
The Fund pays commissions to certain broker-dealers at the end
of each auction at an annual rate ranging from 0.25% to 0.375%,
calculated on the proceeds of each auction. For the year ended
October 31, 1995, MLPF&S, an affiliate of FAM, earned $101,497 as
commissions.
<PAGE>
5. Capital Loss Carryforward:
At October 31, 1995, the Fund had a capital loss carryforward of
approximately $13,810,000, of which $6,831,000 expires in 2002
and $6,979,000 expires in 2003. This amount will be available to offset
like amounts of any future taxable gains.
6. Subsequent Event:
On November 13, 1995, the Fund's Board of Directors declared an
ordinary income dividend to Common Stock shareholders in the
amount of $0.062339 per share, payable on November 29, 1995 to
shareholders of record as of November 24, 1995.
<AUDIT-REPORT>
REPORT OF INDEPENDENT AUDITORS
To the Shareholders and Board of Directors,
MuniVest New York Insured Fund, Inc.
We have audited the accompanying statement of assets, liabilities and
capital of MuniVest New York Insured Fund, Inc., including the sched-
ule of investments, as of October 31, 1995, and the related statement
of operations for the year then ended, the statements of changes
in net assets for each of the two years in the period then ended and
financial highlights for each of the periods indicated therein. These
financial statements and financial highlights are the responsibility of
the Fund'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 as of
October 31, 1995 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 MuniVest New York Insured Fund, Inc. at October 31,
1995, the results of its operations for the year then ended, the
changes in its net assets for each of the two years in the period then
ended and financial highlights for each of the indicated periods, in
conformity with generally accepted accounting principles.
(Ernst & Young LLP)
Ernst & Young LLP
Princeton, New Jersey
November 30, 1995
</AUDIT-REPORT>
<PAGE>
IMPORTANT TAX INFORMATION (unaudited)
All of the net investment income distributions paid monthly by
MuniVest New York Insured Fund, Inc. during its taxable year ended
October 31, 1995 qualify as tax-exempt interest dividends for Federal
income tax purposes. Additionally, there were no capital gains
distributed by the Fund during the year.
Please retain this information for your records.
PER SHARE INFORMATION (unaudited)
<TABLE>
Per Share
Selected Quarterly
Financial Data*
<CAPTION>
Net Realized Unrealized Dividends/Distributions
Investment Gains Gains Net Investment Income Capital Gains
For the Period Income (Losses) (Losses) Common Preferred Common Preferred
<S> <C> <C> <C> <C> <C> <C> <C>
November 1, 1993 to January 31, 1994 $.26 $ .01 $ .20 $.22 $.04 $.04 $.01
February 1, 1994 to April 30, 1994 .26 .02 (2.27) .22 .04 -- --
May 1, 1994 to July 31, 1994 .26 (.01) .28 .21 .04 -- --
August 1, 1994 to October 31, 1994 .25 (.97) (.32) .21 .05 -- --
November 1, 1994 to January 31, 1995 .25 (1.56) 1.86 .19 .07 -- --
February 1, 1995 to April 30, 1995 .25 .20 .27 .19 .06 -- --
May 1, 1995 to July 31, 1995 .25 .11 .14 .18 .07 -- --
August 1, 1995 to October 31, 1995 .25 .09 .25 .19 .06 -- --
<CAPTION>
Net Asset Value Market Price**
For the Period High Low High Low Volume***
November 1, 1993 to January 31, 1994 $15.07 $14.37 $15.00 $13.50 531
February 1, 1994 to April 30, 1994 15.01 12.08 15.00 11.75 400
May 1, 1994 to July 31, 1994 13.61 12.40 13.00 11.625 527
August 1, 1994 to October 31, 1994 13.11 11.79 12.375 10.375 926
November 1, 1994 to January 31, 1995 12.08 10.89 11.125 9.125 1,369
February 1, 1995 to April 30, 1995 12.94 12.10 11.875 10.875 337
May 1, 1995 to July 31, 1995 13.44 12.54 12.25 11.00 619
August 1, 1995 to October 31, 1995 13.25 12.57 12.00 11.25 553
<PAGE>
<FN>
*Calculations are based upon shares of Common Stock outstanding
at the end of each quarter.
**As reported in the consolidated transaction reporting system.
***In thousands.
</TABLE>
